Chapter 1

INTRODUCTION

Filipinos are naturally born food lovers. Whether it’s from a fancy restaurant or

simply just “lutong bahay” Filipinos just can’t get enough of food. Moreover, Filipinos

seemed to love food served in large or unlimited portions. This can be proven by the

fast growth of buffet restaurants in the country.

A restaurant is a business which prepares and serves food and drinks to

customers in exchange in money. Restaurant dining is not just about the food, at least

from the customer's perspective. A 2011 Gallup study found that when customers eat

out, they seek an experience that leaves them feeling good. The study also showed that

customers are more likely to spend more money and patronize a specific restaurant

more often when they feel engaged if they're greeted warmly and treated with care and

respect by the staff, for example. A restaurant's managers and its employees all share

the responsibility for ensuring the customers are treated well and left with an overall

positive impression of their dining experience.

Traditional restaurant service used to begin with a customer ordering his or her

meal from items listed on a menu. The restaurant controlled the selection and portion

sizes in order to maximize the profit from each plate served. With the advent of buffet
meals, however, many restaurants can serve a larger number of customers with a

minimum level of staffing, thus improving their profit margins through volume sales.

The term buffet originally referred to the French sideboard furniture where the

food was served, but eventually became applied to the serving format. The word “buffet”

became popular in the English- speaking world in the second half of the 20th century

after Swedes had popularized the “smorgasbord” in New York. The word is now fully

accepted into English language.

A buffet is generally a self-service form of dining in which the customer pays a fixed

price and is entitled to select as much food as he or she wishes. The wait staff in a

buffet restaurant may still refill beverages and remove plates, but there is no menu as

such. Cooks prepare food in bulk, and runners replenish the selection of food as

necessary.

A buffet arrangement could consist of one long serving line with both cold and hot

items, or a collection of smaller stations dedicated to a particular part of the meal, such

as cold salads, meats, vegetables or desserts. A buffet may be completely self-serve,

with appropriate serving tools such as slotted spoons or tongs, or there may be workers

assigned to carve meats or prepare made-to-order dishes, such as egg omelets.

 Originating in 16th Century France, buffet dining has stood the test of time and

continues to be a popular choice for many restaurant customers. By definition, a buffet

is a meal where guests serve themselves from a variety of dishes set out on a table or

sideboard (from Food Lover’s Companion). Today there are many restaurant

concepts centered around a buffet theme. Buffets are also served on special occasions

or as restaurant promotions. Restaurants who offer catering services use buffets as an

efficient way to feed a large number of guests.

There are a few different types of buffet restaurants and, depending on the

restaurant, the foods can be a variety of ethnic types or centered around a singular

culture, such as a Chinese buffet, or a theme, such as pizza or steak. Some Buffet

restaurant follow the model of all-you-can eat operate in a pretty systematic way.

Customers usually pay at the door (or on the way out) at a fixed price and then help

themselves to the food placed in the buffet. Many all-you-can-eat buffets offer a lot of

choices, which can be overwhelming. The menus usually do not vary, although new

items may be offered from time to time. Or there may be daily specials or themes added

to the usual buffet offerings.

In a cafeteria style buffet the food is generally prepared ahead of time and placed on

shelves. Customers come through the line and choose what they want; sometimes the
food comes pre-wrapped. Pricing is often by the piece (i.e. a sandwich, drink and side

dish). Customers select their foods and then carry their trays to the register to pay.

Breakfast buffet restaurants are traditional sit and order from a menu types, but on

weekends may offer a special buffet that is only open during the breakfast hours. These

restaurants may start early and end during “brunch” so they can transition to the regular

lunch and dinner menus. Some restaurants only operate buffet style for certain

occasions. Usually Mother’s Day is a popular time of the year where people head out to

restaurants that offer brunch buffets, although some restaurants may offer buffets on

other holidays or just on Sundays.

In the Philippines, All-You-Can-Eat buffet restaurants become a big trend

especially with large group of families and friends. There are a lot of reasons that

surfaced on why Filipinos have come to love AYCEs. First, buffets are cheaper than

gourmet and fine dining restaurants. When you dine at such restaurants, a complete

course would cost you quite an amount of money with limited choices of food and If

you’re unlucky, some of the dishes in the course may not of your liking. Unlike AYCEs

you only get to pay as much as Php 800 and enjoy a wide array of dishes, desserts, and

beverages to choose from. Second, buffets offer a lot of choices. Third, Filipinos are

known for being hospitable. It is obvious that they love to eat with their guests. It is what

we can consider as the ultimate bonding experience. With the large number of guests to
be entertained and so little time, a buffet is the perfect place to go. Fourth, Filipinos

don’t like going through an extensive menu. When asked what they are having they

always answer either of the following; “Kahit ano”, “Kung anong meron”, “Bahala ka

na”, or “kung anong sa’yo”. A buffet takes away that burden. Since a wide array of food

choices are laid down right before your eyes, You’ll never get a hard time choosing

which dish you are having. Lastly, Filipinos love to eat a lot.

With all aspects laid above, the proponents came up with the idea of “Bahay

Kainan” ( a Modern contemporary Filipino buffet restaurant) that showcases Filipino

delicacies that definitely introduce the Filipino culture by serving the famous Filipino

dishes and at the same time, satisfying what Filipinos love to do. –Eat. Moreover, the

proposed business not only aims to establish a food business but also to introduce their

modernistic approach menu to the locals and for them to continuously patronize these

Filipino dishes.
 Chapter 2

PROJECT BACKGROUND AND HISTORY

This chapter contains project proponents, proposed name of the project, vision,

mission, emblem, type of business organization, project location and history of the

project that leads to the presentation of the study.

Project Proponents

To establish a proposed business, there should be a person or people who

contribute their knowledge, skills, and resources to make the project possible.

The proponents of the study are Angelica Haylo, Paolo Gabriel Mapalad, Edlyn

Donato, Jovelle Santos Catanyag, Carmille Subong, Edward Joseph Dion, April

Sweetzil Grace Amistoso, Shara Laine Lopez and Dexter Rosales are all graduating

students of Our Lady of Fatima University - Antipolo Campus taking up Bachelor of

Science in Business Administration major in Marketing Management.

Ms. Haylo will be the appointed general manager who will be responsible for

overall operations of the business. Aside from her, Mr. Mapalad will be appointed as

marketing manager who will be responsible for developing marketing strategies and

monitoring marketing activities. Ms. Haylo and Mr. Mapalad will be the capitalist-

industrial partners to the capital of the partnership. The other seven proponents will be

set as the capitalist partner to the capital of the partnership.

 The proponents agreed to register the business as partnership wherein there are

three groups in terms of contribution which are the capitalist partner, industrial partner.

And capitalist-industrial partner. All the proponents are considered as the owner of the

company since the proponents have the required knowledge for the business.

Proposed Name of the Project

Branding is essential in establishing a business. It is when you create a unique

name and image of your product or service offered in the minds of your consumer. An

attractive and interesting brand name gets the attention of the target market which leads

to increase in growth and market profitability.

The proponents came up with, “Bahay Kainan” as the name of the proposed

business. The name is composed of two words, “bahay” comes from a Tagalog word

that means a “home or a dwelling” which reflects the vibe that the proponents want to

let the customers feel the “homey feel or ambience” when they are eating at the

restaurant. The second word, “kainan” which simply means “a place where one eats”

and also describes the Filipino tradition of ““eating together” since the restaurant serves

meals for lunch and dinner.

Vision

To be one of the best restaurants in serving Modernized Filipino dishes.

Mission

To consistently provide a homey, comfortable and clean ambience that the

customers will enjoy and continuously offer quality food and services fit for the taste of

our valued customers.

Emblem

Emblem or logo is a recognizable and distinctive graphic design, stylized name,

unique symbol or other device for identifying an organization. Logo is a visual

cornerstone of a company’s brand. The company’s identity is visually expressed

through its logo which along your company’s name, is one of the main things that

makes your business remarkable.

The proponents came up with an idea of the house placed on top of the three

silverwares that are often used in fine dining for the emblem to literally represent the

name of the proposed business, Bahay Kainan. The house is associated to feeling of

home and comfortability while the silverwares symbolizes eating in a sophisticated

manner. The proponents used black as font color and High Tower Text as the font style

to project sophistication and elegance that is fit for the modernistic feel of the proposed

business.

The image of the emblem for the proposed business is shown in figure 1 on the

following page.
 Figure 1

Emblem of Bahay Kainan

Type of Business Organization

A business should be classified either a sole proprietorship, a partnership or

corporation. This way, the source of the capital either financial or industrial may be

classified as well as the distribution of the proponent’s profits.

