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Feasibility Study

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    Feasibility study on-street-food-kiosk Feasibility study on-street-food-kiosk Document Transcript

    • POLYTECHNIC UNIVERSITY OF THE PHILIPPINES Taguig Campus General Santos Avenue, Upper Bicutan Taguig City A Feasibility Study on  KALYE OCHO  A Feasibility Study on Street Food Kiosk In Partial Fulfilment of the Requirements of Bachelor in Business Administration Major in Marketing Management Presented to the Panelist of Oral Defense Submitted to: Professor Aldrin P. Antivola Submitted by: ACABO, Alfie J. ALMONTERO, Rachel Ann G. JUATCO, Jerald Angelo M. RICOHERMOSO, Mera Vernadeth P. VILLANUEVA, Loveleen A. November 2010
    • FEASIBILITY STUDIES   KALYE OCHO Republic of the Philippines Polytechnic University of the Philippines Taguig Campus Gen. Santos Ave., Bicutan, Taguig City Tel. No.: 837-5858 Endorsement Sheet This feasibility study of Ms. Mera Vernadeth P. Ricohermoso, Ms. Loveleen A. Villanueva, Ms. Rachel Ann G. Almontero, Mr. Alfie J. Acabo and Mr. Jerald Angelo M. Juatco entitled   KALYE OCHO  A Feasibility Study on Street Food Kiosk  submitted in partial fulfilment of the requirements for Degree in Bachelor in Business Administration is hereby endorsed for oral defense. ________________________ PROF. ALDRIN P. ANTIVOLA Approval Sheet Accepted and endorsed after having passed the oral defense satisfactory as indicated in the corresponding rating form by the undersigned. ______________________ PROF. JONATHAN MARQUEZ ______________________ MR. SYED AMED Approved and accepted in the partial fulfilment of the requirements for the Degree of Bachelor in Business Administration, September 2010. _______________________ DIR. AMELITA A. LAURENTE PUP Taguig Campus Directress Polytechnic University of the Philippines ii
    • FEASIBILITY STUDIES   KALYE OCHO ACKNOWLEDGEMENT First of all, we would like to express our deepest gratitude to our Professor Aldrin P. Antivola for giving us opportunity to make this stud y as part of our endless search for knowledge. Great thanks to our parents for all the love and support in doing this study. They made us successful by helping us in a big way for providing financial support, accommodation, and especially the strength and inspiration in accomplishment of everything we do. We want to acknowledge as well as all our respondents who spent some time and effort in cooperating for answering our questionnaires and to all the employees of Parañaque Municipal Hall, SEC, SSS, and DTI and other people who provide some assistance and information that we need in the study. We would also like to thank everyone who helped us even in a small way particularly our friends and classmates contributing to the success of this project. And above all, this study won t be possible without the guidance and inspiration given by our Almighty God. Polytechnic University of the Philippines iii
    • FEASIBILITY STUDIES   KALYE OCHO TABLE OF CONTENTS Title Page............................................................................ .......................................................i Endorsement/ Approval Sheet .......................................................................... .....................ii Acknowledgement................................................................. .................................................iii Table of Contents ....................................................................... ............................................iv List of Tables ......................................................................... .................................................x List of Figures......................................................................... ................................................xii Introduction.................................................................... ........................................................xiv Kalye Ocho Logo............................................................................ ........................................xv I. Executive Summary A. Name of the Business B. Title of the Study C. Store Location D. Description of the Logo E. Brief Description of the Project F. General Objectives of the Business G. Research and Methodology G.1. Survey G.2. Sloven s Formula G.3. Sampling Techniques G.4.Survey Questionnaire G.5. Interview G.6. Research G.7. Mapping G.8. Search of Internet, Books, and Libraries H. Project Summary H.1. Market Summary H.2. Technical Summary H.3. Management Summary H.4. Financial Summary 1 1 1 1 2 3 3 4 4 4 5 5 5 5 6 7 9 9 9 9 10 Polytechnic University of the Philippines iv
    • FEASIBILITY STUDIES   KALYE OCHO I. Operational Terms J. Scope and Limitation 10 11 II. Market Study Introduction Objectives A. Demand A.1. Past Demand A.1.1. For the Industry A.1.2. For Every Products A.2. Projected Demand A.2.1. For the Industry A.2.2. For Every Products A.3. Market Segmentation B. Supply B.1. Past Supply B.1.1. For the Industry B.1.2. For Every Products B.2. Projected Supply B.2.1. For the Industry B.2.2. For the Products B.3. Competitors Analysis C. Demand Supply Gap Analysis D. Market Share Analysis D.1. Projected Sales E. Marketing Strategies E.1. Product Strategies E.2. Place Strategies E.3. Pricing Strategies E.4. Promotion E.4.1. Poster E.4.2. Website E.4.3. Flyers 12 12 12 13 13 13 14 15 15 15 16 17 17 17 17 18 18 19 20 21 23 25 26 26 26 26 27 27 28 29 Polytechnic University of the Philippines v
    • FEASIBILITY STUDIES   KALYE OCHO E.4.4. Gift Certificates F. SWOT Analysis 30 30 III. Technical Study Introduction Objectives A. Product Description A.1. Product Pricing A.2. Product Preparation Guide A.2.1. Streetfoods A.2.2. Drinks A.2.3. Desserts A.3. Time Motion Study B. Business Process C. Business Location D.1. Vicinity Map D.2. Floor Plan D. Machineries and Equipment E. Utensils F. Furniture and Fixtures G. Supplies G.1. Office Supplies G.2. Sanitary Supplies H. Store Uniforms I. Utilities Requirements I.1. Electricity I.2. Water Supply I.3. Telecommunications I.4. LPG J. Waste Disposal Method K. Direct Labor Requirements K.1. Work Schedule 31 31 32 32 34 35 35 43 46 50 50 50 50 51 53 58 64 65 65 67 71 73 73 73 73 73 74 74 75 Polytechnic University of the Philippines vi
    • FEASIBILITY STUDIES   KALYE OCHO IV. Management Study Introduction Objectives A. Form of Ownership B. Mission, Vision, Core Values B.1. Vision B.2. Mission B.3. Core Values C. Capitalization D. Organizational Chart E. Manpower Requirements F. Employment Process G. Legal Requirements G.1. Municipality of Parañaque G.2. BIR G.3. SSS G.4. DTI G.5. SEC G.6. FDA H. Organizational Policies and Procedures H.1. Employment H.2. Classification of Employees H.2.1. According to Rank H.2.2. According to Status H.3. Orientation H.4. Personnel Records H.5. Contracts of Employment H.6. Work Schedule H.7. Tune Keeping H.8. Attendance and Punctuality H.8.1. Attendance H.8.2. Punctuality 76 76 76 76 77 77 77 77 78 78 79 82 83 83 83 83 83 83 83 84 84 85 85 85 85 86 86 86 86 87 87 88 Polytechnic University of the Philippines vii
    • FEASIBILITY STUDIES   KALYE OCHO H.9. Personnel Movement and Performance Evaluation H.10. Separation from Service H.10.1. Voluntary Resignation H.10.2. Termination H.11. Compensation and Benefits H.11.1. Salaries and Wages H.11.2. Overtime Pay H.11.3. Cancelled Dayoff/ Holiday Pay H.11.4. 13th Month Pay H.11.5. Paternity and Maternity Leave H.11.6. SSS/PHIC/HDMF Benefits H.11.7. Hospitalization Plan H.11.8. Accident Insurance H.11.9. Retirement Benefits H.11.10. Bereavement Assistance H.11.11. Other Incentives and Awards I. Code of Ethics I.1. Hygiene and Sanitation I.2. Arrival and Departure of Employees I.3. Procedure for Notices/Bulletin Boards I.4. Notice of Disciplinary Action I.5. Code of Conduct I.5.1. Kinds of Penalties H. Project Schedule Gantt Chart 88 88 88 89 89 89 89 89 90 90 90 90 91 91 91 91 91 91 92 92 92 92 92 94 V. Financial Study Introduction Objectives Major Assumptions Income Statement Statement of Cash Flow Balance Sheet Statement of Changes in Partner s Equity 95 95 95 96 97 98 99 100 Polytechnic University of the Philippines viii
    • FEASIBILITY STUDIES   KALYE OCHO Financial Analysis Economic Evaluation Socio   Economic Study Introduction Objectives A. Socio-Economic Contributions A.1. Contribution to the Philippine Economy A.2. Employment Generation A.3. Environment Conservation 101 105 VI. 106 106 106 106 106 106 107 Appendices Kalye Ocho Survey and Evaluation Sheet Tally of Questionnaire Other Tables 108 108 112 128 Recommendations Findings Bibliography 136 137 Polytechnic University of the Philippines ix
    • FEASIBILITY STUDIES   KALYE OCHO LIST OF TABLES TABLE PAGE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Past Demand for the Industry Past Demand for the Products Projected Demand for the Industry Projected Demand for the Products Past Supply for the Industry Past Supply for the Products Projected Supply for the Industry Projected Supply for the Products Competitors Products Analysis Demand Supply Gap Analysis Market Shares of Kalye Ocho Projected Market Share Projected Sales Work Schedule Offenses for the Workers 13 14 15 15 17 17 19 19 21 22 24 25 25 75 93 Appendices Customer s Profile Respondent s Ages Question #1 Statistics Question #2 Statistics Question #3 Statistics Question #4 Statistics Question #5 Statistics Question #6 Statistics Question #7 Statistics Question #8 Statistics 16 17 18 19 20 21 22 23 24 25 112 113 114 115 116 117 118 119 120 121 Polytechnic University of the Philippines x
    • FEASIBILITY STUDIES   KALYE OCHO 26 27 28 29 30 31 Question #9 Statistics Question #10 Statistics Question #11 Statistics Question #12 Statistics Question #13 Statistics Question #14 Statistics 122 123 124 125 126 127 Polytechnic University of the Philippines xi
    • FEASIBILITY STUDIES   KALYE OCHO LIST OF FIGURES FIGURE PAGE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Location of the Business Location of the Business in the Establishment Business Logo Parañaque City Map Breakdown of Markets Kalye Ocho Poster Kalye Ocho Unofficial Website Kalye Ocho Flyer Our Products Adidas Balut Calamares Chicken Skin Fishball Isaw Kwek-kwek Pork Barbeque Iced Tea Pineapple Juice Sago t Gulaman Halo-halo Mais Con Yalo Saging Con Yelo Sorbetes Vicinity of Paranaque Floor Plan Measurements Floor Plan Details 1 2 2 6 25 27 28 29 33 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 Polytechnic University of the Philippines xii
    • FEASIBILITY STUDIES   KALYE OCHO 28 29 30 31 32 33 Uniforms for Male Crews Uniforms for Female Crews Uniforms for Male Store Managers Uniforms for Female Store Managers Organizational Chart GANNT Chart 71 71 72 72 78 94 Appendices 34 35 36 37 38 39 40 41 42 43 44 45 46 Question #1 Graph Question #2 Graph Question #3 Graph Question #4 Graph Question #5 Graph Question #6 Graph Question #7 Graph Question #8 Graph Question #9 Graph Question #10 Graph Question #11 Graph Question #12 Graph Question #13 Graph ` 114 115 116 117 118 119 120 121 122 123 124 125 126 Polytechnic University of the Philippines xiii
    • FEASIBILITY STUDIES   KALYE OCHO INTRODUCTION The growing street food sector in low-income countries offers easy access to inexpensive food as well as new job opportunities for urban residents. While this development is positive in many ways, it also presents new public health challenges for the urban population. Safe food hygiene is difficult to practice at street in settings where resources are scarce and surroundings are of low environmental and sanitary standards. 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. In accordance to this matter, the proponents of Kalye Ocho 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, quality of the products, sanitary procedures and best service accommodation will be the key factors to attain customer s trust and loyalty. Through quality management, customer s satisfaction will be achieved. Polytechnic University of the Philippines xiv
    • FEASIBILITY STUDIES   KALYE OCHO A FEASIBILITY STUDY ON STREETFOOD KIOSK Polytechnic University of the Philippines xv
    • FEASIBILITY STUDIES   KALYE OCHO CHAPTER I EXECUTIVE SUMMARY A. Name of the Business: Kalye Ocho The business proponents came up with the Kalye Ocho as the name of our business.  Kalye  as the Tagalog term for the word  street  and  Ocho , as the Spanish term for the number  eight  that represents the number of kinds of street foods we mainly served to our customers. Kalye Ocho can also be interpreted as one of the streets in a certain place that sets the perception to potential customers that our restaurant serves and offers street foods. B. Title of the Study: A Feasibility Study on Street Food Kiosk C. Store Location Figure 1 Location of the Business  Building B, Foodcourt, SM Bicutan, Dona Soledad Barangay Don Bosco, Paranaque City  Location is one of the major factors to be considered in starting up a business. It must be assured that it is accessible to the target market. If location is later found to be incompatible to the situation as to give consideration to its target market, it Polytechnic University of the Philippines 1
    • FEASIBILITY STUDIES   KALYE OCHO may lead the company to failure. Right choice of location means reaching your target customers and you respond correctly to their market needs.  Based on our survey, majority of the respondents chose mall as a place to locate our business. We ve decided to put our business at SM Bicutan because we believed it would be very accessible to our target customers which are those ages 10-24 years. Surrounding the establishment are different high schools and colleges like AICS, Informatics, PUP-T, DASNHS, etc.  SM Bicutan is considered to be a strategic location for business because it lies in the intersection between Paranaque and Taguig City. In that case, not only the residents of Paranaque City of the given age can be persuaded but the residents of Taguig City of the same age as well. Figure 2 Location of the Business in the Establishment D. Description of the Logo Figure 3 Business Logo Polytechnic University of the Philippines 2
    • FEASIBILITY STUDIES   KALYE OCHO Our business came up with this logo because we believed that it can reflect and represent our main business essence thoroughly. We chose Kwek- kwek, a Pinoy street food, in our logo for the reason that it emerged as the most popular and in-demand street foods based on our conducted survey. Also this street food served as the trademark of most of the Filipinos because it captures their taste preference. K8 is an acronym that stands for Kalye Ocho which is the name of our business. We came up with the colours Green and Orange as the primary colours of our logo, Orange that symbolizes deliciousness and Green that represents clean and nutritious street foods we cater. E. Brief description of the 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, sa voury and be complemented to other dishes. Our 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 customer s 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. F. General Objectives of the Business a) to be able to change the perception of people regarding safety and cleanliness of street foods, b) to increase the level of awareness of customers on the different ways that the street foods can be introduced from a simple and ordinary recipes to a nutritious, stylish and savoury dishes or cuisine, c) to line up with other competitors using our unique approach in catering street foods, d) to offer an affordable but delicious and a satisfying street foods. Polytechnic University of the Philippines 3
