Selling price for Crispy Fried chicken

Variable Cost
Raw materials 8,475.00
Direct labor 200.00
₱8,675.00

Fixed Cost
Rent 192.00
Utilities Expense 274.00
Depreciation of Kitchen 21.77
Furniture
Depreciation of Kitchen
15.98
Equipment

₱503.75

Unit
= VC+FC
Cost
Units
produced/servings

8,675 + 503.75
100  

= 91.28
1-65% mark-up

= 149.24

Selling
= ₱150.00
price
C. Production Schedule

Papa G restaurant will operate 6 days a week. 26 working days will be the total business

operation in a month.

Activity Day Time Officer

Purchasing of Daily 6:00 am – 7:00 am Ground Staff

raw materials

Preparing and Monday to Saturday 8:00 am – 9:00 pm Ground Staff

cooking of raw 1:00 pm – 2:00 pm
materials

Selling the Monday to Saturday 10:00 am – 10:00 pm Ground Staff

product

Cleaning of Monday to Saturday 6:00 am – 7:00 am Ground Staff

working area 10:00 pm – 10:30 pm

Table 15
Day-off Schedule

Day Time Officers

Sunday All day All Officers
VI. MARKET ANALYSIS

A. Market Definition

Market is the group of people or individual who are going to buy the products being

offered by the business on a particular area in Barangay Borabod and Bagasbas boulevard, Daet,

Camarines Norte is the ideal location for the proponents to operate their business.

B. Profile of Customers

The residents and tourists of Bagasbas Boulevard and Barangay Borabod will be the

target customers of the business with age starting from 15 yrs old to 60 yrs old. The products will

surely be patronized by teenagers and adults because of its unique taste and satisfying

experience.

C. Competition

In every business there will surely be a competition, but the entrepreneurs or business

owners should not be afraid to continue their business venture, because competition will help

them to think of new business idea that will help them to standout the competition.

There are several direct competitors of the proposed business that offers similar products.

These are Kusina ni Angel, Leo’s Cuisine, John's Bar & Grill, Catherines, and Hoogpaan

restaurant located at Cory Aquino Blvd Bagasbas, Daet, 4600 Camarines Norte.

D. Demand

The conducted survey on the target market will be the reference for the historical demand of

Fried chicken specifically the locals of Bagasbas and Borabod, Daet, Camarines Norte. Fifty

nine(59%) of the total of the total number of population ages 15-60which is equivalent to one

hundred (100) respondents were given questionnaires. This was computed using Slovin’s
formula. The results show that in the two barangays, ninety seven percent (97%) or 97

respondents and three (3%) or three respondents said that they do not buy the product.

Table 2
Total Number of Population ages 15 to 60 in Borabod and Bagasbas, Daet, Camarines Norte

Target Market 2018 2019 2020

Borabod 4,444 4,534 4,627
Bagasbas 5,759 5,877 5,996
Total 10,203 10,411 10,623
Source: National Nutritional Council (NNC.gov.ph)

Table 2 shows the total number of population ages 15-60 of Borabod and Bagasbas, Daet,

Camarines Norte from 2018 to 2020. The population ages 15-60 was derived by getting its

percentage to the total population which is 59 percent.

Table 3
Historical Demand for Chicken products
 Total Population Ages 15-59 97% of the Total Total Demand
Year
Years Old Population Annually

2018 10,203 9,897 1,425,168

2019 10,411 10,098 1,454,112
2020 10,623 10,304 1,483,776
Source: Actual Survey

To identify historical demand of the total population ages 15 to 60 of Borabod and

Bagasbas, Daet, Camarines Norte for Fried chicken from 2018 to 2020. Based on the table

above, 97 percent of the population buys and eat Fried chicken. They have an average

consumption of 144 pieces per person annually. To get the annual demand, multiply the average

consumption per person annually by 97 percent of the total population ages 15-60 years old.