The proponents decided to register the proposed business as “partnership”.

Since the proponents agreed to pool their money, property, skills and other resources to

a common fund with the intentions of distributing profits equally among the proponents.

The partnership is formed for the purpose of the business which will also include dealing

with managerial and restaurant operations. The purpose of forming the partnership is to

secure the assets and to make sure that the profits would be distributed equally to the

proponents. The agreement on the distribution of profits is stated in the partnership

contract. In cases of failure for the distribution of profits the law should be applied.

The proponents considered partnership as the type of business organization to

be registered because of its advantages. It is easy to establish and the start-up cost of

the business is low because the partners share their assets to form the fund, there is

also a great borrowing capacity, high caliber employees can be made partners,

partners’ business affairs are private and more importantly, the change of legal structure

is easy if the circumstances change.

As for the classification of partnership, the proponents decided to choose limited

partnership. There are a lot of advantages and disadvantages in limited partnership but

the proponents chose this because it is more suitable for the proposed business. The

advantage of limited partnership is the liability of partners are only up to the sums that

they have invested at the times of failures and losses, unlike in general partnership
where the partners are liable up to the extent of their personal assets. However, there

are also disadvantages in limited partnership, in terms of taxes. Since, limited

partnerships are not considered as a legal structure the taxing authorities might

recognize the structure as non-partnership for tax purposes.

Project Location

Positioning is essential in establishing a business. It is very difficult to find a place

where you could position your business, there are a lot of things to be considered such

as, the accessibility of the place, the traffic or the number of customers that pass

through the area. In other words, the location of the business is also very important to

its growth and profitability. The proponents studied the selection of the location of the

business very well. It suits the proposed business and the location itself is full of market

potential. The proponents selected Taytay, Rizal because there are no known buffet

restaurants in the area.

The proposed business will be located at Block 33 Lot 6, Fatima Drive, Tower

Hills Subdivision, Brgy. Dolores, Taytay, Rizal.

Taytay Rizal is a town known for high quality ready made dresses and

woodworks. Thus it is famously known as the " Garments and Woodworks Capital of the

Philippines", making it an ideal location for the project because of its potential market.

Aside from this, the municipality is gaining more investments as the time passes by. Big

investors like SM Prime Holdings, Puregold Price Club Inc., Wilcon Builders, Megaworld

Constructions have already ventured into the municipality. Plans for the expansion and

the development of Taguig's Mega City is also set in the area, making it an ideal

location for the project.

 Figure 2

Map of Taytay,Rizal
 Figure 3

Directions to Bahay Kainan

 Figure 2 presents the Map of Taytay, Rizal and Figure 3 presents the illustration

of the direction to Bahay Kainan.

History of the Project

Nowadays, food industry has been growing too fast and one trend in the

industry today are buffet restaurants. There are a lot of buffet restaurants in the

metropolis serving all sorts of cuisines from all over the world. The only problem is,

buffet restaurants are only invading that of the metropolis and though there are some

who established buffet restaurants outside the metro it is still not enough to cater

Filipino food lovers. This is one of the reasons the proponents came up with the idea of

the proposed business. The proponents saw the need of putting up a buffet restaurant

specifically in Taytay, Rizal because obviously there are no buffet restaurants in the

area. In addition, the proponents are also food lovers and are mostly looking forward of

putting up the business. Majority of the proponents agreed serving Modern Filipino

dishes in the menu. Furthermore, the proponents would like to share the love of Filipino

for food through Bahay Kainan.

 Chapter 3

MANAGEMENT AND PERSONNEL FEASIBILITY

This chapter focused on the discussion of personnel and management

information of Bahay Kainan. This includes the proposed number of employees, their

position, duties, responsibility, job description, job qualification and of course the salary

rates. The management proposal for the business such as : the management style, the

organizational structure, the general management and the systems and administrative

forms and records that will be used in the proposed business will most likely be

discussed in this chapter.

Personnel

Personnel Management is an administrative discipline of hiring and developing

employees so that they become more valuable to the organization. It is a significant part

of management concerned with employees at work and with their relationship within the

organization. It includes the function of employment, development and compensation-

These functions are performed primarily by the personnel management in consultation

with other departments.

Personnel management lays emphasize on action rather than making lengthy

schedules, plans, work methods. The problems and grievances of people at work can

be solved more effectively through rationale personnel policies.It is based on human

orientation. It tries to help the workers to develop their potential fully to the concern.It
also motivates the employees through its effective incentive plans so that the

employees provide fullest co-operation.

Restaurant Manager

He is in charge of supervising the whole restaurant. All of the staff must report to

him. He is held responsible for all the managerial decisions that needs to be done for

Bahay Kainan. This includes, inventories,managing the workforce,talking with suppliers,

talking to customers and managing the promotional activities for Bahay Kainan.

The proponents decided to alot 2 Restaurant Managers for Bahay Kainan. One

manager per shift, each has a separate team or set of staffs.

Restaurant Cashier

She is in charge of the register. She will be responsible in all the monetary

transactions between Bahay Kainan and the customers. This includes cash and credit

card transactions and balancing the register at the end of the shift. The restaurant

cashier also welcomes the guests and accommodates them.

Chef/ Head Cook

He is in charge of the over-all management of Bahay Kainan's kitchen. He is

responsible for training other cooks,overseeing the food preparation and making sure

that all the food are prepared according the standards of the management and

sanitation. He is also responsible for the menu, buying supplies and equipment. There

will be two chefs/ head cooks for Bahay Kainan. One is in charge for the lunch shift and
the other for the dinner shift. Each is assigned with a different set of menu and kitchen

assistants.

Kitchen Assistants

Bahay Kainan will have six kitchen assistants. Three for the lunch shift and the other

three, for the dinner shift. Each set of kitchen assistants will be assigned to a Chef/

Head Cook, depending on which shift they are assigned. The role of these kitchen

assistants is to help the chef/ head cook with the kitchen works.

Dining Attendants

These are the bussers or bus boys and the buffeters. There will be two bussers and

two buffeter per shift. The role of the bussers is to clean the tables, take plates, utensils

and drink wares to the kitchen to be washed, make sure they attend to the needs of the

customers and reset the tables for the next service. On the other hand, the buffeters are

the ones who bring out the food in the buffet table. They are in charge monitoring the

buffet tables, making sure that each chaffing dish is refilled every now and then. They

are also in charge of restocking plates, silverwares, utensils and drink wares in the

dining area.

Dishwashers

Keeps the kitchen staff supplied with clean plates, pans, pots, silverwares and

drinkwares. They are in charge of washing the used plates, silverwares and drink wares

that the bussers cleared from the dining area and making sure they are clean and ready
to use for the next service. They may also be in charge of keeping the kitchen clean

during a shift and take out trashes and clean floors. There will be two dishwasher per

shift for Bahay Kainan.

Security Guards

There will be one security guard assigned per shift for Bahay Kainan. They are in

charge to secure the whole vicinity. Their main role is to protect the guests and all the

employees from various hazards by utilizing preventive measures. They also have an

important role in executing the service. They are in charge of assisting customers with

vehicles in the parking area and making sure their vehicles are overseen every now and

then.

Table 1

Proposed Manpower of Bahay Kainan

Salary per Total salary per

Position Number month month
Restaurant Manager 2 10,000 20,000
Restaurant Cashiers 2 5,000 10,000
Chef/ Head Cook 2 8,000 16,000
Kitchen Assistants 6 5,000 30,000
Bussers 4 4,000 16,000
Buffeters 2 4,000 8,000
Dishwashers 2 5,500 11,000
Security Guards 2 12,000 24,000
Total 22 Php 135,000

Table 1 shows the Proposed Manpower for Bahay Kainan. Also, presented above are

details for the the manpower’s salaries and the number of the workforce. This helps the
proponents identify how many employees they need for the restaurant and how much

will they a lot for their working capital.

Job Specification and Job Description

According to an article from the University of Nebraska – Lincoln , Job analysis is

the process of gathering and analyzing information about the content and the human

requirements of jobs, as well as, the context in which jobs are performed. This process

is used to determine placement of jobs. Under NU Values the decision-making in this

area is shared by units and Human Resources. Specific internal approval processes will

be determined by the unit's organizational leadership. Job analysis defines the

organization of jobs within a job family. It allows units to identify paths of job progression

for employees interested in improving their opportunities for career advancement and

increasing compensation.

