Republic of the Philippines

UNIVERSITY OF NORTHERN PHILIPPINES

Tamag, Vigan City
2700 Ilocos Sur

Food On Wheels

A Feasibility Study

Presented by:

COHAYCO, KARLA TERESA P.

DASALLA, ARLENE V.

DE CASTRO, CHRISTINE DANIELLE P.

EBOJO. CHARLES I.

SESUCA, NOVELYN R.

BSBA-HRDM 4F

Presented to:

JHONNIÑO AVILA SERDENIA

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.

2
 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.

3
 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.

4
 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

Year Past Demand (in pesos)

2017 150,000

2018 250,000

2019 375,000

2020 500,000

2021 650,000

Future (projected)Demand (in pesos)

2022 650,000 +125,000 = 775,000

2023 650,000+ 125,000 + 125,000 = 900,000

5
 2024 650,000 + 125,000+ 125,000 + 125,000 = 1,025,000

3. Supply

Table 2. Supply

Year Past Supply (in pesos)

2017 100,000

2018 125,000

2019 190,000

2020 275,000

2021 375,000

Future (projected) Supply (in pesos)

2022 375,000 +68,750 = 443,750

2023 375,000 + 68,750 + 68,750 = 512,500

2024 375,000 + 68,750 + 68,750 + 68,750 = 581,250

COMPUTATION: Straight line projection

Yn = Final value (last year)

Yi = Values for the past year

Yc = Initial value (first year)

N = number of years

Yc= a + Yi -2

Where a = Yn-Yc

N-1

6
Future (projected) Demand (in pesos)

650,000 - 150,000 = 500,000 = 125,000

5-1 4

Future (projected) Supply (in pesos)

375,000 - 100,000 = 275,000 = 68,750

5-1 4
4. Demand / Supply Analysis

Table 3. Demand/ Supply Analysis

YEAR PROJECTED PROJECTED DEMAND/SUPPLY

DEMAND SUPPLY DIFFERENCE

2022 775,000 443,750 331,250

2023 900,000 512,500 387,500

2024 1,025,000 581,250 443,750

5. Projected share in the market

YEAR Projected DEMAND/SUPPLY Proposed Production

Market share DIFFERENCE (Sales) Volume

2022 30% 331,250 99,375

2023 40% 387,500 155,000

2024 50% 443,750 221,875

Assumption: There are 10% increase yearly in the market share

7
 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

Eggplant M-50.00 M-70.00 M-80.00 M-75.00 M-75.00

Fries
L-65.00 L-85.00 L-90.00 L-90.00 L-88.33
Mint Tea 12oz-50.00 12oz-50.00 12oz-65.00 12oz-70.00 12oz-68.33
Match 12oz-60.00 12oz-70.00 12oz-75.00 12oz-65.00 12oz-70.00
Milktea
16oz-70.00 16oz-80.00 16oz-90.00 16oz-80.00 16oz-88.33
Green tea 12oz-50.00 12oz-70.00 12oz-65.00 12oz-60.00 12oz-65.00

7. Definition of Target Market

Table 1. TARGET MARKET

Product Existing market Target market Location/dispersal

Veggie Our dispersal will be at
burger the parks,beaches, office
Office workers, People who are
buildings, bus
Eggplant fries students and health conscious
stations,college
tourists. aging 8-65 years
campuses,tourist spots
Mint Tea old.
and sport venues for
Matcha festivals in District 2 of
Milktea Ilocos Sur.

Green tea

8
 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.

9
 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:

10
 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

10. Cost Analysis

Products Unit Measurement Acquisition Cost
(PhP)
Hamburger Buns Pack 41.00
Squash Kilogram 40.00
Eggplant Kilogram 60.00
Olive Oil Liter 319.75
Butter 200g Grams 74.75
Egg Tray 180.00
Onion Kilogram 80.00
Salt Kilogram 20.00
Cooking Oil (Coconut) Liter 100.00
Bread Crumbs Kilogram 136.75
Garlic Kilogram 120.00

11
 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

Hard U Cup for Pack 150.00

Milktea 16oz
Disposable Black Pack 89.00
pearl Straw
Disposable Paper Cup Pack 305.00
with Lid 12oz

Burger Box Pack 225.00

Paper Bowl Pack 119.00
Table Napkin Pack 45.00
Purified Water Gallon 20.00

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

12
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.

