The Rice Bistro Powerpoint

8/14/2019 The Rice Bistro Powerpoint

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By:Mary Chienny Anne Hocosol

Mari SapinosoFederico Cancino Jr.


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EXECUTIVE SUMMARY


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TYPE OF BUSINESS

Name of the Enterprise

The business will be named asThe Rice Bistro

, wherein therice is the main ingredient of our product. The word bistro isa French word for a small restaurant which sells low priced food.

Location

The business will be placed along Gen. Emilio AguinaldoHighway near Land Transportation Office in Palico, City ofImus Cavite. We choose this location because the passersby, thestudents and the residents around the area are a big market forour product. The place is also surrounded by manyestablishments where we can reach more customers and wide

market coverage.The students from Gen. Emilio Aguinaldo High School,DataCom and Cavite State University-Imus will be a big marketfor our product wherein they can truly afford to buy a satisfyingmeal thru dine in and take out.


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The ProductThe Rice Bistro will sell mixed and topped from meat,

seafood and vegetables. The Special Fried Rice will be positioned as our main product wherein the low budgetcustomers will have the capacity to buy it and can be trulysatisfied. Our product offerings will be divided into fourother categories, namely: Veggie Topped Rice, SeafoodTopped Rice, Breakfast Meals and Meat Topped Rice.

The Proponents The Rice Bistro will be a partnership between Mary

Chienny Anne M. Hocosol, Mari Sapinoso and FeredericoCancino Jr. The partners will take charge of all thetransactions and responsibilities of the enterprise. The

partners will be handling the financing, marketing and theoperation of the business.


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MANAGEMENT, MARKETING ANDFINANCIANG HIGHLIGHTS


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Marketing Aspect Marketing aspect determines your customer and justify thatthe products will be patronized and the business itself has a

place in the market. The target market of The Rice Bistrowill be the students, residents and the passersby in the area

which is Gen. Emilio Aguinaldo Highway near LandTransportation Office in Palico, City of Imus Cavite.Marketing aspect shows the demand and supply analysisand market projection based on the data gathered thru

conducted survey. Marketing strategies like posting atarpaulin around the area will be done.


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MANAGEMENT A SPECT

The partnership type of organization will be adaptedwherein the partners will contribute money, timeskills and expertise to the success of the business.The proposed business will be owned and operatedby: Mary Chienny Anne Hocosol, Mari Sapinosoand Federico Cancino. Each partner is expected tocontribute an equal share of money and equalshare in profits and losses. The business will hire a

manager, two cook and two service crew which willbe in-charge in the daily operation.


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F INANCIAL A SPECT

The initial investment of The Rice Bistro is PhP250,000.00 which came from the partners contribution. This aspect will determine if the studyif feasible or not based on the computed financialstatements.


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SOCIO-ECONOMIC CONTRIBUTIONS

Business establishment contributes a lot to thegrowth and development of Philippine economy.The Rice Bistro will help to contribute additionalearnings to the government by paying taxes.Through this, the government can have additional

funds to provide building infrastructures, schools,hospitals and creating new projects for the benefitof the people in the community.The business will help to provide employment to aperson who needs it. An employed person can help

himself to provide for his family. By this, he can alsohelp the government by paying income taxes.


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MARKETING PLAN


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P RODUCT / S ERVICE TO S ELL

The Rice Bistro will sell special mixed and toppedrice with different toppings from meat, seafood andvegetables. The Special Fried Rice will be our mainproduct wherein the low budget customers will havethe capacity to buy it and can be truly satisfied. Thespecial fried rice will be used for topped rice. Theproduct offerings will be divided into four othercategories with their corresponding toppings.


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VEGGIE TOPPED RICE

Mushroom VeggieTofu VeggieVegetable only

For people wants a healthy meal. The mainingredients will be mushroom and tofu which willact as meat and mixed together with vegetablessuch as broccoli, cabbage, bean sprouts andswamp cabbage leaves (kangkong).


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BREAKFAST MEALS OR T APSILOG M EALS

Hotdog with eggChorizo with eggTocino with egg

Tapa with eggThis is for people who want a light meal for breakfast.In this category, the proponents incorporated thefamous Tapsilog to make it very Filipino.


