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Chapter I

Restobar is derived from two words, restaurant and bar. A restaurant is a business

establishment which prepares and serves food and drink to customers in return for money.

It can be paid before the meal, after the meal or by a running tab. Usually in a restaurant

the meal is eaten within the premises but many restaurants nowadays offers take-out and

food delivery services. Restaurants can be distinguished in different ways. The primary

factors are usually the cuisine. It may differentiate also on factors including speed,

formality, location, cost, service, or novelty themes. It also range from inexpensive and

informal dining places that caters to people working nearby, with simple food served in

simple settings at low prices, to expensive establishments serving refined food and fine

wines in a formal setting. In informal dining, customers usually wear casual clothing. In

expensive and formal dining customers might wear semi-casual, semi-formal or formal

wear. Typically, customers sit at tables. Their orders are taken by a waiter, who brings the

food. After eating, the customers then pay the bill (wikipedia, 2013).
The counter at which drinks are served by a bartender is called the bar. It refers to

a specialized counter where alcoholic drinks like beer, wine, liquor and cocktails are

served and will be consumed within the premises. Prospective customers may sit or stand

at the bar and be served by the bartender, or they may sit at tables and be served by

cocktail servers. Bars usually have entertainment stage like live bands, acoustic artists,

comedians, strippers and dancers. Bars usually with entertainment are often called music

bars or night club (wikipedia, 2013).

The municipality of Buug has many residents with students studying in the cities.

They experienced dining in restaurants and hopping to bars during night outs with

cliques. One of the many aims of the researchers is to give the people of Buug and

neighboring municipalities to experience such uniqueness of music bars and dining in a

restaurant with affordable and good services.

To ensure the viability of the project, the researchers came up to this study. Every

findings and data in this project will be used to whether pursue or revise this project.

This feasibility will enhance the probability of the success of undertakings.

Chapter II

A. Name of the Project

The proposed project shall be called D’LAX Restobar which is composed of the

initial of the researchers. The nature of the business will be a partnership.

B. Location

The proposed D’LAX restobar will be located at Gako’s Residence (below LTO

Office), located at Rizal Avenue and National Highway Intersection, Buug, Zamboanga

Sibugay. A space will be rented and will be renovated to suit for a restobar. The area is

the center of the commercial area of Buug. It is approximately 250 meters away from the

municipal hall, 100 meters away from the municipal public market and 250 meters away

from the bus terminal. It is very ideal for dining passengers, students, teachers,

businessmen and government and private employees.

C. Brief Description of the Project

The proposed D’LAX restobar will offer a dine-out experience no one offered

before in the vicinity of Buug. It will accommodate customers from 3:00 PM to 1:00 AM

which covers afternoon snack time, dinner and clique night out. It will offer delicious

authenticated food only offered by this establishment. The bar offer drinks, cocktails,

wines and beers for a night out of all ages.

The area will be rented and renovated to suit the taste of Buuganons and other

neighboring towns. It will be equipments suitable for modern futuristic set-up. All

necessary equipments will be made movable for future rearrangements and reservations

D’LAX Restobar will accommodate thirty (30) costumers in the dining hall. The structure

of the buildings is “L-shapes” with black and white checkered floor. The ceiling will be

made up of plywood with wooden mouldings and chandeliers are hanging. There will be

a bar that can accommodate twelve (12) costumers at the same time and two (2) comfort

rooms; one (1) for male and one (1) for female. Both comfort rooms are overlayed with

the flooring and two-thirds (2/3) of the walling heights will be covered also with tiles.

D. Objectives of the Project

The proposed project will aim the following objectives:

1. To generate income

2. To provide delicious and affordable foods.

3. To provide unforgettable experience efficient service to the costumers.


4. To give employment to those who are capable individuals but were unemployed.

E. Highlights to the Project

1. Nature of the Project

D’LAX Restobar will start its daily operation at exactly 3:00 PM and closed 1:00

AM. Waiting service type of operation will be employed. D’LAX will serve hot and

newly cooked food from the menu from the opening up to its closing time and kitchen

will be closed at 11:45 PM. Take-out orders are also available. Catering services will

accommodate to special occasions like birthdays, wedding, anniversaries and etc.

The bar will also offer alcoholic beverages, cocktails, beers, fruit juices, milk,

coffee, etc.

2. Mode of Financing

The project will be financed by three (3) people in equal sharing of five hundred

thousand pesos. It will be a Partnership under the management of the proponents.

Project Time Table and Status

Phases Year Activities

January-March 2014 Preparation of Project Feasibility and
Negotiation to the Rental of the
April-August 2014 Building Renovation and Start of
Recruiting and Hiring of Personnels
September 2014 Purchase of Equipments and Materials
October-November 2014 Advertisements and Promotions
December 2014 Start of Business

Chapter III

A. Market Study

1. Demographic Factor

Buug is a third class municipality situated in the eastern part of Zamboanga

Sibugay. According to 2010 Census, it has a population of 35,969 people in 7,629

households. It is politically subdivided into twenty-seven (27) barangays. Buug is major

in farming rice, coconut and rubber. Few coastal barangays are also engaging in fisheries.
Commercial is good in Buug because it is positioned in a national highway where

travelers are plenty. It is situated in the middle from Cagayan de Oro City to Zamboanga

City. It is sixty two (62) kilometers away from Pagadian City in the east and seventy-

seven (77) kilometers away from Ipil, the provincial Capital of Zamboanga Sibugay in

the west.
Buug is the boundary municipality of Zamboanga Sibugay in the east with the

total land area of 137.37 km2. Neighboring towns are Bayog in its north, Diplahan in its

west, Kumalarang in eastern part and the Domanquillas Bay in the South.

2. Economic Status of the Community

Farming is the major source of income in the municipality of Buug. It has a vast

rice paddies and coconut and plantations. Rubber is also a growing source of income and

becoming one of the major products in this area. Few coastal barangays engage in fishing

and fish ponds. Investors built rice mills and copra and rubber buying centers. Buug has

now big grocery stores and shopping centers. Taiwanese and Chinese immigrants also

built cheap china stores offering cheap dry goods. Buug has eight(8) high schools, with

one (1) semi-government, two(2) private and five (5) government owned. It has also two

(2) college and few vocational clinics. Hotels, lodging houses and travels inns are

growing. Intend cafes and gamming centers are also present and up to date.

