UNLIMITED SOUP: A FEASIBILITY STUDY

BY:

LYKA ISABEL P. FRANCISCO

NEAZYL MAE P. JADAUSAN

JUEL THRAE CARLOS D. LOMUGDANG

LANCE CHRISTOPHER C. BIÑGIL

FELICIANO C. JAMELA III

A FEASIBILITY STUDY SUBMITTED TO MR. JESUS M. FABIA OF COLLEGE OF

THE BUSINESS AND ACCOUNTANCY, NOTRE DAME OF MIDSAYAP

COLLEGE MIDSAYAP, COTABATO IN PARTIAL FULFILLMENT

OF THE REQUIREMENTS FOR THE COURSE

DECEMBER 2022

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 Table of Contents
Title Page i
Approval Pageii
Executive Summary 4
Major Assumptions 4
Rationale 7
Objectives 7
Scope and Limitations 8
Bases of the Project Evaluation 8
Key Success Factors 8
Competitive Edge 8 Strategies and Approaches 9
Risk and Challenges 9
Market Study 10
Products and Services 10
Market Size and Trends 10
Target Market and Market Selection 11
Customer Analysis 12
Demand and Supply Analysis12
Technical Aspects 13
Project Location 13
Physical Facilities 14
Skills Requirements 15
Process Involved 16
Supplies of Raw Materials 18
Technology Position 18
Management Aspects 18
Type of Organization 18
Personnel 19
Projected Salary 20
Projected Benefits
Management Proposal
Company Policies
Job Title, Job Description, and Job Specification 20
Working Schedule
Financial Aspects 21
Assumptions of the Study 21
Financiers
Project Cost 23
Ratio Analysis26
Socio-economic and Environmental Aspects 33
Economic-demographic variables 33
Political legal variables 33
Socio-cultural variables 33
Social impact 34
Environmental Mitigating Measures 34

2
 Compliances with existing laws 34
Multiplier effects 34
Conceptual framework 35
Conclusions 35
Annexes 36
Recommendations 35
References 37
Curriculum Vitae 38

3
 Executive Summary

The proposed project is a soup business to be established at Poblacion 8,

Midsayap, Cotabato. The project offers three kinds of soup, Beef Batchoy, Balbacua, and

Beef Pares. The type of organization will be a sole proprietorship. The initial investment

of the proposed business amounts to Php250,000. The business owner will also be

responsible for managing it and will hire persons for assistance.

Major Assumptions

The proposed business aimed to integrate the love of soup among Filipinos,

specifically in the municipality of Midsayap, with our idea for a business that would aim

to close the gap by providing the needs.

Market assumptions

As the proponents observed, some soup business establishments are not appetizing

enough to fulfill the customer’s needs. With this, they have decided to create a soup

business to fulfill the costumer’s cravings. Our product (soup) has a unique taste that will

satisfy the customers’ cravings, especially our hidden gem, our very own crab paste.

When the customers enter the store, they immediately smell the sensational aroma

of the mouth-watering product. The products that are being offered are at a reasonable

price that the customers can afford. The target market for this business is mainly students,

day and night shift workers, and some residents of Poblacion, Midsayap. The business

will open from 8:00 in the morning to midnight to cater not only to students but also to

4
those workers on the night shift. On the other hand, the business will engage in social

media marketing.

The proposed project will be viable since the area is accessible to many residents

of the locality, especially those of our target market.

Technical Assumptions

The proposed business will be located at Poblacion 8, Midsayap Cotabato, as it is

easily accessible to the target market. The business will have different types of equipment

used in production and other aspects regarding bringing the raw materials into a finished

product ready for sale to customers. The ingredients for the products and other materials

to support the business are readily accessible in the market that the business can acquire

at a reasonable cost.

Management Assumptions

The proposed business will be a sole proprietorship as the owner will run the

business and be responsible for hiring employees to help run the business. The business

establishment will be named SOUPTASTIC. The business will hire five (5) workers:

Cashier, Cook, Server, Dishwasher, and a part-time bookkeeper. The proposed business

will operate from Monday to Sunday and follow regulated laws and policies as mandated

by the government where it is located. The employees will receive a salary on a minimum

wage basis and benefits prescribed by the government in order to keep them motivated.

5
Financial Assumptions

The Initial capital of the proposed business is ₱250,000.00 to pay for the salaries,

monthly rentals, supplies, permits and licenses, and other tools and equipment that will be

used in the operation of the business. The following assumptions are also considered:

1. Raw materials for menus and beverages are purchased twice a week.

2. Inventory valuation used is First-in, first-out method (FIFO).

3. Purchases are on a cash basis.

4. The building will be rented at 10 payables at the beginning of each month.

5. All sales are made in cash.

6. Sales of food and beverages are expected to increase by roughly 30% each year.

7. Purchases are expected to increase by 15% each year.

8. All expenses are expected to increase by 20% yearly except for advertising

depreciation, permits and licenses, and rent.

9. Taxes are paid in the succeeding year.

Socio-Economic Assumptions

The proposed business is located in an area where the province's major

commercial and trading center is located. It has a significant or high demand for leisure

places such as pub stores, hospitals, institutions, and other workplaces. Thus, the business

will comply with government requirements such as permits and licenses to operate. The

business will follow the regulations set in accordance with the building code of the

6
Philippines. It will also actively participate in other related activities that will create

positive impact to the municipality’s economy. Most importantly, the business will

religiously pay taxes to contribute to the community’s welfare. It will provide

employment opportunities for those out-of-school youth and those seeking employment.

