Republic of the Philippines

BOHOL ISLAND STATE UNIVERSITY Main

Campus
CPG North Ave. Tagbilaran City, Bohol

Vision

A premier Science and Technology university for the formation of world class and
virtuous human resource for sustainable development in Bohol and the Country.

Mission

BISU is committed to provide quality higher education in the arts and sciences, as well
as in the professional and technological fields; undertake research and development
and extension services for the sustainable development of Bohol and the country.

BUSINESS PLAN
“The Paw Cafe”
In Fulfillment of the Requirements of the Subject
Entrepreneurial in Tourism and Hospitality
Presented by:
Belano, Julie Ann
Lamoste, Shiela Mae
Villarojo, Evander
Visto, Rolando Jr.
Villarin, Kylene
BSHM-3B
Presented to:
Ms. Rea E. Kibir, MSBA
Date of Submission:
June 14, 2021

1
TABLE OF CONTENTS
Executive Summary ……………………………………………………………………………………………. 3
Introduction ……………………………………………………………………………………………. 3
General Information ……………………………………………………………………………………………. 4
Analysis, Findings, Market Study ………………………………………………………………………………. 9
Technical Feasibility ……………………………………………………………………………………………. 11
Management Aspect …………………………………………………………………………………. 33
Financial Feasibility …………………………………………………………………………………. 35
Appendix …………………………………………………………………………………. 38

2
 Chapter 1

I. Executive Summary

The proposed business “The Paw Café” is a pet- friendly restaurant/cafe located in

Gallares St. Tagbilaran City, Bohol. The cafe features a full menu of moderately priced

comfort food. This business plan offers financial institutions an opportunity to review our

vision and strategic focus. It also provides a step-by-step plan for the business start-up,

establishing favorable sales numbers, gross margin, and profitability. This plan includes

chapters on the company, products and services, market focus, action plans and

forecasts, management team, and financial plan.

II. Introduction

The Paw cafe is a pet- friendly restaurant/cafe located in Gallares St. Tagbilaran City,

Bohol. Here in Bohol finding a place to eat with your friend is easy but finding a place to

eat with your pet is burdensome since majority of the establishments here in Bohol don’t

allow pets inside. The Paw Café will allow the customers to dine in with their pets,

instead of leaving their pets outside they can eat and play with them inside. The section

of The Paw Cafe features a dining area for customers with/without pets who wants to

experience the food and ambiance, there will be a fenced play area for the customers

with pets they can play with their beloved pets while enjoy their food.

3
 Chapter 2

General Information

Methods of Projection
Arithmetic Straight Line
Year Straight Line Production Projected Diviation
Total Actual (Y) (Yc) Absolute Squared
2021 1.46 1.52 -0.26 0.068
2022 1.26 1.58 -0.22 0.048
2023 1.36 1.64 0.11 0.012
2024 1.75 1.70 0.47 0.221
2025 1.76 1.76 0.11 0.012

SD=√E(Y-Yc)

= √0.361

= 0.072

4
Management of the Projection
Unit Time To Be Quifications Compensation
Management Devoted To
The Project Monthly Annual
and Duties
Manager/ 12:30-10:30 > A graduate P 12,00.00 P 24,000.00
Book keeper of Bachelor of
Hotel
Management
> Has at least
1 year
experience in
the field
> Posses
leadership
skills. Has
knowledge in
accounting
services

Cashier 1:00-9:00 > At least P 8, 190.00 P 98,280.00

graduate in
any business-
related
courses
> Knowledge
in accounting
is relevant
Chef 12:00-8:30 > Graduate of P 10,400.00 P 124,800.00
Culinary
Course.
Physically
Healthy
> Has an
experience in
cooking at
least 1 year
Asst. Cook/ 11:30-8:30 > HM P 8,020.00 P 124,800.00
Purchaser Graduate
> Male or
Female

5
 > Have an
experience
> Physically
fit
Dining Crew 1:00-9:00 > Have an P 7,815.00 P 93,780.00
experience in
service.
Physically fit.
> Expertise in
food service
> Male or
Female
Dishwasher 1:00-9:00 > Male or P 8,060.00 P 16,720.00
Female
> Physically
Fit
Security 1:00-9:00 > Has a P 8,060.00 P 16,720.00
Guard certificate of
training as a
security
personnel.
> Has a work
experience
> Can work
minimal
supervision.