3. Socio – Cultural forces

Buug is predominantly populated by Visayan people like Boholanos, Cebuano,

Ilonggo and Negrenses. People from Luzon are also found like Batangueños, Ilakanos

and Tagalog.

Natives are Subanens, Maguindanao, Tausogs and Maranaos.

Dominant religions are Catholics and Protestant Christians. Islam is also present

and majorly made up of natives.

The proposed establishment will respect everyone’s socio and cultural forces in

the place because it will aim to cater everyone no matter what their beliefs are.

4. Political and Legal Forces

Buug is composed of twenty-seven (27) Barangays. Peace and order is good. Few

hostilities are recorded but in general, Buug is a peaceful municipality. Military and

police personnel’s are all over the vicinity to maintain order.

Every legal business is welcome to the municipality as long as it helps improve

the economic status and way of living of the community.

To make sure the smooth sailing of the proposed establishment, all necessary

legal documents will be secured and necessary fees and taxes will be paid to the

respected offices.

5. Technology

The municipality of Buug is coping up in terms of technology and started to reach

out the world. It has cellphone signals of the three (3) major telecommunication

companies (Globe, Smart and Sun). it has also telephone lines and internet connections.

The main modes of transportations are multicabs, tricycles and extended motorcycles. In

long distance travels, bus is present twenty-four (24) hours a day.

6. Competition

Competition is always present in all aspects especially in business. Rivalry serves

as challenge and makes the service of any business even better. In this business field there

are few restaurants that exist in the vicinity that might affect the grow of D’LAX


 Pistahan Restaurant

 Buug Palace Inland Resort and Restaurant

 Golden View Hotel and Fast Food

 Kinawboy Grill

 Tribu Grill

 And other small carenderias in the vicinity

But as the concept of restaurant and bar, no one has been put up before. The

challenges created by these competitors will drive D’LAX Restobar to create new

original concepts that will give the prospective costumers new experience in dining and

bar hoping.

7. Forecast Numbers of Costumers and Sales


Forecast numbers of costumers and sales will be determined using the following


MCE = n x s x t

The maximum capacity estimate (MCE) is determined, where n, is the total

numbers of seats, t, the seat turn-over, and s, the serving time.

D’LAX Restobar will have the following data:

Total No. of Seats 30

Seat Turn-over 1 person per hour
Average Time per Costumer 1 hour
MEAL Snack Time Dinner Time After Dinner
Pm Snacks
Duration 3-5 pm 6-9 pm 10 pm-1:00 am
No. of Hours 2 3 3
Maximum Capacity
30x2x1 30x3x1 30x3x1
Estimate (MCE)
TOTAL 60 90 90

Maximun Capacity
Table for Sales Forecast =
Total Seat Occupancy

Seat Occupancy

Meal Period Maximum Capacity Estimate Percentage Seat Occupancy

Snack Time 60 30% 18
Dinner Time 90 40% 36
After Dinner 90 40% 36

Sales for Foods and Snacks

Meal Period Seat Occupancy Average Price Sales per Meal

PM Snack Time 18 100 1,800.00
Dinner Time 36 180 6,480.00

After Dinner 36 150 5,400.00

Total 13,680.00

Total Sales
Total Sales per Day P13,680.00
Total Sales for a Week P95,760.00
Total Sales for a Month P410,400.00
Total Sales for a Year P4,993,200.00

Sales of Beverages

Meal Period Seat Occupancy Average Price Sales per Meal

Snack Time 18 30 540.00
Dinner 36 30 1,080.00
After Dinner 36 70 2,520.00
Total 4,140.00

Total Sales
Total Sales per Day P4,140.00
Total Sales for a Week P28,980.00
Total Sales for a Month P124,200.00
Total Sales for a Year P1,511,100.00

Total Annual Sales

Food and Snack P4,993,200.00
Beverages P1,511,100.00
Total P6,504,300.00

B. Marketing Mix
1. Market
Buug as situated in the nation’s main artery, the national highway, is a very good

site for new business, especially in food business. As a growing third class municipality

with almost 36,000 residence and more or less 7,000 households in twenty-seven (27)

barangays, including the many visitors and travelers passing the viability of a restaurant

and bar is high.

2. Product
D’LAX Restobar will offer menu of authentic and original recipe of the owner at

a very reasonable price. It will be served hot and will be cooked where they can see in the

glass show window. An experience very well suited for people who are not on a hurry

and wants to enjoy the foods and ambience.

Special drinks and beverages will also be made available for clients’ choice

during meal.

3. Promotions and Advertisings

D’LAX Restobar will be promoted and advertised using local medias. It will

published in local provincial tribunals, newspapers and billboards. It will be aired in local

cable TV and FM stations. Leaflets containing the establishment’s specifications will also

be distributed to individuals in Buug and neighboring towns. Streamers will also be

hanged in strategic posts where everybody can see.

4. Pricing
Proper costing of the products will be very reasonable and affordable to all classes

of people. The management will impose a standardized costing for all products to ensure

good and permanent pricing.

5. Channel of Distribution
The center of distribution will be located at national highway, Rizal Avenue

intersection. D’LAX Restobar will cater with no religious or ethnicity restrictions and all

classes of people, dine-in or take-out.

C. Market Analysis

1. Demand
The growing economic status of Buug gives a higher marketing viability. The

rising numbers of business establishments and rising numbers of travelers and visitors are

good signs of a rising demands of food industry. College students from neighboring

towns who studied in our local university are prospective customers for this proposed


2. Supply
As the demand increases, D’LAX Restobar will aim to fill in. Raw materials are

easy to acquire and very accessible in Buug’s local market. Meat Products, vegetables,

marine products and spices are very abundant in the vicinity. Employees are also

abundant for there are plenty of able individuals who are unemployed.

3. Market Survey
As the researcher aim to materialize this proposed project, a market survey was

done to fine out the viability of the proposed project. It was justified that the result of the

survey is positive and viable.

I. Method of Survey

a. Locale

The survey was conducted in Buug, Zamboanga Sibugay, where the

proposed project will be established.

b. Respondents of the Study

There where eighty (80) respondents who where randomly selected from

employees, students, teachers, farmers, business man, travelers and locals. The

data where gathered through questionnaires given to them.

c. Data Gathering Procedure


A questionnaire was formulated to gather data. It was composed of two

parts. The first part is composed of demographic data of the respondents. The

second part is the respondents’ personal opinion on the viability of putting up the

proposed project.