Job Analysis is a detailed examination of the tasks that make up a job, conditions

under which they are performed, and what the job requires in terms of aptitudes,

attitudes, knowledge, skills, and the physical condition of the employee. Its objectives

include :

a. Determination of the most efficient methods of doing a job.

b. Enhancement of the employee’s job satisfaction.

c. Improvement in training methods.

d. Development of performance measurement systems.

 e. Matching of job specifications with the person specifications in employee

selection.

Job description a broad, general, and written statement of a specific job, based

on findings of a job analysis. It generally includes duties, purpose, responsibilities,

scope, and working conditions of a job along with the job’s title, and the name or

designation of the person to whom the employee reports. Job description usually forms

the basis of job specification.

Each job has a description identifying the duties, qualifications, decision-making,

interactions, supervision received/exercised and impact of the position. Included in the

job description are the following qualifications:

a.) General Information

b.) Job Summary

c.) Salary Considerations

d.) Duties and Responsibilities

e.) Zone Definition Factors(General Knowledge, Skills and Abilities, Problem

Solving/Decision Making, Interactions,Nature of Supervision and Impact)

f.) Minimum Qualifications

g.) Physical Requirements

 Table 2

Job Description for the Manpower of Bahay Kainan

Position Job Description Qualifications Working Hours

Responsible for
the overall
operation of the - 4 years graduate
Bahay Kainan as of HRM or BA
well as achieving course.
profitable sales - With experience
results by in restaurant /
effectively management.
managing the
business and
ensuring excellent
Restaurant Manager customer service. 8
- At least 2nd year
college level or
graduate of a 2-
Handles all the year vocational
monetary related course
transactions of - With pleasing
Restaurant Cashiers Bahay Kainan personality 8

In charge of the
over-all kitchen - Male
work,which - HRM graduate
involves food (2-4 years) /
Chef/ Head Cook preparation. Culinary Arts 8

Assists the chef/ - Male

head cook in all the - At least high
Kitchen Assistants kitchen works. school graduate. 8
Position Job Description Qualifications Working Hours
In charge of
clearing and - At least high
cleaning the tables school
and resetting the graduate.
table for the next - With pleasing
Bussers service. personality 8
In charge for
monitoring the
buffet table,
refilling the - At least high
chaffing dishes school
and restocking graduate.
plates, silverwares - With pleasing
Buffeters and drink wares. personality 8
Responsible for
washing the
dishes, utensils,
pots and pans,
silverwares and
drink wares and
making sure that - At least high
the kitchen is clean school
Dishwashers at all times. graduate. 8
Responsible for
the over-all
protection of - Accredited of
Bahay Kainan, its security
employees and its company/
Security Guards customers. agency 12

Table 2 presents the job description and qualifications of the manpower for

Bahay Kainan. This information is important for selecting and hiring employees for the

restaurant.
Management Proposal

Management Style

Managers are the one who is in charge for a certain group of tasks, or a certain

subset of a company. A manager often has a staff of people who report to him or her.

Management style is a method of leadership that an administrator usually employs

when running a business. These styles are :

 Affiliative Style

This style provides objective in creating harmony among

employees and managers. Following the authoritative style of

management the company sets clear direction to the employees

and motivates the team by giving good feedback on their task

performance. Managers boost employees’ morale and abilities to

give their very best in everything that they do.

Affiliative style of management gives priority in everyone

involved in the organization. With this style managers can avoid

conflict and emphasizes good personal relationships among

employees. The company motivates employees by trying to keep

people happy by giving some incentives and benefits in order for

the employees to be motivated.

This management styles is implemented in the restaurant. This will help the

restaurant manager in managing the employees and the whole restaurant.

 Organizing is clearly defined as assembling required resources to attain

organizational objectives.

Organizational structure is typically a hierarchical arrangement of lines and

authority, communications, rights and duties of an organization. It determines how the

roles, powers and responsibilities were assigned, controlled, coordinated and how

information flows between the different levels of management.

 Restaurant
Manager

Restaurant Chef/ Head Dining Security

Cashier Cook Attendants Guards

Kitchen
Dishwashers
Assistants

Figure 5

Organizational Chart of Bahay Kainan

 An effective organization must have a good and well – presented organizational

structure. This way, the organization would function orderly and properly. The

employees and everyone involved in the organization should be fully aware of their

specific tasks to be able to work effectively and efficiently.

Figure 5 shows the organizational chart of Bahay Kainan, it can be implied here

the positions in the restaurant and their superiors. This way, the flow of command is

organized.

General Company Policies

Bahay Kainan operates from Monday through Sunday. The restaurant operates

from 10 am to 9pm serving lunch and dinner. There will be two shifting schedules, the

opening and the closing shift. Employees for opening shift has the 8am – 5pm schedule

and the closing shift has the 11:30am – 10:00 pm schedule. Shifting schedules would

be assigned by the restaurant manager. Punctuality is observed at all times.

Employees are supervisory and will be reporting to their designated managers.

All are required to use the biometric time machine in timing ins and outs. Employees are

granted a one (1) hour break.

Company Rules and Regulations

Business Hours

Company’s operating hours is flexible. It is open to business from Monday

to Sunday, from 10am to 9pm. The restaurant will serve lunch from 10am to 2pm and

dinner from 5pm to 9pm.

Hours of Work

Work schedules of the employees varies on the scope of their work. The working

schedules is patterned to the following :

 Regular Employees - will have an eight-hour day of work.

 Security Guard – will have a twelve-hour day of work.

All of which have a one hour regular meal break. There are two shifting schedules :

opening and closing shifts. Employees scheduled for the opening shift works from 8am

– 4pm and the closing shift works from 4pm – 12am schedule. Shifting schedules would

be assigned by the restaurant manager.

Meal Period

Employees are entitled to a one hour regular meal break. To avoid disruptions in

business operations, prolonged breaks exceeding the allowable duration of time and

unauthorized take-offs taken outside the designated meal break schedule will be treated

as tardiness. Before leaving, endorsements should always be observed.

Rest Day

All employees are entitled to a rest day at least one day or 24 consecutive hours

in a week. Rest days are to be determined by the management as the operations of the

business may dictate. For part timers, rest days are subject to school matters. In cases

like this, school registration card should be presented to the manager.

Food

There is a “Strictly No Leftover and No Take-out Policy” implemented in the

restaurant. Left overs are trashed out after operating hours. In cases that the volume of
left overs are large, the management decide whether it is subject for disposal or if they

will sell it to the employees at a certain price.

Discounts

Employees are entitled to a 20% discount at a transaction. This is extended only

to their immediate family.

Punctuality and Tardiness

Tardiness refers to late arrival past the designated starting time in a work day. It

signifies that the employee is unprepared to begin his work. Thus, all employees are

required to come to work on time and to clock his time of arrival at the biometric time

attendance machine. Habitual tardiness during a payroll period may be subject to

disciplinary action which is discussed as follows :

 1st offense – verbal warning

 2nd offense - Memorandum

 3rd offense – Sanction ( 5-7 days suspension)

 4th offense – Sanction (15-30 days suspension)

 5th offense - Dismissal

Absences and Leaves

Absence refers to the inability or failure of an employee to report for work. To

minimize disruption at work and unnecessary reassignment of tasks, all absences must

be covered by a request for leave.

An employee is required to file an application for vacation leave in advance, at

least one week before the intended date of leave, subject to the approval of the

immediate superior.
 In case of sickness or for emergency reasons, the employee is required to

directly notify the immediate superior by phone call or at least two hours before the

employee’s work shift schedule or as soon as possible.

For sick leave, the application must be filed immediately upon returning for work

along with the medical certificate in case of sickness is for two or more days. All

absences not covered by a duly approved application for leave shall be considered

unexcused, non-compensable and subject for disciplinary action.

An employee who is absent a day before a regular holiday, without an approved

application for leave or a scheduled rest day, shall not be entitled to holiday pay. In

addition, the employee may be subject to disciplinary action for unauthorized absences.

Abusive absenteeism will be served the following disciplinary actions:

 1st offense – verbal warning

 2nd offense - Memorandum

 3rd offense – Sanction ( 5-7 days suspension)

 4th offense – Sanction (15-30 days suspension)

 5th offense - Dismissal

Payment of Salaries

All employees will receive their compensation at the agreed wage rate as

indicated in the employment contract and compliant with the labor standards set by law.

Employees will also receive legal and special holiday pay, night shift differential pay and

corresponding overtime pay for work rendered in excess of the regular eight hours of

work. Work rendered on this must be supported by an approved form signed by the

immediate superior.
 Salaries for regular employees are computed in a daily basis starting at Php

365.00 provincial rate. Over time is paid per hour at Php 15.00. Restaurant managers

have a taxi allowance of Php 300.00.

