Polytechnic University of the Philippines 1

College of Business Administration

Bachelor of Science in Entrepreneurship

Business Plan

Submitted by:
Jore, Alma Marie Christine D.
South City Homes, Binan City, Laguna
E-mail: K_Streats@gmail.com

February 28, 2021

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TABLE OF CONTENTS

I. Executive Summary……………………………………………………………………3

II. Company Profile……………………………………………………………………….5

III. Product and Services…………………………………………………………………8

IV. Market Analysis………………………………………………………………………17

• SWOT analysis…………………………………………………………………..…….18
• Competitors’ Profile…………………………………………………………..…….….21
• Target market and Segmentation……………………………………………..……..22
• Marketing 4Ps…………………………………………………………..……………...24

V. Organization and Management………………………………………..…………...33

• Organizational Chart…………………………………………………………..………33
• Duties and Responsibilities…………………………………………………..………34
• Company Policies in Hiring and Termination……………………………..….……..36
• Compensation and Benefits……………………………………………….….……...43

VI. Production and Operations……………………………………………..………….52

• Production process…………………………………………………….……………..52
• Store layout………………………………………………………….…………………55
• Hours of Operations…………………………………………………….….………….57
• Risk Analysis…………………………………………………………….…….……….57

VII. Financial Plan………………………………………………………….…………….59

• Pro-forma Balance Sheet……………………………………………….…………....59

• Pro-forma Income Statement………………………………………………..……….60
• Pro-forma Cash Flow………………………………………………….…….………...62

VIII. Appendices………………………………………………………...……….……….65

• Licenses and Permits………………………………………………………….……...65

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PART I. Executive Summary

The JOREAM Food Truck Company is a small company that is newly established
in the market. The company’s goal is to give heart-warming service to the projected
customers by providing them high quality on-the-wheels global snack products. JOREAM
Food Truck Company mission is to enrich and nurture the Filipino palate by driving wheels
of global food in the Filipino community that will let you experience the world- one cart,
one Streats, and one gourmet community hearts at a time.

The company will focus on selling global dishes via food truck and its first branding
is “K-STREATS” with its tagline “BUSEOULVE ka sa Sarap!”. K-STREATS will sell
famous Korean street foods such as Chijeu Corndogeu (Korean Style Corndog), Eoumuk
(Korean Fish Cake), Chijeu Tteokbokki (Korean Spicy Rice Cake w/ Cheese) and Grilled
Chimchi (Bread Toast with Kimchi and Cheese), in landmark areas in Biñan City, Laguna.

Since the JOREAM Food Truck Company is building its own brand (K-STREATS)
to the market, there would be more strong competitors considering that there are many
Korean restaurants rising in Binan, Laguna. These competitors have much more
experience, have built their own brand loyalty to the consumers, and may also have a
high portion of the market share. Here are some of the things that the JOREAM Food
Truck Company should do in order to meet some of these challenges and continue to
grow: come up with a creative way of promoting the brand in order to catch the attention
of the consumers; leave a good first impression to the consumers by giving them the best
service this brand can offer – maintain or improve the quality of the product; value
customers interest and pay attention to their opinions in order to come up with a product
that will fit the consumers’ preferences; promote through social media platforms to
increase product awareness.

An evaluation of the company’s internal strengths and weaknesses and external

opportunities served as the foundation for this strategic analysis and marketing plan. The
plan focuses on the company’s growth strategy, suggesting ways in which it can build
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existing customer relationships, and on the development of new products or services

targeted to specific customer niches.

The target market of the company is millennials (lower to middle class) Biñan
citizens and people who are fond of eating and trying global snacks in most accessible
and affordable way. To reach that market, the company will place the food trucks in
famous landmarks in Biñan City, Laguna together with the posters, signages and social
media platforms that will help to introduce the product in the market. There will be also a
“buy-one, take-one” promo in first 50 customers for the first two-weeks of operations.

The company will have 1.2 million beginning equity from personal funds to operate
based on the financial statement. The money will be used for purchasing a customized
food trucks with furniture and fixtures, which will be the main store of K-STREATS,
purchasing capital equipments, supplies and legal documents necessary for business
operation. The company will also apply for a loan to acquire 500,000 necessaries to
support other expenses of the business wherein 150,000 will be allotted for contingency
funds and the remaining 350,000 will be used for raw materials, compensation, parking
fees, utility, and maintenance fee. The loan is payable in three years with 12% interest
per annum. This will be paid 100,000 per year using the company’s profit along the
venture of business.

According to the forecasted financial statements, the business does not need
another investment for the next years since the company is already gaining profit from
the first year of operation.
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PART II. Company Profile

JOREAM Food Truck Company was first established at the beginning of year 2021

in Barangay Sto. Tomas, Biñan City, Laguna. This company is owned by a sole proprietor

Alma Marie Christine Jore. It was formed because of the owner’s passion to a business

that will give heart-warming service to the projected customers by providing them high

quality on-the-wheels global snack products. The company wanted a name that is

connected to the owner and the industry its planning to venture with, so they came up

with “JOREAM Food Truck Company” which clearly indicates that establishing food trucks

are the focus of the company. The company wanted to apply the idea of glocalization by

putting food trucks, which originated from western countries, with global dishes in the

Philippine settings.

Today, the owner set herself to establish one of the companies who can give quality

service to the market and exceptional on the wheels products to the mass and is planning

to start within the year 2021.

Vision

JOREAM Food Truck Company endeavors to become recognized of having an

outstanding service across all industries. We pride ourselves in bringing results that count

in everything that we set out to do and we are constantly striving for successful outcomes

in all areas of our business as we continue to grow.

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Mission

To enrich and nurture the Filipino palate by driving wheels of global food in the

Filipino community that will let you experience the world- one cart, one Streats, and one

gourmet community hearts at a time.

Objectives

The company, with its vison and mission, aims the following:

▪ To provide high quality products around Binan, Laguna and neighbor cities.

▪ To let the Filipino market experience global dishes.

▪ To give the best service to customers.

CORE VALUES

In ensuring the company’s success, the company holds on to the following values:

▪ Integrity

Everything the company does is seen and scrutinized by a sovereign God.

They honor and trust Him in everything they accomplish with the business, clients,

and staff.

▪ People

They value people especially their customers and employees. They serve

people and satisfy their needs and wants; provide a superior positive working

environment for their team members to help them develop to their fullest potential.

▪ Service
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Provide a superior level of service that will constantly exceed their customers’

expectations.

▪ Excellence

In everything that they do, they do their best to provide the highest quality

product for their clients and focus on every detail of the product.

▪ Profitability

The goal is to be responsible with the resources and opportunities to be able

to grow and increase the profits of their company to benefit every team member

and clients.

Business Description

K-STREATS of JOREAM Food Truck Company will serve the customers with

unique and high-quality Korean street foods on wheels to let them taste and experience

one of the best cuisines in the world, Korean cuisine. K-STREATS will travel around in

chosen famous and populated landmarks in the City of Biñan for the first year of

operations since the company is new in the market. The business aims to provide

customers the satisfaction and comfort by driving wheels of affordable Korean food to

them.

