Donut Bite (Chapter 1 - 7)

CHAPTER 1

PROJECT BACKGROUND

This chapter describes the structure and composition of the proposed project and provides

the reader with the basic knowledge necessary to understand the proposed business.

A. Product/Project Description

The proponents will be putting up a food and beverage business which is a doughnut

café. This could be similar to Dunkin Donut that has a dining area, music background, and free

WIFI access for surfing the net and researching as an attraction. The proponents also thought of

providing a toilet inside the establishment for the costumers need.

This proposed business is intended for those who want to enjoy the food, beverage, and

all other services and amenities of a food service establishment at low and reasonable cost.

B. Name of Business

The proponents agreed to name the business “Donut Bite” because it sounds appealing

and can easily be remembered by the target market.

C. Project Proponent and Share Ownership

The five proponents of “DONUT BITE” agree that the share of ownership will be based

on equal-share partnership wherein, each proprietor will give Php 250,000.00 investment,

totaling to Php 1,000,000.00. The proponents’ name, share of investment and ownership is

presented in the table below.

Table 1

Share of Ownership

D. Proposed Location (See Appendix –A)

The business will be renting a commercial space located at 136 ODIE Building, Congressional

Avenue, Quezon City. The proposed location is near commercial establishments, residential

areas – such as condominium and housing. Schools and colleges such as AMA Computer

University, STI College, and San Lorenzo. Public utility vehicles and private vehicles can easily

reach the place. By taking a jeepney that pass the routes of Project 8 to Quiapo via Quezon

Avenue. For private vehicles coming from Novaliches, they can could take Mindanao Ave. then

turn left to Congressional Ave., and those who would be coming from Quezon City Memorial

Circle they could take Visayas Ave., the turn left to Congressional Ave.

The proponents chose this place because the proponents think that this business will

become successful in the proposed location.

Name Share of Capital Investment Share of Ownership

Christian Madulid Php 250,000.00 20%

Antonio Canlas II Php 250,000.00 20%

Christian Jay Vargas Php 250,000.00 20%

Jordean Jayson Dionisio Php 250,000.00 20%

Kelvin Lloyd Corpuz Php 250,000.00 20%

TOTAL Php 1, 250, 000.00 100%

E. Company Vision and Mission

Vision:

“To be the best distributor of doughnuts in the Philippines.

Mission:

Being the best means providing customers with unique and delicious doughnuts. Serving

every customer a standard quality and proper hygiene and making their bite a joyful

experience”.

The “Donut Bite” will be very much positive in offering a lot of services to satisfy

customers’ needs.

“Donut Bite” will serve with honesty and credibility.

“Donut Bite” will be always “open-minded” to those other competitors and will seek only

the best.

To create an environment for friends’ and family’s bonding.

To treat everyone as an honored guest in his/her own home.

F. Logo/ Rationale

The proponents decided to propose this picture as the logo of the business. This logo

identifies that the business are selling is doughnut. The doughnut has a bite on it because it’s

show that many people love bite and eating doughnut especially the kids. The color red, as the

highlight of the name to the proposed business because Red is the warmest of all colors, Red is

the color most chosen by extroverts and one of the top picks of males, it is also a protection from

fears and anxieties, and especially to remind the proponents that they need to show courage

throughout the difficult time. The proponents also put a square shape which represent that the

proponents need to treat every customer equally. (See Appendix B- Logo)

Chapter 2

SITE ANALYSIS

Site analysis is an inventory completed as a preparatory step to site planning, a form of

urban planning which involves research, analysis, and synthesis. Its primarily deals with basic

data as it relates to a specific site. The topic itself branches into the boundaries of architecture,

landscape architecture, engineering, economics, and urban planning. (Wikipedia- The Free

Encyclopedia)

A. Visibility from the Main Arteries

136 ODIE building Congressional Avenue Quezon City is a heavily populated district.

Although it is primarily a residential area, there are also many industrial facilities and

commercial areas near the place.

The proposed business site is situated in a developed area along Congressional Avenue

Quezon City. In every business, visibility is important for attracting customers, especially when

it is sited in a dynamic community. Since it is located near the schools such as AMA Computer

University, STI College, and San Lorenzo there are also other establishments such as banks,

coffee shop, car wash, malls, and markets near the area.

DONUT BITE is near the pick-up and drops off points of the public utility vehicles and

therefore a number of people are expected in the area most of the time. Also, most of the minor

streets in the area connect to the main road.

B. Visual Appeal of the Area and Sorroundings

The location of the business is in Odie Building along Congressional Avenue Quezon

City. The business is new in the area, resident and non- resident may be curious about it and take

a few minutes of their time to visit it. Nowadays the number of establishment are growing

rapidly like having LRT in Munoz and MRT passing along EDSA road. And infrastructures like

roads, telecommunications, water supplies and power supply that provide good services.

Traffic Count Results

The traffic count results show the number of public and private vehicles and pedestrains

passing the street of Congressional Avenue daily. The outcome of the traffic count assured the

proponents that DONUT BITE is really accessible to everyone and a high vehicular and human

flow is indicative of a big market.

C. Area Growth Pattern

The proposed location of the business belongs to Brgy. Project 8, and according

to the population growth survey of Quezon City government it has a slow growth rate.

Although this would be an unfavorable factor, the proponents are sure that it would not

affect their business because the proposed location is at the center of transport, near to

schools and colleges, and commercial activities.

D. Accessibility

“ODIE Building” where DONUT BITE would be put up is located along

Congressional Avenue Quezon City which is highly accessible to potential customers

taking puplic and private transportation. Commuters who want to avail of the products

and services of DONUT BITE can access it by taking a jeepney that pass the routes of

Project 8 to Quiapo via Quezon Avenue. For private vehicles coming from Novaliches,

they can could take Mindanao Ave. then turn right to Congressional Ave., and those who

would be coming from Quezon City Memorial Circle they could take Visayas Ave., the

turn left to Congressional Ave.

1. Target Market

The proponents will be establishing a donut business in ODIE building Congresional

Ave. Quezon City. The prospective customers of “DONUT BITE” are the students from

S.T.I. College, Collegio De San Lorenzo, and John Dewey. Villages like Congressional

Village and Cityville Executive Village. And commercial establishment such as Cherry

Foodarama, North Ridge, and Circle C. Walter Mart near the area. The proponents

predicted that the said target market would patronize DONUT BITE.

