CHAPTER I

DESCRIPTION OF THE PROJECT

This chapter provides background information and overview of the feasibility of

establishing a restaurant business along with its proposed concepts, themes and

objectives.

NTRODUCTION

Hot Oven is a bakeshop that sells only healthy baked goods and proud itself to

be an environment-friendly products. We would like to focus the interest of the buyers

and also the consumers with our own version of our Hot Oven. We would like to

introduce different flavors that are extraordinary to the consumer’s taste.

This idea was a brainchild of the five (5) member’s team with a strong belief that

a goodies should taste like a goodies without the worry of it going straight to your gut or

your butt! That should give the feeling of lively and satisfied, not sick or sluggish. After

countless hours of work, Hot Oven Bake shop is proud to serve up an array of super-

yummy goodies baked with premium quality locally produced organic ingredients.

The Hot Oven bread aren’t only healthy for you, they’re also healthy for Mother

Earth.

COMPANY’S HISTORICAL BACKGROUND

The bakery industry has come a long way, and will continue to evolve

with countless of bakers bringing creativity into the industry. The Baked foods
production has been in existence for tens of centuries. In the true sense of the word, it

has been around for over two thousand years.

If per chance there is a doubt about this; then perhaps there would be a need to

take a look at the bible era. One of the predominant meals that was widely talked about

in the bible was the bread. So, it wouldn’t be wrong to say that those of old have been

able to successfully pass the art from one generation to another generation.

The "Romans who generally like baked foods are actually the people who

improvised and developed the baking of foods commercially- bakeries. In nearly all

their occasions; ranging from mere feasts to weddings, they are known to always

celebrate with baked foods. As such, they may be accorded the praise of being the

ones who introduced bakery as an occupation and they achieved this around 300 BC.

After this significant milestone was achieved, the drastic appeal for baked goods

increased throughout (Europe and expanded into the eastern parts of Asia. 

At that point, bakers started baking breads and goods from their kitchens and

thereafter took to the streets to have them sold out. Selling of baked foods became the

trend and before too long, baked products were getting hawked in streets.

Over time, bakeries no longer had to rely solely on retailing their baked breads

and snacks in the streets, in the open market or via home deliveries, but could now

move ahead to open their bakery stores for customers to come in and order for their

freshly baked bread and other foods. History has it that Paris in France happens to be

the first city in the world to have started open air bakery.

Bread and all flour based foods are generally consumed by almost everybody in

our planet; as such, anyone who chooses to establish a bakery in any part of the world
is sure going to get good returns on his or her investment, as long as they are doing

the right things when it comes to running a business. 

Business concept

 The food service industry defined in its broadest sense of all establishments

whereby food regularly served outside home. Most Filipinos nowadays preferred

to have their meals outside home, however, with this habit; they forgot to focus

on the nutrients of what they have been eating. If you think that, there is such a

thing as a “Proper Diet” for every individual, think again. The phrase Proper Diet

can be rather misleading, as it may not apply to all individuals.

 The proponents would like to promote a healthy and convenient way of eating by

introducing varieties of breads, cakes, cookies, and pastry products to the

consumers would benefit not just the consumers because of its healthy nutritional

content but also helps the Filipino farming industry in the country as well.

Business Name

“HOT OVEN BAKE SHOP” is a bakeshop where you can stay and feel

comfortable and safe, not just in the place but also in our baked product. We can assure

that our product is affordable and healthy to eat. Hot Oven offers the main product of

the establishment, we prioritize healthy eating which means no preservatives all that we

serve and sell to our customers are always fresh and nutritious made from different

vegetables that are being prepared and were properly handled.

LOCATION

The bakeshop will be strategically located at Poblacion Sur, Batuan, Bohol, main

road in front of Batuan Central Elementary School. North-east of the Municipality of

Batuan, north-west of the Batuan Catholic Church. The proponents prefer this place

because it is accessible to the target market such as the people residing in that place, a

lot of walk-ins because of those adjacent establishments and it is near to our

competitors. This map shows the location of Hot Oven Bake Shop.

ILLUSTRATIVE MAP OF HOT OVEN

MUNICIPALITY OF

HOT OVEN BAKE SHOP

Figure 1. Hot Oven Location

LEGAL STRUCTURE AND FORM OF OWNERSHIP

Permits and certificate you must get for the business:

  MAYOR’S PERMIT | SANITARY PERMIT

 BUSINESS PERMIT | BUSINESS CLEARANCE

 DTI PERMIT

 BIR PERMIT | CERTIFICATE OF REGISTRATION

 FIRE SAFETY INSPECTION CERTIFICATE

 FDA Approval

Licenses and Permits

In addition to complying with food safety laws specific to your state, you may be

required by your state laws to acquire special permits and licenses before you can start

and run a bakery. The necessity for some specific types of licenses will depend upon

whether you're a full service bakery making your own baked goods or whether you

simply resell baked goods that you buy wholesale. For example, Oregon requires a

specific license for bakeries while requiring another license type for retail locations

which simply sell baked goods but do not do further processing of those goods.

Inspections

Your bakery may be subject to regular inspections by health officials. You must

have excellent sanitary practices and maintain a bakery providing food which is safe to

eat. Hazard Analysis & Critical Control Points is a management system you can

implement which will analyze the safety of the food you're selling to the public. It allows

you to monitor processes from raw materials to the finished product.

Taxes

You must collect sales tax if your state mandates sales tax on baked goods. This

money is then turned over to your state's revenue department. The collection of sales

tax depends on your specific state's requirements for bakeries. Normally, you must file

tax forms with your state to obtain a tax ID number so that you may pay the required

sales tax to the revenue department.