The business is designed for everyone in the community. The company assures

to bring the Korean vibe in every bite of K-STREATS with the help of great employees.

The uniqueness and quality of product, distinctive platform used and its accessibility to

the market will help in increasing the demand for the business.
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K-STREATS is produced by JOREAM Food Truck Company, founded by Ms. Alma

Marie Christine Jore, a sole proprietor and the owner of the business. The start-up costs

of K-STREATS will include the customized food truck, kitchen equipment, vehicle

maintenance and utility, capital and contingency funds that will cover up the business’

losses and unexpected expenses for the first year, and other furniture, fixtures and

supplies essential for the office, production, and operation undertaking.

Office essentials of the company are required to be able to create, communicate

and market the product in different platforms. On the other hand, the production and

operation essentials are necessary to drive the business continuously and produce and

sell the product to the future customers.

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PART III. Product and Services

Snacks are part of the everyday food consumption of an individual. Aside from

the practiced three meals in a day, snacks are the frequent bridge to take away the

feeling of being hungry. Merienda, snacks as called in the Philippines, falls between

three o’clock to five o’clock in the afternoon. But during this pandemic, snacks can be

taken anytime and anywhere. Snack time does not have any food requirement: it may

be as easy as eating fruits or a sandwich in other countries (Everything Filipino,2018).

With this, the company seeks to give good quality snacks that can fulfill the

customer’s cravings. JOREAM Food Truck Company offers the brand K-STREATS.

The product logo indicates the name “K-STREATS”

wherein the “K” stands for Korean and the word

“streats” derived from the idea of eating treats

on the streets. The logo is wheel-shaped which

signifies the food truck or “on-the-wheels-idea”

and the color palette of the logo was inspired

from the colors of South Korea’s flag (red, blue and

white) while the color yellow is used for it

signifies warmth, pleasure and cheerfulness just like the

company. There is also a Korean translation of K-STREATS and the clipart of Korean

street foods that will be offered by the company. The product’s tagline is ‘BUSEOULVE

ka sa Sarap!” which is a creative summary of the words “busog (full), solve

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(satisfaction) and Seoul (the capital of South Korea)” or simply the idea of “by eating

Korean treats on the streets, customers will be full and will feel the satisfaction they are

looking for and can feel the Korean vibe because Korean treats are delightful and they

will have the chance to taste it due to its affordability and quality”.

Thus, K-STREATS is a starting product business that offers on-the-wheels

famous Korean street foods that will be delivered to the market via food truck which

makes the product accessible to them. The chosen product line is usually seen in the

streets of South Korea such as Korean corndogs, Fish Cake (Eomuk), Cheesy

Tteokbokki (Korean Rice Cake) and Grilled Cheese Kimchi.

Chijeu Korndogeu (Korean Rice Corndogs w/ Mozzarella Cheese)

Korean famous corndogs are a snack that can mostly found in the streets of

Seoul and other cities in Korea. It is a sausage in the stick coated with batter and deep

fried. This is a comfort food that most people wanted to eat because of the taste and

comfortability while eating it. It is a snack that you can bring and eat anywhere for it is

served on sticks.

Korean corndogs come in many

different forms, flavors, sizes, and

dressings. Since the company is only

starting in this venture, we chose one

variation of it which is very popular in

Korea, the Cheesy Corndog. This type of

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corndog includes a sausage and skewed together with a small-long block of mozzarella

cheese then covered with a dough made from rice flour, deep-fried and rolls in sugar.

Corndogs are also common and famous in the United States and across the

world but what made Korean Corndogs differs from the corndogs that most people

know? It is the covering layer of the sausage.

In the US and other countries, they coated the hotdog or sausage with a wet

mixture or batter while in Korea, they wrapped the sausage with a dough, a sticky

mixture made from pure rice flour, which make the corndogs have the Korean vibe and

much crispier and more delicious.

Eoumuk (Fish Cake)

Fish cake or “eomuk” in Korea is a

processed seafood product made from

ground white fish and other ingredients

such as potato starch, sugar, and

vegetables. It is one of the popular

ingredients in Korean cuisine, which is

mostly used in making soup, side dishes, and tteokbokki. Despite of many variations

of fish cake, the company chose to offer the very popular Korean street food, skewed
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fish cake in broth, also known as “eomuk-tang”. It has a soft texture and savory taste

that tastes like a fish, an affordable and tasty version of fish dish.

Chijeu Tteokbokki (Korean Spicy Rice Cake w/ Cheese)

One of K-STREATS’

product to offer is Cheesy

Tteokbokki, one of many

variations of Tteokbokki, a

spicy rice cake dish. It is a dish

made of garraetteok, a

cylinder-shaped white rice

cake, mixed with Korean chili paste, chili powder and other seasonings. To make it a

cheesy one, K-STREATS will add mozzarella cheese, just like what Koreans do to

make their tteokbokki much delightful and delicious. it is one of the very popular

delightful and affordable Korean street food and comfort food that many Filipino wanted

to taste due to the growing influence of K-pop and Korean Drama in the country.

Grilled Chimchi (Bread Toast with Kimchi and Cheese)

The company chose to serve one of the famous and traditional food of Korea, the

Kimchi. It is a spicy fermented cabbage and can be served as a side dish and main

dish. Over the years, Korean cuisine innovates, and Kimchi is not an exception to that.

Many variations of Kimchi exist in the streets of Korea and one of them is Grilled

Cheese Kimchi, the chosen product of the company. Grilled cheese kimchi is a kind of

bread toast where kimchi and mozzarella cheese are the filling. K-STREATS thinks
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that it is best to serve in the market since Korean food Kimchi is present but in

innovative way.

K-STREATS Product Line (Product Name, Prototypes and Price)

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Packaging

• Chijeu Korndogeu (Korean Rice Corndogs w/ Mozzarella Cheese)

• Eoumuk (Fish Cake)

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• Chijeu Tteokbokki (Korean Spicy Rice Cake w/ Cheese)

• Grilled Chimchi (Bread Toast with Kimchi and Cheese)

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PART IV. Market Analysis

Projected Market Size
In a total population of 333,028 in Binan City, Laguna, the JOREAM Food Truck

Company assumed that the population in Binan City, Laguna will increase for 3.6% every

year base on the computation of the company from the past data of census in Binan City,

Laguna.

Projected Market Size

2021 2022 2023 2024 2025
345,017 357,006 368,995 380,984 392,973

The table above shows the projected number of market size in Binan City, Laguna

for five years from year 2021 to year 2025. The assumed population growth rate of Binan

is 3.6%.

Projected Market Share

The JOREAM Food Truck Company expects to get the 4% from the total

population of 333, 028 in year 2015 in Binan City, Laguna for their food truck named K-

STREATS.

Projected Market Size

2019 2020 2021 2022 2023
13,801 14,280 14,760 15,239 15,719

The table shows the projected number of market share in Binan City, Laguna for

five years from year 2021 to year 2025. It is the 4% in the projected market size in every

year from year 2021-2025.