Salaries would be distributed and received by the employees every tenth

and twenty-fifth of each month unless other payment schemes are provided in the

employment contract. It will be distributed on a cash basis with proper endorsement of

pay slips.

Systems and Forms Design

The Management Paradigm

Paradigm refers to the theoretical frameworks within which all scientific thinking

and practices operate. Management Paradigm demonstrates how company processes

function. Management Paradigm involves creative idea regarding managing the entire

organizations.
INPUT PROCESS OUTPUT
• Raw materials • Preparing Meals • Quality foods
includes all • Scheduling of • Satisfied
ingredients. activitiesd as well customers
• Recipes as budgeting • Good sales
• Menu • Implementation of • Good word - of -
• Skilled Employees sanitation practices mouth
• Health and • Adverting activities
Sanitation
Guidelines

Figure 6

Management Paradigm of Bahay Kainan

Administrative Forms and Records

A business record is a document that may be hard copy or digital that records a

business dealing. Business records include meeting minutes, memoranda, employment

contracts, and accounting source documents.

These records must be retrievable at all times so that business deals can be

reviewed accurately and updated as required. Since business is dependent upon

confidence and trust, not only must the record be accurate and easily retrieved, the

processes surrounding its creation and retrieval must be perceived by customers and

the business community to consistently deliver a full and accurate record with no gaps

or additions.

The following are forms and records that will be used by Bahay Kainan :

 Application Form for Employment - usually includes

a form or collection of forms that an individual seeking employment, called

an applicant, must fill out as part of the process of informing an employer

of the applicant's availability and desire to be employed, and persuading

the employer to offer the applicant employment.

 Employment Contract - is a kind of contract used in labor

law to attribute rights and responsibilities between parties to a bargain.

This contract is an agreement between Bahay Kainan and its employees

that are hired. This contract includes specifically what the employee would

get as compensation in exchange of his service rendered for the

company.
  Employee Time Record – This is a system to which the

management traces the amount an employee has spent on each job by

recording their ins and outs.

 SSS R1- A Employment Form – this form reports the new

employees who already have an SSS number. For those who have none

yet, the employer can still use this form but will be submitted together with

E-1 and birth certificate.

 PAGIBIG (HDMF) Employees Data Form – this is the form

for the employees to use their Pagibig funds that are usually concerning

their savings , shelter provisions and loans.

 Phil Health Form RF1 – this form will show the accurate

records and premium contributions of the employees.

 Phil Health ER1 Employment Data Record – these forms

are submitted by Bahay Kainan to PhilHealth for the registration of their

employees to health insurance.

 ER 2 Report of Employee Members – this form provides

the list of the employees who are members and is covered of PhilHealth

insurance.

 Annual Leave Form – this is a form where the amount of

hours or days an employee is permitted to leave, and this time off is paid

by the company.

 Cash Advance Request Form – a form filled up by

employees who wants to cash advance their salary.

  BIR Form No. 1906 – this form is the company’s application

to BIR for receipts and invoices.

 Official Receipt – customers’ proof of purchase who paid

for the service rendered to them.

 Invoice – serves as a demand for payment and becomes a

document of title when paid in full. It is also called a bill of sale or contract

of sale.

 Petty Cash Vouchers – a record of expenditure from petty

cash fund.
 Chapter 4

MARKETING FEASIBILITY

In this chapter, the details on determining the market, the market demand and

supply, the general marketing practices, proposed marketing program, projected sales

and systems and forms design would be discussed to present the information gathered

by the proponents to determine the sustainability of the business to its target market.

Market Description

Market segmentation is the subdividing a market along some commonality,

similarity, and kinship. The members of a market segment share something in common.

Bahay Kainan uses three of the most common segmentation variables. First is the

demographic segmentation that allows to identify the market based on demographics or

personality qualities. It includes demographic variables such as age, gender, race,

marital status, income, education, and occupation. It helps the company to specify the

target market and it is easily to measure than other types of variables. Second is the

geographic segmentation that divides the market into specific geographic units, that

allows the company to choose a particular area to focus on which is Taytay, Rizal.

Lastly, the psychographic segmentation driven by the characteristics such as shared

interests, opinions, attitudes, and values of customers. This segmentation variables will

allow the company to analyze the attitudes of customers towards and understand their

needs and wants.

 The restaurant is placed in the area that is convenient and recognizable by

consumers. It aims to reach and satisfy customers’ needs and provide service that will

create good image to the public.

Choosing a business location is perhaps the most important decision owner

will make, it requires precise planning and research. Owners chose the location for the

reason that the area is accessible to attract large number of consumers and the

proponents think that the area is profitable since there is a large number of people living

in Taytay, Rizal. The chosen population for the demand is the household population of

Taytay, Rizal. It is composed of men,women and children all in one household. The

members of the households can be composed of families and friends/peers. The

selected market often like to go out in groups.

Demand

In economics, a demand is a desire for certain goods or service supported by the

capacity of the consumers to purchase it. It is also the aggregate quantity of a product

or service estimated to be bought at a particular price. A demand is computed to

determine at what certain level the service output will be produced for a certain good

and service.

Filipinos love to eat and they love to eat food in large or unlimited portions so the

buffet restaurant is really in demand. With this project, the proponents want to establish

a buffet restaurant that would satisfy the customers’ wants. Using the household

population of Taytay, Rizal, Bahay Kainan was able to identify how big the market for

the buffet restaurant is, by computing and projecting the demand. Taytay,Rizal is
composed of five barangays namely : Dolores (Pob.), Muzon, Sta.Ana, San Isidro and

San Juan.These barangays are selected as the target market of Bahay Kainan.

Table 3

Projected Demand of Bahay Kainan

Projected Years Average Growth Rate per Year (4.10%) Projected Demand
2016 80,494
2017 3,300 83,794
2018 3,436 87,230
2019 3,576 90,806
2020 3,723 94,529
2021 3,876 98,405

The table above shows the present demand followed by the projected demand

for the succeeding years. The proponents used the Arithmetic Method in computing and

projecting the demand. Using this method, the average growth per year (4.10%) is

multiplied with the latest household population (80,494). The result is then added to the

latest population of the given year (2016). The same process is applied in getting the

projected demand for the succeeding years. It is projected that there will be an increase

of 17,911 in the household population of Taytay,Rizal by the year 2021.

Supply

Supply is the amount of product available for purchase at any specified price. It is

a process of which the needs of the consumers are being provided by the proponents.

Market Supply for Bahay Kainan is found by determining how much the competitors

supply the target market.

 This section focuses on the competitors that offers the same or at least

resembles the goods and services that will be offered by Bahay Kainan. The supply

data for the year 2017 will be based on the total average number of product sales.

Table 4

Annual Number of Tables Served by Competitors

Competitors Average Tables Served / Day Monthly Annually

Max's 38 1140 13680
Classic Savory 33 990 11880
Giligan's 38 1140 13680
Total 39240

The table presented above show the number of tables the competitors serve

annually. These data is necessary for the projection of supply for Bahay Kainan.

Table 5

Projected Supply
Projected 2.5% Growth Rate / Projected
Years Year Supply
2016 39,240
2017 981 40,221
2018 1,006 41,227
2019 1,031 42,258
2020 1,056 43,314
2021 1,083 44,397

The table above shows the five-year projection of the competitors of Bahay Kainan. The

2.5% growth rate percentage is from the annual growth rate of these restaurants in the

industry. The growth rate (2.5%) is multiplied with the total of the annual number of

customers of the competitors from the previous year (2016). The same process is done
to project the supply for the succeeding years. It is projected that the competitors can

supply 5,157 of the demand by 2021.

Demand and Supply Analysis

The demand and supply estimated by the proponents will be used in analyzing the gap

between the demand and supply. With this, the proponents may identify the potential

market share for Bahay Kainan. To have a clear understanding for the gap analysis, the

demand and supply must be analyzed individually. This two gives a view on the future

profitability of Bahay Kainan.

Table 6

Demand and Supply Analysis

Year Demand Supply Gap Percentage Gap
2017 83,794 40,221 43,573 52%
2018 87,230 41,227 46,003 52.70%
2019 90,806 42,258 48,548 53%
2020 94,529 43,314 51,215 54%
2021 98,405 44,397 54,008 54.80%

The table shown above presents the procedure on how the demand and supply analysis

is done. To determine the gap, the supply is subtracted from the demand. Its difference

will be known as the gap. To get the percentage of the gap, the gap is divided by the

demand. The result of which is multiplied by 100%. It is the gap will increase 2.8% from

2016 to 2021.
General Marketing Practices

General marketing practices includes all necessary information needed in starting to

operate a business. This also includes the different process and procedures in

registering the business. It involves when and how much is needed to accomplish

requirements that are needed.

