Maranans Street Food Market

A Feasibility Study

Presented to
The Faculty of the Graduate School
Filamer Christian University
Roxas City

In Partial Fulfillment
of the Requirements for the Degree
Master in Business Administration

by

Ferdinand B. Maranan

October 2016
1

Table of Contents
Chapter I Introduction
1.1
1.2
1.3
1.4
1.5
1.6
1.7

Project Background Rationale

Description of the proposed project
Objectives of the project
Project Proponent
Proposed Name of the Project
Type of Business Organization
Location of the Business

Chapter II Management and Organization Feasibility

2.1

Personnels Organizational Chart

2.2

Management Proposal
2.2.1 Hours of Operation
2.2.2 General Policy
2.2.3 Courtesy and Customer Relation
2.2.4 Business Ethics and Conduct
2.2.5 No Solicitation Policy
2.2.6 Employee Termination
2.2.7 Payroll and Overtime

Chapter III Marketing Feasibility

3.1

Market Description
3.1.1 Demand
3.1.2 Supply

3.2

Demand and Supply Analysis

3.3

General Marketing Practice

3.4

Proposed Marketing Plan

3.5

Projected Sales
2

Chapter IV Technical Feasibility

4.1

Description of Proposed Product/Services

4.2

Delivery of the Service

4.3

Production Process

4.4

Materials Handling Design

4.5

Technology Assistance

4.6

Project Site and Layout

4.7

Building and Facilities

4.7.1 Old Faade
4.7.2 New Faade

4.8

Floor Plan

4.9

Machinery and Equipment

4.10 Utilities
4.11 Raw Materials Requirement
4.12 Manpower Requirement
4.13 Waste Disposal Management
4.14 Production Cost
Chapter V Financing & Financial Feasibility
5.1

Total Project Cost

5.2

Financier

5.3

Major Assumption Used

5.4

Projected Financial Statement (5 years)

5.5

Financial Analysis

5.6

Notes of Financial Statement

3

Chapter VI Socio Economic Feasibility

6.1

Contribution to the Community

6.2

Contribution to the Employees

6.3

Contribution to the Government

6.4

Contribution to other Beneficiaries

Chapter I

INTRODUCTION
4

1.1 Project Background Rationale

Street and snack foods can be found in nearly every corner
of the world and have been on sale for thousands of years. Such
foods are inexpensive, provide a nutritional source based on
traditional

knowledge,

mostly

follow

the

seasonality

of

farm

production and thus allow for variation in consumer diets, and

are widely distributed and available in both urban and rural
settings.

They

provide

food

distribution

activities

at

the

smallest scale, but with intensive coverage. Any location with

people

traffic,be

it

constant

or

intermittent,

provides

an

excellent selling ground for vendors of street and snack foods.

Many people who are poor and cannot afford food from retail
stores depend on food that street vendors provide.
The definition of street foods provided by the Food and
Agriculture Organization (FAO) is: Street foods are ready-to-eat
foods and beverages prepared and/or sold by vendors and hawkers
especially in streets and other similar public places. This
definition emphasizes the retail location on the street, with
foods sold from pushcarts, bicycles, baskets or balance poles, or
from

stalls

that

do

not

have

four

permanent

walls.

This

distinguishes street food vendors from more formal food service

operations,

such

as

restaurants.

Another

cafs,

takeaways,

definition

highlights

chopbars
the

diversity

and
of

street food production: Street foods are minimally processed to

highly processed foods that are sold on streets and other public
places,

consumed

on

the

spot

and/or

ready

to

take

home

or

delivered to the work place, including catering activities that

can serve celebrations such as weddings.
The know-how to make such foods is easily accessible as it
is commonly passed down from generation to generation and is
easily assimilated. The highly competitive nature of street and
snack food markets, with many vendors in one location selling
common

dishes

entrepreneurial

and
skills

snacks,
to

make

provides
product

opportunities

variations,

which

for
can

provide advantage and favour among consumers.

Street and snack foods show great variation in terms of their
ingredients, how they are prepared, and how they are sold and
consumed. The nutritional value of street and snack foods depends
on the ingredients used and how the street food or snack is
prepared.

It

can

provide

important

daily

nutritional

requirements, as long as appropriate ingredients and methods of

preparation have been observed.
Street foods have recently begun to attract the attention of
governments and various international agencies because one of the
features

of

urbanization

in

developing

countries

has

been

proliferation of the street food trade (FAO 1989). Street food

vendors are a ubiquitous and conspicuous presence in most cities
6

and they sell a variety of wares ranging from snacks and drinks
to full meals. An increase in the consumption of street foods is
one

of

the

dietary

trends

that

has

been

identified

as

characterizing urban diets (Rossi-Espaguat et al. 1991; Hussain

1990;

Lunven

1994).

Despite

this,

the

attitude

of

many

governments towards the street food trade has been indifference

with little or no interest in the role that it may play in either
the

economy

or

the

food

supply

of

the

city.

The

rise

in

consumption of street foods has been identified by some as a

deleterious trend (Gopalan 1992), but this bias against street
foods

and

also

the

street

food

trade

is

largely

unfounded.

According to Tinker (1988), the neglect of street foods stems in

large part from a series of misconceptions about both the nature
of the street food trade and street foods themselves:

that the street food trade is a marginal and transitory

economic activity, which is a hangover from traditional

market activities and which in time will disappear;

that it is dominated by women;
that it is focused in the main commercial areas of urban

centers;
that street foods are "dirty" and "dangerous" to eat;
that only the poor eat them;
that they do not make an important contribution to dietary
intake.

Diarrheal diseases due to contaminated and unhygienic food

are among the leading causes of illness and deaths in low-income
countries and several outbreaks of disease have been attributed
to the consumption of street food.
Teenagers today are fond of trying new dishes regardless of
knowing its safety and its content. Being so adventurous leads
them to be unconscious on the foods they eat and the place where
they buy it. Street foods are known because of its affordability
and enchanting taste. However, because of unsafe practices such
as inadequate storage, reheating of food before sale insufficient
hand

washing

and

inappropriate

cleaning

of

cooking

utensils,

these foods become hazardous to our health.