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Market Growth Rate

In accordance with the JOREAM Food Truck Company’s assumption and with the

product line cycle as the basis, during the growth stage, the price of their product is still

low for it is starting and the range of the market is about the 4% of the total population in

Biñan City, Laguna. As the business grows, so does the market size. The company will

use this opportunity to set a high price for the said product but when the product line

declines, so does the size of the market. JOREAM Food Truck Company will then go

back to their starting price to gain the interest of the market again.

Market Profitability
Based on Statista, an online statistic, market research and business intelligence

portal, for the year 2021-2025, 12.7 billion is the projected revenue in the section of Foods

and Beverages that is expected to show an annual growth rate of 15.2% resulting in a

market volume of 22.470 billion by 2025.

This gives JOREAM Food Truck Company an assumption of having a great

attractiveness for the market for the said product because people tend to try something

new especially when it comes to global foods that linger in their tongue. Even though the

company’s objective is sales-oriented, having a great market is beneficial to gaining large

profit.

SWOT Analysis

JOREAM Food Truck Company is a small-sized business in Sto. Tomas, Biñan

City, Laguna. It is newly established and is anticipating competition from larger office
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product stores with national and local brand names. The following are the strengths,
weaknesses, opportunities, and threats of the company.

STRENGTH WEAKNESS

Quality, Profitability and Fast Service
The company offers high quality products in
a fast-paced but are very affordable in price
in which there would still be benefit.
Flexible and Perfect Location & Easy
Access to Public (Market)
The Company's food truck is flexible in
terms of finding the best location. The
business can move from one place to
another where bigger markets are located.
The employees would work in a small
space.
Considering the size of the truck, the
employee would not have an adequate
space to rest.
Costly food truck repairs in the future
if there is any.
The company needs to maintain and
repair the truck in the future business
venture. Repairs can cost a lot of money.

Saves Rent Expenses. Little number of suppliers

The company focuses on food trucks, so The company’s food truck is a new and
they do not need to rent a space for the blooming business that has only few
business. suppliers that may lead to few products
made and supplies shortage.
Efficient Employee and Customer
Relations
The company is well acquainted with its
customers and assure their service would
satisfy the needs and wants of their market.
The company also ensures to fulfill the
benefits their employees need for their own
satisfaction.

Good Marketing and Free Advertising

Food trucks can lessen the costs for
marketing since they always move around
the streets and get to advertise the
business free.

Great Work Ethics

The company knows what is right to
implement in a company leading to
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excellent performance of workers and

efficient run of the company.

OPPORTUNITIES THREATS

High Demand for Korean Cuisine Stiff Competition

Many Filipinos wanted to try different There are many restaurants and other
cuisines, especially Korean because of the food stalls in the area that can be a
K-drama and K-pop influence. The demand substitute to the venture of the company.
for Korean cuisine has been growing over
the years. Parking and Zoning Laws
The company will always adjust and must
Different Potential Customers around abide in terms of different parking and
the City legal issues that vary depending on the
The company will have the opportunity to location. The process can be costly and
provide food products to a wide range time consuming.
market since the food truck is moving and
transferring to other locations. Road Accidents
Accidents on the road are unpredictable
Public or Private Events, Festivals and hard to avoid.
(crowded places in the vicinity)
Potential customers can mostly be found in Economic Changes
different events and festivals in the city The current economic situation where the
which mean a great source of market. business will be established can affect the
operation and production cost. Like the
Covid-19 Pandemic inflation rate, it can increase the price of
Due to lockdown and strict health protocols, raw materials that results in a price
people cannot go to restaurants when they increase of the products.
want to. The food truck can be found
around the corner that can provide food, Weather and Climate
like a delivery food to the people easily and The Philippines is a tropical country and
with much safety. always experiences rainfall, worse,
typhoons. During this season, food trucks
cannot operate and can decrease the
number of customers.

Conscious Customers in terms of

Hygiene
Food trucks operate around the street
where pollution cannot be avoided, and
some people have become more
conscious nowadays and do not prefer
street foods.
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Competitor’s Profile

The direct competitors of K-Streats are other Korean restaurants or Korean food
stalls within Biñan, Laguna. Below is the information about some of the popular Korean
restaurants and food stalls around Biñan.

Direct Competitors Seoul Society PH Samgyupsouth Bon Chon Chicken

Pavillion Mall
Offerings Korean and Korean foods Korean Foods
Japanese foods (Samgyupsal)
Product/Service Starts at 50 pesos up Starts at 249 pesos Starts at 35 pesos up
Prices to 1000 pesos to 600 pesos to 800 pesos
Retail Prices 100% Markup 100% Markup 100% Markup
Location High traffic, Highly Moderate traffic, High traffic, Highly
Visible Slightly visible Visible
Expertise Established more Established more Established more
than 5 years, Korean than 1 year (Korean than 3 years (Korean
and Japanese Food Samgyupsal) Cuisines)
Trends
Service Customized or Served on working Slow and bad
scheduled orders to hours and owner is service,
suit clients and hands-on Unaccommodating
owner’s need. staffs
Turnover Average Average Average
Capacity No physical store but Can accommodate Can accommodate
accommodate clients 10 to 20 customers more than 40
via booking customers
Client Base More than 1,000 More than 300 More than 400
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Target Market and Segmentation

Potential Market Demographic Geograp Behavioral Psychographic

of K-STREATS hic
-18-45 yrs. -Filipino & -Satisfaction at affordable -Influenced by
Old Foreign/ price Korean culture
-All gender Biñan -Loves to eat snacks -Price
-Filipino and Community -Bought foods for occasions conscious
Foreigners (other like birthdays, reunion, and -Seek value
residing in neighbor gatherings. and quality in
Binan cities) -Loyal customers their purchases
-Millenials -Urban -Allot allowance for snacks -Loves to try
(Teens- Places and -Wants comfort and and eat unique
Adulthood) Landmarks happiness at the same time. foods
-Single -Average spender
(Dependent
and
Independent)
-Students,
Tourists,
Work from
home and
sites, and
strollers
-Lower middle
class to upper
middle class

The target market of JOREAM Food Truck Company’s K-STREATS are the

active consumers of Biñan City, province of Laguna between the ages of 18 and 45, all
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gender, especially those who are fond of trying and eating international cuisines, Korean

cuisine to be specific.

These active consumers represent a demographic group of Millennials in Sto.

Tomas Biñan, Laguna. They are single, dependent, and independent. Majority of them

are students, tourists, strollers, some have home-based work and online businesses, and

other customer who works in the sites and travels every day who loves to eat a go to

snack. These consumers are price conscious and consistently seek value and quality in

their purchases. Also, they like to be associated with high quality unique products. Some

are not willing to pay a premium price, while others are willing to make impulsive

purchases. K-STREATS will be located in urban areas and highly visible places like

landmarks in Biñan and other neighbor cities.

JOREAM Food Truck Company will specifically serve the customers who adapted

are greatly influenced by spreading of Korean culture due to watching Korean drama and

following KPOP idols. The business will also serve the people who loves to eat unique

and authentic foods at affordable prices and will accommodate the busy person who have

no time to dine in restaurants but wants to be satisfied.