Labor Skills Number of Qualification Compensation

Required Labor Monthly Annual
Required
In charge for 2 > A graduate P 26,000.00 P 312,000.00
planning and of Bachelor of
supervising Hotel
the Management
employees > Has at least
1year
experience in
the field
> Has a
leadership in
a leading
organization.
Has
knowledge in
accounting
services
6
Do the 2 > At least P 6,380.00 P 196.560.00
inventory of graduate in
all lacking any business
materials in related
the courses
establishment > Knowledge
in accounting
is relevant
Responsible 2 > Graduate of P 20,800.00 P 249,600.00
for cooking Culinary
and monitors Course.
the inventory Physically
Healthy
> Has an
experience in
cooking at
least 1 year
Responsible 2 > HM P 24,000.00 P 288,720.00
in purchasing Graduate
and preparing > Male or
the foods and Female
assisting the > Have an
chef experience
> Physically
fit
Responsible 6 > Have an P 43,110.00 P 517,320.00
in serving experience in
customers service.
and bussing Physically fit.
out used > Expertise in
plates. food service
> Male or
Female
In charge in 2 > Male or P 16, 120.00 193,400.00
washing all Female
soiled dishes > Physically
and assisting Fit
the cook in
preparing
food menus
Responsible 2 > Has a P 16,120.00 P 193.440.00
in security certificate of
and training as a
peacefulness security
of the resto's personnel.

7
premises. > Has a work
experience
> Can work
minimal
supervision.

Status and Timeline of the Projection

J F M A M J J A S O N D
A E A P A U U U E C O E
N B R R Y N L G P T V C

Projected X X X X
Feasibility
Study
Preparation
Acquisition X
of Capital
Compiling X
business
Permit and
License.
Construction X X X X
of Building
Acquisition X
of machine
and
equipment.
Hiring of X
Personnel
Promotion X
and
advertising
Start of X
Operation

8
 Chapter 3
PRESENTATION, ANALYSIS AND FINDINGS
MARKET STUDY

This chapter presents the discussion on the demand analysis of the business. It also

includes the target customer, estimated market share and sales, formula for market

share and occupancy levels.

Demand Analysis

Tagbilaran City is one of the most visited place in the island of Bohol. This place is

rich with beautiful sceneries and historical sites to visit. Mostly in the city, there are lots

of things to do just like walking in the streets and enjoy the beauty of the city. There are

a lot of shopping malls to look for available goods or services, lodging establishments

and other businesses. In this case the demands give confidence to the proponents to

establish the proposed product The Paw Cafe in CPG North Avenue, Tagbilaran City.

Target Customer

As the locale of the project, Tagbilaran City residence ages between 18 - 65 years

old are the main consumer or target market as it is accessible for the people living in the

area to visit the cafe. Visitors and tourist coming from the different municipalities of

Bohol are also considered as their consumers. As Tagbilaran City is having a population

of 105,051 in year 2015 and still increasing recently today, the business assures that

9
many people or consumers will visit and dine in to the place. The 30% number of

customers are the students who are studying in the near schools and universities.

Estimated Market Share and Sales

Based on the customer profile for The Paw Cafe the following numbers were

compiled. The report used was prepared by Phoenix Real estate using information

obtained through the facts report.

Age Percent % of Population

18-28 8.05%

29-39 9.10%

40-50 7.39%

51-61 7.12%

62-75 6.04%

Total 37.70%

10
 Chapter 4

Technical Feasibility

This chapter discusses the business offering, service process, and the process

flow diagram. This aspect also includes the proponent’s business schedule, description

of the location and its desirability, vicinity map, floor plan, and perspective. It also shows

the overall expenses of the proposed business such as the bill of materials, purchased

merchandising supplies, maintenance expense, advertising expense, labor expense,

transportation and allowance, utilities and legal documents.