Table 5
Projected Demand for Chicken products

Total Population Ages 15-60 97% of the Total Total Demand

Year
Years Old Population Annually

2021 10,729 10,407 1,498,608

2022 10,836 10,510 1,513,440
2023 10,944 10,616 1,528,704
Source: Actual Survey

To identify the projected demand for Fried chicken in Borabod and Bagasbas, Daet,

Camarines Norte. Based from the survey conducted, 97 percent of the total population ages 15 to

60 buy chicken products. They have an average consumption of 144 pieces of chicken products

annually. To get the projected demand, multiply the average consumption per person by 97

percent of the total population ages 15 to 60 years old.

E.Supply

Table 7 below shows the supply analysis for Fried chicken of the existing direct

competitor near Borabod and Bagasbas, Daet, Camarines Norte. The total supply was computed

by multiplying the number of nachos sold per day by 7 days and 4 weeks and then multiplies by

12 months.

Table 7
Supply Analysis for Chicken products

Pieces Sold Total Supply

Name of Competitors
Monthly Annually

Kusina ni Angel 3,500 42,000

Leo’s Cuisine 4,380 52,560
John's Bar & Grill 3,850 46,200
Catherines 6,000 72,000
Hoogpaan 6,500 78,000

Total 24,230 290,760

Source: Personal Interview

Annual increase answer

Kusina ni Angel 5%

Leo’s Cuisine 8%

John's Bar & Grill 5%

Catherines 10%

Hoogpaan 10%
Table 9
Projected Supply for Chicken products
 
Pieces sold monthly Total Supply Annually
Year
2021 26,168 314,016

2022 28,261 339,132

2022 30.522 366,263

Source: Personal Interview

To identify the projected supply for Fried chicken in Borabod and Bagasbas, Daet,

Camarines Norte. Based from the survey conducted, the average increase of fried chicken sold

annually is 8 percent. The average increase was acquired by adding all the percentage increases

of the competitors and then dividing it by the total number of competitors. The total supply

annually was computed by multiplying the total pieces sold monthly by 12 months.

Table 11
Demand and Supply Gap for Chicken products

Year Total Demand Total Supply Gap Market Share (%)

2022 1,498,608 314,016 2.63

1,184,592
2023 1,513,440 339,132 3.18
1,174,308
2024 1,528,704 366,263 3.90
1,162,441
Source: Actual Survey

Table 11 shows the demand and supply gap for tacos and its market share. The gap is

computed by subtracting the total supply from the total demand. The market share is computed

by dividing the product capacity for tacos to the gap and multiplies it by 100 percent. It can be

noted that the average increase in projected product capacity is 20 percent in volume and 20

percent in price annually. For 2022 to 2024, the market share gradually increases.
 ANNEX F

SUMMARY OF SURVEY RESULTS

Official Tally of Survey Report

The total sample size of population ages 15-60 of Borabod, Daet, Camarines Norte is equivalent

to fifty (50)

1. Do you buy chicken products?

Yes - 48(96%) No – 2 (4%)

2. What type of chicken meal do you like most?

Crispy Fried chicken- 15 (30%) Spicy Fried chicken- 11 (22%)

Buttered chicken- 19 (38%) Cordon Bleu – 5 (10%)

3. On the average, how many piece/s chicken do you usually consume per month?

Chicken products – 12 pieces (612 pieces which is the total monthly consumption divided

by 50 which is the number of respondents who buy/eat Chicken Products) then multiply it

by 12 to get the annual consumption.

4. If we put a restaurant would you avail our products?

Yes – 50(100%) No – 0(0%)

Official Tally of Survey Report

The total sample size of population ages 15-60 of Bagasbas, Daet, Camarines Norte is equivalent

to fifty (50)

1. Do you buy chicken products?

Yes - 49(98%) No – 1 (1%)

2. What type of chicken meal do you like most?

Crispy Fried chicken- 14 (28%) Spicy Fried chicken- 19 (38%)

Buttered chicken- 12 (24%) Cordon Bleu – 5 (10%)

3. On the average, how many piece/s chicken do you usually consume per month?

Fried Chicken – 13 pieces (634 pieces which is the total monthly consumption divided by

50 which is the number of respondents who buy/eat Fried Chicken) then multiply it by 12

to get the annual consumption.

