CAN THO UNIVERSITY

COLLEGE OF ECONOMICS

PROJECT APPRAISAL

ASSIGNMENT

Instructor: Students:
Ong Quoc Cuong Tran Thi Minh Anh B1810506
Le Hoang Bao Ngoc B1810707
Truong Minh Ngoc B1810713
Vo Trieu Vy B1810773
Diep Tran Hoang Quyen B1810733
This page is intentionally left blank.

2
 CONTENTS
CHAPTER I: INTRODUCTION .................................................................................................... 5
1.1. Purpose.............................................................................................................................. 5
1.2. Objectives ......................................................................................................................... 5
1.3. Legal basis ........................................................................................................................ 5
1.4. Real estate ......................................................................................................................... 6
CHAPTER II: MARKET ANALYSIS OF THE PROJECT ........................................................... 6
2.1. Products and services: ....................................................................................................... 6
2.1.1. Product overview: ...................................................................................................... 6
2.1.2. Differences lead to success: ....................................................................................... 6
2.1.3. Possible advantages of goods and services................................................................ 8
2.1.4. Goods and services .................................................................................................... 8
2.2. Market ............................................................................................................................. 14
2.2.1. Market segmentation ............................................................................................... 14
2.2.2. Target market selection ........................................................................................... 14
2.2.3. Competitors: ............................................................................................................ 18
2.2.4. Market solutions: ..................................................................................................... 20
CHAPTER III: TECHNICAL ANALYSIS OF THE PROJECT .................................................. 21
3.1. Sources of supplies: ............................................................................................................ 21
3.2. Technology and equipment:............................................................................................ 22
3.3. Project structure: ............................................................................................................. 28
3.4. Depreciation: ................................................................................................................... 29
3.5. Consumption of raw materials, fuel, and other input factors .......................................... 31
CHAPTER IV: ORGANIZATION AND HUMAN MANAGEMENT OF THE PROJECT ....... 34
4.1. Labor supply: .................................................................................................................. 34
4.2. Organization structure and labor composition: ............................................................... 34
4.2.1. Organizational form:................................................................................................ 34
4.2.2. Human resource policies: ........................................................................................ 36
CHAPTER V: FINANCIAL ANALYSIS OF THE PROJECT .................................................... 37
5.1. Table of revenue estimation ............................................................................................ 37
5.2. Cost estimation: .............................................................................................................. 38
5.3. General financial information of the project: ................................................................. 40
5.4. Basic criteria for financial analysis ................................................................................. 42
5.4.1. Discount rate ............................................................................................................ 42
5.4.2. Payback period ........................................................................................................ 43

3
 5.4.3. Net Present Value .................................................................................................... 43
5.4.4. Benefit-Cost Ratio ................................................................................................... 43
5.4.5. Break-even point...................................................................................................... 44
5.4.6. Internal rate of return: .............................................................................................. 45
CHAPTER VI: SOCIAL ECONOMIC BENEFITS ..................................................................... 46
6.1 Economics benefits: ............................................................................................................. 46
6.2 Social benefits: ..................................................................................................................... 46

Participating percentage:

1. Tran Thi Minh Anh B1810506 100%

2. Le Hoang Bao Ngoc B1810707 100%

3. Truong Minh Ngoc B1810713 100%

4. Vo Trieu Vy B1810773 100%

5. Diep Tran Hoang Quyen B1010733 80%

4
CHAPTER I: INTRODUCTION

1.1. Purpose
Due to the development of the country, earnings are significantly rising. It is undeniable
that this increase in income plays a prominent role in the rationales of pressure in life. Those
who face too many problems and obstacles find difficulty choosing between sharing or being
silent. Moreover, the question for them to confuse is that who can listen to them. Following
these questions, our group comes up with the idea of a small-scale entertainment model meeting
both needs: Entertainment and Confession - BEERS AND EARS.
1.2. Objectives
General objective: Create a typical pub space for entertainment, combining to build a
private space to serve the sharing model.
Short-term objectives:
● Within the first month of implementation, make sure that everyone knows about the
pub through advertising and branding on social networking sites as well as review
channels.
● Complete all of the necessary paperwork in 3 months from project implementation.
● After 6 months of implementation, the pub ensure a stable number of customers and
loyal customers often use the services.
Long-term:
• After 3 years of implementation, the pub has built its own brand in the
entertainment service industry in Can Tho.
• Innovate about the space consistent with that time in order to reach more potential
new customers and still keep the number of old customers.
1.3. Legal basis
- Pursuant to the 2014 Enterprise Law.
- Pursuant to Decree 43/2010/ND-CP on business registration.
- Pursuant to Decree 102/2010/ND-CP guiding the Law on Enterprises.
- Pursuant to Circular 14/2010/TT-BKH guiding documents, order and procedures for
enterprise registration in accordance with Decree 43/2010/ND-CP on enterprise
registration.
- Pursuant to Decree 05/2013/ND-CP amending regulations on administrative procedures
of Decree 43/2010/ND-CP on enterprise registration.
- Pursuant to Circular 01/2013/TT-BKHDT guiding enterprise registration.
- Pursuant to the 2005 Commercial Law.
- Pursuant to the 2012 Labor Law.
- Pursuant to Ordinance 12/2003/PL UBTVQH11 on food safety and hygiene Products.
- Pursuant to the Regulation 30/2012/TT-BYT on food safety conditions for food service
establishments, street food traders.
- Pursuant to Circular 15/2012/TT-BYT on general conditions to ensure food safety for
food manufacturers and traders.
- The special consumption tax schedule guides the government on alcohol use, decrees
on cultural business activities and public services:
- Alcohol
+ Wine of 20 degrees or more : Taxable 65%

5
 + Alcohol below 20 degrees: Taxable 35%
- Beer : Taxable 65%
- Pursuant to Circular 45/2018/TT-BTC on instructions of management, atrophy and
depreciation of fixed assets.
1.4. Real estate
- Regarding construction and repair: there must be clear drawings and designs to work
with wards and authorities before construction.
- Strictly comply with the regulations on food safety and hygiene (all people in the
restaurant from staff to owners must participate in the course and take the test for
certification to participate in the training course on food hygiene and safety).
- Registered business is a restaurant, allowed to sell drinks with alcohol content below
15%, licensed to trade in alcohol.
CHAPTER II: MARKET ANALYSIS OF THE PROJECT
2.1. Products and services:
2.1.1. Product overview:
As our generation is in the current international integration period, the young Vietnamese
have witnessed a huge wave of new international entertainment imported into Vietnam,
including pub format. Pub is an entertainment service with a relatively short period of
participation in Vietnam, but has succeeded in creating a large number of loyal customers
mainly in the 18-35 years old period in main provinces and cities. As standard of living has
increased dramatically, young people have an increasing demand for entertainment activities.
Therefore, our pub "BEERS & EARS'' is created to create a playground - where young people
can have a place to have fun, meet friends, consume alcohol drinks such as cocktails or beer –
that some science researchers concluded had a positive impact on them in comforting and
relaxing the mind.
In addition, the stressful pace of life in urban areas has caused a considerable part of young
people to have psychological and communication problems. Our team has realized this segment
of consumer has a great demand for a cozy, quiet space to "self-treat" or simply a place to find
a friend to share. As a result, our pub made a decision to incorporate a new category of business:
soul-mate brokerage service.
The current form of pub business is quite not rare in major cities and provinces, it can even
be said to be quite familiar to many people, but in fact, there are few models of pubs that
seriously undertake to build a place which is completely healthy, no illegal activities, and at the
same time really cares about the psychological needs of the customer. Our pub is built with the
aim of fully satisfying the above criteria, committing to customers completely new and
distinguished service packages from other pubs operating in the market. We believe that our
customers will have a new and special experience when coming to “BEERS & EARS”.