Legal Information

This includes all requirements a business should comply. Rules, regulations

and law imposed by the government. It is important for the business to comply with

these requirements to be able to consider as a legal entity. It will serve as a signal when

we will start, as proposal and business documents is approved by the agency.

The table shows the summary of procedures that is needed to complied in order

to register a business.
 Table 7

Summary of Registration Requirements

ITEM PROCEDURE TIME TO COST

COMPLETE
1 SEC (for ONE DAY Filling fees for
Partnership) application for
registration. Project
Name registration
cost exceeding to P
and payment
4 million but not
Treasurer’s over 20 million=
Affidavit Php 3000.00

Bank Certificate Legal research fee

1% of the filling fee
Preparation of but not less Php
Article of 10.00
Partnership

2 BIR ONE OR FEW Registration fee

DAYS Php 500.00
BIR application
form 1903 for Documentary
partnership and slamp Php 15.00
corporation
3 PHILHEALTH - ONE DAY NO CHARGE
manages and
administers
government health
care

4 PAGIBIG ONE DAY NO CHARGE

REGISTRATION
5 SSS ONE WEEK NO CHARGE
REGISTRATION
6 Mayor’s Business WITHIN 2 WEEKS Initial fee based on
Permit business
Homeowners Garbage fee
clearance
 Barangay License fee
clearance
P 25.00 for every
Php 1000 of
company’s capital

Proposed Marketing Program

Bahay Kainan uses different kinds of promotional and advertising strategies to be

able to catch the attention of the prospective customers. The strategies that will be used

is discussed below.

Product Strategy

Bahay Kainan offers a wide range of viands, dessert and beverages that would

surely satisfy the customers’ taste buds. Moreover, the customers can be assured that

all the food available in the restaurant is freshly cooked everyday and is made out of

fresh produce and ingredients.Bahay Kainan's product strategy is simply the

consistency in taste and quality of its dishes served in the buffet by combining the

freshest ingredients and the most stringent quality control.

Price Strategy

One thing that could easily attract customers to try a new restaurant is the price.

It is very essential in any business, a price too low can be perceived as that of low

quality while a price too high can be perceived as unaffordable by the customers. The

proponents quoted the price per head as Php 299.00 for adults, Php 150.00 for kids

above 4ft and kids below 4ft are free of charge as long as they are accompanied by a

full paying adult. It is not too expensive and not too cheap but just right. It is very
affordable and reasonable as well. Also the proponents decided to use a promotion that

if there's any birthday celebrants the buffet fee would be free of charge but

accompanied by a full paying adult.

Place Strategy

The proponents’ business would be located at Brgy. Dolores,Taytay, Rizal. The

proponents own the lot that would be used in the proposed business. It lies in the heart

of Taytay,Rizal. The location of the business made the proponents decide to position it

there because it is very accessible to the customers and the location itself is very full of

market potential.

Promotion Strategy

The Bahay Kainan’s promotional strategy falls into two main factors : Short term and

Long term advertising. Print ads are an example of short term advertisement. This is

composed of posters and signages as well as flyers, brochures and soft opening.

a. Posters & Signages

The proposed business will produce a big signage both side on its restaurant to

seek the attention of those people who travel along the way.

b. Flyers & Brochures

Directs the customers to the exact location of the proposed business, it’s menus

and store schedule.

 c. Soft Opening

The proponents use Soft opening as a promotion strategy because it is a great

tactic that can lead to an infinitely more successful grand opening because it

allows some time for the word to spread.

In terms of long term advertisements the examples are social media and local

advertisement.

a. Social Media

People are highly oriented towards the technology and the internet. They use it

for online gaming, and the use of social networking sites such as Facebook,

Twitter, Instagram,Youtube and a lot more. They also use it for research. The

proposed business will use social media to rapidly generate the awareness of

possible customers this will be done through the use of social networking sites

and blogging sites.

b. Local Ads

If there are tech savvy people, there are still people who somehow do not

practically know how to use the computer or do not fancy using social media but

love to read. So the proposed business will use local newspaper also indicating

the features and menus of the proposed business, the contact number, email

address and the exact location.

System and Forms Design

These are forms needed in the business to be able to record and keep track of

the changes and operation that takes place inside the store.

The following forms and records will be used by Bahay Kainan :

 Official Receipt – this is a formal written acknowledgement that something of

value has been received.

 Invoice – this is issued by the seller to the buyer that identifies the items sold.

 Petty Cash Vouchers – A record of expenditure from a petty cash fund for

which a receipt was not received. This is used to maintain financial control of

petty cash accounts, preventing abuse or mismanagement of the funds.

 Credit Card Slip – This is the receipt used as an alternative or replacement for

a standard receipt when the bill is paid via credit card.

 CHAPTER 5

SERVICE/ PRODUCT FEASIBILITY

Service Feasibility is an analysis and evaluation of the proposed project's service

offering. The main objective of this chapter is to prove that the idea for the service

offerings of the proposed project is viable and profitable. In this chapter, the processes

of the product and service, materials handling design, project layout, production

schedule,floor plan and other necessities such as the machinery and equipments,

utilities, raw materials requirements and the project's waste disposal management

would be elaborated and discussed aiming to relate to the readers that the project's

product and service are feasible.

The Service

Bahay Kainan is a Filipino buffet restaurant with a modern twist. It offers Filipino

dishes altered to the modern taste of the customers. The restaurant's theme is modern

contemporary, since the restaurant offers dishes with a modern taste the proponents

decided that the restaurant looks and feels the same way as the food is presented.

Bahay Kainan aims to provide quality service to its customers. As it is targeting

mostly families and peers, Bahay Kainan wants their customers to feel at home, enjoy

their food while enjoying good company and at the same time, satisfied with the service

offered by the restaurant. In line with this, the proponents would make it a point that all

their personnel are trained to meet all the expectations of the customers, because

customers are the top priority at all times.

 Eat- All- You -Can Buffet is the main service offered by Bahay Kainan. Aside from

this, they are also offering accommodations for events such as birthdays, anniversaries,

corporate events and others.

The Product

In today’s food industry, a lot of other restaurants are offering different kinds of

dishes to satisfy the ever-changing and no-ending needs and wants of their customers.

Restaurants nowadays, always find ways to attract customers using the following : food

taste, excellent service and artistic or unique servicescapes. Aside from this,

restaurants are also essential part of the life events of the customers. Most restaurants

offers event hosting in their premises.For instance, birthday parties, debut,wedding

receptions,and other events.

To satisfy all these needs in the market, Bahay Kainan offers a wide range of

dishes fit for the needs and wants of the customers. It will be serving 2 kinds of menu,

one for the Lunch time and the other one for the Dinner time. Each menu consists of a

5-course meal. All of which is included upon the payment of the buffet fee which is Php

299.00 . The menu will be shown in the tables below.

Table 8
 Menu of Bahay Kainan

Pasta/
Appetizers Soup Pork Chicken Beef Fish Noodles Desserts Drinks

Wanton
Sweet and Creamy Wrapped
Chicken Lady Crab and Kare - Chicken Sour Mushroom Fried
Fingers Corn Kare Curry Caldereta Tilapia Pesto Suman Iced Tea

Pork Chicken
Lumpiang Clam Adobo sa Adobo sa Bistek Crispy
Shanghai Chowder Gata Gata Tagalog Fish Fillet Spaghetti Turon Coffee
Laksa Grilled Roasted Relyenong Leche
Calamares Soup Liempo Chicken Beef Tapa Bangus Carbonara Flan Tea
Fish & Shrimp/ Hot
Lumpiang Lechon Fried Tofu with Seafood Fruit Chocolat
Ubod Kawali Chicken Roast Beef Tausi Pasta Salad e
Pancit Buko Soft
Hamondo Afritada Canton Pandan drinks
Pancit Ice
Picadillo Bihon Cream

This table presents the menu of Bahay Kainan. It is composed of

Appetizers,Soup,Pork,Chicken,Beef and Fish dishes, Pasta or Noodles, Desserts and

Beverages. There are two meal shifts, lunch and dinner. Each shift has a different set of

foods served, chosen from the menu above.