    • FEASIBILITY STUDIES   KALYE OCHO G. Research and Methodology The proponents used different techniques in gathering information to support the study. G.1. Survey The proponents conducted survey among 358 respondents to get their opinion regarding street foods business. These 398 respondents were come from the present total population of Paranaque City and the proponents used the Sloven s formula. The survey was distributed among all the teenagers  residents of Paranaque City. It was used so that the proponents would be able to know the respondent s perception and preference regarding to their proposed business. G.2. Sloven s Formula The group used the Sloven s Formula to determine the needed number of respondents. Formula: n= N 1+Ne2 . Where: N = the number of people who qualify in the area of study e = margin of error which is 5% n = number of needed respondents Solution: N= 178,129 . = 399.10 1+ (178,129) (.05)2 Polytechnic University of the Philippines 4
    • FEASIBILITY STUDIES   KALYE OCHO G.3. Sampling Techniques The researchers used the random sampling to gather information from the target market. Surveys and interviews are conducted to further the people s demand regarding street food products by using a specific number of persons or respondents from different barangays within the locality. The group based the respondents from 0.23% of the total population in the area covered by the study. G.4. Survey Questionnaire In order to have an access on the pertinent information and gather important data about customer s taste and preferences when it comes to street food products, the researchers agreed to use Questionnaires. In this process, we find it very easy and reliable. The researchers used the checklist format. Questions are made for the researchers to get their personal choice when it comes to street foods. By these questions, the researchers will be able to determine the demand of the product. The group provided 399 survey questionnaires which are all in English language. G.5. Interview The proponents interviewed relevant people in order to answer questions in addition to the information gathered by survey questionnaire. We interviewed managers of some establishments at SM Bicutan to determine the rental payments and the possible layout of the store offered by the management. G.6. Research The proponents used the information from different libraries and surf the internet as source of their research in order for them to gather information about the business, the location of the mall, and other information that can help the study. Polytechnic University of the Philippines 5
    • FEASIBILITY STUDIES   KALYE OCHO G.7. Mapping Figure 4 Parañaque City Map The study covered the whole city of Parañaque as the target market of the study as shown in Figure 4. The city is subdivided into sixteen (16) Barangays with two (2) districts. District II and I are composed of eight (8) Barangays each. The first district comprises of Barangays Baclaran, Tambo, Don Galo, and Sto. Niño, La Huerta, San Dionisio, Vitalez, and San Isidro while the second district consist of Barangays BF, San Antonio, Merville, Moonwalk, and San Martin de Porres, Sun Valley, Marcelo Green, and Don Bosco where the establishment of SM Bicutan is located. Polytechnic University of the Philippines 6
    • FEASIBILITY STUDIES   KALYE OCHO G.8. Search of Internet, Books and Libraries The proponents used the information from different libraries and surf the internet as source of their research i n order for them to gather information about the business, the location of the mall, and other information that can help the study. Food is a basic necessity. The industry which deals with preparing food items/products refers to the food service industry. The food service industry is and will always remain in high demand because of its genre. These industries include restaurants, fast foods, school and hospital cafeterias, catering operations, food carts and food trucks etc. Restaurants and fast foods mainly contribute to the food service industry.  Fast food  generally refers to the type of restaurants that sell quick, inexpensive take-out food. During a relatively brief period of time, the fast food industry has helped to transform not only diet, but also landscape, economy, workforce, and popular culture. The extraordinary growth of the fast food industry has been obsessed by fundamental changes in society. The whole experience of buying fast food has become so habitual, that it is now taken for granted, like brushing your teeth or stopping for a red light. Restaurants and fast foods are meant for same services except that restaurants offer a large menu including a variety of cuisines as compared to fast foods, which usually offers a small menu with quick service. Another difference between a restaurant and fast food is, restaurants offer meals that are cooked and prepared and is eaten at the premises while fast food usually is pre-cooked meals or serves meals that are cooked easily. Diners may eat it inside the store or they can order their food  to-go . In fast foods you usually pay before eating unlike full service restaurants. Polytechnic University of the Philippines 7
    • FEASIBILITY STUDIES   KALYE OCHO Like every other country, the food industry has flourished very well in Philippines. Filipinos love to eat and that s 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, Friday s, Chili s and a lot more. 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. (http://manilareviews.com/2010/07/food-service-industry-philippines.html) Polytechnic University of the Philippines 8
    • FEASIBILITY STUDIES   KALYE OCHO H. Project Summary H.1. Market Summary The market projection of this business is based on the surveys conducted and other related information gathered within the vicinity of Paranaque. Projection of demand, supply, and sales for the first five years of operation is based on the different factors like the population growth, market acceptability, capacity to supply and other factors. This study is feasible because our target population are willing and capable of availing our products and services. We also consider factors like our competitors and prevailing prices of the suppliers that will affect our prices. Based on our demand supply analysis we found out that we can supply the available market based on our production capacity. H.2. Technical Summary The products that we are going to offer are street foods with high demand and nutritious for our customer. Our products are kwek-kwek, fishball, isaw, adidas, pork barbeque, chicken skin, balot and calamares, we also offer other products that will complement to our products sush as desserts (halo-halo, sorbets,mais con yelo and banana con yelo) French fries and drinks (sago t gulaman, iced tea and pineapple juice). Machineries and equipment were enumerated as well as other supplies with their corresponding cost. The project is feasible based on the different aspect that we consider in operating this business. H.3. Management Summary Kalye Ocho is a partnership form of business ownership which will handle the management of the business. 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 of 11 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. Polytechnic University of the Philippines 9
    • FEASIBILITY STUDIES   KALYE OCHO H.4. Financial Summary The initial investment of Kalye Ocho is P 4,000,000.00 which came from the partner s contribution to establish this business. There are no other sources of capital aside from our contribution. The return of asset will be .15 at first year and the payback period will be exactly 2.83. Therefore, our financial study is feasible. I. Operational Terms Kwek-kwek   Boiled chicken or quail eggs dipped in a flour-and-egg batter then fried Isaw   Barbecued chicken intestines on a skewer Balut   A popular Filipino street snack and is essentially a duck egg with a fetus inside Fish Ball   Balls formed from flaked fish or squid mixed with flour, deep fried Calamares   Flour-coated squid rings Chicken Skin   Deep-fried chicken skin breaded with flour Adidas   Grilled chicken feet Pork Barbeque   Skewered pork strips marinated in soy sauce and calamansi and grilled Frying   To cook in a hot vegetable oil in a shallow open pan Grilling   To broil the on an electric griller with a great heat Soda   Soft serving of drinks and desserts Packing   The process of assembling the foods in its container Dishwashing   To clean the tablewares and utensils by washing it using a dishwashing liquid and water Polytechnic University of the Philippines 10
    • FEASIBILITY STUDIES   KALYE OCHO J. Scope and Limitation The study will tackle the feasibility of a street food restaurant business that is located at the mall, also the acceptance of the present and potential customers, on how well they will respond to these foods served in restaurants that are usually found in the streets. The respondents are those only who belong to the age bracket 10-24 years old, teenagers, male and female who are residents of Paranaque City. The competitors that the firm will consider are those fast food restaurants which are located within the vicinity of Paranaque City. Polytechnic University of the Philippines 11
    • FEASIBILITY STUDIES   KALYE OCHO CHAPTER II MARKET STUDY 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 customer s loyalty and patronage. This aspect includes the following topics: demands, supply, demand and supply gap analysis, marketing programs and the projected sales. The objective of the proposed project is to delight the customers, not just by meeting their expectation but rather exceeding and going extra mile. Moreover, it s about profita bility. 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 business. Knowing customer s demand and supplying them right products at reasonable prices. Objectives a. to analyze the market demand and supply of the business , b. to define the target customer of the business through market segmentation, c. to determine the marketing strategies to be applied in the business, d. to determine the feasibility of the business , e. to determine the range of the business, f. to analyze and understand the complexities of the restaurant business. Polytechnic University of the Philippines 12
    • FEASIBILITY STUDIES   KALYE OCHO A. Demand It is very essential to know the demand of our products in order to answer our customer needs and wants. Knowing the demand will help us to determine the trend for our products. Analyzing the demand thoroughly will give the projection of the total number of quantity of each product that we are going to produce daily, weekly, monthly and annually. A.1. Past Demand A.1.1. For the Industry Since there is no statistical data recorded in NSO and DTI regarding the demand for streetfoods, past demand is computed by getting the target population in Parañaque City for the year 2006   2010 multiplied by market acceptability which is obtained by getting the percentage of respondents who are willing to eat streetfoods in a kiosk with 83.46% and multiplied to the frequency of agreement or the times the customers avail the products annually. It increases annually based on the annual growth of population of Parañaque City by 2.94% and based on the percentage of every products on the survey, we distributed the annual past demand to get the past demand for every products. Year M.A. Target Population F.O.A. Annual Demand 2006 2007 2008 2009 2010 83.46 83.46 83.46 83.46 83.46 159,344 164,029 168,851 173,819 178,929 Table 1 Past Demand for the Industry 75 75 75 75 75 11,529,309 11,868,261 12,217,166 12,576,336 12,946,023 Past demand for industry or the whole streetfoods is computed by getting the target market population times the frequency of agreement. It increases annually based on the annual growth of population of Parañaque City by 2.94% Polytechnic University of the Philippines 13
    • FEASIBILITY STUDIES   KALYE OCHO A.1.2. for Every Product Since we determined already the computation for the industry, past demand for every streetfoods that the respondents usually eat are computed to the percentage of each products answered by the respondents multiplied to the annual past demand of industry. Street Foods Balut (4.51) Year 2006 2007 2008 2009 2010 Total Street Foods Calamares (14.04) Year 2006 2007 2008 2009 2010 Total 402,955 414,803 426,997 439,560 452,482 2,136,797 2,349,907 2,418,998 2,490,110 2,563,375 2,638,734 12,461,124 2,323,974 2,392,303 2,462,630 2,535,068 2,609,614 9,860,959 Table 2 Past Demand for the Products 9,974,138 10,267,395 10,569,228 10,880,199 11,200,060 52,891,020 Kwek-kwek (23.56) Pork Barbeque (23.30) Total 449,834 463,060 476,672 490,697 505,123 2,385,386 399,963 411,723 423,826 436,296 436,296 449,122 700,184 720,771 741,960 763,719 786,244 3,712,949 1,574,916 1,621,222 1,668,881 1,717,983 1,768,489 8,351,491 774,991 797,777 821,229 845,391 870,245 4,109,633 Adidas (4.01) Chicken Skin (7.02) Fishball (15.79) Isaw (7.77) Polytechnic University of the Philippines 14
    • FEASIBILITY STUDIES   KALYE OCHO A.2. Projected Demand A.2.1. For the Industry The annual increase of demand for the years 2011   2015 is based on the annual population growth rate from 2006   2010 by 2.94%. The annual projected demand was obtained by multiplying the market acceptability which is 83.43 to target population and to the frequency of agreement. Based from the obtained demand, it was distributed again to every product in order to determine its demand. The projected demand for industry in 2011   2015 is as follows: Year 2011 2012 2013 2014 2015 M.A. 83.46 83.46 83.46 83.46 83.46 Target Population 184,189 189,604 195,178 200,916 206,822 Table 3 F.O.A. 75 75 75 75 75 Annual Demand 11,529,309 11,868,261 12,217,166 12,576,336 12,946,023 Projected Demand for the Industry A.2.2. For the Products It is computed by multiplying the projected annual demand of industry to the percentage of each product based on the survey. Projected Demand Street Foods Balut (4.51) Year 2011 2012 2013 2014 2015 Total 519,972 535,259 550,994 567,193 583,866 2,757,284 462,325 475,917 489,908 504,311 519,136 4,451,597 809,357 833,152 857,645 882,859 908,811 4,291,824 1,820,478 1,873,998 1,929,090 1,985,803 2,044,177 9,653,546 895,827 922,164 949,271 977,181 1,005,906 4,750,349 Adidas (4.01) Chicken Skin (7.02) Fishball (15.79) Isaw (7.77) Polytechnic University of the Philippines 15
    • FEASIBILITY STUDIES   KALYE OCHO Street Foods Calamares (14.04) Year 2011 2012 2013 2014 2015 Total 1,618,715 1,666,304 1,715,290 1,765,718 1,817,622 8,583,649 2,716,305 2,796,162 2,878,364 2,962,985 3,050,083 14,403,899 Table 4 Projected Demand for the Products 2,686,329 2,765,305 2,846,600 2,930,286 3,016,423 14,244,943 11,529,309 11,868,261 12,217,166 12,576,336 12,946,023 61,137,095 Kwek-kwek (23.56) Pork Barbeque (23.30) Total A.3. Market Segmentation A.3.1. Geographic : SM Bicutan : Wet & Dry : Don Bosco : NCR : Paranaque City : Urban  Location  Climate  Barangay  Region  City  Density of the Area A.3.2.  Age  Gender A.3.3. Psychographic : Curious : Outgoing, Adventurous  Personality  Lifestyle Demographic : 10-24 years old : Male & Female Polytechnic University of the Philippines 16