The company has chosen to position K-STREATS as "Korean vibe in every bite",

producing high quality products and bringing Korean inspired food at Filipino tables that

will surely help the consumers to achieve satisfaction. Also, the company ensures that
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the customers’ expectations will be met by serving them with all their hearts and providing

the best product.

Marketing Mix (4P’s: Product, Price, Place and Promotion)

PRODUCT

Many Filipinos now are being influenced and attached to Korean culture due to the

going industry of Korean dramas and Korean pop music. As they watched the dramas

and their idols, their curiosity for the culture, especially the Korean cuisine, also grows.

There are times that they also wanted to try those foods or traditions and many of us

wanted to try not just Korean cuisines but also different international dishes, but the

problem is, those kinds of foods are not accessible and affordable to the market.

JOREAM Food Truck Company made a solution to those problems by offering

them the “K-STREATS” which offers on-the-wheels Korean street foods. Unlike brick-

and-mortar food stalls and restaurants that sell Korean cuisines here in Biñan, K-

STREATS will be offered in a fast-paced and in an innovative way to serve the product to

the market by driving the food truck to the most accessible locations. The customers do

not need to visit far places just to have a taste of Korean street foods and feel the Korean

vibe because it can now be found around the corners of Biñan City.

The company is providing the customer the satisfaction and comfort they want by

extending the international snacks to their utmost availability, accessibility, and

affordability. The company did some innovations in chosen Korean street foods to fit more
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the Filipino taste buds, but they make sure that the Korean identity and vibe is still present

and preserved on the following products: Korean Rice Corndogs (Chijeu Korndogeu),

Fish Cake (Eoumuk), Cheesy Spicy Rice Cake (Chijeu tteokbokki) and Grilled

Cheese Kimchi.

In addition, the company is planning to add items or do the product line filling once

the business is stable and successfully sailing in the venture. The target items to be added

in the menu list of K-STREATS are other Korean snacks such as other variations of

Corndogs and Tteokbokki, Kimbap, Hotteok (Sweet Korean Pancake) and some rice

meals like Bachilog (Bacon, Kimchi fried rice and egg roll). The company came up with

this idea because they want to give emphasis more on bringing “must try and must add”

Korean dishes on the Filipino palate.

In terms of product level, K-STREATS can be classified as Actual or Formal

product because the company assumes that people will buy the product to satisfy their

needs. According to use, the products are consumer goods because K-STREATS

products are bought for consumption.

According to differentiation, the products are differentiated goods because K-

STREATS is distinguishable from other Korean stalls because of the innovation in terms

of products and service. When it comes to durability, it is consumable. The products

offered will only benefit the consumer for a short period of time.
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PRICE

The pricing objective of K-STREATS" of JOREAM Food Truck Company aims to

be sales-oriented since the product is new to the business industry. The company aims

to increase the sales volume and maintain or increase the market share every year.

K-STREATS’ pricing strategy is focused on product line pricing wherein the

products range from different price points such as:

Products Price

Chijeu Korndogeu (Korean Style P50.00

Corndog)

Eoumuk (Korean Fish Cake) P50.00/3 sticks

Chijeu Tteokbokki (Korean Cheesy P50.00

Spicy Rice Cake)

Grilled Chimchi (Bread Toast w/ P35.00

Kimchi and Cheese)

In addition, K-STREATS will apply market penetration in the introductory stage of

the business in which the company will start the business by selling the products with a

lower price. But as the business grows over the years, the company will increase the price

of the product and is planning to use the competitive, promotional and premium pricing.

The plan and projection of prices for each product is shown in the table below through the

product life cycle:

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STAGES Chijeu Eoumuk Chijeu Grilled

Korndogeu Tteokbokki Chimchi

Introduction P50.00 P50.00/3 sticks P50.00 P35.00

Growth P53.00 P53.00 P53.00 P40.00

Maturity P55.00 P55.00 P55.00 P43.00

Decline P50.00 P50.00/3 sticks P50.00 P35.00

The graph shows that as the business starts, K-STREATS will offer lower prices.

During the growth to maturity stage of the business, the company plans to increase the

price of their products. However, when the product declines, they plan to bring back the

price where the product pricing range started.

Price Promotions

The general pricing approach of the product is promotional pricing in which the

prices will be lowered down as the company introduces their product to the market.

Moreover, K-STREATS pricing adjustment strategies focus on discount and allowance

pricing wherein the business would have a "buy one, take one" promo for the first 50

customers during the first two weeks of the business operation.

PLACE

Distribution Channel

To be able to distribute the consumer goods, K-STREATS will use the channel of

"producer to consumer" as they start introducing the business. In that way, they will stay
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in touch with their future customers. When the business reaches the stage of growth and

maturity, the company plans to use the channel of "producer to distributor then

consumer.”

K-STREATS is also planning to use selective distribution as the distribution

strategy for the products. Since K-STREATS is new in the market, the company is

planning to sell the product via food truck in three specific locations such as Sto. Tomas

Road Corner South City Drive, Central Mall Parking Lot and Biñan Bayan. However, as

the business grows, the company also aims to change the distribution type from selective

to intensive in which the food truck will go to as many as possible crowded areas to sell

the products. To be able to reach the projected market share every year, the company

would like to extend their market through adding more food truck, dealers, or other

businesses to partner with.

Promotion and Advertising Strategy

The JOREAM Food Truck Company’s promotional strategies will include posters,

flyers, tarpaulin, and social media. The promotional strategy will help company in reaching
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its goals and to attract the customers and achieve the target market. The promotional

devices will also give information about the company’s product to the market. It will help

the company to have higher sales volume as it introduces the product to the market, and

it will help gain recognition that may increase the market’s interest.

Promotional Tools Description

Signage Signage will be at the front of the store so that people

will notice the business brand.

Posters Posters will be positioned to nearby areas where the

store is placed. It aims to widen the range of possible
consumers.

Social Networking Social media will be used to promote the product to the
Sites potential market since most of the market are now
spending their time online due to the pandemic.

Food Blog Through famous blogger and influencers, they will

promote K-STREATs’ Product to their followers and
readers which is considered by the company as a good
tool to market the newly established business.

JOREAM FOOD TRUCK COMPANY

Stages of Advertising Cycle

Stages Schedule Practice/Activities

Introductory Stage 1st Month Distribution of flyers,

posting posters, putting

 30

signage and promotion in

social media.

Competitive Stage 2nd to 5th Month Continued putting signages

and keep on posting

advertisement in social

media platforms.

Maturity Stage 6th to 10th Month Contacting influencers and

food bloggers to feature

and promote the business.

 31

Posters and Signage

 32

Facebook Account

Twitter Account
 33

PART V. Organization and Management

Organizational Chart

JOREAM Food Truck Company, with only seven members, is divided into

departments and has smaller work units. It uses the horizontal structure using a functional

approach. It is based on specialized activities such as office administration, production,

and financial management.

JOREAM FOOD TRUCK COMPANY

 34

Duties and Responsibilities of Employees

Chief Executive Officer/General Manager:

Ms. Alma Marie Christine D. Jore graduated as an entrepreneur student and she
will be starting her own venture of a food truck business as she loves putting happiness
and comfort together. She decided to put up K-Streats as her first food truck business.
Being the CEO and General Manager, her duties and responsibilities are the following:

• Looks after the overall function of the company.