2.1.2. Differences lead to success:

After surveying the demand for using pub services of Can Tho city residents through a
basic questionnaire board, together with finding out about products and services provided by
other pubs that now operating and doing business in Can Tho city, we have set certain standards
for our business form, as well add some highlights characteristics compared to other emerged
or direct competitors:

6
 Regarding the business model, our team conducts the business that combines the pub
services as long as the "soul-mate" brokerage service, simultaneously focusing on satisfying
both the entertainment and psychological needs of customers. Considering the whole of the Can
Tho market, we are currently the only hub that combines these two types of services. Moreover,
it is undeniable that pubs contain negative influences due to the lack of selectivity in foreign
culture, customs or the lack of control and security of these places that can harm the safety of
youth and students. Therefore, our “BEER & EARS” deal with this difficult situation by
advocating towards a safe pub model:
• Only allow people aged 18 and over to enter the pub (through ID check, student ID,
driver's license,…
• It is strictly forbidden to use and store drugs and stimulants.
• It is not allowed to bring weapons, sharp objects, explosives ... into the pub.
• Always have security guards to ensure the security in the pub.
• Pets are not allowed into the pub because of public hygiene.
In order to perform soul-mate brokerage service, as soon as a customer enters, our
employee will instruct him/her wearing a bracelet which classifies the relationship status: non-
available, available, ready-to-listen, ready-to-share. Depending on the color and content of the
bracelet, we match customers with similar needs, bringing the public relationship closer.
Regarding to the space of the restaurant, in the spirit of helping customers relax and
reduce stress, our pub uses a nostalgic style interior, the space is mainly decorated with cozy
colors, which is brown, orange, white with yellow light, suitable for young people who want to
enjoy their privacy, those who go with their family, and even to discuss work. The music here
aims to be light music, interwoven with some suitably exciting music. The bar space consists
of 2 floors serving 2 different groups of customers. The first floor is a common space for guests
who go with friends and relatives with high tables and chairs, 2 sets of sofas. The second floor
is an area with a quiet space with separate tables and chairs for guests who go alone or want to
experience some small services provided by our pub.
Regarding products, “BEERS & EARS” focuses on drinks with low alcohol content and
light cocktails. In addition, our team also considers serving some French or Italian pastries on
specific days of the week in addition to available snacks such as fruits, peanuts, chicken floss,...
In addition, our pub also distributes a number of toy sets such as beer pong, drawing
wooden cards, famous board game sets such as Are you a werewolf, Explosive cats,...for group
guests on the 1st floor for fun and gentle entertainment. Some other accompanying services
such as Henna drawing, Tarot cartomancy,...are served on the 2nd floor - where is a quieter and
more chilling space.
Regarding service quality, service attitude is always the top priority for our pub.
Employees are required to always maintain a polite, cheerful, enthusiastic attitude to answer all
questions, and at the same time, are strictly prohibited from sexually harassing our beloved
customers. At the bar, we place a comment box and contact method of our pub’s manager to
listen to all comments, thereby further improving service quality. Moreover, BEERS & EARS
commits to reasonable prices for each type of service and offers a number of service packages,
membership cards, and attractive discounts.

7
 2.1.3. Possible advantages of goods and services
Goods:
• Alcoholic drinks can help protect us from the risk of heart diseases, namely angina, heart
attack, heart failure, or ischaemic stroke.
• Alcoholic beverages have plenty of nutritions, namely B vitamins, minerals, calcium, etc.
• Alcoholic beverages reduce stress and pressure relating to work or school.
Services:
• Deep conversation helps customers reduce stress, gives us a new perspective and shares
useful information. As a result, customers will be unstressed and have more opportunities
to make new friends.
• Tarot card reading will help give customers an ideal way of picking the areas needed for
improvement and working on them to seek perfection.
• Henna tattoos which are counterfeit tattoos, bring to customers amazing experiences of
having a temporary tattoo on skin without pain and healing process.
• Live band music will be performed biweekly. Every stress and pressure of customers will
be released through the relaxing melodies and meaningful lyrics.
2.1.4. Goods and services
Here is the price list of goods and services that we are going to offer to customers. These
are alcoholic beverages, snacks and some additional services belonging to our pub.

Selling
Category Name price Unit Picture
(VND)

Non-alcoholic Heineken 0.0 35.000 bottle

drinks 330ml

Budweiser 0.0 68.000 bottle

330ml

Athletic Brewing 60.000 can

330ml

8
Ciders Strongbow 35.000 bottle
330ml

Rekorderlig 80.000 bottle

500ml

Cornish Orchards 130.000 bottle

500ml

Craft beers East West 60.000 bottle

500ml

Thom Brewery 75.000 bottle

330ml

Rooster Beer 50.000 can

330ml

Tê tê White Ale 100.000 bottle

330ml

Belgo 75.000 bottle

330ml

9
Cocktails Singapore Sling 78.000 glass

Gin and Tonic 55.000 glass

Old Fashioned 60.000 glass

Cosmopolitan 189.000 glass

Martini 87.000 glass

Blood and Sand 68.000 glass

Sweet Poison 115.000 glass

10
 Long Island 199.000 glass

Wines Hennessy VSOP 1.305.000 bottle

40%

Rémy Club 40% 1.620.000 bottle

Table 1.4a: Price list of alcoholic beverages

Name Price/unit (VND) Unit Picture

Fried potato 69.000 dish

Roasted salted 25.000 dish

peanuts

11
Sausages 49.000 dish

Fried onion rings 39.000 dish

Grilled cuttlefish 69.000 dish

Fruit dish Size M: 39.000 dish

Size L: 69.000

Sunflower seed 39.000 dish

Grilled duck 179.000 dish

breast (must-try)

Table 1.4b: Price list of snacks

12
 Name Price/unit Picture

Tarot card reading 300.000 vnd/hour

Henna tattoo 30.000 - 200.000 vnd/pattern

Live music band Additional fee: 20.000

(biweekly) vnd/person

Deep conversations Additional fee: 20.000

vnd/person

Table 1.4c: Price list of services

In addition, BEERS & EARS also fixed a 10% discount on the total bill on every
Thursday evening, 40% discount on first drink every Monday with a student card, "Free first
drink for lady" on March 8, October 20,...

13
2.2. Market
2.2.1. Market segmentation
• Geographic segmentation:
+ Focus on Can Tho city, especially Ninh Kieu district.
+ Develop and scale up in places that are near residential areas, universities and
colleges, companies which are convenient for those people to come over.
• Demographic segmentation: ages from 18 to 35.
• Income segmentation: average to above average.
• Occupation segmentation: colleges and universities students, workers, officers,
businessmen,...

2.2.2. Target market selection

• Target customer:
+ Young people ages from 18 - 22 living in Ninh Kieu district with average income
+ Employees age from 23 - 35 with stable income
• Target customer highlight:
+ Young population is a densely and diversified sector
+ Innovator , highly integrated by Western culture
+ Stable income
+ Active and busy life, the tendency of night culture or “night owls” is more
increase
+ High pressure of work, study and modern life so that they need a place to release
their stress
➔ Willing to pay
2.2.2.1. Potential customer:
+ Tourists especially are foreign travellers
+ Foreigners living and working in Can Tho City
➔ They are familiar with this kind of service model
2.2.2.2. Market demand
Identify current demand and forecast future demand:
● Observation from actual questionnaire (110 observations):
- Frequency of people going to pub service in a month

● Based on the secondary data:

14
- Age: According to Ninh Kieu District People’s Committee, the population from
18-35 years old in Ninh Kieu District, including 13 wards namely: Cai Khe, An
Hoa, Thoi Binh, An Nghiep, An Cu, An Hoi, Tan An, An Lac, An Phu, Xuan
Khanh, Hung Loi, An Khanh, An Binh, are demonstrated in the table below.