    • FEASIBILITY STUDIES   KALYE OCHO B. Supply Based on the percentage of the population who already availed street foods from our survey questionnaire, we determined our past supply. B.1. Past Supply It was multiplied from the percentage of purchases which is 79.70%to the target population and to the frequency of agreement. The increase in supply was also based in the growth rate of population. It was also distributed per product to know the past supply. B.1.1. For the Industry Year Percentage of Purchases 79.70 79.70 79.70 79.70 79.70 Target Population 159,344 164,029 168,851 173,819 178,929 Table 5 Past Supply for the Industry B.1.2. For Every Products F.O.A Annual Past Supply 9,524,788 9,804,833 10,315,192 10,390,031 10,695,481 2006 2007 2008 2009 2010 75 75 75 75 75 Street Foods Balut Adidas Chicken Skin Fishball Isaw Year 2006 2007 2008 2009 2010 Total 429,568 442,198 465,215 468,590 482,366 2,287,937 381,944 393,174 413,639 416,640 428,888 2,034,285 668,640 688,299 724,126 729,380 750,823 3,561,268 1,503,964 1,548,183 1,628,769 1,640,586 1,688,816 8,010,318 740,076 761,836 801,490 807,305 831,039 3,941,746 Polytechnic University of the Philippines 17
    • FEASIBILITY STUDIES   KALYE OCHO Street Foods Calamares Kwek-kwek Pork Barbeque Total Year 2006 2007 2008 2009 2010 Total 1,337,280 1,376,599 1,448,253 1,458,760 1,501,646 7,122,538 2,244,040 2,310,019 2,430,259 2,447,891 2,519,855 11,952,064 Table 6 Past Supply for the Products 2,219,276 2,284,526 2,403,439 2,420,877 2,492,047 11,820,165 9,524,788 9,804,833 10,315,192 10,390,031 10,695,481 50,730,321 B.2. Projected Supply The projected supply will help to determine the total satisfied market or the total number of customers who availed street foods for five years. It was obtained by percentage of purchases to the target population with 2.94% growth rate to the frequency of agreement and it was distributed per product to determine the total satisfied market for every product. B.2.1. For the Industry Computation of projected supply for product is the same in past supply per product. It changed only in the target population based on the annual growth rate of 2.94% Polytechnic University of the Philippines 18
    • FEASIBILITY STUDIES   KALYE OCHO Year Percentage of Purchases 79.70 79.70 79.70 79.70 79.70 Target Population 184,189 189,604 195,178 200,916 206,822 Table 7 F.O.A Annual Past Supply 11,009,897 11,333,578 11,666,764 12,009,753 12,361,470 2011 2012 2013 2014 2015 75 75 75 75 75 Projected Supply for the Industry B.2.2 For the Products Street Foods Balut Adidas Chicken Skin Fishball Isaw Year 2011 2012 2013 2014 2015 Total 496,546 511,144 526,171 541,640 557,502 2,633,003 441,497 454,476 467,837 481,591 495,695 2,341,096 772,895 795,617 819,007 843,085 867,775 4,098,379 1,738,463 1,789,571 1,842,182 1,896,340 1,951,876 9,218,432 855,469 880,619 906,508 933,158 960,486 4,536,240 Polytechnic University of the Philippines 19
    • FEASIBILITY STUDIES   KALYE OCHO Street Foods Calamares Kwek-kwek Pork Barbeque Total Supply Year 2011 2012 2013 2014 2015 Total 1,545,790 1,591,234 1,638,014 1,686,169 1,735,550 8,196,757 2,593,932 2,670,191 2,748,690 2,829,498 2,912,362 13,754,673 2,565,306 2,640,724 2,718,356, 2,798,272 2,880,223 13,602,881 11,009,897 11,333,576 11,666,765 12,009,753 12,361,470 58,381,461 Table 8 Projected Supply for the Products B.3. Competitors Analysis The following are the competitors of the business:  Mang Inasal(1)   Filipino type of restaurant catering chicken and pork barbeque as their main products.  Zonyda(1)   Food stall located in hypermarket. It caters products like fishballs, kikiam, palamig, etc.  Merienda Meal (SM Food Court) (1)   It caters kwek-kwek as well as pork barbeque.  Streetfoods vendors (10) - There are lot of street vendors offering the same products that we cater such as chicken skin, kwek-kwek, isaw, pork barbeque, balut, fishball, adidas, and calamares. Polytechnic University of the Philippines 20
    • FEASIBILITY STUDIES   KALYE OCHO Zonyda Mang Inasal Merienda Meals Outside Vendors Total serving/ day Annual Supply/ pc 1,467,300 229,220 773,800 In person Products Fishball Adidas Chicken Skin Balut Pork Barbeque Kwek-kwek Calamares Isaw Total 250 4680 1130 610 117 25 32 240 380 400 3620 314 2120 4020 628 2120 146,730 114,610 128,966 265 529 96,725 193,085 96,725 193,085 4930 1130 610 14,232 1,799,450 412,450 222,650 5,680,914 , 449,862 137,483 111,325 1,378,786 Table 9 Competitors Products Analysis C. Demand Supply Gap Analysis This is necessary to determine Kalye Ocho s market share. The gap or the unsatisfied market is obtained by subtracting the projected demand to the projected supply which shows the available market for street foods. It also shows the number of persons whom we need to supply to answer their demand for street foods. We now show the gap for every product using the data from projected demand and projected supply. Table 10 will show the demand, supply and gap per product as well as the overall total. Polytechnic University of the Philippines 21
    • FEASIBILITY STUDIES   KALYE OCHO Year 2011 2012 2013 2014 2015 Demand 11,529,309 11,868,261 12,217,166 12,576,336 12,946,023 Supply 11,009,897 11,333,576 11,666,765 12,009,753 12,361,470 Gap 519,412 534,683 550,402 566,583 584,553 Street Balut Foods Demand Supply Gap Adidas Demand Supply Gap Year 2011 2012 2013 2014 2015 Total 519,972 535,259 550,994 567,193 583,866 2,757,284 496,546 511,144 526,171 541,640 557,502 2,633,003 23,426 24,115 24,823 25,553 26,364 124,282 462,325 475,917 489,908 504,311 519,136 4,451,597 441,497 454,476 467,837 481,591 495,695 2,341,096 20,828 21,441 22,071 22,720 23,441 110,501 Street Chicken Skin Foods Demand Supply Gap Fishball Demand Supply Gap Year 2011 2012 2013 2014 2015 Total 809,357 833,152 857,645 882,859 908,811 4,291,824 772,895 795,617 819,007 843,085 867,775 4,098,379 36,462 37,535 38,638 39,774 41,036 193,445 1,820,478 1,873,998 1,929,090 1,985,803 2,044,177 9,653,546 1,738,463 1,789,571 1,842,182 1,896,340 1,951,876 9,218,432 82,015 84,427 86,908 89,463 92,301 435,114 Polytechnic University of the Philippines 22
    • FEASIBILITY STUDIES   KALYE OCHO Street Isaw Foods Demand Supply Gap Calamares Demand Supply Gap Year 2011 2012 2013 2014 2015 Total Street Foods 895,827 922,164 949,271 977,181 1,005,906 4,750,349 Kwek-kwek Demand Supply Gap 855,469 880,619 906,508 933,158 960,486 4,536,240 40,358 41,545 42,763 44,023 45,420 214,109 1,618,715 1,666,304 1,715,290 1,765,718 1,817,622 8,583,649 1,545,790 1,591,234 1,638,014 1,686,169 1,735,550 8,196,757 72,925 75,070 77,276 79,549 82,072 386,892 Pork Barbeque Demand Supply Gap Year 2011 2012 2013 2014 2015 Total 2,716,305 2,796,162 2,878,364 2,962,985 3,050,083 14,403,899 2,593,932 2,670,191 2,748,690 2,829,498 2,912,362 13,754,673 122,373 125,971 129,674 133,487 137,721 649226 2,686,329 2,765,305 2,846,600 2,930,286 3,016,423 14,244,943 2,565,306 2,640,724 2,718,356, 2,798,272 2,880,223 121,023 124,581 128,244 132,014 136,200 13,602,881 642062 Table 10 Demand Supply Gap Analysis D. Market Share Analysis Every business must determine their market share that will serve as basis of marketing strategies of the establishment. It will define the extent of market that we need to satisfy. Out of the total available market which is 4.72%, we made our capacity to supply based in our resources. We have 1 counter, 1 POS, 4 burners, and each product requires 12 minutes of preparation. Our store hours are just based to mall hours. And we Polytechnic University of the Philippines 23
    • FEASIBILITY STUDIES   KALYE OCHO got 220 persons as our capacity to supply per day and annually it is 80,300 which is 15.46% of the total available market as shown in the graph. Therefore market share is computed by dividing the capacity to supply to the available market. They all increase by 5% every year because of the promotional tactics provided by the business. Market Share of Kalye Ocho, 2011   2015 Street Foods Balut Adidas Chicken Skin Fishball Isaw Year 2011 2012 2013 2014 2015 Total 9,531 9,811 10,099 10,396 10,702 50,539 Street Foods Calamares Kwek-kwek Pork Barbeque Total 8,474 8,723 8,980 9,244 9,515 44,936 14,835 15,271 15,720 16,182 16,658 78,666 33,368 34,349 35,359 36,399 37,469 176,944 16,420 16,903 17,400 17,911 18,438 87,072 Year 2011 2012 2013 2014 2015 Total 29,670 30,542 31,440 32,365 33,316 157,333 49,788 51,252 52,759 54,310 55,906 264,015 Table 11 Market Shares of Kalye Ocho 49,239 50,687 52,177 53,711 58,289 264,103 211,325 217,538 223,934 230,518 240,293 1,123,608 Polytechnic University of the Philippines 24
    • FEASIBILITY STUDIES   KALYE OCHO Year 2011 2012 2013 2014 2015 Projected Growth 5% 5% 5% 5% 5% Market Share 15.46% 16.23% 17.04% 17.89% 18.78% Note: Capacity to supply annually: 80,300 persons Increase: 5% Table 12 Projected Market Share D.1. Projected Sales Projected sales where obtained by multiplying the price for solo meals and combo meals to our total servings per products. Our sales will increase by 5% based on our market share. Year 2011 2012 2013 2014 2015 Growth Rate --5% 5% 5% 5% Annual Sales 6,663,960 6,997,158 7,317,016 7,714,367 8,100,085 Table 13 Projected Sales Monthly 555,330 583,096.50 609,751.31 642,863.91 675,007.08 Daily 18,511 19,436.55 20,325.04 21,428.70 22,500.24 Figure 5 Breakdown of Markets Polytechnic University of the Philippines 25
    • FEASIBILITY STUDIES   KALYE OCHO E. Marketing Strategies E.1. Product Strategies Youth of today are fond of eating street foods. This will serve as the competitive advantage of of our business enable to penetrate to the market. The products of Kalye Ocho are as follow; Balut (4.51%), Adidas (4.01%), Chicken skin (7.02%), Fishball (15.79%), Isaw (7.77%), Calamares (14.04%), Kwek-kwek (23.56%) and Pork Barbeque (23.30%). 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. Kalye Ocho wants 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. E.2. Place Strategies Kalye Ocho will be located in the lower ground of SM Bicutan. Sm Bicutan is considered to be a strategic location for a business because it lies in the intersection of Parañaque and Taguig City. Though our scope is within Parañaque City there s a possibility that people from Taguig City can also be our customers. Different high schools and universities such as AICS, DASNHS, PUPT, GCA , Goal Montessori etc. are all near SMBicutan. The location of the business will be accessible enough to meet the needs of our target market. Moreover, the place is also near Bicutan Market, People s Market and other super markets where we can have easy access regarding the raw materials that we will be needed in regular operations and even on emergency operation. E.3. Pricing Strategies We used cost plus strategy in order to set the price of our products. The computation would be: Purchase Cost + Operating Cost+ mark-up=Selling Cost Polytechnic University of the Philippines 26
    • FEASIBILITY STUDIES   KALYE OCHO E.4. Promotion Based on the responses on the survey, posters (32.58%), website (31.08%) and flyers (25.31%) are the top three advertising tools that our customers want us to use enable to reach them. E.4.1. Poster Posters will be placed in our store. The design of the poster can able to catch the 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. Two (2) posters will be produced which are good for three (3) months. The computation would be: No. of pcs X Unit Price X No. of times per month 2 X 150 X 1 = Php. 300.00 Figure 6 Kalye Ocho Poster Polytechnic University of the Philippines 27
    • FEASIBILITY STUDIES   KALYE OCHO E.4.2. Website We are now living in the modern world and surfing to the internet is one of the easiest ways to have quick access. The proponents will be using free website in order to reach wider range of possible customers. This will be of great help for them to know the concept behind Kalye Ocho. It will also provide good communication relations hip in ways that, we will be giving information and they will be giving comments and suggestions for product improvements and other concerns. Figure 7 Kalye Ocho Unofficial Website www.wix.com/KalyeOcho/StreetfoodRestaurant Polytechnic University of the Philippines 28
    • FEASIBILITY STUDIES   KALYE OCHO E.4.3. Flyers Flyers can convey wide range of possible buyers for it can be brought to other places. The store will produce 200 flyers per day. These flyers will be distributed twice a week or eight (8) times in a month. Flyers will be given in the first three (3) months of the business until it will get its loyal customers The computation would be: No. of Pcs. X Unit Price X No. of times per month 200 X 8 Front X 8 = Php.12,800 Back Figure 8 Kalye Ocho Flyer Polytechnic University of the Philippines 29
    • FEASIBILITY STUDIES   KALYE OCHO E.4.4. Gift Certificate Our store will be giving gift certificates worth fifty pesos (50.00) on the first day of operation of our business. The recipients of these certificates will be the first 100 customers of our store. F. SWOT Analysis Strengths  The location of the business is accessible enough to meet our target market.  The business will easily catch the interest of the customers for Filipinos are fond  The restaurant has its unique characteristics in terms of foods being offered and other features being presented  Kalye Ocho will provide alternative foods for those who want to be a spend thrift  It provides modern communication tools including print ads and website that will enable to build a connection between the business and the customers Weaknesses  The perception of some that street foods are unhealthy and unsafe  Maintenance of special features of the store is quite costly. Opportunies  Street foods are not normally presented in a typical restaurant and this will serve as an opportunity for the proponents to give a different impact or approach regarding the kinds of food we cater through safety and quality assurance  The business would be the first restaurant that caters street foods in the location being chosen(SM Bicutan) Threats  Well-known restaurants within the same vicinity will be the great competitors of the business.  The business will be new in the market, it may easily have good market standing but it may encounter difficulty in terms of sustaining demand of the customers that may lead to its saturation point or declining stage. Polytechnic University of the Philippines 30
    • FEASIBILITY STUDIES   KALYE OCHO CHAPTER III TECHNICAL STUDY 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 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. Prior to projecting technical feasibility, the technical requirements of the project must be analyzed. This may be done by: A. Stating:  The quantity and quality of products to be produced  The specification of raw materials  The supplies to be used  The labor needed  The utilities needed  The waste disposal methods  Transportation necessary  Plant location  Plant size and layout  Machinery and equipments  Production schedule  Manufacturing process B. Providing estimates of total project cost and enumerating the major items of capital cost. C. Listing down in detail estimated production cost and overhead cost that will go into the operating of the proposed plan. D. Taking into consideration any majo r technological development in the industry which may affect the commercial or technical soundness of the project. Once the technical Polytechnic University of the Philippines 31