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S EAFOOD TOPPED R ICE

Squid & Mussel topped riceShrimp and Squid topped riceTuna topped rice

For people who are tired of eating the usualflavors, seafood topped rice will be one of thesolutions. The squid, mussels and shrimp will besauted in butter to give it a different flavor.


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MEAT TOPPED R ICE

Chicken Adobo Topped RicePork Barbeque Topped RiceBeef Steak ( bistek tagalog ) Topped Rice

The proponents have incorporated the famousFilipino dish such as adobo, barbeque and bistektagalog to make every meal more enjoyable andexciting.


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DIFFERENCE AMONG COMPETITORS

The products differ among the competitors becausethe proponents incorporated much of the Filipinodishes on every rice meals that you cant be seenon any fast food stalls. If you look at the idea of theother businesses which offers topped rice they donot usually incorporate Filipino dishes. Like, theChowking Chao Fan which is adapted from theChinese culture and the product of Rice in a Box

which is also adapted from the other Asiancountries.


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The proposed business will be establish along Gen.Emilio Aguinaldo Highway, near Land andTransportation Office, Palico IV City of Imus, Cavite. Theenterprise will acquire the ingredients, supplies and

equipments that are needed in its daily operation. It willoperate six (6) days a week, twelve (12) hours a dayfrom seven (7 am) in the morning to seven (7 pm) in theevening. The business target market was mostlystudents which classes are from Monday to Saturday

and will be the operating days of the business. Thebusiness will operate three hundred (300) days a year.


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TARGET MARKET.


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AREA C OVERAGE

The business will be placed along Gen. Emilio Aguinaldo Highway near Land Transportation Officein Palico IV, City of Imus Cavite. The area issurrounded by many schools such as Gen. Emilio

Aguinaldo National High School, Datacom, ImusVocational School and Cavite State University Imus. It is also surrounded by many establishmentssuch as banks, government offices, business

enterprises and a residential area. The businesswill place along the highway which is veryaccessible for the passersby, customers and thetarget market.


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CONSUMER / C USTOMER

The business main target market will be thestudents from the surrounding schools highschool to college. The budget meals will be trulyafforded by the students. The residents and thepassersby will be catered by the product from allage groups which belong to upper class, middleclass and lower class groups.


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P ROJECTED P OPULATION IN 5 Y EARS

YEAR POPULATION

0 12,008

1 12,488

2 12,988

3 13,508

4 14,048

5 14,610


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P ROJECTED A NNUAL DEMAND

Year ProjectedPopulatio

n

Likes toeat

mixed/topped rice

87.75%

Willing totry a new

kind

90.75%

TotalDemandper Day

24%

Will reallybuy theproduct

92.50%

AnnualDemand

(300 Days)

2014 12,488 10,958 9,944 2,387 2,208 662,400 2015 12,988 11,397 10,343 2,482 2,296 688,800

2016 13,508 11,853 10,757 2,582 2,388 716,400

2017 14,048 12,327 11,187 2,685 2,484 745,200

2018 14,610 12,820 11,634 2,792 2,583 774,900


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COMPETITOR S P RODUCT P ROFILE

Competitors Price (Php)

Seating Capacity Production/Day (per cup of rice)

Mc Donalds 50.00 110.00 130 180

7Eleven 39.00 69.00 6 100

Ministop 36.00 59.00 2 90

Karenderia (3) 35.00 45.00 72 730


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P ROJECTED S UPPLIES

Competitors Average Capacity ofCompetitors

No. of Day in a Year Annual capacity

Mc Donalds 180 360 64,800

7 Eleven 100 360 36,000

Ministop 90 360 32,400

Karenderia (3) 730 300 219,000

TOTAL 1,100 352,200


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DEMAND AND S UPPLY G AP A NALYSIS

Year Demand Supply Gap Percentage

2014 662,400 352,200 310,200 53.17%

2015 688,800 366,288 322,512 53.17%

2016 716,400 380,940 335,460 53.17%

2017 745,200 396,178 349,022 53.17%

2018 774,900 412,025 362,875 53.17%


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S UMMARY OF P ROJECTED A NNUAL S ALES IN P ESOS

Year Market Total Sales per

Day (PhP) Number of Days

in Year Projected Annual

Sales (PhP)