FORM OF OWNERSHIP

Hot Oven is owned by one person only by which means it is a sole proprietorship

form of ownership. It simplify refers to a person who owns the business and is

personally responsible for its debts. A sole proprietorship can operate under the name

of its owner or it can do business under a fictitious name, such as Hot Oven Bakeshop.

The fictitious name is simply a trade name- it does not create a legal entity separate

from the sole proprietor owner.

The advantages and disadvantages of the sole proprietorship are as follow:

Advantages

 The owner is the manager/ head

 The owner keep all the profits

 The owner can easily change the legal structure later if circumstances change.

 The owner’s earnings are taxed only once as his/her personal income.

Disadvantages
  The owner has unlimited liability for debts as there’s no legal distinction between

private and business assets

 The owner’s capacity to raise capital is limited

 All the responsibility for making day-to-day business decisions is to the owner.

 The owner have limited management skills

MISSION/VISSION STATEMENT

Mission Statement

The business goal is to be establish The Hot Oven in the Province as the

premier purveyor of the finest healthy Bakeshop while maintaining our uncompromising

principles as we grow.

Vision Statement

To unmatched in terms of healthy foods and will lead through reinvention, risk,

and ideas.

GOALS AND OBJECTIVE

Objectives:

 To optimized our customer’s satisfaction.

 To accomplish consistency in the services offered.

 To determine the marketing strategies to be applied in the business.

 To assure that all of the operation process in our business is functioning well to

meet the demand of our customers.

Goals:

1. Provide the description of the bake shop industry, analyze of the current market;

2. Identify the best location for the business;

3. Determining the rate of return on investment;

4. Identify the right market strategy to promote the business;

5. Calculate the cost of establishment;

6. Identify target customers;

7. Identify the materials needed for establishing the business.

PRODUCTION/SERVICE DESCRIPTION

“HOT OVEN BAKE SHOP” is a bakeshop where you can stay and feel

comfortable and safe, not just in the place but also in our baked product. We can assure

that our product is affordable and healthy to eat. Hot Oven offers the main product of

the establishment, we prioritize healthy eating which means no preservatives all that we

serve and sell to our customers are always fresh and nutritious made from different

vegetables that are being prepared and were properly handled.

Service

Delivery

Hot Oven is not only dedicated in providing you healthy bake products,

we also consider your quick accessibility to them. For just a small amount of

time, you can already get all Hot Oven products delivered at your doorsteps.
We guarantee that you’ll receive your food fresh from the oven. Just call us,

and we’ll have your food prepared in a short while.

Special Orders

Hot Oven also does custom cakes for special occasions. Whether it is

a birthday, anniversary, or simply a gift to your special someone, we got your

back. Our bakers are skilled to create cakes in different sizes, shapes, and

colors. All you need to do is plan the design, and we got it for you.

For custom-made cakes, it is available for pick-up and delivery.

 CHAPTER II

ECONOMIC/ MARKET STUDY

This chapter manifests the market analysis gathered from surveys and research

of the area where the business would be established.

PROFFESIONAL LITERATURE

With bread being the country’s second staple after rice, the bakery business is

one of those ventures that are sure to bring multiple returns with just a minimal

investment. By taking the time to learn the craft, you too can start your own bakery

business and potentially make good money out of it. (Entrepreneur Sataff)

A TICKET TO PROFITS

Take the case of former bus inspector Godofredo Molde, 45, who has pocketed

P500,000 in just a year of selling pan de sal. Armed with P150,000 in startup funds and

a lot of guts, he took the plunge of starting his own business - and came out on top. He

has parlayed his bold investment to foot house repairs and acquire a delivery truck for

his growing business.

 "I used my P150,000 capital in acquiring the three small pan de sal stores of my

friend’s brother, and that included some goodwill money for the recipe and training. I

have added another store since," he said.

The revolving daily capital for the four stores, he said, is only P7,000. Molde decided to

concentrate on pan de sal because its market is more predictable and the stores only

need to stay open from 5 am to 9 am. 

One of his stores, sells P6,000 worth of pan de sal daily during weekends, and

P4,000 during regular days on the average. According to him, pocketing a cool P2,000

profit is the norm for each of his bakeries.

A PROFITABLE BUSINESS

Ric Pinca, executive director of the Philippine Association of Flour Millers

(Pafmil), agrees that indeed “baking is a rewarding and profitable business.”

“Bread is the country's second staple and everyone eats bread. Though

consumed mainly as breakfast and snack fare, bread is also taken at lunch, usually as

burgers and even dinner time. Bread is a convenience type of food. You don’t have to

sit and have a formal dinner just to eat bread. In fast food shops, you may get your

bread right at the counter and you even dont have to call a waiter to serve you.”

Bread, he added, may be consumed while walking, riding a bus or even while

whiling away time anywhere.

 But while the bakery business is a profitable one, Pinca said it is also a

demanding profession. Aside from investing money, he said a good amount of time,

patience and study is required if one is to put up a successful bakery business.

Filipinos love to eat bread and the business minded should keep this in mind.

Pandesal is the usual breakfast fare most Pinoys can’t do without before starting their

days. Snacks are usually a few slices of bread taken with coffee, soft drinks or fruit

juice. An aspiring bakery businessman should therefore have these two products in his

list and expand from there.

As writers of a book on Philippine breads, my co-author Jenny Orillos and I were

treated to a glimpse of the state of the baking industry in the country at the Bakery Fair,

a three-day event held at the World Trade Center from January 30 to February 1. And

from what we saw at the fair and up close in bakeries as we did research for the book,

the future certainly looks bright for Philippine baking.