A. PRODUCT

The proposed business “The Paw Café” a café resto offers services and products

in a affordable priced menus like Burgers, fries, rice meals, silog, rice bowl, Pastries

such as cakes, cupcakes, brownies and cookies, Hot and Cold Beverages such as

coffee, milktea, shakes and soda and it would also offer some treats for our consumers

pets such as dog food to be offered in Gallares St. Tagbilaran City, Bohol. The business

assures customer satisfaction and a guarantee of coming back again and would

anticipate being able to accommodate the needs of the market in terms of food and

service.

11
B. PROCESS OF SERVICE

Business hours would be ten hours a day, and will be operating seven days a week.

The proponents decided to make the business a walk-in store by day (8:00 AM- 7:00

PM). During daytime the customers are free to enter the establishment. Since it is a pet-

friendly café pets will be allowed to enter and before entering the establishment there

will be temperature scanner, sanitizer and a logbook for the customers contact

information the establishment will follow the health protocols of the Covid-19 No

facemask are not allowed to enter and will observe social distancing inside the

premises.

12
 PROCESS IN CAFÉ

Process Flow

Scanning the
Write contact
Welcoming and temperature of each
information in the
greeting the guest customer and
logbook
sanitizing.

Handing receipt, Take order at the

Presenting bill and
change and table counter area
paying at the cashier
number

Letting the customer Thanking the

Serving the food enjoy the food customer

13
S
Diagram I

PROCESS IN PURCHASING
Process Flow

Selecting the Items

Market Decision Making
or Ingredients

Purchasing of
Receiiving Payments
Ingredients

Storage Area Production Restaurant

14
 Diagram II
C. Plant Size and Production Schedule
The plant will operate from 50%-90% capacity on its first five years of
operation. On its initial year, the monthly production will be P30,000.00 worth of
ingredients at 26-days operation per month. The details are shown below:
Year of Operation Estimates Production Worth of
Ingredients
1st Year 360,000
2nd Year 396,000
3rd Year 425,496
4th Year 432,252
5th Year 454,036

D. BUSINESS SCHEDULE

This table indicates the opening and closing time schedule of the business operations

Days Time
Monday-Sunday 8:00 am- 7:00 pm

Shifting

Time Shift
7:00 am- 3:00 pm Morning
12:00 pm- 8:00 pm Afternoon

Schedule
Days Opening Time Closing Time
Monday- Sunday 8:00 am 7:00 pm

E. Selling Process Description

15
 In selling the product the customers will choice from the menu and pay bills at the
counter and product will be claimed in the dispatch area by calling their table number
provided by the cashier/counter person.

F. Business Location

The Paw Café will be located at Gallares Street, Tagbilaran City, Bohol. The
place has enough space for the construction of the proposed study. The location is near
JJ’s Seafood Village a restaurant and hotel establishment and it is also near the bay
area. The proposed project has a possibility that it would be patronized by the residents
and the tourists.

G. Vicinity Map, Perspective and Layout

The Vicinity map of the restaurant is in the next page. It sketches the proposed
site of the specific project.

16
17
18
19
H. Waste Disposal
To maintain the cleanliness and orderliness of the establishment, the
management will be applying proper sanitation through proper waste disposal and
segregation. There are provided trashcans placed in the kitchen in the dining and
cashier area. Each trash cans will be indicated as biodegradable, non- biodegradable,
food waste and hazardous. The trash will be collected and disposed daily by the Waste
Management System in the Local Government of Tagbilaran. The management has to
secure permit from the municipality in compliance to the security and sanitation
requirement.

I. Communication
In terms of communication there will be websites and Fb page as online
information portal about the café. It gives information as for the food and services.

