Chapter 1

EXECUTIVE SUMMARY
Business Name
The Burger Bar
The proposed business is called "The Burger Bar" which belongs to the fast
food industry. We wanted to include the word "burger" to the name of the business
to make an impression to the customers that the business' flagship is burger. Also,
we added the word "Bar" which is usually associated with establishment that
serves beverages while hanging-out with friends. Since it is preceded by the word
"burger", its meaning is changed to leave an impression that it is a place where
they can go to have fun with their friends while eating burgers.
Location
The location of the proposed business is in 1016 Anonas, Sta. Mesa, Manila
City, El Pueblo Condominium. It is the most strategic location considering the
target market is primarily the tenants of the El pueblo condominium, students from
the Polytechnic University of the Philippines (PUP) and the population within the
vicinity which is expected to include San Juan City and Daang Bakal,
Mandaluyong City.
El Pueblo Manila or EPM is located near Sta. Mesa Manila beside P.U.P
University. El Puelo Condormitel Manila is best described as clean, economical
unit structures, with well-maintained facilities and landscaped open spaces. The El
Pueblo Manila's concept is a fusion of a condo, a dormitory and a hotel. It is

therefore offering the affordability of a dormitory, convenience of a condominium

and the amenities of a Hotel.
The exact location of the business within which the operation of the business
is to be conducted is at a commercial space being rented out at the ground floor of
the El Pueblo. There will be no separate head office and all the necessary
functions of management such as accounting of the business is done by the
owners in the same establishment.

Description of the Logo

The business came up with this logo because we believe that it can reflect
and represent our business mission and vision as well as the type of food
experience we would like to impart to our customers.
The logo uses vibrant pastel colors that depict a classical burger but with
touches of modern, distinctive styles which add up to its uniqueness to other
regular bread products. It also uses simple font design to symbolize the simplicity
of the dining environment. Just like in the ordinary bar where wines and other
liquors are being mixed to produce an extraordinary beverage, The Burger Bar
aims to combine into one the products that we usually eat individually, making a
new and enjoyable food experience for everyone.
The yellow, red and green bar represents the cheese, patty and the lettuce,
respectively. Accordingly, it depicts the meaning of lights in an ordinary stoplightyellow means to prepare, red means to stop and green means to go. The
Burger Bar is a good snack house for a customer to start up and prepare

themselves to a long stressful day. Also, The Burger Bar aims to stop passers-by
and attract them to enter the store so that they can taste our main delicacies.
Lastly, The Burger Bar targets to make sure that all customer that enter our shop
will go out satisfied and will surely come back.
Description of the Business
The business is rendering food service. Its main objective is to bring the
unique taste of burgers and serve those to the residents of El Pueblo
Condominium and nearby community. Also, the business offers a variety of menu
from which the customer will pick. What's new with the business is that the
customer may choose his/her burger toppings and create his/her own burger.
Different sizes and kinds of burger will be offered by the business that will also be
suitable to many occasions. The Burger Bar will provide an unending 'burger
experience' to each of its customers.
The business belongs to the fast food industry which is expected to record
a value Compounded Annual Growth Rate (CAGR) of 6% at constant 2015
prices over the forecast period. Additionally, stiffer competition within fast food
sector is likely to result in the launch of more interesting and premium products,
which is set to increase sales per outlet in fast food over the forecast period.
Also, the organization is a business partnership registered with Securities and
Exchange Commission (SEC).

Specific Objectives
The business has the following objectives listed below:
1. To provide top quality burgers to its customers.
2. To create a balance between a reasonable price and mouth-savoring burgers.
3. To make a picturesque of a business establishment conducting for the
convenience and needs of the customers.
4. To make friendly and warm dining environment for all customers.
5. To maintain an adequate internal control procedures within the business
organization.
6. To become well known for its unique burger products.
Research and Methodology
Methods of Gathering Data
Data for market demographics used in the analysis of the demand and
supply will primarily come from the tally of the survey conducted by the
proponents. For data involving the analysis of industry and market, different
methods have used. In-depth research through internet, books, and libraries had
been employed in order to gain wide and exhaustive scrutiny with regards to the
market aspect of this study
Respondents of the Survey
Respondents are composed of people living within the vicinity of El Pueblo
Condominiums- Manila City, San Juan City, and Mandaluyong City. The
proponents stratified the population coming from Manila City to have lesser

sample size and will now only include the District of Sta. Mesa where the location
of the business is located. Also, only Brgy. Daang Bakal will be subjected of
survey coming from the City of Mandaluyong. With that, respondents of the
survey will specifically include of students, employees, professionals, business
persons, but will mainly consist of persons who owned condominium units in El
Pueblo.

Determination of Sample Size

According to the 2015 census of the National Statistics Authority, Sta. Mesa,
San Juan City, and Daang Bakal has a total population of 110,073, 122,180, and
3,660 as of 2015 repectively. Using their respective population growth rate of
1.43%, .12%, and 3.12% obtained in the Philippine Statistics Authority the
proponents were able to determine the population of the vicinity which is
237,748.
In determining the sample size, Slovins Formula will be used:
n=

N
1+ N e 2

Where:
n= number of respondents
N= population
e= margin of error set at 5%
Using this formula we can get the sample size of 400 computed as follows:
n=

237, 748
2
1+ ( 237, 748 )( 0.05 )

400

Project Summary
Filipino loves to eat. And with the boom in popularity of fast food chains,
so is the rise in popularity of food that they cater. And one of the most ordered
among the menu is burger. Incorporating the love of Filipinos for burgers, The
Burger Bar wants to serve the best burgers by putting a twist to the usual burgers
together with refreshing beverages and side dishes to choose from. By adding

new "flavors" such as ice cream burger, vegetable burgers and more, customers
has a lot to choose from and experiment with. And by introducing a barkadasized burger, it is one of the reasons why The Burger Bar is different and a musttry.
Market Study
The initial target market of our proposed business "The Burger Bar" are
primarily the tenants of El Pueblo condominium, as well as consumer market
within the vicinity spanning to Barangay Daang Bakal, Mandaluyong City and
San Juan City on which the potential demand for the first year, subject to annual
service limit, is 21,824 customers. Advertising efforts are much extensive during
the first year of operations by giving away fliers, putting up banners and creating
social networks such as Facebook and Instagram while on subsequent years,
only the social networks are maintained. Also in this aspect, demand and supply
analysis were made as well as the market share analysis upon the entry of the
proposed business in the market.
Technical Study
The Burger Bar belongs to the Accommodation and Food Service Industry
particularly the Fast Food Industry. The main product being offered are burgers
which can be customized according to customer's specifications. 1016 Anonas,
Sta. Mesa, Manila City , El Pueblo Condominium at a commercial space ground
floor where the business is located is accessible to accommodate the walk-in
customers. All of the inventory, supplies and equipments that are needed in the

operation of business are identified and listed in this aspect. This aspect also
includes the discussion of service flow of the business that is, from the
customers' ordering point at the cashier to payment. Technical aspect is also
concerned with the detailed presentation of the project cost amounting to P372,
476 which specifically includes the equipments, supplies and pre operating
expenditures necessary to be incurred for business setup.
Management and Legal Study
The Burger Bar is organized as a general partnership. The business
permits and licenses necessary for the business start-up and operation are
procured to ensure the business' legal existence, to protect the public health and
safety and for tax purposes. Further, internal controls to ensure the compliance of
business rules and regulations for effective performance are laid down in this
aspect.
Financial Study
The most or if not, one of the most critical and significant part of the
feasibility study is the financial study. With this, the proponents will be able to
determine how much fund is necessary to fulfill all its obligation and expenses.
The project is funded by the contribution of the partners for a total of P300, 000
and financed through debt amounting to P100, 000 with an annual interest of 8%.
By having a financial statement, the partners will be able to know the business
profitability and most likely, its feasibility. The payback period of this investment
plan is 2.75 years. Likewise, sales would continue to increase as the population

increases with the addition of new tenants, increased popularity and awareness .
The increasing trend in sales and net income is a strong indication of stable
financial condition in the future. The Net Present Value of this investment plan is
P24, 830.39. IRR on the other hand is 34% and Profitability Index is 1.67.
Socio-Economic Study
The desirability of the proposed business is reasoned out in this aspect.
The potential contributions of the Burger Bar is to provide employment
opportunities to

unemployed individuals who wishes to apply as part of the

business thus contributing positively to our society. The proposed business will
definitely contribute additional earnings to the government by means of paying the
taxes due. The establishment of the business is also expected to contribute to the
growth of the food service industry as well as by setting new trends to attract new
customers to build up the reputation of the industry as a whole. By strict adherence
to the rules set by the management at proper waste disposal, and making efforts of
finding new ways on how to reduce the waste and recycle it to beneficial byproducts in effort to contribute directly to the environment. The business being
established within the vicinity, it will save them time and effort to buy snacks
particularly to the customers of the El Pueblo. Aside from the time and energy
savings, the proposed business also offers wide range of menu that also caters to
health conscious individuals by offering "veggie burgers" alongside with fresh fruit
smoothies.
Chapter 2

MARKET STUDY
Market study will primarily focus on the major analysis of the target market
(population and its sample size), marketing mix and will present projections
involving demand and supply that will lend ease to the construction of data
projection in financial aspect of this study. This aspect gives attention on the
integral part of the entire feasibility study. It will discuss if the proposed project is
viable by determining the market trends in burger business industry, what the
consumer needs, and if this will be able to satisfy those needs.
In order to achieve what this study needs to determine its feasibility,
certain objectives must be established. The general objective of this aspect is to
determine if the proposed project is marketable taking into consideration the
general circumstances that will affect its entirety. It will also identify the potential
market and will be classified according to its demographic background. Also this
will identify pricing and promotion strategies and the results of the conducted
survey.
Moreover, models like 4Ps analysis and SWOT analysis have been
provided so that complex and thorough understanding with regards to this facet
will be gained.