In our visits to several panaderia all over the country in the last three years, we

saw how corner bakeries have embraced new technologies slowly but surely, and have

finally begun regarding baking as the science that it actually is. The days of using empty

milk cans and plastic pitchers to measure ingredients are fading slowly. Digital weighing

scales are now widely used. Recipes that were passed on from baker to baker by mouth

and memory are now written and serve as exact guides to ensure quality. And the most

humble panaderia have since begun to offer a wider variety of breads, both traditional

and modern.
RELATED STUDIES

This particular feasibility is regarding “Bakery & Confectionery” The project

feasibility may form the basis of an important investment decision and in order to serve

this objective, the document/study covers various aspects of project concept

development, start-up, production, marketing, finance, business management.

This study was conducted for the purpose of determining the factors to be

considered that would help small standalone modern trades in designing their bread

and bakery products’ shelf space layout together with its efficient allocation or

arrangement. The researchers’ aim to verify if both grocers and consumers agree with

the factors identified that apparently contributes to the increase in sales and store

profitability of the grocers.

Descriptive Statistics and series of Analysis of Variance (ANOVA) were applied

in the conduct of the study. Only four (4) were proven significant; Expiration/validity,

price, brand and product assortment.

This study will enable Grocers to design efficient shelf space layouts and

generate satisficing allocation plans for bread and bakery products that will enable them

to maximize sales opportunities and store profits. For the Consumers, this study will

serve as guide in understanding the principles behind the layout and arrangement of

retail shelf spaces and product.

This study is conducted to its purpose of identifying the critical factors that affect

shelf space layout and allocation of bread and bakery product section and its direct

contribution to the consumer buying decision of small standalone modern trades,

specifically grocery stores in San Pedro, Laguna, Philippines.

 This chapter discusses in detail the design and methodology that the researchers

used in the conduct of the study together with the results obtained in applying various

tools. An Operational or Methodical Framework has been used to illustrate visually the

process of the study while a 2–Phase Analysis Model has been employed as the

Conceptual Framework of the studies.

This study has been conducted for the purpose of identifying the most

important factors for both grocers and consumers in designing a shelf space and

making allocation and/or arrangement for bread and bakery products in small

standalone modern trades in the Philippines, specifically in San Pedro, Laguna. More

so, it is intended to determine the direct contribution of the factors considered in

designing the shelf space layout to the buying decision of the consumers that eventually

leads to store profitability.

True enough; the results of the study have answered the main objectives.

The results identified to be the most important factors are as follows: (1) Validity, (2)

Price, (3) Product Assortment, and (4) Brand.

More so, it has been proven that as much as the grocers would perceive

the reaction of buyers with the shelf space layout that they designed, the consumers, on

the other hand would still have varying preferences. The proof is the results of the

series of Analysis of Variance that were done in this study.

However, the researchers, are glad that even if not all the perceived

factors considered by the grocers were store profit optimizing, most of the factors are

found to be influential to the buying decision of the customers. This eventually leads to

the increase in sales and optimization of store profit on behalf of the grocers.
KEY DRIVERS

The main driver for the growth in the bread segment is the increase in demand

for bread containing whole grain, high in fiber, gluten-free, or healthy and fortified bread.

In order to become successful, “The Hot Oven” will be guided with the principle of:

• Maintaining the highest quality of breads and pastries to all customers by making

sure that bakers are well trained in terms of quality protocols and by acquiring

knowledge through the newest trend in baking, and;

• Providing products at affordable and competitive price to the customers by

making sure all cost are at minimum and by choosing cheap yet quality raw

materials needed in baking.

• Providing a reasonable return on the investments of the proponents for the

continuity of the business.

Objectives

The “The Hot Oven” business goals will be:

• to determine the viability on setting up a bakery; and,

• to increase awareness & knowledge on vegetable bread products and pastries,

• to check the suitability of the area to sustain the bakery business.

KEY BARRIERS
 There are three primary business barriers for all businesses to be truly

successful.   The first is capital or financing of the business.   This consists of equity

investments.   The entrepreneur needs to understand the various business entity

models for outside investors to exchange cash for ownership rights.   Alternatives

include borrowing money to expand operations.   However, in the early stages of

business, lenders demand collateral as security thus limiting the growth of a business.

The second and most important barrier to surmount is knowledge.  The more

specialized the business the longer time and the broader the spectrum of acquiring this

knowledge is required.   Knowledge includes education, credentialing, experience and

training.

The proponents prefer the place because it is accessible to the target market

such as the people residing in that place, a lot of walk-ins because of those adjacent

establishments and it is near to our competitors.

DEMAND AND SUPPLY ANALYSIS

This analysis is obtained through survey and interviews conducted by the

researcher from thirty (30) residents of Batuan, Bohol. The results serve as the over-all

review, response and comments regarding the feasibility of establishing the bakeshop

business and customer behavior of the vicinity.

Of the thirty (30) respondents, four (4) are male and the remaining twenty-six

(26) were female. Twelve (12) are students of the age 15-20 years old, fifteen (15) are

employees, three (3) are housewives within the ages of 21-50 years old. Monthly

income of the employees ranges from ₱3,000 - ₱10,000 pesos. The figure below shows

the demographics of the surveyed respondents with the corresponding percent of value.
 SEX AGE STATUS

13% 17% 10%

23%

40%
10%
37%
13%
50%

87%
less than 17 18-24
25-34 35-44 STUDENTS EMPLOYEE
MALE FEMALE 45 up HOUSE WIFE

Figure 2. Profile of the Respondent

Frequency

Do you eat vegetables?

The result show that overs 23 of the respondents said that they eat vegetables

while 7 of the respondents said that they don’t eat vegetables this result implies that we

there is a big fraction that our product will be viable to the target consumers who have

craved for vegetables.

How often do you eat bread?

The result shows that there 11 respondents eat bread every day and 6

occasionally eat bread while 13 of the respondents sometimes eat bread. By this result

the owner can have some adjustment about the production of our products.

