PAMPANGA STATE AGRICULTURAL UNIVERSITY

Magalang,Pampanga

COLLEGE OF HOSPITALITY ENTREPRENEURSHIP AND FOOD SCIENCES

Department of Hospitality and Entrepreneurship Management

Business Plan in Grandma’s Native Delicacy Business

(state title)
Special Topics in THC10: Entrepreneurship in Tourism and Hospitality

Submitted by

MARK S. Nucup
BSHM 3- (A)

Submitted to

Prof Estrella C. Zabala

Subject Teacher

June 16, 2021

(Date submitted)
 Table of Contents

Executive Summary................................................Page # 1

Business/Industry Overview....................................Page # 2

Market Analysis and Competition............................Page # 3

Sales and Marketing Plan.......................................Page # 4

Ownership and Management Plan..........................Page # 5

Operating Plan.........................................................Page # 6

Financial Plan..........................................................Page # 7

Appendices and Exhibits.........................................Page # 8

 Executive Summary

The proposed business plan will introduced the few variety of famous native
delicacy of the Philippines. Its mission is to provide the best tasting native delicacies,
committing to keep quality and taste of our product. The vision is to bring the love for
Filipino traditional delicacies.

The Business named after the late grandma of Mr. Mark Nucup, the owner of the
proposed business, the business called (Grandma’s native delicacy). The business has
only one branch and it is also the main branch business located @ L-NUCUP STREET
Barangay Camias, Magalang, Pampanga. The management of the business consist of
the following; the owner of the business, manager, supervisor, logistic officer, chef,
waiter/waitress and delivery men. The ownership of the business is a sole
proprietorship; consist of one person managing the whole operation of the business.
The main products in the proposed business is puto pao, kutsinta, maja blanca, biko,
sapin-sapin, original kakanin, cassava cake, and ube halaya. The market of the
business will be the: Residents of Magalang and nearby Barangays; Passers-by,
specifically the travelers and walk-ins along the location; Workers; Students; and
Anybody of all ages who wishes to have a taste of good Filipino delicacies.

Investors define competition as any service or product that a customer can use to
fulfill the same need(s) as the company fulfills. This includes firms that offer similar
products, substitute products and other customers options such as performing the
service or building the product themselves. However, in order to get market share we
can introduce new products or service that will provide a broader range of products or
services for our clients or maybe we can enhance our sales channel through various
platforms on the internet.

One of the competitive advantages of the proposed business plan is that we

manage to provide outstanding cycle of business and standard operation through the
products and services offered.
 Business/ Industry Overview

Filipino native delicacies, known as kakanin, are popular snack foods that are
usually served as merienda or desserts. Kakanin are native delicacies made of
nmalagkit (glutinous rice), which comes in two varieties: the first-class variety that is
sweet, rounded and white and the regular variety that is longish and translucent. The
word kakanin is derived from kanin, Tagalog for rice. The three basic ingredients are
malagkit or glutinous rice, coconut milk or gata, and sugar.

Filipinos love of kakanin can be traced way back pre-colonial times when our
ancestors used suman as offering to gods and visitors. I remember when I was a child
and used to help my Inang, a native of Bulacan, grind soaked glutinous rice in a huge
grindstone (gilingang bato) to make galapong to be used in making sapin-sapin or
kalamay or bibingka. We used to spend hours in this process and usually need to take
turns with my cousins to finish grinding several kilos of malagkit to be used in making
sapind-sapin or kalamay or other kakanin depending on the occasion. My Inang wanted
to do it the traditional way even if milling services are available, just as her mother and
grandmother used to do it.

Kakanin are usually present on special occasions such as weddings, birthdays,

anniversaries, and fiesta. No celebration is complete without these kakanin being
served in the table. They are especially popular during the Holiday Season and since
Christmas and New Year is just around the bend, let’s take a delicious look at 10 of the
Most Delectable Filipino Native Delicacies.

The existing competitions of the business are the firms that offer the same
products and services in the industry. The business will provide different strategy in
order to stand-out from the existing competitors and one of the tactics we can use to
improve the service offer is to improve the community relations to gain more loyal
customers.
 Market Analysis and Competition

The target market of the business will be the: Residents of Magalang and nearby
Barangays; Passers-by, specifically the travelers and walk-ins along the location;
Workers; Students; and Anybody of all ages who wishes to have a taste of good Filipino
delicacies. The products will be cooked by the hired personnel and will be stuffed on
customized boxes and paper bags instead of the usual plastic or Styrofoam packaging.

COMPETITORS STRENGTH and WEAKNESSES

STRENGTH WEAKNESSES
Established their own names in the Limited number of product to sell.
market.
Fewer expenses. Cannot be easily seen.