4. If we put a restaurant would you avail our products?

Yes – 50(100%) No – 0(0%)

 ANNEX I

FREIGHT IN

Note: Freight in will remain constant during the first 3 years.

  Monthly 2018 2019 2020

Freight-in ₱1,440 ₱17,280.00 ₱17,280.00 ₱17,280.00

Note: Minimum fare= ₱ 30.00

Fare for 1 person back and forth= ₱ 60.00

No. of marketing days = 6 days in every week (4)

₱ 60.00 x 1 x 6 x 4x12 = ₱ 17,280.00 annually

y
u
B
r
l
e
S
VII. MARKETING PLAN

A. Sales Strategy

Having a great sales strategy is crucial for a business to become successful. Cory Aquino

Blvd Bagasbas, Daet, 4600 Camarines Norte is the selected location by the proponents and

Business operation will start at 10:00 am to 10:00 pm Monday to Saturday. We will also ensure

the quality of products that we are going to serve to the customers has a delicious taste that will

surely keep them coming back. We are going to give them 50% discount to all of our products as

opening promo.

B. Distribution Channel

The chicken meal products that we are going to served for the customers will be direct

sale upon order.

C. Advertising and Promotion

Direct Sale

Figure 3
Distribution Channel

The proponents will utilize social media to promote the products since most of the target

customers has access with different social media platforms by doing that we can easily get

their attention and the opportunity for getting new customers is much higher.
D. Plant Location

E. Legend:

Restaurant location

Figure 6

Plant Location
IX. FINANCIAL PLAN

A. Financial Assumptions

1. Production Data

a) There is a 3% estimated price increase on raw materials and 20%

estimated increase in quantity annually.

b) The freight expense will remain constant during the first 3 years of

business operation.

2. Sales Data

a) The sales will be cash only

b) The price of the Chicken meal products ______ and will be constant for

the next 3 years.

3. Operating Expense

a) For the next 3 years the rent expense will remain constant.

b) Compensation allowance of all officers will remain constant for the next 3

years.

c) Office supplies expense will increase in price by 5% annually.

d) Sanitation expense will increase in price by 3% annually.

 ANNEX P

DIRECT LABOR

Note: Direct Labor will be constant in three years

Position Daily Monthly 2022 2023 2024

Manager/
Marketing _ _ _ _ _
Officer
Production
Officer/Finance _ _ _ _ _
Officer

Ground staff 1 ₱200.00 ₱4,000.00 ₱48,000.00 ₱48,000.00 ₱48,000.00

Ground staff 2 200.00 4,000.00 48,000.00 48,000.00 48,000.00

₱400.0
TOTAL ₱8,000.00 ₱96,000.00 ₱96,000.00 ₱96,000.00
0

ANNEX K

RENT EXPENSE

Note: Rent expense will remain constant during the first three years

Monthly 2021 2022 2023

Rent ₱ 5,000.00 ₱ 60,000.00 ₱ 60,000.00 ₱ 60,000.00

 ANNEX U

UTILITIES EXPENSE

Note: 20% increase in volume and 1% increase in price annually of LPG Tank.

Particular Quantity Total Cost 1st 1 month Monthly 2018

Electric bill 600(kW) ₱ 5,259 ₱ 5,259 ₱ 5,259 ₱ 63,108

Water bill 50Cubic ₱ 1,855 ₱ 1,855 ₱ 1,855 ₱ 22,260

TOTAL     ₱7,114 ₱85,368.00

ANNEX R

DEPRECIATION OF FURNITURE AND FIXTURE

Note: Depreciation is computed by dividing the total cost by its useful life in years.

