Feasibility Study Final
Feasibility Study Final
Feasibility Study Final
Food On Wheels
A Feasibility Study
Presented by:
DASALLA, ARLENE V.
EBOJO. CHARLES I.
SESUCA, NOVELYN R.
BSBA-HRDM 4F
Presented to:
SUBJECT INSTRUCTOR
Chapter 1
SWOT ANALYSIS
The strengths, weaknesses, opportunities and threats of the Food on wheels
were evaluated and presented below:
Table 1. INTERNAL ORGANIZATION: STRENGHTS AND WEAKNESSES OF THE
FOOD ON WHEELS
Strengths Weaknesses
Experienced Staff. Skilled drivers and Limited Capital. With limited capital
flexible cook. Since it’s a mobile food it limits your ability to make and
business, therefore, the cook must be quickly enact decisions. If owner
flexible to prepare food in a small and wants to diversify its products, for
moveable kitchen without compromising the instance, it may have to wait to
quality and taste of the food. The truck driver generate more cash flow or sell off
must be familiar with the route and know assets. This either means the loss of
various public business location points that key assets or delayed actions.
could generate more sales.
Limited Variety of Products. The
Cheap prices. The prices of the food menu menu is quite short and may lack
are very high in luxury hotels and certain special dishes that are
restaurants. Compare to them, food trucks popular. Having a wide range of
offer the meal at a very low price to ordinary options and choices is always a very
workers earning minimum wages. When you attractive attribute for the customers.
offer them a quality service at a low price,
then you can easily attract a great market
share.
Fresh and Innovative Food. The food truck
doesn’t have much space to store food.
Therefore, they cook and serve food at the
same time without leaving room for storing
Location Flexibility. Food trucks have the
flexibility to move around and take the
business in crowded places.
Saves Renting Cost. A food truck saves you
from the trouble of high renting costs. All you
need is a permit, once you have, and then
you start it from anywhere you like.
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Table 2. EXTERNAL ENVIRONMENT: OPPORTUNITIES AND THREATS
OF THE FOOD ON WHEELS
Opportunities Threats
Lockdown. The lockdown because of Coronavirus Easy to duplicate. A
(COVID-19) presents a new opportunity for the food competitor can come into
truckers. Since people are stuck at home, and all the the market, steal your
hotels and restaurants are closed. The food trucks are recipe, and offer the same
like a delivery service, they can provide food to people product and taste but under
in their doorsteps. a different brand name.
Emerging Business. The food truck business falls in Rules and regulation
the category of recently emerging businesses. The from place to place. The
market is competitive, but it hasn’t become food truck business falls in
overcrowded with the competition. There’s enough the category of recently
share in the market for the newcomers to enjoy. If they emerging businesses. The
provide quality service and perform well, then they market is competitive, but it
can attract a good chunk of market share. hasn’t become
overcrowded with the
New Product and Taste. It all comes down to the
competition. There’s
quality of food and its taste. If you have the ability and
enough share in the market
talent to experiment with new ideas by adding new
for the newcomers to enjoy.
flavors and tastes to your food. If customers like it,
If they provide quality
then you win the market share as long as you keep on
service and perform well,
providing quality service.
then they can attract a good
chunk of market share.
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Chapter 2
MARKETING ASPECT
1. Product Description
Name of the Product
All of our products are plant based which are good to the health of customers.
We came up with the name by what plant base originates the product like the eggplant
fries, vegie burger which made up of mix vegetables, mint tea, green tea and macha
tea.
Properties of the Product
Vegie Burger and Eggplant Fries
-whole grain hamburger bun -salt
-eggplant -Coconut oil
-squash -tomato
-vegan mayonnaise -lettuce
-olive oil -bread crumbs
-butter -Garlic
-Egg -pepper
-onion -parmesan cheese
Milk Tea
-almond milk -tapioca pearl
-honey -ice cube
-vanilla -macha green powder
-sweetener -mint green powder
Uses of the product
Our product is good to the health because veggie burgers and eggplant fries
not only help you maintain weight and avoid bacterial infection, but can also help you
prevent serious diseases such as colon cancer. This is because a veggie burger
contains a high amount of fiber. This fiber is not only good for the colon but also
beneficial to your heart. We also offer teas that will give you a to utilize digestive
health and to improve blood circulation.