II. Data Analysis

Data were gathered using simple frequency and percentage distribution.

The following formula was used:

R/D x 100 = Percentage Distribution

Where:R = No. of Respondents

D = Frequency of the Total No. of Respondents of the


III.Discussions of Findings

The following are the interpretation and presentation of data gathered from

eighty (80) respondents:

a. Demographic Characteristics of Respondents

Table 1. Distribution of Respondents According to Occupation

Occupation Frequency Percentage

Government 7 9%
Students 36 45%
Businessmen 6 7%
Private Employees 16 20%
Unemployed 15 19%
Total 80 100%

The table above shows the respondents’ occupation. It reveals that the highest

number of respondents is students with 45%, followed by private employees with 20%,

unemployed with 19%, government employees with 9%, and the lowest is businessmen

with 7%. The student got the highest ranking because majority of the passersby in the

vicinity are students from the surrounding campuses; followed by private employees

because the vicinity is the center of commercial in Buug and many private establishments

and offices were found. The area also has many residential houses which unemployed

housewives would like to dine-out.

Table 2. Distribution of Respondents According to Gender

Sex Frequency Percentage

Male 23 29%
Female 57 71%
Total 80 100%

Table 2 above shows the number of respondents according to gender. It shows that

female respondents with 71.25% are more than the male respondents with only 28.75%.

Female respondents are more because they are more approachable than male.

Table 3. Distribution of Respondents According to Age

Age Frequency Percentage

Below 21 46 58%

22 above 34 42%
Total 80 100%

The table above reveals that the respondents aging below 21 years old are the

highest with 58%, followed by the respondents aging 22 years old and above with the

value of 42%. The respondents aging 21 and below were majority of the respondents

because many of them are students and young professionals who worked on private

institutions around the vicinity.

Table 4. Distribution of Respondents According to Religion Affiliation

Religion Affiliation Frequency Percentage

Roman Catholic 45 56%
Born Again 19 24%
Seventh Day 3 4%
Muslims 12 12%
Iglesia ni Cristo 1 1%
Total 80 100%

Table 4 shows the religious affiliations of the respondents. It reveals that the

Roman Catholics have the highest value with 56%, followed by the Born Again

Christians with 24% followed by the Muslims with 12%, and the lowest is the Iglesia ni

Cristo with 1%. Majority of the respondents were Catholic because Buug is a Christian

community and most of the residents are Catholics.

Table 5. Distribution of Respondents According to Civil Status

Civil Status Frequency Percentage

Single 54 68%
Married 26 32%
Total 80 100%

Table 5 above shows the respondents’ civil status. It shows that single respondents

with 67.5% are more than the married respondents with only 32.5%. Majority of the

respondents were single because many of them are students and young professionals and

aging only below 21 years old.

Table 6. Distribution of Respondents According to Their Residence

Address Frequency Percentage

Poblacion 24 30%
Nearest Barangay 13 16%
(1 km away)
2 km away or more 8 10%
Other Towns 35 44%
Total 80 100%

Table 6 above shows the respondents distribution according to their residency. It

reveals that the respondents from the other towns are the highest with the value of 44%,

followed by the respondents from the Poblacion with 30%, from the nearest barangay

with 16% and lowest is from the respondents from barangays 2 km away or more with

the value of 10%. The respondents from other towns is more because many of the

respondents are students who study in the surrounding school campuses and employees to

both government and private from other towns.

b. Responses on the Economic Viability of the Project

Table 7. Distribution of Respondents as to Their Frequency Dining Out

Preference Frequency Percentage

Once a week 39 49%
Twice a Month 2 2%
Once a Month 8 10%
Once a Year 1 1%
Occasionally 30 38%
Total 80 100%

Table 7 shows that the highest value came from the respondents dining out once a

week with 49%, followed by the respondents dining out occasionally with 30%,

respondents dining out once a month with 10%, respondents dining out twice a month

with 2% and the lowest is the respondents dining out once a year with 1%.

The data above signifies that there is a possibility of costumers flooding every

time because majority of the respondents is dining once a week and occasionally, and

occasionally can also be every day.

Table 8. Distribution of Respondents as to Their Preference to Dine in a


Preferences Frequency Percentage

Yes 57 71%
No 23 29%
Total 80 100%

The table above showed that among the respondents, majority prefer to dine in a

restaurant with bar with 71%, and only 29% percent preferred not.

The data above showed that putting up a restobar is a good investment in this

municipality because majority of the respondents prefer to dine in a restobar than on

other kind of food business.

Table 9. Distribution of Respondents If They are Going to Patronize a


Criteria Frequency Percentage

Yes 60 75%
No 20 25%
Total 80 100%

Table above revealed that majority of the respondents are willing to patronize a

restobar with 75%, and only 25% of them said that they are not.

The data above showed that putting up a restobar will be good in this vicinity

because people are patronizing it. Good quality and services will be rendered to make

them patronize it even better.

Table 10. Distribution of the Respondents as to Their Companion in

Dining Out

Companion Frequency Percentage

Friends 36 45%
Family 34 42%
Colleagues 10 13%
Total 80 100%

The table above shows the respondents companion in dining out. It reveals that

respondents dining out with their friends have the highest value with 45%, followed by

respondents dining out with their family with 42% and the lowest is the respondents

dining out with their colleagues with 13%.


The data above showed that more of the respondents are dining out with friends

and families. It signifies that D’LAX Restobar should be spacious for costumers with

companions like friends and families with kids and toodlers.

Table 11. Distribution of the Respondents According to the Amount to

Spend on a Meal

Amount Frequency Percentage

Below 100 18 22%
100-200 25 31%
200-300 14 18%
300 Above 23 29%
Total 80 100%

Table 11 above shows the respondents’ to spend amount in a meal. It reveals that

the respondents spending P100-P200 has the highest value with 31%, followed by the

respondents spending P300 and above with the value of 29%, the respondents spending

below P100 with 22% and the lowest is the respondents spending P200-P300 with the

value of 17.5%.

The data on table 11 signifies that pricing isn’t a problem among the respondents.