1 300 18,483.00 300 5,544,900.00

2 312 19,673.00 300 5,901,900.00

3 324 21,470.00 300 6,441,000.00

4 337 22,943.00 300 6,882,900.00

5 350 24,792.00 300 7,437,600.00


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OWN MARKETING PROGRAM /STRATEGIES

A tarpaulin which contains the information about the openingday and special promos will be provided and will be placed inthe target areas (front of Gen. Emilio Aguinaldo National HighSchool, Datacom, CVSU-Imus, Palico IV, Toll Bridge and LTOOffice). The said tarpaulin will also be placed outside the foodstall to be easily recognized by the people. A flier about thespecial promo information will be given for the passersbyaround the area. A page on social media website likeFacebook will be made to reach people online about theproduct offered. This is also a medium to exchange

comments, suggestions and feedback among customers.


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P RODUCTION / OPERATION PLAN


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LABOR REQUIREMENT

The proposed project will require two (2) cooks, two(2) service crews for its daily operation. They will beresponsible in the orderliness of production andservice, cleanliness of the food stall and in makingof the product.


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PLANT / FACTORY LOCATION

The proposed business will be located along Gen.Emilio Aguinaldo Highway near Land TransportationOffice in Palico, City of Imus Cavite. Theproponents choose this location because the

passersby, the students and the residents aroundthe area are a big market for our product. The placeis surrounded by many establishments where wecan reach more customers and wide marketcoverage.

The location has four (4) main competitors whooffer rice, but none of them offers the same kind ofproduct such as mixed rice and topped rice. Thelocation is a commercial area which will beavailable in building the establishment.


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VICINITY MAP


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PLANT LAYOUT


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BACKVIEW


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WASTE DISPOSAL SYSTEM

Waste that will be produced by the operation of thebusiness includes plate leftovers, vegetables skin andexcess, food wastes, plastic containers from supplies,canned containers, bottles, paper cups and box andother wastes. The food wastes which are biodegradablewill be saved and will be given to people who raiseanimals such as dogs and pigs. In disposing wastes, a trash can will be providedinside and outside the stall and will be divided into non-biodegradable and biodegradable waste. Theaccumulated waste will be disposed during the weeklygarbage collection by the Local Government Unit of Cityof Imus. A pipeline will be installed in the kitchen andwashing area that will be linked to the drainage systemin the area.


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QUALITY CONTROL SYSTEM

The business will hire a well experienced andhardworking employee, such as cook and service crew.These employees will undergo training to be assured ofthe following guidelines regarding quality control.The proponents will make sure to maintain cleanliness

inside and outside of the food stall, especially theworking and claiming area.The employees will be taught of the proper wastedisposal system.The employees is required to maintain a good personalhygiene, well groomed, cutting of nails and using ofcosmetics for service crew.The proponents will ensure employee awareness ofsafety and emergency procedures, maintain and utilizeequipment and adequate store supplies.


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P RODUCTION PER YEAR Year Maximum

Capacity per Day Number of Days in

a Year Total Production

per Year (in bowls)

2014 300 300 90,000

2015 312 300 93,600

2016 324 300 97,200

2017 337 300 101,100

2018 350 300 105,000


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TOTAL P RODUCTION C OST

Year Market TotalProduction

Cost per Day (PhP)

Number ofDays in Year

ProductionCost per Year

(PhP)

1 300 12,325.56 300 3,697,668.00

2 312 13,170.41 300 3,951,123.00 3 324 14,135.49 300 4,240,647.00

4 337 15,142.62 300 4,542,786.00

5 350 16,199.03 300 4,859,709.00


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ORGANIZATIONAL PLAN


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LEGAL FORM OF BUSINESS

The organization of the business is a partnershiptype. By the articles of partnership, partners bindthemselves to contribute money, time and expertiseto the operation of the business. The partners will

equally contribute money and divide the profitsequally among themselves. The proposed businesswill be consisting of the following partners: MaryChienny Anne M. Hocosol, Mari Sapinoso and

Federico I. Cancino Jr.


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MISSION

To provide delicious and affordable food and anexcellent customer service for every customer toexperience.


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VISION

We envision being one of the big food chain thatwill make every hungry individual satisfied bybringing enjoyable food with our very own Filipinotastes.