15
 Cai Thoi An An Xuan Hung An Percentag
Age An Hoa An Nghiep Tan An An Lac An Phu An Binh Total
Khe Binh Cu Hoi Khanh Loi Khanh e
18 342 802 157 148 189 92 49 134 277 2.185 1.747 1.954 1.109 9.184 8
19 361 1.369 218 178 241 74 60 97 347 2.802 2.671 3.151 1.411 12.980 11
20 303 1.449 163 133 161 45 43 97 251 2.272 2.229 2.836 984 10.966 9
21 288 1.138 171 158 199 66 55 131 310 2.551 2.510 2.806 992 11.375 10
22 323 889 182 132 198 80 54 111 303 1.746 2.036 2.464 901 9.419 8
23 305 685 148 116 226 76 56 138 247 932 1.573 2.119 825 7.446 6
24 319 613 148 122 181 71 45 132 225 592 1.226 1.575 616 5.865 5
25 317 596 154 107 196 80 55 105 226 465 1.012 1.157 602 5.072 4
26 357 548 173 148 202 99 43 141 231 499 942 1.129 607 5.119 4
27 339 569 180 119 218 85 73 104 210 384 881 994 635 4.791 4
28 364 547 158 109 237 90 54 126 194 377 813 1.035 682 4.786 4
29 412 607 190 107 224 80 64 145 196 342 720 1.054 694 4.835 4
30 349 540 166 114 217 100 71 127 159 340 698 950 681 4.512 4
31 352 467 171 106 247 79 52 123 158 317 601 930 670 4.273 4
32 291 452 137 101 201 66 51 113 122 268 572 881 583 3.838 3
33 359 498 193 99 215 70 70 121 141 301 564 934 625 4.190 4
34 413 544 201 117 259 97 86 150 148 332 618 884 695 4.544 4
35 359 461 196 113 255 111 79 156 128 316 549 931 642 4.296 4
Total 117.491 100
Table 1.5.4: Population by ages in Ninh Kieu District

16
 - Income:

According to the questionnaire sample of 110 people:

- Frequency of people going to pub service in a month:
There are 72 people use pub service from once to twice a month.
There are 4 people use use pub service from 3 to 4 times a month.
There are 6 people us use pub service more than 4 times a month.
=> 74,5% out of 110 people in our targeted customer.
- Income:
There are 35 people have income from 2 million to 5 million a month.
There are 17 people have income from 5 million to 10 million a month.
=> 63,4% out of 110 people in our targeted customer.
⇒ People that interested in our pub service can be calculated in below:
117.491 x 74,5% x 63,4% = 55.495 (person)
⇒ The average time of using pub service each month of 82 people that have the demand to use
this service in our sample is 1,78 times.

The demand of using pub service of Ninh Kieu people from 18-35 years old calculated in a year
of 2020 as:
55.495 x 1,78 x 12 = 1.165.395 (times ).
Using the similar approach to calculate the past demand of using pub service in 2012, we have:
266.381 x (117.491/274.208) x 74,5% x 63,4% = 53.910 (person)

The demand of using pub service of Ninh Kieu people from 18-35 years old calculated in a year
of 2012 using the ratio of 2020 as:
53.910 x 1,78 x 12 = 1.151.528 (times)
Assume that the demand of using pub service has increased 5%/year, we can imply the actual
demand of 2012 is: Y2012 = Y2020 x (1 + 0,05)-8
Y2012 = 1.165.395 x (1 + 0,05)-8 = 788.785 (times)
Average increase demand from year 2012 to year 2021: (1.165.395 - 788.785)/9 = 41.846
Yd(2021) = 1.165.395 + 41.846 = 1.207.241
Yd(2022) = 1.207.241 + 41.846 = 1.249.087
Yd(2023) = 1.249.087 + 41.846 = 1.290.933
Yd(2024) = 1.290.933 + 41.846 = 1.332.779
Yd(2025) = 1.332.779 + 41.846 = 1.374.625

17
 Year 2021 2022 2023 2024 2025

Demand of products/ year 1.207.241 1.249.287 1.290.933 1.332.779 1.374.625

2.2.3. Competitors:
There are many kinds of amusement places in Cantho city, but we select three of
them to have a deep analysis of these places. These are De Elite, Déjà Vu, The Heo Bistro,
Helios Cocktail, Hiraeth Cocktail Bar, Bia nha An and 1994.Beer.
De Elite:
Address: 51 Lane 4, Ba Huyen Thanh Quan Street, Thoi Binh Ward, Ninh Kieu
District, Can Tho City.
Specific characteristics:
- This cocktail bar is a close-fitting place for those who are interested in vintage,
light music, candles and flowers.
- De Elite invites skilled bartenders to perform mixing and making cocktails in
front of customers.
- It also carries out cocktail workclass for beginners.
Estimated average number of visitors per day: 200 customers/day.
Déjà Vu:
Address: Floor 1, 142 Huynh Cuong Street, An Cu Ward, Ninh Kieu District, Can
Tho City.
Specific characteristics:
- In this place, there is one area demonstrating many kinds of wines and have
knowledgeable bartenders to introduce the history of each wine.
- The space is quite small but warm.
Estimated average number of visitors per day: 160 customers/day.
The Heo Bistro:
Address: 46A Lane 11, Mau Than Street, Xuan Khanh Ward, Ninh Kieu District,
Can Tho City
Specific characteristics:
- This is based on the concept of a hidden cocktails bar and kitchen with unique
creative cocktails every season.
- The scent of cinnamon, rosemary and herbs are signature around this space.
- The hospitable staff will treat customers as friends
Estimated average number of visitors per day: 180 customers/day.
Helios Cocktail:
Address: 14 Nam Ky Khoi Nghia Street, Tan An Ward, Ninh Kieu District, Can
Tho City.
Specific characteristics:
- This is the most interesting place for youngsters in Cantho City.
- Music live bands also take place every week.
- The bar counter is also renewed every season.
Estimated number of visitors per day: 150 customers/day.

18
 Hiraeth Cocktail Bar
Address: 3A Nguyen Du Street, Tan An Ward, Ninh Kieu District, Can Tho City.
Specific characteristics:
- Acoustic live band takes place every Saturday night.
- There are a lot of seasonal discount programs, namely Free-flow cocktails,
Buy 1 get one at every Acoustic night, etc.
Estimated number of visitors per day: 100 customers/day.
In addition, our group also identified 2 indirect competitors, namely:
Bia nha An:
Address: 82C Bun Xang Lake, An Khanh Ward, Ninh Kieu District, Can Tho City.
Specific characteristics:
- Large and fresh spaces distinguish it from other pubs.
- Bingo concerts and live music take place every weekend.
- Bia nha An is suitable for gatherings of big groups.
Estimated number of visitors per day: 300 customers/day.
1994.Beer
Address: 1 Dinh Tien Hoang Street, An Hoi Ward, Ninh Kieu District, Can Tho
City.
Specific characteristics:
- The rooftop view makes customers feel cool and fresh.
- The staff are kind hearted and gracious.
- This is mixed with fruit juice and smoothies on the ground floor.
Estimated number of visitors per day: 150 customers/day.

Ordinal Number of Number of

Direct/Indirect competitors
number customer/day customer/year

1. De Elite 200 73.000

2. Déjà Vu 160 58.400

3. The Heo Bistro 180 65.700

4. Helios Cocktail 150 54.750

5. Hiraeth Cocktail Bar 100 36.500

6. Bia nha An 300 109.500

7. 1994.Beer 150 54.750

Total 1.240 452.600

Table 1.5.5a: The current supply comes from direct and indirect competitors

19
 Year 2021 2022 2023 2024 2025

Total supply/day 1.302 1.367 1.435 1.507 1.583

(Q = Q x (1+5%)

Total supply/year 475.230 498.955 523.775 550.055 577.795

Table 1.5.5b: Total supply forecast through years

Year 2021 2022 2023 2024 2025

1. Total
Demand 1,207,241 1,249,287 1,290,933 1,332,779 1,374,625
2. Total Supply 475,230 498,955 523,775 550,055 577,795
3. Market gap
(3) = (1) - (2) 732,011 750,332 767,158 782,724 796,830
4. Project's
capacity 21,900 29,200 36,500 36,500 36,500
5. Market
share
(4)/((2)+(4)) 0.044 0.055 0.065 0.062 0.059

Table 1.5.5c: Market gap

2.2.4. Market solutions:
2.2.4.1. Product strategy:
The restaurant will be designed into 2 separate spaces by a reputable domestic
engineering company to create a beautiful and cozy space to meet the needs of
relaxation and entertainment for all customers. Modern facilities and equipment
are regularly renewed to satisfy and serve customers well.
Pub products and services are all offered at specific prices and provide new
and quality product packages for customers such as: discounts, monthly gifts,
accumulate points with membership cards (requires cardholders over 18 years
old).
Another highlight in our business model is that BEERS & EARS’ products
have clear origin, ensuring food safety for customers. In addition, organizing
annual events according to the foreign holidays (Halloween, Christmas,
Valentine,…) expect guests to come here as if they are in a wonderful paradise,
and will be delighted to have fun and relax after tired working hours. Once a
month, the pub will book a music band to play, with an additional surcharge of
20.000 VND per guest to partially cover the costs, details of the date of the band's
arrival will be announced through our social fanpage.
The next remarkable point is that our service will serve and respect all target
customers regardless of gender or sexual orientation.