Prospective Customers

The results of the survey showed that the vicinity of El Pueblo Condominium
is surrounded mostly by students with sixty four percent of the total respondents
gathered in the area. This means that a big percentage of the prospective
customers of The Burger Bar will come from the student sector, who are living
within the locality of El Pueblo. Also, many residents of the said condominium
constitute employed individuals which will certainly contributes as one of the main
consumers of our product.
The students of the nearby Polytechnic University of The Philippines are also
on the list of the prospective customers of the business enterprise. Since many of
the students who are residing in El Pueblo Condominium are studying in the said
university, it is much like probable that these residents will invite their other
classmates to come over on El Pueblo Condominium and try the burger products of
The Burger Bar.
Considering the external market like the results of the survey gathered in the
nearby cities like Mandaluyong City and San Juan City, half of the total
respondents showed that they are likewise coming from the student group. The
survey also showed positively that they are willing to try and suggest the burger
restaurant to their friends, making the researchers presumed that they are eager to
travel to come to the The Burger Bar. The other respondents are comprised of
employed individuals, covering a quarter of the remaining fifty percent. Same
enthusiasm to try the burger products is reflected on the survey made on the two
cities.

Prospective Competitors
The results of the survey made within the El Pueblo Condominium showed
that the nearest food establishment that may be considered as a prospective
competitor of The Burger Bar is the nearby eatery on the Building C of the
condominium, where sixty six percent of the respondents answered in their
questionnaire. The other fourteen percent covered the near mini-eatery and the
convenience store situated on the Building A, left side of the condominium. The
remaining six percent of the respondents answered fast food restaurant, which is to
be found in Stop and Shop, Sta. Mesa Manila, approximately 800 meters away
from El Pueblo Condominium.
The researchers believe that the eateries and other food establishment located
in Teresa, where most students are passing by going to their school, are
deliberated as part of the prospective competitors. But on the other hand, the
available market who are the residents of the said condominium will suffice as the
prospective customers of the business during the early years of operation.
Lastly, well known burger restaurants are also considered as competitors of
The Burger Bar. Since they are already well accepted by the market, their
innovations in their products might affect the patronization of customers to the
product of The Burger Bar.

Market Research
Market Information Background

The Philippine Star (1997) described the Filipinos as food lovers. They enjoy
tasty meals. They go to restaurants serving smorgasbords in a luncheon or supper
buffet offering a variety of foods and dishes. These restaurants, most especially,
attract students. They are the group of people that regularly patronize fast-food
restaurants, which accounts for the sudden boom in the fast-food industry in the
Philippines. Filipinos are increasing into fast food, as the rapid expansion of fast
food restaurants in Metro Manila can prove that. There are currently many newly
opened fast food restaurants across Metro Manila and other major cities in the
Philippines.

Growth of population and changes in consumer behavior has

facilitated the prosperity of fast food industry. In addition, influxes of population

and changes in lifestyles such as preferences for leisure, convenience, and
food-away-from-home, womens changing role in the society, and the urbanization
of families all contribute to the growth of fast food industry. Being exposed to
media advertisement, consumers dining habits have been changed. Furthermore,
given the reasonable and affordable product prices, the increasing number of
white-collar workers particularly white-collar women, whether single or married,
young or old has boosted the demand for fast food service. Therefore, fast food
industry can be said to develop upon the structural changes in working class and
families.
According to the survey conducted by the Philippine Statistics Authority,
families in NCR spent more on food, which consisted 36.5 percent of their total
expenditure.

Market Segmentation
The potential market within the vicinity is divided according to their
geographical location. The three groups are: first is the tenant of El Pueblo
Condominium, second is consumer market at Mandaluyong City, particularly
Barangay Daang Bakal, and the last group is San Juan City. The primary target
market is the first group, the tenants of El Pueblo Condominium. Since the business
is to be established at a commercial space at the ground floor of El Pueblo, they are
chosen as the primary market of the business. Factors considered in choosing the
target market are:
1.

Size of the segment

2.

Growth rate of the segment

3.

Competition in the segment

4.

Sales potential for the firm in the segment

5.

Attainable Market Share given promotional budget and competitors'

expenditures
6.

Expected Profit Margins in the segment

Market Trends
Fast food is expected to record a value CAGR of 6% at constant 2015 prices
over the forecast period (2015-2020), which is a marginally slower rate of growth

than the value CAGR of 7% recorded at constant 2015 prices over the review
period (2010-2015). The expected slowdown is attributed to the channels maturity,
which will limit its continuous growth due to limited prospects. There is also notable
growth in the number of consumers from the middle-income segment who are likely
to dine-in frequently in full-service restaurants than fast food because they can
afford to do so. Meanwhile, stiffer competition within fast food is likely to result in the
launch of more interesting and premium products, which is set to increase sales per
outlet in fast food over the forecast period.
Survey Analysis
This study is about establishing the feasibility of a burger food service
which will focus on the need to avail it by unit owners because it will suffice the
insufficiency of snack house within the locale. So this burger business will serve
as an ideal solution for unit owners who want snacks without the hassle of
spending hours and going far places.
Market Profile
Distribution of Respondents According to Sex
Table 1 shows that 174 of the respondents are male and 226 are female
respondents. It is noted that the majority of the respondents are female with a
percentage of 57.
Table 1. Distribution of Respondents According to Sex
Sex
Male
Female
TOTAL

Frequency
174
226
400

Percentage
44%
57%
100%

Distribution of Respondents According to Employment Status

Table 2 shows the distribution of respondents according to their civil status.
The result show that 65% or 260 of the respondents are students, 25% or 100 of
the respondents are employed, while 8% or 31 of the respondents are selfemployed and 9 or 2% are not a student nor employed. Majority of the tenants are
composed of students and employed individuals which has a great impact for
demand of the product.

Table 2. Distribution of Respondents According to Employment Status

Employment Status
Frequency
Percentage
Student
260
65%
Employed
100
25%
Self-employed
31
8%
None
9
2%
TOTAL
400
100%
Market Preference
Nearest Food Establishment
Table 3 shows the nearest food establishment to the respondents. Restaurant
having 8%, fast foods 38% and eatery/karinderia 54%.Eatery having the highest
percentage confirms the description of the vicinity of El Pueblo Condominiums as a
saturated market under food industry and the presence of potential competitors.

Table 3. Nearest Food Establishment

Nearest Food Establishment Frequency
Percentage
Restaurant
32
8%
Fast Food
152
38%

Eatery/Karinderia
TOTAL

216
400

54%
100%

Time Bracket
Table 4 refer to time bracket when the tenants grab a snack throughout the
day. 13% are out during 9:00-12:00 AM, 41% during 12:01-3:00PM, 32% during
3:01-6:00PM and 14% during 6:01-9:00PM. During the peak time which is 9:0011:00AM, customers are expected to come to the store.

Table 4. Time Bracket

Time Bracket
Frequency
9:00-12:00 AM
53
12:01-3:00 PM
162
3:01-6:00 PM
128
6:01-9:00 PM
57
TOTAL
400

Percentage
13%
41%
32%
14%
100%

Order in a Fast Food Restaurant

Table 5 refer to the usual order in a fast food restaurant of the respondents.
180 order rice meals, 104 order pasta, 72 order burger and the remaining 44
order other food other than the listed. Therefore according to the survey result,
burger has a fair share in the market with 18% of the total.

Table 5.Order in a Fast Food Restaurant

Order
Frequency
Percentage
Rice Meals
180
45%
Pasta
104
26%
Burger
72
18%
Others
44
11%

TOTAL

400

100%

Burger Preference
Table 6 shows that 368 usually buy burger and the remaining 32 tenants
dont. It supports the idea of putting up a burger bar.

Table 6. Burger Preference

Burger Preference
Frequency
Percentage
Yes
368
92%
No
32
8%
TOTAL
400
100%
Willingness to travel to purchase burger
Table 7 shows that 368 are willing to travel to buy our burger. It supports the
idea of putting up a burger bar.

Table 7. Willingness to travel to purchase burger

Burger Preference
Frequency
Percentage
Yes
220
55%
No
180
45%
TOTAL
400
100%
Type of Burger
Table 8 enumerates the different types of burger that will be offered such as
regular, special and customized. Under regular burger are cheese burger, bacon

burger and chicken burger whereas special burgers are ice cream burger, veggie
burger, pizza burger and 3-cheese burger and our very own customized burger.
208 or 37% are willing to buy regular burger, out of which, 114 or 20% are
allotted to cheese burger, 40 or 7% are allotted to bacon burger and 54 or 10%
are allotted to chicken burger.
271 or 48% are willing to buy special burger, distributed as follows, 30 or 5%
to ice cream burger, 56 or 10% to veggie burger, 98 or 17% to pizza burger and
87 or 16% to 3-cheese burger.
The remaining 81 or 15% are allocated to those who are willing to buy
customized burger.

Type of Burger
Regular Burger
Cheese Burger
Bacon Burger
Chicken Burger
Special Burger
Ice cream Burger
Veggie Burger
Pizza Burger
3-cheese Burger
Customized
TOTAL

Table 8. Type of Burger

Frequency
208
114
40
54
271
30
56
98
87
81
400

Percentage
37%
20%
7%
10%
48%
5%
10%
17%
16%
15%
100%

Price per Burger Offer

Table 9 shows the price per burger offer ranging from P75 to above P125.
P75 having the highest percentage of 55%, P 100 having 32%, P125 having 11%
and above P125 having 51%. Considering the result, burgers should be offer at a
price of P75.

Table 9. Price per Burger Offer

Price per Burger
Frequency
Percentage
P50-P69
220
55%
P70-P89
129
32%
P90-P109
42
11%
P110 or above
51
13%
TOTAL
400
100%

Types of Beverages
Table 10 shows the type of beverage that will be offered, 110 or 28% for
sugar-based soft drinks, 222 or 55% for fruit-based smoothies, 46 or 12% for coffee
and the remaining 22 or 5% for other.