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ORGANIZATIONAL STRUCTURE

The proposed business will have a total of five (5)employees a manager, two (2) cooks and two (2)shop assistants. The business will adapt the lineand staff type of organization where in the manager

will have the direct supervision and control over hisemployees. The manager will be expected tohandle proper recording of daily transactions. Thetwo (2) cooks and two (2) shop assistants will be

expected to perform all the duties andresponsibilities in production to serve thecustomers.


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Manager (1)

Cook (2) Service Crew (2)


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QUALIFICATIONS OF OFFICERS Position No. of Employees Requirements

Manager 1

Male or Female, 21-26 yrs.Old,

College Level, BusinessAdministration

Strong leadership skills.

Cook 2

Male or Female, 18-40 yrs.Old,

High School Graduate

With pleasing personality

1 year experience in cookingin any food stall

Service Crew 2

Male or Female, 18-40 yrs.Old.

High School Graduate

With pleasing personality

Hardworking, knowledgeable

in customer service


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J OB DESCRIPTION

Position Job Description

Manager

Effectively manage employee turnover. Provide a positiveworking environment and handle employee issues appropriatelyand in a timely manner.

Utilize labor management tools, including effective scheduling,

to maximize productivity, profitability and margins.

Encourage store employees to take ownership for their performance and career development plans; follow up on aregular basis.

Provide exceptional customer service and ensure the employeesalso provide the same level of service.

Communicate, execute, and manage marketing and merchandising programs.

Manage store revenue, including cash handling, depositreconciliation and delivery of deposits to bank.

Manage speed of service results, controls inventory that is usedfor service orders, and is responsible for the overall organizationand appearance of the service center.


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Cook

Inspect food preparation and serving areas to ensureobservance of safe, sanitary food-handling practices.

Observe and test foods to determine if they have beencooked sufficiently, using methods such as tasting,smelling, or piercing them with utensils.

Weigh, measure, and mix ingredients according torecipes or personal judgment, using various kitchenutensils and equipment. Estimate expected food consumption; then requisitionor purchase supplies, or procure food from storage.

Coordinate and supervise work of kitchen staff.

Service Crew

Assist in kitchen processes and ensure customers havean enjoyable customer service Taking orders, serving food and handling payments Clearing off and setting tables, stocking supplies,cleaning dishes and dropping off food, beverages andcondiments

Ensure to give the needs of the customers


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Activity Duration (In Month)

1 st 2 nd 3 rd 4 th 5 th

1. Preparation offeasibility study

1. Sourcing of funds

1. Site selection

1. Development ofprospective

1. Procurement offurniture and fixtures

1. Registration ofbusiness

1. Hiring of employees

1. Promotion

1. Start of operation


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ADMINISTRATIVE EXPENSES

Position Monthly Salaries (PhP)

Annual Salaries (PhP)

Manager 18,000.00 216,000.00

Cook 1 12,000.00 132,000.00

Cook 2 12,000.00 132,000.00

Service Crew 1 9,600.00 105,600.00

Service Crew 2 9,600.00 105,600.00

TOTAL 57,600.00 691,200.00


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FINANCIAL PLAN


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The financial aspect of this study will determine theprofitability and stability of the business. Thisaspect will show the results of financial position ofthe business

This chapter will discuss the total project cost,sources of financing, projected cash flow, projectedincome statement, projected balance sheet, returnon investment, payback periods, sales ratio,breakeven analysis and the list of assumptions

used. It will also include the schedule ofdepreciation, expenses, salaries, salary deductions,administrative expenses and costs.


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TOTAL PROJECT COST FIXED CAPITAL ASSETS

Equipment PhP 90,510.00

Furniture - Store 23,968.00

Furniture - Office 5,497.00

Leasehold Improvement 40,000.00

Kitchen Utensils 23,290.00

Total PhP183,265.00

PRE-OPERATING EXPENSES Advertising Expenses 2,900.00

Organizational Expenses 6,180.00

Total PhP9,080.00

WORKING CAPITAL

Cash 13,510.00

Raw Materials 11,695.00 Packaging Supplies 1,680.00

Prepaid Rent 30,000.00

Office Supplies 770.00

Total PhP57,655.00

TOTAL PROJECT COST P250,000.00


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SOURCES OF FINANCING

The business requires a total project cost of PhP250,000.00 which will be contributed by thepartners equally. The partners will contribute anequal contribution percentage and will share the

profit and losses equally.


