Final Paper New Format

BATANGAS STATE UNIVERSITY
The National Engineering University

College of Engineering
ISLAND FLAVORS: A FEASIBILITY STUDY OF ESTABLISHING A FLOATING
BAMBOO RAFT RESTAURANT IN BAÑADERO BAYWALK, TANAUAN CITY,
BATANGAS
A Feasibility Study Presented to the Faculty of Industrial Engineering
Batangas State University The National Engineering University Lipa
Lipa City, Batangas
In Partial Fulfillment of the Requirements for the Degree of
Bachelor of Science in Industrial Engineering
Intacto, John Edward J.
Jaen, Kent Amiel L.
Lirag, Francis Ray A.
Loremia, Jasmin Joy M.

APPROVAL SHEET
This feasibility study entitled “ISLAND FLAVORS: A FEASIBILITY
STUDY OF ESTABLISHING A FLOATING BAMBOO RAFT RESTAURANT
IN BAÑADERO BAYWALK, TANAUAN CITY, BATANGAS” prepared and
submitted by JOHN EDWARD J. INTACTO, KENT AMIEL L. JAEN,
FRANCIS RAY A. LIRAG, JASMIN JOY M. LOREMIA, in partial fulfillment of
the requirements for the degree of BACHELOR OF SCIENCE IN INDUSTRIAL
ENGINEERING is hereby accepted.
ENGR. PAUL RICHARD G. CUAREZ
Adviser
Approved by panel on oral examination with a grade of _________
PANEL OF EXAMINERS
Chairman
Member Member
Accepted and approved in partial fulfillment of the requirements for the

Degree of Bachelor of Science in Industrial Engineering.
LEOVEN A. AUSTRIA, MSIEM, CIE

Dean, College of Engineering
July 2023
Acknowledgement
We, the proponents, would like to express our heartfelt appreciation and
gratitude to the people who made this feasibility study possible:
Firstly, we want to thank our Project Feasibility Adviser, Engr. Paul
Richard Cuarez. He shared his knowledge and expertise, encouraged us, gave
suggestions, and guided us patiently throughout the entire study. We are truly
grateful for his support from the beginning to the end.
We would like to extend our gratitude to our parents who supported us
financially and emotionally during the challenging times we faced while working
on this study. They served as our inspiration and motivation to keep moving
forward.
We also want to thank our fellow BS Industrial Engineering students for
their encouragement and motivation to work hard and complete this study. Their
support has been invaluable.
Lastly, we want to express our deepest thanks to the Almighty God. We
are grateful for the blessings we received, the strength provided to us during the
study, the fulfillment of our dreams, and the spiritual guidance we experienced.
The Proponents
DEDICATION
This work is dedicated to all those who supported, motivated, and inspired us to
complete this study and prepare for our future.
To the business owners, government staff, and employees who provided
essential information, we express our heartfelt gratitude.
Our Project Feasibility Instructor, thank you for your guidance and
encouragement.
To our beloved family, relatives, classmates, and friends, your unwavering
support and inspiration meant the world to us.
And to our Almighty God, we dedicate this work to you, as you have been our
strength and guide.
With deep appreciation, we dedicate this work to everyone mentioned above.
The Proponents
ISLAND FLAVORS: A FEASIBILITY STUDY OF ESTABLISHING A

FLOATING BAMBOO RAFT RESTAURANT IN BAÑADERO
BAYWALK, TANAUAN CITY, BATANGAS
John Edward J. Intacto, Kent Amiel L. Jaen, Francis Ray A. Lirag, Jasmin Joy M. Loremia
Industrial Engineering Department, College of Engineering
Batangas State University - The National Engineering University, Lipa City
Email: 20-35779@g.batstate-u.edu.ph, 20-35018@g.batstate-u.edu.ph, 20-34425@g.batstate-

u.edu.ph, 20-33179@g.batstate-u.edu.ph
ABSTRACT
As the Philippines is renowned for its picturesque bodies of water, the potential of utilizing
this untapped industry became evident. Recognizing this opportunity, the proponents decided to
seize it by proposing the business in the specified municipality. Furthermore, the establishment of
this business holds the potential to benefit the local residents and the community at large by
creating employment opportunities and generating income. Island Flavors Floating Bamboo Raft
Restaurant was proposed to serve the demand for quality and delicious food brought to the
municipality’s tourists at Baywalk of Bañadero in Tanauan City, Batangas. Its culinary offerings
comprise platter and boodle packages that incorporate Filipino cuisine, infused with distinctive
aromas and flavors that will appeal to everyone's taste buds. Given the close proximity of
Bañadero to Taal Lake, the restaurant can present tourists with freshly caught fish, which, when
combined with the breathtaking view of the lake and the surrounding natural beauty, will
undoubtedly provide a one-of-a-kind dining experience. The study observed a positive and
increasing market share, implying that the business was in great shape in its first and following
years. The proponents invest Php 1,300,000.00 in Island Flavors Restaurant and are expected to
recover its investments in less than two (2) years or 1.3 years.
Keywords – Floating Bamboo Raft Restaurant, Platter, Boodle Packages, Taal Lake
1. BACKGROUND OF THE STUDY Filipino cuisine. Grilled or fried fish, shrimp,

1.1 Introduction squid, and various shellfish are commonly
The Philippines, officially known as enjoyed. In addition to savory dishes,
the Republic of the Philippines, is an Filipino cuisine also boasts a variety of
archipelago country located in Southeast sweet treats and desserts.
Asia. It is comprised of over 7,600 islands, Introducing a floating bamboo raft
with a rich cultural heritage influenced by restaurant in Bañadero Baywalk, Tanauan
various indigenous people. One of the City, Batangas would elevate the charm of
notable aspects of Philippine culture is its this picturesque location. The tranquil
vibrant and diverse cuisine. Filipino cuisine ambiance of the baywalk, combined with the
reflects the country's history. It is known for mesmerizing views of Taal Lake and the
its bold flavors, unique combinations, and volcano, would create a captivating dining
use of fresh ingredients. The Filipino dining experience. Guests would savor exquisite
experience is often characterized by cuisine prepared with local ingredients while
communal eating, where a variety of dishes being surrounded by the beauty of nature.
are served and shared among family and The proponents took into account
friends. Seafood is also abundant in the the necessary precautions to ensure the
Philippines, and it plays a significant role in utmost safety of both customers and staff.
Extensive market research, technical Recognizing this opportunity, the proponents

assessments, and financial analysis were decided to seize it by proposing the
conducted to ensure that the floating business in the specified municipality.
restaurant would be a profitable business, Furthermore, the establishment of this
meet customer satisfaction, and take business holds the potential to benefit the
advantage of its prime location by hiring local residents and the community at large
well-trained employees, offering delectable by creating employment opportunities and
cuisine, and providing excellent service to generating income. By offering a livelihood
customers. source, the proposed business aims to
contribute positively to the economic well-
1.2 Brief Background of the Study being of the residents in the study locale.
The concept of establishing the Ultimately, the proponents aim to assess the
Island Flavors floating bamboo raft feasibility of setting up this business in the
restaurant emerged during the brainstorming mentioned municipality. Through the
and idea compilation phase of the feasibility feasibility study, the proponents seeks to
study conducted by the proponents. As the determine whether the business idea can be
Philippines is renowned for its picturesque implemented successfully and whether it
bodies of water, the potential of utilizing this aligns with the specific characteristics and
untapped industry became evident. requirements of the target location.
2021 444,267
2. MARKET STUDY
2.1 Subject of the Study
2022 470,754
The subject of the study was the six
barangays in Tanauan City, Batangas which Source: Survey Result
are Ambulong, Bañadero, Boot, Gonzales,
Maria Paz, and Wawa. The proponents Table 1 shows the historical
chose them as their respondents because demand for Floating Bamboo Raft
they have the potential as buyers and Restaurant from 2018 to 2022. In 2018 it
consumers of the service due to the relative presents 364,643 and it increased to
vicinity of them to the target location. As 470,754 by the year 2022.
such, the proponents prepare a survey
questionnaire to be distributed to their 2.2.2 Projected Demand
respondents to gather the necessary data Table 2
for the study. Projected Demand for Floating
Bamboo Restaurant
2.2 Demand
2.2.1 Historical Demand
Year Projected Demand
Table 1
2023 497,298
Historical Demand for Floating
Bamboo Restaurant 2024 523,825
Year Historical Demand
2025 550,353
2018 364,643
2026 576,881
2019 391,212
2027 603,408
2020 417,698 Table 2 shows the projected
demand for Floating Bamboo Raft
Restaurant from 2023 to 2027. The

Island 69,120 13.19%
expected number in 2023 is 497,298 and will
Flavors
increase to 603,408 by the year 2027.
Potential 454,705 86.81%
2.3 Demand and Supply Analysis
Remain
2.3.1 Market Gap
Table 3 Total 523,825 100%
Market Gap
Table 4 shows the market share for

Year Projected Demand Market
the Island Flavors in Tanauan City. The
Floating Bamboo Gap
projected demand served as the total market
Restaurant
share which is 523,825. Island Flavors has a
market share of 13.19% which is 69,120 and
2023 497,298 497,298
the Potential Remain has a percentage of
86.81% with 454,705.
2024 523,825 523,825
2025 550,353 550,353 2.4 Marketing Strategies and Programs
2026 576,881 576,881 The growth of the business depends

largely on the marketing techniques utilized
2027 603,408 603,408 to promote the selling of a product or service
and the measures taken to publicize the
business. Efficient promotion and
Table 3 shows the potential market advertising are critical for these are the
available for the years 2023 - 2027. elements that can aid in attracting
Potential Market refers to the number of customers and create brand loyalty among
possible consumers that have shown some them. Understanding how to develop
level of interest in purchasing a particular strategic promotional tools would help to
product or service. As well as the part of the make better decisions regarding particular
market that a business can attract in the marketing strategies.
future. The study obtained the potential
market by analyzing the projected demand 2.4.1The Service and Product
and due to the nature of the uniqueness of
the business in the area, the market is Island Flavors Restaurant was
possibly free. Signifying an opportunity for proposed to serve the demand for quality
Island Flavors Restaurant. and delicious food brought to the
municipality’s tourists at Baywalk of
Bañadero in Tanauan City, Batangas. Its
2.3.2 Market Share culinary offerings comprise platter and
boodle packages that incorporate Filipino
Table 4 cuisine, infused with distinctive aromas and
flavors that will appeal to everyone's taste
Market Share buds. Given the close proximity of Bañadero
to Taal Lake, the restaurant can present
tourists with freshly caught fish, which, when
Particulars Market Percentage
combined with the breathtaking view of the
Share (%)
lake and the surrounding natural beauty, will
undoubtedly provide a one-of-a-kind dining
Competitors 0 0.00%
experience. Diners can choose from a
delectable fish and chicken dish, vegetable
platter, and fresh fruit, which are sure to

PLATTER Php 400 Php 448
leave a lasting impression.
FOUR Php 960 - Php 1075 -
The restaurant will mainly offer group meals PERSON Php 1400 Php 1568
but will also offer single platters. The menu PLATTER
is presented as follows:
SIX PERSON Php 1380 Php 1545 -
MENU OF THE FLOATING BAMBOO RAFT PLATTER - Php Php 2240
RESTAURANT 2000
Morning Menu: Tapsilog, Longsilog, TEN PERSON Php 2200 Php 2464 -
Chicksilog, Coffee PLATTER - Php Php 3595
3210
Afternoon Menu: Package Meal - Butter
Garlic Tilapia, Chicken BBQ, Ensaladang TAPSILOG Php 140 - Php 157 -
Talong, Normal or Fried Rice, Watermelon Php 210 Php 235
Slices, Atsara, Bottled Water
LONGSILOG Php 140 - Php 157 -
Add ons: Grilled Shrimp, Grilled Stuffed Php 210 Php 235
Squid, Grilled Pork Belly, Boiled Crab, Fried
Tawilis CHICKSILOG Php 140 - Php 157 -
Php 210 Php 235
2.4.2 Pricing
COFFEE Php 50 - Php 56 -
Price refers to how much a product Php 100 Php 112
or service costs in the market. It's a crucial
factor that affects a company's market share GRILLED Php 300 - Php 336 -
and success. Price is also an important SHRIMP Php 450 Php 504
marketing tool that can attract and retain
customers. GRILLED Php 200 - Php 224 -
STUFFED Php 300 Php 336
Customers want to get a fair price SQUID
for their purchase to feel satisfied with the
business they're dealing with. The GRILLED Php 120 - Php 135 -
proponents ensure that the prices of the PORK BELLY Php 200 Php 224
products and services they offer will be
worth the money customers pay. They BOILED Php 300 - Php 336 -
based the proposed service's price on the CRAB Php 450 Php 504
cost of the raw materials used.
FRIED Php 120 - Php 135 -
TABLE 6 TAWILIS Php 200 Php 224
PRICE LIST FOR THE MENU Table 6 shows the price list of the
Island Flavors Restaurant. The prices were
calculated considering the expenses for
PRODUCT SELLING SELLING
materials, labor, and overhead, and the final
PRICE PRICE
amount includes markup and value-added
w/o VAT with VAT tax (VAT). These prices were determined to
be affordable for customers based on the
SINGLE Php 250 - Php 280 - results of a survey.
caught fish to patrons, which—when paired

with the lake's beautiful scenery and the
3. TECHNICAL STUDY area's natural beauty—certainly makes for a
one-of-a-kind eating experience. A delicious
3.1 Service Description fish and chicken dish, veggie plate, and
fresh fruit are available for diners to select
In Baywalk of Bañadero in Tanauan from, all of which are sure to make an
City, Batangas, Island Flavors Restaurant impact.
was proposed to meet the demand for high-
quality and delectable meals supplied to the The Island Flavors Restaurant was
municipality's tourists. The restaurant's carefully planned to have as little of an
menu includes platter and boodle packages impact as possible on the local ecosystems.
that feature Filipino food and are packed In order to ensure a peaceful cohabitation
with enticing fragrances and flavors that will with environment, the establishment is
please any palate. In order to give its committed to employing sustainable
customers a wonderful dining experience, principles throughout its operations. With a
Island Flavors Restaurant takes pride in strong emphasis on environmental
revolutionizing the concept of fine dining. responsibility, Island Flavors aims to be a
Visitors may picture themselves enjoying role model for environmentally friendly
mouthwatering fare while soaking in the dining, allowing patrons to indulge in their
serene sway of the calm waters and being delectable fare with peace of mind, knowing
surrounded by stunning vistas. Island that their experience respects and protects
Flavors offers the ideal venue to create the natural beauty of the surrounds.
genuinely wonderful moments, whether
people are looking for an outstanding date 3.2 Uses of Service
night, a memorable family celebration, or a
distinctive corporate event. Guests are Island Flavors Restaurant serves as
welcome to celebrate life's most treasured a culinary haven for tourists visiting the
milestones at Island Flavors Restaurant in a Baywalk of Bañadero in Tanauan City,
picturesque environment. The restaurant Batangas. Its primary purpose is to meet the
provides the ideal setting for these important demand for quality and delicious food in the
events, whether they are an anniversary, area. The restaurant specializes in Filipino
birthday, wedding, or corporate gathering. cuisine, offering platter and boodle
Each guest's eating experience at Island packages that tantalize taste buds with
Flavors is tailored to suit their preferences distinctive aromas and flavors. One of its
by the devoted staff, who pay special unique features is the availability of freshly
attention to every little thing. Every element caught fish, sourced from the nearby Taal
of the event, from the decor to the meal, has Lake. This, combined with the breathtaking
been carefully chosen to make it nothing view of the lake and the surrounding natural
short of outstanding. Visitors may be sure beauty, creates a one-of-a-kind dining
that their special moments will be enhanced experience. With options ranging from
to new levels, resulting in memories that will delectable fish and chicken dishes to
be treasured forever. vegetable platters and fresh fruit, Island
Flavors Restaurant ensures that there is
something to suit every palate. By delivering
flavorful dishes and a captivating ambiance,
the restaurant strives to leave a lasting
impression on its customers, providing them
Due to Baadero's close proximity to with memorable dining experiences.
Taal Lake, the restaurant can serve freshly
3.3 Service Process
The fvisual representation of the during their shift. This decision was made to
sequential steps involved in ingredient ensure employee satisfaction and reduce
procurement, food preparation, platter and the strain of long work hours.
boodle package assembly, quality control,
service delivery, customer satisfaction, and 3.5 Plant Location
clean-up and sanitation. It serves as a
comprehensive overview of the
manufacturing process, showcasing the
meticulous attention to detail and
commitment to excellence that Island
Flavors Restaurant upholds in its operations.
3.4 Service Schedule
Island Flavor Restaurant will be

open from 7:00 AM to 5:00 PM, Tuesday to
Sunday. The survey found that tourists,
especially bikers who want to see the
sunrise, start arriving around 5:00 to 6:00 Figure 7. Business Location
AM, with about 50 visitors present at that
time. Who were either jogging or cycling to The Island Flavors will be located in
the location. Tourists from other regions Baywalk of Bañadero in Tanauan City,
arrive at 7:00 AM to explore various scenic Batangas. The location is strategically
destinations. On weekends, there is a high chosen to take advantage of its close
demand for diners in the area, as tourists proximity to Taal Lake and the municipality's
come to relax, sightsee, bike, and eat. thriving tourism industry. Situated in the
Despite this demand, there are only a few Baywalk of Bañadero, Tanauan City,
dining options available in the area. Based Batangas, the restaurant offers a stunning
on the annual report of tourist arrivals, view of the lake and the surrounding natural
around 60,000 tourists visit Bañadero beauty. This picturesque location enhances
Baywalk, Tanauan City, Batangas each the overall dining experience, creating a
year, which indicates a significant potential serene and captivating ambiance for
market for Island Flavor Restaurant. customers. With its prime location, Island
Flavors aims to attract both locals and
After observing peak days and tourists, providing them with a memorable
times, the proponents decided to adjust the dining experience coupled with breathtaking
opening time and duration of operations to scenery.
better cater to the tourists. They noticed that 3.6 Plant Layout
tourists usually eat between 7:00 - 9:00 AM
after doing activities such as sightseeing
and picture-taking. They also considered the
operating hours of competitors in the area,
which is from 8:00 AM to 5:00 PM.
The proponents also considered the

work-life balance of their employees, their This displayed design of the floor
productivity, and engagement, as well as the plan of restaurant’s kitchen is made in an
customers' free time. They decided on a 10- effort of providing a safe and convenient
hour workday, with a 1-hour lunch break and working environment for the employees.
two 15 - minute breaks, with one of the Necessary conditions were considered by
breaks taken at the employee's discretion
the proponents upon the completion of the disposing of the waste. In accordance with
presented floor plan. the City Environment and Natural Resources
Office of Tanauan City, garbage collection
3.7 Waste Disposal schedule for Bañadero Baywalk is every
Wednesday, 7:30 AM and 3 PM. The waste
In order to effectively manage waste contractor responsible for collection is
disposal within the restaurant's operations, a Persan Construction, Inc.
systematic approach to segregating and
removing garbage is necessary. The This approach not only benefits the
proponents propose utilizing three different environment, but also ensures the
types of garbage bins - one for cleanliness of the community. Proper waste
biodegradable waste, another for recyclable disposal is also a key obligation for business
materials, and a third for non-biodegradable establishments to fulfill, as it allows for
trash. A designated employee will be environmentally responsible production,
responsible for cleaning and properly storage, transport, and disposal of controlled
waste.
4. FINANCIAL STUDY and strategic actions. By reviewing the

projected income statement, stakeholders
4.1 Initial Capital Requirements can evaluate the expected profitability and
financial well-being of the company. It
The initial capital is provided enables them to assess the potential effects
through the partners' individual investments, of different scenarios or strategies on the
with each partner contributing ₱325,000. As company's financial performance, facilitating
a result, the total capital contribution from risk assessment and informed decision-
the partners amounts to ₱1,300,000. making.
4.2 Financial Statements 4.2.2 Cash Flow Statement Analysis
Financial statements are formal Cash flow statement analysis entails

reports that provide a condensed and examining and interpreting the information
presented summary of a business or provided in a company's cash flow
organization's financial activities and statement. Its primary objective is to
performance. These reports give a brief comprehend the origins and applications of
overview of the company's financial status, cash within the organization during a
operational results, and cash flow during a specified timeframe. This analysis is crucial
specified period. The main types of financial for understanding the company's cash flow
statements include the Income Statement, patterns, evaluating its capacity to finance
Balance Sheet, Cash Flow Statement, and operations, investments, and obligations. It
Statement of Changes in Equity. plays a vital role in assessing the company's
financial well-being, identifying areas of cash
4.2.1 Projected Income Statement flow strength and weakness, and making
informed decisions pertaining to financial
The projected income statement is management and strategic planning.
developed using assumptions, market
trends, historical data, and management's 4.2.3 Projected Statement of Changes in
expectations regarding financial factors. It Equity
supports businesses in planning and
predicting their financial results, identifying A projected statement of changes in
areas of growth or concern, and making equity is a financial statement that predicts
informed decisions about resource allocation the anticipated modifications to the equity
section of a company's balance sheet for a into profits, as a higher net profit margin
specified future period. It provides an signifies greater efficiency in generating
overview of the expected adjustments to profits from its sales revenue.
shareholders' equity, including projected net
income, dividends, share issuances or 4.3.2 Return on Assets
repurchases, and other relevant transactions
affecting equity. Table 26
Return on Assets
4.2.4 Balance Sheet
Year Net Income Average Return on
Balance sheet is a financial After Tax Assets Assets
statement that offers a snapshot of a

company's financial condition at a specific
2024 639,868.86 1,596,780.64 40.07%
point in time, usually at the end of a
reporting period. It presents the company's
assets, liabilities, and shareholders' equity. 2025 777,662.18 1,702,500.68 45.68%
The balance sheet provides important

insights into the company's financial well- 2026 968,963.77 1,939,595.50 50.00%
being, including its financial health, ability to

fulfill obligations, liquidity, and capital 2027 1,186,099.95 2,232,289.42 53.13%
structure. It enables stakeholders to
evaluate the company's capacity to meet 2028 1,433,651.21 2,586,292.79 55.43%
financial commitments, analyze its asset mix
and funding sources, and understand its
overall financial position. Table 26 shows the percentage of
return on assets for Island Flavors: Floating
4.3 Financial Ratios Bamboo Raft Restaurant. The data clearly
shows an increasing trend in the return on
4.3.1 Return on Sales (Operating Profit assets over time. This indicates that Island
Margin) Flavors: Floating Bamboo Raft Restaurant
has been efficient in utilizing its assets to
Table 25 generate higher income.
Return on Sales
Year Net Income Sales Return on 4.3.3 Return on Investment
Sales
Table 27
2024 799,836.08 4,406,614.29 18.15% Return on Investment
Year Net Income Original Return on
After Tax Investment Investment
2025 972,077.72 4,934,577.46 19.70%
2026 1,211,204.71 5,523,512.50 21.93% 2024 639,868.86 1,300,000.00 49.22%
2027 1,482,624.94 6,181,617.86 23.98% 2025 777,662.18 1,300,000.00 59.82%
2028 1,792,064.02 6,918,811.61 25.90% 2026 968,963.77 1,300,000.00 74.54%
2027 1,186,099.95 1,300,000.00 91.24%