20
 2.2.4.2. Price strategy:
For each type of service, our pub will apply different prices. For the price of
each product, the service package has also been specified in the section "Products
and services provided" above, ensuring that the criteria is consistent with the
different spending levels of each customer who comes and uses the services
2.2.4.3. Market expansion strategy:
The pub business model is still considered as at the first stage of development
in the market of Can Tho city with a small number of competitors.
Because this entertainment activity is quite new, we expect to focus on
developing this model with an area of about 6x10m in one of the most private
and quiet streets of Can Tho City - Ngo Gia Tu street. There are also many
foreigners who come and play, while ensuring the element of airy, no
confrontation with competitors and less complicated than the famous street with
a pub - Hai Ba Trung street. Our team expects to develop and affirm the BEERS
& EARS brand in the Can Tho market in a period of 5 years. Then, with the
financial potential and experiences accumulated from business activities,
combined with the established brand, we will develop more branches in the center
of the other big city in our country: Ho Chi Minh City.
2.2.4.4. Advertising & marketing strategy:
The main form of advertising is through social media platforms: creating
business accounts on Facebook, Instagram to develop Online Marketing
networks. Then use these platforms to advertise events, promotions at the pub
and encourage target customers to visit. The goal of BEERS & EARS is to
effectively use our pub’s Content team to build a Website with eye-catching
design, providing lots of information, full of important information such as
address, opening hours and other events, which is the basis that potential
customers will rely on to decide whether to visit and people that regularly attend
our pub to use it to keep track of events and promotions.
In addition, we will make advertising through the mobile form every 3 months
by cooperating with universities, colleges and clubs to organize parties for
students (Prom, evening dance, ceremony, etc.) at a preferential price.
Furthermore, in the first week of opening, all customers who come here will
be offered a discount of 10% to 20% of the price for each respective product or
service.

CHAPTER III: TECHNICAL ANALYSIS OF THE PROJECT

3.1. Sources of supplies:
Selection of raw materials is also a very important factor when deciding to start a business
with a Pub model. Choosing materials with a clear origin, especially alcohol, is easy to
counterfeit as it is now, so contract with the supplier to have the legal guarantee as well as
price incentives. Fruits should be fresh, absolutely not make use of goods that show signs of
damage.

21
 Beers: imported directly from the manufacturing company to avoid counterfeiting:
SABECO Song Hau - Trading Joint Stock Company (Heineken) ; from Amazon (Athletic
Brewing) ; from Anheuser Busch Inbev VietNam Beer Company Limited (Budweiser).
Craft Beers: Shop Beer & Wine - Family Wine Can Tho (located at 15 Ly Thuong Kiet
Street, Tan An Ward, Ninh Kieu District, Can Tho City.
The basic materials: will be imported directly at the wholesale store of Raw Materials and
Mixing Tools in Can Tho (located at 22 Nguyen Van Cu Street, Cai Khe Ward, Ninh Kieu
District, Can Tho City).
Snacks (potato, peanuts, sausages, sunflower seed, ..): import wholesale every week at
KhoGaSi shop (located at 525/54 Huynh Van Banh, Ward 14, Phu Nhuan District, Ho Chi
Minh City).
Typing of cooking ingredients (onion, duck breast,..): will be bought every day at Tan An
Market (located at 71 Hai Ba Trung Street, Tan An Ward, Ninh Kieu District, Can Tho City).
Liquors: Imported directly at reputable selling places WINE SHOWROOM 9999 (located
at 75-77 Tran Van Kheo Street, An Hoi Ward, Ninh Kieu District, Can Tho City).
Types of fruits: will be bought every day at the 9999 Clean Fruit Store (located at 100 Cach
Mang Thang 8 Street, An Hoa Ward, Ninh Kieu District, Can Tho City).
3.2.Technology and equipment:
Ordinary Unit of Unit Price Total amount
Product name Quantity
number measurement (VND) (VND)
1. Wooden floor m2 100 415.000 41.500.000
2. Glasses m2 60 1.020.000 61.200.000
3. Construction bar 80 17.350 1.388.000
steels
4. Cement bag (50kg) 90 71.000 6.390.000
5. Stones m3 115 293.000 33.695.000
6. Fine sand m3 180 140.000 25.200.000
7. Coarse sand m3 86 230.000 19.780.000
8. Hollow brick piece 4600 1.000 4.600.000
9. Glass door m2 9.72 2.330.000 22.647.600
10. Plaster ceiling m2 110 260.000 28.600.000
11. Ceramic tiles 10 pieces/box 75 158.000 11.850.000
12. Ambiance liter 23 76.800 1.766.400
special effects
paints
13. Wooden door set 3 5.990.000 17.970.000
14. Artificial grass m2 10 35.000 350.000
15. Marble used for cubic 2 1.200.000 2.400.000
setup bar
16. Other expenses 180.000.000
Total 459.336.400
Table 2.1: Construction materials

22
Ordinal Unit of Total amount
Product name Quantity Unit price
number measurement (VND)
1. Korean wallpaper roll 7 790.000 5.530.000
1.06m x 15.5m
2. Art wall clock piece 3 2.600.000 7.800.000
3. Curtain m2 15 285.000 4.275.000
4. Light bulb piece 24 260.000 6.240.000
5. Decorative Statue piece 4 530.000 2.120.000
6. Vintage vase piece 6 185.000 1.110.000
7. Large wall mirror piece 2 2.500.000 5.000.000
8. Sofa set set 2 9.200.000 18.400.000
9. Large chandelier piece 2 10.300.000 20.600.000
10. Wall painting piece 17 130.000 2.210.000
11. Bathroom mirror piece 6 1.290.000 7.740.000

12. Bathroom vessel piece 6 1.090.000 6.540.000

sink
13. One-piece toilet piece 6 2.350.000 14.100.000
14. Pots piece 10 100.000 1.000.000
15. Table with partition set 10 2.665.000 26.650.000
+ 2 chairs
16. Swivel bar stool piece 10 1.200.000 12.000.000
17. Hand sanitizer piece 1 445.000 445.000
dispenser
18. Wine cabinets piece 1 23.500.000 23.500.000
19. Interior decoration piece 2 1.550.000 3.100.000
CNC partitions
20. Ceiling lamp shaped piece 12 430.000 5.160.000
like a garlic bulb
21. Wine glass piece 5 237.000 1.185.000
stemware rack
holder
22. Other expenses 15.000.000
Total 189.705.000
Table 2.2: Interior decoration materials

23
 Cost for
Using
Ordinal each Selling
Name Materials materials Total cost
number materials price
(ml)
used
Gin 22,18 10.139
Benedictine 7,40 7.400
Grand Marnier 7,40 5.286
Heering Cherry
7,40 9.571
Liqueur
Singapore Pineapple juice 29,57 2.366
1. 38.671 78.000
Sling
Lime juice 14,80 2.368
Angostura bitters 0,62 1.147
Club soda 20,00 394
Orange slice
Cherry
Cube ices
Gin 59,14 27.035
Gin And
2. Tonic water 118,29 2.509 31.912 55.000
Tonic
Lime juice 14,80 2.368
Lime wedge
Sugar cube
Angostura
1,24 2.294
3. Old Fashioned Bitters 31.864 60.000
Rye Or Bourbon 59,14 29.570
Orange twist
Citrus Vodka 163,00 107.114
Cointreau 30,00 17.143
4. Cosmopolitan Lime juice 15,00 2.400 127.350 189.000
Cranberry juice 7,00 693
Lime wedge
Gin 60,00 27.429
5. Martini Dry Vermouth 14,80 5.180 32.609 87.000
Lemon peel
Scotch 22,00 8.580
Sweet Vermouth 22,00 5.500
Blood And Heering Cherry
6. 22,00 12.257 29.857 68.000
Sand Liqueur
Orange juice 22,00 3.520
Orange peel
Light Rum 29,57 12.673
Coconut Rum 59,14 27.035
7. Sweet Poison 61.982 115.000
Blue Curacao 29,57 16.897
Pineapple juice 88,72 5.377