2. Raw Materials and Suppliers

DONUT BITE is just a few minutes ride from the market, which will make it easy for the

proponents to purchase their raw materials.

For the cooking equipments the proponents decided to get it from “Commercial Bakery

Equipment”.

Establishment Address

Wet Goods Balintawak Market Epifanio Delos Santos Avenue (EDSA) Q.C.

Munoz Market Munoz Quezon City

Walter Mart Munoz Quezon City

Dry Goods SM Supermarket (North) North Avenue cor. EDSA, Quezon City

Landmark (Trinoma) EDSA corner North Avenue., Quezon City

http://wikimapia.org/street/951314/en/

Address: 49 Tandang Sora Avenue.

And for the ingredients of doughnut the proponents decided to get it from “J.Poon & Sons corporation”.(JPCS) “The bakery suppliers”

Office Address 37 E. Rodriguez Sr. Avenue Brgy. Donya Josefa Quezon Avenue.

3. Utilities and Sevice Providers

DONUT BITE is fortunate that most of the utilities and service providers are close to the

area. Below is a table which shows the name of the company and the address of firms.

Utilities Company Address

Water Maynilad Water Camarin Road, Barangay 173 North Caloocan City

Electricity Meralco 1199-EDSA nr. Munoz Market Balintawak Q.C.

Telephone / Internet PLDT GF, SM North Edsa, Q.C., Metro Manila, Philippines

CHAPTER 3

MARKETING FEASIBILITY STUDY

In this chapter, a three (3 year marketing plan is presented, including details for necessary

actions to achieve the marketing objectives.

A. Marketing Feasibility Objectives

1. To be able to determine if there is a sufficient demands for the proposed product.

2. To be able to determine the competitive position of the proposed business in the

industry.

3. To be able to find out what the customers prefer through a market survey.

4. To meet the break-even point in (3) two to (4) , months for the business to be sure

that it is effective enough or not and to sure that every people are enjoying the food

and beverage that the business will be offering.

B. Market Analysis (market description)

It is a tool used by the marketers to analyze composition of their target market and to

determine the best courses of the action to take to promote the business.

Every target market has its own specification on which products, services or

establishment it would patronize. As a result, a new business should be aware of the composition

around the area. The gathered data of the proponents will prove that there is a high percentage of

profitability of getting regular customers for DONUT BITE because the proposed business

location is a commercial area.

The target market of the business would be the students from S.T.I. College, Collegio De

San Lorenzo, and John Dewey. Villages like Congressional Village and Cityville Executive

Village. And commercial establishment such as Cherry Foodarama, North Ridge, and Circle C.

Walter Mart near the area.

The needs and wants of some people is buying the product with a quantity and quality at

low cost. Serving the customers with a proper hygiene.

C. Target market

The proponents found that the possible target markets of the business are the students

from S.T.I. College, Collegio De San Lorenzo, and John Dewey. Villages like Congressional

Village and Cityville Executive Village. And commercial establishment such as Cherry

Foodarama, North Ridge, and Circle C. Walter Mart near the area. And also the people pass

by the area.

D. Market Survey Result

A survey was conducted to gather information about the possible market or customers.

Specifically it aimed to identify the respondents’ profile and their recreation and leisure

activities. Below is a tabulated survey of the students, passers-by, and employees within the

vicinity.

Respondent’s Profile:

Table 3.1

Age

Table 3.1 show that of the 50 respondents 16 or 32% belongs to the age range of 21 -25 years old

followed by 13 or 26% who belong to the age range of 15 – 20 years old. 11 or 22% are belong

to 36 and above and the remaining 10 or 20 % are belong to 26- 35 years old.

Majority of the respondents belong to the 21- 25 years of age. These respondents’ age

bracket is the one most like to spend time with friends and colleagues.

Table 3.2

Gender

Age Frequency Percent %

15 – 20 13 26 %

21 – 25 16 32%

26 – 35 11 22 %

36 and above 10 20 %

TOTAL 50 100 %

Gender Frequency Percent %

Male 23 46 %

Female 27 54 %

TOTAL 50 100 %

Table 3.2 shows that 23or 46% of the respondents are male and the remaining 27 or 54% are

female.

It appears that the male respondents outnumbered the female since they are the ones who

frequently stay in places such as DONUT BITE to relax while enjoying the food.

Table 3.3

Status

Table 3.3 shows that 21 or 42% or the preponderance of the total respondents are married. 19 or

38% are single and the remaining 10 or 20% belongs to separated.

Table 3.4

Monthly Income

Status Frequency Percent %

Single 19 38 %

Married 21 42 %

Separated 10 20 %

TOTAL 50 100 %

Monthly Income/ Frequency Percent % Allowance Below Php 10, 000.00 11 22 %

Php 10,001.00 – 20, 000.00 16 32 %

Php 20, 001.00 – 30, 000.00 10 20%

Php 30, 001.00 – 40,000.00 7 14 %

Php 40, 001.00 – 50, 000.00 4 8 %

Php 50,001.00 and Above 2 4 %

TOTAL 50 100 %

Table 3.5

Occupation

Table 3.5 shows that 6 or 12% of the respondents are the business man/ women. 13 or 26%

belongs to the company employee. 5 or 10% are belongs to the teachers/ professors. 16 or 32%

belongs to the students and the remaining 10 or 20% belongs to others.

Table 3.6

Respondents’ Snack or Merienda Preference

Frequency Percent %

Pizza 8 16 %

Pastries 15 30 %

Cakes 5 10 %

Doughnut 12 24 %

Others 10 20 %

TOTAL 50 100 %

Frequency Percent %

Business Man/ Woman 6 12 %

Company Employee 13 26 %

Teacher/ Professor 5 10 %

Students 16 32 %

Others 10 20 %

TOTAL 50 100 %

Table 3.6 shows that 8 or 16% of the respondents prefer pizza, 15 or 30% favor to

pastries, 5 or 10% favor to cakes, 12 or 24 prefer doughnut and the remaining 10 or 2o% would

like to eat other foods.

Table 3.7

Respondents’ Beverage Preference

Table 3.7 show that 15 or 30% of the respondents prefer juice/ ice tea for their drinks,

follow by 13 or 26% who have a preference of soda, 10 or 20% favor coffee while, the remaining

12 or 24% of the respondents prefer other beverages such as fruit shakes etc.