Table 25 shows a rising trend in the
net profit margin values between 2024 and 2028 1,433,651.21 1,300,000.00 110.28%
2028. This indicates that the business is
becoming more effective in converting sales
Table 27 shows the return on 2026 968,963.77 4.00 242,240.94

investment (ROI) of Island Flavors: Floating
Bamboo Raft Restaurant over a period of 5 2027 1,186,099.95 4.00 296,524.99
years. The data clearly indicates a
consistently high ROI for the business
2028 1,433,651.21 4.00 358,412.802
throughout these years. This signifies that
Island Flavors: Floating Bamboo Raft
Restaurant has effectively utilized its
Table 29 shows the earnings per
investments to generate a higher return,
partner of Island Flavors: Floating Bamboo
showcasing the business's ability to
Raft Restaurant have consistently increased
maximize the profitability of its investment
from 2023 to 2027. This indicates that the
initiatives.
business has experienced growth over the
years, with larger earnings or sales
4.3.4 Return on Equity
contributing to the positive trend.
Table 28
Return on Equity
4.3.6 Net Profit Margin
Year Net Income Average Return on
After Tax Equity Equity Table 30
Net Profit Margin
Year Net Income Net Sales Net Profit
2024 639,868.86 1,459,868.86 43.83% After Tax Margin
2025 777,662.18 1,556,699.95 50.00% 2024 639,868.86 4,406,614.29 14.52%
2026 968,963.77 1,774,012.92 54.62% 2025 777,662.18 4,934,577.46 15.76%
2027 1,186,099.95 2,043,544.78 58.04% 2026 968,963.77 5,523,512.50 17.54%
2028 1,433,651.21 2,371,420.37 60.46% 2027 1,186,099.95 6,181,617.86 19.19%
2028 1,433,651.21 6,918,811.61 20.72%
Table 28 shows that the return on

equity (ROE) of the business for the years
2024-2028 is increasing over time. This Table 30 shows that the net profit
means that the business is generating margin of the business has shown an
higher profits using a smaller portion of its increasing trend from 2024 to 2028. The net
equity, indicating improved efficiency or profit margin is a measure of profitability,
increased profitability without requiring representing the percentage of net income
significant additional investment. generated relative to net sales.
4.3.5 Earnings per Partner 4.3.7 Gross Profit Margin

Table 29 Table 31
Earnings per Partners Gross Profit Margin
Year Net Income No. of Earnings per Year Gross Profit Sales Gross Profit
After Tax Partners Partner Margin
2024 1,171,122.48 4,406,614.29 26.58%

2024 639,868.86 4.00 159,967.22
2025 1,356,871.97 4,934,577.46 27.50%

2025 777,662.18 4.00 194,415.55
2026 1,610,252.91 5,523,512.50 29.15% 2026 176,475.47 2,070,970.27 8.52%
2027 1,897,171.74 6,181,617.86 30.69% 2027 201,013.80 2,393,608.56 8.40%
2028 2,222,828.73 6,918,811.61 32.12% 2028 228,731.05 2,778,977.03 8.23%
Table 31 shows the gross profit Table 33 shows the debt ratio of the
margin of the business that has also shown business has gradually decreased from
an increasing trend from 2024 to 2028. The 2024 to 2028. The debt ratio represents the
gross profit margin represents the proportion of a business total liabilities to its
percentage of gross profit relative to total assets. The decreasing trend in the
sales.This indicates that the business has debt ratio indicates a favorable financial
been able to improve its efficiency in position, highlighting the business ability to
generating gross profit from its sales. manage its debt levels and fund a greater
proportion of its assets through equity
4.3.8 Debt-to-Equity Ratio sources.
Table 32
Debt-to-Equity Ratio 4.3.10 Equity Ratio
Year Total Total Equity Debt-to- Table 34
Liabilities Equity Ratio Equity Ratio
Year Total Equity Total Assets Equity Ratio
2024 136,911.78 1,459,868.86 9.38%
2024 1,459,868.86 1,596,780.64 91.43%

2025 154,689.70 1,653,531.04 9.36%
2025 1,653,531.04 1,808,220.73 91.45%

2026 176,475.47 1,894,494.81 9.32%
2026 1,894,494.81 2,070,970.27 91.48%

2027 201,013.80 2,192,594.76 9.17%
2027 2,192,594.76 2,393,608.56 91.60%

2028 228,731.05 2,550,245.97 9.00%
2028 2,550,245.97 2,778,977.03 91.77%
Table 32 shows the debt-to-equity

ratio of the business has remained relatively Table 34 shows the equity ratio of
stable from 2024 to 2028. The debt-to-equity the business has remained relatively stable
ratio is a financial metric that measures the and high from 2024 to 2028. The equity ratio
proportion of a business total liabilities to its represents the proportion of a business total
total equity. equity to its total assets.The stability and
high equity ratio indicate that the
4.3.9 Debt Ratio businesshas maintained a solid capital base
Table 33 and retained earnings.
Debt Ratio
Year Total Total Assets Debt Ratio 4.3.11 Current Ratio
Liabilities Table 35
2024 136,911.78 1,596,780.64 8.57%
Current Ratio
Year Total Current Total Current Current Ratio
Assets Liabilities
2025 154,689.70 1,808,220.73 8.56%
2024 1,483,264.45 136,911.78 10.33 Year Total Quick Total Current Quick Ratio
Assets (Cash Liabilities
+ Short Term
Investments
2025 1,709,085.35 154,689.70 11.05 + Net
Receivables)
2026 1,986,215.70 176,475.47 11.25 2024 1,418,435.87 136,911.78 10.36
2027 2,323,234.80 201,013.80 11.56 2025 1,637,983.91 154,689.70 10.59
2028 2,722,984.08 228,731.05 11.90 2026 1,908,989.16 176,475.47 10.81
2027 2,239,182.09 201,013.80 11.14

Table 35 indicates the current ratio
of the business has shown a consistent
2028 2,631,310.90 228,731.05 11.50
upward trend from 2024 to 2028. The
current ratio is a financial metric that
measures the business ability to meet its
Table 37 indicates the quick ratio of
short-term obligations. The increasing trend
the business has shown a consistent
in the current ratio indicates improved
upward trend from 2024 to 2028. The
liquidity and a better ability to manage short-
increasing trend in the quick ratio indicates
term financial commitments over the
improved liquidity and a better ability to
analyzed period.
manage short-term financial commitments
over the analyzed period.
4.3.12 Working Capital
Table 36
4.3.14 Assets Turnover
Working Capital
Table 38
Year Total Current Total Current Working
Assets Liabilities Capital Assets Turnover
Year Sales Average AssetsTurno
Assets ver
2024 1,483,264.45 136,911.78 1,346,352.67
2024 4,406,614.29 1,596,780.64 2.76

2025 1,709,085.35 154,689.70 1,554,395.65
2025 4,934,577.46 1,702,500.68 2.90

2026 1,986,215.70 176,475.47 1,809,740.23
2026 5,523,512.50 1,939,595.50 2.85

2027 2,323,234.80 201,013.80 2,122,221.00
2027 6,181,617.86 2,232,289.42 2.77

2028 2,722,984.08 228,731.05 2,494,253.03
2028 6,918,811.61 2,586,292.79 2.68
Table 36 shows the working capital

of the business has shown a consistent
Table 38 shows the assets turnover
upward trend from 2024 to 2028. It signifies
ratio of the business has shown some
the Business ability to finance its day-to-day
fluctuations but remained relatively stable
operations, cover short-term debts, and
from 2024 to 2028. The assets turnover ratio
invest in growth opportunities. measures the efficiency of a business in
generating sales revenue from its average
4.3.13 Quick Ratio total assets. In 2024, the assets turnover
Table 37 ratio was 2.76, indicating that the business
Quick Ratio generated 2.76 times its average total
assets in sales. Over the following years, the Year 3

999,005.25 0.8444 843,549.88
assets turnover ratio fluctuated, reaching a Year 4
1,218,192.9
peak of 2.90 in 2025 and ranging between 3
1,468,128.8
0.7981 972,239.82
Year 5
2.68 to 2.90. 1 0.7543 1,107,479.83
TOTAL PRESENT VALUE OF CASH
4,356,001.16
FLOWS
4.4 Payback Period LESS: INVESTMENT (1,300,000.00)
Table 40
Payback Period using Accumulated NET PRESENT VALUE 3,056,001.16
Method
Payback Period using Accumulated Method The table 41 presents the
Investment Cost -
calculation of Net Present Value for a series
Year Investment Cost Income After Tax
Income After Tax of expected cash flows over a five-year
period. The cash flows are discounted to
2024 1,300,000.00 639,868.86 660,131.14
their present values using a discount rate of
2025 660,131.14 777,662.18 (117,531.04) 5.8%. The Net Present Value is found to be
2026 (117,531.04) 968,963.77 (1,086,494.81) 3,056,001.16, which indicates that the
investment is expected to generate a
2027 (1,086,494.81) 1,186,099.95 (2,272,594.76)
positive return after considering the time
2028 (2,272,594.76) 1,433,651.21 (3,706,245.97)
value of money.
TOTAL
NET
INCOME 5,006,245.97 4.6 Internal Rate of Return
AVERAGE
TOTAL Table 42
NET
INCOME 1,001,249.19 Financial Internal Rate of Return
Financial Internal Rate of Return
Payback Period Total Investment Cost

Expected Cash PV Factor
Total Net Income/No. of Years Year Present Value
Flow in 62.86%
Year 1 756,332.87 0.6140 464,415.12

Payback Period 1,300,000.00
Year 2 803,548.03 0.3770 302,969.27
5006245.97 / 5
Year 3
999,005.25 0.2315 231,285.22
Year 4
Payback Period 1.3 years 1,218,192.93 0.1422 173,176.74
Year 5
1,468,128.81 0.0873 128,153.66
Table 40 shows the Payback Period TOTAL
1,300,000.00
using Accumulated Method. The payback Less: Initial
period for the investment is 1.3 years, Investment (1,300,000.00)
NPV less Initial
indicating that the initial investment will be Investment 0
recovered within 1.3 years based on the
accumulated net income.
Financial Internal Rate of Return 62.86%
4.5 Net Present Value

Table 41
Net Present Value The table 42 presents the
calculation of the Financial Internal Rate of
Net Present Value
Return for a series of expected cash flows
Present
Year
Expected
Value Factor
Present Value of Cash over a five-year period. The cash flows are
Cash Flow Flows
(5.8%) discounted using a discount rate of 62.86%.
The Financial Internal Rate of Return helps
Year 1 756,332.87 0.9452 714,870.39
assess the profitability and attractiveness of
Year 2 803,548.03 0.8934 717,861.24 the investment. If the IRR exceeds the
required rate of return or the cost of capital, the investment is considered favorable.
5. MANAGEMENT STUDY activities. The various positions,

5.1 Organizational Chart departments, and duties of the individuals in
the organization are presented in the
organizational chart. The proposed floating
bamboo restaurant will have, one (1) cashier
to collect the payment of the customers and
to do the daily accounting tasks, two (2)
servers to serve the orders of the
customers, two (2) crews for the general
maintenance of the restaurant as well as to
ensure the safety of the safety and
cleanliness of the location, two (2) cooks
Figure xxx. Organizational Chart who will be responsible for the processes in
An organizational structure is a the kitchen which are preparation of the
system that defines how the activities are dishes, and cleaning of all the dishes.
managed and directed in pursuit of the goals
of the organization. It also determines how 5.2 Legal Requirements
the flow of information is done from different When setting up a business, it is
levels within the organization. The crucial to adhere to the legal obligations
organizational structure is also used as a involved in initiating and sustaining the
method of allocating people into their business operations. This entails obtaining
designated jobs in order to perform their the necessary documentation and permits to
duties in pursuit of achieving the register and legalize the business. In the
organization’s goals and objectives. Due to Philippines, the specific legal requirements
the nature of the business being a for starting a business differ based on
partnership, a partner can take on the duty factors such as the business type and
of managing the business. The partners in industry. As Island Flavors is structured as a
the business will be managing the business general partnership, the company must
operations and the employees in order for it complete the registration process with the
to run smoothly throughout its day to day Securities and Exchange Commission
(SEC).
6. SOCIO-ECONOMIC CONTRIBUTION The construction of the floating

6.1 Contribution to Philippine Economy restaurant will make use of locally sourced
The suggested venture holds bamboo, emphasizing sustainability and
promise in creating numerous job supporting the local economy. By utilizing
opportunities for the residents of Bañadero, bamboo, which is a fast-growing and
Tanauan City, Batangas.This is offered by renewable resource, the restaurant
employment during both the project's demonstrates its commitment to minimizing
development phase and its operational environmental impact and promoting eco-
stage, it can effectively address the area's friendliness.
unemployment problem. Moreover, the To ensure the preservation of the
project will not only generate income for its area's natural ecosystem, the placement of
employees but also contribute to the the floating rafts will adhere to the guidelines
country's tax revenue, benefiting its owners. set by the Department of Environment and
Natural Resources (DENR). These
6.2 Environment guidelines take into account factors such as
water flow, marine life habitats, and other
environmental considerations. By following friendly and enjoyable dining experience

these designated areas, the restaurant aims while respecting and preserving the
to minimize disruption to the ecosystem and surrounding natural environment
maintain the ecological balance of the
surrounding environment. REFERENCES
To ensure a clean and safe dining Fernando, J. (2023a). Working Capital:
experience, the restaurant will employ Formula, components, and limitations.
maintenance personnel who will be Investopedia.
responsible for regular cleaning and upkeep https://www.investopedia.com/terms/w/worki
of the floating rafts. This includes ngcapital.asp/
maintaining a hygienic environment, keeping
the dining areas clean, and ensuring the Gordon, Jason (2023, March 26). Demand-
proper disposal of waste. By prioritizing Supply Analysis - Explained. The Business
cleanliness and hygiene, the restaurant aims Professor.
to provide customers with a pleasant and https://thebusinessprofessor.com/en_US/ec
enjoyable dining experience while also onomic-analysis-monetary-policy/demand-
upholding health and safety standards. supply-analysis-explained
In summary, the construction of the
floating restaurant will prioritize the use of Indeed (2023).Retrieved from
locally sourced and sustainable materials https://www.indeed.com/career-advice/caree
such as bamboo. The placement of the rafts r-development/types-of-organizational-
will adhere to guidelines set by the DENR to structures
minimize disruption to the natural
ecosystem. The employment of Vipond, T. (2023b). ROI Formula (Return on
maintenance personnel will ensure a clean, Investment). Corporate Finance Institute.
safe, and hygienic environment for https://corporatefinanceinstitute.com/resourc
customers. Through these measures, the es/accounting/return-on-investment-roi-
floating restaurant aims to offer an eco- formula/
TABLE OF CONTENTS
Page
TITLE PAGE X
APPROVAL SHEET X
ACKNOWLEDGEMENT X
DEDICATION X
EXECUTIVE SUMMARY X
LIST OF TABLES X
LIST OF FIGURES X
LIST OF APPENDICES X
CHAPTER I: BACKGROUND OF THE STUDY

Introduction x
Brief Background of the Study x

Objectives of the Study x
Definition of Terms x
Scope and Limitations of the Business x
Project Timetable and Status x
CHAPTER II: MARKET FEASIBILITY

Methodology x
Research Design x
Subject of the Study x
Data Gathering Instrument x
Statistical Treatment of Data x
Demand x
Major Consumer of the Product x
Historical Demand x
Projected Demand x
Demand and Supply Analysis x
Market Gap x
Market Share x
SWOT Analysis x
Marketing Strategies and Programs x
Product x
Product Category/Quality and Size x
Brand Name x
Pricing x
Promotion x
Generalization x
CHAPTER III: TECHNICAL STUDY

Objective of the Study x
Service Description x
Uses of Service x
Service Process x
Service Schedule x
Service Location x
Plant Layout x
Tools and Equipment for Construction x
Kitchen Tools and Equipment x
Store Supplies x
Office Supplies x
Maintenance Supplies x
Utilities Expense x
Direct Materials x
Waste Disposal x
Direct Labor Requirements x
CHAPTER IV: FINANCIAL STUDY

Total Project Cost x
Initial Capital Requirements x
Financial Assumptions x
Sources of Financing x
Financial Statements x
Projected Income Statement x
Balance Sheet x
Financial Ratios
Profitability Ratios x
Financing and Leverage Ratios x
Liquidity Ratios x
Activity Ratios x
Break-Even Point Analysis x
Payback Period x
Net Present Value x
Internal Rate of Return x
Generalization x
CHAPTER V: MANAGEMENT STUDY

Forms of Business Ownership x
Capitalization x
Organizational Structure x
Manpower Requirements x
Job Specification x
Compensation x
Organizational Policies x
Legal Requirements x
Generalization x
CHAPTER VI: SOCIO-ECONOMIC CONTRIBUTION

Contribution to the Philippine Economy x
Employment Generalization x
Social Desirability x
Supplier x
Consumers x
Environment x
Generalization x
REFERENCES x
APPENDICES x
LIST OF TABLES
Table Page
1 Historical Demand for Floating Bamboo Restaurant x
2 Projected Demand for Floating Bamboo Restaurant x
3 Market Gap x
4 Market Share x
5 Menu of the Floating Bamboo Raft Restaurant x
6 Price list for the menu x
7 Service Schedule of Island Flavors Restaurant x

8 Tools and Equipment for Construction of Kitchen x
9 Labor in Construction of Restaurant’s Kitchen x
10 Tools and Equipment in Construct in Bamboo Raft x
11 Labor in Construction of Bamboo Raft x
12 Kitchen Tools and Equipment x
13 Store Supplies x
14 Office Supplies x
15 Maintenance Supply x
16 Utilities Expense x
17 Ingredients and Description x
18 Labor Requirement x
19 Total Project Cost x
20 Total Capital Contribution x
21 Projected Income Statement x
22 Projected Statement of Cash Flows x
23 Statement of Changes in Partner's Equity x
24 Projected Balance Sheet x
25 Return on Sales x
26 Return on Assets x
27 Return on Investment x
28 Return on Equity x
29 Earnings per Partners x
30 Net Profit Margin x
31 Gross Profit Margin x
32 Debt-to-Equity Ratio x
33 Debt Ratio x
34 Equity Ratio x
35 Current Ratio x
36 Working Capital x
37 Quick Ratio x
38 Assets Turnover x
39 Breakeven Analysis x
40 Payback Period using Accumulated Method x
41 Net Present Value x
42 Financial Internal Rate of Return x
43 Profitability Index x
44 Partners Contribution x
45 Compensation Schedule x
46 Taxes and Licenses x
LIST OF FIGURES
Figure Page
1 Project’s Timetable of Island Flavors x
2 Historical Demand for Floating Bamboo Raft Restaurant x
3 Historical Demand for Floating Bamboo Raft Restaurant x
4 Graph of Market Share x
5 Island Flavors Logo x
6 Service Process of Island Flavors x
7 Island Flavors Location x