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PARTNER S C ONTRIBUTION Partners Initial Investment Profit and Losses

Mary Chienny Anne M.Hocosol

83,333.33 33.33%

Mari Sapinoso 83,333.33 33.33%

Federico Cancino Jr. 83,333.33 33.33%

TOTAL PhP250,000.00 100%


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THE R ICE B ISTRO S TATEMENT OF C ASH F LOW


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Year 1 Year 2 Year 3 Year 4 Year 5 Cash In-flow fromOperating Activities

Net Profit 378,924.32 414,000.62 537,023.63 606,542.03 736,874.39 Add: Depreciation

expenses 0.00 26,662.50 26,662.51 26,662.51 26,662.51

Less: Prepaid rent

30,000.00

Net Cash provided byOperating Activities

348,924.32 440,663.12 563,686.14 633,204.54 763,536.90

Cash Out-flow fromInvestment Activities

Machineries &Equipment

90,510.00

Furniture -Store 23,968.00

Furniture - Office 5,497.00

LeaseholdImprovement

40,000.00

Net Cash frominvestment activities

159,975.00

Cash Flow fromFinancing Activities

Proceeds fromPartner

250,000.00

Withdrawals ofPartners 113,677.30 124,200.19 161,107.09 181,962.61 221,062.32 Net Cash fromFinancing Activities

136,322.70 (124,200.19) (161,107.09) (181,962.61) (221,062.32)

Net Cash 325,272.03 316,462.94 402,579.05 451,241.93 542,474.58 Cash at the Beginningof Period

0.00 325,272.03 641,734.96 1,044,314.01 1,495,555.94

Cash at the End of

Period 325,272.03

641,734.96 1,044,314.01 1,495,555.94 2,038,030.52


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THE R ICE B ISTRO S TATEMENT OF P ROJECTED INCOME


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Note 2014 2015 2016 2017 2018

Sales 5,267,411.00 5,632,101.00 6,119,240.00 6,538,913.00 7,065,560.00

Less: Cost of Sales 4,533,330.87 4,846,747.47 5,153,348.91 5,472,492.89 5,807,998.52

Gross Profit 734,080.13 785,353.53 965,891.09 1,066,420.11 1,257,561.48 Less: Operating andAdministrativeExpenses

Selling Expenses 1 2,900.00 2,987.00 3,076.61 3,168.90 3,263.99

AdministrativeExpenses

2 189,859.67 190,937.07 195,637.87 196,762.60 201,619.79

Total OperatingExpenses

192,759.67 193,924.07 198,714.48 199,931.50 204,883.78

Income Before Tax 541,320.46 591,429.46 767,176.61 866,488.61 1,052,677.70

Income Taxes (30%) 162,396.14 177,428.84 230,152.98 259,946.58 315,803.31

Net Income 378,924.32 414,000.62 537,023.63 606,542.03 736,874.39


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PROJECTED STATEMENT OF FINANCIAL POSITION

Note Year 1 Year 2 Year 3 Year 4 Year 5

Assets

Current Assets

Cash 325,272.03 641,734.96 1,044,314.01 1,495,555.94 2,038,030.52

Inventories 13,375.00 13,776.25 14,189.54 14,615.23 15,053.69

Office

Supplies 770.00 793.10 816.89 841.40 866.64Prepaid

Rent 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00

Total CurrentAssets

369,417.03 686,304.31 1,089,320.45 1,541,012.57 2,083,950.86

Non-CurrentAssets

Machineries & Equipment

90,510.00 75,425.00 60,340.00 45,255.00 30,170.00

Furniture -Store

23,968.00 19,973.33 15,978.67 11,984.00 7,989.33

Furnitures- Office

5,497.00 4,580.83 3,664.66 2,748.49 1,832.32

LeaseholdImprovement

40,000.00 33,333.33 26,666.66 19,999.99 13,333.32

Total Non-Current Assets

159,975.00 133,312.50 106,649.99 79,987.49 53,324.98

Total Assets 529,392.03 819,616.81 1,195,970.44 1,621,000.06 2,137,275.84


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Liabilities andOwner's Equity

