Canossa School Inc.

City of Santa Rosa, Laguna

Entrepreneurship
S.Y 2021 - 2022

Bravo, Omabe, Cenedoza, Beldad

11 - St. Francis of Assisi
Group #4 Business Plan

1. Executive Summary

a. Description of the proposed business and business model

Developed from the idea of a readily accessible menu of Filipino comfort food, the
full-service food establishment aptly named “Snackita,” described in this business plan, is a
start-up venture started by a group of students with a considerable number of years serving in
the food industry. The business is set to deliver common well-loved Filipino foods to the
interested market around the Laguna area, fulfilling the need of satisfying the cravings for
typical Filipino treats.

With the business operating mainly on virtual channels, the availability of having the product
delivered right on their doorstep coincides with the rising inclination of customers to lean
more on online shopping and delivery. By focusing on this aspect along with high-quality
customer service, diverse offerings, and creative promotional strategies, the store is projected
to achieve and generate high profit at the end of operations.

b. Description of the market opportunity to capture, or market problem the business

solves

In a market where many are forced to choose from limited menus with inflated prices
due to COVID-19 restrictions, having a variety of food items not commonly seen in fast-food
establishments or other huge franchises are in high demand, especially considering that food
expenditure has always been a top priority here in the Philippines, where food expenses has
been reported to be the highest type of spending among Filipino households.

c. Reasons for why this is an attractive business opportunity

A comprehensive analysis of the current industry also presents a probable compound

annual growth rate (CAGR) of 4.67% during the forecast period of 2021 - 2026, supported by
the fact that the related food delivery service in SEA reached $11.9 billion in gross
merchandise value (GMV) in 2020, far exceeding the $4.2 billion industry estimate in 2019,
and $2.2 billion tallies in 2018. With this trend, we can expect to have a relatively stable large
pool of potential consumers.

2. Management and Organization

a. Company name, Logo and Address

In line with the group’s objective to distribute local specialties while still adhering to
the essential principles of customer focus, community awareness, and good quality service,
the company’s name “Snackita” was decided upon originating from the joint words of
“Snack” meaning food or light meals, and the Filipino word “Kita” which means “you” -
essentially summarizing the business’ motto of “Quality Filipino foods just for you.”
Proposed logo design:

Designed to take advantage of the subtle modern

look of well-known brands while still encapsulating a
personal warm Filipino vibe, the brand’s name is
encapsulated in the silhouette of the business’ main
product: inihaw or Filipino street foods. In its principal
form, the round circle present in the background also
represents a plate given the food service industry the
business is under. Finally, the color palette is reminiscent
of traditional Filipino colors: red, white, yellow and blue.

Snackita is a start-up virtual store headquartered in the City of Santa Rosa, Laguna. It
is currently co-owned by partners Kharleene Caye Bravo, Christine Omabe, Axcel Cenedoza,
and Robert Beldad - senior high-school students under the ABM strand who have researched
and built experience in sales and marketing for the past year.

b. Vision and Mission Statements

Vision
Snackita, to serve affordable, quality, and delicious snacks that boosts customer
satisfaction and promotes Filipino ‘Merienda' foods.

Mission
Our mission is to deliver a friendly service experience to each customer that creates a
healthy environment centered on the satisfaction and happiness of its consumers. Snackita, as
an enterprise, maintains affordable and profitable prices and continues to give pride to the
Filipino traditional snacks through ensuring high standards of quality and well preparedness
of our products.

c. Key Personnel

Our management team is comprised of people with various skills and knowledge
relevant to all areas of the business. Management overhead will be maintained to a bare
minimum, and all managers will begin as hands-on workers. There are no plans to create a
top-heavy organization that drains earnings and makes decisions more difficult.

 Kharleene Bravo: CEO/Operations manager - designated team leader and has overall
responsibility for the financial success of the business. Tasked with handling external
relations with lenders, community leaders and vendors. In charge of setting in motion the
vision, strategic plan and goals for the business.

 Christine Joyce Omabe: COO/Financial manager - assistant team leader and in

control of all forms of responsibility related to monthly income statements and balance
sheets, collection of receivables, payroll and general cash management.