8 Floor Plan of Island Flavors Restaurant’s Kitchen x
9 Restaurant Front View x
10 Main Kitchen and Office Layout x
11 Floating Hut Design x
12 Top View of the Floating Hut x
13 Side View of the Floating Hut x
14 Organizational Chart x
LIST OF APPENDICES
CHAPTER I
BACKGROUND OF THE STUDY
This chapter is a brief comprehensive analysis of the proposed business.
It includes the introduction, brief background of the study, objectives of the study,
definition of terms, scope and limitation of the business and the project
timelineand status.
Introduction
The Philippines, officially known as the Republic of the Philippines, is an
archipelago country located in Southeast Asia. It is comprised of over 7,600
islands, with a rich cultural heritage influenced by various indigenous people.
One of the notable aspects of Philippine culture is its vibrant and diverse cuisine.
Filipino cuisine reflects the country's history. It is known for its bold flavors,
unique combinations, and use of fresh ingredients. The Filipino dining experience
is often characterized by communal eating, where a variety of dishes are served
and shared among family and friends.
Seafood is also abundant in the Philippines, and it plays a significant role
in Filipino cuisine. Grilled or fried fish, shrimp, squid, and various shellfish are
commonly enjoyed. In addition to savory dishes, Filipino cuisine also boasts a
variety of sweet treats and desserts.
Filipino cuisine is incredibly diverse, with regional specialties and unique
dishes from different provinces across the country. Each region has its own
distinct flavors and cooking techniques, showcasing the country's culinary
richness.
Introducing a floating bamboo raft restaurant in Bañadero Baywalk,
Tanauan City, Batangas would elevate the charm of this picturesque location.
The tranquil ambiance of the baywalk, combined with the mesmerizing views of
Taal Lake and the volcano, would create a captivating dining experience. Guests
would savor exquisite cuisine prepared with local ingredients while being
surrounded by the beauty of nature. This unique addition would not only attract
tourists seeking a distinctive experience but also promote the region's cultural
heritage through traditional architecture and cultural performances. The eco-
friendly nature of the bamboo raft aligns with sustainability practices, while the
boost in tourism would provide economic opportunities for the local community. A
floating bamboo raft restaurant in Bañadero Baywalk would undoubtedly become
a sought-after attraction, offering an unforgettable and enchanting dining
adventure.
The proponents took into account the necessary precautions to ensure the
utmost safety of both customers and staff. Extensive market research, technical
assessments, and financial analysis were conducted to ensure that the floating
restaurant would be a profitable business, meet customer satisfaction, and take
advantage of its prime location by hiring well-trained employees, offering
delectable cuisine, and providing excellent service to customers.
Brief Background of the Study

The concept of establishing the Island Flavors floating bamboo raft
restaurant emerged during the brainstorming and idea compilation phase of the
feasibility study conducted by the proponents. As the Philippines is renowned for
its picturesque bodies of water, the potential of utilizing this untapped industry
became evident. Recognizing this opportunity, the proponents decided to seize it
by proposing the business in the specified municipality.
Furthermore, the establishment of this business holds the potential to
benefit the local residents and the community at large by creating employment
opportunities and generating income. By offering a livelihood source, the
proposed business aims to contribute positively to the economic well-being of the
residents in the study locale.
Ultimately, the proponents aim to assess the feasibility of setting up this
business in the mentioned municipality. Through the feasibility study, the
proponents seeks to determine whether the business idea can be implemented
successfully and whether it aligns with the specific characteristics and
requirements of the target location.
Objectives of the Study
In order to assess the viability and justification of a project, it is important
to consider the factors that impact the business operation. The proponents aimed
to determine the feasibility of the proposed business idea. The following criteria
are crucial in evaluating nearly any subject:
1. To build a strong brand presence for Island Flavors
2. To become a top choice for unique dining experiences on floating rafts
3. To ensure operational excellence through efficient systems and
continuous improvement
4. To contribute to the economic progress of the local community
5. To establish meaningful connections with customers
6. To solidify Island Flavors' position in the hospitality and food service
industry
7. To create memorable dining experiences for customers; and
8. To make a positive impact on the community served by Island Flavors
Definition of Terms
The proponents present the following terms using conceptual and
operational definition to better understand and interpret the study.
Floating Restaurant. A floating restaurant can be defined as a physical
establishment that operates primarily on water and provides food and beverage
services to customers. In this study, a floating restaurant refers to a dining

establishment that is located on a floating structure, such as a bamboo raft, and
offers freshly cook foods to customers.
Bamboo Raft. A bamboo raft can be defined as a floating platform constructed
primarily using bamboo materials and employed for transportation or recreational
purposes. In this study, bamboo raft refers to a watercraft made primarily from
bamboo, a type of fast-growing grass, and used for various purposes.
Package Meal. A package meal can be defined as a bundled food offering that
includes multiple food items or courses, designed to provide a complete meal
experience. In this study, a package meal refers to a pre-planned and pre-
portioned meal that is offered as a complete package, typically including multiple
courses or food items; single, four, six, and ten person platters.
Consumers. This refers to the individual who utilizes or consumes the product or
service. In this study, they are the ones who are capable of eating and buying the
meal on the floating bamboo raft restaurant.
Suppliers. Suppliers, in a general sense, refer to individuals, companies, or
entities that provide goods or services to other individuals, businesses, or
organizations. In this study, they are responsible for providing specific goods,
materials, or services as agreed upon in the contractual terms or purchase
agreements.
Scope and Limitations of the Business
The study is conducted to determine the feasibility of the proposed
product. The proponents conducted surveys from possible consumers in the
areas of Bañadero Baywalk, Tanauan City and some selected neighboring
barangays to collect the necessary information. The feasibility includes the
project's market, technical, management, financial, and socio-economic aspects.
To determine the scope and limitations of the business, the aspects mentioned
above were used as its basis.
In terms of market, an initial survey covers 394 individuals from the
Barangay Bañadero, Tanauan City and includes some neighboring barangays
such as Ambulong, Boot, Gonzales, Maria Paz, and Wawa. The proponents
distributed survey questionnaires and gathered data specifically on the
barangays to determine the interest and demand of the consumers.
As for the technical aspect, the business was to offer a morning and
afternoon menu. In this case, the business offers different package meals that
will suffice the cravings, needs, and wants of the customer. The floating bamboo
raft restaurant is limited to seven (7) employees throughout the five (5) years of
its operation.
Management aspect deals with the structure of the business. The
enterprise was a partnership of four (4) owners and hire seven (7) employees for
the business operations. At Island Flavor Restaurant, the following staff members
are needed: one (1) cashier to handle daily accounting tasks and manage cash
flow, two (2) cooks to oversee the cooking process and prepare dishes, two (2)
servers to serve food and ensure quality before it reaches customers, two (2)
crew members to assist customers and maintain restaurant cleanliness, wash
dishes, keep the kitchen clean, and ensure customer safety.
In the financial aspect, it focuses on the initial funds required for the
business to commence its operations and the projected financial statements for
the first five years. This demonstrates the business's ability to generate income
and fulfill its financial obligations. However, the company's resources are
constrained by the financial capacity of its owners.
On the socio-economic aspect, the study examines how the business
contributes to the country. The company ensures that it fulfills its responsibility by
paying the appropriate amount of taxes. Additionally, it prioritizes the well-being
of its employees by providing a safe and comfortable work environment along
with necessary benefits. The study is limited on floating restaurant industries in
Tanauan City. It emphasizes the implementation of proper waste management
and segregation practices by all employees at all times.

Project Timetable and Status
To ensure the smooth execution of the plan, the proponents created a
schedule that acted as a guide for carrying out particular tasks.
A. Formulating and Recognizing Project Concepts
January – February 2023
B. Conducting and Evaluating
February - April 2023
C. Assessment and analysis of Feasibility
May – June 2023
D. Project Proposal
July 2023
E. Acquisition of Permit and Licenses
August – September 2023
F. Procurement of Essential Materials
September – October 2023
G. Hiring and Training Worker
November – December 2023
H. Floating Huts Installation
November – December 2023
I. Preparation of the Start of Operation

December 2023
J. Start of Operation is January 2024
Figure 1. Project’s Timetable of Island Flavors
Figure 1 shows the project’s timetable or set of activities of Island Flavors
Restaurant prior to its formal start-up in January 2024. The project formulation
and recognizing project concepts would run for two months, from January 2023
to February 2023; conducting and evaluation of feasibility study would take place
from February 2023 to April 2023; assessment and analysis of feasibility study
May 2023 to June 2023. Then, the project proposal would follow in July 2023.
The permit and licenses would be processed from August 2023 to September
2023. From September 2023 to October 2023 the necessary materials should
have been acquired. Then the hiring and training of workers would be from
October 2023 to November 2023. The installation of the floating hut would be
from November 2023 to December 2023. The preparation for the start of
operations would start in December 2023, until it opens in January 2023.

CHAPTER II
Market Study
A market study is crucial in assessing the feasibility of a business
enterprise. This chapter evaluates the extent and possibilities. As a potential
tourist attraction based on its characteristics, location, menu, and how it aligns
with the proposed project.
This chapter presents information related to the marketing aspects of
establishing a Floating Bamboo Raft Restaurant in Bañadero Baywalk, Tanauan
City, Batangas. Specifically including the objectives of the study, methodology,
deman, major consumer of the product, historical demand, projected demand,
market share, SWOT analysis, marketing strategies and programs, the service
and it’s products, its size, category, quantity, brand name, packaging, pricing,
and the place of distribution and promotion.
Objectives of the study
This study aims to determine the feasibility of a floating bamboo restaurant
in the market. To accomplish this goal, the proponents specified the following
objectives:
1. To determine who was the potential target market of the proposed
business.
2. To determine the product’s demand and supply

3. To establish the intended market share when the evaluation in the
situation of demand and supply has been made.
4. To create necessary marketing plans and strategies for it to be allowed to
penetrate the market.
Methodology
This section explains all of the research methods that the proponents used
in conducting the study and the necessary data through relevant instruments and
procedures. The proponents used the descriptive method to obtain the
information necessary to systematically describe and analyze the feasibility
study. Survey questionnaires along with data given by the government bodies of
Tanauan City were used to gather data and information about the study.
The methodology also discusses the research design, subject of the
study, data gathering instruments, data gathering procedure, and statistical
treatment of data used to determine the marketability of the proposed product in
the target market area.
A. Research Design
A research design is a strategy for answering research questions
through the use of observed data. (McCombes, 2021)

The proponents used descriptive research design because the
approach best suited for the gathering of the relevant information taken
from both primary and secondary data. (McCombes, 2021) The
descriptive research design aims to accurately and systematically
describe a population, situation or phenomenon which helps to answer
many different questions, but not why questions. In this approach, the
proponents are able to systematically measure and observe the data
collected.
The proponents mainly utilized survey questionnaires to determine
the preferences of the target market. Through this, the proponents could
intensively describe the data and develop ways to provide good quality
service and products that would satisfy the target market. They also
utilized interviews to benchmark data for the development of the proposed
business.
B. Subject of the Study
The subject of the study was the six barangays in Tanauan City,
Batangas which are Ambulong, Bañadero, Boot, Gonzales, Maria Paz,
and Wawa. The proponents chose them as their respondents because
they have the potential as buyers and consumers of the service due to the
relative vicinity of them to the target location. As such, the proponents

prepare a survey questionnaire to be distributed to their respondents to
gather the necessary data for the study.
C. Data Gathering Instrument
The survey questionnaire served as an instrument for gathering
data from respondents. This was a very useful tool in gathering relevant
information in terms of determining the demand and supply of the
proposed product. It also served as a useful indicator in analyzing the
customers’ needs, wants, and expectations that are essential for studying
the proposed floating bamboo restaurant.
The survey questionnaires were distributed to the target market for
the proposed service in two ways. A physical door to door visit to
households and people living in the barangays was conducted to gather
written data for the survey questionnaire along with a google form
released online which can be accessed easily. It was separated into five
parts. The first part, the respondent’s profile, outlines the personal data of
the respondents. This includes the name which was optional, location, age
and gender demographics, as well as their phone number and Email. The
second part outlines the respondent’s habits in terms of going to
restaurants. The third part asks the familiarity and experience of the
respondents about a floating bamboo restaurant. The fourth part shows

the service description. Then the 5th part introduces the product and
outlines the willingness of the respondents to avail the proposed service
and order the products in the service along with prices and number of
purchases.
D. Data Gathering Procedure
The proponents underwent multiple procedures to generate the
important facts and information regarding the elements of the proposed
business.
Before the distribution of the questionnaires, the proponents
developed and produced the survey questionnaires before administering
it. After producing it, the created questionnaire was then sent to the
adviser for approval to ensure the correctness and validity. Upon approval,
the proponents began releasing the survey online and went household to
household in the chosen barangays of Tanauan City, Batangas to collect
data from potential customers. After checking the results, the gathered
data was then tallied to determine the demand of the proposed product.
E. Statistical Treatment of Data
The proponents conducted a survey to gather the necessary data
for the study. The study was done upon acquiring the population data of
the chosen barangays of Tanauan City from the Community Affairs Office,
PESO, Tourism Division of Tanauan City. The proponents extracted the
necessary data, including the population count of the selected barangays
in Tanauan City, Batangas from 2018 - 2022. For the year 2022, the
number of households was 5,723. In acquiring the recommended sample
size, the proponents implemented Slovin’s formula to determine the
recommended sample size of respondents. Using a margin of error of 5%
and a confidence level of 95%, the result was 394. Thus the proponents
take 394 as the target number of respondents for the survey.
Demand
Demand refers to the desire of the customer to acquire certain goods or
services while considering their willingness and ability to pay for that product or
service. In this case, it refers to the estimated number of customers within and
around the City of Tanauan that are willing to avail themselves of related
services, specifically the floating bamboo restaurant.
A. Major Consumer of the Service
In identifying a target market, a firm must first account the limits of
its services. The business must know what their service can and cannot
provide. Upon knowing the good and bad points of one’s service, a
business can finally figure out the suitable market for it. For the
proponents’, they decided to propose a floating bamboo restaurant service
that provides a unique dining experience near a hot tourist sector. The
service provides an eating experience where people can enjoy hearty and
enjoyable meals while sitting atop floating bamboo rafts. Along with this,
the service also has tourist attracting elements as it is located on an area
of Taal Lake specifically in Bañadero Baywalk, Tanauan, Batangas. Which
provides an exemplary view of the Taal Lake as well as the Taal Volcano.
Since the nature of the business is similar to a restaurant, meals and food
are part of the selling point of the business. Bringing in delicious Filipino
cuisine to offer to those that avail the services of the floating bamboo
restaurant. As that is the nature of the business, the target market is the
six lakeshore barangays (Gonzales, Wawa, Boot, Maria Paz, Bañadero,
and Ambulong) and nearby municipalities due to the proximity to the
proposed location of the restaurant. Those who are fond of tasty Filipino
cuisine as well as tourists that want to experience something different can
find themselves enjoying the services provided by the business.
B. Historical Demand
Historical demand refers to the estimated demand for a product or
service taken or availed by consumers. Upon learning the past demand
records, new businesses have an idea or hint about whether there is a

place for their business to thrive. As well as the level of demand
associated with such types of products and services.
The proponent visited the Community Affairs Office, PESO,
Tourism Division of Tanauan City to acquire data regarding the location of
Bañadero Baywalk. They were aided and acquired data regarding the
actual population estimate in the target area and selected neighboring
barangays for the past 5 years. Which is then used to achieve a
reasonable assumption with the aid of the data collected from the survey
questionnaire.
Table 1
Historical Demand for Floating Bamboo Restaurant
Year Historical Demand
2018 364,643
2019 391,212
2020 417,698
2021 444,267
2022 470,754
Source: Survey Result

Table 1 shows the historical demand for Floating Bamboo Raft Restaurant
from 2018 to 2022. In 2018 it presents 364,643 and it increased to 470,754 by
the year 2022.
Figure 2. Historical Demand for Floating Bamboo Raft Restaurant
Figure 2 shows the historical demand for Floating Bamboo Raft
Restaurant from 2018 to 2022. The graph indicates that the demand continuously
increases every year.
C. Projected Demand
Projected demand is the data acquired through analyzing the
historical data which enables businesses to estimate and predict the

possible future demand for a product or service. This is vital for anyone
trying to enter any kind of market because it guides them in making better
informed decisions relating to supply management. Projected demand is
also taken into consideration in every business decision since it relies
upon and is influenced by the demand situation.
With the help of the historical demand for the product, the future
demand for the product can be determined. The historical demand serves
as a guide in determining the future success of Island Flavors Restaurant.
After conducting the survey, the proponents collated the data and
determined the historical data to use as a base for calculating the
forecasting method. Upon calculation, they used the forecasting method
with the lowest standard deviation which is the Statistical Straight-Line
Method and then used it to project the demand.
Table 2
Projected Demand for Floating Bamboo Restaurant
Year Projected Demand
2023 497,298
2024 523,825
2025 550,353
2026 576,881
2027 603,408
Table 2 shows the projected demand for Floating Bamboo Raft Restaurant
from 2023 to 2027. The expected number in 2023 is 497,298 and will increase to
603,408 by the year 2027.
Figure 3. Historical Demand for Floating Bamboo Raft Restaurant
Figure 3 shows the historical demand for Floating Bamboo Raft
Restaurant from 2018 to 2022. The graph indicates that the demand continuously
increases every year.

Demand Supply Analysis
In a market economy, the level of demand and supply of all goods and
services jointly determines the price level and quantity of that good or service in
the economy. (Gordon, 2023) The demand-Supply Analysis is a method of
analyzing the differences between the demand and supply. Allowing businesses
to more reliably determine the remaining potential market for certain products
and services which allows for them to make more informed decisions that cater
to these demands. Figuring out the gaps between the demand and the
availability of the supply is a great strategy in figuring out possible opportunities
under the current situation of the market.
A. Market Gap
Table 3
Market Gap
Year Projected Demand Floating Market Gap
Bamboo Restaurant
2023 497,298 497,298
2024 523,825 523,825
2025 550,353 550,353
2026 576,881 576,881

2027 603,408 603,408
Table 3 shows the potential market available for the years 2023 - 2027.
Potential Market refers to the number of possible consumers that have shown
some level of interest in purchasing a particular product or service. As well as the
part of the market that a business can attract in the future. The study obtained
the potential market by analyzing the projected demand and due to the nature of
the uniqueness of the business in the area, the market is possibly free. Signifying
an opportunity for Island Flavors Restaurant.
B. Market Share
Market share refers to the percentage of the market that a company
holds. It provides an idea of the size and scope of the business within its
given market. A high market share signifies a higher profit margin. This in
turn is why this kind of data can also be considered important for the
business as it can be used as a reference point in determining its success.
Table 4
Market Share
Particulars Market Share Percentage (%)
Competitors 0 0.00%
Island Flavors 69,120 13.19%
Potential Remain 454,705 86.81%
Total 523,825 100%
Table 4 shows the market share for the Island Flavors in Tanauan City.
The projected demand served as the total market share which is 523,825. Island
Flavors has a market share of 13.19% which is 69,120 and the Potential Remain
has a percentage of 86.81% with 454,705.
Figure 4. Graph of Market Share
Figure 4 shows the graphical representation of the market share of the
Island Flavors with 13.19% or 13.20% and the Potential Remain of 86.81%.
SWOT Analysis
A. Strengths
Tourist Attraction. The nature of the location and the service
offers a unique dining experience that many tourists would enjoy as not
only would you eat on top of a raft but be able to enjoy the view of Taal
Lake and Taal Volcano while you enjoy your meals.
Unique Service. Due to the nature of the business, the fact of it not
having any other businesses in the target area that are directly similar to it
gives it a competitive advantage.
Cheap. With the aid of proper management and supply flow, the
business is cheap in terms of the creation of the bamboo rafts themselves.
Along with the availability of the ingredients needed to produce the meals
being from local markets which in turn, reduces unnecessary costs due
something like distance.
B. Weaknesses
Lack of Expertise. The expertise for the proposed business is
possibly lacking to provide adequate marketing and commercial
engagement.
Limited Source of Funds. Due to the business starting from
scratch, capital for its establishment and continued operation is limited.
Which results in a slower push to growing the business.
New Brand Name. Since the proposed business was newly
established in the market, its brand name is also new to the eyes of the
consumers which results in a need to market and stand out more within its
market.
High Cost Equipment and Kitchen Structure. The construction of
a new kitchen to be used by the business, as well as acquiring the
necessary resources, equipment, furniture, and labor is costly at the start.
C. Opportunities
Marketing Strategies Expansion. The expansion in marketing
strategies will also provide a good amount of return on investment which
will help grow the business as more eyes will possibly pay attention to it.
Developing a social media presence to help gather first hand experiences
and expanding reach provides ways for the business to attract a lot of
customers.
Business Expansion. Due to the cheap construction of the floating
bamboo rafts, expansion of the restaurant’s capacity to hold customers

will gradually increase which results in more people that the restaurant
can accommodate at any given time.
D. Threats
Slower Growth. Due to limited and a lack of ability to raise capital,
the business growth will be slow.
Competition in the Industry. Competitors may introduce better
and improved services which the consumers may still choose the well
known services that they are used to purchasing from.
Increasing Fixed Costs. Due to the rising prices of ingredients, the
fixed cost will also increase. Which then results in the profit of the
business to decrease.
Constant Volcanic Threat. Because of the nature of the location,
there is still a sense of danger in the area due to the Taal Volcano
showing signs of activity in recent years. Which has the potential to
temporarily stop operations and handle possible repairs which both will
hinder profit.
Marketing Strategies and Programs
The growth of the business depends largely on the marketing
techniques utilized to promote the selling of a product or service and the

measures taken to publicize the business. Efficient promotion and
advertising are critical for these are the elements that can aid in attracting
customers and create brand loyalty among them. Understanding how to
develop strategic promotional tools would help to make better decisions
regarding particular marketing strategies.
A. The Service and Product
Island Flavors Restaurant was proposed to serve the demand for quality
and delicious food brought to the municipality’s tourists at Baywalk of Bañadero
in Tanauan City, Batangas. Its culinary offerings comprise platter and boodle
packages that incorporate Filipino cuisine, infused with distinctive aromas and
flavors that will appeal to everyone's taste buds. Given the close proximity of
Bañadero to Taal Lake, the restaurant can present tourists with freshly caught
fish, which, when combined with the breathtaking view of the lake and the
surrounding natural beauty, will undoubtedly provide a one-of-a-kind dining
experience. Diners can choose from a delectable fish and chicken dish,
vegetable platter, and fresh fruit, which are sure to leave a lasting impression.
Table 5
MENU OF THE FLOATING BAMBOO RAFT RESTAURANT
Morning Menu
Tapsilog
Longsilog
Chicksilog
Coffee
Afternoon Menu: Package Meal
Butter Garlic Tilapia
Chicken BBQ
Ensaladang Talong
Normal or Fried Rice