How much will you willing to pay for the bread?

The result show that 8 of the respondents said that they are willing to pay a

bread for Php2-15 while 22 of the respondents are willing to pay Php16 up. This results

gave an idea on what will be the pricing for our products.

What variety of bread is your favorite?

The result shows that 9 of the respondents liked the Pandesal and 6 liked Loaf

Bread while 9 liked the Ensaymada and 5 of the respondent liked the Coco Bread. The

result gave an idea on how much vegie bread products will be produced.

TARGET MARKET

Target Market Description

Red Oven wants to distress the purchasing influence of most of the Filipinos as it

is offering an affordable price and addressing health and wellness trends in our product

offering. At all ages is the target market of Hot Oven, professional or not, male or female

18
and also to the walk-in costumers among all those Barangays stated below. One of our

target markets is the parents because they can influence the children to consume vegie

breads as a tasty snack treat and most especially the people within a healthy lifestyle.

Therefore, the business target markets using geographic segmentation are those

who come from the fifteen (15) barangays of Batuan, Bohol.

PROJECTED POPULATION OF THE TARGET MARKET

BARANGAYS POPULATION
Aloja 424
Cabacnitan 701
Cambacay 673
Cantigdas 786
Garcia 476
Janlud 780
Poblacion Norte 1,988
Poblacion Sur 1,313
Poblacion Vieja 899
Quezon 609
Quirino 480
Rizal 1,295
Rosariohan 929
Behind the Clouds 234
Sta. Cruz 1,180
TOTAL POPULATION 12,767
Table 1. Batuan Population

Projected population of the said barangays was provided by the Municipality of Batuan,

Bohol.

MARKET DEMOGRAPHICS

19
 The competition among bakeshop is very tough that it requires a strategic mind

to plan everything ahead and overcome the hurdles of the business world. Marketing

represents an opportunity to create additional competitive advantage, industry

awareness and getting the attention of the growling stomachs to set things through. Hot

Oven comes up with these marketing ideas to effectively manage the bakeshop’s

aspects in the long run.

As of 2015, Batuan reached a population of 12,767 persons and, 1,313 of the

total residents live in Poblacion Sur where the business would be constructed. Batuan’s

working age or economically active population age 15-64, comprises 58% of the total

population, while its dependent population, age 0-14 and 65 years and above,

comprises 42%. With this number of target customers, Hot Oven would have high

chances of cutomers. However, the presence of established competitors swarming in

the area creates a big threat to the business.

COMPETITION

There are no competitors in the area where Hot Oven is located. But near the

market there are 3 bake shops namely: Ben & Bang, Benies Bake shop and

Madelicious. Ben & Bang offers common bread that suits for oldies and acting old, their

price starts at 5 pesos. Benies Bake shop offers sweet breads and salty one, their price

starts at 4 pesos. While Madelicious is bigger of the two, it offers several of bread that

suits the budget of every consumers which is located in the market that has a populated

place and a good spot.

20
 For this, the proponents would like to be connected the consumers with our own

version of variety of breads, cookies, cakes, and other pastries products that contains

vegetables. The price will start at 8 pesos so that consumers can afford their favorite

bake product. The target market will be persuaded that the Hot Oven as the destination

for healthy products will be made/produced by adding mixed veggies in the bread and

pastry products which is good for the health and attractive to a health conscious person.

Once they have tried the bakeshop service/crew, their eating experience reinforced by a

friendly, efficient and knowledgeable service. Return or repeat business is expected and

take-out options will be available. A healthier variety of breads will be our market

identity.

The Hot Oven will aim a competitive advantage over our competitors that we will focus

on the following:

 Product Quality, Pricing, and Presentation

 Market

 Alternative Action

BUSINESS ENVIRONMENT

Business Offerings

A healthier variety of breads are what we are in the cognizance. For this brand

perception that we formalize we would like to linger the interest of the buyers and also

the consumer with our version of Veggie Breads. We would like to introduce varieties of

flavors that consumer that would not normally taste with the following flavors that we

21
would like to propose: malunggay (horseradish), ampalaya (bitter gourd), talong

(eggplant), kamatis (tomatoes) etc.

Nowadays, people would choose an artificially made food product that has a less

healthy nutritional content over the conventional foods that is said to be “good for our

health” that is available in the market. Promoting a healthy and convenient way of eating

by introducing varieties of Veggie Breads to the public consumers would also benefit not

just the consumers with the health nutrition content it have but also helps the Filipino

farming industries in the country as well.

The bakery provides and offers freshly prepared bakery and pastry products at

all times during business operations. Six to eight moderate batches of bakery and

pastry products are prepared during the day to assure fresh baked goods are always

available.

We give a 10% discount for those who buy 10 pieces of our highlighted products, and

50% discount an hour before the bake shop close

We offer you and your family delectable fully baked foods to eat. We can assure

a healthy and nutritious food, a food establishment that will cater to consumers who

have a health concerns such as diabetes, and heart problems also to the health

conscious consumers.

Unique Quality

 Fresh from the oven

 Nutritious bread

 Unique discount with free Wi-Fi

22
 S-W-O-T ANALYSIS of THE HOT OVEN BAKE SHOP

Strengths

 Great retail space that is bright, hip, clean, and located in near Church,

Municipal, Police Station, Fire Station, Schools & etc.

 Our prices are cheaper than the competitors

 Our service style is new to the area

 We’re offering a menu easily prepared in a bread showcase for your desired

choice

 The Hot Oven will have our take-away options for our consumers

 Excellent staff who are highly-trained and very customer attentive

Weaknesses

 Our bakeshop is new and not established

 We have limited funds available

 A limited marketing budget to develop brand awareness

 We don’t advertise our bakeshop for commercials

Opportunities

 A tourist spot is nearby

 In front of Municipality and surrounded of three different Schools

23
  The Hot Oven will launched another branch in other target markets available and

applicable in the Bohol Province.