24
 Pineapple wedge
Cherry
Vanilla Vodka 50,00 26.667
London Dry Gin 50,00 18.667
Reposado
50,00 18.000
Tequila
Rum 50,00 21.429
8. Long Island Triple Sec 50,00 19.643 126.406 199.000
Lime juice 100,00 16.000
Ice
Cola 500,00 6.000
Lime wedge
Table 2.3: Materials for cocktails

Ordinal Materials Total

number Name Price Weight (g) used (g) cost Selling price
1. Fried potato 248.000 2.000 300 37.200 69.000
Roasted salted
2. peanuts 1.000.000 4.200 50 11.905 30.000
German
3. Sausages 6.000.000 10.000 200 120.000 179.000
4. Fried onion rings 125.000 5.000 200 5.000 39.000
5. Grilled cuttlefish 6.800.000 10.000 70 47.600 80.000
89.000
(apple)
54.000
(guava)
Fruit dish (size 40.000 1.000g/ type of
6. M) (mango) fruit (3.000g) 300 18.300 39.000
89.000
(apple)
54.000
(guava)
Fruit dish (size 40.000 1.000g/ type of
7. L) (mango) fruit (3.000g) 600 36.600 69.000
8. Sunflower seed 2.900.000 10.000 70 20.300 49.000
Grilled duck
9. breast 740.000 3.000 300 74.000 179.000
Table 2.4: Materials for snacks

25
Ordinal Product name Unit of Quantity Unit price Total amount
number measurement (VND)

1. Philips LED tube piece 10 115.000 1.150.000

glass lightbulb

2. Electric string m 120 13.000 1.560.000

trimmers

3. Solar pathway piece 20 250.000 5.000.000

lights outdoor

4. Other attached 7.000.000

items

Total 14.710.000

Table 2.5: Electrical system

Ordinal Unit of Unit Total amount

Product name Quantity
number measurement price (VND)
1. Stainless steel piece 5 60.000 300.000
water bowl
2. Cutting board piece 5 120.000 600.000

3. Knife kit set 4 280.000 1.120.000

4. Big plate piece 20 55.000 1.100.000

5. Wine glass piece 100 45.000 4.500.000

6. Ice bucket piece 10 30.000 300.000

7. Tissue box piece 15 20.000 300.000

8. Pan piece 2 1.099.000 2.198.000

9. Stainless steel set 20 160.000 3.200.000

cutlery set
10. Food wrapping roll 15 19.000 285.000
paper
11. Glass bottle and piece 35 5.000 175.000
jar
12. Wooden spoon piece 45 25.000 1.125.000

13. Bamboo basket piece 25 20.000 500.000

for food
14. Bag of 200 straws basket 185 18.000 3.330.000

15. Set of 3 stainless set 1 590.000 590.000

steel pots

26
 16. Cocktail shaker piece 5 39.000 195.000

17. Jigger piece 5 45.000 225.000

18. Ice cube tray piece 80 20.000 1.600.000

19. Strainer piece 5 75.000 375.000

20. Beer mat piece 100 15.000 1.500.000

21. Corkscrew piece 10 110.000 1.100.000

22. Apron piece 3 80.000 240.000

Total 24.858.000
Table 2.6: Short-term tools and instruments
Short-term tools and instruments used for 1 year, we plan that about 60% will be reused in the
next year, and 40% will have new purchases, (estimate inflation is about 3.5%).
So, the estimated cost is:
Y(2022) = 40% x 24.858.000 x (1 + 3,5%) = 10.291.212
Y(2023) = 10.291.212 x (1 + 3,5%) = 10.651.404
Y(2024) = 10.651.404 x (1 + 3,5%) = 11.024.204
Y(2025) = 11.024.204 x (1 + 3,5%) = 11.410.050

Ordinal Product name Unit of Quantity Unit price Total

number measurement amount
(VND)
1. Sunhouse 2 burner gas piece 2 470.000 940.000
stove SHB 201MT
2. Glass cabinet for dry piece 2 2.560.000 5.120.000
goods
3. Stainless steel shelf piece 3 425.000 1.275.000
4. Kitchen counter piece 1 3.000.000 3.000.000
5. Hand dryer machine piece 1 3.300.000 3.300.000
6. Fire extinguisher piece 4 385.000 1.540.000
7. Security camera piece 6 690.000 4.140.000
8. Kitchen hood piece 1 4.732.000 4.732.000

9. Samsung Inverter piece 2 12.500.000 25.000.000

refrigerator 360 liters
RT35K5982BS/SV
10. Sunhouse Professional piece 2 850.000 1.700.000
Countertop Blender
SHD5582W
11. Juicer machine AVA piece 1 640.000 640.000
GS-320

27
 12. HP Desktop 205 Pro set 1 7.290.000 7.290.000
G4 AIO R5 4500U
13. Sumi POS cash register set 1 4.500.000 4.500.000
T2
14. Aqua Inverter air piece 4 7.640.000 30.560.000
conditioner 1HP AQA-
KCRV10WNZA
15. Wireless bluetooth set 2 8.120.000 32.480.000
speaker
16. Wireless bluetooth piece 4 320.000 1.280.000
karaoke microphone
17. Sunhouse electric hot piece 2 190.000 380.000
water kettle SHD1182
18. Removable power strip piece 5 60.000 300.000
for customers
19. Microwave piece 1 1.590.000 1.590.000
20. Kitchen scale piece 2 350.000 700.000
130.467.000
Total
Table 2.7: Long-term tools and instruments used for 5 years

3.3.Project structure:

Name Area (m2)

Counter area 1m2

Beverage area 10m2

Kitchen area 5m2

Parking area 20m2

Toilet area 8m2

Staff room 8m2

Warehouse 8m2

Serving area 55m2

Co-operator area 5m2

Table 3: Pub’s Project Structure

28
 3.4.Depreciation:
Item Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Machinery cost 47.803.000 47.803.000 47.803.000 47.803.000 47.803.000 47.803.000

Annual depreciation 9.560.600 9.560.600 9.560.600 9.560.600 9.560.600

Accumulative
depreciation 9.560.000 19.120.600 28.681.200 38.241.800 47.802.400

New investments

Closing residual value 47.803.000 38.242.400 28.681.800 19.121.200 9.560.600 0

Table 3.2: Depreciation of counter area for 5 years

Item Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Machinery cost 73.884.000 73.884.000 73.884.000 73.884.000 73.884.000 73.884.000

Annual depreciation 14.776.800 14.776.800 14.776.800 14.776.800 14.776.800

Accumulative
depreciation 14.776.800 29.553.600 44.330.400 59.107.200 73.884.000

New investments

Closing residual value 73.884.000 59.107.200 44.330.400 29.553.600 14.776.800 0

Table 3.3: Depreciation of beverage area for 5 years

Item Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Machinery cost 92.982.000 92.982.000 92.982.000 92.982.000 92.982.000 92.982.000

Annual depreciation 18.596.400 18.596.400 18.596.400 18.596.400 18.596.400

Accumulative
depreciation 18.596.400 37.192.800 55.789.200 74.385.600 92.982.000

New investments

Closing residual value 92.982.000 74.385.600 55.789.200 37.192.800 18.596.400 0

Table 3.4: Depreciation of kitchen area for 5 years

29
 Item Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Machinery cost 77.937.000 77.937.000 77.937.000 77.937.000 77.937.000 77.937.000

Annual depreciation 15.587.400 15.587.400 15.587.400 15.587.400 15.587.400

Accumulative
depreciation 15.587.400 31.174.800 46.762.200 62.349.600 77.937.000

New investments

Closing residual value 77.937.000 62.349.600 46.762.200 31.174.800 15.587.400 0

Table 3.5: Depreciation of parking area for 5 years

Item Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Machinery cost 62.748.000 62.748.000 62.748.000 62.748.000 62.748.000 62.748.000

Annual depreciation 12.549.600 12.549.600 12.549.600 12.549.600 12.549.600

Accumulative
depreciation 12.549.600 25.099.200 37.648.800 50.198.400 62.748.000
New investments