J. Utilities

The following utilities are the water, electricity, and internet

connection.

Source Monthly Expenses Annual Expenses

BOHECO (Electricity) P 6,000.00 P 72,000.00
Internet with Telephone 2,000.00 24,000.00
LGU (water supply) 3,000.00 36,000.00
Total: P 11,000.00 P 132,000.00

K. Raw Materials
Office Supplies

Description Quantity Unit cost Total cost

Ballpen 10 pcs 8.00 80.00
Bondpaper
-long 1ream 204.00 204.00
-short 1ream 150.00 150.00
Calculator 1 pcs 250.00 250.00

20
Display rack 1 pc 285.00 285.00
Journal 2 booklets 18.00 36.00
Newspapers 1 Set 20.00 20.00
Official receipt 20 stabs 5.00 100.00
Order book 5 pcs 5.00 25.00
Order paper 5 stabs 25.00 125.00
Scissors 3 Pcs 25.00 75.00
Trashcan 1 pc 75.00 75.00
Partial Total: 1,425.00
OFFICE EQUIPMENT Quantity Unit cost Total cost
Computer 1 pc 25,000 25,000
Computer Table 1 pc 25,000 25,000
Partial Total: 50,000

Maintenance Supplies

Description Quantity Unit cost Total cost

Air freshener 1 bottle 245.00 P 245.00

Apron 5 pcs 50.00 250.00

Toothpick 5 packs 26.00 130.00

Broom 3pcs 60.00 180.00

Dishwashing liquid 5 bottles 129.00 645.00

Dishwashing sponge 1 Set 15.00 15.00

Dust pan 2 pcs 189.00 378.00

Mops 2 pcs 250.00 500.00

Muriatic acid 5 bottles 44.00 220.00

Plunger 1 pc 150.00 150.00

Pot holder 5 pcs 10.00 50.00

Rags 4 pcs 50.00 200.00

Sanitizer 5 bottles 300.00 1,500.00

21
Sprayer 5 pcs 80.00 400.00

Table napkin 30 pcs 125.00 3,750.00

Tissue paper 6 pack 200.00 1,200.00

Toilet brush 2 pcs 80.00 160.00

Toilet pump 2 pcs 150.00 300.00

Towels 20 pcs 50.00 1,000.00

Trashcan 3 pcs 150.00 450.00

Total: 11,723.00

Service Supplies

Description Quantity Unit cost Total cost

Plate 250 pcs 53.00 P 13,250.00

Soup under liner 150 pcs 27.00 4,050

Saucer 100 pcs 15.00 1,500

Serving Spoon 300 pcs 55.00 16,500

Serving fork 300 pcs 45.00 13,500

Glasses 200 pcs 75.00 15,000

Baking pan

-small 2 pcs 27.00 54.00

-medium 2 pcs 56.00 112.00

Ladle 5 pcs 35.00 175.00

Tray

-oval 5 pcs 150.00 750.00

-round 4 pcs 75.00 300.00

Bending strew 10 packs 22.00 220.00

Bottle opener 4 pcs 253.00 1,012

Food tong 2 pcs 45.00 90.00

22
Garbage bag 3 packs 148.00 444.00

Ice bucket 5 pcs 718.00 3,590.00

Toothpick container 15 pcs 55.00 825.00

Water pitcher 5 pcs 650.00 3,250.00

Chopping board 3 pcs 175.00 525.00

Total: 75,147

Service Equipment

Description Quantity Unit cost Total cost

Blender 2 pcs P 999.00 P 1, 998.00
Cooler 1 pc 19, 860.00 19,860.00
Freezer 1 pc 21, 295.00 21, 295.00
Refrigerator 1 pc 17, 199.00 17,199.00
Water Dispenser 1 pc 5, 522.00 5,522.00
Total: P 65,874.00

