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Republic of the Philippines

NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY


San Isidro Campus
San Isidro, Nueva Ecija

A FEASIBILITY STUDY OF ESTABLISHING A

SNACK STAND BUSINESS

In Partial Fulfilment of the Requirements for the Course


Subject in Entrep IV Business Plan 1 (With Oral Defense)
During the First semester S.Y. 2018-2019

Submitted to:

Mr. Kenneth L. Armas

Proponents

Esguerra, Rhea G.
Gabriel, Alyssa C.
Pasion, Marisol B.
Roque, John Christian V.
Torres, Rhoselyn R.

December 2018

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Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

INTRODUCTION

Snacks are more than just a delicious treats; they are

big business. There are varying and diverse reasons why

consumers snack. For Filipino respondents, snacking is

viewed primarily as source of nutrition (74%). Notably,

however, Filipino consumers also exhibit characteristics of

spontaneous snackers, including trying new snacks, buying a

variety of snacks and making unplanned snacks.

Cheese, just saying the word makes you smile- and not

because photographers ask us to say it when we pose. No,

Cheese is the miracle that makes pizza, cheese burgers and

other food makes so delicious.

The “Mr. ChizMs.” promotes to offer the market a

satisfactory products that will make them feel relieve and

happy. It will offers variety of innovative products that

made out of cheese like Ham and Cheese Roll up, Cheesy

Turon, Spicy Cheese Stick and Cheesy Chicken Popper.

“Mr. ChizMs.” has one main goal that they always bear

in their mind this was clearly stated as, “We are willing

to serve any customers at our very best”. As for “Mr.

ChizMs.” their priority was the satisfactory of their

customers that’s why they make sure that their products

were delicious and 100% guaranteed safe to eat.

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Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

EXECUTIVE SUMMARY

The proposed business will be named “Mr. ChizMs.”

since the main products are made out of cheese. It will be

establish at Poblacion, San Isidro Nueva Ecija in front of

Nueva Ecija University of Science and Technology- San

Isidro Campus. The proposed business will operate from 8 am

to 5 pm from Monday to Friday. The business will hire one

employee; which is the cook. The cook will be responsible

for the preparation of the foods.

The main target market of the proposed business is the

students of Nueva Ecija University of Science and

Technology San Isidro Campus. Currently, there are 2,023

students registered according to the Campus Registrar and

the residents of Poblacion San Isidro, Nueva Ecija that has

11,685 as of year 2016.

The business is a sole proprietorship type of business

since it is easy to manage and no corporate tax payment

with less formal requirements. The capital contribution of

the proposed business is ₱70,000.

3
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

1. Brief Description of the Project

The proposed Snack business will be based on the

installed food cart. Crispy papa, Anjie Siomaian, Rachelle

Siomaian which is located nearly at the target market

considered as the nearest competitors of the proposed

business.

Products to be offered include Ham and Cheese Roll-

Ups, Cheesy Chicken Popper, Spicy Cheese Sticks and Cheesy

Turon. Snack business is preferred for the customers

because the site is accessible to all types of

transportation vehicles and other establishment.

The proponents’ decision came after careful analysis

of the trends and market situation in the food industry,

returns on the investment were also considered.

2. Brief Profile of the Entrepreneur

The owner of the proposed business is Mr. John

Christian V. Roque, a filipino citizen, 21 years of age

and a resident of Cabiao, Nueva Ecija. Mr. Roque is a

graduate of Bachelor of Science in Entrepreneurship in

Nueva Ecija University of Science and Technology- San

Isidro Campus. Aside from having a formal degree, he

attended relevant seminars and training in

entrepreneurship.

4
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

Table 1
Project Proponent

Name Nationality Address % of


Ownership
Roque, John Concepcion,
Christian Filipino Cabiao Nueva 100%
V. Ecija

3. Project Contributions to the Economy

The proposed project will contribute to the nation

building by paying taxes, generating employment, and

promotion of innovative products. The project will also

satisfy the need of the target market for delicious yet

affordable food snack.

5
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

CHAPTER I
MARKET STUDY

1.1 Description of the Products

Table 2
Description of the Products
PRODUCTS DESCRIPTION

Ham and cheese roll- up

is made of slice cheese

and fresh slice of ham.

These are a fun twist on

the traditional hot ham

and cheese sandwich.

Cheesy chicken popper is

made out of chicken

breast season with secret

seasoning and with a

taste of cheese.

Spicy cheese sticks are

crispy and crunchy on the

outside and cheesy and

spicy on the inside. Good

for spicy lover.