Markets
locally

in

produced

the

Philippines

products

and

often
goods

showcase
from

combination

their

neighboring

countries like China. In some markets nooks, local artisans sell

their works for a cheap price. It is the place as well to have a
glimpse of how locals live their everyday lives.
In accordance to this matter, the proponent of Maranans
Street Food Market decided to come up with the idea of catering
Filipino street foods such as kwek-kwek, balut, isaw, fishball,
calamares, chicken skin, adidas, and pork barbeque in ways that
taste and safety of the food will be assured. Considering factors
such as aesthetics, methods of preparation, presentation of food,
8

quality of the products, sanitary procedures and best service

accommodation will be the key factors to attain customers trust
and loyalty. Through quality management, customers satisfaction
will be achieved.
1.2 Description of the Proposed Project
The study is about a food kiosk catering street foods as its
main

dish.

The

objective

of

the

proponents

in

making

this

business possible is to make an impression that usual Filipino

street foods that we encounter can also be safe, savoury and be
complemented to other dishes. The proposed business wants to
emphasize that aesthetics, appearances, presentation of food,
personal trust and interaction with our customers are the most
important parameters for assessing food safety as well as meeting
our customers needs and wants. People in all walks of life can
now

have

the

perception

that

street

foods

are

not

just

an

alternative food if you want to be a spend thrift but rather

these are also foods which will delight you and will give you
satisfaction beyond your expectations.
1.3 Objectives of the Project
To be able to change the perception of people regarding
safety and cleanliness of
street foods,

 To increase the level of awareness of customers on the

different ways that the street
foods can be introduced from a simple and ordinary recipe to a
nutritious, stylish
andsavoury dishes or cuisine,
To line up with other competitors using our unique approach
in catering street foods,
To offer an affordable but delicious and a satisfying street
foods.
1.4 Project Proponent
The proponent of the proposed project is Mr. Ferdinand
Maranan. Mr. Maranan is a Senior Technician at BangkoSentral ng
Pilipinas.
1.5 Proposed Name of the project
Maranans Street Food Market is the proposed name of the
project.
1.6 Type of Business Organization
The Maranans Street Food Market will be owned and
operated by Mr. Ferdinand Maranan
1.7 Location of the Business
The proposed business will be located at Stall 2 occupying
the series of stalls in ColegiodelaPurisimaConcepcion.Location is
one of the major factors to be considered in starting up a
business. Itmust be assured that it is accessible to the target
10

market. If location is later found to be incompatible to the

situation as to give consideration to its target market, Itmay
lead the company to failure. Right choice of location means
reaching your target customers and you respond correctly to their
market needs.ColegiodelaPurisima Concepcion is considered to be a
strategic location for business because it lies in one of the
busiest place in Roxas City.

11

Chapter II

MANAGEMENT AND ORGANIZATION FEASIBILITY

Management is one of the important aspects in establishing a

business. It is the performance of conceiving and achieving
desired results by means of group effort consisting of utilizing
human talents and resources. Therefore, management is considered
as the force that runs an enterprise and is responsible for its
success or failure.
The

overall

implementation

plan

is

discussed

in

the

organization and management study. This aspect includes a study

of

the

forming

officers
the

and

key

organization,

personnel,
form

of

basic

consideration

ownership,

in

organizational

chart and project schedule.

The objective of the management aspect of a feasibility study
is to determine the option effectiveness of the organizational
setup and the qualifications of the individuals who will make up
the

organization.

This

aspect

will

determine

the

successful

realization of the project study.

12

2.1 Personnel

(Organizational Chart)

FERDINAND B. MARANAN
Owner

Supervisor

Shift A

Shift B

Cashier
Crew I

Cashier
Crew VI

Cook
Crew II

Cook
Crew VII

Cook
Crew III

Cook
Crew VIII

Waiter / Server
Crew IV

Waiter / Server
Crew IX

Waiter / Server
Crew V

Waiter / Server
Crew X

13

Supervisor / Purchasing Officer (1 vacancy)

Job Description:

Monitoring and analysing market trends

Studying competitors' products and services

Exploring

ways

of

improving

existing

products

and

services, and increasing profitability

Responsible in analysing the business condition

Determines

annual

unit

and

gross-profit

plans

by

implementing marketing strategies; analyzing trends and results.

Establishes and adjusts selling prices by monitoring

costs, competition, and supply and demand.

Establish

and

maintain

positive

community

relationship

Select trained effective worker

Work well in a team and with a wide range of people

Conduct performance review of workers

Implements the rules and regulations of the company

Cashier (2 vacancies)
Job Description:

Responsible

for

managing

and

monitoring

the

cashiering

operations of the store

Ensuring

the

efficient

and

accurate

recording

of

sales

transactions
14

Ensuring the consistent compliance of applicable policies

and procedures in the store

Responsible in analyzing the business condition

Accountable for the daily sales of the store

Cook (4 vacancies)
Job Description:

Responsible for cooking the menu of the street food market

Responsible in cleaning the cooking area and washing the

dishes

Must be mentally and physically fit

Must be very accustomed to all ingredients in terms of

prices and quality.

With keen to details especially in ingredients measurement

Waiter / Server (4 vacancies)

Job Description:

Sell the product to customers

In-Charge in taking orders, serving the foods, and other

customer related matters.

In-Charge in cleaning the area

In-charge in promoting the product to customers

15

2.2 Management Proposal

The proposed night markets appear deceptively simple to open
and

operate

yet

they

require

carefulplanning

and

effective

management if they are to achieve operational success quickly

andbecome centers of community life and sustainable local growth
and development in the long run.
Careful consideration needs to be taken in regards to the
overall

governance

structure,

processes

and

management.

Therecommended governance approach would include a diverse yet

relatively equal representation of thecommunity.
There is a store manager who is over all in charged for the
day-to-day

operation

of

the

business.

At

the

present,

the

business has the total of11 employees and as the business grows
new employees will be hired for the minor business operation.
Through an organized organizational structure, there will be a
smooth operation of the business and also based on the technical
know-how of the managers, therefore, this business is feasible in
this aspect.
2.2.1 Hours of Operations
The proposed night market will open 7 days per week. The
market hour will start at 8 am and end at 11 pm. This hour will
compose of two shift sequence that will compensate the volume of
hours the store will cater the market.
2.2.2 General Policy
16

2.2.3 Courtesy and Customer Relations

The customer is the most important person in the business
and deserves the most courteous and attentive treatment. Courtesy
begins with respect and consideration and every Maranans Street
Food Market employee is expected to be polite to customers and
fellow employees, regardless of the situation.
Welcome
Always acknowledge and greet customers in a prompt,
friendly manner. Grammar Proper grammar is a must. Speak
clearly

and

eloquently

when

you

are

addressing

our

customers.
Assist
Answer questions and solve problems to the best of your
ability.