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Major user customer of the Product
Our main target customers are both kids and adults and the people who pass
by especially those who have health conscious in our designated location.
Geographical areas of Dispersion
Food on wheels will move in designated municipality mostly outside or
front of church of different municipality, parks and places that has gathering large
people so we can attract customers. We also provide a FB page so that we can
provide information and updates where we update our next designated place.
Comparison of the product to its competitors
So far there are small business being operated in the town commercially;
however, some local vendors are selling street foods but those local vendors are
selling on small scale, and the proposed business will be selling vegetable base
burger and fries which is completely a different item. Including the nearby competitors
they provide fast food items to the customers, however these hotels, restaurants with
a higher price situated in a particular place where in the customer have to personally
visit and avail the services, so the idea of food on wheels which immovable and would
serve the customers at their footsteps which is a new concept in the market with a
cheaper price.
2. TOTAL DEMAND
Table 1. Demand
2017 150,000
2018 250,000
2019 375,000
2020 500,000
2021 650,000
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2024 650,000 + 125,000+ 125,000 + 125,000 = 1,025,000
3. Supply
Table 2. Supply
2017 100,000
2018 125,000
2019 190,000
2020 275,000
2021 375,000
N = number of years
Yc= a + Yi -2
Where a = Yn-Yc
N-1
6
Future (projected) Demand (in pesos)
5-1 4
5-1 4
4. Demand / Supply Analysis
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6. Price Study
Product/s Selling
price
Competitor Competitor Competitor Competitors'
Average Price
1 2 3
Veggie 70.00 70.00 80.00 75.00 75.00
Burger
Green tea
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8. Factors Affecting the Market
a. Rivalry among competitors
Direct Competitor
In our province, there is currently no direct competitor for food on
wheels. However, we would still emphasize the quality, taste, and image of
our business following the sales point. Integrating good-to-excellent products
that are offered and to ensure that customers receive greater value for their
money.
Indirect Competitor
Here are our indirect competitors who sell products in a different way, that
is, by alternating the choice of purchasing nearest to our location point:
-Fastfood restaurants
-Coffee shop
-Pizza Store
b. Threat of substitute
Customers can substitute burger and fries to pizza. While, other
customer can substitute our offered beverage milktea and tea to coffee.
Threats of new entrants
Entrants in food on wheels business or other competitors is easily
done, because investment would be low. Therefore, food on wheels will have
high competitors.
9. Marketing Program
Our marketing program is to leverage relationships with local food vendors in
order to grow our initial customer base. We plan to attend public events in order to
offer samples and promotional discounts. Additionally, most of our new customers will
be referrals from existing customers via word of mouth. Food on wheels also plans to
reach new and existing customers through social media and flyers. Our prices will be
lower compared to our direct competitors, and we will also provide larger portions
while maintaining profitability.
A. Product Conceptualization/Development
We all know that throughout this pandemic, people became more health
conscious while also being more thrifty due to the current situation. So, for snacks, we
decided to provide burgers and fries, but not the traditional burger and fries found at
the market, because we will use plant based ingredients, which are both cheaper and
healthier. Matcha milktea, green tea, and mind tea will also be available. It’s energizing
and beneficial to your health.
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B. Promotion
We plan to offer samples and discounts and hand out coupons to customers
who purchase drinks at those businesses.
Additionally, we will hand out and hang up flyers in high-traffic areas during
the first few months of operation. We also plan to utilize traditional social media
platforms to hold contests and advertise promotional events to get the word out
about our business.
B.1 Flyers
Flyers can reach a large range of potential purchasers because they
can be distributed to various locations. Flyers will be given in the first two (2)
months of the business until it will get its loyal customer.