Rationale

This study is made in order to support our intention of putting up a business that

would meet the satisfaction of our target consumers in the food industry. The planned

business establishment, which will be named Souptastic, is aimed to provide the market

with Filipino soups which are prepared with special and unique ingredients and cooked in

a modern innovative style of culinary art. It is envisioned that with our products and

services, our target market would have their discriminating taste be fully satisfied and

delighted with our products and services.

Since the Midsayap is a booming Municipality, we expand our mind to create a

business to help the community to meet their satisfaction with our soup. if there in the

mood for some healthy comfort food or just crave a warm meal the Souptastic may be

precisely what their need.

we are not just to create profits we are giving you a good and providing quality services

that you can experience.

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Objectives of the Proposed Business

The proposed business aims explicitly the following:

a. To know how to prepare a feasibility study.

b. To determine if the proposed project is feasible.

c. To determine if the project is suitable for the site and its location.

d. To identify if the project is capable of growing and possible expansion of the

business.

e. To find out if the proposed project is viable and sustainable.

Scope and Limitation

The study will focus on the food quality and customer service and the income of

the said business. The study was conducted from August to December of the school

year 2022 – 2023 and conducted at Poblacion 8, Midsayap, Cotabato,

Bases of Evaluation of the Project

Key Success Factors

The particular existing business that the proponents aim to emulate is the Triple

Aj batchoyan, and Radney’s which offer quality service of soup at an affordable price in

Midsayap, Cotabato. Through time they have maintained good quality food and services

for their customers. This business is worth emulating as they maintain their business

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despite rising competitors. The production of this business is different from theirs

because souptastic will offer quality food with attributes that include appearances and

tastes that we offer that are different from our competitors.

A. Competitive Edge

Despite the rising numbers of competitors in the soup business within the

locality, this business has an edge regarding the quality of food and its unique

features. The soup and customer service are fast without compromising the

quality of the service. Also, it offers Batchoy, Balbacua, and Beef pares these are

the three types of soup that the business will offer. These strategies are deemed

appealing to customers and will serve as their edge over others.

B. Strategies and Approaches

Strategies and approaches should be considered to ensure the success of

the proposed business. Marketing strategies should be emphasized by advertising

our product through social media platforms such as Facebook, Twitter, and

Instagram to lure people into eating at our establishment and inform customers of

any updates related to the business operations. It will serve as a key for the

proponent to encourage prospective customers to try and purchase the product

offered. Customer feedback is noted and will be taken into consideration. Their

suggestions, comments, and recommendations will be used to improve the

business. The business owner and employees shall build a good relationship with

the customers and establish loyalty to the business.

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 C. Risk and Challenges

Some common risks involved in the food business are customer taste

changes and compromised quality of ingredients and materials. Contamination

and poisoning of ingredients and end products are also problems that the business

will deal with. The business will also experience the possibility of overproducing

products and staleness.

As the business will open from 8:00 am to 12:00 AM, the workers will

apply sanitation procedures to avoid contamination or spreading of an existing

virus. The cook will prepare products according to the estimated daily volume of

sales. Checking of raw materials will be done including the expiration dates of the

prepacked ingredients.

Shortage of supplies. The business should depend on more than one

supplier. The business has three suppliers: the K-mart, public markets, and Saver's

Mart. The business must have a backup supplier when a shortage occurs.

Market Study

Product and Services

The proposed business will offer soups such as Batchoy, Bulalo, and Beef Pares.

Batchoy is a Filipino noodle soup made with round noodles, beef loin, chicken stock,

crushed pork cracklings, and pork offal. Bulalo is a clear broth soup made from beef

shanks and bone marrow cooked until the collagen and fat have melted. Typical

ingredients include leafy greens, grilled corn, scallions, onions, garlic, ginger, and fish

sauce. And the Pares, also known as beef pares, is a Filipino dish consisting of a bowl of

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clear soup, some garlic fried rice, and a serving of braised beef stew. Considering the

customer’s health, it will be the customers’ right to decide whether they will have a

specific demand for the product like add-ons such as Chicharron, Boiled Eggs, and Extra

Spiciness or Extra Greens to their soup. The products will be priced at Php65.00 per

serving plus add-ons prices may vary.

A. Market Size and Trends

The target market for the proposed business is mainly students, day and night shift

workers, and some residents of Poblacion Midsayap. The proposed business Consumers

typically consume soup as an appetizer or snack or sometimes as a complete meal.

As such, instant grab-and-go soups are expected to dominate the soup market in

the next few years. They fit in perfectly with other food trends that attribute convenience

as a key sales driver because they are simple to prepare.

However, food producers are also introducing products in response to consumer

demand for better, high-quality ingredients, and ease of preparation. Some food

producers have been compelled to reformulate their products to give these health-

conscious consumers appealing options by combining convenience and quality.

B. Target Market and Market Selection

Based on the analysis of the responses in the interviews that we have

conducted, we decided that the target market for the proposed business is mainly

comprised of the students, day and night shift workers, and the residents of

Poblacion, Midsayap. These sectors of the community are the ones who usually

11
 dine out because of the nature of their daily activities which render them lacking

of time to cook their own food at home. Moreover, they are the ones who are

capable to spend money to buy foods and eat outside their residences.