Obtain

assistance

from

supervisor

or

fellow

employee if necessary or direct the customer to someone who

can

provide

the

correct

answer.

Ensure

you

introduce

yourself and ask if they have any questions right from the
start. Make them at ease by employing a friendly smile and
happy attitude. Be certain to ask them the right questions.
This will show the customer that you are knowledgeable about
the

products

that

we

offer

and

perhaps

remove

some

apprehensions that they might have.

Exceed

17

Always

take

the

extra

step

to

make

sure

every

customers expectations are not just met, but exceeded.

Smile, Smile, Smile!
It is understood in all languages.
2.2.4 Business Ethics and Conduct
The

successful

business

operation

and

reputation

of

Maranans Street Foods Market is built upon the principles of

fair dealing and ethical conduct of the employees.
Accepting gifts It is inappropriate for any employee to
accept gifts or favors from customers, vendors or others
conducting business or intending to conduct business with
Maranans Street Food Market. This policy is not intended to
prohibit the acceptance of conventional gratuities.
Tip Hustling Suggesting or demanding that any type of
conventional

gratuity

is

required

or

expected

for

any

service is prohibited.
Found Property/Money All found money is to be turned in to
the supervisor. There are no exceptions.
Kickbacks It is strictly prohibited for any Maranans
Street Food Market employee, director, or officer to accept
any

kickback,

bribe,

substantial

gift

or

special

consideration as a result of any transaction or business

dealings involving Maranans Street Food Market.

18

Violation of this or any of the above policies can result in

disciplinary action up to and including discharge. If a situation
arises where it is difficult to determine the proper course of
action, the matter should be discussed openly with thesupervisor
2.2.5 No Solicitation Policy
It

is

the

policy

of

Maranans

Street

Foods

Market

to

strictly prohibit solicitation for any purpose, by employees and

non-employees

alike,

at

any

time.

Employee

collections

for

flowers or gifts to employees or members of their families are

not permitted. Some employees have greater financial obligations
than others and collections of this kind can be embarrassing for
those whose budgets will not allow them to contribute. To avoid
putting anyone on the spot, as well as to lessen the financial
burden of employees neither supervisors, Supervisors nor officers
are

permitted

collection

is

to
a

accept

gifts

violation

of

from
the

employees.

No

Any

Solicitation

employee
policy.

Violation of this policy can result in disciplinary action up to

and including discharge. Under no circumstances may any employee
sell any items to fellow employees, bring in catalogs for the
same purpose or make collections for any reason.
2.2.6 Employee Termination
Final Checks Will be issued on your next scheduled payday.
All Maranans Street Foods Market property must be returned prior
to receiving paycheck. If employed at Maranans Street Foods
19

Market less than three months, uniforms will be deducted from

employees final paycheck.
Exit Interview Maranans Street Foods Market will schedule
an exit interview at the time of termination. The exit interview
will afford an opportunity to discuss such issues as employee
benefits and conversion privileges. Suggestions, complaints, and
questions can also be voiced.
2.2.7 Payroll and Overtime
In accordance with the Labor Code, the hours and overtime
policy

is

intended

to

compensate

hourly

paid,

non-exempt

employees fairly and equally for work performed on an overtime

basis.
Work week For payroll purposes, a work week consists of
seven (7) days of twenty-four (24) hours each. The work week
begins at 00:01 AM, Monday and closes at 24:00 Midnight,
Sunday. Cut off for the end of the pay periods are the 15th
and the end of each month.
Overtime During any given work week, one and one-half
times the employees normal rate will be paid for any hours
worked over forty hours in that same work week. All overtime
hours must be approved by the Manager.
Errors and Adjustments If you believe there is an error on
your paycheck, please discuss this with your supervisor.

20

He/She will submit the necessary paperwork and if valid, an

adjustment will be made as soon as possible.

21

Chapter III

MARKETING FEASIBILITY

Marketing is a system of business activities designed to

plan, price, promote and distribute want-satisfying goods and
services to present and potential customers. It is considered as
the lifeblood of every business transactions because it is a
strategic way on how to cope up to the needs and wants of the
costumers, finding opportunities regarding it, introduce and
market the product, achieve customers loyalty and patronage.
This aspect includes the following topics: demands, supply,
demand and supply gap analysis, and marketing programs. Marketing
aspect serves as the basis of the financial section through the
projected demand. There can be no discussion of profitability or
of the other aspects of the study; if in the first place, there
is no demand or market.

Every business is practically aspiring

for productivity but practically in order to last in the business

world the first thing to take into consideration is the target
market. The costumers will be the key factor to achieve the
objectives

of

the

organization.

Finding

opportunities

and

spotting the right market are both important in establishing a

22

business.

Knowing

customers

demand

and

supplying

them

right

products at reasonable prices.

3.1 Market Description
Like every other country, the food industry has flourished
very well in Philippines. Filipinos love to eat and thats the
reason why you will see a lot of restaurants and fast foods
restaurants scattered in the cities. These restaurants and fast
foods can be local or international food chains. Filipino food
and chefs are considered one of the best in the world. It is
hardly surprising that Filipino food is often labeled as somewhat
strange (like the balut for example) but in its own way, its
food is a unique mixture of eastern and western cuisines and
reflects the history of Philippines. The Filipino food includes
dishes and cooking procedures from China, Spain, Mexico, United
States, and more recently from further abroad. However, what
makes them Filipino is the history and society that introduced
and adapted them; the people who turned them to their tastes and
accepted them into their homes and restaurants, and specially the
harmonizing culture that combined them into modern Filipino fare.
Some of the popular fast food chains of Philippines are Jollibee,
McDonald, KFC, and Chowking, etc. and popular restaurants being
Abe, Chelsea, Fridays, Chilis and a lot more.

23

Attracting a huge crowd to restaurants or fast foods require

more than just good food. Though important, good food is only a
part

of

the

total

dining

experience.