Watermelon Slices
Atsara
Bottled Water
Add ons
Grilled Shrimp
Grilled Stuffed Squid
Grilled Pork Belly
Boiled Crab
Fried Tawilis
This is the menu for a single platter.
(1 piece of Butter Garlic Tilapia, 1 stick of Chicken BBQ,1 piece of Ensaladang
Talong, 1 cup of Normal or Fried Rice, 2 Watermelon Slices, 1 scoop of Atsara,
and bottled water).
This is the menu for a four person platter.
(4 pieces of Butter Garlic Tilapia,4 sticks of Chicken BBQ, 4 pieces of
Ensaladang Talong, 6 cups of Normal or Fried Rice, 6 Watermelon Slices, 6
scoops of Atsara, 4 bottled water).
This is the menu for a six person platter.
(6 pieces of Butter Garlic Tilapia, 6 sticks of Chicken BBQ, 6 pieces of
This is the menu for a ten person platter.
(10 pieces of Butter Garlic Tilapia, 10 sticks of Chicken BBQ,10 pieces of

a. Service and Product Category/Quality and Style
Belonging to the foodservice industry category. The Island Flavors
Restaurant acts typical to a normal restaurant in terms of taking the
customer’s orders and preparing the meal then serving it to them in the
bamboo rafts. The food is under the dining category where they sit down
and be given freshly cooked meals to enjoy.
b. Brand Name
The name of a business is a critical component that features its objectives,
goals, mission, and vision. It represents the reputation of the business and
provides customers with an insight into the products or services offered.
Furthermore, the business name serves as a unique trademark that distinguishes
it from competitors. The name "Island Flavors" has been chosen by the
proponents for a feasibility study of establishing a floating bamboo raft restaurant
in Bañadero Baywalk, Tanauan City, Batangas due to several reasons. The
name suggests a focus on the local or Filipino cuisine, which could be a unique
selling point of the restaurant, and could appeal to tourists looking for an
authentic dining experience. As you dine on the bamboo raft that floats, it will
give you the feeling of having a meal on an island. Additionally, the name "Island
Flavors" could help to differentiate the restaurant from other dining options in the
area and create a distinct brand identity. Overall, the name aligns well with the
concept of a floating restaurant and emphasizes the unique culinary experience
that the restaurant could offer to its customers.
Figure 5. Island Flavors Logo
Figure 5 of the Feasibility Study showcases the business logo for the
proposed floating bamboo raft restaurant. The logo features a bamboo plant,
which is known for its strength and versatility, making it an excellent choice for
the business's branding. Bamboo is an eco-friendly material that is often
associated with sustainability, nature, and the environment. By incorporating it
into the logo, the proponents of the feasibility study are sending a message that
their business is committed to preserving the environment. Additionally, bamboo
is a common material used in the construction of floating structures, which is the
main feature of the restaurant.
c. Pricing
Price refers to how much a product or service costs in the market. It's a
crucial factor that affects a company's market share and success. Price is also an
important marketing tool that can attract and retain customers.
Customers want to get a fair price for their purchase to feel satisfied with
the business they're dealing with. The proponents ensure that the prices of the
products and services they offer will be worth the money customers pay. They
based the proposed service's price on the cost of the raw materials used.
TABLE 6
PRICE LIST FOR THE MENU
PRODUCT SELLING PRICE SELLING PRICE
w/o VAT with VAT
SINGLE PLATTER Php 250 - Php 400 Php 280 - Php 448
FOUR PERSON Php 960 - Php 1400 Php 1075 - Php 1568
PLATTER
SIX PERSON PLATTER Php 1380 - Php 2000 Php 1545 - Php 2240
TEN PERSON Php 2200 - Php 3210 Php 2464 - Php 3595
PLATTER
TAPSILOG Php 140 - Php 210 Php 157 - Php 235
LONGSILOG Php 140 - Php 210 Php 157 - Php 235
CHICKSILOG Php 140 - Php 210 Php 157 - Php 235
COFFEE Php 50 - Php 100 Php 56 - Php 112
GRILLED SHRIMP Php 300 - Php 450 Php 336 - Php 504
GRILLED STUFFED Php 200 - Php 300 Php 224 - Php 336
SQUID
GRILLED PORK BELLY Php 120 - Php 200 Php 135 - Php 224
BOILED CRAB Php 300 - Php 450 Php 336 - Php 504
FRIED TAWILIS Php 120 - Php 200 Php 135 - Php 224
Table 4 shows the price list of the Island Flavors Restaurant. The prices
were calculated considering the expenses for materials, labor, and overhead,
and the final amount includes markup and value-added tax (VAT). These prices
were determined to be affordable for customers based on the results of a survey.
d. Promotion
Marketers employ promotion as a means to communicate, convince, or prompt
consumers in order to shape their viewpoints or evoke a reaction. The majority of

companies employ some form of promotion, and the strategies employed differ
greatly due to the wide range of business objectives.
Incorporating influencers into the marketing program for the proposed floating
bamboo raft restaurant can be highly effective. Influencers have a dedicated
following, allowing the restaurant to reach a wider audience. Their authenticity
and relatability build trust among their followers, making their recommendations
influential. Influencers excel at storytelling and can effectively showcase the
unique aspects of the restaurant, enticing their followers to visit. Leveraging
influencers' social media presence amplifies the restaurant's reach and
generates user-generated content. By carefully selecting influencers aligned with
the target market, the marketing efforts can be more targeted and focused.
Overall, influencers can greatly contribute to expanding reach, building trust,
creating engaging content, and targeting the right audience for the floating
bamboo raft restaurant.
The proponents also intend to establish a social media presence for the
proposed business, which may include creating a Facebook page or an
Instagram account. Nowadays, numerous businesses leverage this form of
promotion due to its effectiveness and cost-efficiency, considering the
widespread usage of social media platforms. Their objective is to engage a larger
audience by organizing games or giveaways, as people enjoy participating and
sharing such posts.

Generalization
The prolonged success of the business largely depends on its market
potential, which measures the business capabilities to compete with other food
services already existing in the market. The proponents take 394 respondents
from the 6 chosen lakeshore barangays in Tanauan City. Specifically, Ambulong,
Bañadero, Boot, Gonzales, Maria Paz, and Wawa. Along with them possible
tourists from neighboring cities are the target market of the Island Flavors
Restaurant.
Based on the historical demand, the number of households or the
population in the target market of the business is constantly increasing. As such,
the demand for a floating bamboo restaurant increases as well. And considering
the lack of businesses providing the specific service, competition seems scarce.
The proponents concluded that the demand for a floating bamboo restaurant is
not met due to the scarcity of providers in the area. Through this, the proponents
have obtained a clear picture of the marketability of Island Flavors Restaurant.
With this information in mind and considering the production capacity of
the business, the proponents arrived at a 13.19% market share in the first year.
Along with a steady increase in projected demands. It implies a positive market
share that the business will be in great shape in its first and following years.
WIth effective marketing strategies, promotion, and advertising, Island
Flavors Restaurant can possibly get the attention of the target market. Using
social media along with traditional marketing tools to easily capture the public
attention. Since recent years, people tend to have their attentions more online
and in their social media.
CHAPTER III
TECHNICAL STUDY
This chapter presents the production process and the business's activities.
It also includes machinery for production processes as well as other components
for converting raw materials into finished products. This chapter will show if the
business is capable of providing the service from its inputs to the output of
serving the delicacies.
The purpose of this study is to determine the technical feasibility of
establishing Island Flavors Restaurant at Baywalk of Bañadero in Tanauan City,
Batangas. To achieve this goal, the proponents list their long range objectives:
1. To clarify the type of service Island Flavors will provide.
2. The selling operation for the goods and the service process must be described
in detail in order to carry out a seamless and exact production process.
3. To determine the direct and indirect raw materials, machinery, equipment,
manufacturing, and service supplies, as well as the upkeep supplies and required
people, that are required for the operation of the business.
4. To compute and ascertain the company's annual production capacity.

5. To decide on the ideal site, building, and layout for the Island Flavors
Restaurant.
Service Description
In Baywalk of Bañadero in Tanauan City, Batangas, Island Flavors
Restaurant was proposed to meet the demand for high-quality and delectable
meals supplied to the municipality's tourists. The restaurant's menu includes
platter and boodle packages that feature Filipino food and are packed with
enticing fragrances and flavors that will please any palate. In order to give its
customers a wonderful dining experience, Island Flavors Restaurant takes pride
in revolutionizing the concept of fine dining. Visitors may picture themselves
enjoying mouthwatering fare while soaking in the serene sway of the calm waters
and being surrounded by stunning vistas. Island Flavors offers the ideal venue to
create genuinely wonderful moments, whether people are looking for an
outstanding date night, a memorable family celebration, or a distinctive corporate
event. Guests are welcome to celebrate life's most treasured milestones at Island
Flavors Restaurant in a picturesque environment. The restaurant provides the
ideal setting for these important events, whether they are an anniversary,
birthday, wedding, or corporate gathering. Each guest's eating experience at
Island Flavors is tailored to suit their preferences by the devoted staff, who pay
special attention to every little thing. Every element of the event, from the decor
to the meal, has been carefully chosen to make it nothing short of outstanding.
Visitors may be sure that their special moments will be enhanced to new levels,
resulting in memories that will be treasured forever.
Due to Baadero's close proximity to Taal Lake, the restaurant can serve
freshly caught fish to patrons, which—when paired with the lake's beautiful
scenery and the area's natural beauty—certainly makes for a one-of-a-kind
eating experience. A delicious fish and chicken dish, veggie plate, and fresh fruit
are available for diners to select from, all of which are sure to make an impact.
The Island Flavors Restaurant was carefully planned to have as little of an
impact as possible on the local ecosystems. In order to ensure a peaceful
cohabitation with environment, the establishment is committed to employing
sustainable principles throughout its operations. With a strong emphasis on
environmental responsibility, Island Flavors aims to be a role model for
environmentally friendly dining, allowing patrons to indulge in their delectable fare
with peace of mind, knowing that their experience respects and protects the
natural beauty of the surrounds.
Uses of Service
Island Flavors Restaurant serves as a culinary haven for tourists visiting
the Baywalk of Bañadero in Tanauan City, Batangas. Its primary purpose is to
meet the demand for quality and delicious food in the area. The restaurant
specializes in Filipino cuisine, offering platter and boodle packages that tantalize
taste buds with distinctive aromas and flavors. One of its unique features is the
availability of freshly caught fish, sourced from the nearby Taal Lake. This,
combined with the breathtaking view of the lake and the surrounding natural
beauty, creates a one-of-a-kind dining experience. With options ranging from
delectable fish and chicken dishes to vegetable platters and fresh fruit, Island
Flavors Restaurant ensures that there is something to suit every palate. By
delivering flavorful dishes and a captivating ambiance, the restaurant strives to
leave a lasting impression on its customers, providing them with memorable
dining experiences.
Service Process
Ingredient
Procurement
Food
Preparation
Platter and
Package
Assembly
Quality Control
Clean-Up and
Sanitation
Figure 6. Service Process of Island Flavors
The figure 6 shows the manufacturing process of the Island Flavors
restaurant. The figure provides a visual representation of the sequential steps
involved in ingredient procurement, food preparation, platter and boodle package
assembly, quality control, service delivery, customer satisfaction, and clean-up
and sanitation. It serves as a comprehensive overview of the manufacturing
process, showcasing the meticulous attention to detail and commitment to
excellence that Island Flavors Restaurant upholds in its operations.
Service Schedule
Table 7
Service Schedule of Island Flavors Restaurant
Tuesday, Wednesday, Thursday, Friday, Saturday, Sunday
Service time : 7:00 am to 5:00 pm
Time Service
5:30 AM Staff Attendance
6:00 AM Preparation of Equipments and Ingredients.
7:00 AM Opening and Setup
7:30 AM Breakfast Service

10:15 AM Mid-Morning Break
10:30 AM Brunch Service
12:00 PM Lunch Service
2:45 PM Afternoon Break
3:00 PM Afternoon Tea Service
4:30 PM Closing Preparations
5:00 PM Restaurant Closes
Island Flavor Restaurant will be open from 7:00 AM to 5:00 PM, Tuesday
to Sunday.
The survey found that tourists, especially bikers who want to see the
sunrise, start arriving around 5:00 to 6:00 AM, with about 50 visitors present at
that time. Who were either jogging or cycling to the location. Tourists from other
regions arrive at 7:00 AM to explore various scenic destinations. On weekends,
there is a high demand for diners in the area, as tourists come to relax, sightsee,
bike, and eat. Despite this demand, there are only a few dining options available
in the area. Based on the annual report of tourist arrivals, around 60,000 tourists
visit Bañadero Baywalk, Tanauan City, Batangas each year, which indicates a
significant potential market for Island Flavor Restaurant.
After observing peak days and times, the proponents decided to adjust the
opening time and duration of operations to better cater to the tourists. They
noticed that tourists usually eat between 7:00 - 9:00 AM after doing activities
such as sightseeing and picture-taking. They also considered the operating hours
of competitors in the area, which is from 8:00 AM to 5:00 PM.
The proponents also considered the work-life balance of their employees,
their productivity, and engagement, as well as the customers' free time. They
decided on a 10-hour workday, with a 1-hour lunch break and two 15 - minute
breaks, with one of the breaks taken at the employee's discretion during their
shift. This decision was made to ensure employee satisfaction and reduce the
strain of long work hours.
Service Location
The location of the business is a vital part of the total marketing strategy
that will ensure product availability to the right market, at the right quantity, right
condition and right time.

Figure 7. Island Flavors Location
The Island Flavors will be located in Baywalk of Bañadero in Tanauan
City, Batangas. The location is strategically chosen to take advantage of its close
proximity to Taal Lake and the municipality's thriving tourism industry. Situated in
the Baywalk of Bañadero, Tanauan City, Batangas, the restaurant offers a
stunning view of the lake and the surrounding natural beauty. This picturesque
location enhances the overall dining experience, creating a serene and
captivating ambiance for customers. With its prime location, Island Flavors aims
to attract both locals and tourists, providing them with a memorable dining
experience coupled with breathtaking scenery.
Plant Layout
To achieve a more efficient and effective operation, businesses should
prioritize creating a facility layout. Facility layout refers to the arrangement of

different aspects of manufacturing in an appropriate manner to achieve the
desired production results. Which in this case is the desire to provide the service
of a floating bamboo restaurant to its best potential. An efficient facility layout
ensures a smooth and consistent flow of production materials, equipment, and
manpower at the lowest possible cost. Its primary objective is to create an
efficient workflow that can boost the productivity of both equipment and workers.
In terms of facility layout, the restaurant’s design was carefully considered
to provide a comfortable and enjoyable dining experience for its customers. The
floating bamboo restaurant is expected to be built within an approximate area of
600 square meters which is enough to fit a maximum of 16 rafts. But as a startup,
the number of rafts will start with 3 - 4 rafts which will be able to accommodate
around 30 - 40 customers at a time. These rafts will be anchored on the edge of
the lakeshore via bamboo where the view of the Taal Lake can be seen by
tourists.
The facility layout of the restaurant will also include a kitchen area that will
be equipped with basic cooking facilities, food preparation areas, and storage
areas. The kitchen area will be designed to maximize space while ensuring
efficient and hygienic food preparation. The restaurant will also have a separate
area for food storage within the kitchen and will have a sufficient supply of
portable water and electricity. Moreover, the facility will be designed to

incorporate the scenic beauty of the location with a panoramic view of Taal Lake
visible from the restaurant.
When deciding on a location to establish the floating bamboo restaurant, it
is important to study the weather conditions as well as the situation of Taal
Volcano.
By observing the location, as well as cross-referencing the Hazard
Assessment provided by the office of CDRRMC of Tanauan City, the proponents
found that the area is safe in terms of the weather, specifically storm surges.
Although this is the case, in times where there is bad weather that affects the
waves in a negative way and results in a situation where the risk is not tolerable.
Docking the rafts and bringing the employees and customers to a safe place
would be ideal. In addition, the employers should know all the advisories from the
Local Government Unit (LGU) so that they will be adequately prepared for
possible events in the location.
The Taal Volcano is also a current risk in the area. Although this is the
case, based on the Volcanic Hazard Assessment paper the location of the
business is outside of the permanent danger zone of the volcano. Along with this,
the area is safe in terms of ballistic projectiles that may arise on the possibility of
eruption. The area is prone to base surge from the main crater of Taal Volcano,
prone to volcanic tsunami as it is along the lakeshore of Taal Lake, and prone to
ashfall from a future eruption. Plans and contingencies need to be applied and
aught to employees in order to reduce the risk of any of these possibilities so that
the safety of both the employees and the customers are maintained.
First off in the case of typhoons, if the typhoon signal reaches Tropical
Cyclone Wind Signals (TCWS) #3 and above on the location of the business
which is Bañadero Baywalk, Tanauan then business operations will be halted for
the duration of the typhoon to ensure the safety of the customers and employees.
But for situations where the typhoon signal reaches Tropical Cyclone Wind
Signals (TCWS) #1 or #2 then the business may still continue operating but in a
limited manner to ensure safety and the enjoyment of the customers. The
business will make sure that the customers will still have a great experience as
much as possible.
Once the typhoon has ended, the business will perform the after
preparation plan which includes the following:
1. Reviewing the immediate area
2. Communicating with employees and relevant government bodies if
necessary
3. Restoring facilities and operations
4. Organizing recovery and continuation of services.

On the future possibility of the threat of the Taal Volcano erupting, the
business owners shall organize and plan all the possible safety and emergency
supplies along with proper procedures in place before, during and after the
eruption. Moreover, the business owners as well as the employees will be
focused and attentive for signs and warnings relating to the activity of the Taal
Volcano. According to the advisories presented by DOST-PHIVOLCS, if the alert
level for the activity of the Taal Volcano reaches 3 then all activities near Taal
Volcano will need to stop which includes the operations of Island Flavors Floating
Bamboo Restaurant. But in the case of the alert level being raised only to 1 or 2,
activities near Taal Volcano will be limited which includes the business,
specifically preparations and readiness to react to the possibility of the alert level
rising will be observed.
Plan of Action Before Volcanic Activity
1. Listen for emergency information and alerts.
2. Follow advised evacuation or shelter orders. If advised to evacuate,
do so as early as possible.
3. Review all emergency plans and stock all the necessary
emergency supplies.
4. Build Safety Kit for Taal Volcano.
Plan of Action During Volcanic Activity

1. Continue listening to emergency information and alerts.
2. Maintain indoors and avoid outdoor activities for the employees and
customers.
Plan of Action After Volcanic Activity
1. Listen to the safety advisory of government officials
2. Check the safety and financial issues of the employees in the
business
3. Limit activities of the business
4. Organize recovery of operations and facilities
The business will prioritize their employees and customers. Aiming for the
enjoyment of the scenery and the food for the customers so that during a disaster
everyone would remain calm and provide a plan and follow effectively.
Below is the facility layout of the proposed business:
Layout View
Figure 8. Floor Plan of Island Flavors Restaurant’s Kitchen
This displayed design of the floor plan of restaurant’s kitchen is made in an effort
of providing a safe and convenient working environment for the employees.
Necessary conditions were considered by the proponents upon the completion of
the presented floor plan.

Figure 9. Restaurant Front View
Figure 9 shows the front view of the floating bamboo raft restaurant. From
this view, we can see the restaurant’s kitchen area.
Figure 10. Main Kitchen and Office Layout

Figure 10 shows the kitchen where the dishes will be prepared as the
customers order them and office layout where employees work, collaborate, and
innovate on a daily basis.
Figure 11. Floating Hut Design
Figure 11 shows the proposed design of the floating hut where people can
consume the food they ordered.