Costumers are willing to spend more in a restobar. Good service, cleanliness and good

ambience will give them reasons to spend more.

Table 12. Distribution of the Respondents According to Their Expectation

to the Kind of Entertainment in a Restobar.

Entertainment Frequency Percentage

Acoustic 50 62%
Live Band 30 38%
Total 80 100%

Table 12 above shows that majority of the respondents like acoustic music lounge

as the main entertainment of the restobar with 62%, and the other 38% liked to have a

live band as the restobar’s main entertainment.

The data above showed that majority of the respondents liked soft music as

entertainment and only few liked loud music in a restobar.

Table 13. Distribution of the Respondents as to Their Preference to the

Type of Food They Like.

Preference Frequency Percentage

Spicy Food 44 55%
Vegetarian Food 18 23%
Curry 13 16%
Raw 5 6%
Total 80 100%

The table above shows the respondents preference of the type of food they like. It

reveals that the highest number of respondents like to eat spicy food with 55%, followed

by the respondents who like to eat vegetarian food with 23%, respondents who like curry

type of food with 16%, and the lowest is the raw type with only 6% of the respondents.

This signifies that a restobar should not only focus on one type of food to serve

but plenty of varieties. People have different taste and should be accommodated to earn


Table 14. Distribution of the Respondents as to Their Preference to the

Type of Ambience They Like.

Preference Frequency Percentage

Modern/Futuristic 31 39%
Open Air 22 27%
Nature 20 25%
Indoor/Ball Type 7 9%

Total 80 100%

The table above shows the respondents preference to the type of ambience they

like. It revealed that the highest number of respondents is on modern/futuristic type with

39%, followed by open air with 27%, nature with 25%, and the lowest number of

respondents is on indoor/ball type with only 9%.

This signifies that the respondents like the ambience to be modern and futuristic.

Modern accessories and gadgets should be installed inside the restobar to meet their

preference. To give those who wanted nature, open air and others, the proponents will be

mixing it to the modern setting. Not just modern but also has nature, like ornamental

plants and open air, or tables near the windows. People who liked dancing can also enjoy

the mini dance floor for ball lovers.

Table 15. Ranking of Factors in Motivating the Respondents in Dining in

a Restobar

Factors Frequency Rank

Ambience 422 1
Food Taste 387 2
Services 374 3
Affordability 327 4
Sanitation 285 5
Location 239 6
Facility 229 7

The table 15 above shows the ranking of factors in motivating the respondents in

dining in a restobar. It reveals that ambience got the highest score with 422, followed by

food taste with 387, services with 374, affordability with 327, sanitation with 285,

location with 239, and the lowest score is on facility with 229.

It signifies that the respondents will love to dine in a restobar with good ambience

delicious food and good services. Affordability is ranked in the middle signifies that

pricing is not a problem as long as good ambience, food and services is rendered.

Sanitation although low is very important to food business. To ensure best sanitation,

working area or the kitchen will be viewable for the costumer’s satisfaction. Location and

facility will not be a problem to the respondents. Even far from their home as long as it

offers good ambience, food and services, it is worthy to be patronized.

Chapter IV


This chapter tackles about the management aspect of the study.

A. Organizational Chart







B. Ownership

D’LAX Restobar will be a partnership between the proponents. The needed

capital will be provided by the three (3) proponents which are also the owners and will

manage the business.

C. Basic Consideration

Nine (9) personnels will be at the start of the business. All employees will be

expected to be very versatile with work. Multi-tasking system will be utilized and

everyone will be expected to know every task that may be assigned to them. This way, it

will save costs and cut expenses.

More personnels may be hired as the business expands.

The following are the prospective designations of the personnels:


Table 1. Designation of Personnels

Position No. of Personnels

Manager 1
Cook 1
Assistant Cook 1
Assistant Manager/ 1
Barman 1
Waiter 1
Mess Man 2
Security Guard 1
Total 9

Table 2. Schedule of Day-Off and Substitutes


Manager Monday Cashier
Cook Monday Asst. Cook
Asst. Cook Tuesday Cook
Asst. Manager/ Tuesday Manager
Barman Wednesday Waiter 1
Waiter 1 Monday Messman 1
Mess Man 1 Thursday Messman 2
Mess Man 2 Friday Asst. Cook
Security Guard Monday Designated from the


D. Type of Operation

D’LAX Restobar will operate ten (10) hours per day from 3 pm to 1 am, seven (7)

days a week. The operation is a table service. Which Every costumer will select the food

from the menu book and a waiter will accommodate and get the order. As soon as the

cook prepared the food, the waiter will deliver them to the table.

E. Operating Policies

1. D’LAX Restobar will open at 3pm and closes at 1 am.

2. All employees are required to be punctual and tardiness is subject disciplinary


3. One (1) duty meal will be provided to each employee.

4. One (1) day-off will be designated to every employee at different days of the


5. All employees are restricted to use cellphones during working hours except

for break time.

6. Smoking while on duty is strictly prohibited.

7. Absence without prior notice is subject for disciplinary action.

8. Wearing of designated uniforms and nametags should be strictly observed.

9. Taking out of leftover food is subject for approval from the management.

10. All employees are obliged to be well-groomed at all times.

11. Sleeping is strictly prohibited during working hours.


12. Under influence of alcohol and gambling within the premises is ground for


13. All employees shall be checked upon entering and leaving the premises.

14. Any complaints from the costumers shall be reported to the management


15. Salaries are due every 15th and last day of the month.

16. Filing of leave of absence should be done one week in advance.

17. Proper benefits of the employees will be given; like SSS and Phil Health.

18. All employees shall not go beyond co-worker relationship.

19. All violations of policies shall be considered offensive and will be subjected

for disciplinary actions.

F. Job Analysis

1. Job Description

 Manager/Purchaser

o Responsible for the overall operation of the establishment.

o Handling customer complaints.


o Screens, Hire and interview personnel

o In charge of settling conflict between Co-workers Inside the


o In charge of making the duty roaster of the workers.

o Evaluates the workers and their performances.

o Gives the final decision of the termination of the workers.

o Motivate the workers on their job to be more productive.

o Establish a good relationship to the customers especially to the


o Organize and plan of the every aspects of the business.

 Cook

o In charge of supervising the kitchen.

o Checking the food before it will be served.

o In charge of the purchasing of the materials inside the kitchen.

o Organize and plan the menu.

o In charge in food costing.

o Responsible of making and estimates the daily consumption of

the workers meals.