Equally

important

is

believed to be the way people feel while in the restaurant. This

physical and emotional response is a result of the atmosphere,
the total environment to which customers are exposed. The proper
atmosphere can make the food, service and whole dining experience
seem better. For that reason a restaurant or a fast food must
take care of the following to please its customers. This includes
checking the cleanliness of the place and freshness of the food,
guarded premises, parking area where people can park, ambiance
and landscaping, building design, lighting, and even music.
The street food trade is a growing sector in many developing
countries today. Its expansion is linked with urbanization and
the need of urban populations for both employment and food.
Despite this, the role of street foods in supplying the nutrient
needs of urban populations has received little official attention
and more notice has been paid to the potential dangers arising
from the consumption of street foods than to any benefits they
might offer. Much of the bias against street foods, however, is
unfounded and based more on prejudice than empirical data.
Potential constraints to fortification include food safety
requirements (both quality control of the fortification process
24

and microbiological safety), consumption requirements, cost, and

the enormous variability of street foods in terms of ingredients
and the ways in which they are processed. Information is needed
on all of these to evaluate the potential for the fortification
of street foods and to identify suitable vehicles in specific
country contexts.
It is important to recognize that the street food trade is
both retail and a productive activity: although the sale of
street foods is the most visible part of the trade, most street
foods have been processed to some extent, much of which may have
occurred unseen off-street.
Currently, street foods in the City of Roxas where scattered
in the vicinity of the busiest places. The proposed project
provide

economic

opportunity

to

range

of

operators

and

entrepreneurs which is the target market of the project; properly

structured
revitalize,

they

provide

renew

and

communities
refresh

with

an

neighborhoods

opportunity
and

to

downtown

enclaves; they can be an especially important gathering place for

social interaction amongst a range of demographic and socioeconomic

cohorts;

they

provide

public

space;

they

link

the

community to its agricultural roots and environs; and they are

pathways for good health and nutrition to name but a few of the
more obvious benefits that accrue with the development of a
healthy market.
25

3.1.1 Demand
About 2.5 billion people eat street food every day (FAO,
2007). This is evident in the growth of street food outlets
(market) which have become so popular along the streets in the
cities.

Consumption

of

street

food

is

becoming

an

essential

component of the food market as most of the working class chooses

to dine outside rather than prepare meal at home. Street food
markets have really suppressed the full- service of restaurants
as the main sources of food away from home (Ayo et al., 2012).
This is probably because of easy accessibility, inexpensiveness,
exhibition

of

local

varieties,

proximity

to

the

consumer,

convenience and way of advertisement. It is generally observed

that urbanites spends substantial amount of their food budget on
street food and is quite high among the urban areas and not only
among high income groups (Delisle, 1990). A study conducted in
Accra revealed that almost 40 percent of the total food budget
goes

to

purchasing

street

foods

in

the

lowest

expenditure

quintile, 25 percent in high-income households (Maxwell et al.,

2000).
Similar study done in Philippines also revealed that 20-30%
of household expenditure is spent on food outside the home and
20% in Columbia (Delisle, 1990). It was also estimated that 30%
of household budget is spent on street food (Leonard et al.,

26

2003).Tinker,(1993) also noted that 20% of household budget is

spent on street foods.
Despite the growing importance of the modern food retail
sector in the Philippines for the overall food economy that
caters variety of foods, there has been only few night markets
available

in

the

Philippines.

Majority

of

these

markets

are

concentrated in Metro Manila while other major cities like Cebu

and Davao have at least one major night market.In fact, Manila is
ranked ninth among the cities in Asia in terms of street foods
and night market hub according to the CNN Travel. Public spaces
uplift the spirit regardless of age, social standing or location,
and

are

vital

to

the

well-being

of

citizens

in

livable

community.
In Roxas City, vendors selling snacks and condiments at
night were crowding the streets with their portable stalls with
no regulations to keep the foods safe. Due to the diversified
social status of the people and an increasing engagement in night
activities, streets vendors would extend their selling hour till
midnight.

With

current

population

of

167,003

and

population

growth of 1.64 %, the city drastically changes along with the

need of a new public space for new entrepreneurs.
Neighboring municipalities were also included in the demand
analysis since Roxas City is considered as one of Panay Island's
center of education, trade, economic activity and logistics.
27

3.1.2 Supply
In 2015, street food market continued to gain ground in the
Philippines consumer foodservice landscape. Street food market
that are organised in groups to operate within a food truck
market

such

as

CucinaAndare,

MercatoCentrale

and

MezzaNorte

continue to operate to serve their targeted consumers in specific

areas of Metro Manila. During the first quarter of 2015, Kitty
and

Cheska

Del

Castillo,

in

collaboration

with

the

Metro

Manila Food Truck Association, launched a food park called StrEat

in

Maginhawa

Quezon

City.

It

claimed

to

be

the

new

foodie

destination in Metro Manila as it not only highlights new food

concepts but also aims to build and nurture a community and the
local art scene. It also has a dining area that is al fresco,
which is consistent with the food parks atmosphere that is
laidback and astute. Food items sold by food trucks vary and
include rice meals, burgers, shawarma, sandwiches and desserts,
among others.
Local authorities in the Philippines had begun to realize
the

street

foods

roles

in

encouraging

the

youth

population

greater involvement in business. They could be considered as

business incubators for aspiring entrepreneurs since they would
need to put in a very small investment to start the business, the
risk of failure was minimal, and there was the opportunity to
earn

hefty

income.

The

street

food

market

provided

the
28

opportunity for those individuals to develop self-confidence, to

enhance their business and marketing skills, and to build rapport
with suppliers and consumers
Many street food restaurants have been established in key
cities in the Philippines. Aling Nene is most well-known for
their barbecue and lechon, but their unique variety of chicharon
shouldnt

be

missed.

ChicharonIsaw,

but

ChicharonBalat

ng

They
they

have
also

Baboy,

not-so-common
have

Chicharon

the

offerings

like

classics

like

with

Laman,

and

ChicharonBulaklak.
In Roxas City, Burgos St. offers a street food experience
but

only

on

short

period

of

time

and

with

food

safety

regulations. Vendors are more likely to end their selling around

8 to 9 pm. This market though is not in a stall but rather
vendors placed their products on sidewalks and offers mostly
fresh seafood and vegetable. Few vendors offer street foods and
condiments but count only the minority of the vendors.
3.2 Demand and Supply Analysis
The City of Roxas haswielded an effort to maximize economic
value of the city by establishing new business hubs like Pueblo
de Panay and the Capiz Business Center. Roxas City has become a
bustling metropolis, thanks to the presence of many business

29

establishments and numerous multimillion peso road projects. The

City now hosts to several hotels and resorts and new malls,
practically

giving

employment

to

Capiceos.But

the

area

was

occupied mainly by restaurants mainly offering different cuisines

and left the street foods industry in the sideline.Unlike highly
urbanized cities like Manila, Cebu and Davao, Roxas City has yet
to offer an establishment which focused its main dishes into
street foods. The proposed project was envisioned to answer this
gap between the consumers and the industry.
3.3 General Marketing Practice
Clearly, a properly focused market launch will be critical
to the establishment of a firm foundation from which subsequent
operational successes will need to be premised. In this regard it
is recommended that the proposed night market pursue a market
positioning as follows:
Keep the public informed.
Ensure operations and strategies are based on sound business
practices.
Market needs to be of substance and uniqueness in order to
be a retail destination.
Be demand focused not supply focused.
Plan for the future.
Get the strategic partners involved.
30

Make decisions based on good records.