Service Process

To be able to satisfy the customer, service excellency must be performed. In line

with that, Bahay Kainan should have a very organized service process to be able to

attain this goal. The service process is executed as follows :

Arrival of Guests

The service starts upon the arrival of the guests. There are guests who will come

with large group of people, others with small companies and some with vehicles or

motorcycles. These only goes to show that the guests are different to one another, the

main objective of Bahay Kainan is to satisfy all their needs and wants, because good

service means repeating transactions.

Assistance in the Parking Area

For guests with cars or motor vehicles, Bahay Kainan's security guard will assist

them in the parking lot. The security guard will guide them to where they could park their

vehicles and make sure to look after the guests' vehicles. After this, the guests are

guided to the reception area.

Ushering to the Reception

Guests without vehicles are ushered straight to the reception area where the

cashier sits in front of the restaurant lobby.

Payment

At reception, the guests are welcomed by the restaurant cashier. Their numbers

are counted for the head count and are asked to pay for the buffet fee that is, Php

299.00 per head for adults and Php 150.00 for children ages 7-12. Children below the
age of 7 and is below 4ft is free of charge. The modes of payment can either be through

cash payment or credit card payment.

Ushering to the Dining Area

After the payment at the cashier, guests are ushered by one of the dining

attendants to their table. After which, they are free to wander around the dining area

and feast at the buffet table. Lunch is served from 10am to 2pm and Dinner is served

from 4pm - 9pm.

Arrival of
Guests

Assistance in
the Parking
Area

Ushering to
the Reception
Area

Payment

Ushering to
the Dining
Area

Figure 7

Service Process of Bahay Kainan

 Figure 7 shows the Service Process of Bahay Kainan. This helps the proponents

to manage the service of the restaurant and make sure that the customers are satisfied

with their service.

Handling Customers

In service, the execution will never be uniform because customers are different

from one another, they vary in the intensity of their needs and wants. The only thing

each customer has in common is they want to be satisfied or delighted to what the

product and service brings them.

The aim of the employees of Bahay Kainan should be attending and satisfying

needs of the customers at all times. Occasionally, there will be requests from guests or

favors. This would range from the smallest of request like asking for a glass or an extra

plate or clearing the table to other favors like taking a photo,the employees should

attend to these needs and let the customers feel that accommodated properly.

On the other hand, there will always be disgruntled customers. For customer

complaints in the dining area, staffs should not take this offensively. As much as

possible, they should keep their composure and face the customers with a calm and

happy facial expression and tone of the voice. Petty complaints are expected to be deal

with the staff it is addressed to, before it is addressed to the restaurant manager.There

are some complaints that the staffs cannot handle are addressed to the restaurant

manager.

In the end, the employees shall still strive to make sure that the customers leave

delighted with the product and service that they got.

Product Process

Bahay Kainan's product is focused on the contents of the menu. The proponents

should make sure that the preparation of the food is organized and clean at all times.

The product process of Bahay Kainan is executed as follows :

Purchasing of Raw Materials

The raw materials for the menu is purchased from the supplier. The inventory of

the raw materials varies on the perishability of each ingredient. Dry ingredients can last

till its expiration dates but the perishables like meat and vegetables only has time before

it perishes. Since Bahay Kainan wants to serve food made with the freshest ingredients,

the inventory of the raw materials is observed properly. For the meat and fish,

purchasing for the inventory would be twice a week. Vegetables shall be purchased

fresh everyday and all the other dry ingredients are bought thrice a month depending on

its shelf life.

Kitchen and Food Preparation

Since there are already availabe raw materials, the preparation of the food can

now commence. But before that, the chef/ head cook together with kitchen assistants

should make sure that all the equipments that will be used in cooking is clean.

Afterwards, the food is prepared and cooked.

Food Service

When the food to be served is cooked, they are transferred to clean chaffing

dishes and are served at the buffet table. The buffeters are the ones responsible for

this, their role is to refill the chaffing dishes and everything that needs to be refilled in

the buffet table.

 Kitchen and
Purchase of
Food Food Service
Raw Materials
Preparation
 Figure 8

Product Process of Bahay Kainan

Materials Handling Design

Materials Handling Design refers to the movement, protection, storage and control of

materials that would be used throughout the production of the goods that would be

served. Production, proper storage,distribution,consumption and disposal of these

goods are properly observed.

Bahay Kainan ensures its customers that the raw material used in the production of

its products are safe and fresh. The storage for this raw materials are provided, there is

a storage for the dry goods and the storage for the wet goods/ frozen goods are

separated as well. To ensure freshness of the raw materials, the goods are bought

thrice a month.

In terms of the production, the menu is freshly cooked and prepared everyday. Left

overs would be picked up by a third party picked by the proponents to ensure that there

are no food wasted.

Technological Assistance

Bahay Kainan needs the aid of technology to be able to perform quality services to its

customers. Technology makes communication,transportation and keeping track of the

internal environment. Bahay Kainan will make it a point to be updated with the latest
technology to be efficient in their services and to be able to be competitive against the

other companies.

The use of computer would be a huge help in Bahay Kainan, since its dealing with

restaurant services, keeping track of the tables in the dining area, sales, booking and

others would be best monitored using a computer. It is more efficient than doing it

manually.

In preparing meals, state of the art kitchen equipments will be used to be able to

prepare,cooked and deliver high quality food to customers.

Lastly, in terms of the internal aspects. Bahay Kainan will be using the biometric

system in tracking the working hours of its personnel.

Project Layout

The project location is accessible for the target customers. It is situated near the

highway and is most accessible for customers with motorcycle vehicles and

automobiles. The proponents own the lot that will be used for the project. It is a 300 –

square meter land area, 190 – square meter floor area that will be used for the building

of the restaurant.

The building can be easily located by the target customers. It is in Tower Hills

Subdivision in Taytay, Rizal and is just near the Tikling rotunda. The restaurant building

is a one-storey building with a parking space in front of the restaurant.

Since the proponents own the land area, they have the freedom to do whatever

they like with the lot. Originally, there is a residential house built on the lot. This would
be converted into Bahay Kainan. There would be building improvements done to be

able to convert the house into a restaurant.

The restaurant consists of the dining area, the reception/cashier area, the

administrative office, the employees' locker area, the kitchen, the dirty kitchen, storage

area for dry goods, wet and frozen goods and utilities used to maintain the facility, two

comfort rooms, the buffet area and the parking area.

It has sufficient electrical supply and power supply for the kitchem equipments

and for running the whole restaurant, water supply enough to sustain the restaurant and

proper ventilation.

Floor Plan

The design of the floor plan is made in accordance to the requirements on the

purpose of how the business flow is made efficient for the employees of Bahay Kainan

and execute service properly. The guests’ comfort must be put in first priority at all

times.

This business proposal is accessible to both the residential and commercial area.

The proposed business will be established at the vicinity where the numbers of

customers are high. The lot is 300 square meters in total and the floor area that will be

used is 190 square meter. This includes, the reception/cashier area, dining area, buffet

area, kitchen , dirty kitchen , storage area, restrooms and the office. The reception/

cashier area is located near the main entrance, this is where the payment transactions

take place. The dining area has 15 tables with a sitting capacity of 90 persons. The

buffet area, where all the food in the menu is laid down for the customers.The kitchen
area is divided into two; the dirty kitchen, where all the food preparations are done and

the main kitchen, where the foods are cooked and assembled. The storage area are

separated into two : the first storage area is located near the main kitchen, these are the

reach-in cooler,walk-in cooler and the freezer. The second storage is located near the

dirty kitchen, this is where all the dry ingredients are stored. There are two restrooms,

one for the ladies and one for the gents. Each restroom has three cubicles. Lastly,the

office which will be used by the manager for administrative purposes.

Figure 9
 Proposed Floor Plan for Bahay Kainan

Machinery and Equipment Requirements

Bahay Kainan will need various equipments to be able to execute its service. The

tables below will show the equipments needed, the quantity needed , its unit cost and

the total cost for each item

Table 9

Summary of Equipment Requirements

Equipment
Requirements
Amount
Kitchen 557,006
Dining 53,925
Buffet 6,724
Beverage 20,410
Utilities 33,700
Office 543,000
Total 1,214,765

Table 9 represents the Summary of Equipment Requirements needed for Bahay

Kainan. The equipments summed to a total of Php 1,214,765.00 inclusive of all the

Kitchen, Dining, Buffet, Beverage Barm Utilities and Office Equipments needed for the

operation of the restaurant.