Table 10. Type of Beverage

Type of Beverage
Frequency
Percentage
Soft drinks
110
28%
Juices
222
55%

Coffee
None
TOTAL

46
22
400

12%
5%
100%

Price per Beverage

Table 11 shows the price per beverage ranging from P25 to P50 or above.
P20-P29 has 226 or 57% of the total,P30-P39has 115 or 29%, P40-P49 has 44 or
11% and P50 or above or 4%.
Table 11 Price per Beverage
Price per Beverage
Frequency
Percentage
P20-P29
226
57%
P30-P39
115
29%
P40-P49
44
11%
P50 or above
15
4%
TOTAL
400
100%
Preference to Purchase Additional Side Dishes
Table 12 pertains to customers preference to purchase additional side dishes
as compliment to their burger.
Table 12.Preference to Purchase Additional Side Dishes
Willingness to Purchase Frequency
Percentage
Yes
252
63%
No
148
37%
TOTAL
400
100%
Side Dishes
Side dishes are small serving of food served in addition to the main dish.
Table 12 enumerates the side dishes options such as French fries with 55% of
the total percentage, spaghetti 22% and carbonara 23%.

Table 12 Side Dishes

Side Dishes
Frequency
French Fries
138
Spaghetti
56
Carbonara
58
TOTAL
252

Percentage
55%
22%
23%
100%

Price per Side Dish

Table 13 illustrates the price preference for side dishes ranging from P50 to
above P100. P20-P29having 243 or 61%, P30-P39having 103 or 26%, P40P49having 38 or 10% and P50 or above having 16 or 4%.

Table 18 Price per Side Dish

Price per Side Dish
Frequency
Percentage
P20-P29
243
61%
P30-P39
103
26%
P40-P49
38
10%
P50 or above
16
4%
TOTAL
400
100%
Priorities for Customer Satisfaction

Figure 1. Priorities for Customer Satisfaction

Priorities for Customer Satisfaction

120
100
80
60
40
20
0

Food Quality

Demand Analysis

Food Option Order Preparation

Price

Dining Environment

The population on the base year 2015 has a total of 235,913, of which
110,073 are from Sta. Mesa, 122,180 are from San Juan and 3,660 are from
Daang Bakal. Projected population can be computed using the 1.43% growth rate
provided by the National Statistics Office.
Table 20. Total Population from 2015-2021
Sta. Mesa
Year
Population

San Juan City

Year
Population

Daang Bakal
Year
Population

2015

110,073

2015

122,180

2015

3,660

2016

111,647

2016

122,327

2,016

3,774

2017

113,244

2017

122,473

2,017

3,892

2018

114,863

2018

122,620

2,018

4,013

2019

116,506

2019

122,768

2,019

4,139

2020

118,172

2020

122,915

2,020

4,268

2021

119,861

2021

123,062

2,021

4,401

Total
235,91
3
237,74
8
239,60
9
241,49
7
243,41
2
245,35
4
247,32
5

The projected population for the year 2016-2021 is computed by multiplying the
base year population on Sta. Mesa, San Juan City, Daang Bakal by 1.43% growth
rate on given by the National Statistics Authority.
Projected Annual Demand
Table 21. Projected Annual Demand
Year
2017
2018
2019

Populatio
n
239,60
9
241,49
7
243,41
2

Market
Acceptability
Rate

Percentage of
Willingness to Buy

92%

55%

92%

55%

92%

55%

Projected
Demand
12
1,242
12
2,197
12
3,166

2020
2021

245,35
4
247,32
5

12
92%

55%

4,149

92%

55%

5,146

12

Projected annual demand is computed by multiplying the population to the

market acceptability. Market acceptability is the ratio of respondents who like to
eat burger over the total population (368/ 400= .92) which is 92%. Referring to
Table 7, percentage of willingness to buy is computed by dividing number of willing
customers to travel to buy a burger over the total population (220/400=.55) which
is 55%.
Supply Analysis
Table 22. Projected Supply
Year

Population

Market
Acceptability
Rate

2017

239,609

92%

38%

83,767

2018

241,497

92%

38%

84,427

2019

243,412

92%

38%

85,097

2020

245,354

92%

38%

85,776

2021

247,325

92%

38%

86,465

Percentage of Direct
Competitors

Projected Supply

Population is multiplied by the market acceptability rate and percentage of

direct competitors which is the share supplied by fast food among food
establishments. It is computed by dividing 152, the number of respondents who
eat at fast food over the total population of 400 equals 38%.

Demand-Supply Gap Analysis

Table 23. Projected Demand and Supply Comparison
Year

Demand

Supply

Gap

2017
2018
2019
2020
2021

121,242
122,197
123,166
124,149
125,146

83,767
84,427
85,097
85,776
86,465

37,475
37,770
38,069
38,373
38,681

Annual
Demand
21,824
21,995
22,170
22,347
22,526

Unsatisfied
Demand
15,651
15,775
15,899
16,026
16,155

Table 23 illustrates the gap between the demand and supply calculated by
subtracting the supply to demand of each year. Then compared to annual
demand, the difference is the unsatisfied demand.
It can be reduced by introducing
Annual Demand
Table 24. Annual Demand
Year

Demand

2017
2018
2019
2020
2021

121,242
122,197
123,166
124,149
125,146

Market
Share
18%
18%
18%
18%
18%

Annual
Demand
21,824
21,995
22,170
22,347
22,526

Annual demand is derived by multiplying the projected demand by the market

share rate. Market share is the rate of burger consumption in a fast food
establishment computed using the number of those who buy burger over the total
population (72/400= 18%).

Market Share Analysis

National
Based on the final results of the 2012 Census of Philippine Business and
Industry (CPBI) conducted nationwide, with 2012 as the reference year, the
Philippines had a total of 26,557 establishments engaged in Accommodation and
Food Service Activities. A total of 20,279 establishments or 76.4 percent had a total
employment (TE) of less than 20 while 6,278 or 23.6 percent had TE of 20 and
over. The proposed business belongs to the category of accommodation and food
services particularly the restaurant and mobile food service activities where the fast
food services is under.
As shown in figure 1, restaurants and mobile food service activities garnered
the highest number of establishment at 74.8 percent or 19,853 establishments
followed by short term accommodation activities with 13.1 percent or 3,482
establishments.

Other

accommodation

recorded

the

establishments with 301 or 1.1 percent.

Figure 2. National Market Share
Sources: PSA 2012 statistics

lowest

number

of

Total income earned in 2012 by Accommodation and Food Service Activities

section reached PHP361.5 billion. Restaurants and mobile food service activities
was the top contributor with PHP254.2 billion or 70.3 percent of the total. Short
term accommodation activities generated PHP85.1 billion (23.5%). The remaining
PHP22.1 billion or 6.1 percent was distributed to beverage serving activities, event
catering and other food service activities, and other accommodation respectively.
With respect to regions, NCR produced the highest income amounting to
PHP195.3 billion (54.0%) followed by CALABARZON with PHP32.0 billion or 8.8
percent. Completing the top three was Central Luzon with PHP30.7 billion or 8.5
percent of the total income. The least income generated was registered to ARMM
with PHP158.7 million (0.04%).
Total expense for operating the industry summed up to PHP319.9 billion.
Restaurants and mobile food service activities disbursed the highest expense of
PHP224.9 billion (70.3%). Short term accommodation activities incurred a total
expense of PHP74.6 billion or 23.3 percent.

Having the lowest number of

establishments, other accommodation spent the least with PHP983.9 million

(0.3%).
Considering the results of the survey, we can infer that the overall market for
fast food services are quite strong and is a good indicator that it has a potential
large market. Thus venturing in this kind if industry are most likely feasible in terms
of market share.

Local (Within the vicinity - El Pueblo Condominium which is expected to

include Barangay Daang Bakal, Mandaluyong City and San Juan City)
Narrowing down the analysis to The Burger Bar and competitors, the result of
the survey questionnaire are used to establish the potential market share.
The following tables are used and is relevant in the computation of the potential
market share:
1 Table 3 - Nearest Food Establishment
2 Table 5 - Order in a Fast Food Restaurant
3 Table 7. Willingness to travel to purchase burger
Below are data extracted from the results of the tally of survey questionnaires.
To determine the competitors, we will refer to Table no. 3 of the tally of the
survey questionnaire. The competitors consist of the nearest food establishment at
which the target consumers usually go to buy snacks and food. The largest
competitors are eateries which comprises of 54% with a frequency of 216 answers.
It is followed by fast food restaurants with 38% having a frequency of 152 answers,
and finally Restaurant with 8% having a frequency of 32 answers.
Using Table no. 5, we can determine what the respondents order when they
go to a fast food restaurant which is relevant to limit the market share of The
Burger Bar since its main product is burger. In the above table, we can see that
only 18% will order burger if they go to a fast food restaurant. Thus only 18% is
relevant to compute the market share of The Burger Bar.