 Asst. Cook/Stockroom In charge

o Assist the Cook

o Supervise every materials needed in the kitchen.


o Responsible of kitchen utensils and doing inventory in the


o In charge in the kitchen and purchasing when the cook is not


 Asst. Manager/Cashier

o In charge of all the restaurant operations when the Manager is

not around.

o Supervise every staff action when the manager is not around or

the Captains.

o In charge of the cash and sales of the establishment.

o Receives payment cash, cheques and credit cards etc.

o Checking daily cash account.

o In charge of answering phone calls.

o In charge in taking orders through phone calls.

 Barman

o In charge of all the liquors and beverages inside the bar.

o Supervise the bar of any item or needed to be replenish.

o Always check the SOP (standard operating procedures) on

making cocktails and any beverages through the standards of

the organization.

o Plan and organize cocktail menu.

o In charge of the inventory and sales in the Bar.


 Waiter

o Entertain costumers, get their orders and deliver pending orders

from the kitchen to the dining table of the respective costumer.

o In charge of the cleanliness of the dining tables before and after

the costumer has dined in.

o Assist the bar tender in the bar.

 Mess Man

o Overall in charge of throwing the Rubbish and cleaning the


o In charge of washing the plates and the cutleries.

o Helper of the kitchen staff.

 Security Guard

o Overall in charge of the security and safety of the


o Checking the employees’ belongings upon logging in and

logging out of duty.

2. Job Specification

 Manager

o Male of Female

o 25-35 years old

o Hotel and Restaurant Management Graduate


o Pleasing Personality

o Good conversationalist

o At least one (1) year experience in restaurant employment

o Physically and mentally healthy

o Versatile in any working conditions

 Cook

o Male

o At least 25 years old

o At least two (2) years working experience as cook

o College level

o Physically and mentally healthy

 Assistant Cook

o At least 21 years old

o Male or Female

o High school graduate

o At least one (1) year cooking experience

o Physically and mentally healthy

 Asst. Manager/Cashier

o Female

o At least 21 years old

o College level

o At least one (1) year experience

o Honest, friendly and hardworking

o Physically and mentally healthy

 Barman

o 20-30 years old

o Male or female

o Must be a National Certificate II (NC-II) holder on Beverages

and Bartending

o At least one (1) year working experience as bartender

o Pleasing personality

o Friendly and Good conversationalist

o Physically and mentally healthy

 Waiter

o Male or Female

o 18-28 years old

o High school graduate

o Pleasing personality

o Responsible and hardworking

o Physically and mentally healthy

 Security Guard

o Male

o At least 25 years old

o High school graduate

o Must be a National Certificate II (NC-II) Holder on Public

Safety and Security

o Trustworthy and Reliable

o Physically and mentally healthy

 Messman

o Male or Female

o 18-28 years old

o High School Graduate

o Responsible and hardworking

o Physically and mentally healthy

3. Salaries and Wages

Position Daily Salary Monthly Annual Overtime

Salary Salary Pay Per
Manager P250 P6,500 P78,000 P38
Cook 200 5,200 62,400 30
Assistant Cook 150 3,900 46,800 22
Asst. Manager/ 180 4,680 56,160 27
Barman 150 3,900 46,800 22
Waiter 1 120 3,120 37,440 18
Waiter 2 120 3,120 37,440 18
Messman 1 100 2,600 31,200 15
Security Guard 200 5,200 62,400 30
Total P1,450 P37,700 P458,640.00 P217

Daily Salary
Salary per Hour =

Overtime Pay = (Salary per Hour) x 1.2

B. SSS Contribution

Position Monthly Employer’s Employee’s Total

Salary SSS SSS Contribution
Contribution Contribution
Manager 6,500 459.30 216.70 676
Cook 5,200 353.30 166.70 520
Assistant Cook 3,900 282.70 133.30 416
Asst. Manager/ 4,680 318 150 488
Barman 3,900 282.70 133.30 416
Waiter 1 3,120 212 100 312
Waiter 2 3,120 212 100 312
Messman 1 2,600 176.70 83.30 260
Security Guard 5,200 353.30 166.70 520
Total 38,220 2,650.00 1250.00 3,920.00

Total Contribution for SSS P3,920

x 12______
Total Annual Contribution P47,040

C. PhilHealth Contribution

Position Monthly Employer’s Employee’s Total

Salary Phil Health Phil Health Contribution
Contribution Contribution
Manager 6,500 87.50 87.50 175.00
Cook 5,200 87.50 87.50 175.00
Assistant Cook 3,900 87.50 87.50 175.00
Asst. Manager/ 4,680 87.50 87.50 175.00
Barman 3,900 87.50 87.50 175.00
Waiter 1 3,120 87.50 87.50 175.00
Waiter 2 3,120 87.50 87.50 175.00
Messman 1 2,600 87.50 87.50 175.00
Security Guard 5,200 87.50 87.50 175.00
Total 38,220 787.50 787.50 1,575.00

Total Contribution x 12 = Annual Contribution

P1,575.00 x 12 = P18,900

D. Employee’s SSS and PhilHealth Contribution

Position Monthly Employee’ Employee’s Total Total

Salary SSS Phil Health Contributio Annual
Contributio Contributio n per Month Contributio
n n n
Manager 6,500 216.70 87.50 304.20 3,650.40
Cook 5,200 166.70 87.50 254.20 3,050.40
Assistant Cook 3,900 133.30 87.50 220.80 2,649.60
Asst Manager/ 4,680 150 87.50 237.50 2,850.00
Barman 3,900 133.30 87.50 220.80 2,649.60
Waiter 1 3,120 100 87.50 187.50 2,250
Waiter 2 3,120 100 87.50 187.50 2,250
Messman 1 2,600 83.30 87.50 170.80 2,049.60
Security Guard 5,200 166.70 87.50 254.20 3,050.40
Total 38,220 1,250 787.50 2,038.00 24,450.00