C. Customer Analysis

The bond or relationship that exists between customers and business

owners has an impact on how the behavior of the customers that make them

decide where to shop and how much they would appreciate the goods and services

that are offered to them. Their dining habits can be used to predict how well the

food will be appreciated compared to the ones offered by others. Our target

market, for example the students and the day and night shift workers, are known

to patronize restaurants and eateries that offer excellent quality food which are

prepared with unique ingredients and cooked in innovative modern style of

culinary art.

D. Demand and Supply Analysis

The supply of the product should be enough to sustain the demand of the

prospective consumers, The demand for hot soup dishes, such as beef pares,

balbacua, and batchoy. Have increased in the booming municipality of Midsayap

particularly during early in the morning until late night. The residents of Poblacion,

Midsayap especially the employees, student, day and night shift workers are fond

of dining out. They usually, the supplies needed for our product. Such as beef,

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 spices and vegetables are all abundantly available in the public market of Midsayap

at a fair price.

Technical Aspect

A. Project location

The proposed business will be located at NDV building Poblacion 8, Midsayap,

Cotabato beside Suzuki Midsayap. It will incur a monthly rental fee of Php 10, 000.00.

The location is accessible since it is along the national highway of Midsayap leading to

the different barangays in the Poblacion area.

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B. Physical Facilities

The proposed business will be located in 30 square meters building which we

will be renting to serve as the physical store/eatery.

Furnitures and Fixtures

This is Floor plan

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C. Skills requirement

Manager/Cashier

 Has good communication skills.

 Has strong leadership within his/her staff and can build a good rapport
among them.
 Can deal with changes effectively and efficiently.
 Has expertise in the field in which they work.

Cook

 Ability to skillfully multitask.

 Has a good time management.
 Has a real desire to be the person who makes peoples dining experiences
special.
 Who is Organized, Creative, Professional, and can handle criticism well.

Server

 Answering questions about the menu and can provide food or drink
suggestions.
 Clearing and setting tables
 Lifting and carrying heavy loads

Dishwasher

 Ability to understand and follow directions.

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  Ability to understand and meet restaurant standards for health, safety, and
excellence.
 Ability to work effectively with kitchen staff.
 Ability to remain alert and focused in noisy and fast-paced environments.

D. The process involved –Product 1. Beef pares

List of ingredients

 2 lbs. Beef cubes

 1 pc Knorr Beef cube
 2 pcs Star anise
 ¼ cup Brown sugar
 1 tsp Scallions
 2 thumbs Ginger
 5 cloves Garlic
 1 pc Onion chopped
 6 tsp Soy sauce
 3 tsp cooking oil
 ½ tsp Salt and black pepper
Procedure

1. Heat oil in a cooking pot or pressure cooker. Saute onion, garlic, and ginger.
2. Add the beef once onion softens. Cook until light brown.
3. Pour soy sauce and water. Stir.
4. Add Knorr Beef cube and star anise. Cover the pot or pressure cooker and cook
it until the beef softens.
5. Add brown sugar and season with Salt and Pepper. Cook until the sauce reduces
a bit.
6. Top with chopped scallions and crushed Garlic and serve.

Product 2. Beef Batchoy

List of ingredients

 4 cups of water

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  1 ½ Knorr Beef Broth Cubes
 1/8kg Beef meat sliced
 1/2kg Batchoy Noodle
 1 pc egg, hard-boiled
 1 tsp garlic, fried
 ½ tsp spring onion
 ¼ cup chicharron, crushed

Procedure

1. Get a pot and fill it with water. Bring to a boil before dropping in the Knorr Beef
Broth Cubes. Stir to dissolve.
2. Add the Beef meat and let this boil, then turn the heat down to simmer until
tender. Remove the meat and reserve the broth. Remove the impurities and scum
that appear on the top of the boiling liquid.
3. Arrange the noodles in a bowl. Top with meat strips, eggs, garlic, spring onion
and chicharron.
4. Pour in the hot broth and serve.

Product 3. Balbacua

List of ingredients

 1 tbsp cooking oil

 1 pc onion, quartered

 3 cloves garlic, crushed

 1 thumb -sized ginger, peeled and cut into strips

 2 pcs Knorr Beef Broth cubes

 3/4 kilo Beef skin, cut into serving portions

 1 pc star anise

 5 cups water

 1/2 cup ground peanuts

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  1 tbsp spring onions

Procedure

1. Begin by getting your large pot nice and hot over medium heat. Pour some oil and
sauté the onions, garlic, and ginger.

2. Add water, star anise and Knorr Beef Broth Cubes. Next, gently add the Beef
skin, and let this boil, then lower the heat to simmer until meat is tender.
Remember to remove the scum and impurities that rises to the top of the liquid.

3. Stir in the peanuts and garnish with chopped spring onions and serve.

E. Supplies of raw materials

Raw materials, particularly meat, will be sourced from a permanent and reliable
supplier, Embing Jamela Meat shop and Samson vegetable shop, located at Midsayap
Public Market. The business will purchase raw materials twice a week via delivery
services offered by the supplier every Monday and Thursday to ensure that our
product’s ingredients are available on our operating days.