 Axcel Cenedoza: Quality control, safety, environmental manager/Business

Development Head - deals with food products and handling of government compliance,
monitoring air and water quality, product quality, possible employee training, and filing
all necessary monthly, quarterly, and yearly reports.

 Robert Beldad: Marketing manager/Sales Head - oversees all aspects related to

promoting and selling of the company’s products.
 d. Workforce and Support personnel

In the first year of business, Snackita will be slow in recruiting potential employees,
yet loyal to those that are hired. Because the proprietor will be doing most of the work at first,
eventual employees will be part-time. We want to select personnel with necessary abilities
and reward them appropriately as the company grows. Instead of adding more people, we
plan to enhance the responsibility of each employee from that point forward.

Customer service is the lifeblood of retail and restaurant operations, yet its employees have
some of the lowest compensation and benefits of any industry. We know we have great
products, however our success will be determined by how those things are delivered. We
recognize that our employees are our most valuable asset, and that the people who work for us
shape our company's image.

Employee compensation will include direct monetary payment, as well as performance

bonuses for full-time staff as the business grows. Due to the business’ current size, employees
will be given a comfortable wage that is fair to both the employees and the company. Our
opening employment goal is one full-time and one part-time employee with possible
additional part-time employees by the end of the second year. All personnel will be trained in
food handling and store operations, and a food handlers permit will be necessary.

e. Organizational Chart

Bravo, Kharleene Caye

CEO/Operations Manager

Cenedoza, Axcel
Omabe, Christine Joyce Quality control, safety, Beldad, Robert
COO/Financial Manager environmental manager/Business Marketing manager/Sales Head
Development Head

f. Ownership, Capitalization, Compensation, and Incentives

Snackita would be established on a joint business partnership form of ownership

wherein all the essential resources and talents would be sourced through each partner as much
as necessary. Following this thought, all the partners would also share the profits equally,
unless otherwise specified in particular agreements.

Given that the business would not be immediately hiring external workers, compensation and
incentives would be limited to the mandatory benefits provided by legal laws and regulations.
Once the company grows, the offered wages and additional incentives would likely increase
accordingly based on each job position or contract agreement.

g. External Management

Considering the current set scale of the business, Snackita would be directed solely
by the internal management team thereby, no accounts of external management resources
would be listed in the first few years of operation. However, once the business reaches its
early goals and becomes stable thus, providing more flexibility and allowance, we seek to
bring in business professionals such as consultants or coaches, in order to receive much
needed guidance in our plans of further growth or expansion.

3. Product/Service Plan

a. Purpose of the product/service

Snackita, a food service business, offers various well-loved Filipino foods such as
Pancit Bihon, Ihaw-ihaw, Isaw, Barbeque, Tenga, and Hotdog. The list also extends to some
of the common traditional snacks or desserts such as Bibingka, Kutsinta, Pichi-pichi, Suman,
and Biko. With these products and their affordable prices, the business aims to gain an
acceptable level of profit that can help in improving the quality and growth of the business.

As mentioned in the firm’s vision and mission, the products also serve a purpose in giving
pride to the traditional Filipino foods. With the business being available through online
deliveries, more citizens - foreigners, families, and friends - can enjoy the local dishes offered
by the team. This way, we can also achieve one of the organization’s main purposes,
satisfying cravings and giving happiness to our customers.

b. Products’ Unique Features

What makes our food products unique is its distinct home-made feel. Many of our
competitors share the same idea of offering Filipino snacks however, due to mass production,
they often lose the authentic taste and texture that most of us crave for. From our special
Pancit Bihon to our savory Pork Barbeques, we make sure to retain the distinct flavor of
beloved Filipino comfort foods while still maintaining quality at a reasonable price.

c. Material and Equipment requirements and sources of supply

The materials requirements and their sources are as follows:

Materials Source
Barbeque grill Grill Supplies Shop in Laguna
Charcoal Grill Supplies Shop in Laguna
Wok HMR Trading Haus in Laguna
Stainless Ladle HMR Trading Haus in Laguna
Casserole HMR Trading Haus in Laguna
Chopping Board HMR Trading Haus in Laguna
Bowls Kitchenware Store in Laguna
Plate Kitchenware Store in Laguna
Kitchen knife Kitchenware Store in Laguna
Tongs Kitchenware Store in Laguna
Bilao Bilao Store in Laguna
Box packaging Wholesale Store in Laguna
d. Production Process and controls that will be used to manufacture the product