Table No. 7 is used to determine what percentage of the respondents are

willing to travel to The Burger Bar to purchase burger. Only the 55% of the
respondents are willing to travel, and thus, is the only percentage relevant in the
computation of the market share.
Using the relevant data gathered from the tables used, the potential market
share of The Burger Bar was computed as follows:
Nearest Food
establishment

Table 25 Market Share Analysis

A
B
C
Market
Respondent
Willingness
Share
who orders
to travel to
before
burger in Fast
The Burger
entry
Food Resto
Bar (Table
(Table
(Table No. 5)
No. 7)
No. 1)

D
Computed
potential
Market
Share after
entry
(A x B x C)

Restaurant

8%

8%

Eatery/Karinderia

54%

54%

Fast Food Resto

(Burger Fast
Food Resto)
Fast Food Resto
(Other Fast Food
Resto)
The Burger Bar
(a Fast Food
Resto)

38%

18%

45%

3.078%

38%

82%
(does not order
burger)
(38% x 18%)

31.16%

55%

3.762%

The market share before the entry of The Burger Bar and its potential market
share after penetration into the market are shown below.
Figure 3. Market Share Before Market Entry of Burger Bar

Market Share
8%
54%

Restaurant

Fast Foods

38%

Eatery/ Karinderia

Figure 4. Market Share After Market Entry of Burger Bar

Market Share
8%
54%

38%

Restaurant

Fast Foods

Eatery/ Karinderia

3.078
%
31.16
%
3.762
%

Marketing Strategies

Burger Fast
Food Resto
Other Fast Food
Resto
The Burger Bar

Product, Place, Pricing, and Promotion Strategies (4 Ps Analysis)

Product
The Burger Bar is a food establishment that will offer a wide variety of
burgers to its target customers around the vicinity of El Pueblo condominiums.
Listed in the menu are as follows:
Table 26 Regular Burgers
Regular Burger
Cheese Burger
Bacon Burger
Chicken Burger
*this group will comprise burgers with sizes of 4.5 inches only

Table 27 Special Burgers

Special Burger
Ice-cream filled burger with
Ice-Cream Burger
flavours of chocolate, vanilla,
keso, ube, and strawberry
It
A special type of burger for
health-conscious
customers.
Veggie Burger
Buns
are
made
with
malunggay and patties that are
made with squash
It is a burger filled with the
Pizza Burger
toppings of typical pizza being
served in the market
A usual type of burger which
comes with three different kind
Three-Cheese Burger
of cheeses (parmesan cheese,
mozzarella, and cheddar)
*this group will comprise burgers with sizes of 4.5 inches only
will also offer burger that customers can customize, choose specific toppings
(tomato, cucumber, bacon, etc.) sauces (ketchup, mayonnaise, mustard), and

cheeses. Consequently, the proponents decided to introduce this customization

process of burger with one size only:

Name
Barkada

Table 28. Size of Customized Burgers

SIZES OF CUSTOMIZED BURGERS
Quantity
Size
(per piece)
(inches)
1
11

This food business will also serve beverages like sodas, fruits hakes, and
coffee. Moreover, side dishes like French fries, spaghetti, carbonara, and tacos will
be included in the menu.
Place
The location of the proposed business is in 1016 Anonas, Sta. Mesa, Manila
City , El Pueblo Condominium. It is the most strategic location considering the target
market is primarily the tenants of the El Pueblo condominium. as well as the
students from the Polytechnic University and the population within the vicinity which
is expected to include San Juan City and Barangay Daang Bakal, Mandaluyong
City.
El Pueblo Manila or EPM is located near Sta. Mesa Manila beside P.U.P
University. El Puelo Condormitel Manila is best described as clean, economical unit
structures, with well-maintained facilities and landscaped open spaces. The El
Pueblo Manila's concept is a fusion of a condo, a dormitory and a hotel. Offering the
affordability of a dormitory, convenience of a condominium and the amenities of a
hotel.

The exact location of the business within which the operations of the business
are to be conducted is at a commercial space being rented out at the ground floor of
the El Pueblo. There will be no separate head office and all the necessary functions
of management such as accounting of the business is done by the owners/partners
in the same establishment.
Pricing
The pricing schemes used in the determination of the selling price of the
products are the cost plus pricing and penetration pricing. The cost plus pricing
is used in a less competitive environment, where the seller can set his own price. It
is used in pricing the main product of the business which is the burger. Additionally,
penetration pricing is used for the side dishes and beverages which are based on
the result of the survey conducted by the proponents. As for its definition, the
penetration pricing is considered to gain deep market penetration quickly.
Promotion
Branding
The proposed business is called "The Burger Bar". Belonging to the fast food
industry that offers burgers as the main product, we wanted to include the word
"burger" to the name of the business. Also, we added the word "Bar" which is
usually associated with establishment that serves alcoholic beverages and a place
where you go hang-out with friends. Since it is preceded by the word "burger", its
meaning is changed to leave an impression that it is a place where they can go to
have fun with their friends while eating burgers.
Opening Day Promotion

The Burger Bar will open on January 3, 2016. There will be office
establishment blessing and ribbon cutting with the partners and crews. After this,
tarpaulins will be strategically placed within the establishment and to the
surrounding areas along Baranggay Daang Bakal, Mandaluyong City and San Juan
City within the proximity of 5 kilometers. Flyers will be also distributed near the area
and also on nearby campus of Polytechnic University of the Philippines. This will
increase customer awareness that fast food establishment has been opened.
Advertisement
Flyers
Flyers will be distributed to selected condominium units near El Pueblo
Condominium and areas with a proximity of 5 kilometers.About 9000 copies will be
printed.
Figure 5. Sample Flyer

Social Network Sites

Social media marketing has been the most effective marketing tool today. In
this study, a social networking account will be created in Facebook, and
Instagram to promote the service business to consumer. Internet will be the best

tool to provide information to people regarding the newly opened business. With
this, the business can disseminate sufficient information in a low cost, fast and
easier way.
Figure 6. Facebook Home Page

Figure 7. Instagram Page

Figure 7. Instagram Page

Product Offering Market Analysis- Strengths, Weaknesses, Opportunities,

and Threats (SWOT)
In this part of the study, we specify the objective of the business and identify
the internal and external factors that are favourable and unfavourable to achieve
the business objective, which is to become a well-known establishment providing

variety of high quality and low-priced burgers that will surely soothe to the
customers tastes preferences. Stated below are the factors that will have an
impact in the business:
Figure 8. SWOT Analysis

Service Strengths
Variety of burgers- Burger Bar will not just only serve typical burgers in
todays generation. It will also provide different appealing tastes to the customers
like ice cream burger, vegetable burger, pizza burger and 3-cheese burger that will

occupy and compensate to the decreasing utilities (applying and considering the
law on degreasing marginal utility) of many consumers.
Promoting health-wise burgers- as it was said a while ago, Burger Bar will
introduce burgers that are made on real vegetables (malunggay, squash, etc.) for
our health conscious consumers. Fruit smoothies are also in the menu.
Accessible Burger Bar is just one walk away for the tenants residing within
the vicinity of the El Pueblo Condominiums.
Proximity to Students- The snack house is located in Sta. Mesa, Manila
where it can be accessed by thousands of students from Polytechnic University of
the Philippines that will also serve as a potential market for the service offered.
Service Weaknesses
Health Awareness- Some of the targeted customers will have perceptions
on burgers as hazardous to someones healthy lifestyle. Also, those persons with
high cholesterol will possibly not avail the service.
Limited service and Market- Burger Bar caters only services to El Pueblo
condominium unit owners and some students from PUP who are willing to avail
the products offered by the business

Service Opportunities
Customer's Regularity- The customers will find it more hassle to travel a
long distance just to eat foods that the business also offers. Since the pricing and

quality of the products do not differ significantly, they will be more likely to be
invited and eat in the burger bar.
Constant Demand for Burgers - Filipino's love for burgers is not changing.
The fact that the business also offers healthy kind of burger and an option to
choose different toppings, more customers will be induced to buy and try it for
themselves.
Low Competition- Since the nearby food establishment is an eatery
(karinderya), there's a low competition which will insignificantly affect the demand
for the products.
Unfulfilled Customer Needs - El Pueblo Condominium is lacking a food
establishment that can provide fine 'meriendas' and other snacks to its residents.
Service Threats
Existence of substitute products - Substitute products may adversely
affect the products being offered by the business. As a start-up business, it is not
easy to gain the trust and loyalty of the target market.
New regulations - Since the business is engaged in food service, newly
issued regulations affecting the food industry will impose a difficulty to adjust in the
operations of the business.

Market Risk Analysis Matrix

Risk Factor

Risk Description

Risk Mitigation

Risk

Assessment
Sampling Risk

Sample size may

not represent the
actual demand for
the population

Increase the sample

size

Controllable

Customer
Satisfaction

Maintaining good
customer
relationship

Conducting Service
Quality Survey to
Customers

Controllable

Fixed cost

Cost outweigh
benefits

Product
customization

Arranging menu on a
Order confusion
comprehensible
appearance
Table 29 Market Risk Analysis Matrix

Chapter 3

Not Controllable

Controllable

TECHNICAL STUDY
Technical study is concerned with the assessment of the logistical aspects
of a business operation. This aspect determines the feasible combination of the
process flow, machinery and equipment needed, labor requirements, materials
requirements, utility requirements, business location, business layout, project
schedule, and other technical factors that are incidental for the existence of the
business.

Product Description
The proposed business is called "The Burger Bar" which belongs to the fast
food industry. We wanted to include the word "burger" to the name of the business
to make an impression to the customers that the business' flagship is burger. Also,
we added the word "Bar" which is usually associated with establishment that
serves beverages while hanging-out with friends. Since it is preceded by the word
"burger", its meaning is changed to leave an impression that it is a place where
they can go to have fun with their friends while eating burgers.
The burgers are made of various ingredients depending to what type of
burger is being ordered. There will be two types of burgers to be offered, the
regular and special burger.
The available choices of regular burgers are cheese burger, bacon burger
and chicken burger. The ingredients of the offered burgers are the following:

1. Cheese Burger

2.

4.5 inches
113 grams
1 slice
1 slice
1 slice

Burger bun
Beef patty
Cheddar
Tomato
White onion
Burger
dressing

4.5 inches
113 grams
50 grams
1 slice
1 bed

Burger bun
Beef patty
Bacon
Tomato
Lettuce
Burger
dressing

4.5 inches
113 grams
1 slice
1 slice
1 bed

Burger bun
Chicken fillet
White onion
Tomato
Lettuce
Burger
dressing

Bacon Burger

3. Chicken Burger

The special burgers consist of Ice cream burger, Pizza Burger, Vegetable
burger and 3-Cheese burger. The ingredients of the special featured burgers are
the following:

4. Ice

4.5 inches
113 grams
1 bed
1
slice
4.5
inches
1
piece
3 scoops
1 grate

Burger bun
Beef patty
Lettuce
Cheddar
Burger bun
Mozzarella
Ice cream
Parmesan
Whipped

cream Burger

cream
Chocolate
syrup

5.