Closing residual value 62.748.000 50.198.400 37.648.800 25.099.200 12.549.600 0

Table 3.6: Depreciation of toilet area for 5 years

Item Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Machinery cost 30.623.000 30.623.000 30.623.000 30.623.000 30.623.000 30.623.000

Annual depreciation 6.124.600 6.124.600 6.124.600 6.124.600 6.124.600

Accumulative
depreciation 6.124.600 12.249.200 18.373.800 24.498.400 30.623.000

New investments

Closing residual value 30.623.000 24.498.400 18.373.800 12.249.200 6.124.600 0

Table 3.7: Depreciation of warehouse area for 5 years

30
 Item Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Machinery cost 30.623.000 30.623.000 30.623.000 30.623.000 30.623.000 30.623.000

Annual depreciation 6.124.600 6.124.600 6.124.600 6.124.600 6.124.600

Accumulative
depreciation 6.124.600 12.249.200 18.373.800 24.498.400 30.623.000

New investments

Closing residual value 30.623.000 24.498.400 18.373.800 12.249.200 6.124.600 0

Table 3.8: Depreciation of staff room for 5 years

Item Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Machinery
cost 311.635.000 311.635.000 311.635.000 311.635.000 311.635.000 311.635.000
Annual
depreciation 62.327.000 62.327.000 62.327.000 62.327.000 62.327.000
Accumulative
depreciation 88.075.000 150.402.000 212.729.000 275.056.000 337.383.000
New
investments
Closing
residual value 311.635.000 249.308.000 186.981.000 124.654.000 62.327.000 0
Table 3.9: Depreciation of serving area for 5 years

Item Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Machinery cost 51.325.000 51.325.000 51.325.000 51.325.000 51.325.000 51.325.000

Annual depreciation 10.265.000 10.265.000 10.265.000 10.265.000 10.265.000

Accumulative
depreciation 10.265.000 20.530.000 30.795.000 41.060.000 51.325.000

New investments

Closing residual value 51.325.000 41.060.000 30.795.000 20.530.000 10.265.000 0

Table 3.10: Depreciation of co-operator area for 5 years

3.5.Consumption of raw materials, fuel, and other input factors

Based on conducting a survey with 400 students from different universities in Ho
Chi Minh City, the Research on Recreational Behavior of Students at Pub gave, usually,
the percentage of contribution to the business revenue from food and drinks served in pubs,
is expected to be as follows:
Beer: 26.5%

31
 Liquor: 11.8%
Cocktails: 28.5%
Fruit: 15.85%
French fries: 7.8%
Other: 9.54%
From the expected revenue per day of 24.780.000 VND, we estimate the number of
ingredients needed for each day as follows:
Ordinal
Number Name of product Purchasing price Quantity Total cost
1 Heineken 0.0 17.500 8 140.000
2 Budweiser 0.0 34.000 8 272.000
3 Athletic Brewing 30.000 8 240.000
4 Strongbow 17.500 8 140.000
5 Rekorderlig 40.000 10 400.000
6 Cornish Orchards 65.000 8 520.000
7 East West 30.000 8 240.000
8 Thom Brewery 37.500 10 375.000
9 Rooster Beer 25.000 8 200.000
10 Tê Tê White Ale 50.000 9 450.000
11 Belgo 37.500 8 300.000
Total 3.277.000
Table 3.4.1: Cost of Beer Products per day.

Ordinal Number Name of product Purchasing price Quantity Total cost

1 Hennessy VSOP 40% 783.000 1 783.000

2 Rémy Club 40% 972.000 1 972.000

Total 1.755.000
Table 3.4.2: Cost of Liquors per day

Ordinal Cost for each material Total cost of material

number Name of products used Quantity used
1.147 9 10.323
1 Angostura Bitters 2.294 9 20.646
2 Benedictine 7.400 9 66.600
3 Blue Curacao 16.897 9 152.073
4 Citrus Vodka 107.114 7 964.026
5 Club soda 394 9 3.546
6 Coconut Rum 27.035 9 243.315

32
 7 Cointreau 17.143 7 154.287
8 Cola 6.000 8 54.000
9 Cranberry juice 693 7 6.237
10 Dry Vermouth 5.180 10 46.620
10.139 9 91.251
27.035 9 243.315
11 Gin 27.429 10 246.861
12 Grand Marnier 5.286 9 47.574
9.571 9 86.139
Heering Cherry
13 Liqueur 12.257 7 110.313
14 Light Rum 12.673 9 114.057

2.368 9 21.312
2.400 7 21.600
15 Lime juice 16.000 8 144.000
16 London Dry Gin 18.667 8 168.003
17 Orange juice 3.520 7 31.680
2.366 9 21.294
18 Pineapple juice 5.377 9 48.393
19 Reposado Tequila 18.000 8 162.000
20 Rum 21.429 8 192.861
21 Rye Or Bourbon 29.570 9 266.130
22 Scotch 8.580 7 77.220
23 Sweet Vermouth 5.500 7 49.500
24 Tonic water 2.509 9 22.581
25 Triple Sec 19.643 8 176.787
26 Vanilla Vodka 26.667 8 240.003
Total 4.304.547
Table 3.4.3: Cost of Cocktails per day
Ordinal Name of Unit of Purchasing Total per
Number product Measurement price Quantity product
1 Guava kg 10.000 11 110.000
2 Mango kg 20.000 11 220.000
3 Apple kg 34.000 11 374.000
Total 704.000
Table 3.4.4: Cost of Fruits per day

33
 Ordinal Number Name of product Purchasing price Quantity Total cost
1 Fried potato 16.800 28 470.400
Total 470.400
Table 3.4.6: Cost of Fried Potato Products per day.

Ordinal Number Name of product Purchasing price Quantity Total cost

1 Roasted salted peanuts 11.905 5 59.525
2 German Sausages 120.000 4 480.000
3 Fried onion rings 5.000 5 25.000
4 Grilled cuttlefish 47.600 5 238.000
5 Sunflower seed 20.300 5 101.500
6 Grilled duck breast 74.000 4 296.000
Total 1.200.025
4. Table 3.4.7: Cost of Others per day.

CHAPTER IV: ORGANIZATION AND HUMAN MANAGEMENT OF THE PROJECT

4.1. Labor supply:
In the current competitive labor market, finding qualified employees who can meet the
expectations is a difficult problem, wasting a lot of time and costs for businesses. We look for
candidates through 2 main forms: Recruitment via social networks and Affiliate with
professional human resource training schools, career-oriented companies.
● Recruitment via social networks: Social networking sites like Facebook, Google Plus,
Instagram, LinkedIn. Using social networks now accounts for almost 70% of the time
in each person's life, posting job vacancies on these sites is really easy, inexpensive,
and at the same time the number of candidates is very significant.
● Link with the professional human resource training schools, career-oriented
companies, job agencies, publish news on HR websites, newspapers to find suitable
candidates.
4.2. Organization structure and labor composition:
4.2.1. Organizational form:

34
 Store Manager

Production Service
Department Department

Guards Waiters
Bartenders Chefs House-
keepers

Accounting Department Marketing Department

Content Media
Accountant Writers &
Cashiers Design

Diagram 2.1: Organizational structure diagram and labor composition Bears & Ears

● Job Description
- Store Manager:
+ Managing and supervising working performance in shifts
+ Arranging shifts for employees
+ Dealing with all complaints from customers and employees
+ Monthly report
- Bartender:
+ In charge of the beverage counter (hygiene, quantity)
+ Preparing drinks on the menu
- Chef:
+ In charge of the food counter (hygiene, quantity)
+ Preparing food on the menu
- Housekeeper:
+ Ensuring the hygiene of areas during opening hours such as toilets and floors
+ Ensuring all areas are cleaned before opening and closing time
- Guard:
+ Responsible for the entire parking area including parking, leading, driving
- Serve:
+ Serve food and beverages
+ Advisory food and beverages on the menu
- Accountant:
+ Inventory and calculate all costs and revenue from business activities