Estimated
Unit Salvage
Particulars Quantity Total Cost Useful Depreciation
Cost Value
Life
Dining
22 ₱250.00 ₱5,500.00 5 years ₱550.00 ₱990.00
Chair
Electric
1,250.00 500.00
fan 4 5,000.00 4 years 1,125.00
2,200.0
Dining 11 22,000.00 5 years 3,960.00
2,000.00 0
Table

Light 4 2,400.00 3 years 720.00

240.00
Fixture
600.00

       
₱34,900.0
TOTAL ₱6,795.00
0
 ANNEX S

DEPRECIATION OF KITCHEN EQUIPMENT

Note: Using straight line method

Estimated Salvage
Particulars Quantity Total Cost Depreciation
Useful Life Value

Refrigerator/Freez
1 40,000.00 10 4,000.00 3,600.00
er

Shelving 1 5 400.00 5 540.00 972.00

LPG Gas Tank 1 1,650.00 5 165.00 297.00

Deep Fryer
1 4,000.00 5 400.00 720.00
Gas stove 1 650.00 5 65.00 117.00

₱51,700.0
TOTAL       ₱4,986.00
0

Chicken cordon bleu

Crispy fried chicken

*1kg chicken - 180.00

*½kg flour - 15.00

*100g ground pepper - 10.00

* 1 sachet fish sauce (250ml) - 15.00

* ¼kg salt - 10.00

* 500ml cooking oil - 140.00

* 4 eggs (M) - 28.00

*3pcs onion (S) -15.00

*5gloves garlic - 20.00

* 1 sachet Bay Leaves - 20.00

* 1pack cheese - 55.00

* 1pack sliced ham - 75.00

* 1kg bread crumps - 55.00

ANNEX H

RAW MATERIALS FOR CRISPY FRIED CHICKEN

Note: 3% increase in price and 20% increase in production annually

Raw Quantit Unit Daily Monthly Annual Cost

Unit
Materials y Cost Cost Cost (2021)
Chicken 40.00 kl ₱180.00 ₱7,200.00 ₱187,000.00 ₱2,246,000.00

flour 5.00 kl 30.00 150.00 3, 900.00 46,800.00

ground
200 g 10.00 50.00 1,300.00 15,600.00
pepper
fish sauce 20.00 sachet 15.00 300.00 7,800.00 93,600.00
 Cooking oil 4.00 L 140.00 560.00 14,560.00 174,720.00

Bay Leaves 2.00 sachet 10.00 20.00 520.00 6,240.00

garlic 0.5 kl 95.00 95.00 2,470.00 29,640.40

onion 0.5 kl 80.00 80.00 2,080.00 24,960.00

salt 0.3 kl 38.00 20.00 520.00 6,240.00

₱598.0 ₱8,475.0 ₱218,070.0
TOTAL     ₱2,643,800.00
0 0 0
Source: Daet Public Market

Buttered chicken

Crispy fried chicken

*1kg chicken - 180.00

*½kg flour - 15.00

*100g ground pepper - 10.00

* 1 sachet fish sauce (250ml) - 15.00

* ¼kg salt - 10.00

* 500ml cooking oil - 140.00

* 4 eggs (M) - 28.00

*3pcs onion (S) -15.00

*5gloves garlic - 20.00

* 1 sachet Bay Leaves - 20.00

*1 pc butter - 45.00

Raw Unit Daily Monthly Annual Cost

Quantity Unit
Materials Cost Cost Cost (2021)
Chicken 40.00 kl ₱180.00 ₱7,200.00 ₱187,000.00 ₱2,246,000.00

flour 5.00 kl 30.00 150.00 3, 900.00 46,800.00

Ground
200 g 10.00 50.00 1,300.00 15,600.00
pepper
Fish sauce 20.00 sachet 15.00 300.00 7,800.00 93,600.00

Cooking oil 4.00 L 140.00 560.00 14,560.00 174,720.00

Bay Leaves 2.00 sachet 10.00 20.00 520.00 6,240.00

 Garlic 0.5 kl 95.00 95.00 2,470.00 29,640.40

Onion 0.5 kl 80.00 80.00 2,080.00 24,960.00

Salt 0.3 kl 38.00 20.00 520.00 6,240.00

Cayenne
   
powder ₱598.0 ₱218,070.0
₱8,475.00 ₱2,643,800.00
TOTAL 0 0
RAW MATERIALS FOR SPICY FRIED CHICKEN

Note: 3% increase in price and 20% increase in production annually

 Raw Unit Daily Monthly Annual Cost
Quantity Unit
Materials Cost Cost Cost (2021)
Chicken 40.00 kl ₱180.00 ₱7,200.00 ₱187,000.00 ₱2,246,000.00

flour 5.00 kl 30.00 150.00 3, 900.00 46,800.00

Ground
200 g 10.00 50.00 1,300.00 15,600.00
pepper
Fish sauce 20.00 sachet 15.00 300.00 7,800.00 93,600.00