12. Marketing Budget

Marketing expenses 2022 2023 2024 2025
Promotion (event, tradeshow and 20,000 21,000 22,050 23,152
sponsorship)

Distribution (packaging cost, product

30,000 31,000 32,550 34,177
handling cost and storage cost)

Advertising (brochure, flyers, social

media and video advertising)

10,000 11,000 11,550 12,127

13
Selling (insurance cost, sales
commission, utilities and other selling
expense)
60,000 61,000 64,050 67,252

Total marketing expenses 120,000 124,000 130,200 136,708

14
 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

15
 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

16
 3 Assistant Chef/ Kitchen 7,680
Staff
4 Driver 7,560

5. Wage and Salary Administration (Payment of salaries/month; Overtime

pay; Other benefits/incentives; etc.)
Employees of Food on Wheels monthly salaries range from 7,500
pesos to 9,000 pesos. The wage rates of employees will vary due to the
extent of their responsibilities. Overtime pay will be rated 40.00 per hour.
Fringe Benefits:
1.13th month pay 4.Paternity and maternity
leave benefits
2.PhilHealth
5.Holiday Pay
3.Social Security System
(SSS) 6.Hazard Pay
Pre-operating activities (Gantt Chart)
Activities Cost Timetable (months)
(amount 1 2 3 4 5 6 7 8 9 10 11 12
)
1. Feasibility Study 0
and
Development of
Project Proposal
2. Conduct 2,000
Analysis and
Ideal Location
3. Registration of 5,000
Legal Forms
4. Canvasing and 100,000
Acquiring
Materials and
Equipment
5. Food Truck 200,000
Kitchen Fixation
and Installation
6. Hiring of 3,500
Employees
7. Start of 10,000
Operation
Total cost: 320,500

17
 Chapter 4
PRODUCTION ASPECT
1. The Product(s)
PRODUCTS DESCRIPTION OF PROPERTIES USES
Physical Mechanical Chemical As finished product

Burger The patty Inspection Tertiary butyl For

is in and fat hydroquinone is consumption
between analysis. a synthetic
crumbly preservative
Grinding and
and chewy that prevents
mixing.
texture, it’s discoloration in
not dry and Forming. processed food.
wet, it is
Weighing. Magnesium
crispy on
Carbonate also
the outside Loading used in foods to
and moist solution. retain color.
on the
inside, it Erythosine is an
has artificial food
intense coloring.
flavor and
plenty of Propylene
thickness. gylcol is an
odorless,
colorness liquid.
Used s
moisturizer.
Ferric
orthophosphate
also called iron
phosphate, this
chemical is
used to fortify
foods.
Eggplant During fry Heat ½ cup A serving of For
fries it will of cooking oil eggplant can consumption
change in up in a pot. provide atleast
color, oil Coat one og 5%of a person’s
uptake and your eggplant daily
fries in flour, requirement of

18
 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

19
 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

20
 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

21
 b. Process Flow Chart

Frying, preparing
Mashing squash the buns and
and mixing. putting toppings or Chef
ad ons

10-15
mins.

Washing,preparing, 10- 15 mins.

Assistant Chef/ Customer

cutting and slicing of
lettuce,onions,tomato Kitchen Staff serv

es and eggplant. e

3-5 mins.

Blending and
Blending and mixing Preparing mixing of mint
of macha powder. green tea bag powder.