35
 + Monthly report
+ Calculate salary date for employees
- Cashier:
+ In charge of counter area
+ Calculate and pay bills
- Content writer:
+ Responsible for Facebook posts, including ideas for give away, mini games to increase
facebook interaction
- Media & Designer:
+ Responsible for photos, artworks for Facebook posts
● Estimate employees’ salary for one month:

Total amount
Ordinal number Position Quantity Salary/person
(vnd)
1 Store Manager 1 4.000.000 4.000.000
2 Cashier 1 2.000.000 2.000.000
3 Accountant 1 5.000.000 5.000.000
4 Server 6 1.500.000 9.000.000
5 Guard 2 2.000.000 4.000.000
6 Housekeeper 2 2.000.000 4.000.000
7 Bartender 4 3.200.000 12.800.000
8 Chef 1 3.000.000 3.000.000
9 Kitchenmaid 1 2.000.000 2.000.000
10 Content writer 1 1.500.000 1.500.000
11 Media & Designer 1 1.800.000 1.800.000
Total 21 49.100.000
Table 2.2: Estimation of employees’ salary for 1 month

4.2.2. Human resource policies:

Uniforms:
Uniforms (including 2 aprons) will be given to every waiter, bartender, chef, and
kitchenmaid annually.
Recruitment requirements:
The most basic requirement is that the candidates must be at least 18 years old.
Job applications must be completed with personal information, copy of ID card, health
certification. Selection of suitable candidates will be made through 3 rounds: application
round, interview round and job trial round. After 3 rounds, selected candidates will be
introduced about main information such as main duties and responsibilities, co-workers,
and important policies of the pub.
Working hours and day-off:
+ Regarding part-time staff: working days (including Saturday and Sunday) are
divided into 2 shifts (first shift: 18h to 23h, second shift: 21h to 2h), employees
must work at least 48 hours a week.

36
 + Regarding full-time staff: works in 8-hour shifts (18h to 2h), 2 days off allowed in
a week (except Saturday and Sunday).
+ Employees will be allowed to have days off for suitable reasons (family, illness,..).
In the case of an emergency and cannot go to work, workers must notify or
exchange working shifts with other employees to prevent damage to the store.
Salary and bonus:
Salary will be calculated based on the working time of the employee. Job-trial
employees will receive 70% official salary rate, after completing the job-trial period,
employees will have 100% salary rate.
+ Paying salary frequency: once every 30 days.
+ Increase salary policy: increase rate 3,5%/year.
+ Bonus: tips will be given 100% every 30 days to all the waiters or bartenders that
deliver the service.
+ Employee benefits: health insurance, social insurance, subsidiary,...
+ Payment method: cash

CHAPTER V: FINANCIAL ANALYSIS OF THE PROJECT

5.1.Table of revenue estimation
According to the result of our survey:
● People are willing to pay under 100.000VND/time accounted for 12,2%.
● People are willing to pay from 100.000VND to 300.000VND accounted for 58,5%.
● People are willing to pay from 300.000VND to 500.000VND accounted for 22%.
● People are willing to pay more than 500.000VND/time accounted for 7,3%.
Note that our full capacity is 100 people per day.

Year 2021 2022 2023 2024 2025

Capacity 60% 80% 100% 100% 100%

(60 people) (80 people) (100 people) (100 people) (100 people)

Expected
revenue 14.856.000 19.808.000 24.760.000 24.760.000 24.760.000
per day

Expected
revenue 5.422.440.000 7.229.920.000 9.037.400.000 9.037.400.000 9.037.400.000
per year

Table 5.1: Expected revenue for consumed drinks and food

Moreover, based on the data obtained from the sample, there are 45 people with an interest
level from "Interested" to "Very interested" if in a pub there is a type of service called "talk to

37
strangers". Therefore, our team expects to earn an additional 20,000 VND/guest when customers
pay to use the service "talk to strangers".
45 customer x 20.000VND/customer x 30days/month = 27.000.000 VND
We also get extra revenue from land rent revenue, about 5m2 for people who want to obtain
an affordable space and persistent demand for seeing tarot, Henna drawing, estimated rental price
is 1.200.000 VND/month.
So the total revenue from various sources of our pub is presented below.

Year 2021 2022 2023 2024 2025

Expected revenue
from consumed
5.422.440.000 7.229.920.000 9.037.400.000 9.037.400.000 9.037.400.000
drinks and food
per year (table 5.1)

Expected revenue
from service "talk
to strangers" per 324.000.000 356.400.000 392.040.000 431.244.000 474.368.400
year ( increase
rate 10%)

Expected revenue
from land rent per
14.400.000 15.840.000 17.424.000 19.166.400 21.083.040
year (increase rate
10%)

Total expected
5.760.840.000 7.602.160.000 9.446.864.000 9.487.810.400 9.532.851.440
revenue per year

Table 5.2: Total expected revenue

5.2.Cost estimation:
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Fixed costs 1.214.218.400 420.000.000 420.000.000 420.000.000 420.000.000 420.000.000

Long-term 130.467.000 0 0 0 0 0
instruments
and tools
cost

Rental cost 420.000.000 420.000.000 420.000.000 420.000.000 420.000.000 420.000.000

38
Decoration 189.705.000 0 0 0 0 0
cost

Construction 459.336.400 0 0 0 0 0
cost

Electricity 14.710.000 0 0 0 0 0
system cost
Table 5.3: Total fixed cost

Variable Year 1 Year 2 Year 3 Year 4 Year 5

cost

1. Direct
cost 2.764.884.868 3.605.286.656 4.460.617.791 4.461.063.027 4.461.523.844

Electricity- 166.132.000 166.132.000 166.132.000 166.132.000 166.132.000

Water cost

Short-term 24.858.000 10.291.212 10.651.404 11.024.204 11.410.050

instrument
tools

Waste- 4.320.000 4.320.000 4.320.000 4.320.000 4.320.000

solving cost

Fuel cost 1.932.000 1.999.620 2.069.607 2.142.043 2.217.014

Raw 2.564.702.86 3.419.603.82 4.274.504.78 4.274.504.78 4.274.504.78

materials 8 4 0 0 0

Internet cost 2.940.000 2.940.000 2.940.000 2.940.000 2.940.000

2. Pay for
employees 589.680.000 610.318.800 631.679.958 653.788.757 676.671.363

Salary 589.200.000 609.822.000 631.165.770 653.256.572 676.120.552

Uniform 480.000 496.800 514.188 532.185 550.811

clothes

3. Pay for 49.200.000 39.600.000 30.000.000 30.000.000 30.000.000

sales
developmen
t

Promotion 49.200.000 39.600.000 30.000.000 30.000.000 30.000.000

cost
Table 5.4: Total variable cost

39
 5.3. General financial information of the project:

1. Investment
capital
in year 0 1.214.218.400
2. Sponsor
Borrowed capital 762.500.000
Interest rate of
borrowed capital 6,50%
3. Revenue 2021 2022 2023 2024 2025
5.760.840.000 7.602.160.000 9.446.864.000 9.487.810.400 9.532.851.440
60% 80% 100% 100% 100%
4. Total cost
Fixed cost 420.000.000 420.000.000 420.000.000 420.000.000 420.000.000
Direct cost 2.764.884.868 3.605.286.656 4.460.617.791 4.461.063.027 4.461.523.844
Pay for employees 589.680.000 610.318.800 631.679.958 653.788.757 676.671.363
Pay for sales
development 49.200.000 39.600.000 30.000.000 30.000.000 30.000.000
5. Others
Income tax 20%
Interest rate of
borrowed capital 6,50%
Interest rate of
equity capital 11%
Discount rate 13,02%
Expected inflation 3,50%
Table 5.5: General financial information of the project

40
 Item Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Machinery
cost 779.560.000 779.560.000 779.560.000 779.560.000 779.560.000 779.560.000
Annual
depreciation 155.912.000 155.912.000 155.912.000 155.912.000 155.912.000
Accumulative
depreciation 155.912.000 311.824.000 467.736.000 623.648.000 779.560.000
New
investments
Closing
residual value 779.560.000 623.648.000 467.736.000 311.824.000 155.912.000 0
Table 5.6: Total depreciation of the projects for 5 years

- Borrowed capital: 762.500.000 VND, interest 6.5%

- By mutual agreement of two parties, principal payment is made within 3 years, 254.166.667
each year.
- Interest incurred during the period is equal to the outstanding balance at the beginning of the
period multiplied by the loan interest rate.