4.5 inches

Burger bun

113 grams
1 slice
1 slice
1 bed

Veggie patty
White onion
Tomato
Lettuce
Burger
dressing

4.5 inches
113 grams
1 slice
1 slice
3 pieces

Burger bun
Beef patty
White onion
Cheddar
Pepperoni
Pizza sauce

6. Pizza Burger

7. 3-Cheese Burger

Veggie Burger

Since it is a food, which is a basic necessity, it can be availed and

consumed by everyone with the exception of people who have allergic reactions
with the listed properties and ingredients indicated above.

Product Costing
BURGER
Cheese Burger

COST
P 49.05

Bacon Burger

P 57.05

Chicken Burger

P 33.85

Ice cream Burger

P 50

Veggie Burger

P 28.85

Pizza Burger

P 75.75

3-Cheese Burger

P 76.80

Customized Burger

P 96.50

Product Pricing
Using different strategies proposed and formulated by the proponents, the
prices of the following products to be introduced in the market are as follows:

BURGERS
Regular:
Cheese Burger
Bacon Burger
Chicken Burger
Special:
Ice-cream Burger
Veggie Burger
Pizza Burger
3-Cheese Burger
Customized:
Default

P60
P70
P50
P60
P50
P100
P100
P150

BEVERAGES
Soft-drinks
Juices
Coffee

P40
P20
P50

SIDE DISHES
French Fries
Spaghetti
Carbonara

P50
P60
P60

The Burger Bar shall also offer various side dishes like French Fries,
Carbonara and Spaghetti. Carbonara and Spaghetti sauces will be prepared by a
supplier and the other ingredients will be bought from the supermarket supplier. In
addition, beverages such as soft drinks, juices and coffee will be available for
the customers. Soft drinks and juices will be bought from the supermarket supplier
while Starbucks Coffee will supply the coffee needs of the business.
Standard Operating Procedure
As a guide for rendering services in The Burger Bar, the proponents formed
the following process:

1. Receive Customer Order Type

The customer will proceed to the counter where the cashier will get his orders.
The order can be classified into two: regular order and the customized order. If the
order is regular, the customer will immediately pay the order and proceed to the
waiting area (din- in tables). Same process will be done by the customer if his
order is customized. There is only an additional step for him which will be stated in
step 2. After payment, the cashier will issue the official receipt.
2. Customize Toppings
receipt
The customer will Official
proceed
toCustomer
the customized
assembly area where the
pays the order

customer will pinpoint the toppings he wants to add on his burger. First, the
customer will present his official receipt to the assembler (cook) as evidence for his
customized order.
After the customer chooses the toppings, the cook will ask for the name as
reference to the order.
3. Calling the Order Number

Customer Customized Order

After the order is ready to serve, the cook will mention the order and the
name of the customer. The customer will go to the receiving area to claim the
order.

Customer

Customer proceeds to c

Official receipt Customer

Business Location
The location of the proposed business is in 1016 Anonas, Sta. Mesa,
Maynila, Kalakhang Maynila, El Pueblo Condominium. It is the most strategic
location considering the target market is primarily the tenants of the El pueblo
condominium, students from the Polytechnic University of the Philippines and the
population within the vicinity spanning to San Juan City and Brgy. Daang Bakal,
Mandaluyong City.
El Pueblo Manila or EPM is located near Sta. Mesa Manila beside
Polytechnic University of the Philippines. El Pueblo Condominium Manila is best
described as clean, economical unit structures, with well-maintained facilities and

landscaped open spaces. The El Pueblo Manila's concept is a fusion of a condo,

a dormitory and a hotel. The said condominium provides the affordable character
of a dormitory, convenience of a condominium and the amenities of a Hotel.
The exact location of the business within which the operations of the
business are to be conducted is at a commercial space being rented out at the
ground floor of the El Pueblo. There will be no separate head office and all the
necessary functions of management such as accounting of the business is done
by the owners/partners in the same establishment after operating hours.

Business Layout

Production Schedule
The cook and the crew, during the closing hours of the operating day, are
responsible to check whether the stocks are still sufficient for the next days
operation. The report must be submitted to the industrial partner to inform the
managing partners about the inventory stock. After approval from the appropriate
person, procurement shall take place. In order to keep the burger buns and beef
patties fresh and still in good quality condition, the reorder point will take place
every three days for these products. Negotiations are made to the named supplier
for the procurement of the products to avoid stock-out that can affect the daily
operations The negotiation includes that the burger bun will be delivered by the
supplier to the store. On the other hand, the beef patties are to be picked-up in the
store of the supplier.
Other ingredients that can be stored inside the refrigerator(in order to
prolong its life due to its perishable nature) will be procured in bulk manner.

Raw Materials

I. Regular Burgers

Ingredients
Burger bun
Beef patty
Cheddar cheese
Tomato
White onion
Burger dressing
TOTAL COST
Ingredients
Burger bun
Beef patty
Bacon
Tomato
Lettuce
Burger dressing
TOTAL COST
Ingredients
Burger bun
Chicken fillet
Lettuce
Tomato
White onion
Burger dressing
TOTAL COST

II. Special Burgers

CHEESE BURGER
Quantity Required per order
1 piece (4.5in)
113 grams
1 slice
1 slice
1 slice
----BACON BURGER
Quantity Required per order
1 piece (4.5in)
113 grams
50 grams
1 slice
1 piece
----CHICKEN BURGER
Quantity Required per order
1 piece (4.5in)
1 piece
1 piece
1 slice
1 slice
-----

Cost per unit

P 10
25
7
0.80
0.75
5.50
P49.05
Cost per unit
P10
25
15
0.80
0.75
5.50
P 57.05
Cost per unit
P10
15
1.80
0.80
0.75
5.50
P 33.85

III. Customized Burrger

Machinery and Equipment

Component

Description

Refrigerator

Two door
inverter 8.6
Cu Ft.
Bundled
with
10piece knife
set
Electronic

Electric
Griller
Cash
Register
Blender
Cooler Ice
Ceiling Fan

Exhaust Fan
Gas Stove
Water
Dispenser
Grater
Slicer
Kitchen
Torch
Mop
Cooking Pot
Cooking
Tools
Ice
cream
Scooper
TOTAL
COST

Estimate
d Useful
Life
13 years

Unit Cost

Quantity

Total Cost

20, 998.00

P
19,
795.00

9 years

3, 499.00

3, 499.00

6 years

10, 000.00

10, 000.00

1.5L Juicer
Blender
15L Box
52 4 Cane
Blades
with
4
glass light
6.6 Wall
E. Fan
Double
burner
Hot
and
Cold
Multifunctional
3
in
1
function
Profession
als
Blowtorch
360 Spin
Mop
4pcs.
Stainless
Steel
6pcs. set

9 years

1, 264.00

2, 528.00

15 years
10 years

1, 099.00
2, 599.00

1
2

1, 099.00
5, 198.00

10 years

999.00

999.00

10 years

1, 199.00

1, 199.00

15 years

4, 495.00

4, 495.00

---

588.00

588.00

---

355.00

710.00

---

1, 060.00

1, 060.00

---

763.00

763.00

---

1, 199.00

1, 199.00

---

1, 359.00

1, 359.00

3 pcs. set

---

556.00

556.00

---

---

---

---

P
55,
047.00

Furniture and Fixtures

Component

Estimated Useful
Life
10

Quantity

Total cost

P 5, 000.00

Center Table

10

6, 000.00

Long Table

10

17, 000.00

Chairs

10

11

16, 500.00

Hanging
Cabinet
TOTAL COST

10

6, 500.00

---

---

P 51, 000.00

Side Table

Supplies
Component
Utensils

Description
Unit Cost
Quantity
Total Cost
Stainless
299.00
3
P 897.00
Spoon and
Fork (24
pieces)
Store Food
Miscellaneous
----10, 000.00
Supplies
items*
Glass Jars
Jars with
60.00
40
2, 400.00
straw
Store
Miscellaneous
----3, 000.00
Supplies
items**
TOTAL COST
------P 16, 297.00
*includes ketchup, mayonnaise, mustard, table napkin and other food
supplies.
** includes paper of the cash register, garbage bags, paper bags, etc.

Employee Uniform
All employees working on the current day are expected to wear the
business uniform presented below. The business will provide one free polo-shirt
(with the business firms logo) for all the employees including the managing and
industrial partners.
Also, all employees are expected to wear the uniform every operating days.
All cooks are required to wear kitchen apron and hair net. Lastly, employees are
required to maintain good grooming and pleasing personality at all times.

Labor Requirements
As part of this aspect, costing of such salaries is vital in order to accumulate
cost data for the projections of the financial aspect of the study. Thus, the
proponents, in accordance with their agreement and discretions, the following
provisions of the salaries of their employees are as follows:
Job
Cook
Crew
Cashier

Number of persons per

job
3
1
1

Salaries per day

P 400.00
P 200.00
P 250.00

Partners, the owners, are not part of this payment scheme as they are subject
and paid according to the distribution of profits and losses of the partnership.

Work Schedule
Employees are going to work six (6) days a week from Monday to Saturday.
Preparation will start at 12:00 NN until 2:00 PM which will be the start of the 8-hour
operation of the business.