Figure 12. Top View of the Floating Hut
Figure 12 is an aerial or top view of the floating hut design. It provides a
bird's eye view of the layout and structure of the floating hut from above.
Figure 13. Side View of the Floating Hut

Figure 13 is a side view of the floating hut design, which provides a visual
representation of the floating hut from a lateral perspective.
TABLE 8
Tools and Equipment for Construction of Restaurant’s Kitchen
TOOLS/EQUIPMENT QUANTITY UNIT COST AMOUNT
COST IN
PHP
Bamboo 135 pcs 90 12,150
Door 2 sets 1,500 3,000
Portland cement 35 pcs 245 8,575
S1 sand 2 cu.m. 600 1,200
Gravel 2.5 cu.m. 530 1,325
10mm rebars 40 pcs 160 6,400
#16 tie wire 8 kgs 88 704
Nails 3 kgs 80 240
10 ft. Long span roof 2 pcs 1,500 3,000

2x4 coco lumber 20 pcs 225 4,500
30cm X 30cm Non 240 pcs 41 9,840
Skid White Ceramic
Tile
Cement mortar 5 bags 245 1,225
White cement filler 20 kgs 77 1,540
Vinyl adhesive 1 gallon 77 77
Total 56,026
Table 9
Labor in Construction of Restaurant’s Kitchen
Workers Cost Days of Work Amount Cost
in PHP
3 500 20 30,000
Total 30,000
TABLE 10
Tools and Equipment in Construct in Bamboo Raft
TOOLS/EQUIPMENT QUANTITY UNIT COST AMOUNT
COST IN PHP
Bamboo 140 pcs 90 12,600
Wires 4 kg 88 352
Nails 8 kgs 80 640
Nipa Hut Roof 8 pcs 500 4,000
Total 19,192
Table 11
Labor in Construction of Bamboo Raft
Workers Cost Days of Work Amount Cost in
PHP
2 500 5 5,000
Total 5,000
KITCHEN TOOLS AND EQUIPMENT

Kitchen tools, equipment, and supplies are crucial elements in the
functioning of a business. They are utilized to perform necessary tasks and
activities. These items are essential for the staff to efficiently prepare food and
meet customer demands.
TABLE 12
Kitchen Tools and Equipment
Tools/Equipment Quantity Unit Cost Amount Cost in
PHP
Chest Freezer 1 pc 10,500 10,500
Dry Storage 1 pc 900 900
Drying Rack 1 pc 750 750
Faucet 1 pc 135 135
Grill 1 pc 1,100 1,100
Sink 1 pc 1,500 1,500
Casserole Set 1 set 350 350
Chopping Board 1 pc 35 35
Flatware Set 10 sets 100 1,000
Frying Pan Set 1 set 400 400
Gas Stove 1 pc 1000 1000
Glassware set 1 set 250 250
(water)
Knife Set 1 set 350 350
Measuring Tools 1 set 326 326
Set
Pitcher 10 pcs 80 800
Heavy Duty Rice 1 pc 3579 3,579
Cooker
Table Napkin 20 pcs 45 900
Holder
Tray Set 2 sets 150 300
Total 24,175
STORE SUPPLIES
Table 13
Store Supplies
Tools/Equipment Quantity Unit Cost Amount
Cost in Php
Apron 5 pcs 80 400
Cooking Visor 5 pcs 30 150
Disposable Gloves 5 bags 15 75
First Aid Kit 1 bag 1,200 1,200
Hairnet 6 pcs 30 180
Kitchen Gloves 2 bags 50 100
Life Jacket 10 pcs 250 2,500
Tissue 10 bags 30 300
Trash Bag 15 bags 50 750
TOTAL 5,655
OFFICE SUPPLIES
Office supplies refer to the materials and tools used to complete
administrative tasks and manage paperwork for a specific business. It is of
utmost importance for every business to maintain a consistent availability of
office supplies. These supplies encompass various instruments and equipment
utilized for storing business data and monitoring the organization's transactions.
Table 14
Office Supplies
Tools/Equipment Quantity Unit Cost Amount Cost
in PHP
Ballpen 2 pcs 30 60
Bond paper 2 ream 150 300
Business Receipt 3 pcs 40 120
Calculator 2 pcs 120 240
Computer set 1 set 13,500 13,500
Envelope 20 pcs 5 100
Folder 20 pcs 5 100

Paper clip 10 pc 5 50
Printer 1 pc 2,000 2,000
Record book 1 pc 45 45
Scissor 1 pc 30 30
Scotch tape 1 pc 25 25
Staple wire 2 pcs 20 40
Stapler 1 pc 100 100
Cash register 1 pc 2,500 2,500
Total 19,210
MAINTENANCE SUPPLIES
Maintenance supplies are necessary for maintaining cleanliness within the
company. Additionally, in certain situations, these supplies can also serve as an
emergency kit.
TABLE 15
Maintenance Supply
Tools/Equipment Quantity Unit Cost Amount
Cost in PHP
Broom 2 pcs 75 150
Bottle Sprayer 3 pcs 45 135
Dust Pan 2 pcs 70 140
Fire Extinguisher 2 pcs 1850 3700
Table Rags 3 pcs 50 150
Trash Bins 3 pcs 150 450
TOTAL 4,725
UTILITIES EXPENSE
TABLE 16
Utilities Expense
DESCRIPTION MONTHLY ANNUAL
CONSUMPTION IN PHP CONSUMPTION IN PHP
Rent 10,000 120,000

Electricity 10, 000 120,000
Water 3,000 36,000
LPG 4,000 48,000
TOTAL 27, 000 324, 000
Direct Materials
One of the essential aspects of the operations of a restaurant is the
suppliers. Without them, a restaurant will not function since it relies on its
suppliers to deliver the raw materials that will be used for its production. With the
establishment of the restaurant, the proponents not only want to generate profit
for the business but also help its neighboring businesses to thrive and prosper.
Having an understanding of this, the proponents focused on finding local
suppliers in the vicinity who are able to reliably provide the supplies as well as
having a good reputation in Tanauan. The floating bamboo restaurant will require
two types of raw materials for their production: animal-based and plant-based
raw materials.
The suppliers of Island Flavors Floating Bamboo Restaurant are all known
suppliers that can be found in the local public market of Tanauan. The supplies
that the restaurant will rely on will be brought to the restaurant via the proponents
or any related worker traveling to the shops of the suppliers from the local public
market and bringing the raw materials back to the restaurant. This will be done
for both the animal-based and plant-based raw materials. For the animal-based
raw materials, the order will consist of tilapia, pork, and chicken meat. Both of
which are constantly being sold in Tanauan’s public market. The supplier for
these will be mainly Karla and Apol Fresh Meat and Fish Retailer. As for the
supply of plant-based raw materials such rice, vegetables, and fruits, the
suppliers will also be found in Tanauan Public Market. The supplier of rice will be
Bryan and Joana Rice Store.
The supplies will be bought and delivered to the floating restaurant every
two days to ensure the freshness of the supplies, especially the fish. Also, the
proponents considered the limit of the supplies that the suppliers can provide as
well as the limit of how much the proponents can bring back to the restaurant at a
time. According to the local suppliers, there will be no problem in supplying the
needed raw materials for the restaurant.
Table 17
Ingredients and Description
Ingredients Description Price

Tilapia Tilapia is a freshwater Php 170/kilo
fish inhabiting shallow
streams, ponds, rivers,
and lakes. Its shape is
much like a sunfish or
crappie
Garlic Garlic is a strong- Php 150/Kilo
smelling pungent-tasting
bulb, used as a flavoring
in cooking and in herbal
medicine
Oyster Sauce Oyster sauce is made of Php 41.75/170g bottle
oysters and soy sauce,
used especially in
chinese cooking.
Butter Butter is a yellow-to- Php 144/227g stick
white solid emulsion of
fat globules, water, and
inorganic salts produced
by churning the cream
from cows' milk. Usually
used as a spread and as
a cooking fat.
Salt Salt is a white crystalline Php 25/kilo
substance that gives
seawater its
characteristic taste and
is used for seasoning or
preserving food.
Ground Pepper Ground pepper is a Php 185/kilo
finely powdered black or
white pepper made by
grinding dried
peppercorns. It is
commonly used as a
seasoning in cooking
and as a condiment at
the table.
Chicken Leg Chicken leg is the leg Php 170/kilo
portion of a chicken,
including the thigh and
drumstick. It is a
common cut of meat
used in cooking and can
be prepared in a variety
of ways, such as
roasted, grilled, or fried.
Soy Sauce Soy sauce is a salty Php 51/L
brown sauce made from
soybeans, roasted grain,
water, and salt. It is a
popular condiment and
ingredient in Asian
cuisine and is used to
add flavor to dishes.

Calamansi Calamansi is a small Php 45/Kilo
hybrid citrus plant which
bears fragrant white
flowers followed by small
round fruit that is native
to the philippines and
grown as a houseplant.
Banana Ketchup Banana ketchup is a Php 63.55/kilo
sweet and tangy
condiment made from
mashed bananas, sugar,
vinegar, and spices. It is
commonly used in
Filipino cuisine as a
dipping sauce or as a
marinade for meat.
Eggplant Eggplant is a vegetable Php 169/kilo
with a dark purple skin
and white flesh that is
commonly used in
Mediterranean and
Asian cuisine. It can be
grilled, roasted, or fried
and is often used in
dishes such as
moussaka and eggplant
parmesan.
Tomato Tomatoes are glossy red Php 80/kilo
or occasionally yellow,
pulpy edible fruit that are
eaten as a vegetable or
in a salad.
Onion Onion is a bulbous Php 47/kilo
vegetable with a papery
outer layer and white,
yellow, or red inner
layers. It is a common
ingredient in cooking and
is used to add flavor to
dishes.
Chili Pepper Chili pepper is a spicy Php 39/100g
vegetable that is
commonly used in
cooking to add heat and
flavor to dishes. There
are many varieties of
chili peppers, ranging
from mild to extremely
hot.
Sugar Sugar is a sweet, Php 42/Kilo
crystalline substance
made from sugar cane
or sugar beets. It is used
to sweeten foods and
drinks and is a common
ingredient in baking.
White Vinegar White vinegar is a clear, Php 41.95/L
acidic liquid made from
fermented grain alcohol.
It is commonly used in
cooking and as a
condiment and is often
used in salad dressings
and marinades.
Cooking Oil Cooking oil is a plant, Php 335/4 Kilo
animal, or synthetic fat
used in frying, baking,
and other types of
cooking. It is also used
in food preparation.
Rice Rice is a grain that is a Php 50/Kilo
staple food in many
cultures. It is commonly
used in cooking and can
be prepared in a variety
of ways, such as boiled,
steamed, or fried.
Green Peas Green peas is a small, Php 60/Kilo
round vegetable that is
commonly used in
cooking as a side dish or
ingredient in soups,
stews, and casseroles.
Eggs Egg is a protein-rich food Php 160/Tray of 10
produced by female
animals, typically
chickens. They are a
versatile ingredient in
cooking and can be
prepared in a variety of
ways, such as boiled,
fried, or scrambled.
Watermelon Watermelon is a large, Php 78/Kilo
juicy fruit with a green
rind and pink or red
flesh. It is commonly
eaten as a dessert or
snack and is a good
source of hydration.
Bottled Water Bottle water is Php 11/Kilo
essentially a purified
water that is packaged in
a plastic or glass bottle
for drinking. It is often
used as a convenient
and portable source of
hydration.
Green Papaya Green papaya is an Php 90/Kilo
unripe papaya fruit with
a green skin and white

flesh. It is commonly
used in Southeast Asian
cuisine and can be
grated or sliced and
used in salads and other
dishes.
Carrots Carrots are tapering Php 150/Kilo
orange colored root
eaten as a vegetable
Bell Pepper Bell pepper is a large Php 15
bell-shaped sweet
pepper.
Green Chili Pepper Green chili peppers are Php 109/Kilo
a common vegetable
used in indian kitchens
for their spicy taste
Ginger Root Ginger root is widely Php 38/200 g
used as a spice and
flavoring aget in cooking,

as well as in traditional
medicine.
Sliced Beef Sirloin Sliced beef sirloin are Php 400/450 g
sliced cuts from beef
sirloin which is tender
and full of flavour.
Pineapple juice The juice of a pineapple Php 107.80/ 1.36 L
Brown Sugar Unrefined or partially Php 80/1 k
refined sugar
Longganisa Longganisa is a filipino Php 156/500g 9 pcs total
style ground pork
sausage
Instant Coffee Instant coffee is a type of Php 128.04/ 58g x 10
coffee made from dried saches
coffee extract
Shrimp Shrimp is a small free Php 270/0.5 k
swimming crustacean
with an elongated body

Garlic Chives Garlic chives is related Php 32.00/50g
to the onion and having
slender leaves used as a
seasoning
Pork Belly A pork belly is the cut of Php 460/1 k
pork that comes from the
belly of a pig.
Squid Squid is an edible sea Php 459/1 k
creature that has a long
body with eight arms and
two tentacle
Crab A crab is a sea creature Php 700/1 k
with a flat round body
covered by a shell, and
five pairs of legs with
large claws on the front
pair.
Tawilis The tawilis is a small Php 119/ 500g
freshwater sardine found

exclusively in the
Philippines.
Waste Disposal
In order to effectively manage waste disposal within the restaurant's
operations, a systematic approach to segregating and removing garbage is
necessary. The proponents propose utilizing three different types of garbage bins
- one for biodegradable waste, another for recyclable materials, and a third for
non-biodegradable trash. A designated employee will be responsible for cleaning
and properly disposing of the waste. In accordance with the City Environment
and Natural Resources Office of Tanauan City, garbage collection schedule for
Bañadero Baywalk is every Wednesday, 7:30 AM and 3 PM. The waste
contractor responsible for collection is Persan Construction, Inc.
This approach not only benefits the environment, but also ensures the
cleanliness of the community. Proper waste disposal is also a key obligation for
business establishments to fulfill, as it allows for environmentally responsible
production, storage, transport, and disposal of controlled waste.
Direct Labor Requirements
Direct labor requirements are a critical component in the realm of workforce
planning and production management. The determination of direct labor
requirements involves a comprehensive analysis of factors such as workload,

labor standards, production goals, efficiency, skill requirements, and scheduling
considerations.
By meticulously assessing the direct labor requirements, businesses can
optimize their workforce utilization, minimize costs, and ensure timely project
completion. This process entails breaking down the work into manageable units,
establishing labor benchmarks, and considering the desired production output
within specified timeframes. Efficient resource allocation, accurate cost
estimation, and effective workforce management all hinge upon an accurate
assessment of direct labor requirements.
Moreover, understanding the skill levels and qualifications necessary for
specific tasks enables organizations to match the right personnel to the job at
hand. With that, a total of seven (7) workers are required to establish the Island
Flavors Restaurant. The list of the workers to be employed by the restaurant is
presented in the table below.
TABLE 18
Labor Requirement
POSITION COUNT DAILY IN MONTHLY IN ANNUALLY
PHP PHP IN PHP
Cashier 1 480 12,480 150,920

Cook 2 420 10,920 131,871
Server 2 375 9,750 117,450
Crew 2 350 9,100 109,540
TOTAL 2,625 68,250 1,178,420
Generalization
The feasibility study for Island Flavors Restaurant at Baywalk of Bañadero
in Tanauan City, Batangas requires a diverse range of professionals and
administrative personnel to assess the viability and potential success of the
project. This team encompasses roles such as project manager, market
researcher, financial analyst, culinary expert, tourism specialist, architect/interior
designer, legal consultant, and administrative support personnel like a secretary.
By assembling a multidisciplinary team with expertise in various areas, the
feasibility study can comprehensively evaluate factors such as market demand,
financial feasibility, culinary offerings, tourist appeal, architectural considerations,
legal compliance, and administrative support. This holistic approach ensures a
thorough analysis and informed decision-making process regarding the
establishment of Island Flavors Restaurant.
Each team member contributes their specific skills and knowledge,
collaborating to gather data, conduct analyses, and provide recommendations

that shape the feasibility study's conclusions. The involvement of administrative
personnel, such as a secretary, also ensures effective communication,
organization, and documentation throughout the study.
By leveraging the expertise and efforts of this diverse team, the feasibility
study aims to provide a comprehensive assessment of Island Flavors
Restaurant's potential success, contributing to informed decision-making and
setting the foundation for a viable and thriving dining establishment.
CHAPTER IV
Financial Study
Financial study involves assessing the project's potential for success
based on factors such as initial funding, expenditures, sales, and returns on
investment. The purpose of a financial analysis is to evaluate the different
expenses that could arise during the establishment of the business.
The main objective of this study is to assess the financial feasibility of the
Bamboo Raft Restaurant. Specifically, it focuses on examining the following
objectives:
1. To determine the projected cost of the Bamboo Raft Restaurant.
2. To specify the financial assumptions used in the projected financial
statement.
3. To present financial statements to assess the business's financial
condition and performance.
4. To evaluate the business's financial viability using ratios, break-
even point, and payback period.
Total Project Cost
Table 19
Total Project Cost
Island Flavors
TOTAL PROJECT COST
Fixed Investment
Leasehold Improvement 110,218.00
Kitchen Equipment 17,679.00
TOTAL FIXED INVESTMENT 127,897.00
Initial Working Capital

Within the First Three Months of
Business
Direct Materials Purchases (3 months) 627,600.00
Salaries Expense (3 months) 216,060.00
Employees Benefits (3 months) 27,989.10
Utilities Expense (3 months) 51,000.00
Kitchen Tools and Supplies 6,496.00
Store Supplies 5,885.00
Maintenance Supplies 4,725.00
TOTAL INITIAL WORKING CAPITAL 939,755.10
Pre-Operating Expense
Permits and Licenses Expense 6,475.00
Prepaid Rent 30,000.00
TOTAL PRE-OPERATING EXPENSE 36,475.00
Total 1,104,127.10
Add: Contingency Fund 195,872.90
TOTAL PROJECT COST 1,300,000.00
*Note: All values in Philippine peso

Table 19 shows the breakdown of the total project cost for Island Flavors,
detailing the expenses needed to establish the proposed business. The
proponents have precisely determined these costs, ensuring accuracy by
sourcing information from reliable and trustworthy sources.
Initial Capital Requirements
Table 20
Total Capital Contribution
Partners Capital Contribution
Intacto, John Edward J. ₱325,000.00
Jaen, Kent Amiel L. ₱325,000.00

Lirag, Francis Ray A. ₱325,000.00
Loremia, Jasmin Joy M. ₱325,000.00
Total Capital Contribution ₱1,300,000.00
Table 20 shows the initial capital requirements of Island Flavors: Floating
Bamboo Raft Restaurant, representing the amount of funding required to start
the business. The initial capital is provided through the partners' individual
investments, with each partner contributing ₱325,000. As a result, the total
capital contribution from the partners amounts to ₱1,300,000.
A. Financial Assumptions
The revenue and expenditure forecasts for the next five years will be
based on the assumptions presented in this chapter. This will also be used to
assist the owners in making an informed decision regarding their company. The
assumptions will cover a period of five-year projection from 2024-2028 and will
be using a calendar year.
1. Annual Operating Days

● The official opening date and start of the business will be January 1, 2024
--- following a calendar-year.
● The business is VAT-registered since the Sales Revenue is expected to
be greater than P3,000,000 annually. The business is subject to 12%
Value Added Tax.
2. Assets
● The company will rent, and all of the equipment, furniture & fixtures and
supplies will be purchased using company's cash. Straight-line method will
be used in computing the depreciation of noncurrent assets.
● All sales are paid by customers. No Accounts Receivable will be recorded
in the transactions. Moreover, there would also be no receivables or
provision for doubtful accounts.
● There will be no additional acquisitions of long-term assets in the next five
years.
● Petty Cash Fund is P15,000, to be used for small expenses, while the rest
of the money is encouraged to be invested in the bank for safeguarding
and monitoring purposes.
● Desired materials ending inventory is 2% of the Raw Materials to be
Purchased for the Year.
3. Liabilities
● Utilities Payable shown in the Balance Sheet represent the utilities
expense for the last month of the accounting period, to be paid next
month.
● Statutory Contribution Payables such as SSS, Philhealth and PAGIBIG
are remitted every month. Payables shown in the Balance Sheet represent
the contributions for the last month of the accounting period, to be paid
next month.
● VAT Payable shown in the Balance Sheet represents the last quarter of
the current period, to be paid on the next accounting period.
● Withholding Tax Payable shown in the Balance Sheet represents the last
month of the current period, to be paid on the next accounting period.
● Income Tax Payable shown in the Balance Sheet represents the last
quarter of the current period, to be paid on the next accounting period.
4. Equity
● The partners contributed a total of P1,300,000 capital from their personal
savings. Each of the 4 partners contributed P325,000.
● The partners divide their profit and loss based on their initial capital
contribution.
● Each partner can withdraw 75% of his/her share in the annual net income.
5. Revenue/Sales
● Sales in units are based on the Demand and Supply Analysis, also
considering the decreasing allocated percentage for rejects every year.
● Selling Price of units are expected to increase by 5.8% annually.
● Gross sales will be computed by multiplying the number of units sold to
customer with the price of the product.
● All sales revenue will be paid in cash. (No accounts receivable should be
assumed)
6. Expenses
● Employees will be paid twice a month, every 15th and 30th day of each
month. Salaries expense is expected to increase by 3% every year of
operation and is paid in cash.
● All supplies acquired will be paid in cash, and are increasing by 5.8%
every year based on PSA's 2022 annual average inflation rate
● Depreciation is calculated based on the fixed asset cost, less salvage
value and depreciated according to its estimated useful life. The value of
an asset is reduced uniformly over each period until it reaches its salvage
value. Salvage value will be 5% of the cost of the fixed asset.
● Rent and Utilities Expenses (Water and Electricity) will be paid in cash,
and are increasing by 5.8% every year based on PSA's 2022 annual
average inflation rate

● Internet in Utilities Expenses will be paid in cash, and will remain constant
annually.
● Rent Expense and Utilities Expense are to be allocated equally between
production and selling & admin expenses.
7. Permits and Taxes
● Permits and licenses will be paid in cash annually(except for the one-time
registration payment), and remains constant annually.
● As per CREATE Law, Income tax rate is 20% when the annual net income
is less than P5,000,000. 25% income tax rate if otherwise.
Sources of Financing
The initial investment of ₱1,300,000 for Island Flavors: Floating Bamboo
Raft Restaurant was funded collectively by four individuals. Each investor
contributed ₱325,000 towards the business financing.
Financial Statements
Financial statements are formal reports that provide a condensed and
presented summary of a business or organization's financial activities and
performance. These reports give a brief overview of the company's financial
status, operational results, and cash flow during a specified period. The main
types of financial statements include the Income Statement, Balance Sheet,
Cash Flow Statement, and Statement of Changes in Equity.

Projected Income Statement
The projected income statement is developed using assumptions, market
trends, historical data, and management's expectations regarding financial
factors. It supports businesses in planning and predicting their financial results,
identifying areas of growth or concern, and making informed decisions about
resource allocation and strategic actions. By reviewing the projected income
statement, stakeholders can evaluate the expected profitability and financial well-
being of the company. It enables them to assess the potential effects of different
scenarios or strategies on the company's financial performance, facilitating risk
assessment and informed decision-making.