F. Technology position

Our business will use modern technology, particularly for the purpose of
shortening time in the preparation of our product. Such as freezing and refrigerating
highly perishable items, such as meat and vegetables, to ensure that our products stay
at their best quality. Moreover, our business will also use social platforms or the
internet to brand and advertise our product and to get feedback and reviews from our
valued customers through online platforms to continuously improve our products and
services. On the other hand, the business plans to collaborate with the existing online
food delivery system if some consumers want their food delivered to their homes.

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 Management Aspect

A. Type of Organization

Souptastic is a soup shop that operates as a sole proprietorship. Mrs.

Sandra Y. Palomata owns the business. As a business owner, Mrs. Palomata
controls all decisions for capital, costs, liabilities, and revenue.

Figure 1. Organizational Chart

Manager/Cashier

Cook Server Dishwasher

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 The organizational chart of Souptastic shows the flow work of information that
starts from the manager of the business, which is responsible for the distribution of works
information, then to the accountant/bookkeeper, who is in charge of the financial aspects
of the business, and lastly, to the cook, server, and dishwasher. The proponent has
chosen to have this kind of organization for a small business because it only requires a
straightforward plan decision. There are only five (5) different types of employees in this
company.

B. Staffing

C. JOB TITLE, JOB DESCRIPTION AND JOB SPECIFICATION

JOB TITLE JOB DESCRIPTION JOB SPECIFICATION

Cashier  In charge of the cash  Must be a business

possessions and other management graduate.

accountable forms of the  He or she is the one who

business will manage the business

 In charge of getting and the one responsible

customer’s payment in keeping records and

transaction

COOK  He will be in-charge in the  Must have experience in

cooking process cooking

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  Physically and mentally

fit

SERVER  In-charge of Bussing and  Must have experience as

bringing of meals in the a waiter.

tables.  Physically and mentally

fit.

DISHWASHER  In-charge of washing the  Physically and mentally

utensils fit

 Maintain supplies in the

kitchen

Projected Salary
Position Daily salary # Personnel Monthly Annual salary

salary

Cashier 350 1 10,500 127,750

Dishwasher 320 1 9,600 116,800

Cook 380 2 22,800 277,400

Server 320 2 19,200 233,600

Financial aspect

A. Assumptions of the study

1. The start-up capital for the proposed business is P 250,000.

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2. Raw materials for menus and the beverages are purchased twice a week.

3. Inventory valuation used is First in First out method (FIFO).

4. Purchases are on cash basis.

5. The building is to be rented at 10 payables in the beginning of each month.

6. All sales are made for cash.

7. Sales food and beverages are expected to increase at roughly 30%through each year

period.

8. Purchases are expected to increase 15% each year.

9. All expenses are expected to increase 20% each year except for advertising

depreciation, permit, licenses and rent.

10. Taxes are paid at the succeeding year.

PROJECT COST      

Pre-operating cost  

Legal permits/ licenses 5,200

Non-Current Asset  

Kitchen Equipment 21,000  

Furniture and Fixtures 39,000 60,000

Initial Working Capital  

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 Inventories - raw materials for 10 days 31,714  

Salaries for 1 month 65,000  

Production cost  

Store supplies 13,600  

Utility expense (for 1month) 3,000  

Rental for 1 month 5,000 118,314

TOTAL PROJECT COST 183,514

INITIAL INVESTMENT 250,000

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 SOUPTASTIC
Projected Income Statement
For the year ended (3-year period)

Notes Year 1 Year 2 Year 3

Sales 1 ₱ 2,988,000 ₱ 3,197,160 ₱ 3,420,961
Less: Cost of Sales 2 1,815,569 1,887,647 1,962,609
Gross Profit ₱ 1,172,431 ₱ 1,309,513 ₱ 1,458,352
Less: Admin & Operating Expenses 3 584,060 616,719 651,420
Net Profit ₱ 588,371 ₱ 692,793 ₱ 806,932

Ratio Analysis (Income Statement):

Net Profit Margin (NPM %) 19.69% 21.67% 23.59%
Gross Proft Margin (GPM %) 39.24% 40.96% 42.63%

SOUPTASTIC
Projected Statement of Financial Position
As of the year ended (3-year period)

Assets Notes Year 1 Year 2 Year 3

Current Assets:
Cash ₱ 693,529 ₱ 1,392,817 ₱ 2,206,091
Inventory 95,143 98,948 102,906
Total Current ₱ 788,671 ₱ 1,491,765 ₱ 2,308,997
Non Current Assets:
Furniture and Fixtures (net) 4 ₱ 31,200 ₱ 23,400 ₱ 15,600
Equipment (net) 4 18,500 16,000 13,500
Total Non-current Assets 49,700 39,400 29,100
Total Assets ₱ 838,371 ₱ 1,531,165 ₱ 2,338,097
Liabilities & Equity
Palomata, Capital ₱ 838,371 1,531,165 2,338,097
Total Equity 838,371 1,531,165 2,338,097
Total Liabilities & Equity ₱ 838,371 ₱ 1,531,165 ₱ 2,338,097

₱ - ₱ - ₱ -

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 SOUPTASTIC
Projected Statement of Financial Position
As of the year ended (3-year period)