Evaluate continuously.
Create a high-quality and diverse product mix.
Have adequate capitalization.
3.4 Proposed Marketing Plan
Product Strategy
Youth of today are fond of eating street foods. This will
serve as the competitive advantage of our business enable to
penetrate to the market. The products will be cooked in its
traditional way in able to maintain the original taste of these
foods. But, presentation will be something different. Maranans
Street

Food

Marketwants

to

emphasize

the

importance

of

aesthetics, appearance and food preparation enable to attract

customers as well as to achieve customers delight through safe
and quality products. For takeout products it will be packed in a
L.O plastic with disposable spoon and fork.
Location Strategy
The location of the proposed project in considered as a
strategic spot for street foods business because it is located
within the heart of the city. It lies within the City Plaza that
lures many people to hang out.ColegiodelaPurisima, one of the
biggest

academic

institutions

in

Capizand

the

Immaculate

Concepcion Church were also located in the proposed location. The

31

location of the business will be accessible enough to meet the

needs of our target market.
Posters
Posters will be placed in the store. The design of the
poster can able to catchthe attention of the customers because of
the information provided as well as its aesthetic. Chosen colors
are pleasing to the eye and will surely boost the interest of the
customers to eat to our restaurant.
Flyers
Flyers can convey wide range of possible buyers for it can
be brought to other places. The store will produce 50 flyers per
day. These flyers will be distributed twice a week or eight (8)
times in a month. This mode of promotion will be used in the
first five years of business
3.5 Projected Sales
The projected sale of the proposed project is the calculated
though

the

market

share

which

is

assumed

to

be

10%

of

the

outstanding target market of 167,003. Below is the project sale

of the proposed project in the first year of operation.Sales was
assumed to increase by 5% per year.
Products
Adidas
Balut
Calamares

Product Share
(%)
4
4
6

Pieces Sold
668
668
1,002

Amount (annum)
80,161.44
160,322.9
240,484.3
2
32

Chicken Skin
Fishball
Isaw
Kwek-kwek
Pork Barbecue

7
15
7
10
13

1,169
2,505
1,169
1,670
2,171

Iced Tea
Pineapple Juice

5
5

835
835

Sago'tGulaman

835

Halo-halo
Mais Con Yelo

6
5

1,002
835

Saging Con Yelo

668

4
100

668
16,700

Sorbetes
Total

280,565.04
30,060.54
70,141.26
200,403.60
651,31
1.70
150,302.70
150,30
2.70
150,30
2.70
300,605.40
150,302.
70
120,2
42.16
80,161.44
2,815,670.58

33

Chapter IV

TECHNICAL FEASIBILITY

This study discusses about the processes of production and

activities of the company. It states also the machineries and
equipment used in production and other aspects regarding bringing
the raw materials into a finished product ready for trade. Plant
layout, size and production schedule are all presented for the
purpose of identifying the business operation.

Also, product

specifications, the product processes using flowchart, the list

of machinery, tools, and equipment are enumerated with their
corresponding costs, the raw materials and fund sources are also
cited.
After having determined the market size and area, product
demand and growth, the potential and technical feasibility of
the

project

may

be

analyzed.

This

stage

deals

with

the

allocation of resources that will be needed in order to satisfy

the market. The technical soundness analysis will be considered
complete if all pertinent technical aspect of the project have
been taken into account in the analysis and if the planned
construction or procurement conforms to accepted standards and
practices. The estimated cost of the project should be as low as
34

any other reasonably available alternate which would produce the

intended

results.

The

objective

of

this

portion

of

the

feasibility study is to determine to what extent the project

meets the technical soundness criteria.
4.1 Description of Proposed Product/Service
Maranans Street Food Markets products are the top eight
most in demand street foods in the Philippines. The image of
these

products

is

unhygienic

because

it

is

exposed

on

the

different hazards especially physical hazards on the streets. The

proponent

would

like

to

change

this

kind

of

perception

by

producing these street foods in a safe and clean manner. Standard

sanitation procedures are the main consideration in producing a
quality

and

safe

products.

And

aside

from

that

we

would

to

emphasize that our products are nutritious.

Our

products

consist

of

different

foods,

drinks,

side

dishes, and desserts making a complete meal. Our main foods are
street foods namely Kwek-kwek, Balut, Isaw, Fishballs, Calamares,
Chicken Skin, Adidas and Pork Barbeque. It is sold individually
by a specific number of pieces with one sauce and dip chosen by
the customer and also can be served in a value meals with rice
and drinks. The drinks of KalyeOcho are Pineapple Juice, Iced Tea
and Sagotgulaman in 16oz. The desserts included are Halo-halo,
Saging Con Yelo, Mais Con Yeloand Sorbetes which is available in
35

sweet cone with two flavours to choose from (Ube and Cheese). Our
Sauces and Dips are available into four kinds which are sweet,
spicy, mayonnaise and vinegar.
4.2 Delivery of the Service
The proposed project will be manned and supervised by
the

Supervisor

alongside

with

his

crew

to

ensure

that

the

prospective clienteles are consistently provided with safety,

cleanliness and comfort and at the same time they are related
with respect, kindness, and concern for their needs. The proposed
project will open from 8 am till 11 pm and are accessible to all.
4.3 Production Process
Adidas
Ingredients:
(the quantity of the ingredients is according to number of
streetfood(s) to beproduced)
4pcs Chicken Feet
Soy Sauce
Vinegar
Barbeque Sticks
Water
Oil
Catsup
Oyster Sauce
Cooking procedure:
36

1. Wash the Chicken feet and cut the claws and trim off the
hardened unwanted spot thennib the chicken feet with salt to
clean it thoroughly then rinse it finally scald the chickenfeet
in hot boiled water for 5 minutes.
2. Put it in a tap water then remove the unwanted skin of chicken
feet.
3.