B.2 Tarpaulin
Our business will display tarpaulins, because of the information
supplied as well as its attractiveness, the design of the tarpaulin can capture
the attention of customers. The chosen colors are attractive to the eye and
will undoubtedly increase customer interest in purchasing from our business.
B.3 Social Media
We currently live in a modern society, and surfing the internet is one of
the most convenient ways to get instant access. We’ll use Facebook to reach
out to a wider range of potential customers. This will be great help for them to
know the concept behind Food on Wheels. It will also promote a positive
communication relationship in which we will share information and they will
provide feedback and suggestions for product improvements and other
concerns. You can visit our Facebook page just search Food on Wheels-SB.
C. Distribution Program
Currently, the distribution point is our sole food truck, which will be
located at various locations to meet demand. During the work week, the food
truck will be located in the business district, and on the weekend, we will be
located at nearby cities or side/front of church. If demand outpaces supply,
we plan to open a second food truck.
D. Pricing Strategy
The prices for the fast food will be comparatively low than the usual sit-
down restaurants as they won’t be paying rent and moreover the proposed
business will have varieties of fast food items like those of food trucks given in
other countries.
The following are the fast food items and the prices that would be provided:
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Table 10. PRICES OF PRODUCTS
Product Use/s Sizes Selling Price (PhP)
Snacks
Vegie maintain weight and avoid
Burger bacterial infection
- 70.00
Eggplant may promote blood sugar Medium 50.00
Fries control
Large 65.00
Beverages
Matcha utilize digestive health 12oz 60.00
Milktea
16oz 70.00
Mint Tea improve blood circulation 12oz 50.00
Green Tea reduce risk of heart disease 12oz 50.00
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Pepper 90g. Gram 95.00
Tomato Kilogram 60.00
Parmesan Cheese Gram 194.95
250g.
Mayonnaise 470ml Millimeter 154.25
Matcha Green Tea Kilogram 330.00
Powder
Tapioca Pearl 500g. Gram 111.75
Almond Milk 946ml. Millimeter 124.00
Honey 750ml Millimeter 150.00
Vanilla 20ml. Millimeter 42.00
Green Tea Box 286.76
Mint Tea Box 304.00
Ice Cube Sack 130.00
Hard U Cup for Pack 120.00
Milktea 12oz
The prices of items are set upon considering the existing market price.
Moreover, since the products would be provided personally, it would further help in
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the promotional strategies; Customers’ taste and preferences and feedbacks can be
obtained thus business can work accordingly.
11. Marketing personnel
Number Positions Duties and responsibilities
1 Owner Opens and closes the truck,
purchases food and beverages,
opens the register, tracks
inventory, trains and manages
employees, works with
suppliers, manages your truck’s
marketing and responsible on
promoting and creating
marketing campaign to raise the
awareness of the business and
product.
2. Driver Responsible in driving the food
truck in different designated
location and assisting the
manager in distributing copies
of flyers and advertising the
product in public.
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Selling (insurance cost, sales
commission, utilities and other selling
expense)
60,000 61,000 64,050 67,252
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Chapter 3
ORGANIZATIONAL & MANAGEMENT ASPECT
In order that the important functions of the project will properly be implemented,
the necessary personnel must be projected and identified.
1. Form of Business (Corporate Structure)
Food on wheels will be a sole proprietorship form of business which will be
managed by only one owner, organized and operating out of food truck. The owner
will give duties and responsibilities to employees of day to day operations.
anticipate that we will reach a projected amount of roughly 775,000 in annual sales
by the end of the first 12 months. By the end of the third year, we plan to reach a
projected amount of 1,025,000 in annual sales.
Food on wheels will be recruiting skilled and professional employees
equipping with sanitized equipment which ensures the safety of the customers
especially in making foods as well as the driver who will operate the food truck. Food
on wheels also abide by the rules and regulations imposed by the government that
will surely fit in the industry standard.
2. Organizational Structure
Owner
Chef Driver
Kitchen staff/
Assistant chef
Figure 1. ORGANIZATIONAL STRUCTURE
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3. Officers and Key Personnel
Presented below are the officers and key personnel specifying their duties
and responsibilities in the operation of the project.