Threats

 A main competitor may lowered their prices and started a price war with us

 Our operating costs are set to increase soon

 Our bakeshop lease is up for renewal and a rent increase might happen

MARKETING STRATEGIES

The market strategy of the business includes the 4P’s of Business Opportunity.

Menu Description Place of Product

Marketing

Product Place

Price Promotion
Pricing and Discounts Online Marketing
Offline Marketing

24
 Figure 3. 4P’s of Marketing Strategy

The focus of our Strategy should be making sure that our products and services

meet customer needs and developing long – term and profitable relationships with

those customers. To achieve this, we will need to create a flexible strategy that can

respond to changes in customer perception and demand. It may also help us identify

whole new markets that we can successfully target.

Product

A healthier variety of breads are what we are in the cognizance. For this brand

perception that we formalize we would like to linger the interest of the buyers and also

the consumer with our version of Veggie Breads. We would like to introduce varieties of

flavors that consumer would not normally taste.

Nowadays, people would choose an artificially made food product that has a less

healthy nutritional content over the conventional foods that is said to be “good for our

health” that is available in the market. Promoting a healthy and convenient way of eating

by introducing varieties of Veggie Breads to the public consumers would also benefit not

just the consumers with the health nutrition content it have but also helps the Filipino

farming industries in the country as well.

25
 The bakery provides and offers freshly prepared bakery and pastry products at

all times during business operations. Six to eight moderate batches of bakery and

pastry products are prepared during the day to assure fresh baked goods are always

available.

Place Strategy

The location of Hot Oven will be established in Poblacion Sur, Batuan, Bohol a

progressive place. The proponents prefer this place because it is accessible to the

target market such as the people residing in that place, a lot of walk-ins because of

those adjacent establishments and it is near to our competitors.

Price Strategy

The starting price that the proponents will offer to the target market is cheaper

than the other competitor because of the availability of the raw needed for the

production. The enterprise follows certain calculations arrive at the suggested retail

price. The price will be based on the cost directly incurred in manufacturing the product,

cost of raw materials plus overhead cost.

The proponents will sell the “Malunggay Pandesal” with a minimum cost of ₱2

each at the bakery shop depends on its size, due to some environmental factors that

may affect the future financial status of the business. The price of the product will be

least competitive for those who will buy it. The price is crucial consideration.

In pricing management must determine the right basis price for the products. It must

then decide on strategies concerning discounts, consignment payment and other price

related variables.

26
Promotion:

 Online Marketing

Hot Oven wishes to set up with this strategy to thoroughly promote the business

proper. Process includes the creation of a facebook page where high-quality and drool-

inducing photos of the bakeshop’s menu are posted for audiences and viewers.

 Offline Marketing

The strategy involves printing of posters on public areas to give the people a

view of the business. This is also to attract the people who pass the town of Batuan and

the people residing in the area.

CHAPTER III

MANAGEMENT STUDY

This chapter overviews the business employment structure with the

management, personnel responsibilities, qualifications and compensation in the full-

operation of the desired food service industry.

27
ORGANIZATIONAL STRUCTURE

ORGANIZATIONAL CHARTS

OF

THE RED OVEN

GELLA REQUILLO
Manager/ Head

NIRESA REQUILLO
Assistant Manager

BENITO REQUILLO GERYL REQUILLO BENZ ANTHON REQUILLO

Head Baker Cashier Delivery Boy

RENZ LOUIS REQUILLO JENEFER ACERO

Baker Maintenance

Figure 4. Organizational Chart

QUALIFICATIONS AND SKILLS

A bakery is only as strong as the employees who take orders from customers,

handle the mixing and baking, decorate dessert items and specialty items, make

deliveries, and handle ingredient purchasing. A bakery is like a small community, and

each member of that community must pull his or her own weight. Many bakers, though,

28
find it difficult to manage a team of employees while simultaneously handling the

baking.

FUNCTIONS AND RESPONSIBILITIES

Job Title: General Manager is taken by Ms. Gella Requillo

Job Descriptions:

 In charge for the overall operation of the business.

 Plans and implements the management policies of the firm.

 Execute authority necessary to achieve the goals of the business.

 One who has control over a business and direct or overseas the affairs.

 Must have the organizational skills and leadership qualities integral to partner’s

success.

 Must be a planner, policy developer, organization and systems supervisor, and

appraiser of results.

 Scheduled and presides all the meetings of the business.

 Ensure the training and development opportunities are available to employees to

enhance their performance and achieve the employer’s business aim.

 Recruiting staffs – which include developing job descriptions and person

specifications, referring job adverts, checking application forms, short listing,

interviewing and selecting candidates.

 Advising on promotion and benefits.

 Undertaking regular salary reviews.

Job Title: Head Baker is taken by Benito Requillo

29
Job Descriptions:

 Monitor all duty schedules in the bakery operation.

 Create high quality and creative bakery products to satisfy the customer.

 Follow the instructions and recommendations from the immediate Superiors to

complete the daily tasks.

 Ensure the highest standards and consistent quality in the daily preparation and

keep up to date with new recipes and preparation techniques.

 Participate in establishing the month end inventory in the bakery.

 Handle all food transfers out of the bakery to other areas and ensures proper

documentation.

 Coordinate and participate with other sections of requirements, cleanliness,

wastage and cost control.

 Consult and check on daily bakery requirements, functions, buffets and last

minute events.

 Ensure highest standards of hygiene within the bakery section.

Job Title: Baker – Renz Louis Requillo

Job Descriptions:

 Prepare and bake foods.

 Prepare and make all bakery items for a large number of guests.