Figure 2. Process Flowchart

c. Sample Products

Vegie Burger Eggplant Fries Matcha Milktea Green Tea Mint Tea
Figure 3. Sample Products

22
 3. Plant Size and Production Schedule
a. Plant/Equipment Capacity
Equipment Minimum rated Maximum rated Planned capacity Future capacity
capacity capacity

Truck 1,500 pounds 2,000 pounds 1,500 pounds 2,000 pounds

Burger griller 2 liters of oil 3 liters of oil 2 liters of oil 2 liters of oil
and deep fryer
Gas 5 kg of weight 11 kg of 11 kg of 11 kg of
weight weight weight
Cabinet 100 pounds 250 pounds 150 pounds 200 pounds
Refrigerator 15 cubic feet 23 cubic feet 20 cubic feet 22 cubic feet
Water and 10 liters 50 liters 30 liters 40 liters
Tea container

b. Daily Operation
Working Days per Year Working Hours per Shift Shifts per Day

288 8 hours 1 shift

c. Projected Production Volume

Vegie Burger
Year Volume
2022 11,520
2023 12,096
2024 212,701
2025 13,336
Eggplant Fries
Year Volume
2022 10,080
2023 10,584

23
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

4. Machinery and Equipment

a. List of machinery, number, specifications and purpose
Machines, Tools & Number Specifications Purpose
Fixtures
Food truck 1 Ranges from 10-26 Medium of
feet long and 7 feet transportation
wide equipped to
cook, prepare,

24
 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

b. List of machinery, suppliers and price

Machines, Tools Suppliers Price per Unit Number of Units Total Cost Terms of
& Fixtures Purchase

Food truck Owner 150,000 1 150,000 Cash

Burger Owner 6,000 1 6,000 Cash
Griller with
deep fryer
Gas Owner 850 1 850 Cash
Cabinet Owner 3,000 2 3,000 Cash
Refrigerator Owner 8,000 1 8,000 Cash

25
Water and Owner 500 2 1,000 Cash
Juice
Container
168,850

c. Cost, Schedule of Useful Life and Depreciation Rate

Machine, Tools Cost Useful Life Depreciation
& Fixtures
Food truck 150,000 5 years 20%
Burger Griller 6,000 5 years 20%
with deep fryer
Gas 850 2 years 50%
Cabinet 3,000 2 years 50%
Refrigerator 8,000 5 years 20%
Water and Tea 1,000 2 years 50%
Container

d. Maintenance and Repairs Schedule

Machine, Tools & Maintenance/Repairs Frequency Cost
Fixtures
Food truck 1 time per month 7,000
Burger Griller with 2 times per month 3,000
deep fryer
Gas 2 times per month 3,000
Breaks 2 times per month 1,000
Refrigerator 2 times per month 3,000
Water and juice 2 times per month 3,000
Container

26
5. Plant Location and Layout
a. Plant Location (MAP & Charts)

Figure 4. Plant Location

Food on Wheels (front of Candon Plaza)
On its opening food on wheels will be located at Candon city front
of plaza and for the next location will be updated on facebook page of food
on wheels.

27
 b. Plant Layout (Diagrams & Descriptions)

Figure 5. Plant Layout

6. Building and Facilities

Facilities Description Item Cost Total Cost
Truck Ranges from 10-26 150,000 150,000
feet long and 7 feet
wide
Kitchen Facilities
Trashcan Cylindrical 75 75
container

Table Rectangular table

500 500
Burger griller with Stainless and
6,000 6,000
deep Fryer single gas type

Gas Petron gasul 11 kg

850 850
Refrigerator Medium size
refrigerator

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

7. Raw Materials and Supplies

Raw Materials Unit Price of Quantity Total Cost Source
& Supplies Materials Needed

A. Direct
Materials

Hamburger 41.00 5 packs 533.00 Owner

Buns
Squash 40.00 2 kilos 80.00 Owner

Eggplant 60.00 2 kilos 120.00 Owner

Onion 80.00 1 kilo 80.00 Owner

Bread 136.5 1 kilo 136.5 Owner

Crumbs
Tomato 60.00 2 kilos 120.00 Owner

Lettuce 60.00 2 kilos 120.00 Owner

Tapioca 111.75 3 (500 g) 111.75 Owner

Pearl 500g.
Green Tea 286.76 1 box 286.76 Owner

Mint Tea 304.00 1 box 304.00 Owner

Ice Cube 130 1 sack 130.00 Owner

29
Mayonnaise 154.25 2 (470 ml) 309.5 Owner
470ml
Olive Oil 319.75 1 liter 319.75 Owner

Salt 20.00 2 kilos 40.00 Owner

Pepper 90g. 95.00 2 (90 g) 190.00 Owner

Cooking Oil 100 1 liter 100.00 Owner

(Coconut)
Parmesan 194.95 1 (250 g) 194.95 Owner
Cheese
250g.
Green Tea 330.00 1 kilo 330.00 Owner
Powder
Honey 750ml 150.00 2 (750 ml) 300.00 Owner