Table 1. OFFICERS AND PERSONNEL OF THE PROJECT
Designation Duties and responsibilities
Owner Opens and closes the truck,
purchases food and beverages, opens
the register, tracks inventory, trains
and manages employees, works with
suppliers, manages your truck’s
marketing and responsible on
promoting and creating marketing
campaign to raise the awareness of
the business and product.
Chef Responsibility may encompass more
than just cooking; a cook may also be
responsible for supervising and
training other kitchen staff members
Assistant Chef/ Kitchen Responsible on prepped food and
Staff measure ingredient in preparation for
cooking.
Driver Responsible in driving the food truck
in different designated location and
assisting the manager in distributing
copies of flyers and advertising the
product in public.
4. Staffing Pattern
Presented below are the manpower needs of the proposed project and their
corresponding salary rates.
MANPOWER REQUIREMENTS
Number Designation/Position Salary/month
1 Owner -
2 Chef 7,800
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3 Assistant Chef/ Kitchen 7,680
Staff
4 Driver 7,560
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Chapter 4
PRODUCTION ASPECT
1. The Product(s)
PRODUCTS DESCRIPTION OF PROPERTIES USES
Physical Mechanical Chemical As finished product
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texture then dip in fiber, copper,
occurs. the egg and manganese, B-
roll across 6 and
the thiamine.In
breadcrumbs. addition,
Put the eggplants are
coated source of
eggplant in phenolic
the cooking compounds that
pot. Fry in act as
medium heat antioxidants.
until the color
of the crumbs
is a beautiful
golden
brown.
Matcha It is Grab a bowl, Contains a For
milktea vibrant, and matcha variety of consumption
fresh and powder, a natural
flavourful, whisk and 3- chemicals that
bursting 4 can have
with floral tablespoons beneficial
aromas, of hot water. effects. A few of
thick Scoop 1-1/2 these commonly
creamy tablespoons recognizer as
texture and of your helpful are
might matcha caffeine, I-
balance of powder and theanine,
sweetness. 3-4 theobromine. It
It is tablespoon of contain
vibrant- hot water into significant
green in your bowl. levels, but less
color, a Using a than found in
true whisk mix the coffee.
indication match
of its powder until
supreme you have
freshness. frothy
consistency.
Add vania
into the cup
along with
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your
2tablespoons
of honey.
Add 1 cup of
milk and stir
well. You can
add ice if you
want to.
Mint tea Mint plants Boils two The most For
are mainly cups of important consumption
aromatic water. compunds in
perennials Remove from fresh tea leaves
are they head and add are polyphenol,
posses a handful of amino acids,
erect, torn or enzymes, and
branching chopped mint pigments.
stems and leaves.
oblong to
Cover and
ovate or
steep for fire
lanceolate
minutes and
leaves
strain.
arranged
in
opposing
pairs on
the stems.
The leaves
are often
covered in
tiny hairs
and have
serrated
margin.
Green tea Sparkling, Heat water to Polyphenol and For
stone or 80-85°C not caffeine are the consumption
mineral boiling, this is most important
sensation, the optimal chemicals of
juicy, green tea tea,
creamy, temperature considerable
musty nd to avoid bitter pharmacological
linen-like. taste. significance.
Polyphenols are
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Pour water in present to the
the glass and extent of 30-
add the tea 35% in the dry
leaves. Steep tea leaf matter
the tea and their
leaves for content
three minutes determines the
and add quality of the
sweetener of beverage.
your choice
or any extras
and enjoy.
2. Production Process
a. List of Production Activities
Activities Duration Output Responsible
person
Washing, 10-15 minutes Burger toppings or Kitchen staff/
preparing, cutting add ons Assistant Chef
and slicing of
lettuce, onions,
tomatoes and
eggplant.