 Lead a team of bakers to prepare bakery items for banquets and events.

 Inspect and ensure proper color combination for all baked items.

30
  Provide training to staff in baking activities.

 Meet the requirements of clients.

 Ensure proper storage of all items in refrigerators and freezers.

 Ensure product freshness and food safety.

 Assist and support senior chef and other bakers.

 Retain existing customer-base through preparation and serving of tasty items.

 Test baked items by tasting or smelling them.

Job Title: Cashier – Geryl Requillo

Job Descriptions:

 Receive payment by cash, check, credit cards, vouchers, or automatic debits.

 Issue receipts, refunds, credits, or change due to customers.

 Count money in cash drawers at the beginning of shifts to ensure that amounts

are correct and that there is adequate change.

 Greet customers entering establishments.

 Maintain clean and orderly checkout areas.

 Establish or identify prices of goods, services or admission, and tabulate bills

using calculators, cash registers, or optical price scanners.

Job Title: Delivery Boy- Benz Anthon Requillo

Job Descriptions:

 Deliver products on time.

COMPENSATION AND BENEFITS

31
 Employees will be compensated and appraised for their work performed. In

addition, other benefits will be arranged by the company in order to win their

employees’ loyalty and serves as a motivation for them to increase their level of

performance.

1. Payment of Salaries and Wages

The salaries and wages are the based on a daily rate of the employees of the

company and on fixed rate for the General Manager.

Employer Employee
SSS
Pag-ibig
Phil-Health

CHAPTER IV

TECHNICAL STUDY

32
This chapter provides comprehensive technicalities of the business in relation to

services, production, layout and function of structures on how the products are to be

produced and what technology to be used.

PORDUCT DESCRIPTION AND ECONOMIC USERS

 Carrot Bread Sticky Rolls ₱10.00

Carrot Bread Sticky Rolls is made

from cinnamon, nuts and dried fruit
these sticky rolls make a great treat
or snack

 Banana Bread w/ Chocolate Chip ₱75.00

Banana Bread w/ Chocolate Chip is

wonderfully moist and loaded with
ripe bananas and melty morsels of
chocolate chips. This banana
chocolate chip bread is a real treat.

 Mango Bread ₱100.00

Mango Bread brings sweet mangoes,

cinnamon and coconut into perfect
harmony. A family and friend favorite.

 Malunggay Loaf Bread ₱25.00

Malunggay Loaf Bread, however, is full

of ingredients your body will thank you
for. Vegetables, seeds, nuts and protein-
33 rich eggs make it a fantastic way to fuel
up at breakfast or any time of the day.
Not forgetting the moringa, which is a
great source of vitamins, minerals
antioxidants, protein and fiber.  
 Ube Rolls ₱10.00

Ube Rolls are soft milk bread filled

with creamy purple yam filling. They
are a perfect indulgent breakfast or
snack to add sweetness to your day.
The soft, melt in your mouth texture
and the creamy, buttery ube filling will
leave you wanting more.

 Malunggay Pandesal ₱2.00

The malunggay pandesal is made by

combining malunggay pulp into the
dough before it is cooked into
the pandesal. The malunggay in the
mixture gives out a green fragrance that
enhances the already aromatic smell of
the bread

 Pande Coco ₱4.00

Pan de Coco with soft, fluffy bun

and perfectly sweetened coconut
filling is perfect as a snack or
dessert! This coconut bread is
amazing with coffee, tea or on its
own!

34
  Pande Lihim ₱5.00
These soft bread pockets are stuffed with
a brightly-colored pudding made from
stale bread, milk, eggs, sugar, vanilla,
and a mother lode of red food coloring.
Variations on the filling also include those
made from ube and pineapple.

 Squash Bread ₱5.00

Squash Bread is a squash transform

into a moist delicious loaf bread.

PLANT SIZE, LAYOUT AND PRODUCTION SCHEDULE

Business Structure

The major food production process used will be a commissary system, is a

licensed and inspected kitchen facility, usually large and commercially-outfitted, for the

centralized preparation of food for distribution to many different end sites. The term is

commonly used in two different contexts: for industrial or institutional food preparation

(In the second case, the commissary may also be called a community kitchen or kitchen

incubator ;) where the products are prepared in our main kitchen and these will be

transferred to our store at Gateway Mall where the products are held for a short time,

until serving time.

35
36
37
Gant Chart

DESCRIPTION 1-3 4-6 7-9 10-12 13-15 16-18 19-22 23-25

A Approval of the Feasibility

study
B Evaluation of the Market
Area
C Capital Earnings
D Business Planning and
Strategizing
E Registering License
F Building of Establishment
G Purchasing Equipment
and Kitchen Utensils
H Recruiting, Hiring and
Briefing of Employees
I Purchasing Goods and
Ingredients
J Starting business
operations
Table 4. Gant Chart

MACHINERY

38
39
 CHAPTER V

FINANCIAL STUDY

This chapter displays financing sources of the business along with costs,

profitability and revenue recognition so as to determine whether the industry is worth the

risks of capitalizations.

TOTAL PROJECT COST

TABLE 5 shows the estimated costs and expenses of establishing the bakeshop.