    • FEASIBILITY STUDIES   KALYE OCHO requirements have been prepared, the project proponent is ready to analyze technical feasibility. Objectives a. to identify the kind of service and variety of products the proposed business have including its description and procedure , b. to determine the process to be used in obtaining the products and how to distribute or deliver it to the market, c. to describe the geographical location of the business, d. to illustrate the store size and store layout of the business, e. to determine the supplies needed and all necessary machineries and equipments to be used in the operation of the business, f. to determine where to acquire the supplies a nd necessary utilities for the operation of the business, g. to define the human requirements and regulations of the business, h. to know the methods of waste disposal for the maintenance of the store. A. Product Description Kalye Ocho s products are the top eight most in demand street foods in the Philippines. Based on the survey, majority of the respondents which is 37.09 % answered that they are aware regarding the safety and cleanliness of street foods. The image of these products is unhygienic because it is exposed on the different hazards especially physical hazards on the streets. The proponents 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. Polytechnic University of the Philippines 32
    • FEASIBILITY STUDIES   KALYE OCHO Figure 9 Our Products Polytechnic University of the Philippines 33
    • FEASIBILITY STUDIES   KALYE OCHO Our products consist of different foods, drinks, side dishes, and desserts making a complete meal. Our main foods are streetfoods 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 Kalye Ocho are Pineapple Juice, Iced Tea and Sago t gulaman in 16oz. The desserts included are Halo -halo, Saging Con Yelo, Mais Con Yelo and Sorbetes which is available in 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. A.1. Product Pricing Streetfoods Kwek-kwek Calamares Barbeque Fishballs Chicken Adidas 18 35 Balut Solo Orders Combo Meals 18 35 25 42 18 39 15 35 22 42 15 39 Drinks Pineapple Juice Solo Order 18 Iced tea 18 Sago t Gulaman 18 Desserts and Side Dish Halo-halo Saging Con Yelo Solo Order 42 25 Mais Con Yelo 25 15 Sorbetes Polytechnic University of the Philippines Pork 20 42 Isaw Skin 34
    • FEASIBILITY STUDIES   KALYE OCHO A.2. Product Preparation Guide A.2.1. Streetfoods Figure 10 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 Cooking procedure: 1. Wash the Chicken feet and cut the claws and trim off the hardened unwanted spot then nib the chicken feet with salt to clean it thoroughly then rinse it finally scald the chicken feet in hot boiled water for 5 minutes. 2. Put it in a tap water then remove the unwanted skin o f chicken feet. 3. Sauté the Chicken feet in onions, soy sauce, pepper and vinegar. Polytechnic University of the Philippines 35
    • FEASIBILITY STUDIES   KALYE OCHO Figure 11 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 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. 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. Polytechnic University of the Philippines 36
    • FEASIBILITY STUDIES   KALYE OCHO Figure 12 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 Cooking procedure: 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 paper towels. Polytechnic University of the Philippines 37
    • FEASIBILITY STUDIES   KALYE OCHO Figure 13 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 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 Polytechnic University of the Philippines 38
    • FEASIBILITY STUDIES   KALYE OCHO Figure 14 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 tbsp anatto powder (pinulbos na atsuete) 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. 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. Polytechnic University of the Philippines 39
    • FEASIBILITY STUDIES   KALYE OCHO Figure 15 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). 7. Grill the intestine while basting with the mixture of cooking oil, banana catsup, and soy sauce. Polytechnic University of the Philippines 40
    • FEASIBILITY STUDIES   KALYE OCHO Figure 16 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 tbsp anatto powder (pinulbos na atsuete) 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. 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. Polytechnic University of the Philippines 41
    • FEASIBILITY STUDIES   KALYE OCHO Figure 17 Pork Barbeque 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. 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 basting sauce. Polytechnic University of the Philippines 42
    • FEASIBILITY STUDIES   KALYE OCHO A.2.2. Drinks Figure 18 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. Polytechnic University of the Philippines 43
    • FEASIBILITY STUDIES   KALYE OCHO Figure 19 Pineapple Juice Ingredients: (per serving) 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. Polytechnic University of the Philippines 44
    • FEASIBILITY STUDIES   KALYE OCHO Figure 20 Sago t Gulaman 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 tall glass. 2. Add 1 tablespoon of Vanilla and 3 tablespoon of syrup or more according to taste and mix it well. 3. Add 2-3 ice cubes Polytechnic University of the Philippines 45
    • FEASIBILITY STUDIES   KALYE OCHO A.2.3. Desserts Figure 21 Halo-halo Ingredients: (per serving) 1tablespoon: Pinipig Beans Langka Kaong 1 cup crushed ice ¼ cup evaporated milk 2 scoop ice cream (Ube and Cheese) Leche Flan Serving procedure: 1. 2. 3. 4. 5. Combine the first eight ingredients. Add sugar. Filled with crushed ice. Put evaporated milk. Top with two scoops of ice cream and leche flan. Nata Ube Macapuno Sugar Polytechnic University of the Philippines 46
    • FEASIBILITY STUDIES   KALYE OCHO Figure 22 Mais Con Yelo Ingredients: (per serving) ½ cup corn 1 cup ice 3 tablespoon cornflakes ¼ cup milk 1 tablespoon sugar Serving procedure: 1. 2. 3. 4. Put corn inside the glass. Add shaved ice and milk. Put another layer of corn. Sprinkle with corn flakes. Polytechnic University of the Philippines 47
    • FEASIBILITY STUDIES   KALYE OCHO Figure 23 Saging Con Yelo Ingredients: (per serving) 2pcs saba 1 tablespoon brown sugar 1 teaspoon banana essence 1 cup ice ¼ cup evaporated milk Serving procedure: 1. Cut the saba into ½ 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 the bowl. Polytechnic University of the Philippines 48
    • FEASIBILITY STUDIES   KALYE OCHO Figure 24 Sorbetes Ingredients: Selecta Ice Cream Cone (sweet cone or ordinary cone) Serving: 3 scoop of ice cream in a cone Polytechnic University of the Philippines 49
    • FEASIBILITY STUDIES   KALYE OCHO A.3. 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) B. Business Process The Kalye Ocho Fast food restaurant will be open during mall hours from 10:00 am in the morning to 9:00 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 customer s orders to prepare the products being sold on that time. Then there is a set process for every order on the menu. The customers will fall in line to the counter to give orders then the service crew will take the orders. C. Business Location D.1. Vicinity Map Figure 25 Vicinity of Paranaque Polytechnic University of the Philippines 50
    • FEASIBILITY STUDIES   KALYE OCHO D.2. Floor Plan Figure 26 Floor Plan Measurements The total area of our space in Sm Bicutan is measured 15 by 15 feet. The whole area is divided into two portions namely the production area and the counter area. The Production Area, where the foods are processed and stored is composed of:  Fry Area   where the Balut, Kwek-kwek, Chicken Skin, Fish Balls and Calamares are cooked.  Grill Area   where the Pork Barbeque, Isaw, and Adidas are grilled.  Soda Area   where the drinks and desserts are prepared  Packing Area   where the foods are arranged and packed.  Dishwashing Area   where the tablewares and kitchen utensils are cleaned.  Storage   where the supplies and raw materials are stored. Polytechnic University of the Philippines 51
    • FEASIBILITY STUDIES   KALYE OCHO The Counter Area, where the transactions are made is consisting of: Food Display, where the products are shown. One Point of Sale Machine (POS) Mini workspace for record keeping made up of office equipment like computer, telephone, etc. Figure 27 Floor Plan Details Polytechnic University of the Philippines 52
    • FEASIBILITY STUDIES   KALYE OCHO D. Machineries and Equipment Description Function Quantity Unit Cost Total Cost Used to input sales and keep the money safe 1 16,200 16,200 POS System Used to store and record data Computer Set 1 15,500 15,500 A secure space where money, val uables, records, and documents can be stored Vault 1 2,699.00 2,699.00 Polytechnic University of the Philippines 53
    • FEASIBILITY STUDIES   KALYE OCHO Description Function Quantity Unit Cost Total Cost For communication and business Telephone transaction purposes 1 500 500 Stores perishable goods and use for cooling purposes Freezer 1 10,245 10,245 A cooling apparatus use to reduce the rate of spoilage of foodstuffs Refrigerator 1 12,652 12,652 Used to grill barbeque, isaw, adidas etc. 1 1,250 1,250 Polytechnic University of the Philippines 54
    • FEASIBILITY STUDIES   KALYE OCHO Grill Description Function Quantity Unit Cost Total Cost A device used to crushed ice for cold food servings Ice Crusher 1 542 542 Sucks hot air out of the kitchen to create proper ventilation 1 620 620 Exhaust Fan Kitchen appliance designe d for the purpose of cooking food 2 3,868 3,868 Heavy Duty Burner Polytechnic University of the Philippines 55
    • FEASIBILITY STUDIES   KALYE OCHO Description Function Quantity Unit Cost Total Cost A measuring instrument for determining the weight or mass of an object 1 249.00 249.00 Weighing scale A kitchen appliance used for baking, broiling, roasting microwave oven and heating food 1 2,261.00 2,261.00 An apparatus used in mixing flour and other ingredients 758.00 1 758.00 Polytechnic University of the Philippines 56
    • FEASIBILITY STUDIES   KALYE OCHO Flour Mixer Description Function Quantity Unit Cost Total Cost A self-contained tabletop kitchen appliance for cooking rice 1 2,095.00 2,095.00 Rice Cooker A device containing a fan that hangs above the stove or cook top in the kitchen used to remove smoke, odors, heat, and steam from the air Range Hood 1 2,410.00 2,410.00 Polytechnic University of the Philippines 57
    • FEASIBILITY STUDIES   KALYE OCHO E. Utensils Description Function Quantity Unit Cost Cost A bowl- shaped kitchen utensil with holes in it Colander use for draining. 2 260.00 520.00 Used primarily to measure the volume of liquid or bulk solid cooking ingredients such as flour and sugar 2 54.00 108.00 Measuring Cup Used to grate foods into fine strips or crumbs 1 Grater 39.00 39.00 Polytechnic University of the Philippines 58
    • FEASIBILITY STUDIES   KALYE OCHO Description Function Quantity Unit Cost Cost A filter to retain larger pieces while small pieces and liquid pass Strainer through 2 40.00 80.00 A kitchen utensil design to fry, to sear, and to sautè and food Frying Pan 1 250.00 250.00 A kitchen utensil used as a surface on which to cut or slice things Chopping Board 2 89.00 178.00 Polytechnic University of the Philippines 59
    • FEASIBILITY STUDIES   KALYE OCHO Description Function Quantity Unit Cost Cost A kitchen tools used to cut different kinds of foods Kitchen Knives Set 1 100.00 100.00 A kitchen tool for handling food items on a grill 3 23.00 69.00 Tong Used in food preparation to measure, mix, stir and toss Spoon and Fork ingredients; primary utensil used for eating 3 dozen each 39.00 117.00 Polytechnic University of the Philippines 60
    • FEASIBILITY STUDIES   KALYE OCHO Description Function Quantity Unit Cost Cost A hard-held tool that is used for lifting, flipping or spreading Spatula substances 3 35.00 105.00 A round vessel that is open at the top; used chiefly for holding food or Bowl liquids 2 dozen 96.00 192.00 A broad, mainly flat vessel on which food is served Plate 3 dozen 144.00 432.00 Polytechnic University of the Philippines 61
    • FEASIBILITY STUDIES   KALYE OCHO Description Function Quantity Unit Cost Cost An open metal, ceramic, or plastic container with sloping sides, Basin typically used for holding water or washing 2 45.00 90.00 Food preparation utensil used to slice peeled, hardEgg Slicer boiled eggs quickly and evenly 1 39.75 39.75 Polytechnic University of the Philippines 62
    • FEASIBILITY STUDIES   KALYE OCHO Description Function Quantity Unit Cost Cost Used to hold water for drinking purposes 3 49.00 147.00 Pitcher Deep dish used both in the oven and as a serving vessel Casserole 2 360.00 720.00 Kitchen appliance used for deep-frying 2 450.00 900.00 Deep Fryer Polytechnic University of the Philippines 63
    • FEASIBILITY STUDIES   KALYE OCHO Description Function Quantity Unit Cost Cost It has sharp metal edges that cut perfectly round balls from even Ice Cream Scooper the hardest ice cream 2 30.00 60.00 F. Furniture and Fixtures Description Function Quantity Unit Cost Cost Generally comfortable and adjustable 1 type of chair that is designed for use at a desk in Office chair an office 300.00 600.00 For better ambiance 3 Fluorescent Light 325.00 975.00 Polytechnic University of the Philippines 64
    • FEASIBILITY STUDIES   KALYE OCHO Description Function Quantity Unit Cost Cost Built-in furniture installed in many kitchens for storage of food, cooking Kitchen Cabinet equipment, and often silverware and dishes for table service 1 2,460.00 2,460.00 G. Supplies G.1. Office Supplies Description Function Quantity Unit Cost Cost Used in writing important details or documents 3 Ballpen 5.00 15.00 Polytechnic University of the Philippines 65
    • FEASIBILITY STUDIES   KALYE OCHO Description Function Quantity Unit Cost Cost Used for computation 2 50.00 100.00 Calculator Used for recording and reference purposes Logbook 1 45.50 45.50 Used to compile files 1 Stapler 29.75 29.75 Used for stapler 3boxes 5.75 17.25 Staple wire Polytechnic University of the Philippines 66
    • FEASIBILITY STUDIES   KALYE OCHO Description Function Quantity Unit Cost Cost Used to provide receipt to the customers 5 32.00 160.00 Thermal paper Used for documentation purposes 1ream Bond paper 232.00 232.00 G.2. Sanitary Supplies Description Function Quantity Unit Cost Total Cost A piece of textile used to hold hot kitchen Pot Holder equipment like pots and pans 5 10.00 50.00 Polytechnic University of the Philippines 67
    • FEASIBILITY STUDIES   KALYE OCHO Description Function Quantity Unit Cost Cost Used to dry hands and for sanitation purposes Cleaning towel 5 10.00 50.00 Used to scrub plates and utensils. 12 8.00 96.00 Sponge and Scrub Used to clean plates and other utensils 2 Dishwashing Liquid 25.00 50.00 Polytechnic University of the Philippines 68
    • FEASIBILITY STUDIES   KALYE OCHO Description Function Quantity Unit Cost Cost Used to wipe wet floor Mop 1 95.00 95.00 Used to sweep the floor 1 45.00 45.00 Broom Used to collect dust and waste 1 Dust pan 45.00 45.00 Polytechnic University of the Philippines 69
    • FEASIBILITY STUDIES   KALYE OCHO Description Function Quantity Unit Cost Cost Disinfectant use to maintain the cleanliness of the hands before and after eating Hand Sanitizer 1 125.00 125.00 For sanitary purposes 8 24.00 192.00 Tissue paper Polytechnic University of the Philippines 70
    • FEASIBILITY STUDIES   KALYE OCHO H. Store Uniforms Figure 28 Uniforms for Male Crews Figure 29 Uniforms for Female Crews Polytechnic University of the Philippines 71