Mashing squash 5-8 minutes Raw squash Kitchen staff/
and mixing. patties Assistant Chef
Frying, preparing 10-15 minutes Vegie burger Chef
the buns and
putting toppings or
ad ons
Blending and 3-5 minutes Macha tea Kitchen staff/
mixing of macha Assistant Chef
powder.
Blending and 3-5 minutes Mint tea Kitchen staff/
mixing of mint Assistant Chef
powder.
Preparing green 3-5 minutes Green tea Kitchen staff/
tea bag Assistant Chef
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b. Process Flow Chart
Frying, preparing
Mashing squash the buns and
and mixing. putting toppings or Chef
ad ons
10-15
mins.
es and eggplant. e
3-5 mins.
Blending and
Blending and mixing Preparing mixing of mint
of macha powder. green tea bag powder.
Vegie Burger Eggplant Fries Matcha Milktea Green Tea Mint Tea
Figure 3. Sample Products
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3. Plant Size and Production Schedule
a. Plant/Equipment Capacity
Equipment Minimum rated Maximum rated Planned capacity Future capacity
capacity capacity
b. Daily Operation
Working Days per Year Working Hours per Shift Shifts per Day
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2024 11,132
2025 11,689
Matcha Milktea
Year Volume
2022 5,760
2023 6,048
2024 6,350
2025 6,668
Green Tea
Year Volume
2022 2,880
2023 3,024
2024 3,175
2025 3,334
Mint Tea
Year Volume
2022 2,880
2023 3,024
2024 3,175
2025 3,334
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serve, and/or
sell food in
designated
place
Burger Griller with deep 1 12x16 inches Use to prepare
fryer stainless with deep and cook the
fryer dishes.
Gas 2 Petron gasul (11 Use to operate
kilos) the stove.
Cabinet 2 Height: 1/2 feet, Used for storing
Width: 42 inches burger buns and
other
Depth: 18 inches
ingredients
cabinet size
Refrigerator 1 Small single door Use to preserve
refrigerator ingredients and
vegetables.
Water and Juice 2 50-55 gallon water Use for storing
Container capacity water and juice
10 liters Juice
container
25
Water and Owner 500 2 1,000 Cash
Juice
Container
168,850
26
5. Plant Location and Layout
a. Plant Location (MAP & Charts)
27
b. Plant Layout (Diagrams & Descriptions)
28
8,000 8,000
Cabinet Open cabinet use
for storing
3,000 3,000
50-55 gallon water
Water Container
capacity
500 500
10 liters Juice
Tea Container container
500 500
Total 169,425
A. Direct
Materials
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Mayonnaise 154.25 2 (470 ml) 309.5 Owner
470ml
Olive Oil 319.75 1 liter 319.75 Owner
B. Indirect
Materials
30
8. Utilities/Factory Overhead
Utilities /Factory Overhead Item Source Cost
Equipment set up 24,000
Equipment Maintenance 20,000
Taxes and Licenses Owner 10,000
Cleaning and repairs 15,500
Utilities 20,500
Advertising 10,000
Total Utilities / Factory Overhead Cost per Year 100,000
9. Waste Disposal
Food on wheels aim to control their waste, track how much waste they produce
and determine the best course where they should send their waste. Food on
wheels also produce inedible waste in which they need to apply waste
management practices, as well. This includes waste such as plastic spoons and
forks, paper plates, cardboard and plastic packaging, plastic bottles and cans and
more. We also apply organics waste bin service, sending them to landfill should
be avoided at all costs. With our food waste collection service, we can ensure that
food waste would not go to landfill. We also consider getting a commingled
recycling bin service for the inedible recyclables. This can especially help control
and deal with food trucks’ bottles and cans. With this, we can also save and help
the environment.
10. Job Requirements
Job Title Qualifications Experience
Direct Labor
Comfortable standing,
stopping, squatting,
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Culinary certification or twisting, and moving
degree from a culinary frequently.
school preferred.
Ability to pass a food
service sanitation course.
Ability to read,
comprehend, and follow
recent Experience.
Proven experience as a
cook.
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Kitchen Staff/ Assistant Knowledge of health and Ability to work under
Chef safety rules in a kitchen. pressure.