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Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

Cheesy turon is not an

ordinary turon because it

gives delicious taste

made from cheese.

1.2 Comparison of the Product with Its Competitors

Table 3
Comparison of the Product with Its Competitors
Name of Product of Advantage Of Mr.
Competitor Competitor ChizMs

Fried Chicken
Crispy Papa Product Innovativeness
and Chicken skin
Chicken Hot
shots,Kwek-Kwek
Mommy Ferly Price Affordability
etc.

Siomai and
Rachel Siomaian Product Innovativeness
Burger

Siomai and
Anjie Siomaian Product Innovativeness
Burger

7
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

Products are made out of pure cheese coated with

different taste like sweet, salty and spicy. In terms of

affordability of our product the price ranges from ₱7.00

to ₱11.00 which is not costly for our target market. It

offers a product that suit for different taste buds.

2. Description of the Target Market

The target market of the proposed project will be

the students of NEUST and residents of Brgy. Poblacion San

Isidro, Nueva Ecija and the residents of Poblacion, San

Isidro Nueva Ecija. Based on the survey conducted by the

proponents, the total number of the target market is as

follows:

Table 4
Total Population of the Target Market
Target Market Total Population

Students from NEUST 2,023

Residents of Poblacion 11,685

Total 13,708

Source: Campus Registrar and Census 2016

8
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

The proposed project will target the 5% of the total

population to serve as the projected demand. Therefore,

the project intends to cater the 685 customers per week.

Furthermore, based on the survey conducted by the

proponents, the average consumption of the target market

is 3 times per week. From these data, the proponents can

have a sound sales projection.

Table 5
Average Consumption of Customers for (1) Year
Average Average Average

Year Number of weekly monthly yearly

Customers Consumption Consumption Consumption

2018 685 2,055 8,220 98,640

3. Current Demand Analysis

Table 6
Current Demand of the Competitors (Per Customer)
Name of Firm Demand Per Demand Per Annual

Day Month

Crispy Papa 210 6,300 75,600

Mommy Store 200 6,000 72,000

Rachel Siomaian 200 4,000 48,000

Anjie Siomaian 200 4,000 48,000

Others 550 16,500 225,000

Total 1,360 36,800 468,600

9
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

Table 6 presents the current demand of the

competitors of the proposed project near in the location.

The data was gathered through interview by the proponent.

Based on the interview, Crispy Papa has the highest demand

per day of 210, followed by Mommy Store, Rachelle Siomaian

and Anjie Siomaian that has 200 demands per day.

Table 7
Projected Demand in Five Years (5)
Year Projected Demand

2018 468,600

2019 598.027

2020 763,202

2021 973,998

2022 1,243,016

According to the NEUST San Isidro Campus Registrar,

the increase in population of the target market in a year

is 27.62%. From the current demand of 468,600 it is

projected to increase 598,027 in 2019.In 2020 the increase

is 763,202 while in year 2021 the increase is 973,998. And

in 2022 the increase is 1,243,016.

10
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

Table 8
Current Supply of the Competitor

Production Per
Name of Firm Day (Supply) Per Month Annual

Crispy Papa 200 6,000 72,000

Fries Pa More 170 5,100 61,200

RachelSiomaian 180 3,600 43,200

Anjie Siomaian 175 3,500 42,000

Others 485 14,550 174,600

Total 1,210 32,750 393,000

Table 8 presents the current supply of the competitor

of the proposed project near in the location. The data was

gathered through interview by the proponent. Based on the

interview, Crispy Papa has the highest supply per month of

6,000 and annual 72,000 annual.

Table 9
Projected Supply in Five Years (5)
Year Projected Supply

2018 393,000

2019 501,547

2020 640,074

2021 816,562

2022 1,042,179

Table 9 presents the projected supply of the

proposed project within five years.

11
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

Projected Supply

Table 10
Current Demand-Supply Analysis
Demand-Supply
Name of the Firm Demand Supply
Gap

Crispy Papa 210 200 10

Mommy Store 200 170 30

Rachelle Siomaian 200 180 20

Angie Siomaian 200 175 25

Others 550 485 65

TOTAL 1,360 1,210 150

Table 11
Current Demand-Supply Analysis in Five Years (5)
Year Projected Projected Demand-Supply
Demand Supply Gap

2018 468,600 393,000 75,600

2019 598.027 501,547 96,480

2020 763,202 640,074 123,128

2021 973,998 816,562 157,436

2022 1,243,016 1,042,179 200,837

TOTAL 3,449,414 3,393,362 653,481

12
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

1.7 Marketing Strategy (Product/Price/Place/Promotions)

1.7.1 Pricing

The proposed business will absorbed the cost-based

pricing. This kind of pricing traced the total cost

incurred in producing the products.