    • FEASIBILITY STUDIES   KALYE OCHO Figure 30 Uniforms for Male Store Managers Figure 31 Uniforms for Female Store Managers The uniforms will be worn during store hours. The uniform for employees costs P580 while the uniform for the store manager costs P700 both will be deducted from their own salaries. Polytechnic University of the Philippines 72
    • FEASIBILITY STUDIES   KALYE OCHO I. Utilities Requirements I.1.Electricity It is one of the primary utility requirements of a restaurant business. Kalye Ocho will greatly need this for its proper and smooth operations and for the busi ness to carry out their special features such as the videoke. This will also set the atmosphere of the restaurant for its proper lighting and ambience. The store electricity will be provided by the SM Bicutan management for it is included at their monthly rental payment of the restaurant. I.2. Water Supply As the restaurant executes its operations, it needs a good water supply in order for them to continuously do their job and tasks. A good water supply can able them to perform tasks such as cleansing the raw materials, as an ingredients to the dishes and cleansing of the kitchen utensils, machines, and equipment, and the overall store to ensure safety of the customers. Water Supply payment will also be provided by the SM Bicutan Management included in the monthly rental fee. I.3. Telecommunications Telecommunications is a form of communication that is said to be indespensible to the duration of a business of Kalye Ocho, as one of newest in the market, need these so called telecommunications in order to have a clear and proper negotiation with suppliers and especially with the customers regarding their feedbacks, suggestions, recommendation and other customer concerns that can might help and contribute to the business growth, development and profitability. I.4. LPG This is very essential to our business because all of our products require LPG for efficient production. This will be available in various dealers in Parañaque. Polytechnic University of the Philippines 73
    • FEASIBILITY STUDIES   KALYE OCHO J. Waste Disposal Method Our customers are always our priority. We would like to give them a one hundred percent satisfaction and the maintenance of cleanliness in all areas of our store is included in the customer requirements. So, Kalye Ocho encourages all the members of the organization especially we are in the food industry to strictly comply with the set of standards in cleanliness specifically with the proper disposal of waste. Kalye Ocho will provide two big trash bins in the kitchen area with cover and proper label for segregation will be observed to assure the safety on the preparation of our products. There will be one small trash bin in the counter area as well as in the office. And there will also two big trash bins in the dining area with cover and proper label for segregation for the dining crew to easily clean all the tables after our customer goes out. The accumulated garbage per day will be collected by the utility man of SM Supermalls. This kind of system will be continually observed in our day to day operation. K. Direct Labor Requirements People are considered to be the lifeblood of any business organization. They are very important for the business to operate effectively and efficiently. Kalye Ocho will need a full time employee. In our operation, we need a total number of manpower in our restaurant, nine (9) for opening shift and eleven (11) for the closing shift. They are the ones who will perform the functions of following positions: Manager Service Crew Kitchen Steward Total Number 1 2 8 11 Note: The five managers are the partners of the business. They are the ones who will perform the managerial and supervisory functions of the business. Polytechnic University of the Philippines 74
    • FEASIBILITY STUDIES   KALYE OCHO K.1. Work Schedule  Store Hours: 10:00am to 9:00pm  Hours of Operation: 13 hours of operation  21 Employees are needed in daily operation Legend:  RD = Rest Day  OP = Opening (9   3pm)  MS = Mid Shift (11   5pm)  CL = Closing (3   9pm)  BT (15mins) Employees Store Manager Grill 1 Grill 2 Bartender 1 Bartender 2 Fry 1 Fry 2 Fry 3 Fry 4 Cashier 1 Cashier 2 Total Mon OP-CL Tue RD Wed OP-CL Thu OP-CL Fri OP-CL Sat OP-CL Sun OP-CL RD OP-CL OP OP-CL RD OP-CL CL OP RD OP CL CL CL OP OP OP CL CL CL OP OP CL RD OP-CL OP CL OP CL RD OP CL CL RD OP 8 OP RD CL CL OP RD 6 OP CL RD CL OP CL 9 OP CL CL RD OP CL 10 OP OP CL CL OP OP 11 OP OP CL CL OP OP 11
    • OR OP CL CL OP OP 11 Table 14 Work Schedule Polytechnic University of the Philippines 75
    • FEASIBILITY STUDIES   KALYE OCHO CHAPTER IV MANAGEMENT STUDY 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 officers and key personnel, basic consideration in forming the organization, form of ownership, 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. Objectives: The study will cover different issues, actions and ideas on how the researchers will manage their business. The following objectives will clear what this all about. a) to determine the form of the proposed business, b) to analyze the organization and management aspect of the business , c) to introduce or present the exact capitalization of the business, d) to identify requirements and qualification, duties and responsibilities and salaries and benefits of the business manpower, e) to illustrate and clearly discuss the flow of authority and the policies that will serve as guide of the entire business. A. Form of Ownership The type of business is a partnership. It is to be registered with the Securities and Exchange Commission (SEC) for the contract called articles of co-partnership. By the contract of partnership, two or more persons bind themselves to contribute money, property and industry with the intension of dividing the profits among themselves. Kalye Ocho as partnership will be registered with the different government agencies as Securities and Exchange Commission (SEC), Department of Trade and Industry (DTI), Polytechnic University of the Philippines 76
    • FEASIBILITY STUDIES   KALYE OCHO Business Permit and Licensing Office of Paranaque (BPLO), Bureau of Internal Revenue (BIR) and Social Security System (SSS). The project will have its full blast after it has complied with all the necessary documents and technical requirements needed to operate and engage in this type of business. The preoperating capital for this business will be P800,000 each partners total of P4,000,000. B. Vision, Mission, Core Values B.1. Vision To be the first and the largest restaurant in the Philippines to cater street foods heading towards product innovation, quality management and 100% customer satisfaction. B.2. Mission We shall:  Commit ourselves in building customer loyalty and confidence by innovating and emphasizing the highest level of safety and quality in product management.  Cultivate resources to provide community services through employment and sponsorships.  Strictly implement the policy of observing the highest quality of standard to ensure the hazard-free environment. B.3. Core Values T   eamwork   Working out together to achieve common goal. E   xcellence   Giving our best in every situation we encounter. C   ustomer Service Oriented   Giving focus to our customers. H   ospitality   Providing friendly service. N   eutrality   Making every situation at its balance. O   rderliness  Systematic and organized procedures Polytechnic University of the Philippines 77
    • FEASIBILITY STUDIES   KALYE OCHO C. Capitalization Partners Type of Partner Capital Souces of Capital Mera Vernadeth Ricohermoso Industrialist-Capitalist 800,000 Cash Payments from Rentals and Personal Savings Loveleen Villanueva Industrialist-Capitalist 800,000 Retirement of Family Member and Personal Savings Rachel Almontero Alfie Acabo Jerald Angelo Juatco Industrialist-Capitalist Capitalist Capitalist 800,000 800,000 800,000 Personal Savings Sale of Land Cash from parents and Personal Savings D. Organizational Chart Figure 32 Organizational Chart Polytechnic University of the Philippines 78
    • FEASIBILITY STUDIES   KALYE OCHO Our business chose the functional type of organization. This is one of the most commonly used type of organizational structure which all activities in the firm are group together according to certain functions like production, marketing, service and administrative. This is the best structure that will fit to our over-all operation. This is quite complex but effective and efficient for every partners and employees of the organization since the work is divided into specialized functions. There is also a direct flow of authority but may associate or collaborate to other managers for the betterment of the business and there is also a mutual relationship between them. The specialists must be consulted before any decision is taken no matter relating to his specialized area. The managers can totally focus on his tasks and can perform managerial activities well. This type of structure can be applicable for a long time as long as it fits in the business since it offers a greater scope for expansion as compare to line type of organization. It does not face the problem of limited capabilities of a few line of managers facilitates better control and supervision in the business firm. Despite of the disadvantages of this type which are the confusion and conflict in roles and responsibilities, it still our choice for it can supervise a large number of subordinates while in line type, it can only supervise a limited number of subordinates and this is more efficient in accomplishing task and there is teamwork and cooperation of all members of the organization. We used it as our consideration in choosing our organizational structure is the size of our business. E. Manpower Requirements It is very vital in all business organization to know their manpower requirements to operate systematically and effectively at all times. It will help also to determine the capacity or capabilities of the employees to fit in the flow of business as well as to have a clear duties and responsibilities. Having standard qualifications in hiring and selecting, the employee will establish efficient business operations. Polytechnic University of the Philippines 79
    • FEASIBILITY STUDIES   KALYE OCHO Position Job Description Responsible for the Job Specification College graduate of as 4-year Management degree At least 2 years of managerial experience and has a higher degree of academic preparation With pleasing personality 24-25 years old, male or female Highly intelligent and ve4ry good in decision making Creative and imaginative Hardworking and good in handling people Good communicative skills Store Manager overall supervision of all other managers and subordinates. Responsible for the administration of all the management functions   planning, organizing, controlling and directing Handles the implementation of the policies, rules and regulations throughout the organization. Monitors the performance of his subordinates. Responsible for the overall ongoing production operations including inventory control, scheduling, documentation, equipment maintenance, calibration, shipping, and Quality Control/Food Safety Inspection Polytechnic University of the Philippines 80
    • FEASIBILITY STUDIES   KALYE OCHO Ensures the quality Kitchen Steward of products and all the food standards are met Responsible for the cleanliness of all the kitchen tools and equipments Ensures the maximum level of performance of the machines and equipments Minimizes the wastage of raw materials in production Responsible for the safety of food and elimination of hazardous elements College graduate of 4-year course in Accountancy or any related course At least 1 year working experience related in handling money 22-30 years old, male or female Good communication skills Computer literate, knowledge in accounting software is advantage Greet customers Counter/Cashier politely at all times Performs the seven key steps in every transactions with the customers Ensures good customer relations by giving friendly service to them Polytechnic University of the Philippines At least high school graduate 18-21 years old, male With working experience in any fast food or restaurant Hardworking and with high level of 81
    • FEASIBILITY STUDIES   KALYE OCHO Counter/Cashier (Continuation) Handles money/sales properly Eliminate loss of the store by accurately receiving payment and giving of change work discipline Fast in accomplishing task and can do multitasking F. Employment Process  Applicants will be passing an application form or resume with 2x2 colored photo to the administrative manager.  The administrative will analyze the contents of the resume and will call the applicant for the initial examination if interpreted to be satisfactory.  The manager will provide an initial exam which contains basic and abstract questions.  If the applicant passed the initial exam, he will be provided a reviewer containing the menu of Kalye ocho as well as their corresponding descriptions.  The applicant will be asked to return after three days for three final exam based on the reviewer provided.  If the applicant passed the final exam, he will be immediately interviewed for final screening.  After the final interview, if passed, will be given the list of requirements to be complied for a specific period of time.  After compliance of all the requirements, the applicant will be scheduled for orientation together with the other applicants.  After the applicants are oriented, they will be trained for one week regarding the operations of the business applying the basic principles of the company. Polytechnic University of the Philippines 82
    • FEASIBILITY STUDIES   KALYE OCHO G. Legal Requirements G.1. Municipality of Parañaque  Business Permit  Barangay Business Clearance  Lease Contract  Locational Clearance  Picture of Establishment  Fire Clearance  Sanitary Permit G.2. BIR  2316 Form  1702 Form  1903 Form  1907 Form G.3. SSS  R-5  R-1  R-1A G.4. DTI  Application for Partnership  Business Name Registration Form G.5. SEC  Articles of Partnership  Registration Data Sheet G.6. FDA  Petition to open a food establishment  RA 3720  Checklist for food establishment Polytechnic University of the Philippines 83
    • FEASIBILITY STUDIES   KALYE OCHO H. Organizational Policies and Procedures Discipline is the primary concern of the organization for the attainment of the productivity and efficiency that will lead to the organizational and personal growth. All of the employees as well as the general partners are expected to behave ethically at all times. H.1. Employment  Mental aptitude  Social skills  Physical fitness  Strength and weaknesses  Experience As such only applicants who passed the qualifying examinations, series of interviews, medical examinations and background investigations shall be considered for employment. H.1.1. Employment Requirements a. 2 pieces 2x2 pictures b. 2 pieces 1x1 pictures c. NSO Authenticated Birth Certificate d. NBI and Police Clearance e. SSS Number f. TIN Number g. Drug test h. Medical examination i. Barangay Clearance j. Working Permit It is the company s policy to select applicants based on the following factors: k. Health Card Polytechnic University of the Philippines 84