E. Employee’s Basic Net Salary

Position Annual Basic Annual SSS/Phil Net Basic Salary

Salary Health
Manager P78,000 3,650.40 P74,349.60
Cook 62,400 3,050.40 59,349.60
Assistant Cook 46,800 2,649.60 44,150.40
Asst. Manager/ 56,160 2,850.00 53,310.00
Barman 46,800 2,649.60 44,150.40
Waiter 1 37,440 2,250 35,190.00
Waiter 2 37,440 2,250 35,190.00
Messman 1 31,200 2,049.60 29,150.40
Security Guard 62,400 3,050.40 59,349.60
Total P380,640.00 24,450.00 434,190.00

F. Employee’s Meal

Cost of Meal = 9 x 1 x P30.00

= P270.00

Total Cost of Employee’s Meal/Day = P270.00

Total Cost of Employee’s Meal/Week = P1,890.00

Total Cost of Employee’s Meal/Month = P8,100.00

Total Cost of Employee’s Meal/Year = P98,550.00

Chapter V

A. Employment and Income


The proposed project will be beneficial to the community. It will provide

employment to the public where nowadays, many are unemployed. In the vicinity of the

proposed establishment, availability of personnel will not be a problem due to there is a

lot of young adults who are looking for a job. Yearly, young graduates are suffering for

unemployment. The two colleges in the vicinity provide young graduates who wish to

experience employment and have their own income. The resident of Buug shall be the

priority of recruitment because they are more familiar with the customs and beliefs of

their community. In this basis, they are more aware of the traditions and could help

suggest enhancement for the attraction of costumers.

With this proposed project and its given opportunity of employment, the people of

Buug will enhance their way of living by the standard of making themselves to the

working class.

B. Taxes

Buug is a third class municipality; therefore it offers not so heavy taxes. It will be

beneficial for the proponents and the government as they receive and provide with each


Before the operation will be started, all necessary legal papers shall be provided

and complied. The proponents shall comply business permit, sanitary permit, fire safety

permit, mayor’s permit, DTI registration, BIR registration and other legalities of the


With these taxes, it will enhance the municipality’s economy in simple ways.

C. Supply of Commodities

Every materials and ingredients that will be used in the operation of the proposed

project will be purchased in the local market, stores and dry goods shop. The

municipality of Buug is an agricultural area so there will be no problem in marketing

ingredients and materials. Once a week, a market day is established and cheap products

are sold straight from the farm or the manufacturer.

D. Demand

The demand for a Restobar in the area is high for the proposed project is the only

restobar that is to be built. Many competitors are present like carenderias, eateries,

restaurants, resorts and other establishments offering food, but D’LAX is the only one

with its line of offered services.

To improve more and to attract customers in patronizing the proposed project, the

management will cater suggestions and recommendations from the customers.

Chapter VI

A. Project Description

The proposed project will be a restaurant and bar. Fine dining is offered, just

rightly fitted for people who want to enjoy their meal not in a hurry manner. D’LAX

Restobar will be elegant, modernized design with open air ambience. During night outs, a

performer; a live band or an acoustic singer, will be there to entertain the customers.

Aside from fine dining, a bar is established in order for bar hoppers to enjoy city-like

cocktails and beverages. The waiters and waitresses are friendly and accommodating and

always be there as the customers needed them. The food will always be newly cooked

and hot as it is served.

The proposed establishment will be much fitted to lovers having their dates during

their monthsaries, anniversaries and other special occasions. It will be perfectly suited for

families who want to experience remarkable ambience in dining out. It will be best for

cliques, gangs and co-workers for birthdays, and other special occasions. D’LAX will be

accommodating everyone, no boundaries to religion, sexual orientation, tribe or political


B. Location of the Project

D’LAX Restobar will be located at the heart of the commercial center of Buug. It

will be placed in Gako Commercial Building ground floor, Corner National Highway and

Rizal Avenue, Buug, Zamboanga Sibugay.

C. Menu

A menu book will be provided for the customers to choose what to order. A

sample menu is presented on the next page:


Special Beverages

D’LAX Restobar
(A typical Calamansi Juice with the unique preparation of the establishment)


(A typical Green Tea with a taste of fruit flavors according to the costumer’s taste.
E.g. Green Tea Strawberry Combo)


(A typical Lemon Grass Tea with a taste of fruit flavors according to the
costumer’s taste. E.g. Lemon Grass Tea Apple Combo)


(A typical Creamy Coffee/Chocolate Combo served ice cold)


(Coffee with cream and sweetener served iced cold)


(Coke blended with vanilla ice cream)

(Beer mixed with Green Tea)


(Rhum mixed with Liquid Chocolate, Coffee and Cream)


(Vodka with Lemonade and a Slice of Lemon and Pinch of Salt)


(Rhum sweetened with sugar cane juice, lime juice and mint leaves)


(Vodka and Chocolate or Coffee with Cream)

GIN 7 ANGELS 60.00

(Gin and 7 Up Soda on Ice with mint leaves)


(Tequila with Lime juice and a pinch of salt on the glass rim)

Short Orders
(Typical Clubhouse Sandwich Especially made for D’LAX Costumers)


(A not-so-typical way of preparing siopao. A taste of siopao and empanada in


(Ice Cream Coated with Pre-mixed Flour Dipped in Boiling Oil to Experience of
Hot Fried on the Outside and Cold Ice cream on the Inside)


(Typical Filipino Style Spaghetti with a Unique Taste of D’LAX)


(Typical Cheese Burger with a Unique Taste only in D’LAX)


(Typical Hotdog Sandwich with a Unique Taste only in D’LAX)


(Typical Hamburger with a Unique Taste only in D’LAX)


(Pansit Canton with only Seafood flavoring suitable for Muslims and Other Non-
meat diet costumers)


(Lumi with only Seafood flavoring suitable for Muslims and Other Non-meat diet


(Batchoy with crispy chicharon toppings)

(Fried Chicken Wings with Extra Ordinary Spiciness and Hotness)


(Squid Bits coated with pre-mixed flour and flavorings lightly friend with giant
white onion rings)


(Grilled Uniformed Small-Sized Marinated Squid)


(Typical Filipino Appetizer Sisig with Unique Taste only in D’LAX)


(Deep Fried Uniformed Sized Marinated Small Prawns Topped with Chili Flakes)


(A Filipino Style Sushi “Kilawin” Bangus)


(Filipino Style Shrimp Lumpia with Vegetables)

Main Course
(Tender Pork Legs in sticky sauce with pineapple chunks. Locally known as