Table 21
Projected Income Statement
For the Years Ended December 31, 2024 - 2028
Notes 2024 2025 2026 2027 2028

Sales 1 4,406,614.29 4,934,577.46 5,523,512.50 6,181,617.86 6,918,811.61
Less: Cost of Goods Sold 2 3,235,491.81 3,577,705.49 3,913,259.59 4,284,446.12 4,695,982.88
Gross Income 1,171,122.48 1,356,871.97 1,610,252.91 1,897,171.74 2,222,828.73
Less: Selling and Administrative

Expenses
Compensation
3 181,179.60 187,098.20 192,232.00 198,082.10 204,091.80
Expense
Utilities
4 102,000.00 106,524.00 111,310.39 116,374.39 121,732.11
Expense
Rent Expense 5 60,000.00 63,480.00 67,162.50 71,058.00 75,180.00
Depreciation -
Leasehold 6 11,021.80 11,021.80 11,021.80 11,021.80 11,021.80
Improvement
Store Supplies
7 5,885.00 6,226.50 6,588.00 6,970.25 7,374.25
Expense
Maintenance
Supplies 8 4,725.00 4,998.75 5,288.50 5,595.25 5,919.75
Expense
Permits and
Licenses 9 6,475.00 5,445.00 5,445.00 5,445.00 5,445.00
Expense
Total Selling and Administrative
371,286.40 384,794.25 399,048.19 414,546.79 430,764.71
Expenses
Net Income Before Tax 799,836.08 972,077.72 1,211,204.71 1,482,624.94 1,792,064.02

Less: Income Tax (20%) 159,967.22 194,415.54 242,240.94 296,524.99 358,412.80

Net Income After Tax 639,868.86 777,662.18 968,963.77 1,186,099.95 1,433,651.21
Table 21 shows the projected income statement for Island Flavors:
Floating Bamboo Raft Restaurant, revealing that its net income increased from
Php 639,868.86 in 2024 to Php 1,433,651.21 in 2028. This upward trend signifies
that the business effectively utilizes its assets to generate revenue.
Cash Flow Statement Analysis
Cash flow statement analysis entails examining and interpreting the
information provided in a company's cash flow statement. Its primary objective is
to comprehend the origins and applications of cash within the organization during
a specified timeframe. This analysis is crucial for understanding the company's
cash flow patterns, evaluating its capacity to finance operations, investments,
and obligations. It plays a vital role in assessing the company's financial well-
being, identifying areas of cash flow strength and weakness, and making
informed decisions pertaining to financial management and strategic planning.

Table 22
Projected Statement of Cash Flows
For the Years Ended December 31, 2024 - 2028
Pre-
2024 2025 2026 2027 2028
Operating
Cash Flow From Operating Activities
Received From Customers - 4,935,408.00 5,526,726.75 6,186,334.00 6,923,412.00 7,749,069.00

Payment for Store Supplies - (5,885.00) (6,226.50) (6,588.00) (6,970.25) (7,374.25)
Payment for Maintenance Supplies - (4,725.00) (4,998.75) (5,288.50) (5,595.25) (5,919.75)
Payment for Kitchen Tools and Supplies - (6,496.00) (6,873.00) (7,271.50) (7,693.75) (8,140.00)
(2,510,400.00 (2,811,473.0 (3,147,453.0 (3,522,858.0 (3,941,958.7
Payment for Direct Materials -
) 0) 0) 0) 5)
Payment for Salaries - (796,623.60) (819,193.20) (844,302.60) (869,954.70) (896,262.00)
Payment for 13th Month Pay - (72,020.00) (74,182.00) (76,406.00) (78,699.00) (81,060.00)
Payment for Utilities Expense - (187,000.00) (212,294.00) (221,823.05) (231,904.79) (242,571.27)
Payment for Rent Expense - (110,000.00) (126,960.00) (134,325.00) (142,116.00) (150,360.00)
Payment for Prepaid Rent (30,000.00)
Payment for SSS and EC Premiums - (112,420.00) (124,950.00) (128,240.00) (132,370.00) (136,570.00)
Payment for Philhealth Premiums - (36,788.40) (44,834.20) (46,175.70) (47,200.95) (48,523.55)
Payment for PAG-IBIG Premiums - (15,400.00) (16,800.00) (16,800.00) (16,800.00) (16,800.00)
Payment for Permits and Licenses - (6,475.00) (5,445.00) (5,445.00) (5,445.00) (5,445.00)
Payment for VAT - (194,866.71) (283,145.60) (316,925.81) (354,657.40) (397,014.77)
Income Taxes Paid - (119,975.41) (185,803.46) (230,284.59) (282,953.98) (342,940.85)
Net Cash provided (used) by Operating
(30,000.00) 756,332.87 803,548.03 999,005.25 1,218,192.93 1,468,128.81
activities
Cash Flow from Investing Activities
Cash Paid For Leasehold Improvement (110,218.00) - - - - -

Cash Paid For Kitchen Equipment (17,679.00) - - - - -
Net Cash provided (used) by Investing
(127,897.00) - - - - -
Activities
Cash Flow from Financing Activities
Cash Received from Capital Contribution 1,300,000.00 - - - - -

(1,076,000.0
Cash Withdrawals for Personal Use - (480,000.00) (584,000.00) (728,000.00) (888,000.00)
0)
Net Cash provided (used) by Financing (1,076,000.0
1,300,000.00 (480,000.00) (584,000.00) (728,000.00) (888,000.00)
Activities 0)
Increase (Decrease) in Cash 1,142,103.00 276,332.87 219,548.03 271,005.25 330,192.93 392,128.81

Add: Beginning Balance - 1,142,103.00 1,418,435.87 1,637,983.91 1,908,989.16 2,239,182.09
Ending Balance 1,142,103.00 1,418,435.87 1,637,983.91 1,908,989.16 2,239,182.09 2,631,310.90
Table 22 shows the cash flow statement of Island Flavors: Floating
Bamboo Raft Restaurant for the years 2024 to 2028. It shows the cash flow
generated from operating activities, investing activities, and financing activities.
The table indicates that the business had an ending cash balance of Php
1,418,435.87 in 2024, Php 1,637,983.91 in 2025, Php 1,908,989.16 in 2026, Php
2,239,182.09 in 2027, and Php 2,631,310.90 in 2028.
Project Statement of Changes in Equity
A projected statement of changes in equity is a financial statement that
predicts the anticipated modifications to the equity section of a company's
balance sheet for a specified future period. It provides an overview of the
expected adjustments to shareholders' equity, including projected net income,
dividends, share issuances or repurchases, and other relevant transactions
affecting equity.
Table 23
Statement of Changes in Partner's Equity
For the Years Ended December 31, 2024
Intacto, Jaen, Lirag, Loremia,

TOTAL
Capital Capital Capital Capital
Beginning Capital 325,000.00 325,000.00 325,000.00 325,000.00 1,300,000.00
Add: Share in the Net Profit 159,967.22 159,967.22 159,967.22 159,967.22 639,868.86
Running Total 484,967.22 484,967.22 484,967.22 484,967.22 1,939,868.86
Less: Withdrawals (120,000.00) (120,000.00) (120,000.00) (120,000.00) (480,000.00)
Partner's Equity 364,967.22 364,967.22 364,967.22 364,967.22 1,459,868.86
Island Flavors

TOTAL
Running Total 559,382.76 559,382.76 559,382.76 559,382.76 2,237,531.04
Partner's Equity 413,382.76 413,382.76 413,382.76 413,382.76 1,653,531.04
Island Flavors

TOTAL
Running Total 655,623.70 655,623.70 655,623.70 655,623.70 2,622,494.81
Partner's Equity 473,623.70 473,623.70 473,623.70 473,623.70 1,894,494.81
Island Flavors

TOTAL
Add: Share in the Net Profit 296,524.99 296,524.99 296,524.99 296,524.99 1,186,099.95
Running Total 770,148.69 770,148.69 770,148.69 770,148.69 3,080,594.76

Partner's Equity 548,148.69 548,148.69 548,148.69 548,148.69 2,192,594.76
Island Flavors

TOTAL
Add: Share in the Net Profit 358,412.80 358,412.80 358,412.80 358,412.80 1,433,651.21
Running Total 906,561.49 906,561.49 906,561.49 906,561.49 3,626,245.97
Less: Withdrawals (269,000.00) (269,000.00) (269,000.00) (269,000.00) (1,076,000.00)
Partner's Equity 637,561.49 637,561.49 637,561.49 637,561.49 2,550,245.97
Table 23 presents the projected statement of changes in equity for the
years 2024 to 2028. The table reveals that the total equity increases from Php
1,459,868.86 in 2024 to Php 2,550,245.97 in 2028. This upward trend indicates
the stability of the business in the following years.
Balance Sheet
Balance sheet is a financial statement that offers a snapshot of a
company's financial condition at a specific point in time, usually at the end of a
reporting period. It presents the company's assets, liabilities, and shareholders'
equity. The balance sheet provides important insights into the company's
financial well-being, including its financial health, ability to fulfill obligations,
liquidity, and capital structure. It enables stakeholders to evaluate the company's

capacity to meet financial commitments, analyze its asset mix and funding
sources, and understand its overall financial position.

Table 24
Projected Balance Sheet
December 31, 2024 - 2028
Notes Pre-Operating 2024 2025 2026 2027 2028
ASSETS
Current Assets:
Cash 10 1,142,103.00 1,418,435.87 1,637,983.91 1,908,989.16 2,239,182.09 2,631,310.90
Raw Materials
2 - 44,828.57 51,101.45 57,226.55 64,052.71 71,673.17
Inventory
Prepaid Rent 11 30,000.00 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00
Total Current
1,172,103.00 1,483,264.45 1,709,085.35 1,986,215.70 2,323,234.80 2,722,984.08
Assets
Noncurrent
Assets:
Leasehold
Improvement 12 110,218.00 99,196.20 88,174.40 77,152.60 66,130.80 55,109.00
(Net)
Kitchen
Equipment 13 17,679.00 14,319.99 10,960.98 7,601.97 4,242.96 883.95
(Net)
Total Non-
127,897.00 113,516.19 99,135.38 84,754.57 70,373.76 55,992.95
current Assets
Total Assets 1,300,000.00 1,596,780.64 1,808,220.73 2,070,970.27 2,393,608.56 2,778,977.03
LIABILITIES AND EQUITY

Liabilities
Current
Liabilities:
Utilities Payable 14 - 17,000.00 17,754.00 18,551.73 19,395.73 20,288.68
SSS and EC
Premiums 15 - 10,220.00 10,430.00 10,710.00 11,060.00 11,410.00
Payable
Philhealth
Premiums 16 - 3,344.40 3,771.80 3,854.90 3,940.55 4,053.00
Payable
PAG-IBIG
Premiums 17 - 1,400.00 1,400.00 1,400.00 1,400.00 1,400.00
Payable
Income Tax
18 - 39,991.80 48,603.89 60,560.24 74,131.25 89,603.20
Payable
VAT Payable 19 - 64,955.57 72,730.01 81,398.60 91,086.27 101,976.17
Total
- 136,911.78 154,689.70 176,475.47 201,013.80 228,731.05
Liabilities
Partners'
Equity
Intacto, Capital 325,000.00 364,967.22 413,382.76 473,623.70 548,148.69 637,561.49
Jaen, Capital 325,000.00 364,967.22 413,382.76 473,623.70 548,148.69 637,561.49
Lirag, Capital 325,000.00 364,967.22 413,382.76 473,623.70 548,148.69 637,561.49
Loremia,
325,000.00 364,967.22 413,382.76 473,623.70 548,148.69 637,561.49
Capital
Total Partners' Equity 1,300,000.00 1,459,868.86 1,653,531.04 1,894,494.81 2,192,594.76 2,550,245.97
Total
Liabilities and 1,300,000.00 1,596,780.64 1,808,220.73 2,070,970.27 2,393,608.56 2,778,977.03
Equity
Table 24 shows the projected balance sheet of Island Flavors: Floating
Bamboo Raft Restaurant for the years 2024-2028. The table indicates that an
upward trend in the cash amount on the balance sheet is an indicator of the
business profitability. An increase in cash typically corresponds to a growth in
owner's equity, resulting in an overall expansion of the business assets.
Financial Ratios
A. Profitability Ratios
1. Return on Sales (Operating Profit Margin)
Return on sales is a financial ratio that measures the amount of profit a
company generates on a sale compared to the expenses or operating costs
during the same period. Other common terms for ROS include operating profit
margin or efficiency ratio (MasterClass, 2021).
Table 25
Return on Sales
Year Net Income Sales Return on Sales
2024 799,836.08 4,406,614.29 18.15%
2025 972,077.72 4,934,577.46 19.70%
2026 1,211,204.71 5,523,512.50 21.93%
2027 1,482,624.94 6,181,617.86 23.98%
2028 1,792,064.02 6,918,811.61 25.90%
Table 25 shows a rising trend in the net profit margin values between
2024 and 2028. This indicates that the business is becoming more effective in
converting sales into profits, as a higher net profit margin signifies greater
efficiency in generating profits from its sales revenue.
2. Return on Assets
The return on assets (ROA) refers to a financial ratio that indicates how
profitable a company is in relation to its total assets. Corporate management,
analysts, and investors can use ROA to determine how efficiently a company
uses its assets to generate a profit (Hargrave, 2022).
Table 26
Return on Assets
Year Net Income After Average Assets Return on
Tax Assets
2024 639,868.86 1,596,780.64 40.07%
2025 777,662.18 1,702,500.68 45.68%
2026 968,963.77 1,939,595.50 50.00%

2027 1,186,099.95 2,232,289.42 53.13%
2028 1,433,651.21 2,586,292.79 55.43%
Table 26 shows the percentage of return on assets for Island Flavors:
Floating Bamboo Raft Restaurant. The data clearly shows an increasing trend in
the return on assets over time. This indicates that Island Flavors: Floating
Bamboo Raft Restaurant has been efficient in utilizing its assets to generate
higher income.
3. Return on Investment
Return on investment (ROI) is a financial ratio used to calculate the benefit
an investor will receive in relation to their investment cost. It is most commonly
measured as net income divided by the original capital cost of the investment.
The higher the ratio, the greater the benefit earned (Vipond, 2023).
Table 27
Return on Investment
Year Net Income After Original Return on
Tax Investment Investment
2024 639,868.86 1,300,000.00 49.22%
2025 777,662.18 1,300,000.00 59.82%
2026 968,963.77 1,300,000.00 74.54%
2027 1,186,099.95 1,300,000.00 91.24%
2028 1,433,651.21 1,300,000.00 110.28%
Table 27 shows the return on investment (ROI) of Island Flavors: Floating
Bamboo Raft Restaurant over a period of 5 years. The data clearly indicates a
consistently high ROI for the business throughout these years. This signifies that
Island Flavors: Floating Bamboo Raft Restaurant has effectively utilized its
investments to generate a higher return, showcasing the business's ability to
maximize the profitability of its investment initiatives.
4. Return on Equity
Return on equity (ROE) is a measurement of how effectively a business
uses equity – or the money contributed by its stockholders and cumulative
retained profits – to produce income. In other words, ROE indicates a company’s
ability to turn equity capital into net profit (Lalonde, 2021).
Table 28
Return on Equity
Year Net Income After Average Equity Return on Equity
Tax
2024 639,868.86 1,459,868.86 43.83%

2025 777,662.18 1,556,699.95 50.00%
2026 968,963.77 1,774,012.92 54.62%
2027 1,186,099.95 2,043,544.78 58.04%
2028 1,433,651.21 2,371,420.37 60.46%
Table 28 shows that the return on equity (ROE) of the business for the
years 2024-2028 is increasing over time. This means that the business is
generating higher profits using a smaller portion of its equity, indicating improved
efficiency or increased profitability without requiring significant additional
investment.
5. Earnings per Partner
Earnings per partner is an important metric for assessing the financial
performance of an accounting firm. It helps partners evaluate their individual
contributions to the firm's profitability and allows for comparisons between

partners or different accounting firms. It provides insights into the financial
success of the firm and the earnings each partner receives.
Table 29
Earnings per Partners
Year Net Income After No. of Partners Earnings per
Tax Partner
2024 639,868.86 4.00 159,967.22
2025 777,662.18 4.00 194,415.55
2026 968,963.77 4.00 242,240.94
2027 1,186,099.95 4.00 296,524.99

2028 1,433,651.21 4.00 358,412.802
Table 29 shows the earnings per partner of Island Flavors: Floating
Bamboo Raft Restaurant have consistently increased from 2023 to 2027. This
indicates that the business has experienced growth over the years, with larger
earnings or sales contributing to the positive trend.
6. Net Profit Margin
The net profit margin is a ratio that compares a company's profits to the
total amount of money it brings in and profitability ratio that expresses the profit
from business operations as a percentage of revenue or net sales (Carlson,
2020).
Table 30
Net Profit Margin
Year Net Income After Net Sales Net Profit Margin
Tax
2024 639,868.86 4,406,614.29 14.52%
2025 777,662.18 4,934,577.46 15.76%
2026 968,963.77 5,523,512.50 17.54%
2027 1,186,099.95 6,181,617.86 19.19%
2028 1,433,651.21 6,918,811.61 20.72%
Table 30 shows that the net profit margin of the business has shown an
increasing trend from 2024 to 2028. The net profit margin is a measure of
profitability, representing the percentage of net income generated relative to net
sales.
7. Gross Profit Margin
The term gross profit margin refers to a financial metric that analysts use
to assess a company's financial health. Gross profit margin is the profit after
subtracting the cost of goods sold (COGS). Put simply, a company's gross profit
margin is the money it makes after accounting for the cost of doing business.
This metric is commonly expressed as a percentage of sales and may also be
known as the gross margin ratio (Bloomenthal, 2023).
Table 31
Gross Profit Margin
Year Gross Profit Sales Gross Profit
Margin
2024 1,171,122.48 4,406,614.29 26.58%
2025 1,356,871.97 4,934,577.46 27.50%
2026 1,610,252.91 5,523,512.50 29.15%
2027 1,897,171.74 6,181,617.86 30.69%

2028 2,222,828.73 6,918,811.61 32.12%
Table 31 shows the gross profit margin of the business that has also
shown an increasing trend from 2024 to 2028. The gross profit margin represents
the percentage of gross profit relative to sales.This indicates that the business
has been able to improve its efficiency in generating gross profit from its sales.
B. Financing or Leverage Ratios
1. Debt-to-Equity Ratio
The debt-to-equity ratio, also referred to as debt-equity ratio (D/E ratio), is
a metric used to evaluate a company's financial leverage by comparing total debt
to total shareholder's equity. In other words, it measures how much debt and
equity a company uses to finance its operations. The D/E ratio is a crucial metric
that investors can use to measure a company's financial health (Kibet, 2022).
Table 32
Debt-to-Equity Ratio
Year Total Liabilities Total Equity Debt-to-Equity
Ratio
2024 136,911.78 1,459,868.86 9.38%
2025 154,689.70 1,653,531.04 9.36%
2026 176,475.47 1,894,494.81 9.32%
2027 201,013.80 2,192,594.76 9.17%
2028 228,731.05 2,550,245.97 9.00%
Table 32 shows the debt-to-equity ratio of the business has remained
relatively stable from 2024 to 2028. The debt-to-equity ratio is a financial metric
that measures the proportion of a business total liabilities to its total equity.
2. Debt Ratio
The debt ratio is the ratio of a company's debts to its assets, arrived at by
dividing the sum of all its liabilities by the sum of all its assets. The debt ratio is a
measurement of how much of a company's assets are financed by debt; in other
words, its financial leverage (Tamplin, 2023)
Table 33
Debt Ratio
Year Total Liabilities Total Assets Debt Ratio
2024 136,911.78 1,596,780.64 8.57%
2025 154,689.70 1,808,220.73 8.56%
2026 176,475.47 2,070,970.27 8.52%
2027 201,013.80 2,393,608.56 8.40%

2028 228,731.05 2,778,977.03 8.23%
Table 33 shows the debt ratio of the business has gradually decreased
from 2024 to 2028. The debt ratio represents the proportion of a business total
liabilities to its total assets. The decreasing trend in the debt ratio indicates a
favorable financial position, highlighting the business ability to manage its debt
levels and fund a greater proportion of its assets through equity sources.
3. Equity Ratio
The equity ratio is a way for your company to measure how much debt
you have taken on relative to your assets. In other words, it shows how much
investment you’ve put in and the amount of your company you own outright
versus how much is financed by debt (Turits, 2020).
Table 34
Equity Ratio
Year Total Equity Total Assets Equity Ratio
2024 1,459,868.86 1,596,780.64 91.43%
2025 1,653,531.04 1,808,220.73 91.45%
2026 1,894,494.81 2,070,970.27 91.48%
2027 2,192,594.76 2,393,608.56 91.60%
2028 2,550,245.97 2,778,977.03 91.77%
Table 34 shows the equity ratio of the business has remained relatively
stable and high from 2024 to 2028. The equity ratio represents the proportion of
a business total equity to its total assets.The stability and high equity ratio
indicate that the businesshas maintained a solid capital base and retained
earnings.
C. Liquidity Ratios
1. Current Ratio
The current ratio measures the capability of a business to meet its short-
term obligations that are due within a year. The ratio considers the weight of total
current assets versus total current liabilities. It indicates the financial health of a
company and how it can maximize the liquidity of its current assets to settle debt
and payables. The current ratio formula (below) can be used to easily measure a
company’s liquidity.
Table 35
Current Ratio
Year Total Current Total Current Current Ratio
Assets Liabilities
2024 1,483,264.45 136,911.78 10.33
2025 1,709,085.35 154,689.70 11.05

2026 1,986,215.70 176,475.47 11.25
2027 2,323,234.80 201,013.80 11.56
2028 2,722,984.08 228,731.05 11.90
Table 35 indicates the current ratio of the business has shown a
consistent upward trend from 2024 to 2028. The current ratio is a financial metric
that measures the business ability to meet its short-term obligations. The
increasing trend in the current ratio indicates improved liquidity and a better
ability to manage short-term financial commitments over the analyzed period.
2. Working Capital
Working Capital is the amount of funds necessary to cover the cost of
operating the enterprises. Working capital means the funds (capital) available
and used for day-to-day operations (working) of an enterprise. It consists broadly
of that portion of assets of a business that are used in or related to its current
operations (Singh, 2023).