    • FEASIBILITY STUDIES   KALYE OCHO H.2. Classification of Employees a. Managerial Employee   One who is vested with powers or prerogatives to lay down and execute management policies and/or hire, transfer, suspend, lay off, recall, discharge, assign or discipline employees. b. Supervisory Employees   One, who, in the interest of the employer, effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use independent judgment. c. Rank-and-file employee   all other employees not falling within any of the above definitions. of G.2.1. According to Rank G.2.2. According to Status a. Contractual or Seasonal   An employee is hired for a specified period of time under an agreement prior to or at the time of employment. b. Probationary   an employee is hired on a probationary basis for a period not to exceed six (6) months. c. An employee is hired on a regular status upon satisfactory completion of the probationary period and upon satisfaction of the criteria necessary for appointment as regular status. The company reserves the right to amend the above classification or create sub classifications as the circumstances of the business may require. H.3. Orientation All newly hired employees regardless of classification of rank and status must undergo on orientation and indoctrination as to the Company s vision, mission, policies, rules and regulations, duties and responsibilities and menu familiarization. Polytechnic University of the Philippines 85
    • FEASIBILITY STUDIES   KALYE OCHO H.4. Personnel Records It is the responsibility of the company to update and maintain personnel records. It should contain the following document and records:  Resume with 2x2 colored photo  Test results  Interview impressions  Mayor s permit and health certificate (to be renewed every cale ndar year)  Transcript of records  TIN,SSS,PHIC,HDMF numbers  Employment contracts  Performance Evaluation forms  Certificate of trainings attended  Leave and violation records  Others If there are changes in an employer s personal data such as residence address, civil status, dependents, etc, a report should be made for updating purposes. Withholding information and failure to report will result in willful breach of trust wherein continuance of service will be questioned. H.5. Contracts of Employment All employees shall duly sign, execute and deliver the corresponding Contract of Employment. All employees shall there after be issued a company identification card, which must be worn at all times during working hours. H.6. Work Schedule It is the policy of the company to provide appropriate work hours without violating the mandated rest days. As such, the company requires all employees to follow the six (6) hours working shift, including one-hour break assigned to them. H.7. Tune Keeping The Kalye Ocho Points Of Sales system is the official time indicator. All employees are required to use the POS system to accurately record times of arrival and departure. Polytechnic University of the Philippines 86
    • FEASIBILITY STUDIES   KALYE OCHO Swipe cards will be issued to the employees on the first day of work. Swipe card will be used to register the time of arrival, break and departure on the basis for payroll. Employees should swipe out before taking their meal breaks and swipe in after taking their meal breaks. Employees who forget to swipe in or out shall be charged as AWOL for the entire shift. H.8. Attendance and Punctuality Attendance and punctuality are important qualities that the company expects from its employees. They are the factors that determine an employee s efficiency and reliability. His presence is necessary for the smooth flow of work at the start of the business hours. H.8.1. Attendance Every employee shall ask written permission from the Store Manager or Head, before taking the leave of absence. a. Unscheduled Absences Employees must file an application for absence for at least one (1) week ahead to Store Manager or Department Head b. If employee incurred sickness and cannot report for work, he must call his supervisor or manager at least two (2) hours before his duty. If no calls were received on the day of his absence or his call came in late, this will be considered as AWOL. Upon return to work, he must file an absence slip with medical certificate attached for signature and approval of Store Manager or Supervisor c. Emergency Leave If employees must go on emergency leave, he must file an absence slip immediately. Attached to the absence slip must be documents justifying his reason for going on emergency leave. An employee who is absent from work without written approval is subject to penalties. An employee who is absent without official leave for five consecutive days is considered to have abandoned his work and therefore subject to outright dismissal from the company. Department Polytechnic University of the Philippines 87
    • FEASIBILITY STUDIES   KALYE OCHO Undertime is allowed on a case-to-case basis and only if approved by the Store Manager. Undertime hours shall be automatically deducted from the salary of the employees concerned. H.8.2. Punctuality It is the policy of the company to discourage tardiness as this affects the morale of the punctual employees as well as the operations of the business. Tardiness shall mean coming to work past the required starting time. It also means failure to go back in the workplace immediately after break periods. Heavy traffic, oversleeping , personal reasons, etc. do not constitute justification for late arrivals. Only three (3) tardiness are allowed within one month. In excess of this, an employee is subject to disciplinary action. Arrival in the workplace two hours after scheduled time will be sufficient ground to consider an employee as absent for half day. Tardiness shall be chargeable directly against basic pay. H.9. Personnel Movement and Performance Evaluation It is management s prerogative to assign, transfer, reclassify, promote or demote its employees accordingly based on merit and performance. Thus, employees are continuously evaluated as to their performance, work attitude, productivity, honesty and diligence and may be served as bases for management s decisions on personnel movement. Performance evaluation shall be done to every employee on his 3rd, 4th, and 5th month. For regular employees, performance evaluation shall be done twice a year every May and November of a calendar year. H.10. Separation from Service H.10.1. Voluntary Resignation In case an employee intends to resign, he/she must give a one-month prior notice to the management and must comply with all the clearance requirements; otherwise the employee shall forfeit whatever remaining compensation due to him. Polytechnic University of the Philippines 88
    • FEASIBILITY STUDIES   KALYE OCHO H.10.2. Termination In all cases involving a termination of an employee s service from the company, appropriate notice of termination shall be furnished to the employee subject to clearances of all accountabilities. As a matter of policy, terminated employees are not qualified for reinstatement. H.11. Compensation and Benefits H.11.1. Salaries and Wages All employees shall receive their respective salaries or wages as provided in their Contracts of employment every 15 th and last day of the month. Cut-off for payroll computation is every 10th and 25th of the month. H.11.2. Overtime Pay Employees may be required to work beyond their shift or even on rest days due to work requirements. Every effort should be made to avoid unnecessary overtime work and to keep work within reasonable limits. All overtime work should have prior written approval from the Store Manager. Every employee should file their overtime slips within the payperiod to be compensated. No overtime slip, no overtime pay. H.11.3. Cancelled Day-off/Holiday Pay Every employee shall be provided with a rest period of twenty-four (24) hours after every six (6) consecutive normal working days. The following shall be considered regular holidays:  New Year s Day  Maundy Thursday  Good Friday  Araw ng Kagitingan  Labor Day  Independence Day  National Heroes Day  Ramadan  Bonifacio Day January 01 movable date movable date April 09 May 01 June 12 last Sunday of August movable date November 30 Polytechnic University of the Philippines 89
    • FEASIBILITY STUDIES   KALYE OCHO  Christmas Day  Rizal Day  All Saints Day  Last day of the Year December 25 December 30 The following shall be considered special holidays: November 01 December 31 Work performed on a regular holiday shall be compensated with an additional compensation equivalent to 100% of his regular salary. Work performed on an employee s rest days or on a special holiday shall be paid an additional compensation of 30% of his regular salary. H.11.4. 13th Month Pay The 13th month pay of an employee which shall be equivalent to 1/12 of his basic salary earned within a calendar year shall be given not later than December 24 of each year. H.11.5. Paternity and Maternity Leave Paternity and maternity leave benefits as provided by law shall be given to every employee entitled thereto, upon complying with all the requirements of the company and representatives. H.11.6. SSS/PHIC/HDMF Benefits Benefits under SSS/PHIC/HDMF law shall be granted in accordance with applicable laws. Implementation of procedures relative to entitlement of said benefits should be done in accordance with the regulations to be promulgated by the management. H.11.7. Hospitalization Plan Regular employees shall be provided with hospitalization plan with a respectable Health Maintenance Organization under terms and conditions to be solely decided by the company. upon proper verification by the Company s duly authorized Polytechnic University of the Philippines 90
    • FEASIBILITY STUDIES   KALYE OCHO H.11.8. Accident Insurance Regular employees are enrolled by the Company under a reputable Insurance Organization. Any accident incurred whether work-related or not shall be compensated by this Insurance firm. This plan shall be on employeremployee participating basis. H.11.9. Retirement Benefits Retirement pay benefits as provided by law shall be given to all qualified employees upon their retirement from the company. H.11.10. Bereavement Assistance If an immediate family member of a regular employee passed away, he shall be given a financial assistance of P5000.00 upon complying with all the requirements of the company and verification by its authorized representative. H.11.11. Other Incentives and Awards Awards and certificates of recognition, such as Crew of the Month, Best in Attendance, Most Punctual Employee, Model Employee of the Year and the like shall be given the discretion of management. I. Code of Ethics I.1. Hygiene and Sanitation All employees must observe must observe the highest standard of hygiene and sanitation. Employees must be well-groomed and continue with their work, wearing clean and proper attire. For this purpose, the tem  well-groomed  shall mean proper haircut, cut fingernails, use deodorant, and clean and regularly washed hands. For this purpose, the term  clean and proper attire  shall likewise include newly-washed and properly-ironed attire, no excessive dirt on clothes and shoes, and proper and complete company uniform worn properly. Polytechnic University of the Philippines 91
    • FEASIBILITY STUDIES   KALYE OCHO I.2. Arrival and Departure of Employees All employees regardless of status and rank, must submit all personal belongings for inspection upon entering the company premises. Inspection will include a tickler which shall list all contents of his bag, down to the smallest detail. All personal belongings are restricted within the locker area while the employee s on-duty. It is strictly prohibited to bring in any personal belongings based on the tickler as well as body frisking. If found questionable items in his possession, this shall be reported to the manager on-duty immediately for proper action. I.3. Procedure for Notices/Bulletin Boards Management shall post all notices, announcements and memoranda of general application on the bulletin board. Ignorance is not an excuse and it is incumbent on each employee to regularly check the bulletin boards for new notices, announcements or memoranda. No employee is allowed to post or remove any document on the bulletin board without the prior permission from the management. I.4. Notice of Disciplinary Action In accordance with the due process requirements of the Labor code, as amended, all employees found or reported to have committed a violation of the company rules and regulations shall be given a written notice to explain, and shall be given the opportunity to explain why no disciplinary action should be imposed against him. Thereafter, any disciplinary action to be imposed by the management shall again be indicated in writing and duly furnished to the affected employee. I.5. Code of Conduct Without in any limiting the prerogative of the company to amend, modify, revoke, or add to the ff. List of offenses, the following acts and mere attempts to commit such acts, even if unsuccessful, shall warrant the corresponding disciplinary actions. Polytechnic University of the Philippines 92
    • FEASIBILITY STUDIES   KALYE OCHO I.5.1. Kinds of Penalties Employees are subject to penalties according to their violations made during their employment.  Written Report of Warning (WR) It is the notice calling all the attention to the offense and warning the offenses against repetition of such violation in the future.  Suspension (3D/6D/9D) If a worker has commited offense for the second or third time, he is subject to suspension. He will be detached from the organization with the designated period of time without payment.  Termination (TR) Termination will be given to employees who have committed a major offense. The employee will be dishonourably separated from the organization. Offenses * Tardiness * Absence without leave * Loitering or unauthorized leaving of post * Extending break period * Unauthorized use of company time for personal pursuit * Insubordinate or disobedience to superior * Negligence or carelessness * Unauthorized use or misuse of company property * Willful destruction of company properties * Discourtesy towards consumers, suppliers, superiors and coworkers * Using profane language or obscene language to superiors Offenses WR 1st 1st 1st 1st 1st 3D 2nd 2nd 2nd 2nd 2nd 6D 3rd 3rd 3rd 3rd 3rd 1st 9D 4th 4th 4th 4th 4th 2nd 4th 4th 1st TR 5th 5th 5th 5th 5th 3rd 5th 5th 2nd 4th 2nd 1st 1st 2nd 2nd 3rd 3rd 1st 2nd 3rd 1st WR 3D 6D 9D TR Polytechnic University of the Philippines 93
    • FEASIBILITY STUDIES   KALYE OCHO * Stealing or attempting to steal properties of the company or of the co-workers * Failure to comply with company rules and standards on security & safety and Health & Sanitation * Failure to comply with health, security and safety requirements of the company * Immortality or scandalous acts Table 15 Offenses for the Workers 1st 2nd 3rd 1st 2nd 3rd 1st 4th 4th 1st H. Project Schedule Gantt Chart Month July Activities 1 Processing of Legal Requirements Processing the Lease of Contract Purchasing and installation of Equipments Hiring and Training of Personnel Preparing all the Operation Materials Business Operation Proper Figure 33 GANNT Chart 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 August September October Polytechnic University of the Philippines 94