Saut

the

Chicken

feet

in

onions,

soy

sauce,

pepper

and

vinegar.
Balut
Ingredients:
(the quantity of the ingredients is according to number of
streetfood(s) to beproduced)
6 pieces balut, boiled
3 tbsp cornstarch
1 cup water
1 cup all-purpose flour
1/2 tsp salt
1/2 tsp ground black pepper
2 cups cooking oil
Cooking procedure:
1. Put the cornstarch in a container and dredge the boiled
chicken eggs. Set aside.
2. Combine all-purpose flour, salt, and pepper then mix
thoroughly.
37

3. Dilute the annatto seeds in water until the reddish color

comes out. Combine the liquid with the flour-salt-pepper mixture
and mix thoroughly.
4. Put the boiled chicken eggs in the mixing bowl and coat with
the batter.
5. Heat the pan and pour the cooking oil.
6. When the oil is hot enough, deep-fry the eggs until the
coating is crispy. Use a serving spoon to scoop the eggs from the
mixing bowl.
7. Remove the fried eggs from the pan and place in a serving
plate.
Calamares
Ingredients:
(the quantity of the ingredients is according to number of
streetfood(s) to beproduced)
1/2 lb large sized squid, cleaned and sliced into rings
3/4 cup all-purpose flour
1 piece raw egg, beaten
3/4 cup breadcrumbs
1 teaspoon salt
1/2 teaspoon ground black pepper
2 cups cooking oil
Cooking procedure:

38

1. Combine squid, salt, and ground black pepper then mix well.
Let stand for 10 minutes.
2. Heat a cooking pot the pour-in cooking oil.
3. Dredge the squid in flour then dip in beaten egg and roll over
breadcrumbs.
4. When the oil is hot enough, deep-fry the squid until the color
of the coating turns brown.
Note: This should only take about 2 to 3 minutes in medium heat.
Do not overcook the squid.
5. Remove the fried squid from the cooking pot and transfer in a
plate lined with papertowels.
Chicken Skin
Ingredients:
(the quantity of the ingredients is according to number of
streetfood(s) to be produced)
1kg Chicken Skin
1pack Chicken Breading
2 eggs
2 cups Cooking Oil
Cooking procedure:
1. Wash the chicken skin and cut it into cubes.
2. Place the flavoured chicken breading in a bowl and dip the
chicken skin

39

3. Heat the oil for deep fry in a deep frying pan until it turns
golden brown for five minutes.
4. Remove and put in a serving plate.
Fishballs
Ingredients:
(the quantity of the ingredients is according to number of
streetfood(s) to be produced)
15 pieces boiled quail eggs
1 cup flour
3 tbsp cornstarch
1/2 cup water
1 tbspanatto powder (pinulbosnaatsuete)
1/2 tsp salt
1/2 tsp ground black pepper
2 cups cooking oil
Cooking procedure:
1. Place the cornstarch in a container and dredge the boiled
quail eggs. Set aside.
2. In a mixing bowl, combine flour, salt, and pepper then mix
thoroughly.
3. Dilute the anatto powder in warm water then pour-in the mixing
bowl with the other ingredients. Mix well.
4. Place all the quail eggs in the mixing bowl and coat with the
batter.
40

5. Heat the pan and pour the cooking oil.

6. When the oil is hot enough, deep-fry the quail eggs by
scooping them from the mixing bowl using a spoon. Make sure that
each is coated with batter.
7. After a few minutes, remove the fried quail eggs from the pan
and place in a serving plate.
Isaw
Ingredients:
(the quantity of the ingredients is according to number of
streetfood(s) to be produced)
1 lb chicken intestine (well cleaned)
1/2 cup vinegar
2 tbsp whole pepper corn
2 tbsp salt
4 to 6 pieces dried bay leaves
4 cups water
Cooking procedure:
1. Pour the water in a cooking pot and bring to a boil.
2. Put-in the salt, whole pepper corn, and dried bay leaves.
3. Add the large intestines then simmer for a few minutes.
4. Add vinegar then simmer until the intestines are tender (about
30 minutes). Set aside until the temperature goes down.
5. Cut the intestines crosswise (about 1 inch in length).
6. Skewer the intestine (about 3 to 4 pieces per skewer).
41

7. Grill the intestine while basting with the mixture of cooking

oil, banana catsup, and soy sauce.
Kwek-kwek
Ingredients:
(the quantity of the ingredients is according to number of
streetfood(s) to be produced)
15 pieces boiled quail eggs
1 cup flour
3 tbsp cornstarch
1/2 cup water
1 tbspanatto powder (pinulbosnaatsuete)
1/2 tsp salt
1/2 tsp ground black pepper
2 cups cooking oil
Cooking procedure:
1. Place the cornstarch in a container and dredge the boiled
quail eggs. Set aside.
2. In a mixing bowl, combine flour, salt, and pepper then mix
thoroughly.
3. Dilute the anatto powder in warm water then pour-in the mixing
bowl with the other ingredients. Mix well.
4. Place all the quail eggs in the mixing bowl and coat with the
batter.
5. Heat the pan and pour the cooking oil.
42

6. When the oil is hot enough, deep-fry the quail eggs by

scooping them from the mixing bowl using a spoon. Make sure that
each is coated with batter.
7. After a few minutes, remove the fried quail eggs from the pan
and place in a serving plate.
Pork Barbecue
Ingredients:
(the quantity of the ingredients is according to number of
streetfood(s) to be produced)
2 lbs pork, sliced
1/2 cup soy sauce
Lemon juice from 1 piece lemon
1/2 cup banana ketchup
2 teaspoons salt
1 teaspoon ground black pepper
3 tablespoons brown sugar
8 cloves garlic, crushed and chopped
Cooking procedure:
1. Combine pork, soy sauce, lemon juice, ketchup, salt, ground
black pepper, brown sugar, and chopped garlic in a mixing bowl
then mix the ingredients well. Make sure that all ingredients are
properly distributed; using your hands in mixing the ingredients
is recommended.