Cooking oil 4.00 L 140.00 560.00 14,560.00 174,720.00

Bay Leaves 2.00 sachet 10.00 20.00 520.00 6,240.00

Garlic 0.5 kl 95.00 95.00 2,470.00 29,640.40

Onion 0.5 kl 80.00 80.00 2,080.00 24,960.00

Salt 0.3 kl 38.00 20.00 520.00 6,240.00

Butter    
₱598.0 ₱218,070.0
TOTAL ₱8,475.00 ₱2,643,800.00
0 0
RAW MATERIALS FOR BUTTERED CHICKEN

Note: 3% increase in price and 20% increase in production annually

Crispy fried chicken

*1kg chicken - 180.00

*½kg flour - 15.00

*100g ground pepper - 10.00

* 1 sachet fish sauce (250ml) - 15.00

* ¼kg salt - 10.00

* 500ml cooking oil - 140.00

* 4 eggs (M) - 28.00

*3pcs onion (S) -15.00

*5gloves garlic - 20.00

* 1 sachet Bay Leaves - 20.00

Spicy fried chicken

*1kg chicken - 180.00

*½kg flour - 15.00

*100g ground pepper - 10.00

* ¼kg salt - 10.00

* 500ml cooking oil - 140.00

*3pcs onion (S) -15.00

*5gloves garlic - 20.00

* 1 sachet Bay Leaves - 20.00

*1 teaspoon cayenne powder

 ANNEX AC

SALES

Note: 20% increase in volume 20 % increase in selling Price

Year Quantity Selling Price Sales

2022 ₱31,200.00 ₱150.00 ₱4,680,000.00

2023 37,440.00 180.00 6,739,200.00

2024 ₱44,928.00 ₱216.00 ₱9,704,448.00

Note:

Sales = Quantity x Selling price

VIII. PRODUCTION PLAN

A. Production Process

 Spicy Fried Chicken

1. Preparation of all needed ingredients and materials (2 minutes)

2. Put salt, bay leaves, pepper, garlic, in a bowl then mix it with the chicken (3 minutes)

3. Marinate the chicken (2-3 hours)

4. On a separate bowl mix the flour, salt, pepper, and cayenne powder (2minutes)

5. Add water and mix it thoroughly (5minutes)

6. Put the marinated chicken on the flour (2minutes)

7. Deep fry the chicken on the hot oil (12-15 minutes)

8. Finished product
 Add water and mix it
thoroughly (5minutes)

Put salt, bay leaves, pepper,

garlic, in a bowl then mix it
with the chicken (3 minutes)

Put the marinated chicken

on the flour (2minutes)

Marinate the chicken

(2-3 hours)

Deep fry the chicken on

the hot oil (12-15 minutes)
 Crispy Fried Chicken

1. Preparation of all needed ingredients and materials (2 minutes)

2. Put salt, bay leaves, pepper, garlic, in a bowl then mix it with the chicken (3 minutes)

3. Marinate the chicken (2-3 hours)

4. On a separate bowl mix the flour, salt, and pepper(2minutes)

5. Add water and mix it thoroughly (5minutes)

6. Put the marinated chicken on the flour (2minutes)

7. Deep fry the chicken on the hot oil (12-15 minutes)

8. Finished product.
1. Preparation of all needed ingredients and materials (2 minutes)

2. Put salt, bay leaves, pepper, garlic, in a bowl then mix it with the chicken (3 minutes)

3. Marinate the chicken (2-3 hours)

4. On a separate bowl mix the flour, salt, and pepper(2minutes)

5. Add water and mix it thoroughly (5minutes)

6. Put the marinated chicken on the flour (2minutes)

7. Deep fry the chicken on the hot oil (12-15 minutes)

8. Melt butter in a pan ( 2 minutes)

9. Add the fried chicken and mix it (3 minutes)

. Finished product.
 Add the fried
chicken and mix it
well

Ready to serve!