Table 3.8

Respondents’ Response if They Will Patronize the Proposed Business.

Table 3.8 show that the greater part of the respondents, that is 27 or 54% would patronize

such establishment as DONUT BITE, while, 23 or 46% answered no.

Frequency Percent %

Juice/ Ice Tea 15 30 %

Soda 13 26 %

Coffee 10 20 %

Other 12 24 %

TOTAL 50 100 %

Frequency Percent %

YES 27 54 %

NO 23 46 %

Total 50 100 %

It is evident that majority of the respondents who answered positively would be the

possible market of DONUT BITE.

Table 3.9

Respondents’ Response How Often They Ate Doughnut.

Table 3.9 show that 13 or 26% says that they ate doughnut daily follow by 26 or 52% who says that they ate doughnut weekly and 11 or 22% for the people who ate doughnut monthly.

Table 3.10

Respondents’ Response if They Love Toppings for Their Doughnut.

Table 3.10 show that 14 or 28% love eating doughnut with toppings and 36 or 72% says no.

Frequency Percent %

Daily 13 26 %

Weekly 26 52%

Monthly 11 22%

TOTAL 50 100 %

Frequency Percent %

YES 14 28 %

NO 36 72 %

TOTAL 50 100%

Table 3.11

Respondents’ Response for Doughnut Toppings.

Table 3.11 15 or 30% love sprinkles for their toppings, 12 or 42% love nuts 10 or 20% love mallows and 13 or 26% love kisses for eating their doughnuts.

Table 3.12

Respondents’ Response what Establishment They Prefer for Spending Their Snacks.

Table 3.12 show that 15 or 30% prefer to eat their snacks to Dunkin donut, 17 or 34% prefer mister donut, 10 or 20% prefer krispy crème and 8 or 16% prefer go nuts donuts for their snacks or merienda.

Frequency Percent %

Sprinkles 15 30 %

Nuts 12 42 %

Mallows 10 20 %

Kisses 13 26 %

TOTAL 50 100%

Establishment Frequency Percent %

Dunkin donut 15 30 %

Mister donut 17 34 %

Krispy Crème 10 20 %

Go nuts Donuts 8 16 %

TOTAL 50 100%

Table 3.13

Respondents’ Response How Often They Pass along Congressional Avenue.

Table 3.13 show that 33 or 66% answers that they always pass congressional avenue. 14 or 28% says sometimes and 3 or 6% says never.

Table 3.14

Respondents’ Response if They Patronize the Donut Bite along Congressional Avenue.

Table 3.14 show that 29 or 58% answers that they will patronize the new business in the area and 21 or 42% says no.

E. Competitive analysis

This is one of interacting components in marketing with the competition around, the

proponents will strive to develop and improve their products and services. It is also important in

marketing to outperform your competitors with the unique and classify the competition around

the vicinity.

Frequency Percent %

Always 33 66 %

Sometimes 14 28 %

Never 3 6 %

TOTAL 50 100%

Frequency Percent %

YES 29 58 %

NO 21 42 %

TOTAL 50 100%

1. Direct competitors:

A direct competitor is an establishment that offers the same products and services as those the proposed business will offer.

Table 3.15

Direct Competitors

2. Indirect Competitors

Indirect competitors are establishment that offer all or some of the products and services that the proposed business offer.

Name of establishment Description Location

(Product & services offered)

Dunkin Donut North EDSA, Q.C. Metro Manila, Phil. An establishment that

Mister Donut offer donut Ground Floor, Circle C Center,

Congressional Avenue, Corner

Jupiter Street, Quezon City, Metro

Manila

Julie’s Bake Shop A bake shop that primarily Congressional Rd, Quezon City,

offers Bread and other baked Metro Manila products.

Table 3.16

Indirect Competitors

F. Marketing Plans and Strategies

Marketing is the process of continuously and profitability satisfying the target customers’

needs wants and expectations superior to competition.

Moreover, marketing plans outlines how businesses intend to grow in the market place

and win against competition. Below are the marketing plan from pre-opening/ opening and a

three- year plan, which focuses on the product, promotion, prices and the place.

1. Pre- opening and opening

In the pre- opening of DONUT BITE, the proponents will have banners, signage, and

tarpaulins where the target market could easily see them and attract their attentions, flyers will be

distributed before the opening so that the market will have an idea that there will be a new

Name of establishment Description Location

(Product & services offered)

KFC The primary product is chicken and Congressional Ave. cor. also classified as fast food chain Mindanao Ave., Brgy Bahay Toro Quezon City .

Jollibee A fast food chain, which offers Pangilinan Cor. Congressional Ave., burger, chicken and other food& Brgy. Bahay Toro, Quezon City

Beverage items.

Tropical Hut food establishment that offers Congressional Avenue, Quezon catering service City, Metro Manila

Chow King a fast food chain, which offers Circle C Center, Congressional Chinese food. Avenue, Quezon City

Pares Restaurant that’s offer grill food 179 Mindanao Ave, Quezon City

establishment that will open soon. Then, invitation will be sent to families, friends, neighbors

and other establishments nearby for the blessing and ribbon cutting of the DONUT BITE.

Brochure

Flyers

Tarpaulins

For the opening , the proponents want the DONUT BITE to be well-known to its target

market therefore a sound system will be set up to attract customers especially at daylight. Here

are the “promos” that the proponents thought of on the first day of the operation.

First 20 customers will be given free drinks.

For every Php 200.00 accumulated bill (single receipt) on food, free half a dozen of

doughnut.

Blessing, ribbon cutting, sound system, and balloons and flowers.

2. 3 -Year Marketing Plan

In business, it is not just a matter of how one can establish it but also of how to maintain

it. The proponents prepared a three year marketing plan for the business aimed at increasing sales

or income.

In the initial year, the proponents thought of giving discounts of the selected food items

during the first three (3) months of operation.

Continuous flyers and leaflets will be given for promotion and advertising of the

establishment especially, during special occasions. In addition, signages and banners will be

posted near the vicinity and along the areas of Congressional Ave., Mindanao Ave and EDSA.

By doing so, people will be more aware or be constantly remember of the said establishment.

G. Sale/ Income Projection

Sale/ income projection is the pre-assumed sales of the business within a certain period of

time and how much possible earning it will earn. This also pre-determines how soon it will take

to bring back the initial investment of the proponents.