Item Year 0 Year 1 Year 2 Year 3

Opening balance 762.500.000 508.333.333,3 254.166.666,7
Interest expense 49.562.500 33.041.666,67 16.520.833,33
Total repayment 303.729.166,7 287.208.333,3 270.687.500
- Principal repayment 254.166.666,7 25.416.666,7 254.166.666,7

- Interest repayment 49.562.500 33.041.666,67 16.520.833,33

Closing balance 762.500.000 508.333.333,3 254.166.666,7 0
Table 5.7: Repayment plan

41
Ordinal
number Item 2021 2022 2023 2024 2025
1 Revenue 5.760.840.000 7.602.160.000 9.446.864.000 9.487.810.400 9.532.851.440
2 Total cost 3.823.764.868 4.675.205.456 5.542.297.749 5.564.851.784 5.588.195.207
Income
before tax
and
interest
3 (1-2) 1.937.075.132 2.926.954.544 3.904.566.251 3.922.958.616 3.944.656.233
Interest
4 expense 49.562.500 33.041.667 16.520.833,33 0 0
Income
before tax
5 (3-4) 1.887.512.632 2.893.912.877 3.888.045.418 3.922.958.616 3.944.656.233
Income
6 tax 1.152.168.000 1.520.432.000 1.889.372.800 1.897.562.080 1.906.570.288
Excise
7 Tax 989.880.000 989.880.000 989.880.000 989.880.000 989.880.000
Business-
8 license tax 2.000.000 2.000.000 2.000.000 2.000.000 2.000.000
Profit
after tax
9 (5-6-7-8) -256.535.368 381.600.877 1.006.792.618 1.033.516.536 1.046.205.945
Table 5.8: Table of profit and loss plan

5.4. Basic criteria for financial analysis

5.4.1. Discount rate

Sources of capital Proportion Interest r = WACC = 9,20%

Equity capital 60% 11% 60%*11%

Borrowed capital 40% 6,50% 40%*6,50%

Add the expected inflation rate (I=3,50%) in the 2021-2025 period:

rI = r + (1 + r) * I = 9,20% + (1 + 9,20%)*3,5% = 13,02%

42
 5.4.2. Payback period

Year Benefits Costs Difference Discount factor PV PC Difference

0 2.065.159.617 1 2.065.159.617

0 100.623.368 -2.165.782.985 0,885 0 89.031.471 -2.154.191.088

1

2 537.512.877 -1.628.270.108 0,783 420.802.457 -1.733.388.630

3 1.162.704.618 -465.565.490 0,693 805.384.910 -928.003.720

4 1.189.428.536 723.863.046 0,613 728.982.565 -199.021.154

5 1.202.117.945 0,542 651.884.366 452.863.211

Total 2.607.054.299 2.154.191.088

199.021.154
Discounted payback period: 4 𝑦𝑒𝑎𝑟𝑠 + 651.884.366 ∗ 12 𝑚𝑜𝑛𝑡ℎ𝑠 = 4 years 3 months 20 days.
465.565.490
Undiscounted payback period: 3 𝑦𝑒𝑎𝑟𝑠 + ∗ 12 𝑚𝑜𝑛𝑡ℎ𝑠 = 3 years 4 months 21 days.
1.189.428.536

5.4.3. Net Present Value

Net Present Value:
NPV = 𝛴PV - 𝛴PC = 2.607.054.299 - 2.154.191.088 = 452.863.211 > 0 ⇒ feasible project
5.4.4. Benefit-Cost Ratio
Benefit - Cost Ratio:
∑𝑃𝑉 2.607.054.299
BCR = 𝛴𝑃𝐶 = 2.154.191.088 = 1,21 > 1 ⇒ feasible project

43
 5.4.5. Break-even point

Break-even point Year 1 Year 2 Year 3 Year 4 Year 5

Fixed cost (F) 420.000.000 420.000.000 420.000.000 420.000.000 420.000.000

Variable cost (V) 3.403.764.868 4.255.205.456 5.122.297.749 5.144.851.784 5.168.195.207

Revenue (R) 5.760.840.000 7.602.160.000 9.446.864.000 9.487.810.400 9.532.851.440

R-V 2.357.075.132 3.346.954.544 4.324.566.251 4.342.958.616 4.364.656.233

Income tax (T) 1.152.168.000 1.520.432.000 1.889.372.800 1.897.562.080 1.906.570.288

Depreciation (D) 155.912.000 155.912.000 155.912.000 155.912.000 155.912.000

Principal payment 254.166.667 25.416.667 254.166.667 0 0

F-D 264.088.000 264.088.000 264.088.000 264.088.000 264.088.000

1.670.422.667 1.809.936.667 2.407.627.467 2.161.650.080 2.170.658.288

F - D + T + principal payment

Theoretical 0,178 0,125 0,097 0,097 0,096

Monetary 0,112 0,079 0,061 0,061 0,061

Repayment 0,709 0,541 0,557 0,498 0,497

Table 5.9: Break-even point

44
 5.4.6. Internal rate of return:

Year Benefit Cost DF1 PV1 PC1 DF2 PV2 PC2

0 0 2.065.159.617 1 2.065.159.617 1 2.065.159.617

1 0 100.623.368 0,939 94.485.343 0,885 89.051.681
2 537.512.877 0,882 474.086.358 0,783 420.872.583
3 1.162.704.618 0,828 962.719.424 0,693 805.754.300
4 1.189.428.536 0,777 924.185.972 0,613 729.119.693

5 1.202.117.945 0,730 877.546.100 0,542 651.547.926

Total 3.238.537.854 2.159.644.960 2.607.294.502 2.154.211.298

Internal rate of return:

𝑁𝑃𝑉1 𝑁𝑃𝑉1
𝐼𝑅𝑅 = 𝑟1 + ∗ (𝑟2 − 𝑟1 ) = 6,5% + ∗ (13,02% − 6,5%)
𝑁𝑃𝑉1 + |𝑁𝑃𝑉2 | 𝑁𝑃𝑉1 + |𝑁𝑃𝑉2 |

NPV1 = 𝛴PV1 - 𝛴PC1 = 1.078.892.894 NPV2 = 𝛴PV2 - 𝛴PC2 = 453.083.204

𝑁𝑃𝑉1
𝐼𝑅𝑅 = 6,5% + ∗ (13,02% − 6,5%)= 0,111 = 11,1% > 9,2% (WACC) ⇒ feasible project
𝑁𝑃𝑉1 + |𝑁𝑃𝑉2 |

Conclusion: Based on the well-expected indicators of our project, this project is evaluated as financial feasibility.

45
CHAPTER VI: SOCIAL ECONOMIC BENEFITS
6.1 Economics benefits:
6.1.1 Human resources:
Our pub provides job opportunities for undergraduates and graduates, especially for
college students. In this working environment, employees can freely experience both study
and work. Thereby reducing the number of the unemployed, increasing soft skills practice
for undergraduates who are trying to explore the working experience at the pub. Not only
may the staff gain more experience but they also earn a salary to stable their lives.
6.1.2 Budget:
In addition to profitable business benefits, our pub also brings common benefits to
society:
- Paying taxes and other revenues that contribute to improving the state budget.
- Each year, the revenue of our pub will be divided into 2 period: Phase 1 is from
January to June, phase 2 is from July to December. We will deduct 10% of total revenue to
raise money for the Orphanage and the Women & Children's Defense Fund for each period.

6.2 Social benefits:

- With the criterion of developing the pub in a wholesome way, we focus on the selection
of food - drinks and space layout. Creating a private space without losing an important part
of the pub atmosphere is a special thing that we pay attention to. With the goal of
developing the Pub, we want to build a place for guests to experience, enjoy the most
comfortable feeling, and want to come back next time.
- With the new model of our pub, we firmly believe that this will be a special point to attract
tourists who want to come to Can Tho and experience it. This means that the revenue of
the tourism industry will also be significantly increased.
- Contribute to improving the output of beer and alcohol consumption in the city, increasing
the attractiveness of Can Tho to foreign investors in the beer and alcohol business.

46
47