Communication skills
Attention to detail
Indirect Labor
Owner Bachelor’s degree in At least two years'
experience as a
marketing, finance, marketing manager
business administration,
or similar.
Extensive knowledge of
marketing strategies,
channels, and branding
Superb leadership,
communication, and
collaboration abilities
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Being on time Maintained accurate
travel
Have valid drivers license
Total Labor
Number of Total Salary Total Fringe
Type of Labor Cost per
Workers per Month Benefit Per Year
Month
Direct Labor
Kitchen assistant/ 1 7,680 20,833 342,156
Assistant Chef
Chef 1 7,800 20,833 343,596
Indirect Labor
Driver 1 7,560 20,833 340,716
Administrative
Owner 1 - -
TOTAL 4 23,040 62,499 1,026,468
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12. Direct Labor Cost
35
14. Production Cost
Direct Utilities/Factory
Direct labour Total Cost
Planned Materials Overhead
Product Production
Volume Per Per Per Per
Total Total Total Total
Unit Unit unit Unit
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Chapter 5
FINANCIAL ASPECT
1. Capital Requirement (Project Cost)
37
4.Evaluate and Analyze Plan B
We will check alternative product available in the market and select the best
ones as our alternative Plan B dependent on our goal.
5.Evaluate and Implement Financial Plan
We will get a clear vision for our financial goals and what we have to do to
accomplish them. Taking the first step will be tough as we might not be confident
whether our plan will work or not.
6.Review the Financial Plan Periodically
As we go ahead and actually execute our financial plan, we should re-examine
our plan at regular intervals as a checkpoint towards accomplish our life goals. It is
advisable if we have long term goals, then we should divide our goals into small
milestone.
Loan Requirements
1.Personal Credit Score
Lenders will inquire about our personal credit history and financial details in
order to determine the possibility that we would repay the loan. If our personal finances
are in good shape, lenders will think we will be able to manage our business finances
as well.
2.Loan Purpose
Lenders allow a number of loan uses, so we'll want to be as clear as possible in
this statement. They want to make sure, though, that the quantity of money we're
requesting fits up with the loan's aims.
3.Loan Amount
We'll need to specify our loan amount, or how much money we want to borrow
from the lender, directly to the loan reasons.
4.Business Licenses and Permits
The requirements for a company license vary by state and location, but lenders will
want to see proof of ownership and a business license.
5.Proof of Collateral
Although collateral isn't always required, we may be asked to secure our loan with
a fixed asset such as property or equipment. As a result, if we default on the loan, the
lender may seize our collateral and sell it to recoup some of their losses.
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6.Balance Sheet
This information, such as our profit and loss statement and balance, can help a
lender understand how our business operates and whether our financial are in good
standing. Basically, the lender will look at our balance sheet to check if we have
enough cash on hand to fulfill our business's running expenditures and repay our loan
on time and in full.
3. SECURITY FOR LOAN
Machinery and equipment as collateral or security loans for a business loans
Our truck and equipment could be utilized as collateral for secured business
loans. Before approaching a lender for a secure business, we'll want to know how
much it's worth and what we own it for. We may hire an independent appraiser to
inspect the truck and our equipment and provide a competent appraisal. We'll also
want to retain maintenance records to prove that we've taken good care of the vehicle
and equipment we're offering as collateral.