Utilities

Utilities are the set of services provided for the consumption of the public. In

restaurants, the most abundant utility to be used is water. Other utilities needed in the

proposed project are the following :

 Water

 Trash Service

 Telecommunication

 Electricity

 Gas

Raw Materials Requirements

To be able to produce a scrumptious menu, Bahay Kainan needs raw materials or

also known as ingredients and fresh produce that will be used in the kitchen

preparations. The business will need fresh fish,pork,beef, vegetables and various

spices. Supplies for the dining area like, plates, spoons,forks,knives and drinking

glasses are also needed in the business. Each raw materials is essential for the

business' operation.
 Table 10

Summary of Raw Material Requirements

Raw Materials Requirements

Amount
Vegetables 7,025
Meat 54,900
Seafoods 16,600
Broth Stocks 450
Cooking Ingredients 13,850
Fruits 2,000
Sauces 2,500
Desserts 3,550
Beverages 4,100
Total 104,975

Table 10 represents the Summary of the Raw Material Requirements. This is the weekly

inventory for the restaurant that summed a total of Php 104,975.00 per week. This

includes inventory for the vegetables,meat,seafoods,broth stocks, cooking ingredients

fruits,sauces,desserts and beverages. These raw materials will be ordered or bought

from reliable suppliers carefully chosen by the owners of the restaurant.

Waste Disposal Method

 Bahay Kainan is very much aware of the environmental issues that it will face and is

very much concerned in the community. Though satisfying customers is the number one

goal of the business, cleanliness is also a priority.

Bahay Kainan will provide trash bins in the kitchen and dirty kitchen areas. These

areas are the main focus of sanitation because this is where they prepare food. Trash

bins will also be alloted at all the cubicles for both male and female restrooms. Trash

bins will also be alloted at designated areas in the dining area, the parking area, the

waiting are in which some customers smoke and the office. These trashes will be

collected at the end of each meal shift and will be disposed at the waste disposal area

behind the building. This will be collected every morning by the garbage collector.

For the water wastes, the proponents decided to acquire a garbage disposal unit

that is installed in the kitchen sink, between the sink's drain and the trap. This will shred

all the food waste into tiny pieces enough to pass through the plumbing.

CHAPTER 6

FINANCIAL ASPECTS
Project Cost

The proposed project will require an investment of Php 6,615,000.00, the

breakdown of which is shown in Table 11.

Table 11

Project Cost
(000)
Land 1,800
Land Improvements 500
Buildings 1,500
Interior Improvements 500
Equipments 672
Furniture and Fixtures 315
Office Equipments 1,043
Office Furniture and Fixtures 15
Raw Materials 105
Working Capital 165
Total Project Cost 6,615

Sources of Financing

The investment needed for the project will be financed from the stockholders’

contribution.

Sources Of Financing
(000)

Stock Contribution 6,615

The stockholders’ contribution will be distributed to the owners where they will

give monetary contribution. On the other hand, one of the proponents’ contribution will

be the land that will be used in the operation of the proposed business.
Financial Analysis

o Profitability

o Breakeven Analysis

o Payback Period

Notes to and Assumptions of the Financial Projections

1. Coverage

The financial projections for the proposed project cover a period of 5 years

from 2016.

2. Projected Income Statement

a. Sales Volume

The proposed project expects to produce and sell all products daily. The

projected sale for 2017 is Php 39,420,000. The projected sales volume

are shown in Table

Table

Projected Sales Volume

2% Sales Sales
Year Seats increas Price Daily Annually
 e
2017 360 299 108,000 39,420,000
2018 360 6 305 109,800 40,077,000
2019 360 6 311 111,960 40,865,400
2020 360 6 317 114,120 41,653,800
2021 360 6 323 116,280 42,442,200

The selling price of Php 299.00 is expected to increase by 2% annually.

The projected sales is expected to increase by Php 3,022,200 from 2017

to 2021.

b. Production Costs

i. Raw Materials

The proposed project will use vegetables, meat, seafoods,

broth stocks, cooking ingredients, fruits, sauces, desserts and

beverages. As its main raw materials. As shown in the raw

materials breakdown the estimated delivered cost of raw materials

per week is Php 104,975.00. The cost raw materials in 2017 is Php

21,900,000 and is increased by 2% a year.

Raw Material Purchases

(000)
Year 2% RM Purchases
2017 21,900
2018 438 22,338
 2019 447 22,785
2020 456 23,241
2021 465 23,706

ii. Direct Labor

Direct labor cost includes salaries and wages of personnel

performing production functions. It is estimated to be in Php

552,000.00 in 2017 and is projected to increase by 4.3% a year.

Direct Labor
Position 2017 2018 2019 2020 2021
Chef/ Head Cook 192,000 200,256 208,872 217,848 227,220
Kitchen Assistants 360,000 375,480 391,620 408,456 426,024
Total 552,000 575,736 600,492 626,304 653,244

iii. Indirect Labor

Indirect labor cost includes salaries and wages of personnel

performing functions other than production. This is estimated to be

Php 93,600.00 in 2017 and is projected to increase by 4.3% a year.

Indirect Labor
Position 2017 2018 2019 2020 2021
Bussers 192,000 200,256 208,872 217,848 227,220
Buffeters 192,000 200,256 208,872 217,848 227,220
Dishwashers 264,000 275,352 287,196 299,544 312,420
Security Guards 288,000 300,384 313,296 326,772 340,824
Total 936,000 976,248 1,018,236 1,062,012 1,107,684

iv. Depreciation

Equipments and other property items are depreciated over

their estimated economic lives using the straight line method.

 Depreciation expense is estimated and rounded off a total of

Php 265,000.00

Table – details the calculation of the depreciation.

Estimated Economic Acquisition

Asset Life Cost Annual Depreciation
Land Improvements 15 500,000 33,333
Interior Improvements 15 500,000 33,333
Total Annual Depreciation 66,666

Equipments
Estimated
Economic Acquisition Annual
Life Cost Depreciation
Kitchen 5 557,006 111401.2
Dining 5 53,925 10785
Buffet 5 6,724 1344.8
Beverage 5 20,410 4082
Utilities 5 33,700 6740
Total 671,765 134353

Furniture and Fixtures

Estimated Economic Life Acquisition Cost Annual Depreciation
6 - seater Tables and Chairs 5 237,000 47400
Buffet Table 5 52,480 10496
High Chairs 5 24,750 4950
Total 62846

v. Employee Benefits

Employees benefits include premium payments for social

security, HMOs, HDMF and bonuses; vacation and sick leaves. The
 cost of employee benefits is estimated to be 20% of salaries and

wages of production personnel.

Employee Benefits
2017 2018 2019 2020 2021
Direct Labor 110,400 115,147 120,098 125,261 130,649
Indirect Labor 187,200 195,250 203,647 212,402 221,537
Total 297,600 310,397 323,746 337,663 352,186

vi. Insurance

Insurance expense consists of premium payments for fire

insurance, coverage of buildings , furniture and fixtures. The

premium rate for fire insurance is estimated at 2% of insurable

value.

vii. Light and Power

It is assumed that the restaurant will have a connected load

of 5760 KW a month. There is an assumed price increase of 0.70%

per kilowatt hour every year.

viii. Water Consumption

Expenses incurred for the water consumption is estimated to

be 0.38% of the total annual sales.

c. Sales and Administrative Expenses

i. Percentage Tax

Percentage tax is calculated at 12% of annual gross sales.

ii. Salaries and Wages

 Salaries and wages of personnel involved in sales and

administration are estimated at in to increase by 4.3% a year.

Administrative Expense
Position 2016 2017 2018 2019 2020
Restaurant Manager 240,000 250,320 261,084 272,316 284,028
Restaurant Cashier 252,000 262,836 274,140 285,924 298,224
Total 492,000 513,156 535,224 558,240 582,252

iii. Taxes and Licenses

The Real Tax for the proposed project is estimated at Php

105,000.00

iv. Sales Promotions and Advertising

Expenses incurred in connection with the production of

posters & signages ; flyers & brochures; local ads in the

newspaper; and boosting ads in the social media and other

promotional efforts will be estimated to be 2% of the sales.

v. Depreciation

Depreciation expenses allocated for the sales and administration

are estimated to Php 108,000.

Office Equipment
Estimated Economic Acquisition Annual
Life Cost Depreciation
POS (Point of Sale System) 5 500,000 100000
CCTV with Monitor 5 2,300 460
Computer Set 5 15,000 3000
Printer 5 5,000 1000
Total 104460

Office Furniture and Fixture

Estimated Economic Life Acquisition Cost Annual Depreciation
Office Table and Chair 5 15,000 3000
Total 3000

vi. Employee Benefits

Employee benefits include premium payments for social

security, HMOs, HDMF and employees’ compensation, bonuses;

vacation and sick leaves. The cost of employee benefits is

estimated to be 20% of salaries and wages of sales and

administrative personnel.