13
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

1. HAM AND CHEESE ROLL-UPS

Table 12
Cost Incurred in Ham and Cheese Roll-Ups

Ingredients Qty. Unit of Unit Total Cost

Measure Cost

Cheese 1 Pack 37 37

Ham 1 Pack 35 35

Egg 2 Pcs 5 10

Flour 1/4 Kilo 8 8

BreadCrumbs 230 Grams 30 30

Seasoning Grams 10 10

Cooking oil ½ Liter 23 23

TOTAL COST Incurred to make Ham and Cheese P153

Roll

+5% Buffer Margin 160.153

No of made Ham and Cheese Roll Ups 26 pcs.

Computation of Unit Cost (160/26) 6.15

Mark up (100%) 6.15

Cost per portion (Unit cost+ Mark-up) 12.3

Selling price @ 12.00

14
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

2. Chicken Cheese Popper


Table 13
Cost Incurred in Chicken Cheese Popper

Ingredients Qty. Unit of Unit Total Cost

Measure Cost

Cheese 1 Pack 37 37

Chicken breast ½ Kilo 120 60

Egg 2 Pcs 5 10

Flour ¼ Kilo 8 8

Bread Crumbs 230 Grams 30 30

Seasoning Teaspoon 10 10

Cooking oil ½ Liter 23 23

TOTAL COST Incurred to make Cheesy Chicken P178.0

Popper 0

+5% Buffer Margin 187

No of made Cheesy Chicken Popper 50pcs.

Computation of Unit Cost (187/50) 3.74

Mark up (100%) 3.74

Cost per portion (Unit cost+ Mark-up) 7.48

Selling Price@ 8.00

15
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

3. Spicy Cheese Sticks


Table 14
Cost Incurred in Spicy Cheese Sticks

Ingredients Qty. Unit of Unit Total Cost

Measure Cost

Cheese 1 Pack 37 37

Chilli Powder 4 Grams 5 5

Seasoning Teaspoon 10 10

Cooking oil ½ Liter 23 23

TOTAL COST Incurred to make Cheesy Chicken P75

Popper

+5% Buffer Margin 79

No of made Spicy Cheese Sticks 20 pcs

Computation of Unit Cost (79/20) 3.95

Mark up (100%) 3.95

Cost per portion (Unit cost+ Mark-up) 7.9

Selling Price@ ₱8.00

16
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

4. Chessy Turon

Table 15
Cost Incurred in Cheesy Turon

Ingredients Qty. Unit of Unit Cost Total

Measure Cost

Cheese 1 Pack 37 37

Banana ½ Kl 36 18

Lumpia ½ Pack 25 12.5

Wrapper

Brown Sugar ¼ Kl 12 12

Cooking oil ½ Liter 23 23

TOTAL COST Incurred to make Cheesy Turon P102.5

+5% Buffer Margin 107

No of made Cheesy Turon 20 pcs

Computation of Unit Cost (107/20) 5.35

Mark up (100%) 5.35

Cost per portion (Unit cost+ Mark-up) 10.27

Selling Price@ ₱10.00

17
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

5. Iced Tea
Table 16
Cost Incurred in Iced Tea

Ingredients Qty. Unit of Unit Cost Total Cost

Measure

Iced Tea 50 Grams 34 34

Ice 3 Plastic 15 45

TOTAL COST Incurred to make Iced Tea P79

+5% Buffer Margin 83

No of made Iced Tea 16

Computation of Unit Cost (83/16) 5.18

Mark up (50%) 2.59

Cost per portion (Unit cost+ Mark-up) 7.77

Selling Price@ 8.00

18
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

Table 17

Pricing per product


Nature of Sale Transaction Price

Iced tea P 8.00

Ham and Cheese Roll


P 12.00
ups

Cheesy Chicken Popper P 8.00

Spicy Cheese Stick P 8.00

Cheesy Turon P 10.00

1.7.2 Promotions

The promotional activities to be applied are

signage, tarpaulin and posting of business name

through the help of social media like facebook and

instagram to ensure that the target customer will know

the place and the product of the business.

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Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

1.8 Marketing Budget

The marketing budget requirement is P 450 which

will be provided by the owner.