Appendix A

Vicinity Map

Appendix B

Logo

DONUT BITE

Chapter 4

MANAGEMENT & PERSONNEL FEASIBILITY STUDY

The basic aim of the management aspect is to have an effective organization,

which will help to carry out the objectives of the project proponents. (Ditablan, 1993)

A. Management and Personnel Feasibility Objectives

1. To illustrate the workforce and to be able to determine the organizational

structure.

2. To provide basis of job specifications and description for each position

and describe ways and means of forecasting human resources requirements.

3. To provide basis of the management style that would be adapted by the

proposed business.

B. Personnel (Administrative) Workforce

The proponents agreed that 2 (two) of them will manage the business to achieve

the vision and mission of the company and also to protect the capital investment. The

rest of the proponents will take turns in their daily work schedule to render their services

without any remuneration. Under the Manager, a cashier will be hired to take charge of

the customer’s payments and one service staff. In the kitchen, a cook and a kitchen

staff will be hired that will also work collectively.

C. Organizational Chart

The proponents adopted the functional style of organizational form because this is

the most suitable for the proposed business. Employees within the functional organization

tend to perform a specialized set of tasks, for instance the cook would be position only in

the kitchen. This leads to operational efficiencies within that group.

ORGANIZATIONAL CHART

D. Job Specification and Job Description

Job specification is a listing of the qualifications required of the person holding

the job.

Below are the necessary qualifications of each aspirant.

Position Title: Manager

Male or Female

25 – 35 years old

Has a pleasing personality

Must possess a bachelor’s / college degree on food and beverage

services management.

Must have at least two (2) years of working experience in the

related field is required.

Solid written and strong verbal communication skills’ including

delivering of group presentations is required.

MANAGER

Cashier (1) Cook (1)

Kitchen (1) Service Staff (1)

Good leadership skills in handling and managing team members.

Work requires willingness to work a flexible schedule.

Position Title: Cook

Male

25 -35 years old

Has pleasing personality

Graduate/ college level, vocational diploma/ short course

certificate of HRM or culinary arts or any related course, knowledgeable

in all raw materials, preparation of all items and all kitchen procedures.

With one year experience in the food industry.

Good leadership skills in handling and managing team members;

can work with minimal supervision even under pressure.

Must be hard working and willing to work overtime and

trustworthy.

Position Title: Cashier

Female

18 – 25 years old and has pleasing personality.

Graduate/ college level, vocational diploma/short course certificate

of any related course.

At least 1 year working experience in the related field is required

for this position.

Willing to work overtime and under pressure.

Can work with minimum supervision.

Must be hard working, thrust worthy and customer oriented.

Position Title: Service Staff

Male

18 - 25 years old and has pleasing personality and good

communication skills.

Graduate/ college level, vocational diploma/ short course

certificate of any related course.

At least 6 months to 1 year of working experience in the related

field is an advantage.

Should be jolly, friendly, trustworthy and service oriented.

Can work with minimum supervision and willing to work overtime

and under pressure.

Position Title: Kitchen Staff

Male preferably not more than 35 years old.

Graduate/ college level of HRM or culinary arts or any related

course.

Preferably with one year experience in the food industry.

Can work with minimal supervision even under pressure, can

easily understand simple instructions.

Must be hard working and trustworthy.

Willing to work overtime and under pressure.

Job description tells what the job entails like how the position relates to other

positions, the responsibilities and specific duties to be fulfilled. (Ernest A. Franco, 2005)

Below are the job descriptions of every required position.

Position Title: Manager

Manage the operational and fiscal activities of the business to

include: Staffing levels, budgets, and financial goals.

Plan and develop systems and procedures to improve the operating

quality and efficiency of the business

Analyze and document business processes and problems. Develop

solutions to enhance efficiencies.

Supervise staff in accordance with company policies and

procedures.

Position Title: Cook

In-charge in the preparation of food and beverage.

Does the inventory of the stock in the kitchen and food control.

Maintains the neatness and cleanliness of the kitchen and pantry.

Position Title: Cashier

Responsible for the acceptance of payments.

Accurately maintaining all cash.

Position Title: Service Staff

Serves the food and beverage ordered by guests.

Prepares the dining for usage.

Maintains the cleanliness of the dining area.

Position Title: Kitchen Staff

Maintains the neatness and cleanliness of the kitchen and pantry.

Assist the cook on preparing foods and beverages.

E. Proposed Personnel Salaries & Wages and Benefits

CONDITIONS OF EMPLOYMENT

The employee of the propose business would be classified as Contractual/ Casual

Employees and Regular Employees.

Contractual/ Casual Employees are hired for a fixed limited period. However,

prior to the expiration period, the management has the opinion to extend the contract.

A Regular Employee may be supervisory or managerial pursuant to guidelines in

labor law.

SALARIES AND WAGES

TABLE 4.1

Proposed Salaries of the Employees

POSITION SALARY / WAGE

MANAGER Minimum wage and additional of 25%

-Php 532.5/day -(Php 532.5)(26 days) = Php 13, 845/month -(Php 13, 550)(6mos.) = Php 83,070

Minimum wage

Php 404.00/day (Php 404.00)(26days) = Php 10,504.00/month (Php 10,504.00)(6mos.) = Php 63,024.00

Minimum wage and additional of 5%

Php 424.20/day (Php 424.20)(26 days) = Php 11, 029.20/month (Php 11,029.20)(6mos.) = Php 66,1745.20

Minimum wage


Minimum wage


MANAGER

CASHIER

COOK

SERVICE

STAFF

KITCHEN

STAFF

BENEFITS

13th month Pay

In compliance with the Presidential Decree 851, the business will pay the

employee a 13th month equivalent to one (1) month of current basic pay.

SSS/ PHILHEALTH/ PAG-IBIG

T he business will pay its share of contribution of the government

mandated benefits. The company’s contribution is based on their monthly salary.

Overtime Pay

The overtime is paid for work rendered in excess of eight (8) working

hours on regular holidays and on non- working holidays. Overtime will be based

on overtime authorization slip signed by the management.

Free Uniform

Uniforms would be provided for the cashier, service staff and kitchen

staff.

Vacation Leave

Employees of the business with at least 1 year of continuous service are

entitled to a fifteen (15) day vacation leave.