Vanilla 20ml. 42.00 2 (20 ml) 84.00 Owner

Almond Milk 24.75 2 (946 ml) 49.5 Owner

946ml.
Purified 20.00 5 (gal) 100.00 Owner
Water
Butter 200g 74.75 3 (200 g) 224.25 Owner

Egg 180.00 2 trays 360.00 Owner

Garlic 120.00 1 kilo 120.00 Owner

B. Indirect
Materials

Gas 850.00 1 850.00 Owner

Gloves 150.00 2 boxes 300.00 Owner

Table Napkin 45.00 2 packs 90.00 Owner

Total Materials Cost 5,983.96

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

Chef High school diploma or 2-3 years food service or

general education degree restaurant experience
(GED) required. required

Comfortable standing,
stopping, squatting,

31
Culinary certification or twisting, and moving
degree from a culinary frequently.
school preferred.
Ability to pass a food
service sanitation course.

Familiarity with general

kitchen equipment and
appliances.

Strong working knowledge

of food preparation
techniques, cooking
methods, and safety and
sanitation practices.

Ability to read,
comprehend, and follow
recent Experience.

Thorough experience with

hot and cold food
preparation.

Proven experience as a
cook.

2-3 years food service or

restaurant experience
required .

32
Kitchen Staff/ Assistant Knowledge of health and Ability to work under
Chef safety rules in a kitchen. pressure.

High school diploma or Very good physical

equivalent is desirable. condition and endurance
Experience.
Knowledge of basic
cooking techniques . Training from a culinary
school is an asset .
Organizational skills
Proven experience as a
Patience
prep cook Indirect Labor.
Manual dexterity

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

Driver Dependable Driving (1 year preferred)

33
 Being on time Maintained accurate
travel
Have valid drivers license

11. Labor Cost

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

34
 12. Direct Labor Cost

Production Time Direct Labor Rate Direct Labor Cost

Product
per Product Unit (Cost) per Product Unit

Burger 7 minutes 0.02

Eggplant fries 5 minutes 325 0.02
Matcha milktea 3 minutes 0.01
Mint tea 3 minutes 320 0.01
Green tea 3 minutes 0.01

13. Overhead Expenses

Year
Overhead item
2022 2023 2024 2025
Equipment set up 24,000 25,200 26,460 27,783
Equipment Maintenance 20,000 21,000 22,050 23,153
Taxes and Licenses 10,000 10,500 11,025 11,576
Cleaning and repairs 15,500 16,275 17,089 17,943
Utilities 20,500 21,525 22,601 23,164
Advertising 10,000 10,500 11,025 11,576

Total overhead /year 100,000 105,000 110,250 115,195

Overhead/product Unit 20,000 21,000 22,050 23,153

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

Burger 40 3.2 130 0.02 1.55 62 4.82 517

5
325
Eggplan 35 1.8 65 0.02 1.08 38 2.96 103
t fries 6
Matcha 20 2.5 50 0.01 1.5 30 4.01 400
milktea
Mint tea 10 5 50 0.01 3 30 8 80
320
Green 10 5 50 0.01 3 30 8 80
tea

36
 Chapter 5
FINANCIAL ASPECT
1. Capital Requirement (Project Cost)

Account Title Amount

Fixed Assets:
Food Truck 150,000
Machineries and Equipment 100,000
Total Fixed Assets Required: 250,000
Working Capital:
Base Salaries And Wages 276,480
Materials and Supplies 100,000
Equipment and Utensils 20,340
Taxes and Licenses 10,000
Promotions 20,000
Advertisement 10,000
Total Working Capital: 436,820
Total Capital Requirement: 686,820