SWOT ANALYSIS

STRENGTH WEAKNESSES OPPORTUNITY THREATS

-Offering products on -Being a first timer in -Desire of customers -Competitors have
a more comfortable the business industry. for new innovations already established a
and well ventilated about native foods. name on the market.
shop. -Possibility to have
-Selling products that left - overs in the -The increase in -Changing taste and
are more innovative business’s operation demand can be a preferences of the
and presentable. can cause loss in° reason for expansion. customers.
-Stuffing the products
on a more -Accessibility of the
environment - location, the physical
friendly packaging. feature of the
-Longer time of business and the
service to render products.
daily.
-The location can be
easily seen and is
accessible for buyers.
 Located In / Actual Location

We choose our house location because it is already known by our

customers as a food production business we use to deliver and supply our product in
different places and establishments. We also entertain customers in different platform
that we use like social media and those walk in customers.

We can consider this place as a good location because our barangay

really patronizing our product and by the word of mouth our product will through
different places. And , it become popular to others.
 Sales and Marketing Plan

 PRODUCT or SERVICE OFFERING

Grandma’s native delicacy will be selling native delicacies which consists of:
 Puto pao
 Kutsinta
 Maja blanca
 Biko
 Sapin-sapin
 Original kakanin
 Cassava cake
 Ube halaya

PRODUCTS / Sample Products of Grandma's Native Delicacy

PUTO PAO KUTSINTA MAJA BLANCA

Kakanin Sapin Sapin Ube halaya

Grandma’s delicacies also cater different type of service and distribution; in the process
of dine in, take-out service or delivery distribution process.
  PRICING STRATEGY

Product name Quality Price Per Quantity Per Total Price Per
Piece Bulk Bulk
Puto Pao 1 5 50 250
Kutsinta 1 7 50 350
Maja Blanca 1 10 25 250
Sapin - sapin 1 7 25 175
Original kakanin 1 7 25 175
Ube Halaya 1 8 30 240

 SALES and DISTRIBUTION

The products will be cooked by the hired personnel and will be stuffed on customized
boxes and paper bags instead of the usual plastic or Styrofoam packaging.

 ADVERTISING and PROMOTION

Grandma’s Native delicacy business will be undergoing promotional strategies to

publicize the business. The proponents will be using: flyers, posters, facebook Page,
tasting Activity and we can also connect with our customer through email or SMS.
 Ownership and Management plan

The Grandma’s native delicacy is a sole proprietorship business.

The grandma’s native delicacy is owned by one individual which is Mr. Nucup who is the
future owner of the business. It consists of different department and management to run
the business and each department has different task to handle in order to perform and
achieve the goal of the business.

In management team, the role of a Business Manager is to supervise and lead a

company's operations and employees. They perform a range of tasks to ensure
company productivity and efficiency including implementing business strategies,
evaluating company performances, and supervising employees. A manager should also
possess logical thinking to resolve the problem quickly and efficient.

The external resource needed in grandma’s native delicacy is the accounting

management. The accounting departments manage the financial stability of the
business and provide an annual report for the business

For the human resource, the types of employee we are looking for this business
are chef, cashier and delivery man. Each employee has different salary depending on
their position and overtime work. The estimated salary for chef is Php 450 per day, for
cashier Php 400 per day and lastly for delivery man it should be Php 500 per day. With
their additional overtime pay of 50 pesos per hour.
 Operating Plan

Grandma’s Native Delicacy is a small operating business firm consisting of one

operator. Since it is a small firm business operation, some operating essential is already
included in the business overview. To state its production process, facilities and staffing:

Production:
Our delicacy business is as distributor and supplier of delicacy in some food
industry business. For manufacturing process it takes 1 to 2 hrs in creating a simple
flavor of delicacy. A single day of production in grandma’s native delicacy can produce 3
to 4 flavors depending on its availability of ingredients or on the requested flavor of
supplying business firm. Dealing with potential problem such as rush orders, grandma’s
delicacy will manage the measurement of every ingredient and preparation of each
product. It will also try to meet the time requirement in preparing each orders at the
given time.
Facilities:
The physical location of the business consist of different department such as the
kitchen department (Hot and Cold kitchen) , front office or cashier, and accounting
department for inventory process. Each facility consists of different task to operate the
business efficiently. Facilities are very important to manage the operation of the
business.
Staffing:
Staff in any business also called as a human resource. Every staff has main
duties in operating the business especially the key employee inside the business. each
staff are being analyze during their interview and training, each individual shoud
possess good character / pleasing personality and can handle pressure in the work
place. This business offers full time worker and contracted dealings among the
employee, each staff/ employee should follow the rules and regulation given when they
sign their contract.
 Financial Plan
The average investment needed for Grandma’s Native Delicacy is Php150, 000.00 we have
two investors so we need to have a share capital cost Php50, 000.00 in each for us to meet our
needed set of equipment and food products our calculation within a month we can generate our
profit in our Everyday income we will save the amount that would exceed in Php30, 000.00 for
us to have a savings we will get the money to paid the other profit, it would be divided to us and
that would serve as our salary in a month.