Table 18

Marketing Budget
Promotions Quantity Sizes Price

Tarpaulins 1 ¾ 200

Signage 1 2/5 250

Total 450

20
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

CHAPTER II
TECHNICAL STUDY

2.1 Production Process

1. Ham and Cheese Roll-Ups

Arrange the ham, cheese. Roll each other


until the filling is covered. Secure with a
toothpick.

Dip the rolled bread in a beaten egg. Place


the bread crumbs in a large bowl and then put
the dipped rolls in shake until everything is
covered with crumbs. Do it twice.

Heat the cooking oil in a


cooking pot.

Fry in low to medium heat until the colour


turns golden brown (about 5 to 7 minutes).

Arrange the fried rolls in a plate


line with paper towels.

Best serve hot! Serve 21


with dipping sauce.
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

2. Cheesy Chicken Popper

Combine ground chicken, Cheese in a


bowl and mix well until combined.

Season with salt and pepper. Set


aside and chill for one hour.

Heat up oil for frying and cool


chicken until golden in colour and
cooked though.

3. Spicy Cheese Sticks

Freeze cheese until firm so it will be


easy to cut. Cut cheese into sticks.

Mix together bread crumbs, ground black


pepper and salt. In another bowl mix egg
and water.

Dredge cheese sticks in flour and shake the


excess flour. Cover in egg mixture and cover
in seasoned bread crumbs. Repeat the process
twice.

Put in a plate and freeze for 1 hour before


frying.

Heat oil in medium heat and fry cheese


sticks in batches. Drain excess oil in a 22
strainer or paper towel.
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

4. Cheesy Turon

Roll the banana on the brown


sugar.

Place the banana with sugar coating


in the lumpia wrapper.

Add cheese slices. Fold and lock the


wrapper, use water to seal the edge.

In a deep fryer heat the oil. Put the


wrapped banana and fry until the wrapper
until the wrapper turns golden brown.

Serve warm.

5. Garlic Mayonnaise dip (Sauce)

Put the garlic, fresh milk, mayonnaise,


salt, and white pepper in 1 cup.

Combined all and mixed well.

Ready to serve! 23
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

2.2 Equipment/Machines

Table 19
Machineries and Equipment
Names of machineries
Specifications Quantity Cost
and equipment

 Fujidenzo Brand
 Power (142 Watch)
 6.5 Cubic Ft.
 Voltage Range at
80 degree
9,698
centigrade(capabl
1
e of working on
230 volts + 12%
A.C 60 Hz
 Power Saver
Compressor.
Chest Freezer

 Power (2000 W)
 Voltage (220-240
V)
 Frequency (50/60
Hz) 1 1,300
 Capacity (1300 g)
 Oil Content (2.5
Deep Fryer L)
 Cord length (1 m)

24
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

 Dimensions:
28.1x17.7x 15.5
inches
 Weight: 11 lbs
 Gear Capacity: 77 1 3,975
liter
 It serves as
container of
uncooked product
to maintain its
Cooler firm.

Total 14,973

2.3 Tools/Utensils

Table 20
Tools/Utensils
Names of Tools/Utensils Specifications Quantity Cost

 size 26cm
 The bottom
of
the bowl sho
uld be flat 3 285
to keep
the bowl

Bowl from tipping


or rocking
when mixing
ingredients.

25
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NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

 Egg
beaten is a
hand-held
kitchen
utensil with 1 P37
rotating
Egg Beater
blades used
for beating,
whipping or
mixing.
 It can be
used for
mincing,
2
slicing, and
22
chopping.

Knife

 A cutting or
chopping
board a
durable
board on
which to
1 175
place
material for
cutting.

Chopping Board

26
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

 Common fire-
tongs, used
for picking
2
up pieces
P60

Food Tong

 Used to
measure an
ingredient
 They are
available in
many sizes,
2 90
including
the teaspoon
Measuring Cups and
tablespoon.
 12 Liters
 Used as a
container
for drinks.
1 399

Juice glass

27
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

 Is a type of
container
for
dispensing a
fluid, by 2 34
exerting
pressure
with the
Sauce bottle
user’s hand.
 With a sauce

rubberized

handle used 1 25

to grip.

Grater

 Used for the

proper

segregation

of the 2

waste. 244

Trash Bin

Total
1,371

28
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

2.4 Materials/Supplies

Table 21
Materials/Supplies

Name of
Specifications Quantity Cost
Materials/Supplies

 It serves as

holder of

ham and 10 150

cheese.

Toothpick

 Absorbent

towel made

from tissue 10 250

paper.

Table Napkin

 Food storage

of the output

product

50 500

Plastic Container

29
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NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

 8 oz paper

cup

 Feature: 150 250

stiff cup,

perfect roll
Drinks Cup up and not

leaking.