43

2. Marinate the pork in the mixture overnight. Make sure to

refrigerate the marinade to avoid contamination. If in case you
are so eager to grill right away, allow at least three hours for
the meat to absorb the flavors.
3. Skewer the sliced pork using a bamboo skewer (this is also the
same as the barbeque stick that we know).
4. Grill the pork until both sides are done. Use the leftover
marinade as basting sauce. Try adding few tablespoons of soy
sauce, ketchup, and a tablespoon of cooking oil to create the
perfect bastingsauce.
Iced Tea
Ingredients:
(per serving)
360g tea powder
1l cold water
7l purified water
Serving procedure:
1. Dissolve iced tea powder in 1 liter cold water.
2. Put the solution in the dispenser.
3. Add 7l of purified water.
4. Serve and enjoy.
Pineapple Juice
Ingredients:
(per serving)
44

1 can pineapple mixture

1l cold water
7l purified water
Serving procedure:
1. Put 1 can of pineapple mixture in the dispenser.
2. Add 7l of purified.
3. Stir it well.
4. Make 22 glasses.
5. Serve and enjoy.
SagotGulaman
Ingredients:
(per serving)
4 tablespoon sago
4 tablespoon gulaman
1 tablespoon Vanilla
3 tablespoon syrup
2 to 3 ice cubes
Serving procedure:
1. For each serving put approximately 4 tablespoon of chilled
sago and gulaman into a tallglass.
2. Add 1 tablespoon of Vanilla and 3 tablespoon of syrup or more
according to taste and mixit well.
3. Add 2-3 ice cubes.
Halo-halo
45

Ingredients:
(per serving)
1tablespoon:
PinipigNata
Beans Ube
LangkaMacapuno
Kaong Sugar
1 cup crushed ice
cup evaporated milk
2 scoop ice cream (Ube and Cheese)
Leche Flan
Serving procedure:
1. Combine the first eight ingredients.
2. Add sugar.
3. Filled with crushed ice.
4. Put evaporated milk.
5. Top with two scoops of ice cream and leche flan.
Mais Con Yelo
Ingredients:
(per serving)
cup corn
1 cup ice
3 tablespoon cornflakes
cup milk
46

1 tablespoon sugar
Serving procedure:
1. Put corn inside the glass.
2. Add shaved ice and milk.
3. Put another layer of corn.
4. Sprinkle with corn flakes.
Saging Con Yelo
Ingredients:
(per serving)
2pcs saba
1 tablespoon brown sugar
1 teaspoon banana essence
1 cup ice
cup evaporated milk
Serving procedure:
1. Cut the saba into inch.
2. Put it into the serving bowl with the brown sugar and banana
essence.
3. Add the cup of ice.
4. Add the evaporated milk and add the remaining saba on the
bowl.
Sorbetes
Ingredients:
Selecta Ice Cream
47

Cone (sweet cone or ordinary cone)

Serving:
- 3 scoop of ice cream in a cone

4.4 Materials Handling Design

The Maranans Street Food Market will be open during mall
hours from 8:00 am in the morning to 11:00 pm in the evening. The
personnel and assigned service crews for the opening must be at
the store one (1) hour before the Fast food is about getting the
customers orders to prepare the products being sold on that
time. Then there is a setprocess for every order on the menu. The
customers will fall in line to the counter to giveorders then the
service crew will take the orders.
Time Motion Study

Customer will go to the store, choose product and fall in

line with the counter (50 sec)

Counter will take the order (24 sec)
Call the order, receive payment, and give change if any (25

sec)
Product preparation (5 min)
Assemble the order (1 min)

4.5 Technology Assistance

Maranans

Street

Food

Market

will

have

its

technology

assistance such as telephone, internet connection, computer, POS

system, television to make the operation of the night market

48

smooth.

CCTV

cameras

will

be

installed

to

ensure

optimum

security.
A general check-up of the facilities shall be done at least
three

months

to

ensure

that

facilities

are

well-kept

and

functioning well so that it can deliver quality and competitive

service.

4.6 Project Site and Lay-out

Project Site

4.7 Building and Facilities

The proposed project will renovate the existing stall to
accommodate the business.
49

4.7.1 Old Facade

4.7.2 New Faade

MARANANS
STREETFOOD MARKET

50

4.8 Floor Plan

51

4.9 Machinery and Equipment

The machinery and equipment of the proposed project was
mainly focused on kitchen appliances and kitchen wares. The total
52

amount of the projects machinery and equipment was 96,755.75.

Below is the detailed breakdown of the machinery and equipment.
Machinery and Equipment
Unit Price
POS System

16,200.00

Computer Set

15,500.00

Vault
Refrigerator
Freezer
Ice Crusher

2,699.00
12,652.00
10,245.00

Estimated Cost
1
6,200.00
1
5,500.00
2,699.00
1
2,652.00
1
0,245.00

542.00

542.00

Grill

1,250.00

1,250.00

Heavy Duty Burner

3,868.00

3,868.00

Weighing scale

249.00

249.00

Flour Mixer

758.00

758.00

Rice Cooker

2,095.00

2,095.00

260.00

520.00

Measuring Cup

54.00

108.00

Grater

39.00

39.00

250.00

250.00

89.00

178.00

900.00

900.00

1,500.00

1,500.00

Tong

23.00

69.00

Spoon and Fork

Spatula

39.00
35.00

1,950.00

Colander

Frying Pan
Chopping Board
Ladle
Kitchen knife

53

105.00
Bowl

96.00

4,800.00

Plate

144.00

5,760.00

Basin

45.00

90.00

Egg Slicer

39.75

79.50

Deep Fryer

450.00

900.00

Ice Cream Scooper

30.00

60.00

Strainer

40.00

Sub-Total

80.00
8
3,446.50

Furniture and Fixtures

Office chair

300.00

600.00

Banquet Chairs
Indoor Aluminum Restaurant
Tables

499.00

7,984.00

900.00

3,600.00
1
2,184.00

Sub-Total
Office Supplies
Ballpen
Calculator

5.00

50.00

50.00

100.00

Logbook

45.50

Stapler
Staple wire
Thermal paper

29.75

89.25

5.75

57.50

32.00

160.00

Sub-Total

502.25
Sanitary Supplies

Pot Holder
Cleaning towel

10.00
10.00

50.00
50.00
54

Sponge and Scrub

Dishwashing Liquid

8.00
25.00
95.00

Mop
Broom
Tissue paper
Dust Pan

45.00
45.00
24.00

Sub-Total
Grand Total

96.00
50.00
95.00
45.00
45.00
192.00
623.00
96,75
5.75

4.10 Utilities
Water
Running water is a must for most businesses. From a health
and safety perspective, it is important to have access to water
for first aid and basic hygiene. The proposed project will hook
up into the Metro Roxas Water District for water supply.
Telecommunications
Communication is so important in running a business. The
proposed project will have a telephone line provided by the local
telephone company.
Electricity
Electricity is the most vital utility that you need in
running a business. Since the proposed project is a business that
55

revolves around food and food safety, electricity is a must.