    • FEASIBILITY STUDIES   KALYE OCHO CHAPTER V FINANCIAL STUDY The financial aspect of the project feasibility study quantifies the results of the marketing, technical, management, taxation and legal phase of the project study and expresses in peso terms the possible outcome of operating the project. The major parts of the financial study are: Statements of assumptions; Possible sources of outside financing, if the capital requirements cannot be met entirely by the proponents; Projected financial statements; Details of various amounts contained in the projected financial statements; and Analysis of the financial projections Basically, project studies consist of the skillful coordination of the various information on all the factors in the form of financial projections. It covers all the factors that are pertinent to an intended venture having established the e xistence of a sample market and the feasibility of the production facilities to supply this market, the investigation should move on the study of finance cost. What remains is to study the result of the market and technical studies. I. Objectives a. to make a realistic, complete, and conservative estimate of the total cost to put up a project of its capital requirements, b. to determine the amount of capital financing available and borrowings needed, including possible source and terms, c. to make complete, safe, and realistic projections of operating cost and revenues, d. to determine whether the project will be able to pay its total debt with a reasonable margin of safety, e. to determine the necessary financial arrangements to insure that the project will have the cash it needs when required, f. To determine the company s earning performance and the soundness and liquidity of its financial positions. Polytechnic University of the Philippines 95
    • FEASIBILITY STUDIES   KALYE OCHO Major Assumptions: Sales increase by 5% every year. Depreciation method used is a straight line method. VAT paid is for 11 months (January to February) and VAT for December is paid on the 25th of January of the subsequent year as stated in the NIRC. Withholding tax on salaries is payable on April 15 of the subsequent year. Income Tax for the current year is payable on April 15 of the subsequent year. Salaries increase by .5% every year. Utilities expense is paid as it comes due . Administrative and Selling expense increase 5% per year. Polytechnic University of the Philippines 96
    • FEASIBILITY STUDIES   KALYE OCHO Polytechnic University of the Philippines 97
    • FEASIBILITY STUDIES   KALYE OCHO Polytechnic University of the Philippines 98
    • FEASIBILITY STUDIES   KALYE OCHO Polytechnic University of the Philippines 99
    • FEASIBILITY STUDIES   KALYE OCHO Polytechnic University of the Philippines 100
    • FEASIBILITY STUDIES   KALYE OCHO Polytechnic University of the Philippines 101
    • FEASIBILITY STUDIES   KALYE OCHO Polytechnic University of the Philippines 102
    • FEASIBILITY STUDIES   KALYE OCHO Polytechnic University of the Philippines 103
    • FEASIBILITY STUDIES   KALYE OCHO Polytechnic University of the Philippines 104
    • FEASIBILITY STUDIES   KALYE OCHO Part II. Economic Evaluation Payback Period Partners  Initial Investment to the Company **Annual Net Cash Flow from Operation P 4,000,000.00 P 1,840,310.28 Year 0 1 Net Cash Flow (P 4,000,000.00) Counted Year(s) --------------------------------1 2 3 Payback Period 1,840,310.28 1,840,310.28 1,520,930.84 ----1 0.83 2.83(2 years and 10 months) ** Average amount for 5 years Polytechnic University of the Philippines 105
    • FEASIBILITY STUDIES   KALYE OCHO CHAPTER VI SOCIO-ECONOMIC STUDY The socio-economic impact of this study will clearly state its relevance to the external aspect of the business. Objectives: a) to determine the contributions of the business to the Philippine economy, b) to describe the benefits of the business to its community, c) to ensure the active participation in the maintenance of cleanliness in the environment. A. Socio-Economic Contributions A.1. Contribution to the Philippine Economy Every business establishment will be of great help for the growth and development of the Philippine economy. These will only be possible if every firm will be responsible enough to perform their duties and obligations to their customers, community and of course to the government. Kalye Ocho will definitely contribute additional earnings to our government by means of paying right taxes. Through this, the government can able to perform its functions well including continuous support and assistance to the business industry, providing projects for the community such as building infrastructures, public schools and hospitals, strengthening arm forces for the security and protection of the countrymen and other indispensable projects that will benefit the people. A.2. Employment Generation The business will provide job opportunities to many individuals most especially to those people who have great passion in food preparation. Every society wants all i ts qualified members to be gainfully employed. When individuals are employed they are able to raise their children support them through school, provide hem with decent homes, acquire medical services whenever needed and contribute to government income through the payment of income taxes. Kalye Ocho will help to lessen rate of Polytechnic University of the Philippines 106
    • FEASIBILITY STUDIES   KALYE OCHO unemployment and number of poor people. The eradication of poverty will help to solve social problems like crimes, juvenile delinquency and malnutrition. A.3. Environment Conservation Kalye Ocho will be sensitive enough to our environment by means of assuring that the processes involve in the business operations will be environmental friendly. Moreover, the firm will apply the principle of Corporate Social Responsibility (CSR). The business will observe proper waste disposal in order to maintain cleanliness and orderliness. This will also help to lessen pollution that causes different diseases and health problems to many Filipinos. The business proponents will allocate enough budgets to sustain the execution of waste management in its operation. Furthermore, Kalye Ocho will give a different insight regarding the foods we cater - street foods. The goal of the business is to educate the people most especially youngsters that through suitable handling and presentation of these foods, contamination and insanitation will be avoided. Polytechnic University of the Philippines 107
    • FEASIBILITY STUDIES   KALYE OCHO APPENDICES KALYE OCHO SURVEY AND EVALUATION SHEET Dear Customers, We, the proponents of Kalye Ocho, a kiosk catering street foods are conducting a survey for us to provide quality products and services that will fit your needs and wants. We need your help in filling up this questionnaire. I. Personal Information Name:_________________________ Gender:_______________________ Age:__________________________ II. Direction: Answer the following questions by putting a checkmark on the space provided that correspond your answer. 1. Where do you usually eat when you re not at home? ( ) Fine Dining ( ) Casual Dining ( ) Fast Food ( ) Eatery 2. How often do you eat street foods? ( ) Daily ( ) Weekly ( ) Monthly ( ) Yearly ( ) Not at All Polytechnic University of the Philippines 108
    • FEASIBILITY STUDIES   KALYE OCHO 3. What kind of street foods do you usually eat? ( ) Adidas ( ) Balut ( ) Calamares ( ) Chicken Skin ( ) Fish Ball ( ) Isaw ( ) Kwek-kwek ( ) Pork Barbeque 4. How aware are you regarding the safety and cleanliness of these street foods? ( ) Very Much Aware ( ) Much Aware ( ) Aware ( ) Not Much Aware ( ) Not Aware At All 5. How willing are you to eat in a restaurant catering street foods as their main dish? ( ) Very Much Willing ( ) Much Willing ( ) Willing ( ) Not Much Willing ( ) Not Willing At All 6. In what way do you want these street foods to be served? ( ) In Soup ( ) In Noodles ( ) In Viand Polytechnic University of the Philippines 109
    • FEASIBILITY STUDIES   KALYE OCHO 7. What beverages do you prefer? ( ) Buko Juice ( ) Buko Pandan ( ) Iced Tea ( ) Pineapple Juice ( ) Sago t Gulaman 8. What desserts do you prefer? ( ) Banana Con Yelo ( ) Halo-halo ( ) Mais Con Yelo ( ) Minatamis na Saging ( ) Sorbetes ( ) Turon 9. How much do you usually spend for food in a restaurant? ( ) 201 and above ( ) 151-200 ( ) 101-150 ( ) 76-100 ( ) 51-75 ( ) 50 and below 10. What other features are you willing to spend with in a restaurant? ( ) LCD Computers with Internet ( ) LCD Television ( ) Videoke Polytechnic University of the Philippines 110
    • FEASIBILITY STUDIES   KALYE OCHO 11. How do you want us to reach you? ( ) Billboard ( ) Flyers ( ) Posters ( ) Transit Media ( ) Website 12. In what location do you want our business to be established? ( ) Mall ( ) Park ( ) School Vicinity ( ) Subdivision 13. Have you tried eating street foods such as Kwek-kwek, Fishball, Adidas, Calamares, Isaw, Pork Barbeque, Chicken Skin and Balut? ( ) Yes ( ) No 14. How many servings of the following street foods can you eat per day? (1   5) Kwek-kwek (12 pcs) Fishball (12 pcs) Adidas (4 pcs) Calamares (6 pcs) Balut (2 pcs) Pork Barbeque (1 pc) Isaw (3 pcs) Chicken Skin (10 pcs) _____ _____ _____ _____ _____ _____ _____ _____ Polytechnic University of the Philippines 111
    • FEASIBILITY STUDIES   KALYE OCHO Sample Size determination The group used the Sloven s Formula to determine the needed number of respondents. (formula) Where: N = the number of people who qualify in the area of study e = margin of error which is 5% n = number of needed respondents Sampling Design The researchers used the stratified random sampling to gather information from the target market. Surveys and interviews are conducted to further the people s demand regarding street food products by using a specific number of persons or respondents from eight barangays within the locality. The group based the respondents from 0.23% of the total population in the area covered by the study. In order to have an access on the pertinent information and gather important data about customer s taste and preferences when it comes to street food products, the researchers agreed to use Questionnaires. In this process, we find it very easy and reliable. The researchers used the checklist format. Questions are made for the researchers to get their personal choice when it comes to street foods. By these questions, the researchers will be able to determine the demand of the product. The group provided 399 survey questionnaires which are all in English la nguage. Tally of Questionnaire The questions are answerable through choosing their answers on the multiple choices. Customers Profile: Gender Male Female Total # of Respondents 143 256 399 Table 16 Customer s Profile Polytechnic University of the Philippines Percentage (% ) 35.84 64.16 100 112
    • FEASIBILITY STUDIES   KALYE OCHO Age: Age Group Under 1 01-04 05-09 10-14 15-19 20-24 25-29 30-34 35 -39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-over Total Based on the 2007 National Census Table 17 Respondent s Ages Population 14,465 55,402 61,024 53,352 56,456 64,011 58,623 51, 302 42,635 37,072 28,638 22,079 13,118 11,011 6,969 4,392 2,577 2,518 585,644 Distribution 2.47 9.46 10.42 9.11 9.64 10.93 10.01 8.76 7.28 6.33 4.89 3.77 2.24 1.89 1.19 0.75 0.44 0.43 100 Polytechnic University of the Philippines 113
    • FEASIBILITY STUDIES   KALYE OCHO 1) Where do you usually eat when you re not at home? # of Respondents Fine dining Casual Fine dining Fast Food Eatery Total 16 43 218 122 399 Table 18 Question#1 Statistics 250 200 150 100 50 0 F ine dining C as ual F as t F ood E atery F ine dining Percentage (% ) 4.02 10.80 54.64 30.65 100 # of R es pondents P erc entage (% ) Figure 34 Question#1 Graph Most of the respondents usually eat in fast food restaurants when they re not at home. There are 218 respondents for fast food which is 54.64% of the 399 total respondents, followed by eatery with 122 which is 30.65%, casual fine dining with 43 which is 10.80% and last is fine dining with only 16 which is 4.02%. Polytechnic University of the Philippines 114
    • FEASIBILITY STUDIES   KALYE OCHO 2) How often do you eat street foods? # of Respondents Daily Weekly Monthly Occasionally Not at All Total 58 135 165 19 22 399 Table 19 Question#2 Statistics Percentage (% ) 14.54 33.84 41.35 4.76 5.51 100 180 160 140 120 100 80 60 40 20 0 # of R es pondents P erc entage (% ) ily lky y lly th l Da ee M on na W as O cc Figure 35 Question#2 Graph Result shows that majority of the respondents consisting of 41.35% (165) eat street foods monthly. Others are weekly that is composed of 33.84% (135), daily with 14.54% (58), Not At All with 5.51% (22), and occasionally with 4.76% (19). Polytechnic University of the Philippines No tA io tA ll 115
    • FEASIBILITY STUDIES   KALYE OCHO 3) What kind of street foods do you usually eat? # of Respondents Adidas Balut Calamares Chicken Skin Fish Ball Isaw Kwek-Kwek Pork Barbeque Total 16 18 56 28 63 31 94 93 399 Table 20 Question#3 Statistics 100 90 80 70 60 50 40 30 20 10 0 Sk in Fi sh Ba ll K w Is a P o ek - w Kw rk B a ek rb eq ue t Ad Ba m en ar es s id a lu Percentage (% ) 4.01 4.51 14.04 7.02 15.79 7.77 23.56 23.3 100 # of R es pondents P erc entage (% ) la Ca Ch ick Figure 36 Question#3 Graph Results show that among the eight given street foods, Kwek-kwek has the greatest demand from the respondents. It has the demand of 94 composing 23.56% of the total demand. Next are Fishball (15.79%), calamares (14.04%), Isaw (7.77), Balut (4.51%), Chicken skin (7.02%), Pork Barbeque (23.3%), and Adidas (4.01%) Polytechnic University of the Philippines 116
    • FEASIBILITY STUDIES   KALYE OCHO 4) How aware are you regarding the safety and cleanliness of these street foods? # of Respondents Very Much Aware Much Aware Aware Not Much Aware Not Aware At All Total 107 103 148 37 4 399 Table 21 Question#4 Statistics Percentage (% ) 26.82 25.82 37.09 9.27 1.0 100 160 140 120 100 80 60 40 20 0 V ery Muc h A ware Muc h A ware A ware Not Muc h A ware Not A ware A t A ll # of R es pondents P erc entage (% ) Figure 37 Question#4 Graph Based on the results, majority of the respondents are moderately aware of the safety and cleanliness of street foods garnering 37.09% of the total response. Others are Very Much Aware consisting 26.82%, Much Aware with 25.82%, Not Much Aware with 9.27, and Not aware At All with 1.0%. Polytechnic University of the Philippines 117
    • FEASIBILITY STUDIES   KALYE OCHO 5) How willing are you to eat in a restaurant catering street foods as their main dish? # of Respondents Very Much willing Much Willing Willing Not Much Willing Not Willing At All Total 65 94 174 55 11 399 Table 22 Question#5 Statistics Percentage (% ) 16.29 23.56 43.61 13.78 2.78 100 180 160 140 120 100 80 60 40 20 0 V ery Muc h willing Muc h W illing W illing Not Muc h W illing Not W illing A t A ll # of R es pondents P erc entage (% ) Figure 38 Question#5 Graph 43.61% of the respondents are willing to eat in a restaurant catering street foods, while 23.56% are much willing. Others are Very Much Willing composed of 16.29%, Not Much Willing of 13.78%, and still others are Not Willing At All of 2.78%. Polytechnic University of the Philippines 118
    • FEASIBILITY STUDIES   KALYE OCHO 6) In what way do you want these street foods to be served? # of Respondents In Soup In Noodles In Viand In Traditional way Total 18 61 68 252 399 Table 23 Question#6 Statistics Percentage (% ) 4.51 15.29 17.04 63.16 100 300 250 200 150 100 50 0 In S oup In Noodles In V iand In Traditional way # of R es pondents P erc entage (% ) Figure 39 Question#6 Graph Majority of the respondents which is 63.16% prefer traditional way of cooking street foods, followed by 17.04% who prefer to be in viand, 15.29% in noodles and 4.51% to be in soup. Polytechnic University of the Philippines 119