Employee Benefits
2017 2018 2019 2020 2021
Administrative 98400 102631.2 107044.8 111648 116450.4

vii. Phone and Internet

Expenses incurred for phone and internet usage are

estimated to be 0.38% of total annual sales.

d. Provision for Income Tax

Income tax are computed at 30% on taxable income.

3. Projected Cash Flow Statements and Balance Sheet

a. Raw Materials

Purchase of raw materials from local suppliers is assumed to be on

cash basis.

b. Raw Materials Inventory

Raw materials inventory is assumed to be the equivalent of one

week’s production throughout the projection period.

c. Capital Stock

Capital stock amounting to 6,615,000 and is assumed to be the

contribution of the stockholders to the proposed project.

CHAPTER 7

Socio-Economic Feasibility
 Corporate Social Responsibility is a company's sense of responsibility towards its

community and environment in which it operates. Through this, companies express their

citizenship. It is essential that the proponents build good and harmonious relationship

with the employees, the government, the customers, the community and the

environment.

Employees

All employees must be treated fair inside the working area. They may be just

working for the business, but it is their right to be treated equally and properly. This way,

it would also increase their productivity and willingness to work. The management will

make sure that they will be responsible in giving the employees proper considerations

regarding salaries and wages, work incentives, hours of work and other work-related

benefits. The management will also make sure that the working area will be a healthy

working environment for all. The management will require the employees to file for SSS,

Phil Health and the HDMF (Pag-Ibig) to acquire benefits.

Government
 The relationship between the business and the government is very important. Aside

from this, to be able to legally operate a certain business, one must comply to a lot of

legal requirements. Bahay Kainan will make sure to abide by these laws to be able to

work alongside with the government. Some of these laws include the :

 Tax Reform Act of 1997 ( RA No. 8424) - which gives BIR the authority

to assess and collect national internal revenue taxes.

 Labor Code of the Philippines ( Presidential Decree No. 442) - which is

the law that governs employment practices and labor relations in the Philippines.

 Civil Law of the Philippines ( RA No. 386) - which includes the laws on

obligations and contracts.

 Consumer Act of the Philippines ( RA No. 7394) - which is the law that

protects the interest of the consumers in the Philippines, promote their general

welfare, and establish standards of conduct for business and industry.

Community

Bahay Kainan will make sure that they will take full responsibility to the environment by

assuring that all the process involved in fulfilling their product and service offering will

be environment friendly. The business will make it a point that they will implement CSR.

The observation of proper waste disposal will be done in order to maintain sanitation

and orderliness. Bahay Kainan, in its power will make sure that pollution will be

minimized and that they will allocate budget to sustain its waste management. One way

to also help the community in return is providing employment. Bahay Kainan will be

open for applications of employment from people living in the community.

Customers

Filipinos are known to be food lovers in nature. With this, the food industry has boomed

and almost anything edible are available in the market for purchase. However, not all of

these foods are healthy and most customers are not after for the health benefits but for

the taste and the affordability of the food. This does not mean, that offering healthy

products will be set aside. Bahay Kainan will make sure that their customers will get the

same amount of healthy, affordable and great tasting food.

Environment

Bahay Kainan is aware of various environmental issues so that the proponents made

sure that they are focused on the business' waste management. This business is truly

committed to significantly reduce and divert the waste that it will generate.

Chapter 8
 PROJECT IMPLEMENTATION AND TIMETABLE

A great idea can only be just an idea if it is not implemented. Bahay Kainan can

not be launched over night, it will undergo a chain of activities that would lead to its

introduction in the market. This chapter presents all the details regarding to the activities

that Bahay Kainan will undergo before it starts it operation. All the activities starting from

the project conceptualization, preparation of the feasibility study, negotiation of finances,

registration of documents, construction and furnishing of building, purchasing of raw

materials, installation of machinery and equipments, hiring, selecting and training

employees, product prototype and test marketing, promotion and advertising that would

lastly lead to the start of operations.

GANTT CHART

According to business dictionary, Gantt chart is a bar-chart that shows both the

scheduled and completed work over a period. A time-scale is given on the chart's

horizontal axis and each activity is shown as a separate horizontal axis and each

activity is shown as a separate horizontal rectangle whose length is proportional to the

time required or taken for the activity's completion. In project planning, these charts

show start and finish dates, critical and non-critical activities, slack time and

predecessor-successor relationships.

Figure shows the tasks schedule of Bahay Kainan before starting its operations.
 Activities Jun Jul Aug Sept Oct Nov Dec
Project Conceptualization
Preparation of Feasibility
Negotiation of Finances
Registration of Documents
Construction of Building
Purchase of Raw Materials
Acquisition and Installation of Raw Materials and
Equipments
Selecting, Hiring and Training Employees
Product And Prototype Test Marketing
Promotion and Advertising
Start of Operation

Figure 9

Gantt Chart of Activities

Project Conceptualization
 Project Conceptualization involves gathering of necessary information to come

up with possible ideas to form a business concept. This is the brainstorming stage, the

proponents share and discuss their thoughts about what is the best project concept to

be proposed. This is where the proponents decide what needs to be done in the

proposed project, when, where and how it needs to be done, and who has to do it. All of

which needs to be communicated among the proponents before the feasibility study is

conducted. This part takes 2-3 weeks for the proponents.

Preparation of Feasibility Study

A feasibility study is conducted shortly after the proponents decide to agree upon

what business concept are they pursuing. This study is used to assess whether an idea

is viable or in short if it is feasible, if proven feasible, to find out if it is profitable. The

result of this study will determine whether it is best to pursue the business venture or

not. This will take four months to be completed.

Negotiation of Finances

The proponents will be the financers for the proposed project. All of the finances

would equally be divided among the proponents based on what is the agreed budget for

the business. This is usually known after the proposed business is proven feasible, the

proponents then compute for the total project cost and from then decide how they will

finance the project. It will take a month for the proponents to fix the budget and collect

funds.

Registration of Documents
 A business cannot operate without proper permits and licenses. All businesses

are required to be registered legally. The proponents must comply to these to be able to

operate. The registration of the business is done under the Department of Trade and

Industry (DTI), Securities and Exchange Commission (SEC), City Government,

Barangay, Home Owners Association and all the other offices involved and necessary

for the legality of the business operations. For the tax duties of the business, this will be

submitted to the Bureau of Internal Revenue (BIR). The completion of these

requirements will take a month.

Construction and Furnishing of Building

This refers to the project site development. This involves all the significant issues

on the land and building that could affect the design of the project, other technical

information, purchasing of raw materials and after the construction, furnishing the whole

restaurant. This will take two months.

Purchase of Raw Materials

Since the proposed project is a restaurant, purchasing raw materials is very

essential. At this point, the proponents seek for possible suppliers for the raw materials

and purchase them. With this, the proponents will not have a hard time in finding where

to buy their raw materials. This will take a month.

Acquisition and Installation of Machinery and Equipments

 Buying new equipments is an import decision a new business has to consider.

Because some equipmentsare expensive and it can affect the financial situation of the

business. To make a right purchase, there are a lot of factor to consider such as the

capital allowance or the budget of the business, the use of equipment (if it is in regular

basis), the repair cost and maintenance cost, and how long the it can last. After

assessing this, the proponents make the purchase and then installs it in the restaurant.

One month is enough time to decide in purchasing and installing the equipments.

Hiring,Selecting and Training Employees

The success of the organization will not be attained if the proponents will not hire

the best people to work with them. To be able to have the best team for the organization

the proponents must conduct a series of activities that would lead to finding the best

people for the jobs. At this point, the proponents identify what positions they need in the

organization and what qualities are they looking for. After identifying this qualities, the

proponents then select and hire. Afterwards, the training takes place. This will take a

month to hire and train employees.

Product Prototype and Test Marketing

Before introducing Bahay Kainan to the market, a series of prototype and test

marketing will be conducted for the proponents to know how the market will react

towards their product and service offering. This way, alterations in the product and

service can still be done just before the launch. This will take a month to accomplish.

Promotion and Advertising

 Before the grand launch, the proponents have to "get the word out". Necessary

promotional and advertising activities needs to be done to be able to make the target

market aware that Bahay Kainan exist. Promoting will take a month to accomplish.

Start Operations

Lastly, after all the plan is made, presented, and implemented. When all

preparations are completed the business can now start to operate.