4. Four-year Projected Profit and Loss Statement
YEAR
Particulars
2022 2023 2024 2025
SALES 2,053,440 2,156,112 2,263,918 2,377,114
Less: COST OF
GOODS SOLD 319,760 335,748 352,535 370,162
GROSS PROFIT 1,733,680 1,820,364 1,911,383 2,006,952
Less: OPERATING
EXPENSES 436,820 458,661 481,594 505,674
NET INCOME: 1,296,860 1,361,703 1,429,789 1,501,278
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ROI: =Net Income /
Total Cost of
Investment 1.89 1.98 2.08 2.19
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Promotion 20,000 21,000 22,050 23,153
Expense
Advertisement 10,000 10,500 11,025 11,576
Utilities 20,500 21,525 22,050 23,153
Total Cash 710,480 588,504 617,378 647,587
Outflow
Net Cash 2,029,780 3,597,388 5,243,928 6,973,455
Inflow
Cash Balance, 2,029,780 3,597,388 5,243,928 6,973,455
Ending
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7. Loan Repayment Schedule
Loan amount: 100,000 Total Payment: 112,728.15
Loan Term: 4 years Total Interest: 12,728.15
Interest rate: 6%
Down payment: 28,182 yearly
Annual Amortization Schedule
Year Beginning Repayment Interest Principal Ending
Balance Balance
2022 100,000 28,182 5,379.70 22,802.30 77,197.68
2023 77,197.68 28,182 3,973.31 24,208.69 52,988.96
2024 52,988.96 28,182 2480.17 25,701.83 27,287.10
2025 27,287.10 28,182 894.95 27,287.05 0
8. Profitability Analysis
To show the financial performance of the project, the Gross Profit Rate, Return
on Investment (ROI), Net Present Value (NPV), Benefit Cost Ratio (BCR), and
Payback Period are presented as tools to indicate if the project is profitable and viable.
NET PRESENT VALUE
YEAR
Particulars
1 2 3 4 TOTAL
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BENEFIT-COST RATIO (BCR)
YEAR
Particulars
1 2 3 4 Total
COST OF GOODS
SOLD 319,760 335,748 352,535 370,162 1,378,205
OPERATING
EXPENSES 336,820 353,841 371,344 389,911 1,451,916
Total Cost 656,580 689,589 723,879 760,073 2,830,121
Present Value
Factor at 18% 0.85 0.72 0.61 0.52
PAYBACK PERIOD
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The Gross Profit Rate of the project shows the efficiency of its production
operation.
The Return on Investment is an indicator of the effectiveness of the uses of the
project’s resources.
To present the net benefits of the project for a period of time in its present value,
the Net Present Value of the project stands at PhP232,462. The project is accepted
since the NPV is very much positive.
As a measure of the economic feasibility based on the relationship between its
benefits and cost, the Benefit-Cost Ratio of the project is 1.14% discount rate for the
first four years of operation. As the BCR is greater than one, the project is feasible.
Based on the average Annual Net Cash Inflows of PhP4,461,138 for the first
four years, the Payback Period for the project is 1.07years. It means that the
investment for the project will be fully recovered in approximately 1.07years and the
project will start to earn.
All the above financial analysis showed that the project is viable and feasible.
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Chapter 6
SOCIO-ECONOMIC IMPACT
1. Educational Value. School Districts and universities across the nation have
become ground zero for the food truck revolution.K-12 schools, high schools and
colleges welcomed Food on Wheels. Kinds and young adults seem to be naturally
drawn to these rolling food servers. Because Food on Wheels provide a cool
environment. Food truck are good condition to school food service. Food trucks are a
big hit with students and schools.
2. Responsiveness to the Needs of the Place. Responsiveness is nothing but to
respond quickly as possible to situation. Food on wheels could also be a help to the
people that cannot travel especially during this pandemic, it also provide safer and
healthier alternative street food. Food on wheels are awesome for communities. They
get customer out on the street and create a sense of community. In addition, food on
wheels stimulate job growth, tourism and entrepreneurship.
3.Improved Quality of Life. Food on Wheels provide plant-based nutritional products
in order to help consumers live healthier lives. It also means more jobs for our
province. The development of jobs and establishing healthy lifestyles would gradually
improve the quality of life of people, especially in the 2nd District of Ilocos Sur.
4.Improved Community Participation. Often, Food trucks can satisfy a demand for
diverse cultural experiences, injecting shot of cultural excitement into outdoor events
that otherwise wouldn't be there. Our Food on Wheels can help to create a vibrant
space in a variety of way. Because it is a pedestrian oriented, they bring more feet
onto the street. Our Food on Wheels food truck will recognized by the public for an
opportunity to drew "foodies" and the culturally curious to the community seeking new
ways to invest their time and money. So, we will make sure that when they come we'll
provide clean common spaces, good service and food, and most importantly, a
welcoming attitude for the customers.