    • FEASIBILITY STUDIES   KALYE OCHO 7.) What beverages do you prefer? # of Respondents Buko Juice Buko Pandan Iced Tea Pineapple Juice Sago t Gulaman Total 54 23 125 101 96 399 Table 24 Question#7 Statistics Percentage (% ) 13.53 5.76 31.33 25.31 24.06 100 140 120 100 80 60 40 20 0 # of R es pondents P erc entage (% ) ic e Te da ic P uk Ic pp le uk B ea P S ag B in Question#7 Graph According to the result, Iced Tea has the highest demand with 31.33% of the overall responses. Next from the highest is Pineapple Juice with 25.31%, followed by Sago t Gulaman with 24.06%, Buko Juice with 13.53%, and finally Buko Pandan with 5.76% Polytechnic University of the Philippines o' tG o Figure 40 ul am Ju an
    • o ed Ju an n a e 120
    • FEASIBILITY STUDIES   KALYE OCHO 8.) What desserts do you prefer? # of Respondents Banana Con Yelo Halo-halo Mais Con Yelo Minatamis na Saging Sorbetes Turon Total 49 162 64 16 87 21 399 Table 25 Question#8 Statistics Percentage (% ) 12.28 40.6 16.04 4.01 21.8 5.26 100 180 160 140 120 100 80 60 40 20 0 # of R es pondents 5.26 el o lo lo te s or be g ha Ye in on oon al C H na S a s C an M ai B M in a ta m an is S
    • Figure 41 Question#8 Graph Results shows that among the desserts given, Halo-halo has the highest demand with 40.6%, next is Sorbetes with 21.8%, followed by Mais Con Yelo with 16.04%, Banana Con Yelo with 12.28%, Turon with 5.26% and lastly Minatamis na Saging with 4.01%. Polytechnic University of the Philippines Tu Y ag ro n 121
    • FEASIBILITY STUDIES   KALYE OCHO 9.) How much do you usually spend for food in a restaurant? # of Respondents 201 & above 151-200 101-150 76-100 51-75 50 & below Total 47 32 56 103 87 74 399 Table 26 Question#9 Statistics Percentage (% ) 11.78 8.02 14.04 25.81 21.8 18.55 100 120 100 80 60 40 20 0 # of R es pondents P erc entage (% ) e 0 0 ov -1 0 20 15 ab 51 15 10 76 1 & 20 Figure 42 Question#9 Graph Majority of the respondents which is 25.81% are willing to spend À76-100 in a restaurant. Next is À51-75 with 21.8% and À50-below with 18.55%. Others are willing to spend À101150 with 14.04%, À201-above with 11.78% and À151-200 with 8.02%. Polytechnic University of the Philippines 50 & be 11lo w 0
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    • FEASIBILITY STUDIES   KALYE OCHO 10.) What other features are you willing to spend with in a restaurant? # of Respondents LCD Computers w/ internet LCD Television Videoke Total 112 75 212 399 Table 27 Question#10 Statistics Percentage (% ) 28.07 18.8 53.13 100 250 200 150 100 50 0 LC D L C D Televis ion C omputers w/ internet V ideoke # of R es pondents P erc entage (% ) Figure 43 Question#10 Graph Regarding the additional features, majority prefers Videoke with 53.13% and followed by LCD Computer with internet with 28.07%. Other prefers LCD Television consisting 18.8% of the overall. Polytechnic University of the Philippines 123
    • FEASIBILITY STUDIES   KALYE OCHO 11.) How do you want us to reach you? # of Respondents Billboard Flyers Posters Transit Media Website Total 27 101 130 17 124 399 Table 28 Question#11 Statistics Percentage (% ) 6.77 25.31 32.58 4.26 31.08 100 140 120 100 80 60 40 20 0 B illboard F lyers P os ters Trans it W ebs ite Media # of R es pondents P erc entage (% ) Figure 44 Question#11 Graph Result shows that majority of the respondents prefer Posters as our way of promotion with 32.58%, next is Website with 31.08%, Flyers with 25.31%, Billboard with 6.67% and Transit Media with 4.26%. Polytechnic University of the Philippines 124
    • FEASIBILITY STUDIES   KALYE OCHO 12.) In what location do you want our business to be established? # of Respondents Mall Park School Vicinity Subdivision Total 238 30 127 4 399 Table 29 Question#12 Statistics Percentage (% ) 59.65 7.52 31.83 1.0 100 250 200 150 100 50 0 # of R es pondents P erc entage (% ) M al ar k in ity ic lV oo S ch Question#12 Graph With regards to the location of the business, majority chose Mall with 59.65% of the total percentage of the respondents. It is followed by School Vicinity with 31.83%, Park with 7.52% and finally Subdivision with 1.0%. Polytechnic University of the Philippines S ub Figure 45 di vi si P on l 125
    • FEASIBILITY STUDIES   KALYE OCHO 13.) Have you tried eating street foods such as Kwek-kwek, Fishball. Adidas. Calamares, Isaw, Pork Barbeque, Chicken Skin and Balut? # of Respondents YES NO Others 318 78 3 Table 30 Question#13 Statistics Percentage (% ) 79.70 19.55 1 Figure 46 Question#13 Graph Majority of the respondents had already tried eating street foods such as Kwekkwek, Fishball. Adidas. Calamares, Isaw, Pork Barbeque, Chicken Skin and Balut with a 79.70% of the total population while 19.55% of them answered they did not. Polytechnic University of the Philippines 126
    • FEASIBILITY STUDIES   KALYE OCHO 14.) How many servings of the following street foods can you eat? # of Serving Street foods 1 2 3 4 5 Total Kwekkwek(12pcs) Fishball(12pcs) Adidas(4pcs) Calamares(6pcs) Balut(2pcs) Pork Bbq(1stick) Isaw(3sticks) Chicken skin(10pcs) 18 32 17 4 2 73 2 16 23 19 12 21 14 28 19 24 7 29 10 11 6 ----2 4 3 ------1 5 1 2 ----1 1 59 50 43 19 54 34 2 1 2 1 2 1 11 22 6 Table 31 4 3 46 2 Question #14 Statistics
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    • FEASIBILITY STUDIES   KALYE OCHO Wages and Salaries Direct Labor Store Manager Kitchen Steward Service Crew Total # Rate/Hr # of hr/day Daily Salary 1 8 2 11 96.25 50.50 50.50 8 8 8 770 3,232 4,808 8,810 Monthly Salary 20,020 84,032 21,008 125,060 Annual Salary 240,240 1,008,384 252,096 1,500,720 Note: There are 26 working days in every month. Witholding Taxes Direct Labor Store Manager Kitchen Steward Service Crew Total 13th Month Pay Direct Labor Store Manager Kitchen Steward Service Crew Total # Monthly Salary Xmas Cash Gift 1 8 2 11 20,020 10,504 10,504 1,000 500 500 Individual 13th mo. pay 21,020 11,004 11,004 21,020 88,032 22,008 131,060 Total Monthly Salary Monthly WHT Annual WHT 20,020 84,032 21,008 125,060 2,921.75 809.13 809.13 35,061.00 9,709.56 9,709.56 1 8 2 11 # Total Annual WHT 35,061.00 77,676.48 19,419.12 132,156.60 Polytechnic University of the Philippines 128
    • FEASIBILITY STUDIES   KALYE OCHO Direct Labor Store Manager Kitchen Steward Service Crew Total # Individual Monthly Salary SSS Phil Health Pag-Ibig Total 1 8 2 11 20,020 10,504 10,504 1,000 6,000 1,500 8,500 500 2,000 500 3,000 100 800 200 1,100 19,200 105,600 26,400 151,200 5   year Computation of Salary Year 2011 2012 2013 2014 2015 Note: Salary Expense increases 5% yearly 5   year Computation of Electricity Consumption Year 2011 2012 2013 2014 2015 Daily 114 119.7 125.68 131.96 138.55 Monthly 3,420 3,591 3,770.4 3,958.8 4,156.5 Annual Electric Expense 41,040 43,092 45,244.8 47,505.6 49,878 Annual Salary Expense 1,500,720 1,575,756 1,654,543.80 1,737,270.99 1,824,134.54 Polytechnic University of the Philippines 129
    • FEASIBILITY STUDIES   KALYE OCHO 5   year Computation of Telephone Consumption Year Min. Charge EVAT (12% ) Allowance for Long Distance 2011 2012 2013 2014 2015 1,200 1,260 1,323 1,389.15 1,458.61 144 151.2 158.76 166.7 175.03 500 550 605 665.5 732.05 1,844 1,961.2 2086.76 2,221.35 2,365.69 22,128 23,534.4 25,041.12 26,656.2 28,388.28 Monthly Charge Annual Charge 5-year Computation of Water Year # cu.m used/mo 2011 2012 2013 2014 2015 121 127 133 139 145 10 10.5 11.03 11.58 12.16 Amt./cu.m Monthly consumption 1,210 1,333.5 1,466.99 1,609.62 1,763.2 Annual Consumption 14,520 16,002.24 17,603.88 19,315.44 21,158.4 Year # of Tank/month Price/Tank Monthly Consumption Annual Consumption 12,240 19,080 25,920 33,000 40,320 2011 2012 2013 2014 2015 2 3 4 5 6 510 530 540 550 560 1,020 1,590 2,160 2,750 3,360 Polytechnic University of the Philippines 130
    • FEASIBILITY STUDIES   KALYE OCHO Expenses Wages and salaries Electricity Telephone Water Lpg Promotional expense Utensils Machineries and equipments Furniture and fixtures Rental Sanitary Office Repairs and maintenance Taxes and licenses Total Yearly 1,500,720 41,040 22,128 14,520 12,240 9,050 607.55 14,113.80 Monthly 125,060 3,420 1,844 1,210 1,020 754.17 50.63 1,176.50 Daily 4,168.67 114.00 61.47 40.33 34.00 25.14 1.69 39.21 Cost/Product 1.71 0.05 0.03 0.02 0.02 0.01 0.001 0.02 807 240,000 748 767.50 24,000 67.25 20,000 62.33 63.96 2,000 2.24 666.67 2.08 2.13 66.67 0.001 0.27 0.001 0.001 0.03 8,620 718.33 23.94 0.01 1,889,361.80 156,426.82 5,248.24 2.16 Operating cost= Daily Expense Overall servings Of all products   5,248.24 2,430   2.16 Purchases Year 2011 2012 2013 2014 2015 Daily 12,240.68 12,852.71 13,495.35 14,170.12 14,878.62 Monthly 367,220.4 385,581.4 404,860.5 425,103.5 446,358.6 Annual 4,406,645 4,626,977.3 4,858,326.2 5,101,242.5 5,356,303.6 Polytechnic University of the Philippines 131
    • FEASIBILITY STUDIES   KALYE OCHO Inventory Year 2011 2012 2013 2014 2015 Daily 2,539.86 2,666.85 2,800.19 2,940.20 3,087.21 Monthly 76,195.80 80,005.59 84,005.77 88,205.99 42,616.30 Annual 914,349.60 960,067.08 1,008,069.30 1,058,471.80 1,111,395.50 Comparison of our Price list to our Competitor s Price List Products Kalye Ocho Competitor s Price List (Solo) Price List Zonyda Mang Inasal Merienda Meals Kwek-kwek 18 (5 pcs.) ----12(4pcs) Fishball 15 (12pcs) 15(10pcs) ----Adidas 18 (4pcs) ------Chicken skin 18(10pcs) ------Balut 25(2pcs) ----15(1pc) Isaw 18(3sticks) ------Calamares 22(6pcs) ------Pork Bbq 20(1stick) --42(1stick) 25(1stick) Halo-halo 42 --59 --Mais con yelo 25 --42 --Banana con 25 --42 --yelo Sorbets 15/cone --10/cone --Iced tea 18/glass --35/glass -(medium) Pineapple 18/glass 20 ----juice (medium) Sago t 18/glass 10 ----gulaman (medium) Streetfood Vendors 10(4pcs) 10(8pcs) 8(2pcs) 5(3pcs) 10(1pc) 5(1pc/stick) 3(1pc) 15(1stick) 25 15 15 10/cone --5/small cup 5/small cup Polytechnic University of the Philippines 132
    • FEASIBILITY STUDIES   KALYE OCHO Price Computation Solo Purchase Operating Product Selling Cost Cost Cost Price w/out VAT Kwek8.6 2.16 10.76 15.84 kwek Fishball 5.76 2.16 7.92 13.2 Adidas Chicken skin Pork Bbq Balut Isaw Calamares Halo-halo Mais con yelo Banana con yelo Sorbets Iced tea Pineapple juice Sago t gulaman 4.46 8.80 7.60 18.62 6.69 13.92 32.19 12.18 7.91 8. 33 3.07 6.13 3.61 2.16 2.16 2.16 2.16 2.16 2.16 2.16 2.16 2.16 2.16 2.16 2.16 2.16 6.62 10.96 9.76 20.78 8.85 16.08 34.35 14.34 10.07 10.49 5.23 8.29 5.77 15.84 15.84 17.6 22 15.84 19 .36 3 6.96 22 22 13.2 15.84 15.84 15.84 Selling Price w/ VAT 18.00 15.00 18. 00 18.00 20.00 25.00 18.00 22.00 42.00 25.00 25.00 15.00 18.00 18.00 18.00 % Markup 32.07 40 58.21 30.81 44.55 5.55 44.13 16.94 7.06 34.82 54.23 20.53 66.98 47.66 63.57 # of Orders Sales 63 1134 630 42 11 19 62 12 21 36 40 16 12 21 3 67 63 198 342 1240 300 378 792 1680 400 300 31 5 1494 1206 1134 Combo Product Cost Rice Drinks Price Kwekkwek Fishball Adidas Chicken skin Pork Bbq Balut Isaw Calamares 10.76 7.92 6.62 10.96 9.76 20.78 8.85 16.08 8 8 8 8 8 8 8 8 6.43 6.43 6.43 6.43 6.43 6.43 6.43 6.43 25.19 22.39 21.05 25.39 24.19 35.21 23. 28 30.51 Selling Selling Price Price w/out w/ VAT VAT 34.32 39 30.8 30. 8 34.32 36.96 36.96 30.8 36.96 35 35 39 42 42 35 42 % of Markup 26.60 27.31 31.66 26.02 34.55 4.73 24.42 17.45 # of Orders Sales 42 15 4 7 22 5 7 14 1638 980 245 507 1722 336 490 1050 Polytechnic University of the Philippines
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    • FEASIBILITY STUDIES   KALYE OCHO Purchases Raw Materials Quail eggs Lapu-lapu Squid Chicken skin Pork Chicken feet Chicken intestine Balut Carrot Spring onion Flour Egg Food color Pepper Magic sarap Oil Chicken breeding Catsup Soy sauce Vinegar Bbq. Stick Oyster S. 3L 3.55L 3.55L 1 Bundle 3.55L 147.50 50.50 45.50 20 409.50 1L 1.5 1.5 155 1.5 2L 2L 2L 15pcs 1.5L 2L 2.05 2.05 45 2.05 18.33 28.00 26.00 9.5 204.75 98.33 85.18 26.27 4.50 236.47 32 L 5 pack 3060 50 28/L 4 16 L 1 pck 8L 1 15.30 10.00 765 10 1 kg 12pcs 20 30 ¼ 8 ¼ 2 pcs ¾ 4 5.00 5.00 15 10 6 kilo 12 pcs. 1 pack 252 48 10 5½ 6 1 KL 24pcs ½ pck ½ 6 ½ 42.00 16.00 5.00 21 24 5 30pcs ¼ kilo 1 bundle 810 20 10 26 ¼ --10pcs 4 90.00 36 3 kilo 180 1kl 4 kilo 2kilo 660 120 4 ½ 2 kilo 5kilo 3 kilo 280 300 180 ½ 3kl 1½ 100.00 100.00 350/pcs Qty Purchase Cost 900 325 40 pcs 25 60.00 37.50 Cost Qty Polytechnic University of the Philippines 134
    • FEASIBILITY STUDIES   KALYE OCHO Sugar Iced tea powder Pineapple mixture Gulaman Sago Vanilla Sweet corn Corn flakes Saging Evap Leche flan Mongo Ice cube Cone Selecta ice cream Kaong Beans Nata Langka Macapuno pinipig Rice Ube Silling labuyo 5kilo 3 packs 158.00 109.50 3K --½ KL 2K 16.00 63.20 1 can 120 --6 cups 6 cups 90ml 3 cans 42 36 94.10 162 ----2ml 2½ 78 88ml ½ can 81.47 91.91 27 1 pack 82 ¼ ½ ¾ 41 61.50 15 pcs 7 cans 3 llanera 1 jar 5 24 pcs 1 gallon 1 jar 37.50 157.50 60 68.50 75 48.00 190.00 19 19 5pcs ¼ 10.00 47.50 ½ ½ ½ 34.25 7.5 10 140 34.25 11.25 6½ ½ ½ 33.75 11.25 1 jar 1 jar 1 jar 1 jar 1 jar 20 packs 50kilos 50 kilos 99.00 89.50 84.50 137.50 137.50 75.00 1020.00 174.00 10.00 ½ ½ ½ ½ ½ ½ ½ ½ ½ ½ ½ ½ ½ ½ ½ ½ 49.50 44.75 42.25 68.75 35 510 49.50 44.75 42.25 68.75 68.75 17.5 418.20 87
    • 120.00 87 Polytechnic University of the Philippines 135
    • FEASIBILITY STUDIES   KALYE OCHO Recommendations Name of Panelist Comments Actions have Taken by the Proponents  We analyzed again our market.  We adjust our expenses because we change our business from a restaurant to a kiosk.  We made a breakdown of our daily sales and daily expenses.  We include all other information that we used in analyzing our business 1. Mr. Syed Amed  The proponents of Kalye Ocho must include all the data needed in the Financial Study  You have a very big rental expense 2. Prof. Jonathan Marquez  You must have a breakdown of your daily, monthly and annual sales as well as your expenses  Your prices are very high  Your location is inappropriate because  We made a competitor s price of your very high rental analysis for our price expense. Just locate it in the available stalls to become competitive. or kiosk in a mall. 3. Prof. Aldrin Antivola  You need to change your location to minimize your expenses.  You must base your price in your competitors. Your lists of prices are not competitive.  Our pre-operating capital has less by 700,000 each per partner. we have 4,000,000.00 Polytechnic University of the Philippines 136
    • FEASIBILITY STUDIES   KALYE OCHO Feasibility Findings After studying all the aspect of the business from mark -up to management, we found out that the business is feasible because of the following reasons:  The business has great market acceptability, (83.16%) of the total population are willing to eat and avail the product at the same time.  The location o the business is accessible enough to meet a wider range of possible customers.  Products being offered are known and loved by the youth most especially from ages 16-19 years old having 58.67% of the total population.  The business will have competitive advantage in terms of the products being sold because street foods are usually eaten along the streets. The difference between our business and street food vendors is that we assure food safety as well as food quality.  Prices of the products are affordable enough to meet customer s purchasing power at the same time can cover up proponent s expenses that will result to net profit.  Raw materials needed for food preparation can easily assure because ingredients are nearby market or super markets.  The business requires big pre operating capital but can able to penetrate to the market and have good market standing that will boost the sales of the business. Polytechnic University of the Philippines 137