Summary of Product Development Process

Technological

Regulatory

Financial
Pass Pass
Idea Generation Screening of Idea Feasibility
Fail Fail

Modify based on feedback Modify based on feedback

Pass
Test Marketing Commercialization
Fail

Modify based on feedback

In order to determine the optimal combination of components, processing parameters,

and packaging options to make the desired product, a variety of ingredients, processing
settings, and packaging options were in use. Following some preliminary trials, the current
proposed recipes developed for Snackita are as follows:

- Pancit Bihon

Ingredients:

 1 lb pancit bihon Rice Noodles  1 medium sized onion chopped

 ½ lb. pork cut into small thin slices  ½ tbsp garlic minced
 ¼ lb. pigs liver and cut into thin slices/  1 pc chicken cube
chicken breast shredded  5tbsp soy sauce
 ⅛ lb. pea pods or snow pea  3 to 4 cups of water
 2 cups carrot  1kl lechon baboy (toppings)
 ½ small cabbage chopped

Instructions:

1. In a large pot, Saute the garlic and onion;

2. Add the pork and chicken/pigs liver then let cook for 2 minutes;
3. Add the chicken cube and water then simmer for 15 minutes;
4. Put in the carrots, pea pod, cabbage, and pechay leaves and simmer for a few minutes;
5. Remove all the ingredients in the pot except for the liquid and set them aside;
6. In the pot with the liquid in, add the soy sauce and mix well;
7. Add the pancit bihon (makes sure to first soak it in water for about 10 minutes) and mix
well;
8. Cook until liquid evaporates completely;
9. Put-in the vegetables and meat that were previously cooked and simmer for a minute or
two.

*Note: Snackita's Pancit Bihon recipe is a simplified and adjusted version of 3M's Pancit Bihon
recipe, with the permission of the aforementioned business. The enumerated amount of ingredients is
expected to yield a portion the size of a small bilao.

- Ihaw-ihaw

Isaw

Ingredients:

 450 g Chicken Intestines (Isaw)  30 ml soy sauce

 500 ml water  60 ml vinegar
 3 g annatto powder (achuete powder)  60 g brown sugar
 5 to 6 cloves garlic, crushed  30 g ketchup
 2 bay leaves  75ml olive oil for basting
 8 to 10 peppercorns

Instructions:

1. In a medium-sized pot, add chicken intestines in 500 ml water, 3g annatto powder,

crushed garlic, 2pcs bay leaves, 8 to 10 peppercorns, 30 ml soy sauce, 60 ml vinegar, 60
g brown sugar and 30 g ketchup;
2. Cover the pot and allow it to simmer for 10 to 12 minutes over medium high heat;
3. Remove intestines from the pot, set it aside and allow it cool on a plate for 30 minutes;
4. Skewer the chicken intestines on bamboo sticks - forming a zig-zag pattern;
5. Grill on a live charcoal grill, or a grilling pan, at 3 to 5 minutes per side and baste it with
oil occasionally.

*Note: The enumerated amount of ingredients is expected to yield around 10 sticks of Isaw.

Pork Barbeque

Ingredients:

 3 lbs pork shoulder sliced into thin  2 teaspoons garlic powder

pieces
 3 tablespoons Knorr Liquid Seasoning
 4 pieces calamansi or 2 pieces lime
 ½ cup banana ketchup
 ½ cup soy sauce
 2 ½ tablespoons brown sugar
 5 tablespoons soy sauce
 1 tablespoon Knorr Liquid Seasoning
 1 piece calamansi or ½ lime
 ¼ cup banana ketchup
 2 teaspoons vegetable oil

Instructions:

1. Place the pork in a large bowl. Add all the BBQ marinade ingredients. Mix well.
2. Cover the bowl and place inside the refrigerator.
3. Marinate for at least 3 hours.
4. Skewer the marinated pork in bamboo skewers.
5. Prepare the basting sauce by combining all the basting sauce ingredients in a bowl. Mix
well and set aside.
6. Heat-up the grill. Grill the pork barbeque for 2 minutes.
7. Baste the top part using a brush and then turn it over. Baste the top again. Continue to
grill one side for 2 to 2 ½ minutes while basting every time its flipped until the BBQ is
done.