Production Supplies

Description Quantity Unit Cost Total Cost

Chair 1,999.00
Boiler Pot 2 pcs 823.00 1,646.00
Can Opener 5 pcs 145.00 725.00
Casserole 3 pcs 699.00 2,097.00
Cutting Board 3 pcs 500.00 1,500.00
Egg beater 3 pcs 32.00 96.00
Flower vase 10 pcs 1,299.00 12,990.00
Frying pan
-big 5 pcs 555.00 2,775.00
-small 5 pcs 341.00 1,705.00
Kitchen scale
Ladle 3 pcs 228.00 684.00
Measuring cup 2 pcs 85.00 170.00
Measuring spoon 2 pcs 80.00 160.00
Mixing bowl 10 pcs 167.00 1,670.00

23
Molder 3 pcs 350.00 1,050.00
Oil and vinegar cruets 5 pcs 239.00 1,195.00
Pot 5 pcs 215.00 1,075.00
Pot holder 8 pcs 15.00 120.00
Rolling pin 3 pcs 150.00 450.00
Salt mill 3 pcs 608.00 1,824.00
Spatula 5 pcs 98.00 490.00
Sugar bowls 5 pcs 739.00 3,695.00
Turner 3 pcs 36.00 108.00
Wire whisk 3 pcs 75.00 225.00
Total: 36,450.00

Production Equipment

Description Quantity Unit Cost Total Cost

Freezer 1 pc P18,895.50 18, 895.50
Gas Stove 3 pcs 1,200.00 3,600.00
Microwave 2 pcs 4,894.50 9,789.00
Oven 2 pcs 2,500.00 5,000.00
Rice cooker 2 pcs 1,250.00 2,500.00
Water Dispenser 1 Unit 5,522.00 5,522.00
Total: P 45,306.00

Furniture, Fixture & Equipment

Description Quantity Unit Cost Total Cost

Air conditioner 2 pcs 8,200.00 P 16,400.00
Cash register 1 pc 7,950.00 7,950.00
Chair 100 pcs 350.00 35,000.00
Chiller 1 pcs 19,890.00 19,890.00
Clock 3 pcs 250.00 750.00
Continental 1 pc 34,000.00 20,000.00
refrigerator
First aid kit 1 pcs 550.00 550.00
Generator 1 pc 100,000.00 100,000.00
LPG 3 pcs 2,500.00 7,500.00
Speaker 1 pcs 1,900.00 1,900.00
Tables 30 pcs 640.00 19,200.00
wifi-connection 1 pc 2,000.00 2,000.00