 6oz

 Paper cup
200 240
 Serve as the

container of

the product
Cup Bowl

 Used to

record the

details about

the 5 25

transaction
Ballpen
in the

business.

30
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

 Used to

record the

financial 1 60.75

statement.

And for

Record Book keeping

transaction.

Total 1,450.75

2.5 Furniture and Fixtures

Table 22
Furniture and Fixtures
Names of Furniture
Specification Quantity Cost
and Fixture

 Length 47.25
 Width 29.25
 Height 29
 Maximum P 1,500 P1,500

Weight
Capacity (1,500X1)

 80 lbs

Table

31
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NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

 Width 17.25
 Depth 20
 Height 31.5
 Maximum
Capacity 220
lbs P300.00

P1,200
(300X4)
Mono Block Chair

Total

2,700

32
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NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

2.5 Building/Office/Store

Figure1
Location Site

Figure 2
Stall Layout

33
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NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

2.6 Location

Figure 3
Location

The proposed business will be located at Barangay

Poblacion, San Isidro in front of Nueva Ecija University

of Science and Technology- San Isidro Campus. The site is

accessible to all types of transportation vehicles and

different establishments like 7/11. It is also near at

Municipality of San Isidro, nearly beside at Ka Tunying

Cafe.

The reason for choosing the location is the following:

1. It is accessible in electricity and water.

2. There is proper waste disposal in the area.

34
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NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

3. It is meters away from the raw material needed in the

production.

4. It is easily locate because it is along the highway.

5. It is near the target market.

2.7 Production Lay-out/Floor plan

Figure 4
Production Lay-out

35
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NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

2.8 Manpower requirement

Table 23
Proposed Salary and Wages Rates

Position Number Monthly

Cook 1 P 4,000.00

Total 1 P 4,000.00

Cook Qualification:

 High School graduate.

 With at least 1 year experience in food

service.

2.9 Utilities

Table 24
Utilities
Average
Item Description Consumption
(Per month)

Electricity 700

Water 260

LPG 480

TOTAL 1,440

36
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NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

2.10 Waste Disposal

The proposed business shall manage the waste disposal

properly they will provide a proper trash bin that. The

trash from our establishment will be collected by the

garbage collectors provided by the local government twice

a week.

2.11 Production Cost

Table 25
Production Cost in One (1) Month

Raw Materials 12,200

Direct Labour 4,000

Manufacturing 1,890
Over Head
Total 18,090

37
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

CHAPTER III
ORGANIZATION AND MANAGEMENT STUDY

3.1 Form of Business

The proposed business type of organization is Sole

Proprietorship form of business organization that is easy

to manage and organized, no corporate tax payment, few

formal business requirements, sale or transfer can take

place at the discretion of the proprietor and has complete

control and decision making power over the business.

The initial capital requirement is P 69,063.25 which

will be provided by the owner to be taken from the savings

of his parents.

3.2 Organizational Structure

Owner/Cahier

Cook

38
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NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

The organizational structure of the project will be

line type of organization, where the function and

responsibilities shall be delegated on a downward flow,

with policy formulation responsibilities and decision-

making. The organizational structure and relationships of

the establishments is shown in its proposed organizational

structure. The simple structure is widely adopted in most

small businesses where the owner acts as the manager and

the cashier with one employee.

3.3 Duties and Responsibilities

Cashier

1. Responsible in collecting the payment of the

customers.

2. One that has charge of money.

3. Responsible for supplying customers.

Cook

1. In-charge in preparing foods from production

process.

2. Responsible for handling the products.

3. Responsible for supplying customers.

39
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

3.4 Administrative Expenses

Table 27
Administrative Expenses
EXPENSE Monthly

Salary Expense 4,000

Legal Requirements 5,200

Total 9,200

3.5 Total Project Cost

Initial capital investment will be broken down as

follows:

Table 28
Total Project Cost

Items Category Total

A. Fixed Capital Costs

1. Machineries and 14,973


Equipment
2,700
Furniture and Fixtures
2. 17,500
Food Cart Stall
3. 800
Rent expense

40
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
San Isidro Campus
San Isidro, Nueva Ecija

B. Pre –Operating and


Operating Expenses

Production Cost
1. 18,090
Materials and Supplies
2. 1,450.75
Tools and Utensils
3. 1,371
Marketing Budget
4. 450
Administrative Expense
5. 9,200

Sub Total 66,534.75

Contingencies 3,326.74

Grand Total 69,861.48

41

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