Melt butter in a
pan
B. Capital Requirement
a. Property, Plant and Equipment
Kitchen Equipment ₱51,700.00
Furniture and Fixtures 34,900.00 ₱86,800.00
b. Working Capital
Raw Materials 20,111.24
Freight in 320.00
Direct Labor 7,000.00
Packaging and Labeling 740.00
Compensation Allowance 10,000.00
Rent Expense 200.00
Transportation Expense 53.33
Gasoline expense 500.00
Utilities Expense 755.00
Sanitary Expense 2,415.00
Kitchen Supplies 3,215.00
Office Supplies 2,429.00 47,738.57
c. Pre-operational Expenses
Permits and Licenses 4,400.00
Advertising and Promotion 65.11 4,465.11
d. Contingencies (5% of a, b, c)
a. Property, Plant and Equipment 16,340.00
b. Working Capital 2,386.93
c. Pre-operational Expenses 223.26 18,950.18
397,953.86

TOTAL PROJECT COST ₱397,953.86

Gennevie L. Elep ₱198,976.93

Alma H. Zaratar ₱198,976.93
 ANNEX M

OFFICE SUPPLY EXPENSE

Note: Price of supplies will increase by 5% annually.

Note:Official receipt is 50 pieces per booklet

Particulars Quantity Unit Cost 2021

Record book 5 ₱40.00 ₱200.00

Yellow paper 5 25.00 48.00

Journal 5 35.00 175.00

Ledger 1 30.00 30.00

Folder 20 5.00 100.00

BIR Official Receipts 25 72.00 1,800.00

Ballpen 10 6.00 60.00

Calculator 5 200.00 1,000.00

Scissors 5 20.00 100.00

TOTAL     ₱3,513.00

Source: SM HYPERMARKET
 ANNEX N

SANITARY EXPENSE

Note: Price of sanitary supplies will increase by 3% annually.

Particulars Quantity Unit Cost 2021

Broom stick 3 ₱30.00 ₱90.00

Soft broom 3 80.00 240.00

Dust pan 3 40.00 120.00

Trash can 3 100.00 300.00

Dish washing liquid 100 20.00 2,000.00

Sponge 50 20.00 1,000.00

Hand towel 10 25.00 250.00

Dish Towel 10 20.00 200.00

Fire extinguisher 2 1,000.00 2,000.00

TOTAL     ₱6,200.00

Source: Daet Public Market

 ANNEX O

KITCHEN SUPPLIES EXPENSE

Note: Price of kitchen supplies will increase by 5% annually.

Particular Quantity Unit Unit Cost 2021

Mixing bowl 8 set ₱650.00 ₱5,200.00

Pan 4 piece 350.00 1,400.00

Plates 50 piece 150.00 7,500.00

Food canister/storage 10 piece 100.00 1,000.00

Measuring spoon 2 set 90.00 180.00

Food tong 6 piece 50.00 300.00

Chopping board 4 piece 200.00 800.00

Knives 6 piece 180.00 1,080.00

Kitchen scale 2 unit 350.00 700.00

Pot holder 8 piece 15.00 120.00

Apron 6 piece 100.00 600.00

Spoon/fork 5 set 90.00 450.00

Hairnet 10 piece 20.00 200.00

Plastic gloves 2 box 25.00 50.00

TOTAL       ₱19.580.00
Source:SM HYPER Market
 PACKAGING AND LABELING

Note: Price of packaging and labeling is constant during the first 3 years of operation and volume

is estimated to increase by 20% annually.

Unit Monthly
Particular Quantity Unit Total Cost 2018
Cost Cost

Styro lunch box 50 piece 9.00 450.00 11,700.00 140,400.00

Plastic wrapper 2 pack 2.00 ₱ 24.00 ₱480.00 ₱5,760.00
Sanitary paper 12,000.00
4 pack 12.50 50.00 1,000.00
bag
₱13,180.0 ₱158,160.0
TOTAL       ₱524.00
0 0
Source:SM HYPER Market