• Plans endeavors of the business.
• Responsible for the overall business activity (day to day operation) of the business
and recruitment.
• Responsible for the management of all the departments
• Monitors the activities of the different departments.
• Responsible for the integration of the departments.

The new established company will be needing the following people:

Office Administrator:

• Responsible for managing the daily activities of the back-end office.

• Interfaces with the bank, vendors and third-party suppliers (drink suppliers, raw
food suppliers and maintenance team)
• Responds to inquiries on behalf of the company, handles phone calls for the
company, and manages the company’s email and website.
• Responsible for payment of tax, utility bills and performs other duties as assigned
by the Chief Operating Officer

Chef / Caterer /Cooks:

• Responsible for preparing the dishes offered by the business.

• Makes lists and budget for kitchen supplies.
• Oversee the entire kitchen staff and responsible for training new cooks.
• Make sure that the meals are fresh, clean and delicious.
 35

Kitchen Assistant / Utility Staff:

• Assist the chef/ cook in the kitchen.

• Ensures that all the needed cooking ingredients are in supply.
• Runs errand for the chef / cook and every member of the workforce.
• Ensures that the kitchen area of the truck is clean and hygienic at all times.
• Responsible for washing cooking pots, utensils, and dishes when necessary.
• Assists in packaging food and snacks and performs other duties as assigned by
the CEO or manager.

Cashier:

• Receives payments on behalf of the company (cash, mobile money etc.)

• Issues receipt to customers
• Prepares financial report at the end of every working week.
• Handles all financial transaction on behalf of the company.

Driver:

• Responsible for driving the truck to sales venues and back to base.
• Ensures that the truck is in good condition at all times.
• Ensures that maintenance schedules for the truck are strictly followed.
• Responsible for renewing the vehicle license, insurance and any other
documentation for the vehicle and performs other duties as assigned by the
restaurant manager.

Accountant:

• Responsible for the financial activities of the company

• Responsible for the overall expenses of the company.
• Responsible for the salaries of the employees and prepares the payroll report.
• Overlooks the operation of the financial department.

Proposed Management Workforce

 36

• Theory Y
This expounds a participative style of management that is centralize. It assumes
the workers are happily working, self-motivated, creative and enjoy working with great
responsibility.
• Effort in work is as natural work.
• Commitment to objective is a function of rewards associated with their
achievements.
• People usually and often seek responsibility.
• People will apply self-control and self-direction in achieving objectives.
• In Y type organization, people at lower level of the organization are involve in
decision making and have more responsibility.

Employment Requirements

Recruitment is the process of finding and hiring the best-qualified candidate from
within or outside of an organization for a job opening, in a timely and cost-effective
manner. The recruitment process includes analyzing the requirements of a job, attracting
employees to that job, screening and selecting applicants, hiring, and integrating the new
employee to the organization. It is concerned with reaching out, attracting, and ensuring
a supply of qualified personnel and making out selection of requisite manpower both in
their quantitative and qualitative aspect. Recruitment is the development and
maintenance of adequate manpower resources.

This is the first stage of the process of selection and is completed with placement.
Applicants are required to submit the following:

• Resume with 2x2 colored pictures.

• Original or true copy of Transcript of Records
• Original NSO birth certificate

For the qualified Applicants, they must submit the following:

 37

• Medical clearance
• NBI clearance
• Tax Identification Number
• SSS ID Number If previously employed, additional requirements are needed:
• HDMF and Phil Health Number
• SSS Contribution and loan status
• BIR Form 2316 (Certificate of Compensation or Income Tax Withheld)
• Certificate of Employment

Personnel’s Job Requirements

Chief Executive Officer/General Manager

• Qualification: Graduate with a degree in Bachelor of Science in Business

Management or any business-related course.
• Experience: Minimum of 3 years of experience in the business industry.
• Special attributes:
• Proficient in using the Microsoft Excel and familiar with other computer
software.
• Good Communication Skills
• Critical thinking and Problem-solving skills.
• Leadership skills and managerial skills
• Business management skills
• Proficient in English

Office Administrator

• Qualification: Graduate with a degree in Bachelor of Science in Business

Management or any business-related course.
• Experience: Must have 1 year experience as an office administrator and must be
knowledgeable of the responsibilities of all positions.
 38

• Reporting to CEO
• Special Attributes:
• Good communication and interpersonal skills
• Critical thinking and problem-solving skills
• Time-management and organizational skills

Accountant

• Qualification: Graduate with a degree in Bachelor of Science in Accountancy or

any business-related course. Certified Public Accountant, if possible.
• Experience: Must have 10 months experience in the business industry especially
in the financial department.
• Reporting to CEO
• Special Attributes:
• Pays attention to details.
• Reliable and trustworthy
• Proficient in computing numbers and very resourceful
• Critical thinking and problem-solving skills.

Cashier

• Qualification: Senior high school graduate or College graduate

• Experience: Must have 10 months experience in the business industry, especially
in the financial department.
• Reporting to: Accountant
• Special Attributes:
• Proficient in using Microsoft Excel and is knowledgeable about other
computer software.
• Proficient in computing numbers
• Good communication skills
• Trustworthy and reliable
• Critical thinking and Problem-solving skills.
 39

Chef

• Qualification: Proficient in cooking various cuisine especially Korean cuisine.

Culinary School diploma is preferred.
• Experience: Must have 2 years or more experience in the food or culinary (HRM)
industry and hands on in different equipment in the kitchen.
• Reporting to CEO
• Special Attributes:
• Advanced knowledge of Korean Cuisine.
• Leadership and time-management skills.
• Ability to remain calm and undertake various tasks.
• Knowledgeable in terms of cooking techniques and recipes.
• Familiar with sanitation regulations.

Kitchen Assistant/ Utility Staff

• Qualification: At least High school or College graduate

• Experience: Must have 10 months experience in the business industry especially
in production.
• Reporting to: Chef
• Special Attributes:
• Knowledgeable in food health and safety regulations.
• Can work in a fast-paced environment.
• Ability to work under pressure and work quickly but efficiently.
• Good communication and interpersonal skills.

Driver

• Qualification: High school graduate, if possible, and must be a licensed driver.

• Experience: Must have been a driver for more than a year.
• Special Attributes:
• Knowledgeable in driving and vehicle.
• Have a valid driver’s license.
 40

• Proficient or familiar in GPS and other technology used for driving.

• Interpersonal and communication skills.

COMPANY RULES & REGULATIONS

The JOREAM Food Truck Company has established general rules that is
applicable to all employees. Other more specific rules may be enacted by the Company
from time to time concerning specific issues and areas of operation.

• Working Hours and Rest Periods

The regular work week of JOREAM Food Truck Company is from Mondays to
Sundays, 7 days a week. Work schedule is generally between 8:00 a.m. to 8:00 p.m.
Everyone is expected to report punctually for his or her work. Employees-non-supervisory
and supervisory – are required to log in the specified logbook for monitoring of attendance
that would be looked over by authorized personnel. Employees are entitled to one hour
lunch break that is 12:00 p.m. to 1:00 p.m.