Assets Notes Year 1 Year 2 Year 3

Current Assets:
Cash ₱ 693,529 ₱ 1,392,817 ₱ 2,206,091
Inventory 95,143 98,948 102,906
Total Current ₱ 788,671 ₱ 1,491,765 ₱ 2,308,997
Non Current Assets:
Furniture and Fixtures (net) 4 ₱ 31,200 ₱ 23,400 ₱ 15,600
Equipment (net) 4 18,500 16,000 13,500
Total Non-current Assets 49,700 39,400 29,100
Total Assets ₱ 838,371 ₱ 1,531,165 ₱ 2,338,097
Liabilities & Equity
Palomata, Capital ₱ 838,371 1,531,165 2,338,097
Total Equity 838,371 1,531,165 2,338,097
Total Liabilities & Equity ₱ 838,371 ₱ 1,531,165 ₱ 2,338,097

₱ - ₱ - ₱ -

SOUPTASTIC
Projected Statement of Changes in Equity
For the year ended (3-year period)

Year 1 Year 2 Year 3

Capital Balance, Beginning ₱ 250,000 ₱ 838,371 ₱ 1,531,165
Additional Investment - - -
Net Income/ Loss 588,371 692,793 806,932
Capital Balance, Ending 838,371 1,531,165 2,338,097

#REF! #REF! #REF!

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RATIO ANALYSIS

PROFITABILITY RATIO
Net Profit Margin
Year Net Profit Net Sales Net Profit Margin
Y1 588,371 2,988,000 19.69%
Y2 692,793 3,197,160 21.67%
Y3 806,932 3,420,961 23.59%

Gross Profit (GP) Ratio

Year Gross Profit Net Sales GP Ratio
Y1 1,172,431 2,988,000 39.24%
Y2 1,309,513 3,197,160 40.96%
Y3 1,458,352 3,420,961 42.63%

Return on Assets
Year Ave. Total Assets Income Return on Asset
Y1 838,371 588,371 70.18%
Y2 1,531,165 692,793 45.25%
Y3 2,338,097 806,932 34.51%

Return on Investment (ROI)

Year Income Investment ROI
Y1 588,371 250,000 235.35%
Y2 692,793 250,000 277.12%
Y3 806,932 250,000 322.77%

LIQUIDITY RATIO
Inventory Turn-over
Year Cost of Sale Ave. Inventory Return on Asset
Y1 1,815,569 95,143 19.08
Y2 1,887,647 97,045 19.45
Y3 1,962,609 100,927 19.45

Inventory Weeks
Year Weeks in a Year Ave. Inventory Inventory in Weeks
Y1 52 19.08 2.72
Y2 52 19.45 2.67
Y3 52 19.45 2.67

Cash Turnover Ratio (Net Sales/ Cash Balance)

Year Net Sales Cash Balance Cash Turnover
Y1 2,988,000 693,529 4.31
Y2 3,197,160 1,392,817 2.30
Y3 3,420,961 2,206,091 1.55

Payback Period
Total Investment: ₱ 250,000
Year Sales Income Running Balance
Y1 2,988,000 588,371 - 338,371
Y2 3,197,160 692,793 - 1,031,165
Y3 3,420,961 806,932
Payback Period (Years) 0.51
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 1 - PROJECTED SALES
Year 1
Products
Sales Monthly
Items Price Daily Sales Annual Sales
(Daily) Sales
Batchoy 45 60 2700 81000 972,000
Balbacua 35 60 2100 63000 756,000
Beef Pares 20 60 1200 36000 432,000
Add ons: -
Chicharon 25 10 250 7500 90,000
Eye/Brain beef 15 30 450 13500 162,000
Egg 50 10 500 15000 180,000
Ginisang Bagoong 10 10 100 3000 36,000
Rice 100 10 1000 30000 360,000
Total 8300 249000 2,988,000

Year 2
Products
Sales Monthly
Items Price Daily Sales Annual Sales
(Daily) Sales
Batchoy 45 64.2 2889 86670 1,040,040
Balbacua 35 64.2 2247 67410 808,920
Beef Pares 20 64.2 1284 38520 462,240
Add ons: 0 -
Chicharon 25 10.7 267.5 8025 96,300
Eye/Brain beef 15 32.1 481.5 14445 173,340
Egg 50 10.7 535 16050 192,600
Ginisang Bagoong 10 10.7 107 3210 38,520
Rice 100 10.7 1070 32100 385,200
Total 8881 266430 3,197,160

Year 3
Products
Sales Monthly
Items Price Daily Sales Annual Sales
(Daily) Sales
Batchoy 45 68.694 3091.23 92736.9 1,112,843
Balbacua 35 68.694 2404.29 72128.7 865,544
Beef Pares 20 68.694 1373.88 41216.4 494,597
Add ons: 0 -
Chicharon 25 11.449 286.225 8586.75 103,041
Eye/Brain beef 15 34.347 515.205 15456.15 185,474
Egg 50 11.449 572.45 17173.5 206,082
Ginisang Bagoong 10 11.449 114.49 3434.7 41,216
Rice 100 11.449 1144.9 34347 412,164
Total 9502.67 285080.1 3,420,961 27
2 - COST OF SALES & ENDING INVENTORY