The vacation leave should be scheduled and should not exceed one week.

Request of vacation leave should be made through a letter to be approved by the

management. However, the management has the right to schedule or re schedule

the vacation leave of the employees.

Sick Leave

A regular employee shall be entitled to a ten (10) day paid sick leave per

year while, contractual employees are allowed to take a rest tub without pay if

they cannot report to work because of ailments or sickness.

Employees who will be on sick leave for three (3) consecutive days should

submit a Medical Certificate/ Fit to work certificate.

Regular employees who fail to comply with foregoing requirements

cannot avail any leave benefits but shall be considered absent.

Service Charge

A centralized 10% service charge will be distributed equally to the

employees every work pay day. In such case that an employee is having a day-off

he/ she not entitled for the said service charge computation.

F. Training and Seminars

Training is one of the most important activities which are to be done in one’s

company most especially if the company is newly opened. The proponents thought of

some training for the employees that they would conduct personally and be done once a

year for efficiency, adaptability in social and future job performance. The table below

will present a planned seminars and training for the employee as well for management.

PROPOSED TRAINING AND SEMINARS

G. General Company Policies

1. Recruitment and Hiring Procedures

The proponents will have a selection process in which, the proponents will

choose individuals to be hired. The proponents agreed that at first, we will ask for

referrals from families and friends or walk-in applicants that are interested to be

part of the company.

TRAINING/ OBJECTIVE MEDUIMS OF

SEMINAR TRAINING

Orientation To familiarize the policies, basic Presentation,Handouts or information of the company and Film Showing.

demonstration of how to use the

equipments for new hired

employees.

Skills Training (Food To teach the employees to perform Hands- On Training

& Beverage Service) certain set of tasks.

Seminar (Personality To improve adaptability to Visual Presentation,

Development) environment and enhance speaker would talk about

Confidence Personality Development.

Team Building To create camaraderie for the Hosted activities or

Activity Manpower and managerial Retreat.

position also with the owners.

Process would involve screening of applicant forms. Thru applicants will

be notified as soon as possible thru telephone if they are qualified for an

interview.

After the interview they will be given instructions whether to wait for the

company’s call or to come back and bring the following requirements such as

NBI clearance, Barangay clearance, Diploma, Training Certificates if available,

working Certificates, and Medical Certificates.

2. Working Policies

A. TIME KEEPING

Work Hours

The official time in is 8:00am and the official time out is for the

morning shift. For the afternoon shift, the official time in is

1:00pm and the official time out is 10:00pm. A one hour of break is

given for every shift.

Operational hours will be from 8:30am to 9:00pm.

Under Time

Under time is leaving the establishment for the same period of 30

minutes of any work period. Work period refers to the working

schedule established by the management. Under time shall be

deducted from pay.

Absence

Absence is defined by the company as non appearance of the

employee in the premises of the office. Every employee is required

to be regularly present in his/ her job. Unexcused absences or without

proper permission will be sanctioned as follows.

1st Offense - Verbal warning

2nd Offense - Written memo

3rd Offense - 3 day’s suspension

4th Offense 5 day’s suspension

5th Offense – Dismissal

Tardiness

Tardiness / late are defined by the company as not arriving for

work on the prescribed schedule shift. This definition however

does not cover the management.

Employees are only allowed 60 minutes or approximately 5

minutes per day of tardiness for the duration of their pay period,

with excess of this computable deduction on their salaries.

Employees constantly being tardy / who have exceeded 90mins of

tardiness in a given pay period will be reprimanded according to

the following:

1st Offense - Verbal warning

2nd Offense - Written memo

3rd Offense - 3 day’s suspension

4th Offense 5 day’s suspension

5th Offense – Dismissal

B. IDENTIFICATION

Identification Card / Nameplate

An identification card and nameplate would be issued upon

employment for security reasons.

The ID and nameplate remains as property of the business and

should be surrendered upon resignation, termination or end of

contract.

C. BEHAVIOR AND ATTITUDE IN THE WORK PLACE

Betrayal of the Business’ Trust

Betrayal of trust by falsifying and documents that may affect the

business, the owners, employees and clients such as financial

operations, recipe leakage, and other documents if such occur, the

management has the right to perform necessary actions.

Theft, Robbery, Misappropriation of funds, and willful destruction of

property

These acts are punishable by immediate dismissal.

Drunkenness and Drug addiction

The employees are required to report for work physically and

mentally fit. Coming to work drunk or under the influence of drugs

is punishable by dismissal.

Acts against Co-workers and Company Officers

Acts against co-workers and company officers constitutes:

Fighting or assaulting.

Challenging, threatening, intimidating or insulting.

Uttering of obscene, foul and offensive words and gestures.

Managers/ supervisors should not abuse their authority by

requiring the subordinates to do task that are not related to

their work or official function.

Courtesy and respect

The employees should be courteous with their co-workers and the

customers or guests. Serving with a smile and respect is a key to a

happy satisfied guests and harmonious relationship with co-workers.

Grooming and Proper Attire

Grooming and sanitation are factors in this kind of business, and

they shall at all times be well-groomed and wear of the uniform

given and prescribed to them.

3. Administrative / Personnel Facilities

Since the proposed business is a medium scale enterprise the facilities that would

be available to the employees is locker cabinet for the safety of their belongings every

time they are on duty.

H. Professional Firms to be Hired (Outsourcing)

The proponents would be hiring a private CPA (Certified Public Account)

practitioner for the book keeping and financial statements of the business, and also for filing of

income tax returns. The CPA that would be hired is a family member of the proponents.

Chapter 5

TECHNICAL FEASIBILITY STUDY

This aspect identifies whether the product could be produced at the highest possible

quality level with minimum cost. (Ditablan, 2000)

A. Technical Feasibility Objectives:

1. To be able to understand the flow of the operation of the proposed business.

2. To provide information on the product/ services that the business would be

offering.

3. To have a view of the well-planned lay-out of the service area and business site.

B. Type of Operation:

For those who will buy or dine-in, the counter style service will be implemented.

SERVICE FLOW CHART

Welcome the Place Order Payment

Prepare Food Serve Food

C. Product/ Services

1. Description

DONUT BITE would be offering doughnuts and drinks like coffee, tea, shake,

and soda. There would be a small dining area that can accommodate 25 to 32 persons.