 Income Statement
The income statement shows your revenues, expenses, and profit for a particular period
—a snapshot of your business that shows whether or not your business is profitable.
Subtract expenses from your revenue to determine your profit or loss. While established
businesses normally produce an income statement each fiscal quarter or once each
fiscal year, for the purposes of the business plan, an income statement should be
generated monthly for the first year. If you have a product-based business, the revenue
section of the income statement will look different. Revenue will be called sales, and
you should account for any inventory.

Title: How to Write the Financial Section of a Business Plan

URL: https://www.thebalancesmb.com/writing-the-business-plan-section-8-2947026
 Blank Income Statement (Sample)

Title: Basic accounting for Income Statement

URL: https://basicaccountinghelp.com/income_statement_example.html
 Income statement (Sample)

Title: Basic accounting for Income Statement

URL: https://basicaccountinghelp.com/income_statement_example.html
  Cash Flow
The cash flow projection shows how cash is expected to flow in and out of your
business. It is an important tool for cash flow management because it indicates when
your expenditures are too high or if you might need a short-term investment to deal with
a cash flow surplus. As part of your business plan, the cash flow projection will show
how much capital investment your business idea needs.

Title: How to Write the Financial Section of a Business Plan

URL: https://www.thebalancesmb.com/writing-the-business-plan-section-8-2947026

Blank Cash Flow Statement (Sample)

Title: Cash Flow Template

URL: https://www.sampletemplates.com/business-templates/sample-cash-flow-
statement.html
 Cash Flow Statement (Sample)

Title: Cash Flow Statement template

URL: https://www.allbusinesstemplates.com/fr/template/9E92U/sme-cash-flow-excel-
template/
  Balance Sheet
The balance sheet reports your business's net worth at a particular point in time. It
summarizes all the financial data about your business in three categories:

Assets: Tangible objects of financial value that are owned by the company.

Liabilities: Debt owed to a creditor of the company.

Equity: The net difference when the total liabilities are subtracted from the total assets.

The relationship between these elements of financial data is expressed with the
equation: Assets = Liabilities + Equity

For your business plan, you should create a pro forma balance sheet that summarizes
the information in the income statement and cash flow projections. A business typically
prepares a balance sheet once a year.

Title: How to Write the Financial Section of a Business Plan

URL: https://www.thebalancesmb.com/writing-the-business-plan-section-8-2947026
 Blank Balance Sheet

Title: Balance Sheet form

URL: https://www.pinterest.ph/pin/324048135668501998/
 Balance Sheet (Sample)

Title: Sample Balance Sheet

URL: https://www.beginner-bookkeeping.com/sample-balance-sheet.html
  Break Even Analysis
Break Even Analysis in economics, business, and cost accounting refers to the point in
which total cost and total revenue are equal. A break-even point analysis is used to
determine the number of units or dollars of revenue needed to cover total costs (fixed
and variable costs).

To calculate your break-even point for sales dollars, use the following formula:

Break-even Point for Sales Dollars = Fixed Costs / [(Sales – Variable Costs) /
Sales]

Title: Break-even Analysis

URL:https://corporatefinanceinstitute.com/resources/knowledge/modeling/break-even-
analysis/#:~:text=A%20break%20even%20point%20analysis,popular%20methods%20is
%20classification%20according).

Break Even Point (Sample)

Title: Break Even Formula

URL: https://www.wallstreetmojo.com/break-even-point-in-accounting/

Graph Break Even analysis (Sample)

Title: Generating break even analysis sample

URL: https://www.dummies.com/business/operations-management/how-to-generate-a-
break-even-analysis/
 Blank Break Even Analysis (Sample)
Sale 0 0%
Variable Expense:
Material 0 0%
Labor 0 0%
Total Variable exp 0 0%
Gross profit: 0 0%
Overhead expense:
Salaries 0
Utilities 0
Others 0
Total overhead exp 0 B.E= 0 = 0
Profit 0

Title: What is break even analysis?

URL: https://resources.annealbc.com/blog/break-even-what-is-it-and-why-it-matters

Break Even Analysis (Sample)

Title: What is break even analysis?

URL: https://resources.annealbc.com/blog/break-even-what-is-it-and-why-it-matters

Appendices and Exhibits

 Credit histories of the business owner
 Detailed market research and analysis of competitors
 Résumés of the owners and key employees