Table 36
Working Capital
Year Total Current Total Current Working Capital
Assets Liabilities
2024 1,483,264.45 136,911.78 1,346,352.67
2025 1,709,085.35 154,689.70 1,554,395.65
2026 1,986,215.70 176,475.47 1,809,740.23
2027 2,323,234.80 201,013.80 2,122,221.00
2028 2,722,984.08 228,731.05 2,494,253.03

Table 36 shows the working capital of the business has shown a
consistent upward trend from 2024 to 2028. It signifies the Business ability to
finance its day-to-day operations, cover short-term debts, and invest in growth
opportunities.
3. Quick Ratio
Working capital, also known as net working capital (NWC), is the
difference between a company’s current assets such as cash, accounts
receivable/customers’ unpaid bills, and inventories of raw materials and finished
goods and its current liabilities, such as accounts payable and debts. It's a
commonly used measurement to gauge the short-term health of an organization
(Fernando, 2023).
Table 37
Quick Ratio
Year Total Quick Total Current Quick Ratio
Assets (Cash + Liabilities
Short Term
Investments +
Net Receivables)
2024 1,418,435.87 136,911.78 10.36
2025 1,637,983.91 154,689.70 10.59
2026 1,908,989.16 176,475.47 10.81
2027 2,239,182.09 201,013.80 11.14
2028 2,631,310.90 228,731.05 11.50
Table 37 indicates the quick ratio of the business has shown a consistent
upward trend from 2024 to 2028. The increasing trend in the quick ratio indicates
improved liquidity and a better ability to manage short-term financial
commitments over the analyzed period.
D. Activity Ratios
1. Assets Turnover
The asset turnover ratio measures how effectively a company uses its
assets to generate revenue or sales. The ratio compares the dollar amount of
sales or revenues to the company's total assets to measure the efficiency of the
company's operations. (Beers, 2023).
Table 38
Assets Turnover
Year Sales Average Assets AssetsTurnover
2024 4,406,614.29 1,596,780.64 2.76
2025 4,934,577.46 1,702,500.68 2.90
2026 5,523,512.50 1,939,595.50 2.85
2027 6,181,617.86 2,232,289.42 2.77
2028 6,918,811.61 2,586,292.79 2.68

Table 38 shows the assets turnover ratio of the business has shown some
fluctuations but remained relatively stable from 2024 to 2028. The assets
turnover ratio measures the efficiency of a business in generating sales revenue
from its average total assets. In 2024, the assets turnover ratio was 2.76,
indicating that the business generated 2.76 times its average total assets in
sales. Over the following years, the assets turnover ratio fluctuated, reaching a
peak of 2.90 in 2025 and ranging between 2.68 to 2.90.
Break-even Point Analysis
The break-even point is the level of sales volume or revenue at which the
company covers all its fixed and variable costs. Break-even point analysis helps
businesses understand their cost structure, assess profitability levels, and make
informed decisions to achieve financial sustainability.
Table 39
Breakeven Analysis
CVP/Breakeven Analysis
Year 2024 2025 2026 2027 2028

Fixed Costs
Total Selling & Administrative
371,286.40 384,794.25 399,048.19 414,546.79 430,764.71
Expenses
Variable Cost
Direct Material Cost Per Unit 193.70 205.01 216.92 229.50 242.72
Direct Labor Cost Per Unit 24.50 23.84 23.23 22.63 22.05
Overhead Cost Per Unit 55.66 54.46 53.21 52.02 50.85
Total Variable Cost Per Unit 273.87 283.30 293.36 304.15 315.62
Average Selling Price per Unit 380.82 403.00 426.35 451.04 477.13
Less: Total Variable Cost Per Unit 273.87 283.30 293.36 304.15 315.62
Gross Margin Per Unit 106.95 119.70 132.99 146.89 161.51
Total Selling & Administrative

371,286.40 384,794.25 399,048.19 414,546.79 430,764.71
Expenses
Divided by: Gross Margin Per Unit 106.95 119.70 132.99 146.89 161.51
Break Even In Units 3,471 3,215 3,001 2,822 2,667
Break Even In Units 3,471 3,215 3,001 2,822 2,667

Multiply: Average Selling Price 380.82 403.00 426.35 451.04 477.13
1,322,003. 1,295,539. 1,279,275. 1,272,936. 1,272,543.
Break Even In Pesos
08 37 02 60 56
Based on the provided data in the table, the break-even analysis shows
the break-even point in units and in pesos for each year from 2024 to 2028. The
break-even point represents the level of sales at which total revenue equals total
costs, resulting in neither profit nor loss. The table includes information on fixed
costs, total selling and administrative expenses, variable costs (direct material
cost per unit, direct labor cost per unit, and overhead cost per unit), average
selling price per unit, and gross margin per unit. The break-even analysis helps
businesses assess their minimum sales requirements, evaluate profitability
levels, and make informed decisions regarding pricing, cost management, and
financial planning.
Payback Period
The payback period is the time it takes for a company to recover its initial
investment. It measures how long it will take to generate enough cash flows to
recoup the cost of an investment or project. A shorter payback period indicates a
faster return on investment, while a longer payback period suggests a slower
recovery of the initial investment. It helps businesses assess the time it will take
to break even and make informed decisions about investment opportunities.
Table 40
Payback Period using Accumulated Method
Payback Period using Accumulated Method

Investment Cost - Income
Year Investment Cost Income After Tax
After Tax
2024 1,300,000.00 639,868.86 660,131.14
2025 660,131.14 777,662.18 (117,531.04)
2026 (117,531.04) 968,963.77 (1,086,494.81)
2027 (1,086,494.81) 1,186,099.95 (2,272,594.76)
2028 (2,272,594.76) 1,433,651.21 (3,706,245.97)
TOTAL
NET
INCOME 5,006,245.97
AVERAGE
TOTAL
NET
INCOME 1,001,249.19
Payback Period Total Investment Cost

Total Net Income/No. of Years
Payback Period 1,300,000.00

5006245.97 / 5
Payback Period 1.3 years
Table 40 shows the Payback Period using Accumulated Method. The
payback period for the investment is 1.3 years, indicating that the initial
investment will be recovered within 1.3 years based on the accumulated net
income.
Net Present Value
Net Present Value is a financial measure used to determine the
profitability of an investment. It takes into account the value of money over time.
By calculating the Net present value, businesses can assess whether an
investment is worth pursuing and compare different investment options. It helps
in making informed decisions about allocating resources and evaluating the
potential returns of an investment.
Table 41
Net Present Value
Net Present Value
Expected Present Value

Year Present Value of Cash Flows
Cash Flow Factor (5.8%)
Year 1 756,332.87 0.9452 714,870.39
Year 2 803,548.03 0.8934 717,861.24
Year 3 999,005.25 0.8444 843,549.88
Year 4 1,218,192.93 0.7981 972,239.82
Year 5 1,468,128.81 0.7543 1,107,479.83
TOTAL PRESENT VALUE OF CASH FLOWS 4,356,001.16
LESS: INVESTMENT (1,300,000.00)
NET PRESENT VALUE 3,056,001.16
The table 41 presents the calculation of Net Present Value for a series of
expected cash flows over a five-year period. The cash flows are discounted to
their present values using a discount rate of 5.8%. The Net Present Value is
found to be 3,056,001.16, which indicates that the investment is expected to
generate a positive return after considering the time value of money.
Internal Rate of Return
Internal Rate of Return is a financial metric used to assess the profitability
of an investment. It represents the interest rate at which the investment's cash
inflows equal its cash outflows, resulting in a net present value of zero. Investors
use the Internal rate of return to compare different investment options and
determine which ones offer the highest potential returns. It helps in making
informed decisions about whether to pursue an investment based on its projected
profitability.
Table 42
Expected Cash PV Factor

Year Present Value
Flow in 62.86%
Year 1 756,332.87 0.6140 464,415.12
Year 2 803,548.03 0.3770 302,969.27
Year 3 999,005.25 0.2315 231,285.22
Year 4 1,218,192.93 0.1422 173,176.74
Year 5 1,468,128.81 0.0873 128,153.66
TOTAL 1,300,000.00
Less: Initial
Investment (1,300,000.00)
NPV less Initial
Investment 0
Financial Internal Rate of Return 62.86%

The table 42 presents the calculation of the Financial Internal Rate of
Return for a series of expected cash flows over a five-year period. The cash
flows are discounted using a discount rate of 62.86%. The Financial Internal Rate
of Return helps assess the profitability and attractiveness of the investment. If the
IRR exceeds the required rate of return or the cost of capital, the investment is
considered favorable.
Profitability Index
Profitability Index is a financial metric used to assess the profitability of an
investment. It compares the present value of expected future cash inflows to the
initial investment. The Profitability Index helps in comparing different investment
opportunities and selecting the ones that offer the highest potential returns
relative to the initial investment.
Table 43
Profitability Index
Profitability Index
Expected Cash Present Value

Year Present Value
Flow Factor (5.8%)
Year 1 756,332.87 0.9452 714,870.39

Year 2 803,548.03 0.8934 717,861.24
Year 3 999,005.25 0.8444 843,549.88
Year 4 1,218,192.93 0.7981 972,239.82
Year 5 1,468,128.81 0.7543 1,107,479.83
TOTAL PRESENT VALUE 4,356,001.16
DIVIDED BY: INVESTMENT 1,300,000.00
PROFITABILITY INDEX 3.35
The table xxx presents the calculation of the Profitability Index for a series
of expected cash flows over a five-year period. The cash flows are discounted to
their present values using a discount rate of 5.8%. The Profitability Index helps
assess the attractiveness of an investment by considering the present value of
expected cash flows relative to the initial investment. A higher Profitability Index
implies a more favorable investment opportunity.
Generalization
A financial study involves evaluating the financial feasibility and potential
success of a project. This includes assessing factors such as initial funding,
expenditures, sales, and returns on investment. The objectives of the study may
include determining projected costs, specifying financial assumptions, presenting
financial statements, and evaluating financial viability using ratios, break-even

point, and payback period. The study incorporates various financial assumptions,
such as initial capital requirements, revenue and expense forecasts, assets and
liabilities, equity distribution, and revenue/sales projections. Financial statements,
including income statements, balance sheets, cash flow statements, and
statements of changes in equity, provide a comprehensive overview of the
company's financial status and performance. Ratios, such as profitability ratios,
financing or leverage ratios, and liquidity ratios, help assess the company's
profitability, financial health, and liquidity. Break-even point analysis helps
determine the sales volume needed to cover costs, while the payback period
indicates the time required to recoup the initial investment. Net present value and
internal rate of return are used to evaluate investment profitability, and the
profitability index compares the present value of cash inflows to the initial
investment.
CHAPTER V
MANAGEMENT STUDY
Management is one of the important parts in establishing a business. It
facilitates the achievement of group goals by gathering and organizing resources,
integrating them successfully, arranging the factors of production, and focuses
teamwork on achieving pre-established objectives.

This chapter presents the prospective business's management
considerations. It covers the analysis of the management style and the type of
ownership to be used, capitalization, organizational structure and its chart, the
need for human resources and the corresponding job specifications and
descriptions, compensation, organizational policies, and the legal requirements
necessary for the operation of the business.
The objective of this study is to determine the suitable management system to be
used by the firm to effectively achieve its goals. Specifically, it aims to discuss
the following objectives:
1. To determine the appropriate form of business ownership and initial
capitalization;
2. To develop an organizational structure that best suit the business;
3. To set the required skills for employees/workers based on their respective
duties and responsibilities and;
4. To discuss the legal requirements that the business must comply with.
Form of Business Ownership
The Island Flavors Floating Bamboo Restaurant would be managed in the
form of a partnership owned by Mr. John Edward Intacto, Mr. Kent Amiel Jaen,
Mr. Francis Ray Lirag, and Ms. Jasmine Joy Loremia. The owners will be the
ones who’ll shoulder and take all the risk and responsibilities that comes with the
operation of the business.
Capitalization
The way to create profit in a business is with its capital. The business
relies heavily on this source of funding to cover continuous production and
services. Investments made jointly by the partners that provide the initial funding
for Island Flavors. As their initial capital investment to launch the business, the
partners each put in Php 325,000.00 each, for a total of Php 1,300,000.00.
Table 44
Partners Contribution
Partners Amount
Intacto, John Edward J. Php 325,000.00
Jaen, Kent Amiel L. Php 325,000.00
Lirag, Francis Ray A. Php 325,000.00
Loremia, Jasmin Joy M. Php 325,000.00
Total Php 1,300,000.00

Organizational Structure
An organizational chart is a diagram that visually conveys a company's
internal structure by detailing the roles, responsibilities, and relationships
between individuals within an entity. It is one way to visualize a bureaucracy.
Organizational charts are alternatively referred to as "org charts" or "organization
charts" (Chen, 2022).
Flat organization structure is the type of structure to be used in presenting
Island Flavors’ organizational structure. In a flat organizational structure, most
middle-management levels are removed so there is little separating staff-level
employees from upper management. Employees are given more responsibility
and decision-making power without the usual hierarchical pressures or
supervision and can often be more productive. Small companies and early-stage
start-ups mostly use this type of structure because they often have fewer
employees and projects to manage. It may also be referred to as a "horizontal
structure" (Indeed, 2023)

Figure 14. Organizational Chart
Figure 14 shows the organizational chart of Island Flavors. An
organizational structure is a system that defines how the activities are managed
and directed in pursuit of the goals of the organization. It also determines how
the flow of information is done from different levels within the organization. The
organizational structure is also used as a method of allocating people into their
designated jobs in order to perform their duties in pursuit of achieving the

organization’s goals and objectives. Due to the nature of the business being a
partnership, a partner can take on the duty of managing the business. The
partners in the business will be managing the business operations and the
employees in order for it to run smoothly throughout its day to day activities. The
various positions, departments, and duties of the individuals in the organization
are presented in the organizational chart. The proposed floating bamboo
restaurant will have, one (1) cashier to collect the payment of the customers and
to do the daily accounting tasks, two (2) servers to serve the orders of the
customers, two (2) crews for the general maintenance of the restaurant as well
as to ensure the safety of the safety and cleanliness of the location, two (2)
cooks who will be responsible for the processes in the kitchen which are
preparation of the dishes, and cleaning of all the dishes.
Manpower Requirements
Manpower refers to the overall count of individuals employed by an
organization to carry out specific tasks or roles. The presence of people is crucial
for the functioning of any organization, as they possess the skills and abilities
necessary for producing goods or delivering services. Therefore, the recruitment
of employees holds great significance as they are the ones responsible for
creating products.
In line with this, the Island Flavors lists down the job specifications and
descriptions that need to be considered before employing them in the firm.
Job Specification
A job specification summarizes the fundamental duties, exercises,
qualifications, and skills for a job.
Cook
Qualifications for the Cook:
● Must be at least 18 years old and above
● Must be atleast a college graduate (course must be related to )
● Preferably with culinary certification
Responsibilities of the Cook:
● Prepares food items for customers as requested in a timely and consistent
manner.
● Inspects food products and supplies as needed
● Ensures work environment, stations, and dishes are clean and sanitized
● Checks food before it is served to the customers
● Controls and minimize food-related wastes
● Manages food constant and inventory

● Assures the quality of the food
Cashier/Accountant
Qualifications for the Cashier/Accountant:
● Must be at least 18 years old or above
● Must be a graduate of any business or accounting related course
● Must possess good communication skills
● Must posses time management skills
Responsibilities of the Cashier/Accountant:
● Prepares the financial statements
● Gives an update about the financial of the business
● Controls the cost of the business
● Monitors the financial transactions to avoid eros and fraud
● Prepares the budget
● Performs audits and analyzes every transaction
Server
Qualifications for the Server:
● At least high school graduate
● Must be able to pass a background check and drug test
● With relevant experience

● Must know how to handle customers
Responsibilities of the Server:
● Serves and takes customer orders
● Arranges the physical set up of the restaurant
● Attends to the needs of the customers
● Keeps the rafts and general area clean and tidy at all times
● Delivers checks and collect payments
● Greets customers and presents menus
● Provide excellent customer service
● Ensures that the orders are correct
● Ensures food is delivered to the table in a timely manner
Crew
Qualifications for the Crew:
● At least high school graduate
● Must be able to pass a background check and drug test
● Must know how to handle customers
● With relevant experience

● Must posses good time management skills
Responsibilities of the Crew:
● Ensures the safety regulations and plans are maintained
● Ensures the cleanliness of the rafts and general area
● Handles the rafts and perform the necessary duties in managing the rafts
Compensation
Table 45
Compensation Schedule
POSITION MONTHLY IN PHP ANNUALLY IN PHP
Cashier 12,480.00 150,920.00
Cook 10,920.00 131,871.00
Server 9,750.00 117,450.00
Crew 9,100.00 109,540.00
TOTAL 68,250.00 1,178,420.00
Table 45 displays the compensation allotted by the form to its hired
employees. The monthly employee compensation reveals a total of Php
68,250.00 while a total of Php 1,178,420.00 was calculated on a yearly basis.

Organizational Policies
● Personnel Policies
1. Attendance and Punctuality:
- Employees are expected to report to work on time and begin their shift
at the designated start time.
- Working hours are from 7:00 AM to 5:00 PM, Tuesday to Sunday.
- Tardiness may result in salary deductions.
2. Absences:
- Employees must obtain prior approval and provide a letter of leave for
any planned absences.
- Unexcused absences without a valid reason may lead to disciplinary
action.
3. Breaks:
- Employees are entitled to a one-hour lunch break between 10:45 am
and 11:45 am.
- An additional 15-minute break is allowed in the afternoon.
- Leaving the premises during breaks is permitted, including for
necessary deliveries.
4. Confidentiality:
- Employees are strictly prohibited from disclosing any confidential
information about the organization to external individuals or unauthorized
parties.
5. Professional Relationships:
- Employees are expected to cultivate and maintain positive
relationships with co-workers and business owners.
- Demonstrating willingness to collaborate and foster a harmonious work
environment is essential.
6. Personal Hygiene:
- Employees are required to maintain good personal hygiene at all times,
ensuring cleanliness and appropriate grooming.
7. Other Policies:
- Additional policies and guidelines may be communicated separately,
and employees are expected to adhere to them.
● Duties and Responsibilities
1. Health Declaration:
- Employees are required to honestly declare their health condition prior
to starting work, ensuring transparency for the well-being of the team.
2. Task Completion:
- Employees are expected to diligently and efficiently complete the tasks
assigned to them within the given timeframe.
3. Reporting Potential Risks:
- Employees have a responsibility to promptly inform the owners of any
issues or situations that could potentially harm the business, allowing for
timely resolution and mitigation.
4. Clear Understanding of Roles:
- Each employee must have a clear understanding of their position's
responsibilities, duties, and expectations to ensure effective performance
and contribution.
5. Customer Service:
- All customers must be treated with respect and provided assistance in
a pleasant and professional manner, aiming to deliver a positive
experience.
6. Compliance with Laws:
- Management is responsible for ensuring strict adherence to all relevant
laws and regulations that pertain to the business operations.
7. Official Business Registration:
- The business shall be officially registered in accordance with the legal
requirements of the jurisdiction in which it operates.
8. Timely Tax Payments:
- Regular and timely payment of taxes shall be fulfilled by the
organization to comply with tax regulations and fulfill its financial
obligations.
● Safety Rules and Regulations
1. Regular Inspection of Tools and Equipment:
- The condition of all tools and equipment used within the restaurant
shall be checked regularly to ensure their proper functioning and safety.
2. Proper Handling of Machines and Electronic Devices:
- It is essential to always unplug machines and electronic devices after
use to prevent electrical hazards and reduce the risk of accidents.

3. Maintenance and Inspection of Fire Safety Equipment:
- Regular inspections and maintenance shall be conducted to ensure the
fire extinguishers are in good working condition and readily available in
case of emergencies.
4. Reporting Suspicious Activities:
- Employees should immediately report any suspicious acts or
individuals observed inside or near the restaurant premises to the
appropriate authorities or management.
5. No Smoking Policy:
- Smoking is strictly prohibited inside the floating bamboo raft restaurant
to prevent fire hazards and maintain a safe environment for all employees
and guests.
6. Hazard Reporting:
- All employees are encouraged to report any potential hazards or
unsafe conditions they notice that could potentially cause harm to
themselves, co-workers, or customers.

7. Emergency Preparedness:
- Emergency evacuation procedures and protocols shall be established
and communicated to all employees, ensuring everyone is aware of the
necessary actions to take in case of emergencies.
8. Training and Education:
- Regular safety training sessions and educational programs shall be
conducted to enhance employees' awareness and knowledge of safety
practices and procedures.
● Customer Policies
1. Reservation and Seating:
- Reservations are recommended to secure a table at the Floating
Bamboo Raft Restaurant.
- Seating is subject to availability, and priority will be given to customers
with reservations.
2. Arrival Time:
- Please arrive on time for your reservation to ensure a smooth dining
experience.
- In case of a delay, please inform the restaurant in advance to hold the
reservation for a reasonable period of time.
3. Dress Code:
- We encourage guests to dress comfortably and in appropriate attire for
a casual dining experience.
- Swimwear and overly revealing clothing are discouraged.
4. Children and Minors:
- Children are welcome at the Floating Bamboo Raft Restaurant under
parental or guardian supervision.
- Minors must be accompanied by an adult at all times.
5. Outside Food and Drinks:
- Outside food and drinks are not allowed, as the restaurant provides a
variety of culinary options.
6. Allergies and Dietary Restrictions:
- Please inform our staff of any allergies or dietary restrictions you have,
and we will do our best to accommodate your needs.