(Typical Chicken Curry cooked in D’LAX style with distinct taste only in


Grilled Tuna belly topped with sautéed asparagus, broccoli and others)


(Crabs cooked with squash and curry)


(Clams stew seasoned with beef broth)


(A typical Pansit Guisado with meat balls seasoned with Oyster Sauce)

(Typical Milk Shake with drops of Strawberry Syrup)


(Graham Biscuit Layers with Chocolate Syrup, Flakes, Peanuts, Cream,
Condensed Milk and M & M candies)


(Sweet Corn in Cream and Milk with Crushed Ice)


(A Cup of Ice Cream with Chocolate Flakes and Mini Chocolate Cookies on top)

COLA (8 oz.) 15.00
SODA (8 oz.) 15.00
COFFEE 20.00
ICED TEA 15.00
BEER (350 ml.) 35.00
1 SET BEER (5 pcs.) w/ 1 APPITIZER OF CHOICE 175.00

D. Facilities and Equipments


The proposed D’LAX Restobar will adopt a modern and futuristic set up of the

ambience and will be an open air establishment. It will be open for natural ventilation

supplemented with large ceiling fans. Lightings will be excellent until diner time and

after diner events will be dimed and only the stage will be lighted for the performers to be

Equipments and utensils will be made sure to pass the Philippine standard in order

for good and durable products.

The facility will be engineered well and materials are hard wood and cement for

good result and durability. It will be supervised with professional foreman for better


E. Labor Requirements

There will be twelve (12) employees to be hired with one (1) manager, one (1)

cook, one (1) assistant cook, one (1) cashier, one (1) barman, four (4) waiters, two (2)

messmen and one (1) security guard. Each recruited employee will be screened

thoroughly and must meet the requirements for the slot applied. Once employed, every

employee will be given all the benefits the government designed for them. All of them

will undergo trainings and debriefing for better performances.

F. Waste Disposal

Trash bins will be put up in the vicinity. Proper waste disposal will be practice

including proper segregation according to the municipality’s design. A government

garbage truck will collect the segregated wastes once in two days.

G. Utilities

Basic utilities required like electricity, water supply, telecommunication and

internet connection will be installed in the establishment.

The electricity will be provided by the local electric cooperative, the Zamboanga

del Sur Electric Cooperative II (ZAMSURECO II). The water supply will be provided by

the local water system of the municipality. Telecommunication will be from the three (3)

major cellphone signal providers, the Globe, Smart and Sun Cellular. The internet

connection will be provided by the PLDT-DSL.

H. Drainage

Proper drainage system will be strictly implemented to prevent flooding and

avoidance of unpleasant smell. Canals will be built in stagnant water areas. Proper

disposal of garbage will also help in avoidance of stagnant water. Throwing of solid

waste in the sink and sewers will be strictly prohibited.

I. Building Lay-out

1. Location Map/Site

2. Perspective Views

a. Front View

b. Rear View

c. Left and Right Views

d. Bird’s Eye View


3. Floor Plan

4. Servicing Counter

5. Ceiling Plan

6. Comfort Rooms

7. Electrical Lay-out

Chapter VII

A. Financial and Equipment

1. Office Equipments

Quantity Unit Item Description Unit Price Total Price

1 Unit Office Table 3,000.00 3,000.00
1 Unit Swivel Chair 1,800.00 1,800.00
1 Unit Cash Register 8,600.00 8,600.00
1 Unit Printer 2,200.00 2,200.00
1 Unit Personal Computer 17,000.00 17,000.00
1 Unit Wall Clock 185.00 185.00

1 Unit Stapler 60.00 60.00

1 Unit Calculator 175.00 175.00
1 Unit Wifi Router 1,800.00 1,800.00
1 Unit Scissors 60.00 60.00
2 Units Office Chairs 600.00 1,200.00
Total 36,080.00

2. Office Supplies

Quantity Unit Item Description Unit Price Total Price

1 Dozen Ballpen 60.00 60.00
1 Bundl Bond paper 1,300.00 1,300.00
1 Dozen Folder 60.00 60.00
1 Dozen Scotch tape 180.00 180.00
1 Box Staple wire 25.00 25.00
2 Pieces Record book 75.00 75.00
1 Box Paper clip 15.00 15.00
Total 1,715.00

3. Kitchen Equipments

Quantity Unit Item Description Unit Price Total Price

1 unit Burger machine 8,000.00 8,000.00
1 unit 2 Door Refrigerator 22,000.00 22,000.00
2 units Blender 3,000.00 6,000.00
1 unit Weighing scale 250.00 250.00
1 unit Working table 3,000.00 3,000.00
1 unit Pressure cooker 3,200.00 3,200.00
1 unit Gas stove and tank 3,500.00 3,500.00
1 Unit Water heater 1,850.00 1,850.00
2 units Steamer 3,000.00 6,000.00
1 unit Oven and gas tank 10,000.00 10,000.00
Total P63,800.00

4. Furnitures and Fixtures

Quantity Unit Item Description Unit Price Total Price

6 Pieces Dining Table for 4 1,200.00 7,200.00
3 Pieces Dining Table for 2 800.00 2,400.00

30 Pieces Dining chair 600.00 18,000.00

1 Piece Cashier table 1,200.00 1,200.00
1 Piece Cashier chair 600.00 600.00
10 Pieces Bar stools 1,200.00 12,000.00
Total 41,400.00

5. Kitchen and Dining Utensils

Quantity Unit Item Description Unit Price Total Price

2 Pieces Carajay 500.00 1,000.00
2 Sets Ladles 250.00 500.00
2 Pieces Stock pot 675.00 1,350.00
5 Pieces Food tong 25.00 125.00
3 Pieces Chopping board 185.00 555.00
2 Sets Kitchen knives 750.00 1,500.00
2 Pieces Butchering Knife 1,200.00 2,400.00
1 Piece Sharpening stone 125.00 125.00
1 Piece Electric Beater 2,450.00 2,450.00
3 Pieces Basin 115.00 345.00
2 Pieces Can opener 125.00 250.00
2 Pieces Bottle opener 50.00 100.00
10 Pieces Glass rack 35.00 350.00
2 Pieces Dish rack 350.00 700.00
1 Set Strainer 120.00 120.00
1 Set Measuring cups 120.00 120.00
1 Set Measuring spoons 120.00 120.00