• Rules of Conduct

JOREAM Food Truck Company practices proper etiquette pertaining to business

operations. Clearly defined rules of conduct are mandatory for the orderly operations of
the company. Employees should be aware of what the company is expecting from them.
It is the duty of the employees to familiarize themselves with the company rules and
regulations pertaining to positions and obligations. The Company claims that each
employee should be devoted in following the company’s rules and regulations.

An employee who is guilty of one of the following, or similar forms of misconduct,

may be given a verbal warning at the first occurrence thereof. The issuing of a severe or
written warning may be alternative forms of disciplinary action for misconducts depending
on the evidence, circumstances, and seriousness of each situation. An employee may
 41

even be dismissed for repeated minor forms of misconduct each transgression will be
dealt with on own merit in all instances.

1. Possession or distribution of alcoholic beverages and or illegal drugs/ substances at

kiosks is prohibited.

2. Employees must notify the employer of unable to come to work indicating a valid reason
for the absence.

3. Sleeping inattentiveness during working hours is strictly prohibited.

4. Racial, ethnic, or sexual harassment of any person is prohibited.

5. Employees shall not conduct any personal business during working hours nor use
cellphone to place or receive phone calls except in emergencies or with supervisory
approval.

6. Fighting or attempting bodily injury with co employees or any other persons is strictly
prohibited.

7. Receiving complaints from customers shall be dealt accordingly.

8. Employees must always report and leave work at an appointed time.

Termination Policies

JOREAM Food Truck Company will observe legal actions inside the workplace that
can lead to termination or separation of an employee. The company provides a
termination policy that is written in the contract or company’s handbook. The rules and
regulation are as follows:

I.Voluntary Termination

A. Retirement: If an employee reaches the age of 60-65, the company will let him/her
retire and give a retirement pay.
 42

B. Resignation: The company will respect the decision of an employee if he/she wants
to resign from his/her position. Employees who want to resign shall notify the
management through a resignation letter.

C. Absence without leave or prior notice: The company will terminate employees who did
not go to work without giving the management a notice.

D. Contract expiration: Once the contract expires and the employee does not want to
renew the contract, that employee is considered to be terminated.

II. Involuntary Termination

A. Discharge for cause: The company will immediately terminate an employee who
commits misconduct or any unethical actions within the workplace such as contract
breaching, embezzlement, harassment, neglecting job responsibilities, disregard
company policies and destroy company’s assets.

B. Discharge without a cause: The company will terminate employees not because of
some cause but when their services are not needed. The reasons for terminating
employees without a cause are the following: department rearrangement due to low
capacity to continue operating the business. The company will notify the employees
who are chosen to be terminated ahead of time for them to prepare. The company will
provide pay, if possible.
 43

Compensation and Benefits

MINIMUM WAGE

The Wage Rationalization Act, Republic Act No. 6727, sets the minimum wage
rates applicable per region, province and industry sector. The industry sectors are: non-
agricultural, agriculture (plantation and non-plantation), cottage and handicraft, retail and
service sectors. Minimum wage may vary depending on the number of employees and
gross-sales of an enterprise and its industry sector.

OVERTIME

Minimum wage is based on a work of 40 hours or 8 hours per day. The daily 60-
minute mandatory lunch break is not included on the 8-hour workday and is not
compensated. Overtime pay rates vary depending on when the overtime work takes
place: regular work day, holiday, rest day, or night (between the hours of 10pm to 6am).

Overtime rates used by the company:

• Regular workday: plus 25% of the hourly pay rate.

• Rest day, regular/special holiday: plus 30% of the hourly rate on said day.

Proposed Salary and Wages

EMPLOYER CONTRIBUTION

POSITION NO. TOTAL SSS PHILHEALTH PAGIBIG EC TOTAL

SALARY

Cashier 2 10,000 736.60 275 200 10 1,221.60

and
 44

Kitchen
Assistant

Total 2 10,000 736.60 275 200 10 1,221.60

EMPLOYEE CONTRIBUTION

POSITION NO. TOTAL SSS PHILHEALTH PAGIBIG TOTAL

SALARY

Cashier 2 10,000 363.40 275 200 838.40

and
Kitchen
Assistant

Total 2 10,000 363.40 275 200 838.40

NET SALARY OF EMPLOYEES

POSITION NO. TOTAL EE WT NET PAY

SALARY

Cashier 2 10,000 838.40 0 9,161.60

and
Kitchen
Assistant

Total 2 10,000 838.40 0 9,161.60

 45

Position Minimum Wage

CEO, Office Administrator, Chef and Accountant P490.00/day

P400
Kitchen Assistant, Cashier and Driver

SAMPLE PAYROLL COMPUTATION (OFFICE ADMINISTRATOR)

 46

VI. Production and Operations

Plant Location

The company will place the K-STREATS in chosen landmarks in Biñan City,

Laguna such as Sto. Tomas Road Corner South City Drive, Central Mall Biñan Parking

Lot, and Biñan Bayan. These are some of the highly visible and crowded area in Biñan

because it is where Biñanse and people from other cities normally go and meet and it is

also the main road and main access to other barangays and cities in Laguna and Manila.

Lastly, the said locations are chosen due to its accessibility and it is where most citizens

of Biñan passes by and go around.

• Sto. Tomas Road Corner South City Drive (Every Monday and Wednesday)
 47

• Central Mall Biñan Parking Lot (Every Friday to Sunday)

• Biñan Bayan (Every Tuesday to Thursday)

 48

Location of Head Office

Since the food truck will be placed around different places in Biñan and the main
office is still in observation, the proposed location of the head office for the first time would
be located at the owner’s house, it is well-ventilated and spacious, it will be used not only
for documented purposes or paper works but also used as a location for the preparation
of other products that the company will offer to their business.

Specific Location: Block 4 Lot 30 Iriga

Street, South City Homes, Biñan City,
Laguna

Facilities Needed

The company will acquire second hand 14ft Mitsubishi Canter package that

includes a refurbished vehicle, customized food truck body with double walling, door,

cabinets, open shelves, sink, water tank, waste tank, rangehood with exhaust, wiring,

outlets, circuit breaker and paint. The company will utilize the food truck to put all the

necessary operations and production equipment and supplies. The food truck will include

the following area: serving window and serving table, worktables and preparation area,

cooking area (griddle pan with fryer), food warmer, sink, refrigerator, supplies storage,

water and gas tank, and cabin.

Space Requirements
 49

The company must acquire the necessary legal documents, licenses and permits

to legalized the business that will be established. The following documents are needed to

be compiled by JOREAM Food Truck Company before starting the business operations:

• Barangay Permit
• Mayor’s Permit
• Sanitary Permit
• DTI Permit
• BIR Permit
• Permit to Operate in three different Locations

Capital Equipment

The major equipment needed for the operation and production of K-STREATS are
as follows:

1. Chest Freezer
It is a refrigerated cabinet or compartment/
appliance used to store and preserve foods for
long period. It keeps the food frozen to protect
them from having molds, bacteria, and rotting.
Instead of a refrigerator, the company chose to
use freezer because it is space saver (perfect for
a food truck that has limited space), can store bulk
supplies of raw materials like cheese, sausage,
fish cake and rice cake.
 50

2. Grilled Pan with Fryer

This equipment is necessary, and it will be
used and utilized for cooking K-STREATS product
such as the corndogs and grilled cheese kimchi. It
is practical to use this equipment because it is
affordable, and easy to use. The company chose
this as a set to save space in the food truck.

