A FEASIBILITY STUDY ON THE ESTABLISHMENT OF ABI’s RESTAURANT

By Abegail Fernando

The Concept

Abi’s Restaurant is a restaurant that will be located at Marfrancisco Pinamalayan

Oriental Mindoro that offers a unique style of dining experience. It has a state of the art,
first in its kind, flowing iced tea tubes that surrounds the whole restaurant.
With this new design, customers can fill iced tea whenever they want. The iced tea
is limitless. Great Barbeque, great food, great customer service and limitless iced tea via
iced tea tubes, is what Abi’s Restaurant is all about.

Type of Business: Food Service

Type of Food Service: Conventional
Location: Marfrancisco Pinamalayan Oriental Mindoro
Target Client: Middle class to Low class citizens
Ownership Type: Partnership
Restaurant Type: Family

Objectives
 The purpose of this feasibility study is to be able to determine the
possibility of building a restaurant that supports the middle class to low
class people. Being able to deliver great customer service and calculate the
financial expenses is the goal of this study.
  To appease the people of unending quest for thirst, great customer service,
great food, and great atmosphere is the purpose of this business proposal.
This idea has never been seen or done before. A hit that will surely be loved
by the masses is what this is all about.

The Logo

Abi’s Restaurant will be symbolized by its

elegance as the image showed on the left side. The

place is like a home and also for the customers to

distinguish the place well.

The Employees

Total Staff :18

Morning Staff : 9 Staff 1st Shift (8am-4pm)
Afternoon Evening: 9 Staff: 2nd Shift (4pm-12am)
Morning Staff
Cooks -3
Waiter-4
Receptionist-1
Cashier-1
Total:9
Evening Staff Cooks -3
Waiter-4
Receptionist-1
Cashier-1
Total:9
The Products
Sample Menu

Food Cost
Grilled Hotdog(3pcs) 95.00
Grilled Liempo 120.00
Chicken with Java Rice 250.00
Beef Spareribs 300.00
Grilled Squid 140.00
Grilled Tuna Belly 210.00
Pork BBQ 50.00
Grilled Bangus 110.00
Crab and Corn Soup 45.00
Cream of Mushroom 45.00
Fruit Salad 50.00
Buko salad 50.00
Steamed Rice 20.00
Iced Tea 50.00
Bottled Water 20.00

Actual Plan

Abi’s Restaurant is a restaurant that will be located at Marfrancisco Pinamalayan

Oriental Mindoro that offers a unique style of dining experience. It has a state of the art,
first in its kind, flowing iced tea tubes that surrounds the whole restaurant. The restaurant
is situated in a place near a school. There are mass of students in weekdays and even
more on weekends. With its new and harmonious design, people are attracted to it.
Hundreds of people will pass through the proposed location of this restaurant. Large
Tarpaulins will be hanged at the entrance and the receptionist in charge will
accommodate passers-by by greeting and welcoming them to try our products. Fliers will
be distributed along the vicinity and along the said school to advertise the restaurant
efficiently.
Future Plan

After two months of operation, Abi’s Restaurant will introduce and offer new
products such as new fruit shakes and some other pasta dish. Another branch will be
opened near Sacred Heart Academy in Gloria Oriental Mindoro to provide students more
fascinating foods and beverages.

Facilities

As a restaurant with relaxing atmosphere Abi’s Restaurant will provide the

following:
1. A well-ventilated and not crowded place.
2. Relaxing chairs and tables with appropriate space.
3. Relaxing music played throughout the restaurant.
4. Clean restrooms with a good supply of water.

Our Customers

The restaurant is situated in a place near a school. There are mass of students in
weekdays and even more on weekends. With its new and harmonious design, people are
attracted to it. Hundreds of people will pass through the proposed location of this
restaurant. Our customers are mainly the student from the said school and the other
residents near the restaurant.

Investments

Approximately, Abi’s Restaurant entails an investment of P5,000,000.00. This

amount is broken down as follows:

Liabilities Amount Assets Amount

Capital 4,639,374 Utensils 74,024
Kitchen Equipment 181,250
Electrical 351,800
Food Cost 1 month 2,664,000
Salary 80,000
Furniture 50,000
Computers 10,000
 Generator 150,000
Building 1,360,626
Miscellaneous 78,300
Total 5,000,000 Total 5,000,000

Profitability Analysis

The simplest way of approximating profitability is to assume the expected sales per
month and subtract the expected monthly variable cost or expenses.
For instance: the expected number of meal and iced tea sold per month is 3,000 at
P250 per set:
P250.00 x 3, 000 sets of meal= P750,000.00. If the expected monthly expenses is
P300,000.00. It will yield:
P750, 000.00- 300, 00.00 = P450, 000.00
The approximate monthly income is P450, 000.00. On a one year business
operation, the income will be:
P450,000.00 x 12 months = P5,400,000.00
The gross income for one year will be P5,400,000.00. To get the net income for 1
year operation, subtract the fixed cost and the cash for daily operations and contingencies
from gross income: thus,
P5,400,000.00 – 990,548.00 =P 4,409,452.00
Therefore, after one year of business operation, Abi’s Restaurant will get back all
the investments, and it will realize a net profit of P4,409,542.00

Timetable

The proposed timetable is as follows:

Date Activities
June 1, 2019 Opening of Abi’s Restaurant at
Marfrancisco St.

June 15, 2019 Introduction of a new product

August 16, 2019 Open a branch

October 17, 2019 Opens another branch

Conclusion

The researchers therefore conclude the entrepreneurs can put a capital of a small
as P5, 000,000.00. The researchers also learned that after 1 year of operation, the
entrepreneur can get back all the investments and it will earn a big profit.
There is a great opportunity in putting up a business and the most important thing is to
always pursue it and look for the better feature of the business itself for it will be a
stepping-stone for a great success of the entrepreneur and the business itself.
A FEASIBILITY STUDY ON THE ESTABLISHMENT OF ABI’s RESTAURANT

Submitted to: Dr. Lolita Geronaga

(Instructor)

Submitted by
Abegail Fernando

December 2019