Employees

Industrial
Partner

Monday-Saturday

Sunday

12:00
-2:00
Prepa
ration

2:0010:00
Opera
tion Hours

10:0011:00
Settle
Down

Super
vise
preparation

Super
vise

Super
vise cash
count and
store
arrangement
for closure

Reest
ablish change
fund

Acco
mmodate
customers
orders and
operate cash
receipts

Count
cash and
maintain cash
reports

Day- Off

Cashier

Cooking crew
(Burger)

Cooking crew
(Side Dishes)
Cooking crew
(Beve
rages)
Service Crew

Prepa
re burger
ingredients

Fry
burger and
assemble
customized
burgers

Clean
respective
area

Prepa
re side dishes
ingredients

Cook
side dishes

Clean
respective
area

Stock
refrigerator
with beverage
supplies
Arran
ge tables and
chairs
Ensur
e condiments
and napkins
are

Prepa
re beverages
and smoothies

Clean
respective
area

Prese
nt customers
with menu
Serve
food to dine-in
customers and
clean tables
afterwards

Take
out garbage
and arrange
the tables and
chairs

Utility Requirements
UTILITIES

DESCRIPTION

PAYMENT SCHEME

Electricity

Installed
by
El
Pueblo
Condominium Management at
a fixed rate of P7.29 per
kilowatt-hour
Installed
by
El
Pueblo
Condominium Management at
a fixed rate of P37.26 per
cubic meter
M-gas type of liquefied
petroleum gas will be used
Estimated requirement per
month is 11 kilos for an
amount of P450
It will include fees for the
usage of facilities of the
community and payment for
the routine collection of
garbage being provided by El
Pueblo (16 square meters x
62)

Payment will be in a form

of check to be paid in the
administration office

Water

Gas

Association
due

ESTIMATED
COST
(per month)
P5,000*

Payment will be in a form

of check to be paid in the
administration office

P500*

Payment will be in a form

of cash

P450*

Payment will be in a form

of check to be paid in the
administration office

P992

*There will be uniform amount of requirement per electricity, water, and gas for the
simplicity in determining the total cost of the project
Waste Disposal Management
Each and every one of us in the business is responsible for the cleanliness
and orderliness not just in the area but also in the environment as a whole. It is a
duty incumbent upon us to be disciplined in the proper disposal of wastes.
It will be an office policy to segregate wastes into biodegradable, nonbiodegradable, and recyclable. The Crew will be the one who is responsible for

disposing the wastes. Garbage collector of El Pueblo passes and collects trashes
everyday about 8 oclock in the morning and 4 oclock in the afternoon.
List of Suppliers
LIST OF SUPPLIERS
AND DEALER OF
FIXED ASSETS
Fabicons Bakery

DESCRIPTION

PAYMENT
SCHEME

LOCATION

Local shop

Cash on Delivery

Monterey Sta. Mesa

Branch
Nestle Philippines

Local meat shop

Local manufacturer

Cash upon
purchase
On Credit

OLX

Online store

Bagong Silang,
Caloocan City
Sta. Mesa,
Manila
31 Plaza De,
Makati, Metro
Manila
---

Puregold

Local grocery store

Larrys Furniture
Lazada Philippines
Punu's Special

Local furniture
shop
Online store
Home made foods

Starbucks Coffee

Coffee restaurant

Other Costs

Cash upon
purchase
On Credit
Cash on Delivery

Sta. Mesa,
Manila
Dingalan, Aurora

Cash on Delivery
Cash upon
purchase
Cash upon
purchase

--San Luis,
Pampanga
Sta. Mesa,
Manila

Total Project Cost

Risk Analysis Matrix

RISK FACTOR
Store Space
Inaccessibility
customers

Security

RISK
DESCRIPTION
Limited space to
cater vast
Customers
to The store cannot
be located easily.

RISK
RISK
MITIGATION
ASSESSMENT
Plan for expansion
Relatively
as soon as
Controllable
possible.
Provide
the
Controllable
customers
with
exact direction of
the store through
flyers, banner and
social
media.
The business has Coordinate
with
Controllable
no security guard the security guard
to maintain peace
of El Pueblo
and order.
Condominium.

Chapter 4
MANAGEMENT AND LEGAL STUDY
This study focuses on the delegation of duties and functions of the
management or each employee in the firm. It includes the conduct of services
and internal control procedures. This aspect also includes the legal aspects of
the business like legal compliance before setting up the business, legal
compliance during the operation of the business and conformance to tax
regulations.
The general objective of this aspect is to establish the rules and regulations
set by the management to render quality service and products, at the same time
operate in accordance to legal requirements.
The specific objectives of this aspect are as follows:
1 To provide an organizational chart;
2 To specify the duties and functions of the management and each
employee;
3 To establish internal control procedures;
4 To set business rules and regulations for the personnel, rendering
services and collections of payments; and
5 To determine the compliance in law such as labor code and taxation
laws that affects the business.

FORM OF OWNERSHIP
The form of business that we are planning to establish is a partnership. It is to
be registered with the Securities and Exchange Commission (SEC). We chose
partnership as a kind of business organization simply because of availability of
capital investment through the contribution from respective partners. Or in case of
unacceptable and unanticipated continuous losses, our business may liquidate
without any further complications.
Registration is done by filing Articles of Partnership. The articles of
partnership set forth all the terms and conditions regarding to capital contributions,
profit and loss sharing, and the general description and information about the
business to be established, which all are mutually agreed by the partners.

Vision
Our Vision at The Burger Bar is to be the food establishment known for its
unique burger styles and presentations and at the same time known for its
delightful and delicious products.

Mission

Our Mission at The Burger Bar is to offer a high quality, new food experience
for every customers by using the classical burger menus with different styles and
unique toppings at a reasonable price.

Core Values
The Burger Bar is dedicated to promote a high quality, great tasting and
affordable food to our valued customers. Our commitment for our products are the
foundation that we want to impart not only to our customers but also to the food
industry. We are also committed to support our people- employees and copartners- because without them, The Burger Bar will not succeed to our objectives,
mission, and vision. Lastly, our promise to promote adherence to the rules and
policies established by The Burger Bar shall be embraced by all and constantly
emphasized to ensure compliance as well as accountability and responsibility.

Organizational Chart

Manpower Requirements
Role
Managing
Partner

Job Profile
Maintains

staff

by

Job
Requirements
recruiting, Researchers of this

selecting, orienting, and training proposal

employees.
Interested
Maintaining a safe, secure, legal
developing
work environment and developing
burger styles
personal growth opportunities.
Authorize
to
sign
essential products
business

documents

in
new
and

and Must be one of the

responsible for the accounting.

partners
Establishes strategic goals by
Must have strong
gathering
pertinent
business,
business
and
financial, service, and operations
customer
focus
information;
identifying
and
orientation
evaluating trends and options;
Must be computer
choosing a course of action;
literate
defining objectives; evaluating
With
pleasing
outcomes.
Responsible for deciding on personality

matters

concerning

business Must have experience

expansion and investments.

Approving
disbursements

in food business
for
Knowledgeable

in

material and regular procurement

kitchen

works

and

of the business.
Industrial
Partner

Responsible
operations

cooking
day-to-day Male or Female

for
such

as

planning, 23

years

old

and

monitoring, disciplining employees; above

developing, coordinating, policies, Must be at least high
procedures,
standards.
Maintains

and

productivity school graduate

quality

service

by

enforcing quality and customer

service standards; analyzing and
resolving quality and customer
service
trends;

problems;
recommending

identifying
system

Must be one of the

partners
Proficient in both oral
and

written

communication
Must

have

business
improvements.
Responsible for the safekeeping, customer
monitoring

and

purchase

strong
and
focus

of orientation

inventory.
Must be
Responsible for the deposit of
literate
weekly collections.
Responsible for making a report With
summary of the daily operations to personality

computer

pleasing

the managing partner.

Must have experience
Approves the disbursement of the
in food business
cashier
for
small
and
Knowledgeable
in
miscellaneous expenses.
kitchen works and
cooking
Cashier

- Responsible for safekeeping the Male or Female

cash payments of the customer.
23 years old
- In charge of submitting the cash
above
payments to the industrial partner
Trustworthy
for deposits.
Responsible for recording cash honest
disbursements.

With

and

and

pleasing

personality
Must have experience
in food business
Knowledgeable
kitchen

in

works

and

written

and

cooking
Good

communication skills
Cook

Responsible

for

preparing

the Must be 21 years old

order of the customer based on the and above

customer preference.
Male or female
Authorize to request for the reorder
Must be a high school
of supplies.
Responsible for maintaining the graduate
cleanliness in their assembly area. With
pleasing
In charge of sustaining high quality
personality
service
through
delicious
Knowledgeable
in
preparation of burgers.
making drinks, side
dishes, and burger.
Must
enough

be

flexible

to

different

handle
and/or

simultaneous orders.
Dedicated and careful
in making the burger
orders.
Neat and organized in
doing work
Must have knowledge
in repairing equipment
in case there is a
sudden
Crew

equipment

breakdown.
Responsible for maintaining the Male or Female

cleanliness in the store, especially Must have pleasing

within the dine-in area.
personality
In charge of making sure that the
Industrious and wellgarbage are sealed properly.
Making sure that the floors, organized
windows, and walls are clean.
Tidy
and
In case of many orders, he is
knowledgeable
in
responsible to assist the customer
cleaning the store
in handling their orders to their
Must have knowledge
respective tables.
in repairing equipment
in case there is a
sudden

equipment

breakdown
Flexible

enough

in

transferring from one

task to another

Organizational Policies and Procedures

The Burger Bar establishes organizational policies that will govern all
present and future employees. For the effective implementation of these policies,
all employees of the company must be knowledgeable about the following rules
and regulations as for the guidance and compliance. Violations of any provisions
of this constitute for ground of disciplinary action.

Personnel Policies
The partners will set the criteria for the different job positions available in the
organization. The primary qualification that will govern the selection of a person
in a specified job are the following:
1. Educational attainment
2. Work experience
3. Personality
4. Good reputation
5. Moral Character
Other qualification that will be taken into consideration if all of the primary
criteria are present. These are:
-

Every applicant should undergo the basic requirements such as interviews

and initial screening.

After an applicant finishes the interviews and initial screening, the selected
applicant shall undertake a basic training and orientation about the internal
control, operations procedures inside the store and also in order to acquire
needed technical skills and knowledge that will be useful for the position
they are applying for.

Generally, employee will work for eight hours only. Any excess in the
standard hours allowed will be paid as overtime pay but late start of arrival
will be computed and netted to the excess payment. It is part of the

business policy that the preparation time (before the regular hours) will not
form part of the employees labor hours.
-

Every day, the industrial partner is assigned to the day-to-day supervision

and operation of business.

Renewal of contracts for the cook and cashier will basically depends on
their performance reviews.

Service Policies
The Burger Bar will operate from 2:00 p.m. 10:00 p.m., from Monday to
Saturday. The cook personnel are the ones who shall pick the selected toppings
of the customers (in case of customized order). On the other hand, customer will
get the product in the receiving area after the order number card is called. Water,
tissues, plastic spoons and forks and other extra sauces are accessible outside
the toppings and cashier area where the customers are expected to
accommodate their necessities.