Liabilities

Current Liabilities

Accounts Payable14,145.00 14,569.35 15,006.43 15,456.63 15,920.33

Total Liabilities 14,145.00 14,569.35 15,006.43 15,456.63 15,920.33

Partner's Capital

Partners'Contribution,beginning

250,000.00 515,247.03 805,047.46 1,180,964.00 1,605,543.42

Add: Net Income378,924.32 414,000.62 537,023.63 606,542.03 736,874.39

628,924.32

929,247.65

1,342,071.09

1,787,506.03

2,342,417.81

Less: Partners'Withdrawal

113,677.30 124,200.19 161,107.09 181,962.61 221,062.32

Total Capital 515,247.03 805,047.46 1,180,964.00 1,605,543.42 2,121,355.49

Total Liabilities andOwner's Equity

529,392.03 819,616.81 1,195,970.44 1,621,000.05 2,137,275.83


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RETURN OF INVESTMENT Year 1 Year 2 Year 3 Year 4 Year 5

BeginningInvestment

250,000.00 515,247.03 805,047.46 1,180,964.00 1,605,543.42

Add: Equity,Ending

515,247.03 805,047.46 1,180,964.00 1,605,543.42 2,121,355.49

Total: 765,247.03 1,320,294.49 1,986,011.47 2,786,507.43 3,726,898.92

Divide by: 2 2 2 2 2

Average Equity 382,623.51 660,147.25 993,005.73 1,393,253.71 1,863,449.46

Net Income 378,924.32 414,000.62 537,023.63 606,542.03 736,874.39

Divide: AverageEquity

382,623.51 660,147.25 993,005.73 1,393,253.71 1,863,449.46

Return onInvestment

0.990332039 0.62713376 0.54080617 0.435342122 0.395435672


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P AYBACK P ERIOD Months

Investment 250,000.00

Less: Net Income for Year 1 378,924.32 12

Difference 128,924.32

Divide by Net Income for Year1

378,924.32 4.082851885 Payback Period

Net Income 378,924.32

Divided by: Payback Period 4.082851885 92,808.74 Income per Month


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S ALES R ATIO

Year 1 Year 2 Year 3 Year 4 Year 5

Gross Profit 734,080.13 785,353.53 965,891.09 1,066,420.11 1,257,561.48

Divide by NetSales

5,267,411.00 5,632,101.00 6,119,240.00 6,538,913.00 7,065,560.00

Sales Ratio 13.94% 13.94% 15.78% 16.31% 17.80%


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BREAK EVEN POINT

Year 1 Year 2 Year 3 Year 4 Year 5

Capacity per Day 300 312 324 337 350

Number of Days in a Year 300 300 300 300 300

Target Supply per Year 90,000 93,600 97,200 101,100 105,000

Variable Cost 4,533,330.87

4,846,747.47

5,153,348.91

5,472,492.89

5,807,998.52

Divide by: Cost per Unit 90,000 93,600 97,200 101,100 105,000

Variable Costper Unit 50.370343 51.78149006 53.0179929 54.12950435 55.31427162

Fixed Cost 1,019,682.27

1,081,023.67

1,103,112.14

1,125,268.13

1,149,145.76

Variable Cost per Unit 50.370343 51.78149006

53.0179929 54.12950435

55.31427162

Break-even in terms of UnitSales

20,243.70 20,876.64 20,806.37 20,788.44 20,774.85


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LIST OF ASSUMPTIONS USED

Sales Annual increase of 3% based on the inflation growth rate of thePhilippines.Price Annual increase in price is based on 3% inflation growth rate ofthe country.Cost of Raw Materials Annual increase of raw materials is based onthe inflation rateRent Expense Rent expense will have 3% increased every two years.Depreciation Method for Machineries and Equipment, Store Furniture,Office Furniture and Leasehold Improvement machineries, equipmentsand furniture will have six years of useful life.There will be 2% annual increase on the following:

Utilities ExpenseSalaries

Taxes and Licenses Advertising ExpensesRepairs and MaintenanceOffice Supplies

The partners will have annual drawings 30% from the net income


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The Rice Bistro Powerpoint

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