2. Financing Plan and Loan Requirement

Financing Plan
1.Determine Financial Projection
We need to check our current financial condition. This is the first and important
step in financial planning. In determining our current financial condition we should ask
to ourselves if we have enough money to funds our desired goals. Or are we ready to
deal with out machinery and equipment loans.
2.Create Financial Goal
We should start drafting your financial plan to achieve your goals. Before you
start building it, you should know what financial goals would you like to accomplish
and what will be the time duration for it.
3.Always Identify Your Plan B
A few activities like saving techniques, strengthening our relationship with our
friends, living positive life and keep inspirational to others. When we prepare out Plan
A as our action item to achieve goals at the same time you should be ready with Plan
B.

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.

38
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

2022 2023 2024 2025

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

39
ROI: =Net Income /
Total Cost of
Investment 1.89 1.98 2.08 2.19

Cost of Good Sold

Cost of Goods Sold Amount

Materials 100,000
Direct Labor 185,760
Overhead (Utilities) 34,000
Total: 319,760
Operating Expense:
Base Salaries And Wages 276,480
Equipment and Utensils 20,340
Taxes and Licenses 10,000
Promotions 20,000
Advertisement 10,000
Total: 336,820
5. Four-year 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

40
 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

6. Working Capital Requirement

YEAR
2022 2023 2024 2025
Cost of Good Sold
Materials 100,000 105,000 110,250 115,763
Direct Labor 185,760 195,048 204,800 215,040
Overhead (Utilities) 34,000 35,700 37,485 39,359
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

41
 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

Cost of Investment 686,820 1,298,089 1,359,904 1,428,586 4,773,399

Net Cash Inflows 2,029,780 3,597,388 5,243,928 6,973,455 17,844,551

Present Value
Factor at 15% 0.87 0.76 0.66 0.57 2.86

Present Value 1,085,444 1,161,347 1,146,390 1,147,756 4,540,937

Net Present Value 232,462
* NPV = Cost of Investment - Present Value of Net Cash Inflows

** Accept the Project since the NPV is positive

42
 BENEFIT-COST RATIO (BCR)
YEAR
Particulars
1 2 3 4 Total

Benefit 750,000 787,500 826,875 868,219 3,232,594

Present Value
Factor at 18% 0.85 0.72 0.61 0.52 2.7

Present Value 405,405 266,191 198,135 162,650 1,032,381

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

Present Value 354,908 233,095 173,456 142,390 903,849

BCR 1.14
* BCR = Present Value of Benefits / Present Value of Cost

** Accept the Project since the BCR is more than one.

PAYBACK PERIOD

Total Net Cash Inflows for 4 Years 17,844,551

Average Annual Net Cash Inflows 4,461,138
Total Cost of Investment 4,773,399
Payback Period * 1.07 years
*Payback Period = Total Cost of Investment / Ave. Annual Net Cash Inflows

43
 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.

44
 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

 Electricity, Water and 1,125 /month P 13,500

Gas
Total P 14,850

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

 Machine/ Tools/ Fixtures 35,225 P 35,225 Flat rate in 5

years

Total P 805,237

Table 18. 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

2022 2023 2024 2025

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

Table 19. COST OFGOODS SOLD

Cost of Goods Sold Amount

Materials 100,000
Direct Labor 185,760
Overhead (Utilities) 34,000
Total: 319,760
Operating Expense:
Base Salaries And Wages 276,480
Equipment and Utensils 20,340
Taxes and Licenses 10,000
Promotions 20,000
Advertisement 10,000
Total: 336,820
Table 20. OPERATING EXPENSES
YEAR
OPERATING EXPENSES 1 2 3 4
Salaries 276,480 290,304 304,819 320,060
Utilities 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: 336,820 353,661 371,344 389,911

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

Table 22. WORKING CAPITAL REQUIREMENT

YEAR
2022 2023 2024 2025
Cost of Good Sold
Materials 100,000 105,000 110,250 115,763
Direct Labor 185,760 195,048 204,800 215,040
Overhead (Utilities) 34,000 35,700 37,485 39,359