Were the customers can stay and relax while eating there snacks or having a coffee break.

2. COSTING

?

D. Proposed Facilities, Design and Layout

1. Size (Lot Area and Floor Plan)

The DONUT BITE would be place in 65 square meters commercial space in

ODIE Building which will be divided into small dining area, kitchen and comfort rooms.

2. Proposed Service Area

The DONUT BITE has two (2) proposed service areas. First is the dining where

the customers can dine-in with their family and friends. It is a 32 seater area with free

WIFI access and music background.

The second is the kitchen where the food and beverages are prepared to be served

to the guest.

3. Layout of the Floor Plan (See appendix - D)

4. List of Furniture & Fixtures, Equipment, Tools and others

PROJECT: COMMERCIAL (DONUT BITE)

LOCATION: 136 ODIE building Congressional Avenue Quezon City.

OWNER: DONUT BITE

SUBJECT: BUDGETARY COST ESTIMATE

TABLE

BUDGETARY COST ESTIMATE

\\

A. Concrete and Masonry Works

Item Particulars Qty Unit Unit Cost

Total

No. Material

5.00 COUNTER TOPS

5.01 Cement 15.00 bags 130.00 1,950.00

5.02 Sand 5.00 cu.m. 490.00 2,450.00

6.00 CHB WALLS

6.01 6” thk CHB 1,552.00 pcs. 12.00 18,624.00

6.02 4’ thk CHB 105.00 pcs. 9.00 945.00

6.03 Cement 100.00 bags 130.00 13,000.00

6.04 Sand 10.00 cu.m. 49.00 490.00

Sub-total 37,459.00

3.00 2” x 2” wooden studs 376.00 bd.ft 22.70 8,535.20

4.00 CWN assorted 6.00 kgs. 47.00 282.00

7.00 PVC door and jamb 6.00 sets 2,000.00 12,000.00

8.00 ¼”thk marine plywood (T&B ceiling) 2.00 pcs. 400.00 800.00

9.00 2” x 2” ceiling joints 28.00 bd. Ft 22.70 635.60

Sub-total 36,252.80

2.00 1/4” thk. Ord. Plywood (partition) 40.00 pcs. 350.00 14,000.00

B.

B. Carpentry Works

C. Hardware & accessories

1.00 Main door locksets 1.00 sets 500.00 500.00

3.00 T & B door locksets 2.00 sets 250.00 500.00

6.00 Loose pin hinges (entry door) 14.00 pcs 25.00 350.00

7.00 Concealed hinges 7 pcs. 50.00 350.00

Sub-total 37,459.00

1.00 60 cm x 60 cm floor tiles 150.00 pcs. 30.00 4,500.00

2.00 20 cm x 20 cm floor tiles 50.00 pcs. 18.00 900.00

5.00 Ordinary cement 10.00 bags 130.00 1,300.00

Sub-total 6,700.00

D. Tile Finishes

E. Painting Works

2.00 Concrete interior walls 100.00 sq.m 120.00 12,000.00

3.00 Concrete neutralizer 7.00 gals 300.00 2,100.00

4.00 Concrete sealer 7.00 gals 300.00 2,100.00

5.00 Wooden partition 30.00 sq.m 175.00 5,250.00

Sub-total 26,700.00

6.00 Doors & jambs 30.00 sq.m 175.00 5,250.00

F. Plumbing Works

1.00 Water lines, sanitary lines, pipes 1.00 lot 0.00 30,000.00 and fittings

2.02 Lavatory 2.00 sets 1,000.00 2,000.00

2.04 Soap dispenser 2.00 sets 100.00 200.00

2.05 Tissue paper holding 2.00 units 100.00 200.00

2.06 Floor strainer 3.00 units 25.00 75.00

2.07 Lavatory faucet 2.00 sets 250.00 500.00

2.08 Kitchen faucet 1.00 set 250.00 250.00

Sub-total 33,225.00

G. Electrical Works

1.00 Roughing-ins-complete 1.00 Lot 30,000.00 electrical wiring

PVC conduit with accessories, junction and utility boxes, devices, panel boards, installation of