Payment Policies
Right after the order is selected, the cashier will bill the order. The cashier
shall receive the payment first before finalizing the receipt and giving it to the
customer. For the first year of operation, The Burger Bar will only accept cash
payments. Credit/debit cards will not be accommodated during the early
establishment of the business.

Food and Sanitary Policies

Employees are required to make sure that all storages of burger buns shall
be inspected daily if it is clean and free from dusts. The designated crew is
responsible to clean the dine-in area. Garbage trash cans shall be properly
disinfected and covered. The glass display cabinet as well as the toppings tray
shall also be cleaned. The assembly area for the burger shall free of residues
from breads and dusts. The cooks within the kitchen area are responsible for this
duty. The cooking area shall always be clean and the cooking utensils shall be
sterilized before every store opening and closing. Lastly, all employees shall
wear hair net, kitchen apron, and proper uniform during business hours.

Equipment Policies
Equipment are acquired from a trusted supplier. Proper maintenance of the
equipment will allow it to be useful for a period of years. But in some certain
cases, equipment that is not working will be subject to repair. If repair is not cost
efficient, it may be decided to buy a new equipment. Old equipment will be
disposed when the equipment is obsolete, fully-depreciated, and cannot be
repaired. The depreciation to be used for all the equipment is straight-line
method of depreciation.

Finance Policies

Partners are required to contribute an additional share to the capital, except

an industrial partner, to save the venture from an imminent loss of the business.
Also, there shall be a regular payment for the loan acquired by the business.
These payment shall compose of the interest payment for the outstanding
balance and the payment applied to the principal loan.

Code of Ethics
In the furtherance of the responsibilities established to all partners and
employees of The Burger Bar, all shall be proactively committed:
Honest and Ethical Conduct
-

To promote an ethical environment with values where all partners and

employees are encourage to comply with all laws and Company policies.

To set the appropriate tone at the top by observing the highest ethical
standards and by acting with honesty and integrity.
Performance of Duties

To act in good faith in the best interests of the business and its members,
including acting responsibly with due care and diligence in the performance of
his or her duties.
Conflict of Interest

To maintain loyalty to the enterprise and avoid any situations that create or
appear to create a conflict of interest between his or her personal interests
and the interests of the business. Disclose to the managing partners any

transaction or relationship that reasonably could be expected to give rise to

such a conflict.

Financial Records and Periodic Reporting

-

Provide full, fair, accurate, timely and understandable disclosure in

compliance with all applicable laws and regulations in all the reports filed with
or submitted to the Securities and Exchange Commission, applicable
exchanges and in other public communications. Comply with all the
organizational policies and procedures designed to promote compliance and
refrain from knowingly misrepresenting, omitting or causing others to
misrepresent

or

omit

any

material

information

in

any

reports

or

communications.
Business Opportunity
-

Refrain from using business property, information or position for personal

gain.

Project Schedule

Internal Controls

Internal controls are effected by the management and other personnel,

designed to provide reasonable assurance regarding the achievement of
objectives in the following categories:
1. Effectiveness and efficiency of operations.
2. Reliability of financial reporting.
3. Compliance with applicable laws and regulations
The first category addresses the proposed business' basic business
objectives, including performance and profitability goals and safeguarding of
resources. The second relates to the preparation of reliable published financial
statements, including interim and condensed financial statements and selected
financial data derived from such statements, such as earnings releases, reported
publicly. The third deals with complying with those laws and regulations to which
the entity is subject.
1. Effectiveness and efficiency of operations (Administrative Controls)

Segregation of duties and functions among critical functions like the handling
of cash and keeping of records of cash. The managing partners are the one
to do the management and accounting of the business.

Documenting the firms organization structure

Defining the line of authority and responsibility of each owner

Developing personnel recruiting and hiring policies

Setting policies and procedures, how should they perform their job duties

Establishing written code of conduct of employees

Providing trainings and proper procedures for employees

Limiting each employee to 8 hours of regular work

2. Reliability of Financial Reporting (Accounting Controls)

Authorization of transaction; requires purchases, payroll, and disbursements

to be authorized by the designated owner/s

Proper designed records and

documents; Sequential numbering of

documents and duplicates.

Issue receipts for cash, using a pre-numbered receipts.

Require the reconciliation by the person responsible on a monthly basis and

reviewed by the managing partner.

Examine expense reports.

Count equipment inventory periodically.

3. Compliance with applicable laws and regulations (Compliance Controls)

Antitrust and Competition Laws

Employees may not engage in anti-competitive conduct nor are they

permitted to take unfair advantage of any customer, supplier, competitor or other

person through manipulation, concealment, and misrepresentation of material facts
or other unfair-dealing practice.

Environmental Laws and Regulations

The Burger Bar is committed in conducting our business in an

environmentally sound manner. In addition to carrying out the business-wide

programs, the proposed business has initiated, all of our employees are required
to be familiar with environmental laws and regulations relevant to their employment
responsibilities and to comply with them.

Healthcare Compliance and Consumer Products

No aspect of our business is more subject to governmental regulation than

the approval, sales and marketing of food that is being offered. Due to the

complexity of many of these regulations, we take particular care to ensure

employees are aware of regulatory requirements and comply with them.

Employment and Labor Laws and Policies

Our most important resource is our employees. It is our policy to comply

with all applicable laws and regulations, including those concerning hours,
compensation,

opportunity,

human

rights

and

working

conditions.

The

management, which consists of the owners themselves, strictly prohibits

discrimination or harassment against any employee because of the individuals
race, color, religion, gender, sexual orientation, national origin, age, disability,
veterans status or any status protected by law.

Compliance with Security Laws

An employee who knows important information about the business that has

not been disclosed to the public must keep that information confidential.
Employees may not buy or sell securities of any other company using important
non-public information obtained in the performance of their duties or provide that
information to others that are related to the proposed business.

Compliance and Monitoring

The managing partners will be specifically responsible for overseeing and

approving top- level and employee-specific compliance policies, procedures and

programs, and periodically reporting to the other partners, including reports on the
state of compliance.
The specified partner play a key role in overseeing the effectiveness of
compliance programs. He/she will carry out this role by setting standards and
policies, providing business-wide training on new standards and policies, and
reviewing the results of audits, testing and monitoring, programs, resource
allocations, training plans, and management action plan reviews.

Legal and Taxation Aspect

Legal Requirements
Place of
Fee /
Registratio

Requirements

Certificate Issued
Charge

n
Security and
Exchange

Articles

of

Partnership

CoSEC Certificate
P 5,040

Commission

SEC registration
Business Clearance

Respective
One Valid ID

(renewable

every

P200

Barangay
year)
Mayors Permit and
City Mayors

SEC registration

Licenses

Office

Lease Contract

(renewable
year)

every

P4000

SEC Registration
Articles

of

Co-

Bureau of

P600
BIR Registration No.

Partnership

(payme

Internal

Partnerships TIN
Mayors Permit and

Revenue

nt to be
(renewable

every

Licenses

made
year)
in AAB)
Community

Community

Tax

Filled up community

Certificate/ Sedula

tax form

(renewable

P500
Tax

year)
VAT
VAT

Filled

up

Registration

VAT
(renewable

Registration

every

every

P500

registration form
year)

Applicable Labor Laws

The business shall be governed by the provisions of the Labor Code of the
Philippines. Minimum wage is fixed by the Regional Tripartite Productivity Wage
and Productivity Board of the Department of Labor and Employment (Art.99). And
as mentioned in Art. 124 of the Labor Code, all workers shall receive not less than
the prescribed wage rates based on the normal working hours of eight (8) hours a
day. As per wage order no.NCR-20, effective June 2, 2016, the applicable
minimum wage rate for the business which belongs to Service Establishment
employing 15 workers or less is P454.00.

On the contrary, section 4 of the R.A 6727 or the Wage Rationalization Act,
states that a service establishment with not more than 10 employees, may pay
their employees below the minimum wage rates on condition that the business
must file a request for exemption from compliance with wage orders with the
National Wage and Productivity Council (NWPC).
Taxes
Income Tax
A business partnership is one formed for profit and it is taxable as a
corporation, which is subject to a thirty percent (30%) income tax rate. From Sec.
27 of the NIRC, except as otherwise provided in this code, an income tax of thirty
percent (30%), effective January 9, 2009, is hereby imposed upon the taxable
income derived during each taxable year from all sources within and without the
Philippines.
Value Added Tax
Under the NIRC, the business is considered a seller of services. According
to Section 116 of the NIRC, any natural or juridical person whose annual actual
or expected gross receipts exceed P1,919,500 shall pay a tax equivalent to
twelve percent (12%) of his gross monthly receipts. The enterprise will only pay
VAT if it exceeds the said threshold.

Documentary Stamp Tax

Documentary Stamp Tax is a national tax levied upon a right or privilege. It

is a charge on transactions evidenced by stamps required to be attached in
corresponding documents, instruments and papers. On each lease, agreement,
memorandum, or contract for hire, use or rent of any lands or tenements, or
portion thereof, P3 for the first P2000 plus P1 for every P1000 in excess of
P2000 for each year of term of such contract or agreement.

Community Tax
Community tax is a tax being imposed to an applicant, at least 18 years of
age, on the locality where he resides. After the payment of community tax, a
community tax certificate (CTC), or most commonly known as the cedula, will be
issued. This CTC is attached in registering a new business. Basic community tax
is P500 and additional community tax for a corporation is P2 for every P5,000 of
gross receipts or earnings from business in the Philippines by a corporation. The
maximum additional community tax for a corporation shall not exceed P10,000.

Risk Analysis Matrix

Risk
Factor
Job
qualifications
for applicants

Risk
Description
The
job
qualifications
for
the
applicants are
set too high
that
many
applicants
might not be

Risk Mitigation
Management should set
job qualifications that are
not too high so that
applicants can comply
with
the
set
qualifications.