3. Countertop Food Warmer

This will be used for cooking and
keeping warm the tteokbokki and fish
cake just like how Korean prepare this
dish in the streets. This equipment is
perfect for food truck because it is
lightweight, portable and convenient to
used.

4. Cash Register
This equipment will be used by the business to record and
calculate transactions.
5. Generator
Food trucks needs a generator because most of its operation
are isolated to the office and there is no fixed electricity. It Is
convenient and portable to use food
trucks to avoid power interruption.
 51

6. LPG Gas
Gas will be used to cook the products offered by the business.

7. Kitchen Equipments
Other equipment used to create finished products such as knifes, cutting board, tongs,
wire skimmers ladle and many more.
8. Maintenance and Utility Equipments
These are the tools needed for keeping the food truck clean and safe to use.

Labor Requirements
Service Crew
-Three (3) Service Crew (Kitchen Assistant and Cashier)
-Promoting of the Product
-Responsible for the main work activities such as:
• taking customer’s orders (cash register) cooking of food
• serving of food cleaning of stations
• taking out the trash cleaning of equipment used
• greeting of customers resupplying of stock (food)

The company assures to prioritize food handling safety and cleanliness within the
workplace to ensure that the products made are clean and safe to consume. The
employees are required to bring the following materials in workplace:

• Face mask
• Face shield
• Food Gloves
 52

• Apron
• Hairnet
• Alcohol

In addition, sharing of personal belongings are strictly prohibited and social distancing
must be always practiced.

Production process

Chijeu Korndogeu (Korean Style Corndog)

Raw Materials: Sausage, Mozarella Cheese, Skewers, All-purpose Flour,

Breadcrumbs, Baking Powder, Yeast, Egg, Milk Sugar, Water, Oil, Ketchup and
Mustard (for dressing)

Procedure:

1. Put the all-purpose flour, sugar, and salt in a bowl and mix it well.
2. Get another bowl and put the yeast and warm water together. Mix it.
3.Pour the yeast mixture into the bowl and mix it with a spatula for a while. Cover it
with plastic wrap and let it rest for 2 hours.
4.Skewed the sausages and cheese together. (Half sausage, Half Cheese)
5.After 2 hours, cover it with the batter completely. Otherwise, the cheese will leak
out when you deep-fry it. Coat it with breadcrumbs.
6.Put oil in the fryer. Deep fry the coated skewed sausage and cheese over a
medium heat.
7.When golden brown, take it out, drain excess oil and roll in sugar. Drizzle ketchup
and mustard on it before serving.
 53

Eoumuk (Fish Cake)

Raw Materials: Korean fish cake, anchovies, skewers, water, salt, pepper, garlic,
onion, and soy sauce

Procedure:

1. Chopped the garlic and onion.

2. Put the fish cake into a skewer.
3. Put water in the pan. Add onion and garlic. Wait until simmer then add anchovies.
4. Add soy sauce, salt, and pepper to taste.
5. Strain the soup before putting the fish cake into it. Wait until fish cake cooked.
6. Served it in a cup.

Chijeu Tteokbokki (Korean Spicy Rice Cake w/ Cheese)

Raw Materials: Cylinder-Shaped Rice Cake, Chili Paste, Sugar, Chili Powder, Salt,
Oyster Sauce, Water, Sausage, Green Onion, and Mozzarella Cheese

Procedure:

1. Put the chili paste, chili powder, sugar, salt, oyster sauce and water in the pan. Mix
it first to dissolve the ingredients before putting it in the stove.
2. Put the pan, where sauce is mixed, in the stove. Let it simmer over a medium heat.
3. When boiling, put the rice cake and sausage into it. Add green onions.
4. Wait until the rice cake is cooked and the sauce is thickened.
5. Add the cheese on top of it and let it melt.
 54

Grilled Chimchi (Bread Toast with Cheese and Kimchi)

Raw Materials: Sliced bread, butter, kimchi, and mozzarella cheese

Procedure:

1. Put butter into the griller-pan. Grilled the bread into it.
2. While grilling, add the kimchi on top of it. Then add cheese.
3. Cover it with another bread.
4. Flip the bread to cook the other side.
5. Wait until the bread is turned into golden brown and the cheese is melted. Serve it.

Production flow diagram

 55

Store layout and Food Truck proposed Design

56

• Hours of Operations
Business/Office Hours- 8:00A.M to 5:00 P.M
Operating Hours- 8:00A.M to 8P.M
K-STREATS Daily Schedule
8:00 A.M to 9:00 A.M
9:00 A.M to 12:00 P.M
12:00 P.M to 1:00 P.M
1:00 P.M to 3:00 P.M
3:00 P.M to 3:30 P.M
3:30 P.M to 7:30 P.M
7:30 P.M to 8:00 P.M
• Risk Analysis
Potential Risks
Different and Changing Park and
Zoning Laws
Road Accidents
57
Preparation Time
Operating Time
Lunch Break
Operating Time
Breaktime
Operating Time
Cleaning/Closing Time
Possible Solutions
Although, this can be costly and time-
consuming, the company will process the
legal documents ahead of time so that
there will be no interruptions during
operation hours.
The company will secure a safe spot for
the food trucks where road accidents can
be avoided. The food truck will be parked
meters away from the main road and
follow safety precautions in driving.
 58

Operational Risks The company will ensure to practice safety

precautions all the time to avoid work-
related accidents since the food truck has
only a limited space.

Food Spoilage The company will control the number of

raw materials to be placed in food trucks
due to limited storage. The company will
also train the employees in terms of food
safety handling to avoid food
contamination.

Weather and Climate Change The company will make a backup plan
incase there will be storms and other
weather-related risks. This is to ensure the
workers and clients safety during at these
times.
 59

VII. Financial Plan

• Pro-forma Balance sheet
Business Name: K-STREATS
Projected Balance Sheet
As of at the end of the first three years of operations
Year 1
ASSETS
Cash ₱ 753,815.00
Contingent Fund ₱ 150,000.00
Accounts Receivable ₱ 50,400.00
Raw Ingredients ₱ 154,020.00
Work in Process Products ₱ 169,938.00
Finished Product ₱ 30,000.00
Food Trucks and Furniture ₱ 595,000.00
Year 2 Year 3
₱ 1,130,722.50 ₱ 1,507,630.00
₱ 155,000.00 ₱ 160,000.00
₱ 75,600.00 ₱ 100,800.00
₱ 231,030.00 ₱ 308,040.00
₱ 254,907.00 ₱ 339,876.00
₱ 45,000.00 ₱ 60,000.00
₱ 565,250.00 ₱ 535,500.00

Less: Accumulated Depreciation - Food Truck

-₱ 29,750.00 -₱ 29,750.00 -₱ 29,750.00
& Furnitures
Equipment ₱ 405,000.00 ₱ 354,375.00 ₱ 303,750.00