*Note: The enumerated amount of ingredients is expected to yield around 12 sticks of Pork
Barbeque.

In order to ensure that the proposed venture is profitable and in line with the
organization's objectives, screening is necessary throughout the development process to see if
the market has changed in its acceptability of the concept, ingredient availability, and
regulatory factors. Given this, we have compiled a series of questions for the processing of
screening concepts. These include:

 Who is the target demographic?  Where will the product be available?

 How will the consumer benefit from it?  How will people find out about the
 Who is the competition? product?
 How is the product different?  What will the price be?

Through careful planning and research, we have taken the aforementioned concepts into
consideration, with Snackita being set to target people of all ages with a particular focus on
big households who do not have the time, capabilities, or means to make the offered Filipino
food products. This can be a huge help for possible consumers in regards to having access to
both sweet and savory products in easy-to-prepare formats so that everyone can satisfy their
appetites and bring their favorite Filipino snacks straight into their homes.

Given that the bulk of people is still subjected to quarantine rules, they will be unable to seek
out food vendors or available kiosks, thereby eliminating our main source of competition,
particularly in our chosen locality. Although there are still food giants that offer the same
menu as us, our distinguishing feature would be the homey feel of our business, as well as our
one-of-a-kind recipes, which would provide a unique experience from any other well-known
brand.

Design Brief

Criteria for evaluation Criteria for evaluation

The
Design
Process
Marketing and product
launch Prototype development

Production of product

Once the formulations and prototypes have been validated, combined with the completion
of transactions with our suppliers, a limited run of production and marketing tactics may
proceed, which will then be updated and further adjusted based on the gathered data to be
assessed following the whole process. This would also set the starting price points for our
food products, as well as any trade discounts that might be available. Descriptions and other
details would be made available through our social media accounts throughout the whole
operation.

We have also established an evaluation criteria for the consumer testing portion which, would
serve as a guide in the formation of our products to ensure that they meet the needs outlined
in the design brief, guaranteeing high-quality goods and services.

Type of Criterion Example

Product evaluation criteria
Processing evaluation
criteria
Marketing evaluation
criteria
Financial and
environmental evaluation
criteria
Government legislation and
Food Standards Code
evaluation criteria
 Will the flavor match the expectations that consumers have
about Filipino comfort food?
 Will the taste be satisfactory?
 Will the product have a long enough shelf life without
refrigeration?
 Will the packaging be bright and clever enough to catch the
consumer’s attention?
 Is the product able to be differentiated from competitors on
flavor or appearance?
 Will the product be able to be made using current processing
equipment already in use?
 Will the ingredients be available on a consistent basis?
 Will the product be able to be made within quarantine
regulations?
 Can the product be transported in the current fleet of vehicles?
 Can the product be priced to make a profit but be competitive?
 Can the packaging be recycled?
 Can the product be promoted online?
 Can the product be made without increasing the investment
required to buy equipment?
 Do local suppliers have the capacity to consistently provide
enough ingredients?
 Will the product be able to meet regulated government standards
on food safety?

e. Distribution logistics

Snackita will initially operate home-based, and use social media (e.g., Facebook and
Twitter) to showcase our menu for ease of browsing and ordering. Furthermore, every
customer will have the option to pick-up their order or have it delivered directly to their
doorstep. Once Covid regulations loosen, our products would be made available at a physical
branch and local fairs on some occasions.

f. Regulatory and other compliance issues

In compliance with regular business regulations, we would be registering under the

Securities and Exchange Commission (SEC) as a partnership in order to ensure that our brand
is available for commercial use and that no other entity may legally use our business name
anywhere in the Philippines.