HOT OVEN BAKE SHOP START-UP COSTS

ITEM COSTS
Architect & Carpenter Fees ₱ 50,000.00
Building materials and equipment ₱ 500,000.00
Floors , glass, walls & Ceiling ₱ 100,000.00
Furniture & Fixtures ₱ 25,000.00
Plumbing & Electricity ₱ 18,000.00
Decorations ₱ 5,000.00
TOTAL BUILDING COST ₱705,000.00
Refrigerator ₱ 15,000.00
Bun and sheet pan equipment ₱ 5,000.00
Dough preparation equipment ₱ 5,000.00
Oven ₱ 20,000.00

40
 Mixers and accessories ₱ 3,000.00
Holding and proofing cabinets ₱ 5,000.00
TV ₱ 7,000.00
Baking tools ₱ 25,000.00
Bread display cabinet ₱ 14,000.00
Display Chiller ₱ 40,000.00
Cleaning materials ₱ 3,000.00
TOTAL TOOLS & EQUIPMENTS ₱ 142,000.00
Ingredients ₱ 300,000.00
Licenses & permits ₱ 30,000.00
Posters & and signage ₱ 3,000.00
Packaging ₱ 30,000.00
Water and Electricity Bill ₱ 18,000.00
OTHER SET-UP COSTS ₱ 783,000.00
TOTAL COSTS REQUIRED ₱ 1,230,000.00
Table 5. Start-up Cost
INITIAL CAPITAL REQUIRMENTS

The owner decide to produce the capital amount of ₱1,500,000.00.

SOURCES OF FINANCING

This contains the costing of each bread and the profit generated after a number

of bread are sold.

COSTING
Products Price
Carrot Bread Sticky Rolls ₱10.00
Banana Bread w/ Chocolate Chip ₱75.00
Mango Bread ₱100.00
Malunggay Loaf Bread ₱25.00
Ube Rolls ₱10.00

41
Malunggay Pandesal ₱2.00
Pande Coco ₱4.00
Pande Lihim ₱5.00
Squash Bread ₱5.00
Table 6. Costing

UNIT SALES PER

SALES SALES PER MONTH
per Day DAY
Carrot Bread Sticky Rolls 100 ₱1,000.00 ₱30,000.00
Banana Bread w/ Chocolate Chip 15 ₱1,125.00 ₱33,750.00
Mango Bread 10 ₱1,000.00 ₱30,000.00
Malunggay Loaf Bread 8 ₱200.00 ₱6,000.00
Ube Rolls 100 ₱1,000.00 ₱30,000.00
Malunggay Pandesal 500 ₱1,000.00 ₱30,000.00
Pande Coco 100 ₱400.00 ₱12,000.00
Pande Lihim 100 ₱500.00 ₱15,000.00
Squash Bread 100 ₱500.00 ₱15,000.00
TOTAL 1,033 ₱6,725 ₱201,750.00
Table 7. Projected Sales per Days and per Months

Projected Sales
PRODUCT 2021 2022 2023 2024 2025
Carrot Bread Sticky
₱360,000.00 ₱396,000 ₱435,600 ₱479,160 ₱527,076
Rolls
Banana Bread w/
₱270,000.00 ₱297,000 ₱326,700 ₱359,370 ₱395,307
Chocolate Chip
Mango Bread ₱180,000.00 ₱198,000 ₱217,800 ₱239,580 ₱263,538
Malunggay Loaf
₱72,000.00 ₱79,200 ₱87,120 ₱95,832 ₱105,415.2
Bread
Ube Rolls ₱360,000.00 ₱396,000 ₱435,600 ₱479,160 ₱527,076
Malunggay
₱360,000.00 ₱396,000 ₱435,600 ₱479,160 ₱527,076
Pandesal
Pande Coco ₱144,000.00 ₱158,400 ₱174,240 ₱191,664 ₱210,830.4
Pande Lihim ₱180,000.00 ₱198,000 ₱217,800 ₱239,580 ₱263,538
Squash Bread ₱180,000.00 ₱198,000 ₱217,800 ₱239,580 ₱263,538
TOTAL ₱2,421,000.00 ₱2,663,100 ₱2,929,410 ₱3,222,351 ₱3,544,586.1

42
 Table 8. Projected Sales in a year

CALCULATING EXPENSES:

A. Salaries and Wages

SALARY MONTHLY COST PER

POSITION
PER DAY SALARY ANNUAL
Assistant Manager ₱300 ₱9 000 ₱108 000
Head Baker ₱300 ₱9 000 ₱108 000
Baker 1 ₱250 ₱7 500 ₱90 000
Cashier ₱200 ₱6 000 ₱72 000
Maintenance ₱200 ₱6 000 ₱72 000
Delivery Boy ₱200 ₱6 000 ₱72 000
TOTAL ₱1 400 ₱42 000 ₱504 000
Table 9. Salaries and Wages

B. Water and Electricity Bill

= ₱18,000.00 per annum

C. Advertising Expense

Posters and signage Value

= ₱3,000.00 (year)

FINANCIAL STATEMENTS

Financial Statements presented in this discussion represents the financial

viability of the business, Hot Oven Bakeshop.

43
 HOT OVEN BAKESHOP
PROJECTED INCOME STATEMENT
For the year ended December 31, 2021-2025
2021 2022 2023 2024 2025
Sales ₱2,421,000 ₱2,663,100 ₱2,929,410 ₱3,222,351 ₱3,544,586.1
Less: Cost of 330,000 345,000 360,750 377,287.5 394,651.875
Goods Sold
Gross Income ₱2,091,000 ₱2,318,100 ₱2,568,660 ₱2,845,063.5 ₱3,149,934.225
Less: Operating
Expense
Salary ₱504,000 ₱504,000 ₱504,000 ₱504,000 ₱504,000
Advertising 3,000 3,000 3,000 3,000 3,000
Expense
Water & 18,000 18,000 18,000 18,000 18,000
Electricity Bill
Total ₱525,000 ₱525,000 ₱525,000 ₱525,000 ₱525,000
Operational
Expenses
Income before ₱1,566,000 ₱1,793,100 ₱2,043,660 ₱2,320,063.5 ₱2,624,934.225
Tax
Less: Income 469,800 537,930 613,098 696,019.5 787,480.2675
Tax (30%)
Net Income ₱1,096,200 ₱1,255,170 ₱1,430,562 ₱1,624,044.45 ₱1,837,453.9525
Table 10. Income Statement

EXPLANATION:

Sales is assumed to increase by 10% each year, hence, after 5 years, the business will

have ₱3,544,586.1 revenues. Capital will be recovered after 2 years and the business

can gain profit in the succeeding years.