Year 1

Qty- Monthly
Items Cost Total Annual cost
Daily Cost

Meat 2 390 780 23,400.00 280,800

Meat skin 1 230 230 6,900.00 82,800
Ginger 1 78.52 79 2,355.60 28,267
Salt 1 25 25 750.00 9,000
Pepper 1 50 50 1,500.00 18,000
Lemon grass 1 50 50 1,500.00 18,000
Asuete powder 1 50 50 1,500.00 18,000
Garlic 1 50 50 1,500.00 18,000
Fish sauce 2 63.95 128 3,837.00 46,044
Onion 2 250 500 15,000.00 180,000
Star anis 0.5 100 50 1,500.00 18,000
Noodles 1 100 100 3,000.00 36,000
Cabbage 1 100 100 3,000.00 36,000
Soy sauce 1 150 150 4,500.00 54,000
Chicharon 1 250 250 7,500.00 90,000
Eye/Brain Beef 1 300 300 9,000.00 108,000
Egg 1 180 180 5,400.00 64,800
Ginisang Bagoong 1 100 100 3,000.00 36,000
Rice 0.1 2250 225 6,750.00 81,000
Total 3,171 95,143 1,222,711
Ending Raw Materials 95,143
Labor Cost (Note 2.1.A) 630,000
Production Overhead (Note 2.1.B) 58,000
Total Cost of Sales 1,815,569

28
2 - COST OF SALES & ENDING INVENTORY

Year 2
Qty- Monthly
Items Cost Total Annual cost
Daily Cost
Meat 2 405.6 811 24,336.00 292,032
Meat skin 1 239.2 239 7,176.00 86,112
Ginger 1 81.6608 82 2,449.82 29,398
Salt 1 26 26 780.00 9,360
Pepper 1 52 52 1,560.00 18,720
Lemon grass 1 52 52 1,560.00 18,720
Asuete powder 1 52 52 1,560.00 18,720
Garlic 1 52 52 1,560.00 18,720
Fish sauce 2 66.508 133 3,990.48 47,886
Onion 2 260 520 15,600.00 187,200
Star anis 0.5 104 52 1,560.00 18,720
Noodles 1 104 104 3,120.00 37,440
Cabbage 1 104 104 3,120.00 37,440
Soy sauce 1 156 156 4,680.00 56,160
Chicharon 1 260 260 7,800.00 93,600
Eye/Brain Beef 1 312 312 9,360.00 112,320
Egg 1 187.2 187 5,616.00 67,392
Ginisang Bagoong 1 104 104 3,120.00 37,440
Rice 0.1 2340 234 7,020.00 84,240
Total 3,298 98,948 1,271,620
Ending Raw Materials 98,948
Labor Cost (Note 2.1.A) 655,200
Production Overhead (Note 2.1.B) 59,776
Total Cost of Sales 1,887,64729
2 - COST OF SALES & ENDING INVENTORY

Year 3
Qty- Monthly
Items Cost Total Annual cost
Daily Cost
Meat 2 421.824 844 25,309.44 303,713
Meat skin 1 248.768 249 7,463.04 89,556
Ginger 1 84.92723 85 2,547.82 30,574
Salt 1 27.04 27 811.20 9,734
Pepper 1 54.08 54 1,622.40 19,469
Lemon grass 1 54.08 54 1,622.40 19,469
Asuete powder 1 54.08 54 1,622.40 19,469
Garlic 1 54.08 54 1,622.40 19,469
Fish sauce 2 69.16832 138 4,150.10 49,801
Onion 2 270.4 541 16,224.00 194,688
Star anis 0.5 108.16 54 1,622.40 19,469
Noodles 1 108.16 108 3,244.80 38,938
Cabbage 1 108.16 108 3,244.80 38,938
Soy sauce 1 162.24 162 4,867.20 58,406
Chicharon 1 270.4 270 8,112.00 97,344
Eye/Brain Beef 1 324.48 324 9,734.40 116,813
Egg 1 194.688 195 5,840.64 70,088
Ginisang Bagoong 1 108.16 108 3,244.80 38,938
Rice 0.1 2433.6 243 7,300.80 87,610
Total 3,430 102,906 1,322,484
Ending Raw Materials 102,906
Labor Cost (Note 2.1.A) 681,408
Production Overhead (Note 2.1.B) 61,623
Total Cost of Sales 1,962,60930
2.1 - Details of Labor Cost and Production Overhead

A. Labor Cost Annual Salaries & Wages Details

No. of
Positions Year 1 Year 2 Year 3 Employees Basic/ day Working time Monthly Rate
Cook 273,600 284,544 295,926 2 380.00 8hrs 22,800
Cashier 126,000 131,040 136,282 1 350.00 8hrs 10,500
Server 230,400 239,616 249,201 2 320.00 8hrs 19,200
Dishwasher 115,200 119,808 124,600 1 320.00 8hrs 9,600
Total 630,000 655,200 681,408 6 1,050.00 52,500

B. Production Overhead
Items Year 1 Year 2 Year 3
Utility expenses (Note B.1) 44,400 46,176 48,023
Store Supplies (Note B.2) 13,600 13,600 13,600
Total Production Overhead 58,000 59,776 61,623

B.1 - Details of Utilities:

YEAR 1 YEAR 2 YEAR 3
Utilities Monthly Annual Monthly Annual Monthly Annual
Water 700 8,400 728 8,736 757 9,085
Electricity 3,000 36,000 3,120 37,440 3,245 38,93831
Total 3,700 44,400 3,848 46,176 4,002 48,023
Note 4 - Non Current Asset