24
Total: 211,160.00

Ingredients of foods

Ingredients Quantity Unit Cost Total Cost

White rice 1000g 44kg 44.00

Garlic 1250g 15/50g 375.00

Salt 2000g 5/250g 40.00

Cooking oil 2000ml 45/500ml 180.00

Longanisa 500g 50/500g 50.00

Eggs 16 pcs 6/each 96.00

Ground beef 1000g 330kg 330.00

Onion powder 25g 10/25g 10.00

Ham 500g 97/500g 97.00

Pork 1500g 120/500g 360.00

Soy sauce 2000ml 8/200ml 80.00

White vinegar 1200ml 8/200 ml 48.00

Bay leaves 15g 10/15g 10.00

Green onions 2000ml 38/250ml 304.00

Sesame seeds 250g 15/250g 15.00

Pig liver 1500g 120/500g 360.00

potato 500g 80/500g 80.00

Carrots 250g 15/250g 15.00

Lemon 250g 50/250g 50.00

Sugar 1000g 16/250g 64.00

Hotdogs 250g 50/250.00 50.00

Dried shitake 400g 41/400g 41.00

25
mushroom

Ground pork 1500g 120/500g 360.00

Shrimp 750g 75/250g 225.00

Ginger 250g 40/250g 40.00

Cornstarch 250g 15/250g 15.00

Shumai wrappers 100g 35/100g 35.00

Chicken 1000g 155/kg 155.00

Chicken powder 250g 15/250g 15.00

Celery 100g 42/100g 42.00

Chesnuts 250g 40/250g 40.00

Black peper 200g 5/10g 100.00

Roll wrappers 100g 35/100g 35.00

Red bell pepper 200g 5/10g 100.00

Green bell pepper 200g 5/10g 100.00

Red onion 2000ml 38/250ml 304.00

All-purpose flour 500g 48/500g 48.00

Tomato ketchup 100g 6.20/100g 6.20

Total: 4,319.20

Drinks/Beverage

Items Quantity Unit Cost Total Cost

Coke 40 (12 oz bottle) 15.00 600.00

Sprite 40 (12 oz bottle) 15.00 600.00

Royal 40 (12 oz bottle) 15.00 600.00

Mango 2kg 65.00 130.00

Apple 2kg 60.00 120.00

26
Chocolate 1000g 500kg 500.00

Strawberry 250g 125.00 125.00

Banana 2kg 50.00 100.00

Melon 2kg 50.00 100.00

Oreo 5packs 12. 00 60.00

Taro powder 250g 15/250g 15.00

Salted Caramel 250g 50/250g 50.00

Strawberry milk 250g 15/250g 15.00

Evaporated Milk 2040g 32/340g 192.00

Ice 6kg 25.00 150.00

Sugar 1500kg 16/250g 96.00

Tapioca Pearl 1200ml 9/200ml 90.00

Honey 250g 50/250g 50.00

Tea leaves 100g 5/100g 5.00

Cream 250g 50/250g 50.00

Green tea 15g 10/15g 10.00

Half and half 250g 50/250g 50.00

Cocoa powder 250g 15/250g 15.00

Cinnamon 250g 40/250g 40.00

Black cherry 250g 125.00 125.00

Powdered milk 250g 15/250g 15.00

Black tea 15g 10/15g 10.00

Cheese cloth 250g 100/250.00 100.00

Vanilla extract 1200ml 8/200ml 80.00

Total: 4,093.00

27
 Menu Costing
Carrot Cake
Ingredients A.P E.P unit cost E.P.C
Granulated sugar 1kg. 768g. 120/1kg. 92.16
Oil 750g. 576g. 175/750g. 134.4
Egg 4 pcs. 4 pcs. 6/1pc. 24
Flour 1kg. 768g. 100/1kg 76.8
Baking soda 50g 16g. 45/100g. 6.4
Salt 250g 8g. 5/250g. 0.16
Cinamon 100g 16g. 45/100g. 7.2

Carrots 1250g 1152g. 40/250g 184.32

Walnuts 100g 100g. 25/100g. 25
Cream cheese 100g 43g. 70/100g. 30.1
Vanilla 100g 24g. 30/100g. 7.2
Margarine 100g 57g. 55/100g. 31.35
Powdered sugar 1kg. 680g. 120/1kg. 81.5
Total 4283. 700.69

Yield: 20

Grams/serving: 214.15g.

Price/serving: 35.03

Mark up: 150%

Selling price: 52.55

Ube cake
Ingredients A.P E.P Unit cost E.P.C
Egg 14pcs. 14pcs. 6/1pc. 84
Ube puree 250g. 224g. 50/250g. 44.8
Coconut cream 250g. 112g. 45/250g. 20.16
Ube extract 50g. 8g. 30/50g 4.8
White granulated 250g. 100g. 30/250g 12
sugar
Salt 250g. 2g. 5/250g 0.04
Carbonated water 150g. 112g. 40/150g 29.87

28
 Cake flour 500g. 260g. 50/500g 26
Baking powder 50g. 10g. 20/50g 4
Cream of tartar 100g. 4g. 45/100g 1.8
Unsalted butter 1000g. 567g. 160/1kg. 90.72
Powdered sugar 1000g. 550g. 120/1kg 66
Macapuno 100g. 74g. 40/100g 29.6
Total. 2286g 413.79

Yield: 10

Grams/serving: 228.6g.