- However, please note that we cannot guarantee a completely allergen-
free environment.
7. Behavior and Respect:
- We expect all customers to maintain a respectful and considerate
demeanor towards our staff and fellow guests.
- Any form of harassment, discrimination, or disruptive behavior will not
be tolerated.
8. Feedback and Complaints:
- We value your feedback and strive to provide exceptional service. If
you have any concerns or complaints, please inform our staff or
management promptly, and we will address the issue to the best of our
abilities.
9. Lost or Damaged Items:
- The Floating Bamboo Raft Restaurant is not responsible for any lost or
damaged personal belongings brought onto the premises.
- Please take care of your belongings during your visit.
10. Payment and Service Charge:

- We accept various modes of payments.
- A service charge may be added to the final bill as per the restaurant's
policy.
● Supplier Policies
1. Prompt Reporting of Unexpected Situations:
- Suppliers are required to immediately report any sudden, unexpected
situations that could potentially affect the business operations of the
Floating Bamboo Raft Restaurant. This includes delays, quality issues, or
any other incidents that may impact the supply chain.
2. Fresh and Quality Goods:
- Suppliers must ensure that only fresh and high-quality goods are
delivered to the Floating Bamboo Raft Restaurant. This includes
ingredients, produce, seafood, and any other items required for the
restaurant's operations.
3. Advanced Delivery Notifications:
- Suppliers are expected to provide advance notifications to the
designated employee-in-charge at the restaurant regarding the scheduled

deliveries. This enables proper coordination and ensures smooth
acceptance of the incoming goods.
4. Thorough Goods Inspection:
- Before accepting the delivery, the Floating Bamboo Raft Restaurant
staff will conduct a thorough inspection of all goods received from
suppliers. This is to verify the quality, quantity, and condition of the items.
5. Replacement of Damaged Goods:
- In the event that any goods are found to be damaged upon delivery,
suppliers must take immediate action to replace them without any
additional cost to the restaurant.
6. Compliance with Safety and Hygiene Standards:
- Suppliers must adhere to all relevant safety and hygiene standards
when handling and transporting goods for the Floating Bamboo Raft
Restaurant. This includes proper storage, temperature control, and
packaging to maintain the integrity of the products.
7. Communication and Collaboration:

- Suppliers are encouraged to maintain open and transparent
communication with the restaurant management to address any concerns,
discuss product availability, and ensure a mutually beneficial business
relationship.
8. Sustainability and Environmental Responsibility:
- The Floating Bamboo Raft Restaurant values suppliers who prioritize
sustainability and environmental responsibility. Suppliers are encouraged
to provide eco-friendly packaging, reduce waste, and support sustainable
sourcing practices whenever possible.
Note: These supplier policies should be tailored to fit the specific needs
and requirements of the Floating Bamboo Raft Restaurant. It is important
to establish clear communication channels and maintain a mutually
beneficial partnership with suppliers to ensure smooth operations and the
delivery of quality products.
Legal Requirements
When setting up a business, it is crucial to adhere to the legal obligations
involved in initiating and sustaining the business operations. This entails
obtaining the necessary documentation and permits to register and legalize the
business. In the Philippines, the specific legal requirements for starting a
business differ based on factors such as the business type and industry. As
Island Flavors is structured as a general partnership, the company must
complete the registration process with the Securities and Exchange Commission
(SEC).
I. Articles of Partnership
To be deemed legal or juridical organizations, partnerships must obtain a
certificate of partnership from the Securities and Exchange Commission (SEC).
These certificates are also required for registration with the Bureau of Internal
Revenue, the Mayor's Office, and other government agencies. The article
contains the following essential provisions:
a. The partnership name.
b. The business purposes.
c. Principal place of business or manufacturing company.
d. Term of existence.
e. Partners’ Circumstances – names, nationalities and complete residence
address.
f. Capital Contribution – the capital for the partnership company and the
contribution of each partner.

g. Sharing Ratios – the profits and losses of the company must be divided
and distributed proportionately on the ratio of the capital contribution.
h. Management – it must be stated to whom the partnership was under.
i. Undertaking to Change Name.
II. Acquisition of Barangay Clearance
This clearance is a document that certifies that your business meets the
criteria of the barangay in which it is located. You can obtain a barangay
clearance by going to the barangay office where your company is located. The
basic document required is the notarized lease contract between the company
and the lessor of its registered office.
III. Application for Mayor’s Permit
Businesses must get a permit from the local government office where they
are situated and operate. Various cities or municipalities have different
requirements for getting a Mayor's Business permit. The BIR also requires this
authorization before issuing a certificate of registration.
a. Location sketch of the proposed business
b. Sworn capital investment of the partners
c. If the firm is exempt from payment or free of tax, a certificate attesting to
the due tax or free exemption is required.

d. A certificate from the person in charge of creating the proposed
business division according to the new rules and regulations.
e. Tax clearance that shows the operation has paid all its tax obligation
f. Two passport size pictures
g. The applicant is accountable if he or she presents a community tax
certificate and a receipt for the payment of professional tax occupation
fees.
h. Lease contract if the building is rented
i. Barangay clearance
IV. Registration with the Bureau of Internal Revenue (BIR)
To comply with Philippine tax regulations, each firm must register with the
Bureau of Internal Revenue. The firm or business owner was assigned a TIN,
which allow them to issue official receipts and invoices, as well as register their
books of accounts. To register with the BIR, proceed to the BIR office that has
authority over the location.
V. SSS Employer’s Registration
All companies must be registered with the SSS and must secure an
employer number which was used as reference for the remittance of monthly
contributions. Republic Act No. 8282 or otherwise known as the Social Security
Act of 1997 requires businesses or business owners who use the services of
another person or employees in business, trade, industry, or any undertaking to
be registered with the SSS (Social Security System).
VI. PhilHealth Employer’s Registration
PhilHealth is a medical insurance program administered by the Philippine
Health Insurance Corporation (PHIC). All employers are required to register their
employees with this agency as stated in the New National Health Insurance Act
(RA 7875 / RA 9241). To provide social health insurance coverage to their
employees, all firms and employers must register with PhilHealth.
VII. Pag-IBIG Employer’s Registration
Employers also have to register with the Home Development Mutual Fund
(HDMF) to secure their Pag-IBIG Employer ID Number and to provide the
required benefits to their employees, who should be Fund members.
VIII. Registration with the DOLE
Companies with five or more workers are urged to register with the
Department of Labor and Employment (DOLE) so that labor rules can be
monitored. Companies with 5 or more employees must register with DOLE,
which is administered by the Bureau of Local Employment.

Table 46
TAXES AND LICENSES
Particulars Amount Cost in PHP
VAT Registration 500
DTI Registration 530
BIR Registration 500
Documentary Stamp Tax 30
Business Tax 1,250
Zoning Fee 1,400
Mayor’s Permit 100
CO No. 2018-15 200
Calling Fee 100
Enviromental Clearance Fee 1,500
Mayor’s Clearance 50
Medical Fee Business 100
Sanitary Fee 200

Sticker 15
TOTAL 6,475
Similar to all other businesses, there are legal constraints that need to be
observed which are usually regulated by the Local Government Unit. In order for
the business to function properly and smoothly within legal jurisdiction, these
regulations must be researched and studied. The same applies to the proposed
business which will be established in Bañadero Baywalk, Tanauan City,
Batangas.
The proponents determined the necessary legal requirements for the
establishment of Island Flavors Floating Bamboo Restaurant. They were
endorsed by the Tanauan City Tourism Office. The study was then discussed in
detail and the technicalities of the situation were explained accompanied by all
the necessary requirements and permits needed to start the floating bamboo
restaurant. They were guided by the offices under the Local Government of
Tanauan and were given a copy of necessary data and requirements needed to
start the business. The following are the requirements that must be met in order
to be approved as a legally operating business in the area:

● Accomplish and present a formal document containing the details of the
negotiation with the private organization in the area who has a private
ownership of a specific area on the waters around Bañadero Baywalk. The
proponentss talked to the local government unit and as per their
recommendation, building and the use of floating rafts in the Taal Lake in
the vicinity of Bañadero Baywalk, Tanauan City, Batangas is only
permitted if the area in question already is owned by a private
organization. In short, the negotiations are done through the private
organization that the local government unit pointed to to establish a
partnership deal for the business to rent the area.
● The business must follow and adhere to the health and safety protocols
which includes medical and proper sanitary disposal. This is to maintain
the cleanliness, health, and natural beauty of the area in order to promote
the place as a clean and beautiful tourist spot while not compromising
environmental preservation.
● The area is situated in Taal Lake which results in the Taal Volcano being
close enough that it can be seen. In recent years, there has been activity
seen of the volcano being active. Meaning, all emergency procedures and
plans of the local area must be studied and applied in case of a natural
disaster The safety of all customers and personnel must be of the utmost
priority. The business will follow the local government’s advice and
procedures when it comes to these types of emergencies. Along with the
business having its own safety precaution plan.
Generalization
Island Flavors restaurant will operate as a partnership consisting of four
individuals: Mr. Intacto, Mr. Jaen, Mr. Lirag, and Ms. Loremia. They have agreed
to pool their resources, including money, property, and expertise, into a collective
fund and distribute the company's profits equally among themselves. The initial
capital for the business is Php 1,300,000. To ensure the company's success,
each partner will contribute Php 325,000.
Island Flavors has chosen a flat organizational structure, which is most
suitable for the size of the proposed business. The company has also defined the
required manpower and qualifications necessary for employees to effectively
carry out their assigned tasks or roles. The cashier, for example, will receive a
monthly salary of Php 12,480.
The company has implemented policies for employees, customers, and
suppliers, and has fulfilled the necessary legal requirements to obtain the
required licenses. These requirements include preparing the articles of
partnership, registering with the Securities and Exchange Commission (SEC),
obtaining barangay clearance, securing a mayor's permit, registering with the
Bureau of Internal Revenue (BIR), registering as an employer with the Social

Security System (SSS), registering as an employer with PhilHealth, registering as
an employer with Pag-IBIG, and registering with the Department of Labor and
Employment (DOLE). Compliance with these conditions results in the official
registration of the company.
Chapter VI
SOCIO-ECONOMIC CONTRIBUTION
Establishing a business should have social and economic benefit as a
secondary goal in addition to generating profits. A company must evaluate all of
the initiatives that improve community living conditions and adhere to ethical
standards for the good of all.

In this chapter, the proponents determined what kind of socio-economic
benefit the company can provide to the general public. In addition, they examined
the impacts of the company's operations on the area in which it is located. The
proponents set up a business with the intention of making a profit and a goal to
contribute to the socio-economic development of Tanauan City, Batangas.
Contribution to the Philippine Economy
The suggested venture holds promise in creating numerous job
opportunities for the residents of Bañadero, Tanauan City, Batangas.This is
offered by employment during both the project's development phase and its
operational stage, it can effectively address the area's unemployment problem.
Moreover, the project will not only generate income for its employees but also
contribute to the country's tax revenue, benefiting its owners.
Employment Generation
Employment is a mutual arrangement where two parties collaborate to
accomplish work for their own benefit. The current state of employment in our
society is the outcome of a lengthy historical progression. It serves as a crucial
means of generating financial resources and fostering personal value and
belonging.
Island Flavors is a restaurant business situated in Tanauan City,
Batangas. As a result, it contributes to employability by offering job prospects to
the people of the Philippines, particularly those residing in Tanauan City and
neighboring cities. Moreover, the employment opportunities provided by Island
Flavors can enable local residents and individuals from nearby cities to enhance
their living standards.
Social Desirability
Island Flavors is dedicated to providing affordable prices for their diverse
range of delicious food offerings. The business ensures that the preparation of
their food is conducted without the presence of harmful or toxic chemicals,
prioritizing the health and well-being of their customers. By maintaining strict
quality control measures, Island Flavors guarantees that their dishes are
prepared with the utmost care and consideration for food safety standards.
These efforts have a significant positive impact on the community and
surrounding areas. By offering affordable prices, Island Flavors makes their
delectable cuisine accessible to a wide range of people, benefiting not only the
local community but also neighboring areas. The affordability factor ensures that
individuals from different economic backgrounds can enjoy their meals without
straining their budgets.

Moreover, Island Flavors' commitment to using safe and healthy
ingredients ensures that customers can dine with confidence, knowing that their
health is a top priority. By adhering to rigorous safety standards, the business not
only safeguards the well-being of their customers but also fosters trust and
loyalty within the community.
In summary, Island Flavors' dedication to affordability, food safety, and
consideration for workers' health and safety contributes to the betterment of the
community and neighboring areas. Through their inclusive approach, they create
a positive social impact by providing delicious and safe dining options at prices
that cater to diverse audiences.
Supplier
The restaurant plays a supportive role for its suppliers by establishing a
reputation as a dependable customer and a reliable business partner. They
engage in fair negotiations that enable suppliers to trade their goods and achieve
profitability. Additionally, the restaurant ensures that agreements between
themselves and the suppliers are upheld, and they expect the same level of
commitment from their suppliers. The business has a shared goal of not only
improving its own performance but also assisting suppliers in their growth. By
fostering a positive and mutually beneficial relationship with suppliers, both
parties can benefit and develop a stronger bond over time.

Consumers
Island Flavors is dedicated to delivering high-quality food that exceeds
customer expectations. Through diligent supervision, the business ensures that
their products are freshly prepared by staff who adhere to strict hygiene
standards, all within a clean, secure, and safe environment. The company
provides accessible contact details on their official social media accounts,
allowing customers to easily reach out and address any concerns they may have.
Island Flavors commits to being available during the business hours specified by
management, ensuring prompt and reliable service.
Expanding on this, Island Flavors' commitment to providing quality foods
goes beyond meeting basic expectations. The business understands that
customers value the freshness and taste of their meals, and therefore places
significant emphasis on proper supervision to ensure that all food is prepared to
the highest standards. By upholding rigorous hygiene practices and maintaining
a clean and secure environment, Island Flavors creates an atmosphere of trust
and confidence for customers.
Moreover, Island Flavors recognizes the importance of open
communication with their customers. By providing contact details on their official
social media accounts, they facilitate a direct line of communication, allowing
customers to easily voice any concerns, queries, or feedback they may have.
This approach demonstrates the business's dedication to customer satisfaction
and their willingness to address any issues promptly and effectively.
Lastly, Island Flavors understands the significance of availability and
reliability. By strictly adhering to the specified business hours, they ensure that
customers can rely on their services during the designated times. This
commitment to consistent availability contributes to customer loyalty and
satisfaction. Island Flavors' aim to provide quality food that surpasses customer
expectations is supported by proper supervision, hygienic practices, and a safe
environment. By offering accessible contact details, they encourage open
communication with customers, ensuring their concerns are addressed. The
business's commitment to being available during designated hours further
reinforces their dedication to customer satisfaction and creates a reliable and
trustworthy image.
Environment
The construction of the floating restaurant will make use of locally sourced
bamboo, emphasizing sustainability and supporting the local economy. By
utilizing bamboo, which is a fast-growing and renewable resource, the restaurant
demonstrates its commitment to minimizing environmental impact and promoting
eco-friendliness.
To ensure the preservation of the area's natural ecosystem, the placement
of the floating rafts will adhere to the guidelines set by the Department of
Environment and Natural Resources (DENR). These guidelines take into account
factors such as water flow, marine life habitats, and other environmental
considerations. By following these designated areas, the restaurant aims to
minimize disruption to the ecosystem and maintain the ecological balance of the
surrounding environment.
To ensure a clean and safe dining experience, the restaurant will employ
maintenance personnel who will be responsible for regular cleaning and upkeep
of the floating rafts. This includes maintaining a hygienic environment, keeping
the dining areas clean, and ensuring the proper disposal of waste. By prioritizing
cleanliness and hygiene, the restaurant aims to provide customers with a
pleasant and enjoyable dining experience while also upholding health and safety
standards.
In summary, the construction of the floating restaurant will prioritize the
use of locally sourced and sustainable materials such as bamboo. The
placement of the rafts will adhere to guidelines set by the DENR to minimize
disruption to the natural ecosystem. The employment of maintenance personnel
will ensure a clean, safe, and hygienic environment for customers. Through these
measures, the floating restaurant aims to offer an eco-friendly and enjoyable

dining experience while respecting and preserving the surrounding natural
environment.
Generalization
The suggested venture, Island Flavors floating restaurant, exhibits a
strong commitment to contributing to the Philippine economy in multiple ways.
Firstly, the creation of numerous job opportunities for the residents of Bañadero,
Tanauan City, Batangas addresses the pressing issue of unemployment in the
area. These employment opportunities extend not only during the project's
development phase but also during its operational stage, providing sustained
income for employees and contributing to the country's tax revenue. By
generating employment and income, the venture helps stimulate economic
growth and improves the livelihoods of individuals in the community.
Island Flavors also demonstrates social desirability by focusing on
affordability, food safety, and customer satisfaction. By providing affordable
prices for their diverse range of delicious food offerings, the restaurant makes its
cuisine accessible to a wide range of people, benefiting not only the local
community but also neighboring areas. Moreover, the commitment to using safe
and healthy ingredients ensures that customers can dine with confidence,
knowing that their health is a top priority. Through rigorous safety standards and
open communication channels, Island Flavors fosters trust, loyalty, and customer
satisfaction, creating a positive social impact and contributing to the overall well-
being of the community.
In addition to its positive social and economic impact, the proposed
floating restaurant emphasizes environmental responsibility. By utilizing locally
sourced and renewable bamboo for construction, the venture showcases its
commitment to sustainability and supporting the local economy. The adherence
to guidelines set by the Department of Environment and Natural Resources
(DENR) for the placement of the floating rafts further demonstrates a dedication
to preserving the natural ecosystem and minimizing disruption to the
environment. The employment of maintenance personnel to ensure a clean and
hygienic environment reflects the restaurant's commitment to upholding health
and safety standards while providing customers with an enjoyable dining
experience. Through these environmentally conscious practices, the floating
restaurant aims to contribute to a greener and more sustainable future.
In summary, Island Flavors and the suggested floating restaurant
encompass a range of initiatives that contribute to the Philippine economy,
generate employment opportunities, prioritize customer satisfaction, support local
suppliers, and demonstrate environmental responsibility. These efforts
collectively showcase a holistic approach to business, fostering economic
growth, social well-being, and environmental sustainability.


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BATANGAS STATE UNIVERSITY

The National Engineering University

ISLAND FLAVORS: A FEASIBILITY STUDY OF ESTABLISHING A FLOATING

BAMBOO RAFT RESTAURANT IN BAÑADERO BAYWALK, TANAUAN CITY,

A Feasibility Study Presented to the Faculty of Industrial Engineering

Batangas State University The National Engineering University Lipa

Lipa City, Batangas

In Partial Fulfillment of the Requirements for the Degree of

Bachelor of Science in Industrial Engineering

Intacto, John Edward J.

Jaen, Kent Amiel L.

Lirag, Francis Ray A.

Loremia, Jasmin Joy M.

This feasibility study entitled “ISLAND FLAVORS: A FEASIBILITY

STUDY OF ESTABLISHING A FLOATING BAMBOO RAFT RESTAURANT

IN BAÑADERO BAYWALK, TANAUAN CITY, BATANGAS” prepared and

submitted by JOHN EDWARD J. INTACTO, KENT AMIEL L. JAEN,

FRANCIS RAY A. LIRAG, JASMIN JOY M. LOREMIA, in partial fulfillment of

the requirements for the degree of BACHELOR OF SCIENCE IN INDUSTRIAL

ENGINEERING is hereby accepted.

ENGR. PAUL RICHARD G. CUAREZ

Approved by panel on oral examination with a grade of _________

Accepted and approved in partial fulfillment of the requirements for the

LEOVEN A. AUSTRIA, MSIEM, CIE

gratitude to the people who made this feasibility study possible:

Firstly, we want to thank our Project Feasibility Adviser, Engr. Paul

grateful for his support from the beginning to the end.

We would like to extend our gratitude to our parents who supported us

We also want to thank our fellow BS Industrial Engineering students for

support has been invaluable.

Lastly, we want to express our deepest thanks to the Almighty God. We

complete this study and prepare for our future.

To the business owners, government staff, and employees who provided

essential information, we express our heartfelt gratitude.

To our beloved family, relatives, classmates, and friends, your unwavering

support and inspiration meant the world to us.

strength and guide.

With deep appreciation, we dedicate this work to everyone mentioned above.

ISLAND FLAVORS: A FEASIBILITY STUDY OF ESTABLISHING A

Industrial Engineering Department, College of Engineering

Batangas State University - The National Engineering University, Lipa City

Email: 20-35779@g.batstate-u.edu.ph, 20-35018@g.batstate-u.edu.ph, 20-34425@g.batstate-

1. BACKGROUND OF THE STUDY Filipino cuisine. Grilled or fried fish, shrimp,

Extensive market research, technical Recognizing this opportunity, the proponents

Restaurant from 2023 to 2027. The

Table 4 shows the market share for

2025 550,353 550,353 2.4 Marketing Strategies and Programs

2026 576,881 576,881 The growth of the business depends

platter, and fresh fruit, which are sure to

caught fish to patrons, which—when paired

3.4 Service Schedule

Island Flavor Restaurant will be

The proponents also considered the

4. FINANCIAL STUDY and strategic actions. By reviewing the

4.2 Financial Statements 4.2.2 Cash Flow Statement Analysis

Financial statements are formal Cash flow statement analysis entails

statement that offers a snapshot of a

The balance sheet provides important

being, including its financial health, ability to

2026 1,211,204.71 5,523,512.50 21.93% 2024 639,868.86 1,300,000.00 49.22%

2027 1,482,624.94 6,181,617.86 23.98% 2025 777,662.18 1,300,000.00 59.82%

2028 1,792,064.02 6,918,811.61 25.90% 2026 968,963.77 1,300,000.00 74.54%

2027 1,186,099.95 1,300,000.00 91.24%

Table 27 shows the return on 2026 968,963.77 4.00 242,240.94