32
Kitchen Equipment Y1 Y2 Y3
Useful Life
Item Description Quantity Unit Price Amount
(years) Depreciation Book Value Depreciation Book Value Depreciation Book Value
Kitchen Equipment
Traditional Earthenware Stove 4 750 3,000 3
1,000.00 2,000.00 1,000.00 1,000.00 1,000.00 -
Freezer 1 18,000 18,000 12 1,500.00 16,500.00 1,500.00 15,000.00 1,500.00 13,500.00
Chiller 1 15,000 15,000 10 1,500.00 13,500.00 1,500.00 12,000.00 1,500.00 10,500.00
Large pots 3 998 2,994 3 998.00 1,996.00 998.00 998.00 998.00 -
Refrigerator 1 8,000 8,000 10 800.00 7,200.00 800.00 6,400.00 800.00 5,600.00
Large pans 3 998 2,994 3 998.00 1,996.00 998.00 998.00 998.00 -
Heavy-Duty Burners 3 1,664 4,992 5 998.40 3,993.60 998.40 2,995.20 998.40 1,996.80
Subtotal 21,000 2,500.00 18,500.00 2,500.00 16,000.00 2,500.00 13,500.00
Furniture and Fixtures
Useful Life
Item Description Quantity Unit Price Amount
(years) Depreciation Book Value Depreciation Book Value Depreciation Book Value
Counter 1 1,500 1,500 5 300.00 1,200.00 300.00 900.00 300.00 600.00
Tables 10 3,750 37,500 5 7,500.00 30,000.00 7,500.00 22,500.00 7,500.00 15,000.00
Chairs 100 100 10,000 5 2,000.00 8,000.00 2,000.00 6,000.00 2,000.00 4,000.00
Subtotal 39,000 7,800.00 31,200.00 7,800.00 23,400.00 7,800.00 15,600.00
TOTAL 60,000 10,300 49,700 10,300 39,400 10,300 29,100
B.2 - Details of Store Supplies
Item Description Quantity Unit Price Amount
Ladle 5 80 400
Cauldron 4 1,500 6,000
Plates 100 15 1,500
Glass 100 15 1,500
Bowls 100 20 2,000
Spoon 100 8 800
Fork 100 8 800
Charcoal 2 300 600
Total Kitchen Utensils (Expense) 13,600

33
C

SOUPTASTIC

Projected Statement of Financial Position

As of the year ended (3-year period)

   

   
Not
Assets es Year 1 Year 2 Year 3

  Current Assets:  
₱ ₱ ₱
Cash
  693,529 1,392,817 2,206,091
Inventory
  95,143 98,948 102,906
₱ ₱ ₱
Total Current
  788,671 1,491,765 2,308,997

  Non-Current Assets:  
Furniture and ₱ ₱ ₱
  Fixtures (net) 4 31,200 23,400 15,600
Equipment (net)
  4 18,500 16,000 13,500
Total Non-current
  Assets 49,700 39,400 29,100
₱ ₱ ₱
Total Assets    
  838,371 1,531,165 2,338,097

Liabilities & Equity  

₱
Palomata, Capital
  838,371 1,531,165 2,338,097
Total Equity
  838,371 1,531,165 2,338,097
Total Liabilities & ₱ ₱ ₱
   
Equity 838,371 1,531,165 2,338,097

34
    
₱ ₱ ₱
      -   -   -

Socio-Economic and Environmental Aspect

A. Economic demographic variables

The growing economy of Midsayap has a big impact why businessmen

invest here. It is because Midsayap is considered to be the Center of business that

will give economic benefits to the locals.

B. Political legal variables

The proposed project is subject to local registration for the operation of the

business. Permits, Certificates and license will be paid and renewed annually at

the bureau of Treasury, Rural Health Unit, Department of trade and Industry, and

bureau of internal Revenue of the municipality by paying appropriate fees, taxes

and other payables to the government will make the economy of Midsayap

prosper and will help realize the projects of the local government.

C. Socio cultural variables

35
 Midsayap has a large population with different tribes and beliefs most of

the people are ilonggo and Cebuano. In the terms of religion Catholics are greater

than those who are non-Catholics (Iglesia ni cristo, Assembly of God, Islam,

Baptist, Aglipayan church, Jehovah’s witnesses).

With these components decide to offer food that will be fit to the beliefs

and lifestyle of these religions.

D. Social impact

This venture is great help to the community because it brings comfort and

change of lifestyle of the locals. The proposed project will bring employment to

the locals and provide taxes that will help improve the economy of Midsayap.

E. Environmental mitigating measures

Based on the proponent’s observation and research it is concluded that the

area of the project ecologically progressive in terms of sanitation, the garbage will

be disposed of the segregated properly in accordance with the law to maintain

cleanliness and sanitation of the proposed area.

F. Compliances of existing laws

As stated in Food Safety Act 2013 (Republic Act No. 10611). An Act to

strengthen the Food Safety Regulatory System in the Country to Protect Consumer

Health and Facilitate Market Access of local foods and food products.

36
 Food and safety have a big grasp on our proper food serving, and for that

Souptastic has a solid network of meats and vegetables that are delivered fresh from

farmer or butcher to shop that is so we can ensure a clean and flavourful food.

Souptastic has a reputation for offering food that is clean and of high quality.

G. Multiplier effects

The project will make multiple benefits to the people of Midsayap with the

business employing some locals, generating revenue from it through government

fees, permits and taxes fee which will be used by the local government for its

projects. In turn, the clients who are locals can avail our service at more

reasonable price which can truly meet and even exceed their expectations. The

whole cycle or multiplier effect will benefit Midsayap largely.