Risk
Assessment
Controllable

able
to
comply.
The form of
business
is
partnership
Probable loss
so any unpaid
up
to
the
liabilities will
personal
be liquidated
assets
of
using
the
partners
personal
assets of the
partners.

Inadequate
crews
during
business
hours

There
is
only three
cooks
working per
day,
plus
one
crew
per day.

Management
should
make sure that the daily
and monthly target profit
is being met and all
possible solutions to
minimize costs should
be
taken
into
consideration.

Controllable

Management
should
train all the crews in
performing
general
functions inside the
kitchen area so that in
case of congested
orders, all can be
accommodated
through the help of
other crew, aside from
the cooks.

Controllable

Chapter 5
FINANCIAL STUDY
This aspect determines the feasibility in terms of financial information. This
consists of the major financial assumptions that will be used to compute
contingent conditions. Also, included in this aspect is the computation of
projected income, financial statements for the five-year period and the financial

ratios that will be the best indicators for the feasibility of a business
establishment.
Major Financial Assumption:

Revenue will be based on the Market Preference in the survey. The

allocation of annual demand is presented in the survey analysis of market
study

Prices, Costs and Expenses will be subject to inflation rate of 2.7% for the
first three years and 3.8% for every year thereafter. Inflation rate is based on
the rate provided in the website of the Central Bank of the Philippines in
reference with the Philippine Statistics Authority.

In summary of the Macroeconomics Analysis:

Year
Macroeconomics
Growth Rate
Sta. Mesa
San Juan City
Daang-Bakal
Average

Ref.

PS
A
PS
A
PS
A

1.43%

1.43%

1.43%

1.43%

1.43%

0.12%

0.12%

0.12%

0.12%

0.12%

3.12%

3.12%

3.12%

3.12%

3.12%

1.56%

Inflation Rate
Cost
Revenue

1.56%

1.56%

1.56%

1.56%

2.70%
2.70%

2.70%
2.70%

3.80%
3.80%

3.80%
3.80%

Population
Sta. Mesa

113,244

114,863

116,506

118,172

119,861

San Juan City

122,473

122,62
0

122,76
8

122,91
5

123,06
2

Daang-Bakal
TOTAL
Annual Demand

3,892

4,013

4,139

4,268

4,401

239,609

241,49
7

243,41
2

245,35
4

247,32
5

21824

21995

22170

22347

22526

Other overhead cost is 2.5% of the Cost of Sales. This is to cover other
miscellaneous items and unexpected expenses of the company

Advertising expenses will be at P 220,000 every year subject to inflation rate

assuming that the management will not decide to change the advertising
regiment.

Ending Inventory is 5% of total Purchases. Purchases on credit is 50% of

total purchases and 60% were paid in the first year and 40% for the next
year. Payment scheme is likewise to be applies on Overhead costs that are
on credit. Overhead on credit is 40% of the total overhead

Supplies will be purchased at the amount that ending inventory will be 25%
of the supplies expended in the current year.

Income Tax is paid as filed in the Bureau of Internal Revenue. Thus, only
the last quarter income tax expense is treated as to be income tax payable
for the respective years.

Sources of Funds
Total funds for the business will mainly came from investment capital of
partners. The amount of equity capital invested is P300, 000. Also, P 100,000 8%

loan from BDO will be contributed to the partnership with a total capital of P 400,
000.
Projected Financial Statements
Projected financial statements generally cover the first five (5) years of
operations of the business.
A sample projected Income Statement, Balance Sheet, and Cash Flow
Statement is presented below:

Projected Income Statement

Projected Statement of Changes in Equity

Projected Balance Sheet

Projected Statement of Cash Flows

Financial Analysis
The projected financial statements are analyzed as to how the enterprise
will perform and to measure its performance using tools in financial analysis like
financial ratios like liquidity, solvency and profitability ratios.
Financial analysis is important because it will determine the profitability or
viability of the business venture based on the projected financial statements
presented. Some of the tools in financial analysis are the following:
Current Ratio

Quick Ratio

Inventory Turnover

Capital Turnover

Gross Profit Margin

Net Profit Margin

Debt-to-Equity Ratio

Debt Ratio

Capital Budgeting Techniques

Capital budgeting deals with analyzing the profitability and liquidity of a

given project proposal. It is premised on the following:

Funds are available

Business opportunities abound waiting to be tapped
Business opportunities are subject to quantitative evaluation

Payback Period

Payback = 2 + 105032.77/141227.21 = 2.75 years

Weighted Accumulated Cost of Capital

Net Present Value

Profitability Index
This is the ratio that compares the present value of net cash flows to the
projects net investment. It is computed by dividing the present value of cash
flows by the initial investment.
Profitability Index gauges the firms efficiency in its use of capital; the
higher the index, the more efficient is the capital investment. A profitability of 1 or
greater than 1 is an acceptable project.

Accounting Rate of Return

Economic Value Added

Internal Rate of Return

Financial Risk Analysis Matrix

RISK FACTOR
Increasing loan
interest rates
Payback Period
is longer than
expected

Net Losses in
the first two
years

High Debt/
Equity Ratio

RISK DESCRIPTION
Banks charges higher
interest rates on future
years
Calculated payback
period may be longer
than 2 years.
Investors will wait
longer for return of
capital
Computed net losses
for the first two years
may not be recovered
in the next succeeding
periods
Percentage of Debt in
the total assets is
higher than the
Percentage of Equity

RISK
MITIGATION
Look for other
suppliers of
cleaning supplies
Reduce cash
expenditures as
much as possible
Complex analysis
of pricing
decisions and
cost formation of
the business
Change
investment
portfolio
component by
reducing
borrowings

RISK
ASSESSMENT
Controllable

Controllable

Controllable

Controllable

Chapter 6
SOCIO-ECONOMIC STUDY
Socio-economic aspect of the feasibility study is significant part that
supports the desirability of the proposed business. This part of the study is the
expected contributions and impact of "The Burger Bar" to the society, customers,
employees, government, and environment.
The specific objectives of this aspect are as follows:
1. To determine the effects of establishing the business to the people in the
2.
3.
4.
5.

community and to the society.

To determine the impact of the business to the customers.
To determine the contributions of the business to the government.
To determine the contributions of the business to the food service industry.
To ensure that environment are safe and maintained all throughout the

conduct of the business.

Socio Economic Contributions:
Contribution to the Society
Service crews will be hired to work and serve the customers, thus providing
employment opportunity. It will be able to secure a job and help unemployed

individuals who wishes to apply as part of the business.

Contribution to the Customers
The target market of the proposed business are the tenants of El Pueblo
condominium as well as the consumer market within the vicinity spanning to
Barangay Daang Bakal, Mandaluyong City and San Juan City. The business
being established at a commercial space at the ground floor of El Pueblo, it
will save them time and effort, the tenants of El Pueblo to be particular, to
buy snacks and refreshments. They can be assured of the freshness of the
burgers and food that they will buy. Aside from the time and energy savings,

the proposed business also offers wide range of menu that also caters to
health conscious individuals by offering "veggie burgers" alongside with
fresh fruit smoothies. There are also special burgers to choose from for the
customers to try if they are bored with usual burgers and want to try
something new. Not only burgers, but there are also other choices of side

dishes to choose from and venture at.

Contribution to the Government
Every business establishment will be of great help to the government. The
proposed business will definitely contribute additional source of revenue to
the government by means of paying the right taxes.

Contribution to the Food Service Industry

By adding twists and offering new variance of burgers, such as ice cream
burger, pizza burger and such, there is a large chance of attracting new
customers that is not a fan of the usual fast food menu offers. Moving
towards a healthier lifestyle by including in the menu the vegetable burgers
and reduce the association of fast food to unhealthy living in any way
possible. It will contribute to the reputation of the fast food industry as a
whole. The establishment of the business is also expected to contribute to
the growth of the food service industry. Thus, making the public aware of the
new trends to try and new offers from the fast food industry.

Contribution to the Environment

The business helps to preserve and maintain the environment by disposing

the wastes accordingly and making a systematic cleaning program that is
environment-friendly. Also, by strict adherence to the rules set by the
management at proper waste disposal and making efforts of finding new
ways on how to reduce the waste and recycle it to beneficial by-products.
Socio-Economic Risk Analysis Matrix
Risk Factor

Risk Description

Risk Mitigation

Employment
Rate

The investment
plan does not
contribute to the
increase in
employment rate in
Makati.

Encourage
Controllable
employment of
applicants near Sta.
Mesa area.

Customers
Satisfaction

The marketing plan

will not be able to
meet the
expectations of the
customer

Controllable

Payment of
Taxes

The business will

not be able to
contribute to
Government by
paying at the right
time at the right
amount
The marketing plan
won't able to
promote the Fast
Food Industry
positively

Build good
relationship with
supplier to ensure
maximum quality of
ingredients and
close supervision of
crews for optimum
service
The managing
partner will report
quarterly to other
partners prior to
filing of taxes
The business will
always be updated
with the latest trend
to improve the
service and
products offered

Controllable

Industry
Promotion

Risk
Assessment

Controllable

Environment
Maintenance

The technical plan

won't be able to
contribute positively
to the environment

Monthly evaluation
of crew in charge of
waste disposal to
ensure that waste
disposal policy are
strictly adhered to.

Controllable

Table __ Socio-Economic Risk Analysis Matrix

APPENDICES
Financial Schedules
Schedule 1: Revenue

Schedule 2: Cost

Schedule 3: Depreciation Expense

Schedule 4: Rent Expense

Schedule 5: Utilities Expense

Schedule 6: Supplies Expense

Schedule 7: Advertising Expense

Schedule 8: Salaries Expense

Schedule 9: Taxes and Licenses

Schedule 10: Interest Expense

Schedule 11: Other Overhead

Schedule 12: Income Tax Expense

Schedule 13: Cash

Schedule 14: Inventory

Schedule 15: Supplies

Schedule 16: Property Plant and Equipment- net

Schedule 17: Accounts Payable

Schedule 18: Income Tax Payable

Schedule 19: Loans Payable