fixtures; telephone and cable TV wiring

Sub-total 30,000.00

TOTAL MATERIAL COST 182,036.80

LABOR COST 53,642.28

5% Contingencies 26,812.14

TOTAL PROJECT COST Php 293, 491.22

H. KITCHEN EQUIPMENTS

QTY UNIT MATERIAL UNIT COST ACTUAL COST

1 Pc. Beverage Refrigerator 15, 490.00 15, 490.00

1 Pc. Exhaust Fan 699.75 699.75

1 Pc. Freezer 15, 450.00 15, 450.00

1 Pc. Gas Range 25, 980.00 25, 980.00

1 Set donut Maker 8,000.00 8,000.00

TOTAL 65, 619.75

I. DINING EQUIPMENTS


1 Pc. Computer 26, 999.00 26, 999.00

1 Pc. Air Conditioner 45,000.00 45,000.00

2 Pc. Exhaust Fan 699.75 1,399.75

1 Pc. Printer 2,500.00 2,500.00

5 Pc. Speaker 1,200.00 6,000.00

1 Pc. Vacuum Cleaner 4,499.75 4,499.75

TOTAL 86,398.50


10 Pcs. 2 Seater Sofa 6,000.00 60,000.00

5 Pcs. Center Table 2,000.00 10,000.00

3 Set Dining Tables & Chairs 5,600.00 16,800.00

1 Pc. Locker Cabinet 12,250.00 12,250.00

1 Set Kitchen Cabinet 3,000.00 3,000.00

TOTAL 102,050.00

J. FURNITURE AND FIXTURES

K. DINING TOOLS


8 Pcs Tissue Holder 149.75 1,198.00

1 Pcs. Straw Holder 99.75 99.75

250 Pcs./mos. Disposable Cups 1.50 375.00

TOTAL 1,672.75

L. 6 MONTH JANITORIAL SUPPLIES


1 Pc Broom Php 60.00 Php 60.00

1 Kilo Detergent Powder Soap 156.75 156.75

1 Gal. Dishwashing Liquid 180.00 180.00

1 Pc. Dust Pan 84.75 84.75

5 Pcs. Floor Rug 50.00 250.00

2 Bottle Glass Cleaner 71.75 143.50

2 Pairs Gloves 52.50 105.00

1 Gal. Liquid Hand Soap 135.00 135.00

2 Pcs. Mop 179.75 359.50

6 Pcs. Rug 100.00 600.00

6 Pc. Sponge 10.00 60.00

1 Pcs. Squeegee w/ sponge 129.75 129.75

2 Pc. Steel Wool 15.00 30.00

6 Packs Tissue (bathroom) 88.00 528.00

2 Bottle Toilet Bowl Cleaner 65.00 130.00 10 Packs Trash Bag 49.75 497.50

TOTAL Php 3,449.75

M. 6 MONTH OFFICE SUPPLIES


5 Pcs. Ballpen Php 8.00 Php 40.00

1 Ream bound Paper Php 194.00 Php 194.00

1 Pc. Columnar Sheet Php 21.00 Php 21.00

5 Packs Dining tissue Php 70.00 Php 350.00

1 Pc. Glue Php 13.00 Php 13.75

1 Pc. Liquid Eraser Php 229.00 Php 459.50

6 Packs Order Slip Php 27.00 Php 162.00

1 Packs Paper Slip Php 24.75 Php 24.75

5 Pc. Pencil Php 5.00 Php 25.00 1 Box Staple Wire Php 22.75 Php 22.7 3 Packs Straw Php 15.00 Php 45.00

4 Packs Time Card Php 9.00 Php 36.00

6 Packs toothpick Php 20.00 Php 120.00

TOTAL Php 1, 513.75

N. KITCKEN TOOLS AND UTENSILS


3 Pcs. Bar Tray Php 220.00 Php 660.00

1 Pcs. Can Opener 88.00 88.00

1 Pcs. Cheese Grater 39.00 39.00

2 Pcs. Chopping Board 88.00 176.00

2 Pcs. Food Tongs 119.75 239.50

2 Pcs. Glass Rack 229.75 459.50

1 Pcs. Measuring Cups 49.00 49.00

1 Pcs. Measuring Spoon 49.00 49.00

1 Pcs. Mortal& Pestle 149.75 149.75

5 Pcs. Pot Holder 24.00 120.00

1 Pcs. Scissor 49.00 49.00

1 Pcs. Set knife 183.00 183.00

1 Pcs. Spatula Set 99.00 99.00 3 Pcs. Strainer 94.00 282.00

1 Pcs. Weighting Scale 259.75 259.75TOTAL Php 2, 862.50

E. Waste and Wastes Disposal Method

Segregation of biodegradable and non- biodegradable waste disposal will be

implemented.

Used empty bottles, cans and others will be sold to the nearest junkshop.


1 Pcs. Bell Php 95.00 Php 95.00

1 Pcs. Calculator 199.00 199.00

1 Pcs. Cash Box Deposit 419.00 419.00

1 Pcs. Fire Extinguisher 2,199.75 2,199.75

1 Pcs. Puncher 79.75 79.75

1 Pcs. Receipt Holder 78.00 78.00

1 Pcs. Ruler 13.75 13.75

1 Pcs. Scissor 13.75 13.75

1 Pcs. Stapler 54.00 54.00

1 Pcs. Emergency Light 699.00 699.00

1 Pcs. Wet Floor Sign 389.50 389.50

TOTAL Php 4,240.50

J. OFFICE TOOLS

Chapter 6

FINANCIAL FEASIBILITY STUDY

This aspect will specify term that will determine the project profitability.

This is the management- level responsibility for capital procurement, fund allocation, capital

structuring, and profit administration. Moreover, this will show the preparation that is vital to the

success of the proposed business. (Ditablan 2000)

A. Financial Feasibility Object:

1. To determine the working capital requirement of the total project cost.

2. To provide a detailed analysis of all monetary information such as total business

cost, initial capital requirement, source of financing, financial statement and

financial analysis.

3. To determine whether the proposed business is feasible through the ratios

presented.

B. Financial Assumptions:

1. Projection years is three (3) years.

2. Total investment capital of Php 1, 250, 000.00. The proponents will contribute

Php 250, 000.00 each.

3. Total project cost is presented to justify the capital investment.

4. Increase of 10% in food and refreshment sales annually, because of expected

increase in volume of customer’s.

5. Purchases, allowance for spoilage and merchandise inventory is projected through

perpetual inventory. On the second and third year there is a 5% increase.

6. Salaries and wages depend on the position of the employee’; there will be no

increase on the salaries and wages for the first three years except if the government

mandates an increase.

7. SSS/ PHILHEALTH/ PAG-IBIG contribution varies on the range of the salaries

and wages.

8. Increase of rent level and light & water by 5% annually.

9. Communication and cable TV is fixed through the three years of operation.

10. Advertising and promos costs will decrease on the second and third year because

the theme decors may be recycled.

11. Straight line method is used to compute for the depreciation of the equipment and

furniture and fixtures, presented in tabular form.

12. Allowance for breakages is 5% for the kitchen, dining and office tools.

13. Office supplies will increase by 5% annually as well with the janitorial supplies.

14. For the repairs and maintenance there would be a 50% increase in the second year

and will be retained by the third year.

15. There would be owner’s drawing for the second and third year.

C. Total Project Cost

FIXED CAPITAL COST

Leasehold Improvement Php 293, 491.22

Kitchen Equipments 65, 619.75

Dining Equipments 86, 398.50

Furniture & Fixtures 102, 050.00

Kitchen Tools 2, 862.50

Dining Tools 1, 672.00

Office Tools 4, 240.50

Dining/ Office Supplies 1, 513.75

Janitorial Supplies 3, 449.75

TOTAL FIXED CAPITAL COST Php 532, 633.75

Working Capital (1 Month)

Salaries and Wages Php 56, 386.02

TOTAL

PRE- OPENING CAPITAL:

Prepaid rent (3 mos. Deposit) Php 69, 000.00

Registration (DIT/ BIR/ SEC) 4, 670.00

Business Permit & licenses 3,300.00

Electrical Installation 3, 000.00

Water Installation 1,000.00

Contengencies 478,690.32

PRE-OPERATION CAPITAL 559, 660.32

GRAND TOTAL PROJECT COST Php 1, 148,680.09

D. Sources of Fund/ Capital

The total estimated capital investment for DONUT BITE is Php 1,250, 000.00. The

proponents will contribute Php 250, 000.00 each as the initial investment for the proposed

business.