Price/serving:41.38

Mark up:150%

Selling price:62.07

29
D. Machinery
Blender- A blender is a kitchen and laboratory appliance used to mix, crush, purée or
emulsify food and other substances

Coffee Grinder - The grinder is a tool of great importance in extracting the aroma and
taste from coffee beans, allowing for the brewing of delicious, high quality coffee. In
most cases, the grinder is the crucial aspect to the equation.

Dough Mixer - Dough mixers are used in bakeries to stir dough ingredients together.
Mixing arms stir ingredients in a bowl or trough to produce dough of even consistency
and kneading dough.

30
Gas Stove - A gas stove is a stove that is fueled by combustible gas such as syngas,
natural gas, propane, butane, liquefied petroleum gas or other flammable gas. Before
the advent of gas, cooking stoves relied on solid fuels such as coal or wood.

Ranges and Ventilation - A kitchen hood, exhaust hood, or range hood is a device
containing a mechanical fan that hangs above the stove or cooktop in the kitchen. ... It
is also called a stove hood, cooker hood, vent hood, or ventilation hood. Other names
include cooking canopy, extractor fan, fume extractor, and electric chimney.

Point of Sale - Point of sale or point of purchase is where you ring up customers. When
customers check out online, walk up to your counter, or pick out an item from your stand
or booth, they're at the point of sale. Your point-of-sale system is the hardware and
software that enables your business to make those sales.

31
Refrigerator - an appliance or compartment which is artificially kept cool and used to
store food and drink. Modern refrigerators generally make use of the cooling effect
produced when a volatile liquid is forced to evaporate in a sealed system in which it can
be condensed back to liquid outside the refrigerator.

Oven - An oven is a tool which is used to expose materials to a hot environment. Ovens
contain a hollow chamber and provide a means of heating the chamber in a controlled
way. ... Ovens are often used for cooking, where they can be used to heat food to a
desired temperature.

32
 Chapter 5
MANAGEMENT ASPECT

Forms of Ownership

The proposed “Paw Café” is a sole proprietorship where in the proposed

restaurant is named to Mr. Rolando Visto Jr. Hence, the capital in putting up this
business is equally contributed by five (5) members namely: Ms. Kylene Villarin, Ms.
Julie Ann Belano, Mr. Evander Villarojo, Ms. Shiela Mae Lamoste and Mr. Rolando
Visto Jr. Though, they have a memorandum of agreement that the four (4) other
members have a share to the business. The said memorandum has been signed by the
members as well as Mr. Rolando Visto Jr. with no conflicts.

Organizational Chart

To have a smooth work flow of the restaurant operation, an organizational chart

is important. The employees are arranged according to the task they belong in the
operation of the business. All employees are responsible in the supervision of each
assigned task for the progress of the business.

33
 ORGANIZATIONAL CHART OF THE PAW CAFÉ

OWNER

Gen. Manager

Asst. KITCHEN LEAD

Manager/Bookeeper

POSITION STAFF POSITION STAFF

Cashier Asst. Chef
Server Dishwasher
Bartender Pastry Chef
Busser
Security

34
 Chapter 6
Financial Feasibility

Sources of Financing
The apprehension of the project requires P3,000,000.00 that will be equally shared
by five members. Each of them contributes P600,000.00 in order to come up the
capital essential to cover the expenses needed in starting the business.
Income Statement

Year 1 Year 2 Year 3 Year 4 Year 5

Sales 1,858,267.00 2,300,712.00 2,638,500.00 3,124,712.00 3,968,973.))
Less: Cost of 678,012.00 693,375.00 738,177.00 738,508.00 858,606.00
Sales
Gross profit 1,180,245.00 1,607,337.00 1. 914.638.00 2,386,204.00 3,110,367.oo
Operating 302,123.00 335, 068.00 452,002.00 468,715.00 593,515.00
expenses
Selling and 50,132.00 50,315.00 50,512.00 50,648.00 50,851.00
expenses
Income before 615,312.00 655,002.00 698,712.00 50,648.00 751, 338
tax
Less: Tax due 158,123.00 158,568.00 173,235.00 201,638.00 205, 917
NET INCOME: 457.189.00 496,434.00 525,477.00 530,494.00 645, 421

