I.

SUMMARY OF THE PROJECT

A. Name of the Enterprise

The name of the enterprise will be Epicurean. Epicurean is rooted from the name
of the ancient philosopher, Epicurus. Epicurus advanced the philosophy Epicureanism,
which teaches that the greatest good is to seek modern pleasures in order to attain a
state of tranquility, freedom from fear, and absence from bodily pain. Epicurean as an
adjective, means appreciation of good food and drink. The proponents have chosen the
name because Epicurean, as an enterprise, aims to serve good food, drink, and service
to its clientele.
Epicureans logo sports white chocolate bars which form the letters E and C. It
symbolizes Epicureans primary ingredient in all the food and drink that it will serve,
which is chocolate. The logos dominant color is brown which symbolizes the color of
chocolates.
 B. Location
The proponents chose to establish Epicurean in a 150 sq.m. commercial space
available for lease situated at the ground floor of Fabie Building, Poblacion District,
Davao City. It is located in the downtown area in front of UCCP Churchs Shalom
Center, at the back of Gaisano South Citimall, and few blocks away from Apo View
Hotel and Peoples Park.
The following are the factors considered in choosing the location. First, the initial
capital outlay in putting up the shop would be lesser. The cost of renovation and
monthly rental fee would be cheaper than the cost of buying a land and constructing a
new building. Second, the shop would be accessible to its customers since it would be
situated in the downtown area where several jeepneys pass. Lastly, the place would be
conducive for study, business meetings, hang-out, and the like because the location of
the shop is not crowded nor busy.
C. Descriptive Definition of the Project
The project is proposed by a group of fifth year students of Ateneo de Davao
University enrolled in the course, Bachelor of Science in Accountancy. The proposition
is due to the proponents foreseen potential of establishing a chocolate house in Davao
City i.e. the advantages of being a first mover in the industry.
Epicurean, the name of the business proposed, is a conceptual chocolate house
in Davao City that would be established through a contract of partnership. As a
chocolate house, it will offer products that have chocolate as the main ingredient such
as chocolate cakes, cupcakes, cookies, ice cream, and hot and cold chocolate drinks. It
would be located at Fabie Building, Pelayo Street, Poblacion District, Davao City.
Epicurean would also adopt the concept of a patisserie which would have the
products displayed for easy selection. As a unique concept in Davao City, the business
is expected to attract college or senior high school students, young professionals, and
other businessmen. Specifically, the target market of Epicurean would be those with
ages ranging between 15 and 34 and have an income or allowance ranging between
Php 1001 and above.
In Davao City, there is only one known shop with the same concept with
Epicurean. This store has a different way of positioning itself in the market. This means
that there is no direct competition in the chocolate house industry. However, the
business would have many indirect competitors such as coffee shops and pastry shops.
The coffee shop industry, especially homegrown coffee shops, is continually
flourishing in Davao City (DavaoFoodTripper, 2014). Nonetheless, Epicurean, with
something new to offer, is believed to have a huge potential of being a successful and
profitable business venture.
D. Long Range Objectives
E. Feasibility Criteria
Market
The main concern under this criterion is the capability of the business to
competitively enter the market. The business should consider the existence of a
demand gap in the market. If such gap is present, the business should identify if
it can establish a competitive position in the market despite of the existing
competitors. Also, the business should determine whether its production capacity
is sufficient to meet the demand of the market.
Technical
Important considerations under technical feasibility are the availability of
raw materials needed for the production especially the seasonality of fruits to be
used, availability of technology relevant to Epicureans industry that are
affordable and cost-efficient, availability of spaces for Epicureans location, and
availability of manpower.
Financial
The Return of Investment (ROI) and the Payback Period are the measures
that critically quantify the financial feasibility of the project. These factors will be
compared to the Industry Standard and the expectations of the probable
 investors. These factors are affected by the (1) availability and mix of equity and
debt sources of financing and (2) the discount rate available in the market.
Socio-economic
The project desires to provide jobs to a number of unemployed people in the
community near its location. The main beneficiary of benefits from the enterprise
will be its employees. In hiring employees, Epicurean aims to give priority to
college students who need the money in the payment of their tuition fees.
Organization and management
The primary considerations in choosing what type of organization and
management scheme to apply for Epicurean is the sufficiency of initial financing
that it could provide to the entity, and how efficient and effective it will be in the
implementation of the project.
F. Highlights
History of the Project
The idea of a chocolate house emerged after the proponents read an online
article stating that in the present, one of the businesses with high potential for booming
is a chocolate house. The idea was then supported by the latest news about Malagos
Chocolate being awarded with Silver Awards in the 2015 International Chocolate
Awards in Germany. Given that Philippine chocolate is already internationally
recognized as good chocolate, the proponents were convinced of the great potential of
establishing a chocolate house.
The proponents then observed and researched on the existing chocolate houses
in Davao City and found only one which is Chocolatier. The said business is located at
Abreeza Mall, Davao City. The idea that the proponents had in mind for a chocolate
house, however, is in an independent location like most coffee shops and not attached
to a mall or any bigger entities. This made the idea unique and convinced the
proponents to pursue the project. Since there are no existing chocolate houses that
positions itself the way the proponents plan to position their conceptual chocolate
house, the proponents pursued the project and named the conceptual chocolate house,
Epicurean.
Nature of the Industry
o Description
A patisserie is a type of French or Belgian bakery that specializes in pastries and
sweets. It also offers good service to its clientele. In Davao, the equivalent types of shop
are coffee and pastry shops. The coffee and pastry shop industry poses a tight
competition in the market due to the many number of shops littering the city.
o Role in the economy
The Epicurean Chocolates belongs to the Hotel and Restaurant Industry. Based
on the census conducted by the Philippine Statistics Authority (PSA) on the year 2012,
the Restaurant and Mobile Food Service Activities, under the Hotel and Restaurant
Industry, garnered the highest number of establishments in the country which is around
70% of the whole industry. With this, the Restaurant and Mobile Food Service Activities
give the highest percentage of employment and highest compensation to its employees
within its industry. It also ranked as the highest income earner and biggest expenditure
spender.
o Products/product lines
A patisserie usually offers sweets such as cakes, cupcakes, cookies, pancakes,
ice cream, and hot and cold drinks. Epicurean will offer all of the mentioned products
with the exception of pancakes.
Problems faced by the industry
The chocolate house industry has not yet been established in Davao City.
Hence, it faces the challenge of introduction to the market. There is no guarantee that
businesses in this industry would garner market acceptance. In addition, chocolate
products are also offered in most coffee and pastry shops which makes the industry
prone to being overmastered by the industry of coffee shops and pastry shops which
are continually thriving in Davao City.
Modes of Financing
 Two modes of financing will be used. They are the following:
1. Long Term borrowings from banks
2. Capital Contributions from partners.
Specific capital structure is indicated in Chapter IV | Financial Aspect of this
paper.
Investment Cost and Initial Working Capital
The project will be financed by the capital contributions of the partners and term
borrowings from local banks. The Initial working capital will be used to pay for
Epicureans Tax Contributions and Regulatory Fees for Partnership Registration. These
will enable the business to operate and assure its customers that they are duly
authorized to open a patisserie. Also, the initial investment will be used to fund the
renovation of the store. It will require a huge percentage of the initial investment.
Moreover, in order for the store to operate, it will require cash to fund its first two months
of operation. These cash will also come from the initial investment.