E. Schedules

1. Sales/ Income

Projected Yearly Sales

Food

YEAR 1

Beverage

Food

YEAR 2

Beverage

FoodYEAR 3

Beverage

January February March April May June July

Food

YEAR 1

Beverage

YEAR 2 Food

Beverage

YEAR 3 Food

Beverage

August September October November December Total Sales Grand Total

Chapter 7

Socio-Economic Feasibility Study

Every business has its main aspiration which is to maximize the profit. Even though it is

the main goals of every business ventures, it should always comply with the considerations of

socio-economic aspects. The success of a business not only lies on the profit but on its social and

economic responsibilities and the benefits of the business to the employees, government, society

or community, suppliers and environment.

A. Objectives

1. To be able to know the duties and responsibilities of the proponents to the government,

environment and the society.

2. To be able to prevail over the worsening economic environment.

B. Project’s Employees

The proponents proposed business aims to provide employment opportunities through

hiring qualified workers to support their financial needs in terms of salaries and wages that are

appropriate to them. The proponents also provide a safe and healthy environment in the work

place, conducive to the physical and moral well being and growth of the employees.

C. Government

One of the problems that our country is facing right now is the high rate of

unemployment. Putting up a business will surely help reduce the rapid growth of unemployed

citizen by hiring qualified applicants. As years go by with a successful management, the

company will eventually expand and will continue to provide services to the people and to give

jobs to the competent and skilled aspirants.

From the taxes contribution from each employee along with the owners and the company,

the government has access to support organizations to reach out people in need in any way. It is

provide ways to help people improve way of living or contribution such as extending financial

support and to whatever t may serve best to the country.

A business must gain success, good reputation and trust by considering political and legal

aspects of the industry. Given that, the business should follow the laws and regulations of the

government. Such as:

1. Labor Code

Presidential Decree No. 442, such as amended a decree instituting a labor code thereby

revising and consolidating labor and social laws to afford protection to labor, promote

employment and human resources development and insure peace based on social justice.

2. Tax Laws

Tax Reform Act of 1997, Republic act No. 8424: An act amending the national internal

revenue code as amended and for other purposes.

3. Code of Sanitation

Presidential Decree 856: WHEREAS, the health of the people, being of paramount

importance, all efforts of public services should be directed towards the protection and

promotion of health and with the advance in the field of sanitation in recent years, there arises

the need for updating and codifying our scattered sanitary laws to ensure that they are in keeping

with modern standards of sanitation and provide a handy reference and guide for their

enforcement.

D. Other Beneficiaries

POPULATION:

In view of the fact that our country’s population is increasing very rapidly a greater

demand for food can be expected. Moreover, due to the problems constantly experienced by the

people regarding the economy and politics; the prices of commodities tend to increase. Because

of this, the proponents decided to put up “Donut Bite” where the proponents would offer good

quality service and nutritious foods that are affordable.

ECOLOGY:

Everyone has a responsibility to have a clean environment to live in, not only benefiting

to us but also with Mother Nature and our Creator.

The proponents are aware of the present picture of the environment; therefore the

proponents planned to the environmentalist by implementing reduce, re-use, and recycle. For

proper waste disposal, the proponents implemented the practice of segregating biodegradable and

non-biodegradable materials. Well interior designs were set up to serve as a diversion from the

unsightly scenes outside of the building.

Appendix C

Survey Questionnaire

Respondents,

Good day! We, the BSHRM and BS Tourism Students of Siena College, Quezon City would like to conduct a survey as a partial fulfillment in our course in HRM 111/ TRM 111 “Entrepreneurial planning (Introduction to Feasibility Study)”. The name of the proposed business is “DONUT BITE”. Kindly answer the following questions for us to complete the study and rest assured that all data and information gathered will be confidential.

Thank You!

PLEASE CHECK THE APPLICABLE ANSWERS.

1. RESPONDENTS PROFILE:

NAME: (OPTIONAL)

ADDRESS:

AGE GENDER STATUS

15 – 20 Male Single

21 – 25 Female Married

26 – 35 Separated

36 & above

MONTHLY INCOME / ALLOWANCE OCCUPATION

BELOW Php 10, 000.00 Business Man/ Woman

Php 10, 001.00 – Php 20, 000.00 Company Employee

Php 20, 001.00 – Php 30, 000.00 Teacher / Professor

Php 30, 001.00 – Php 40, 000. 00 Students

Php 40, 001.00 – Php 50, 000.00 Others (Please Specify)

Php 50, 001.00 and above

2. WHAT DO YOU PREFER TO EAT WHEN YOU SPEND YOUR SNACKS OR MERIENDA?

Pizza Doughnut

Pastries Others, (Please Specify)

Cakes

3. WHAT DO YOU PREFER TO DRINK WHEN SPENDING YOUR SNACKS OR MERIENDA?

Juice Soda

Coffee Others (Please Specify)

4. HOW OFTEN DO YOU EAT DOUGHNUT?

Always Sometimes Never

5. WOULD YOU LIKE THAT YOUR DOUGHNUT HAVE A TOPPINGS?

Yes No

6. WHAT TOPPINGS DO YOU LIKE FOR YOUR DOUGHNUT?

Sprinkles Mallows

Nuts Kisses

7. WHAT ESTABLISHMENT DO YOU PREFER FOR SPENDING YOUR SNACKS OR MERIENDA?

Dunkin Donut Krispy Creme

Mister Donut Go nuts Donuts

8. HOW OFTEN DO YOU PASS ALONG CONGRESSIONAL AVENUE?

Always Sometimes Never

8. IF THERE IS AN ESTABLISHMENT SERVICES SUCH AS DONUT BITE IN THE CONGRESSIONAL AREA WOULD YOU PATRONIZE IT?

Yes No

Thank You & God Bless!!!

DONUT BITE

A Project Feasibility Study

Presented to the Faculty

Siena College, Quezon City

In Partial Fulfillment of the Requirements

for the Degree of Bachelor of Science in Travel Management

and

Bachelor of Science in Hotel and Restaurant Management

Canlas, Antonio III

Corpuz, Kelvin Lloyd

Dionisio, Jordean Jayson

Madulid, Christian

Vargas, Christian Jay E.

October 2011

Donut Bite (Chapter 1 - 7)

Documents

Transcript of Donut Bite (Chapter 1 - 7)