44
 HOT OVEN BAKESHOP
PROJECTED CASH FLOWS
For the year ended December 31, 2021-2025
2021 2022 2023 2024 2025
Cash, Beg. ₱1,749,200 ₱3,004,370 ₱4,434,932 ₱6,058,976
Owners Capital ₱1,500,000
Sales ₱2,421,000 ₱2,663,100 ₱2,929,410 ₱3,222,351 ₱3,544,586.1
Total Cash Inflows ₱3,921,000 ₱4,412,300 ₱5,933,780 ₱7,657,283 ₱9,603,562.1
Less: Cash
outflows
Purchased of ₱847,000
Fixed Asset
Ingredients ₱300,000 ₱315,000 ₱330,750 ₱347,287.5 ₱364,651.875
Packaging ₱30,000 ₱30,000 ₱30,000 ₱30,000 ₱30,000
Salary& Wages ₱504,000 ₱504,000 ₱504,000 ₱504,000 ₱504,000
Advertising ₱3,000 ₱3,000 ₱3,000 ₱3,000 ₱3,000
Expense
Water & ₱18,000 ₱18,000 ₱18,000 ₱18,000 ₱18,000
Electricity Bill
Income Tax ₱469,800 ₱537,930 ₱613,098 ₱696,019.5 ₱787,480.2675
TOTAL Operating ₱2,171,800 ₱1,407,930 ₱1,498,848 ₱1,598,307 ₱1,707,132.1425
Expenses
Cash Balance, ₱1,749,200 ₱3,004,370 ₱4,434,932 ₱6,058,976 ₱7,896,429.9575
End
Table 11. Cash Flows

HOT OVEN BAKESHOP

PROJECTED BALANCE SHEET
For the year ended December 31, 2021-2025
2021 2022 2023 2024 2025
ASSETS
CURRENT

45
 ASSETS
CASH ₱1,749,200 ₱3,004,370 ₱4,434,932 ₱6,058,976 ₱7,896,429.9575
Total Current ₱1,749,200 ₱3,004,370 ₱4,434,932 ₱6,058,976 ₱7,896,429.9575
Assets
NON-CURENT
ASSETS
BUILDINGS ₱705,000 ₱705,000 ₱705,000 ₱705,000 ₱705,000
EQUIPMENT ₱ 142,000 ₱ 142,000 ₱ 142,000 ₱ 142,000 ₱ 142,000
Total Non-Current ₱847,000 ₱847,000 ₱847,000 ₱847,000 ₱847,000
Assets
TOTAL ASSETS ₱2,596,200 ₱3,851,370 ₱5,281,932 ₱6,905,976 ₱8,743,429.9575
LIABILITIES
CAPITAL
Owner’s Capital ₱1,500,000 ₱2,596,200 ₱3,851,370 ₱5,281,932 ₱6,905,976.45
Add: Net Income ₱1,096,200 ₱1,255,170 ₱1,430,562 ₱1,624,044.45 ₱1,837,453.9525
TOTAL ₱2,596,200 ₱3,851,370 ₱5,281,932 ₱6,905,976.45 ₱8,743,430.4025
LIABILITES AND
CAPITAL
Table 12. Balance Sheet

CHAPTER VI

SOCIAL AND ECONOMIC RESPONSIBILITIES

This chapter presents the industry’s over-all effects on both economic and social

contributions to show a better view of the positive reasons of establishing such business

in the locality.

ECONOMIC SIGNIFICANCE

46
In this certain project, the researcher consider the whole part of the business especially

the impact in the community.

 Income
 Improve
Status of
Living
 Employment

 TAXES
 GOVERNMET
 COMMUNITY
DEVELOPMENT

Chart 5. Projects

Contribution to Income and Employment

The main goal of a certain business is to have high income especially in the part

of the owner. The business should generate pleasantly relationship between manager

and employees to attain the main goal of the business which is to have an income. At

workers and employees in the business need income to support their own needs and

also for their services rendered in the business. Building up business is a great

opportunity for an employed people to have jobs. It will also be their opportunity of

having another source of income.

Tax Contribution

This business is expected to give a great contribution to the Government in the

form of taxes. The tax payment from the business would help the localities as well as

47
the economy in its future project especially for the people that will benefit. This would

help the people to more sprightly.

ENVIRONMENTAL CONTRIBUTION

Focusing on environmental sustainability has become a hot topic for bakeries as

consumers become more aware of the impact production has on the earth. Companies

have many ways to show they are making bakery products while being mindful of the

environment and the people who take it from farm to shelf. 

Biodegradable/ Eco-friendly packaging

We have a current project to investigate fuel cells for energy storage to reduce

usage during peak hours, which benefits the bakery’s cost and also benefits the

community.

SOCIETAL BENEFITS

The Hot Oven bread aren’t only healthy for you, they’re also healthy for Mother

Earth. No preservatives all that we serve and sell to our customers are always fresh

and nutritious made from different vegetables that are being prepared and were

properly handled.

CHAPTER VII

STUDY CONCLUSION AND RECOMMENDATIONS

Conclusion
48
 Based on the research and study that conducted, the researcher therefore

conclude that the business is feasible and viable in the market.

Recommendation

After bearing in mind the significant factors in the study that the researcher

conducted such factors like the marketing, financial, technical and management and

economic study. It is therefore recommended that HOT OVEN bakeshop will be

pursued and the business establishes at Poblacion Sur, Batuan, Bohol.

49