45
FINANCIAL ANALYSIS COMPUTATIONS
Table 17. ASSUMPTIONS OF FINANCIAL ANALYSIS
Particulars COST ANNUAL Remarks
AMOUNT
Revenues
Sales Annual Volume x
Average Selling price
Vegie Burger 11,520 806,400
Eggplant Fries 10,080 584,640
Matcha Milktea 5,760 374,400
Green Tea 2,880 144,000
Mint Tea 2,880 144,000 Less
allowance
Total P 2,258,784
10% Annual sales increase
Expenses
Salaries and Wages Rate/day X 24
days x 13 months
Base Salary 23,040 299,520
Benefit 62,500 750,000
Total P 1,154,472
10% Annual increase
Supplies and 100,000 P 105,000
Materials
5% annual increase
Utilities
46
10 % annual increase
Other expenses Amount/Annum Annual
Equipment 20,000 P 22,000
Maintenance
10.0%
increase /
annum
Promotion Expenses 20,000 P 22,000
Total P 44,000
Capital Outlay
Machineries/ Utensils 100,000 P 100,000
Total P 100,000
Depreciation Cost
Total P 805,237
47
Gross Profit Rate:
= Gross Profit /
Sales 0.84 0.84 0.84 0.84
Net Profit Margin:
=Net Income /
Sales 0.63 0.63 0.63 0.63
ROI: =Net Income /
Total Cost of
Investment 1.89 1.98 2.08 2.19
48
Table 21. PROJECTED CASH FLOW STATEMENT
Cash Inflow 2022 2023 2024 2025
Initial Capital 686,820
Cash Balance, 2,029,780 3,597,388 5,243,928
Beginning
Sales 2,053,440 2,156,112 2,263,918 2,377,114
Total Cash 2,740,260 4,185,892 5,586,306 7,621,042
Inflows
Cash Outflows
Purchase Of 150,000
Food Truck
Machinery And 100,000 105,000 110,250 115,763
Equipment
Fixation of Mini 20,000 21,000 22,050 23,153
Kitchen and
Equipment
Base Salaries 276,480 290,304 304,819 319,398
and Wages
Materials and 100,000 105,000 110,250 115,763
Supplies
Gas and Water 13,500 14,175 14,884 15,628
Expense
Promotion 20,000 21,000 22,050 23,153
Expense
Advertisement 10,000 10,500 11,025 11,576
Utilities 20,500 21,525 22,050 23,153
Total Cash 710,480 588,504 617,378 647,587
Outflow
Net Cash 2,029,780 3,597,388 5,243,928 6,973,455
Inflow
Cash Balance, 2,029,780 3,597,388 5,243,928 6,973,455
Ending
49
Total: 319,760 335,748 352,535 370,162
Operating Expense:
Base Salaries And 276,480 290,304 304,819 320,060
Wages
Overhead Expenses 20,340 21,357 22,425 23,546
Taxes and Licenses 10,000 10,500 11,025 11,576
Promotions 20,000 21,000 22,050 23,153
Advertisement 10,000 10,500 11,025 11,576
Total Operating 336,820 353,841 371,344 389,911
Expense:
TOTAL 656,580 689,589 723,879 760,073
First 4 Months Working Capital 218,260
50
COST OF GOODS
SOLD 319,760 335,748 352,535 370,162 1,378,205
OPERATING
EXPENSES 336,820 353,841 371,344 389,911 1,451,916
Total Cost 656,580 689,589 723,879 760,073 2,830,121
Present Value
Factor at 18% 0.85 0.72 0.61 0.52
51
ANNEX A: Stat Watch Region I
Regional Accounts of the Philippines
As of April 2021
At Current Prices
52
53
ANNEX B: Average Monthly Salary in the Philippines
54
ANNEX C: Average Annual Family Income and Expenditures Survey from
2015-2018
55