Maranans

Street

Food

Market

will

have

the

Capiz

Electric

Cooperative provides its electricity needs.

4.11 Raw Materials Requirement
Adidas
Ingredients:
(the quantity of the ingredients is according to number of
streetfood(s) to be produced)
4pcs Chicken Feet
Soy Sauce
Vinegar
Barbeque Sticks
Water
Oil
Catsup
Oyster Sauce
Balut
Ingredients:
(the quantity of the ingredients is according to number of
streetfood(s) to be produced)
6 pieces balut, boiled
3 tbsp cornstarch
1 cup water
56

1 cup all-purpose flour

1/2 tsp salt
1/2 tsp ground black pepper
2 cups cooking oil
Calamares
Ingredients:
(the quantity of the ingredients is according to number of
streetfood(s) to be produced)
1/2 lb large sized squid, cleaned and sliced into rings
3/4 cup all-purpose flour
1 piece raw egg, beaten
3/4 cup breadcrumbs
1 teaspoon salt
1/2 teaspoon ground black pepper
2 cups cooking oil
Chicken Skin
Ingredients:
(the quantity of the ingredients is according to number of
streetfood(s) to be produced)
1kg Chicken Skin
1pack Chicken Breading
2 eggs
2 cups Cooking Oil
Fishballs
57

Ingredients:
(the quantity of the ingredients is according to number of
streetfood(s) to be produced)
15 pieces boiled quail eggs
1 cup flour
3 tbsp cornstarch
1/2 cup water
1 tbspanatto powder (pinulbosnaatsuete)
1/2 tsp salt
1/2 tsp ground black pepper
2 cups cooking oil
Isaw
Ingredients:
(the quantity of the ingredients is according to number of
streetfood(s) to be produced)
1 lb chicken intestine (well cleaned)
1/2 cup vinegar
2 tbsp whole pepper corn
2 tbsp salt
4 to 6 pieces dried bay leaves
4 cups water
Kwek-kwek
Ingredients:

58

(the quantity of the ingredients is according to number of

streetfood(s) to be produced)
15 pieces boiled quail eggs
1 cup flour
3 tbsp cornstarch
1/2 cup water
1 tbspanatto powder (pinulbosnaatsuete)
1/2 tsp salt
1/2 tsp ground black pepper
2 cups cooking oil
Pork Barbecue
Ingredients:
(the quantity of the ingredients is according to number of
streetfood(s) to be produced)
2 lbs pork, sliced
1/2 cup soy sauce
Lemon juice from 1 piece lemon
1/2 cup banana ketchup
2 teaspoons salt
1 teaspoon ground black pepper
3 tablespoons brown sugar
8 cloves garlic, crushed and chopped
Iced Tea
Ingredients:
59

(per serving)
360g tea powder
1l cold water
7l purified water
Pineapple Juice
Ingredients:
(per serving)
1 can pineapple mixture
1l cold water
7l purified water
SagotGulaman
Ingredients:
(per serving)
4 tablespoon sago
4 tablespoon gulaman
1 tablespoon Vanilla
3 tablespoon syrup
2 to 3 ice cubes
Halo-halo
Ingredients:
(per serving)
1tablespoon:
PinipigNata
Beans Ube
60

LangkaMacapuno
Kaong Sugar
1 cup crushed ice
cup evaporated milk
2 scoop ice cream (Ube and Cheese)
Leche Flan
Mais Con Yelo
Ingredients:
(per serving)
cup corn
1 cup ice
3 tablespoon cornflakes
cup milk
1 tablespoon sugar
Saging Con Yelo
Ingredients:
(per serving)
2pcs saba
1 tablespoon brown sugar
1 teaspoon banana essence
1 cup ice
cup evaporated milk
Sorbetes
Ingredients:
61

Selecta Ice Cream

Cone (sweet cone or ordinary cone)
4.12 Manpower Requirements
Supervisor / Purchasing Officer (1 vacancy)
Qualification Standard:

College Graduate (preferably Business Course)

Significant

production

knowledge

with

an

advance

interpersonal and supervisory skills

Have knowledge of a wide range of marketing techniques

and concepts

Good leadership and

an excellent communicator

Have a good business awareness

Be able to work within a budget

Cashier (2 vacancies)
Qualification Standard:

Male / Female

Single

21 25 years old

College graduate of any 4 year business course

With at least 1 or 2 years experience in restaurant/fast

food chain

62

Proficient in collection and recording of payments and other

monetary transactions of the branch

Can work with less supervision and can do multi-task duties

With pleasing personality and good interpersonal skills

Service oriented and a highly motivated person

Hardworking and trustworthy

Adaptable

and

works

well

in

fast

paced

and

dynamic

environment.

Cook (4 vacancies)
Qualification Standards:

Male/Female

Single

21-30 years old

At least high school graduate

He/she has to have an experience of at least 1 year cooking

in restaurant / fast food chain

Hardworking and honest

Waiter / Server (4 vacancies)

Qualification Standards:

Male / Female

Single
63

18 25 years old

College Level

With pleasing personality

With good interpersonal skills

Service oriented and highly motivated person

Can work with less supervision and can do multi-task duties

With experience as a service crew in any food establishments

is preferred

4.13 Waste Disposal Management

Food waste management and recovery is most commonly defined
as that series of activities where discarded food materials are
collected, sorted, processed and converted into other materials
and used in the production of new products (Mills 2007). The
majority

of

food

wasted

is

by

consumers

and

food

service

establishments. Food losses are the result of over preparation,

food preparation waste, table scraps, cooking losses, spoiled
leftovers,

and

package

failure

and

spillage.

Food

service

businesses throw food away because of over preparation, expanded

menu choices, plate waste, and fluctuations in food sales beyond
the control of service operators. The waste will be collected
everyday by the project crew. The project will also have bio and
non-bio degradable waste cans to segregation.
64

4.14 Production Cost

Production

cost

is

cost

incurred

by

business

when

manufacturing a good or producing a service. Production costs

combine

raw

material

and

labor.

To

figure

out

the

cost

of

production per unit, the cost of production is divided by the

number of units produced. The production cost of the proposed
business

is

illustrated

in

the

Chapter

of

this

paper.

65