BALANCE SHEET
Particular Pre- Year 1 Year 2 Year 3 Year 4 Year 5
operation
Assets
Cash
Inventory 50,200.00 53,712.00 64,813.00 69,514.00 72,761.00
Building 1,335,200 1,335,200 1,335,200 1,335,200 1,335,200 1,335,200
.00 .00 .00 .00 .00 .00
Less: 89,013.3 178,027.0 12,639.9 267,039.9 445,066.5
Accumulat 0
ed
Depreciati
on
Furniture 211,160.0 211,160.0 211,160.0 211,160.0 211,160.0 211,160.0
0 0 0 0 0 0
35
Less: 3,971.2 7,942.4 11,913.6 15,884.8 19,856
Accumulat
ed
Service 25,976.00 25,976.00 25,976.00 25,976.00 25,976.00 25,976.00
Utensils
Less: 4,871.00 9,742.4 14,613 19,484.00 24,356.00
Accumulat
ed
Depreciati
on
Service & 20,513.00 20,513.00 20,513.00 20,513.00 20,513.00 20,513.00
Equipment
Less: 10,256.5 20,513 30,769.5 41,026.00 51,282.5
Accumulat
ed
Depreciati
on
Production 18,718.00 18,718.00 18,718.00 18,718.00 18,718.00 18,718.00
Utensils
Less: 374.36 748.72 1,123,03 1,497.44 1,871.8
Accumulat
ed
Depreciati
on
Production 20,856.00 20,856.00 20,856.00 20,856.00 20,856.00 20,856.00
equipment
Less: 4,171.2 8, 342.4 12,513.6 16,684.8 20,856
Accumulat
ed
Depreciati
on
Office 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00
equipment
Less: 10,000.00 20,000.00 30,000.00 40,000.00 50,000.00
Accumulat
ed
Depreciati
on
Land 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000
.00 .00 .00 .00 .00 .00
Total 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000
Assets .00 .00 .00 .00 .00 .00
Liabilities

36
Utensils 18,718.00
Production 20,856.00
equipment
Office 50,000.00
equipment
Land 1,400,000
.00
Purchases 8,412.00 9,345.00 10,657.00 12,345.00 15,234.00
Operating 351,721.0 457,614.0 572,319.0 653,217.0 793,216.0
expenses 0 0 0 0 0
Tax due 538,474.0 568,321.0 659,713.0 691,876.0
0 0 0 0
Selling
and
administra
tive
expense
Total
outflows
Cash
balance
and
owner’s
equity
Capital 3,000,000
beginning .00
Add net
profit
Total 3,000,000
owner’s .00
equity

37
 Appendix

A. Methods of Projection
Arithmetic Straight Line
Year Straight Line Production Diviation
Total Actual (Y) Projected Absolute
(Yc) Squared
2021 1.46 1.52 -0.26 0.068
2022 1.26 1.58 -0.22 0.048
2023 1.36 1.64 0.11 0.012
2024 1.75 1.70 0.47 0.221
2025 1.76 1.76 0.11
0.012

SD=√E(Y-Yc)
N
= √0.361
5
= 0.072

B. Financial Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
A. Over-All
Firm Liquidity
a.1 Current 665.896 823.711 573.168 1,064.33 1,102.55
Ratio 660.831 819.140 804.907 1,059. 92 1,098.50
a.2 Acid
B. Degree of
Indebtedness
b.1 Debt 665.897 823.811 573.168 1,064.33 1,102.55
Ratio 157.447 143.138 137.806 1,309.48 127.604
b.2
Recevable
Turnover
C.
Profitability
c.1 Total 27.78 23.77 20.70 18.63 20.02
Assets
Turnover 45.72 42.25 0.236 33.98 30.34
c.2 Return of
Investment 13.17 12.55 11.94 11.94 10. 84

38
 c.3 Return of
Equity
( ROE)

39