37
H. Conceptual framework

Family
Improved
standard of living
Employment
Individual

Municipal

Project Taxes Comunity

Development
National

Consumer Meet the neds

Supply of
Trading Market
commodities
Supplier Additional Income

Conclusions and recommendations

People nowadays especially teenagers are very fond having fun and

hanging out during night time this conclusion is based on the data that we have

gathered through thorough deliberation and is based on the processes that we have

gathered our business is feasible and is ready to serve masses.

Having a nutritious diet has become fashionable in the current. Huge

amounts of junk food used to flood the market in the past, but as living standards

have improved, current consumers have grown weary of eating greasy foods and

now crave for the authentic flavor and taste of natural foods

Compared to other professions, Soup Business often involves a much higher

level of movement. You will typically spend your day walking, taking care of

various responsibilities for your firm, and running errands. Your general health

and energy levels may benefit from this.

38
Recommendations

Therefore, souptastic has a market for their hungry tummy with our

service from 8am till 12 midnight we can serve the late-night travelers not only

late-night but also during the daytime, this business has room to grow in the

competitive food market because of service oriented store and service crew.

The Philippine Plan of Action for Nutrition (PPAN) 2017–2022 shall

include the suggested measures to address the various forms of malnutrition. The

Local Government Unit of Midsayap, Cotabato, has been distributing extra milk

and eggs to 115 pregnant women in 57 barangays who are nutritionally at risk for

three (3) months in an effort to promote the health and nutrition of the

community. 400 children between the ages of 6 and 24 months who were

significantly and seriously wasted received multivitamins. 195 families with

39
 malnourished children aged 6-59 months received eggs, manna packets,

multivitamins, and a variety of vegetable seeds from the LGU. In addition, 131

youngsters who were severely underweight and wasted were given ready-to-cook

rice. Supplements for iron, folic acid, and other micronutrients were also offered.

XIII. Annexes

40
References

41
Gallu, Raul (2022). Value of Soup, Retrieved on October 25, 2022 from

Lutong Bahay Recipe (n.d). 9 of the Best Filipino Soups that are Popular in the Country,

Retrieved on October 25, 2022 from https://www.lutongbahayrecipe.com/blog/9-of-the-

best-filipino-soups-that-are-popular-in-the-country/

XV. Curriculum Vitae

42
 Name: Lyka Isabel P. Francisco

Birthday: December 13, 2000

Age:21

Address: Poblacion 4 Midsayap Cotabato

Nationality: Filipino

Religion: Roman Catholic

Email Address: Palomatalyka@gmail.com

Mother: Sandra Y. Palomata

Father: Edwin C. Francisco

Primary: Pilot Elementary

Junior High School: St Mary’s Academy

Senior High School: Notre Dame of Midsayap College

Tertiary: Notre Dame of Midsayap College

Course: Bachelor of Science in Business Administration Major in Financial Management.

43
 Name: Juel Thrae Carlos Lomugdang

Birthday: July 21, 1999

Age:23

Address: Balogo, Pigcawayan, Cotabato

Nationality: Filipino

Religion: Pentecostal

Email: Address: Juellomugdang1@gmail.com

Mother: Juliet D Lomugdang

Father: Elmer C Lomugdang

Primary: Presbitero Central Elementary School

Junior High School: Notre Dame of Pigcawayan Inc

Senior High School: Notre Dame of Midsayap college

Tertiary: Notre Dame of Midsayap college

Course: Bachelor of Science in Business Administration Major in Financial Management

44
 Name: Feliciano C. Jamela III

Birthday: July 28, 1997

Age: 25

Address: Poblacion 1, Midsayap, Cotabato

Nationality: Filipino

Religion: Roman Catholic

Email: Address: Danmerdomingo@gmail.com

Mother: Lislie C. Jamela

Father: Feliciano V. Jamela Jr.

Primary: Dilangalen Elementary School of Midsayap, North Cotabato

Junior High School: St Mary’s of Midsayap, North Cotabato

Senior High School:

Tertiary: Notre Dame of Midsayap College

Course: Bachelor of Science in Business Administration Major in Financial Management.

45
 Name: Lance Christopher C. Biñgil

Birthday: October, 11, 1999

Age: 23

Address: Batiocan, Libungan, Cotabato

Nationality: Filipino

Religion: Roman Catholic

Email Address: ccerdz11@gmail.com

Mother: Jeanette C. Bingil

Father: Brian B. Bingil

Primary: City Central Elementary School Cagayan de Oro

Junior High School: Notre Dame of Midsayap College

Senior High School: Libungan National High School

Tertiary: Notre Dame of Midsayap College

Course: Bachelor of Science in Business Administration Major in Financial Management.

46
 Neazyl Mae P. Jadausan

Birthday: September 10,2000

Age:23

Address: Cabpangi, Libungan, Cotabato

Nationality: Filipino

Religion: Roman catholic

Email Address: Maeneazyl091000@gmail.com

Mother: Susana P. Jadausan

Father: Nelson L. Olores

Primary: Cabpangi Elementary School

Junior High School: Libungan National High School

Senior High School: Southern Christian College

Tertiary: Notre Dame of Midsayap College

Course: Bachelor of Science in Business Administration Major in Financial Management.

47
48