Snackita would not be hiring full-time employees for the first few years of operations,
however, we would provide the necessary benefits such as the Social Security System (SSS)
compensation which ensure that hired employees or laborers are covered by viable tax-
exempt social security service and protection against the hazards of disability, sickness,
maternity, old age, death, and other possible contingencies when we begin to do so. With that
thought, we would also be submitting a registration form under PhilHealth for the employees’
health insurance and Pag-IBIG to guarantee employees have access to certain loans and
programs that support housing, property, and financial needs. Once the business hires five or
more employees, we would be registering with the Department of Labor and Employment
(DOLE).

As for taxation purposes, we would be filing for registration under the Bureau of Internal
Revenue (BIR), which requires the compilation of the Certificate of Business Name
Registration from the DTI, Articles of Partnership, and Community Tax Certificate. Moreover,
we would be securing registration with the Local government, which includes a Mayor’s
permit and a Barangay business permit as mandated by the Philippine law.

Lastly, Snackita would be applying for a sanitary permit or food safety certification to ensure
that production operations would follow the mandated food safety protocols as expected by
professional standards in order to prevent, eliminate or reduce risks to consumers.

4. Market Plan

a. Market Analysis, which includes demand and supply vis-a-vis competitors

Considering that food items not commonly seen in fast-food establishments or other
large franchises are in high demand in a market where many are forced to choose from
limited menus with inflated prices due to COVID-19 restrictions, it is reasonable to tap into
the food industry, especially since food expenditure has always been a top priority here in the
Philippines.

In addition, according to a recent article by the Philippine Star (PhilStaR), comfort food and
similar meals that uplift moods are among the most in demand commodities in this time of
pandemic. This was further emphasized by Martin Pasco, a global food and drink analyst at
Mintel, who mentioned that more consumers want foods to improve their moods amid anxiety
caused by COVID-19.

In terms of competition, we would be mainly confronting street food vendors who offer the
same specialties as ours. However, these would be reduced due to COVID-19 thus, giving us
a wider available market audience.

Following that thought, we have decided to pursue the development of a readily accessible
menu of Filipino comfort food with our brand’s own personal twist, consisting of Pancit
Bihon, Ihaw-ihaw and Filipino rice-sweets or “Kakanin” under the name “Snackita.”

b. Marketing and Sales Strategies

Should the market test prove successful, the product would be ready for
commercialization. During this process, it is important for consumer concerns during test
marketing to be taken into consideration, and a second test may be undertaken if necessary.
 As for the product promotion itself, Snackita aims to commit to the following strategies:

Social media Utilize sales Adapt to trends Direct Selling to

campaigns promotions or changes Consumers

Utilize social media Make use of Take advantage of Personally reach out
platforms (i.e discounts and limited related pop-culture to possible
Instagram, TikTok, time offers to references or any customers,
Facebook, etc.) and increase engagement popular media that particularly from
launch among consumers as can attract attention friends and family.
advertisements to it spreads through to the business. Food Ask them to help
reach a wide word-of-mouth, on trends should also be encourage people to
audience. the theory that considered to hype try the brand’s
customers are eager the brand’s products. products.
to share news of a
good deal.

c. Product Characteristics or features

What makes Snackita’s products unique aside from its distinctive taste and tesxture is
its attractive packaging, enabling customers to experience a luxurious feel while consuming
cheap and typical Filipino comfort food. This is a notable competitive feature since aesthetic
serves as an advantage in market penetration.

d. Pricing Policy

Snackita will adopt the differing price based on the specific food selection. As such,
below is the pricing scheme that will be adopted:

Food Product Price (Peso)

Pancit Bihon
- Single order 50
- Small bilao (7-8 people) 375
- Medium bilao (9-10 people) 475
- Large bilao (13-15 people) 575
- Extra large bilao (16-17 people) 725
- Maximum bilao (18 people) 775
Ihaw - Ihaw (min. Order: 10-30 pieces)
- Isaw-isaw 10/stick
- Pork barbeque 23/stick
e. Sales Projections

Quantity per Year 1

Product Price
Month Qty (Units) Peso
Pancit Single 50 20 (12%) 240 12,000
Pancit Small 375 15 (9%) 180 67,500
Pancit Medium 475 10 (6%) 120 57,000
Pancit Large 575 5 (3%) 60 34,500
Pancit Extra Large 725 3 (2%) 36 26,100
Pancit Max. 775 1 (0.61%) 12 9,300
Isaw 10 50 (30%) 600 6,000
Pork Barbeque 23 60 (37%) 720 16,560
Total 164 1,968 228,960