Less: Accumulated Depreciation - Equipment -₱ 50,625.00 -₱ 50,625.00 -₱ 50,625.00

Total Assets ₱ 2,227,798.00 ₱ 2,731,509.50 ₱ 3,235,221.00

LIABILITES
Accounts Payable ₱ 313,200.00 ₱ 201,518.10 ₱ -
Business
₱ 400,000.00 ₱ 300,000.00 ₱ -
Loan
Total Liabilities ₱ 713,200.00 ₱ 501,518.10 ₱ -
EQUITY
Beginning Equity ₱ 1,200,000.00 ₱ 1,514,598.00 ₱ 2,229,991.40
Add: Investments ₱ 25,000.00 ₱ - ₱ -
Less: Withdrawals -₱ 20,000.00 -₱ 20,000.00 -₱ 155,959.10
Add: Net Income ₱ 309,598.00 ₱ 735,393.40 ₱ 1,161,188.70
Total Equity ₱ 1,514,598.00 ₱ 2,229,991.40 ₱ 3,235,221.00
Total Liabilities & Equity ₱ 2,227,798.00 ₱ 2,731,509.50 ₱ 3,235,221.00
 60

• Pro-forma Income Statement

PRO-FORMA INCOME Year - 1 Year - 2 Year - 3
STATEMENT
REVENUE:
Sales ₱ 2,916,000.00 ₱ 4,374,000.00 ₱ 5,832,000.00
(Less) Cost Of Goods Sold ₱ 1,499,442.00 ₱ 2,249,163.00 ₱ 2,998,884.00
(Note1)
GROSS PROFIT ₱ 1,416,558.00 ₱ 2,124,837.00 ₱ 2,833,116.00
EXPENSES:
Licenses and Permits ₱ 1,500.00 ₱ 1,500.00 ₱ 1,500.00

Advertising and Promotion ₱ 8,000.00 ₱ 12,000.00 ₱ 16,000.00

Rent ₱ 30,000.00 ₱ 30,000.00 ₱ 30,000.00
Utilities ₱ 42,000.00 ₱ 63,000.00 ₱ 84,000.00
Telephone/Internet ₱ 18,000.00 ₱ 27,000.00 ₱ 36,000.00
Supplies ₱ 117,000.00 ₱ 175,500.00 ₱ 234,000.00
Depreciation-Food Truck ₱ 29,750.00 ₱ 29,750.00 ₱ 29,750.00
and Furniture
Depreciation-Equipment ₱ 50,625.00 ₱ 50,625.00 ₱ 50,625.00
Loan Interest ₱ 60,000.00 ₱ 60,000.00 ₱ 60,000.00
Bank Service Charges ₱ 2,400.00 ₱ 2,400.00 ₱ 2,400.00
Salaries ₱ 600,000.00 ₱ 600,000.00 ₱ 600,000.00
Maintenance ₱ 15,000.00 ₱ 22,500.00 ₱ 30,000.00
TOTAL EXPENSES ₱ 974,275.00 ₱ 1,074,275.00 ₱ 1,174,275.00
NET INCOME (before ₱ 442,283.00 ₱ 1,050,562.00 ₱ 1,658,841.00
taxes)
Less: 30% Tax ₱ 132,685.00 ₱ 315,168.60 ₱ 497,652.30
Net INCOME (after taxes) ₱ 309,598.00 ₱ 735,393.40 ₱ 1,161,188.70

Notes on Projected Income Statements

Note 1: Cost of Goods Sold

Raw Ingredients, Beginning ₱ -
Raw Ingredients Purchases ₱ 1,540,200.00
Raw Ingredients, Ending ₱ 154,020.00
₱
Raw Ingredients Used 1,386,180.00
Direct Labor ₱ 198,000.00
Overheads ₱ 115,200.00
₱
Total Production Cost 1,699,380.00
Work In Process Products,
Beginning ₱ -
 61

Work In Process Products, Ending ₱ 169,938.00

₱
Cost of Goods Produced 1,529,442.00
Finished Products, Beginning ₱ -
Finished Products, Ending ₱ 30,000.00
₱
Cost of Goods Sold 1,499,442.00

PRO-FORMA CASH FLOW

 62

Business Name: K-STREATS

Projected monthly cash flow for the first year of operations

Projected Projected
Cash In Total Year 1
Year 2 Year 3
Month Month Month Month Month Month Month
Month 1 Month 2 Month 3 Month 4 5 6 7 8 9 10 11 Month 12

Sales 159,600 159,600 159,600 159,600 159,600 159,600 159,600 159,600 159,600 159,600 159,600 1,059,600 2,815,200 4,298,400 5,731,200

Loan 350,000 350,000 0 0

Owner’s
1,200,000 10,000 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,225,000 0 0
Investment

Collection of
50,400 50,400
A/R

A Total Cash
1,709,600 169,600 161,100 161,100 161,100 161,100 161,100 161,100 161,100 161,100 161,100 1,111,500 4,440,600 4,298,400 5,731,200
In

Cash Out

Raw
Ingredients 128,350 128,350 128,350 128,350 128,350 128,350 128,350 128,350 128,350 128,350 128,350 128,350 1,540,200 2,492,424 3,306,781
Purchases

Advertising 2,000 2,000 2,000 2,000 8,000 12,000 16,000

Rent 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000 30,000 30,000

Utilities 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 42,000 63,000 84,000

Telephone 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000 27,000 36,000

Supplies 9,750 9,750 9,750 9,750 9,750 9,750 9,750 9,750 9,750 9,750 9,750 9,750 117,000 175,500 234,000

Loan Interest 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000 60,000 60,000

Bank Service 200 200 200 200 200 200 200 200 200 200 200 200
2,400 2,400 2,400
Chage

Salaries 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 600,000 600,000 600,000

Licenses and 1,500

1,500 1,500 1,500
Permits
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Purchased 1,000,000
1,000,000 0 0
Fixed Assets

Maintenance 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 15,000 22,500 30,000

Loan
100,000 100,000 100,000 300,000
Payments

Owner's
20,000 20,000 20,000 155,959
Withdrawals

Tax 132,685 132,685 315,169 497,652

B Total Cash
1,205,550 202,050 202,050 204,050 202,050 202,050 204,050 202,050 202,050 204,050 202,050 454,735 3,686,785 3,921,493 5,354,293
Out

C Net
Monthly 504,050 -32,450 -40,950 -42,950 -40,950 -40,950 -42,950 -40,950 -40,950 -42,950 -40,950 656,765 753,815 376,908 376,908
Cash (A-B)

D Beginning
Cash
Balance (E of 504,050 471,600 430,650 387,700 346,750 305,800 262,850 221,900 180,950 138,000 97,050 753,815 1,130,723
Previous
Month)

E Ending
Cash
Balance 504,050 471,600 430,650 387,700 346,750 305,800 262,850 221,900 180,950 138,000 97,050 753,815 753,815 1,130,723 1,507,630
(C+D)
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VIII. Appendices
Supplemental Materials

Copies of Legal Documents

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