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

Table 23. NET PRESENT VALUE

YEAR
Particulars
1 2 3 4 TOTAL

Cost of Investment 686,820 1,298,089 1,359,904 1,428,586 4,773,399

Net Cash Inflows 2,029,780 3,597,388 5,243,928 6,973,455 17,844,551

Present Value
Factor at 15% 0.87 0.76 0.66 0.57 2.86

Present Value 1,085,444 1,161,347 1,146,390 1,147,756 4,540,937

Net Present Value 232,462
* NPV = Cost of Investment - Present Value of Net Cash Inflows

** Accept the Project since the NPV is positive

Table 24. BENEFIT-COST RATIO (BCR)
YEAR
Particulars
1 2 3 4 Total

Benefit 750,000 787,500 826,875 868,219 3,232,594

Present Value
Factor at 18% 0.85 0.72 0.61 0.52 2.7
Present Value 405,405 266,191 198,135 162,650 1,032,381

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

Present Value 354,908 233,095 173,456 142,390 903,849

BCR 1.14
* BCR = Present Value of Benefits / Present Value of Cost

** Accept the Project since the BCR is more than one.

Table 25. PAYBACK PERIOD

Total Net Cash Inflows for 4 Years 17,844,551

Average Annual Net Cash Inflows 4,461,138
Total Cost of Investment 4,773,399
Payback Period * 1.07 years
*Payback Period = Total Cost of Investment / Ave. Annual Net Cash Inflow

Table 26. SCHEDULE OF MAJOR ACTIVITIES

ACTIVITIES Year
0 1 2 3 4 5
Start of Operation
Promotional Event
Strengthen Customer
Service
Conduct Satisfactory
Evaluation
Entry of New Menu

51
 ANNEX A: Stat Watch Region I
Regional Accounts of the Philippines

Unit: In thousand Philippine Pesos

As of April 2021

Table 1.1 Gross Regional Domestic Product

Annual 2016 to 2020

At Current Prices

2016 2017 2018 2019 2020

NCR National Capital Region 4,928,222,539 5,327,124,065 5,814,440,130 6,294,194,685 5,797,058,343

CAR Cordillera Administrative Region 255,584,787 280,805,810 308,267,122 322,106,088 296,523,327

I Ilocos Region 490,900,560 527,801,491 587,597,251 630,300,658 597,981,618

II Cagayan Valley 323,458,416 358,686,602 385,061,271 399,370,781 367,095,722

III Central Luzon 1,640,708,336 1,860,323,671 2,062,393,875 2,184,815,143 1,862,908,072

IVA CALABARZON 2,206,254,090 2,423,069,480 2,706,994,745 2,865,792,547 2,565,124,332

MIMAROPA Region 287,300,274 321,948,705 370,744,808 375,589,553 341,983,262

V Bicol Region 431,762,419 465,966,050 522,014,835 560,835,429 515,793,741

VI Western Visayas 720,566,797 791,281,769 860,107,768 919,163,055 850,746,746

VII Central Visayas 977,480,106 1,067,272,679 1,180,945,761 1,270,612,311 1,164,719,190

VIII Eastern Visayas 376,587,299 397,386,688 444,384,029 455,533,643 413,291,591

IX Zamboanga Peninsula 322,282,583 344,667,607 379,428,020 399,109,397 394,567,642

X Northern Mindanao 679,435,851 737,898,187 821,122,015 885,223,985 861,506,489

XI Davao Region 674,076,172 748,538,551 841,429,225 922,613,763 889,457,659

XII SOCCSKSARGEN 381,711,706 420,127,877 454,304,549 474,892,618 467,905,541

XIII Caraga 251,476,878 273,088,164 290,561,794 302,930,146 291,665,099

BARMM Bangsamoro Autonomous

Region
in Muslim Mindanao 184,572,658 210,663,685 235,393,060 254,779,370 260,254,050

Philippines 15,132,381,470 16,556,651,083 18,265,190,258 19,517,863,172 17,938,582,424

Source: Philippine Statistics Authority

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ANNEX B: Average Monthly Salary in the Philippines

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ANNEX C: Average Annual Family Income and Expenditures Survey from
2015-2018

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