Year 2 Year 3 Year 4 Year 5

Qty Qty Qty Qty
Peso Peso Peso Peso
(Units) (Units) (Units) (Units)
264 13,200 290 14,500 319 15,950 351 17,550
198 74,250 218 81,750 240 90,000 264 99,000
132 62,700 145 68,875 160 76,000 176 83,600
66 37,950 73 41,975 80 46,000 88 50,600
40 29,000 44 31,900 48 34,800 53 38,425
13 10,075 14 10,850 15 11,625 17 13,175
660 6,600 726 7,260 799 7,990 879 8,790
792 18,216 871 20,033 958 22,034 1,054 24,242
2,165 251,991 2,381 277,143 2,619 304,399 2,882 335,382

*Note: There will be a 10% increase in the quantity of products to be sold as well as its price.

5. Financial Plan

a. Start-up Summary

Expenses (Pancit 15 Scoops Pancit

Cost per month Year 1
Bihon) Bihon
1lb Pancit bihon Rice 45.00
1092.15 13105.80
Noodles
½ kg Pork cut 170.00 4125.90 49510.80
¼ kg Lechon baboy 150.00 3640.50 43686.00
¼ kg Chicken breast 42.50 1031.48 12377.70
1 cup Carrot 10.00 242.70 2912.40
½ kg Cabbage 73.00 1771.71 21260.52
1 pc. Onion 33.33 808.92 9707.03
½ Garlic 2.00 48.54 582.48
1 pc. Chicken cube 8.50 206.30 2475.54
5 tbsp. Soy sauce 3.40 82.52 990.22
TOTAL 537.73 13,050.72 156,608.49
 Expenses (Isaw) 10 Isaw Sticks Cost per month Year 1
450 g Chicken
18.00 90.00 1080.00
intestines
3 g Annatto powder 0.57 2.85 34.20
5 cloves of Garlic 3.00 15.00 180.00
2 Bay leaves 0.20 1.00 12.00
1 tsp. Peppercorn 8.26 41.30 495.60
30ml Soy sauce 1.38 6.90 82.80
60ml White vinegar 2.35 11.75 141.00
60g Brown sugar 2.70 13.50 162.00
30g Banana ketchup 1.88 9.40 112.80
TOTAL 38.34 191.70 2300.40

Expenses (Pork 10 Pork Barbque

Cost per month Year 1
Barbeque) Sticks
1 kg Pork shoulder 200.00 1,200. 14,400.00
4 tbsp. Knorr liquid
15.56 93.36 1,120.32
seasoning
5 pcs. Calamansi 6.00 36.00 432.00
¾ cup Banana Ketchup 6.00 36.00 432.00
5½ tbsp. Soy sauce 3.48 20.88 250.56
2½ tbsp. Brown sugar 1.19 7.14 85.68
2 tsp. Garlic powder 1.82 10.92 131.04
2 tsp. Vegetable oil 2.03 12.18 146.16
TOTAL 236.08 1416.48 16997.76

Expenses (Equipment) Cost Year 1

Barbeque grill 1,800.00 1,800.00
Charcoal 300.00 3,600.00
Wok 1,199.00 1,199.00
Stainless Ladle 135.00 135.00
Casserole 230.00 230.00
Chopping Board 250.00 250.00
Bowls 110.00 110.00
Plate 95.00 95.00
Kitchen knife 1,399.00 1,399.00
Tongs 150.00 150.00
TOTAL 5,668.00 8,968.00

Expenses (Operations) Cost Year 1

Permits and licenses 1,500.00 18,000
Utility 1,100.00 13,200
TOTAL 2,600.00 31,200.00

Expenses (Packaging) Cost/pc Cost per month Year 1

Bilao 9” 9 180 2160
Bilao 12” 14 210 2520
Bilao 14” 16 160 1920
Bilao 15” 23 115 1380
Bilao 16” 25 75 900
Bilao 18” 34 34 408
Box packaging 10 110 1320
TOTAL 884 10,608