G. Major Assumptions and Summary of Findings and Conclusion

Market Feasibility
There is no data about the historical and current demand level for Patisserie in
Davao City since Epicurean Chocolates is the first entity to venture in such kind of
business. The current supply level of locally produced chocolates, which is the
company's main ingredient, is continuously increasing due to the "full-blast trainings (to
local farmers) and capacity development efforts of BOC-Region XI." (Edge Davao,
2011)
The projected supply and demand level for the products are both at an increasing
trend. The supply level of locally produced chocolates increases due to the
technological advancement used in its production. The increase in demand level for
chocolate is determined by the increase in the frequency of consumption of the product
and similar products, income of consumers, and increase in the population.
 The target markets of the entity are senior high school and college students, and
professionals. Chocolate, the main ingredient will be highlighted in all of Epicureans
products. The entity is a service-oriented establishment that provides quality service to
customers and offers chocolate pastry products. The marketing strategy that will be
used to reach the market and secure a competitive position is mainly through the use of
Social Media namely Facebook, Twitter, and Instagram. Printed ads will also be used by
Epicurean for its advertising. The entity aims to attract customers and turn them into
patrons.
Technical Feasibility
Raw materials of Epicurean needed for baking will come from Rafski Pastry and
Bakery Supplies. The chocolates that will be used as the main ingredient will also come
from the same supplier. Fruits that will be used as ingredients will come from the
Bankerohan wet market.
Orders for raw materials will be made every end of the week for the forecasted
demand of the next week. The reorder point for each raw material will happen when the
amount of materials in the storage room will not be enough for the forecasted demand.
This will be determined by checking the quantity of raw materials in the storage room
after every end of a work day. Product shelf life will also be considered when buying raw
materials.
Technology needed for Epicureans operation are primarily kitchen appliances
and tools such as ovens for baking, chillers for display of products, refrigerator for
storage of raw materials and other finished products not on display, freezer for ice
cream display, blenders for chocolate drinks, and other basic baking tools and
equipment such as baking pans, spatulas, and other.
Baked goods will undergo basic and specialized baking procedures. This process
will be done by the kitchen crews and the chef. Hot and cold chocolate drinks will
undergo heating, stirring, and blending by the front crews. Crews should always be
courteous and offer smiles to the clients.
 The site that will house Epicurean is located at the ground floor of Fabie Building,
Pelayo Street, Poblacion District, Davao City. It is situated in front of UCCP Churchs
Shalom Center, at the back of Gaisano South Citimall, and few blocks away from Apo
View Hotel and Peoples Park.

Epicureans staff will be composed of one chef, four kitchen crews, four front
crews/cashiers, and two shop cleaners. The chef will act as the store manager and
in-charge of the daily activities of the establishment as well as its employees.
Financial Feasibility
Socio-economic Feasibility
The main beneficiary of Epicurean will be the unemployed members of the
community. Epicurean targets to hire college students who are taking up Hotel and
Restaurant Management course and in need of financial help for their studies.
Organization and Management Feasibility
Epicureans form of business will be a partnership. Two partners will pool their
financial resources in order to realize the business. One partner will be a capitalist
partner and another will be a capitalist-industrial partner. They will share in the net profit
of the establishment as per agreement. They will hire a chef which will supervise the
kitchen as well as other employees of the establishment such as the kitchen crews,
front crews, cashier, and shop cleaner. The Chef will then report to the partners.