2 Pieces Water jug 175.00 350.00

3 Pieces Mixing bowl 65.00 195.00
2 Pieces Ice cream scoop 150.00 300.00
1 Unit Water dispenser 5,700.00 5,700.00
3 Pieces Water gallon 195.00 585.00
3 Pieces Thermal jug 285.00 855.00
5 Pieces Serving tray 115.00 575.00
3 Dozen Dinner plate 444.00 1332.00
3 Dozen Spoon 192.00 576.00
3 Dozen Fork 192.00 576.00
3 Dozen Drinking glass 144.00 432.00
2 Sets Cup and saucer 157.00 314.00
3 Dozen Serving bowl 192.00 576.00
2 Dozen Teaspoon 169.00 338.00
20 Pieces Serving spoon 15.00 300.00
3 Dozen Mug 216.00 648.00
1 Piece Charcoal griller 1,200.00 1,200.00
24 Pieces Wine glass 50.00 1,200.00
Total 28,162.00

6. General Supplies

Quantity Unit Item Description Unit Price Total Price

1 Bundl Table napkin 65.00 650.00
1 Bundl Drinking straw 20.00 200.00
1 Pack Toothpick 75.00 75.00
15 Pieces Tablecloth 150.00 2,250.00
3 Pieces Trash can 190.00 570.00
2 Pieces Dust pan 135.00 270.00
3 Pieces Mop 195.00 585.00
3 Pieces Soft broom 35.00 105.00
1 Piece Dishwashing liquid 40.00 40.00
1 Bundl Sponge 100.00 100.00

1 Bar Laundry soap 22.00 22.00
1 Bottle Disinfectant 75.00 75.00
1 Bundl Cellophane bags 150.00 150.00
2 Pieces Toilet deodorizers 35.00 70.00
3 Pieces Pail 120.00 360.00
3 Pieces Dipper 15.00 45.00
2 Pieces Hand soap 25.00 50.00
1 Piece Tissue 15.00 15.00
3 Pieces Broomsticks 10.00 30.00
3 Pieces Dusters 20.00 60.00
10 Pieces Light bulbs 175.00 1,750.00
total 7,472.00

7. Other Necessities

Quantity Unit Item Description Unit Price Total Price

2 Unit Ceiling fan 2,500.00 5,000.00
1 Unit TV 8,400.00 8,400.00
2 Unit Fire Extinguisher 3,500.00 7,000.00
1 Unit Logo/Signage 5,000.00 5,000.00
1 Unit DVD Player 2,000.00 2,000.00
1 Set Sound System 75,000.00 75,000.00
total 102,400.00

B. Estimated Life Span

1. Office Equipments

Item Description Project Cost Estimated Life Span Depreciation

(Years) Cost
Office Table 3,000.00 8 375.00
Swivel Chair 1,800.00 8 225.00
Cash Register 8,600.00 10 860.00

Printer 2,200.00 3 733.33

Personal Computer 17,000.00 5 3,400.00
Wall Clock 185.00 2 92.50
Stapler 60.00 2 30.00
Calculator 175.00 2 87.50
Wifi Router 1,800.00 5 360.00
Scissors 60.00 2 30.00
Office Chair 600.00 8 75.00
Total 6,268.33

2. Kitchen Equipments

Item Description Project Cost Estimated Life Span Depreciation

(Years) Cost
Burger machine 8,000.00 8 1,000.00
2 Door Refrigerator 22,000.00 10 2,200.00
Blender 6,000.00 4 1,500.00
Weighing scale 250.00 3 83.33
Working table 3,000.00 10 300.00
Pressure cooker 3,200.00 5 1,600.00
Gas stove and tank 3,500.00 10 350.00
Water heater 1,850.00 3 616.67
Steamer 6,000.00 5 1,200.00
Oven and gas tank 10,000.00 10 1,000.00
Total 6,683.66

3. Furnitures and Fixtures

Item Description Project Cost Estimated Life Span Depreciation

(Years) Cost
Dining Table for 4 7,200.00 8 900.00
Dining Table for 2 2,400.00 8 300.00
Dining chair 18,000.00 8 2,250.00
Cashier table 1,200.00 8 150.00
Cashier chair 600.00 8 75.00
Bar stools 12,000.00 8 1,500.00
Total 5,175.00

4. Kitchen and Dining Utensils

Item Description Project Cost Estimated Life Span Depreciation

(Years) Cost
Carajay 1,000.00 4 250.00
Ladles 500.00 3 166.70
Stock pot 1,350.00 3 450.00
Food tong 125.00 3 41.67
Chopping board 555.00 3 185.00
Kitchen knives 1,500.00 3 500.00
Butchering Knife 2,400.00 3 800.00
Sharpening stone 125.00 3 41.70
Electric Beater 2,450.00 3 816.67
Basin 345.00 3 115.00
Can opener 250.00 3 83.33
Bottle opener 100.00 3 33.33
Glass rack 350.00 3 116.70
Dish rack 700.00 3 233.33
Strainer 120.00 3 40.00
Measuring cups 120.00 3 40.00
Measuring spoons 120.00 3 40.00
Water jug 350.00 3 116.70
Mixing bowl 195.00 3 65.00
Ice cream scoop 300.00 3 100.00
Water dispenser 5,700.00 3 1,900.00
Water gallon 585.00 3 195.00
Thermal jug 855.00 3 285.00

Serving tray 575.00 3 191.70

Dinner plate 1332.00 3 444.00
Spoon 576.00 3 192.00
Fork 576.00 3 192.00
Drinking glass 432.00 3 144.00
Cup and saucer 314.00 3 104.70
Serving bowl 576.00 3 192.00
Teaspoon 338.00 3 112.70
Serving spoon 300.00 3 100.00
Mug 648.00 3 216.00
Charcoal griller 1,200.00 3 400.00
Wine glass 1,200.00 3 400.00
Total 9,304.23

5. Other Necessities

Item Description Project Cost Estimated Life Span Depreciation

(Years) Cost
Ceiling fan 5,000.00 5 1,000.00
TV 12,400.00 5 2,480.00
Fire Extinguisher 7,000.00 3 2,333.33
Logo/Signage 5,000.00 5 1,000.00
DVD Player 2,000.00 5 400.00
Sound System 75,000.00 10 7,500.00
Total 14,713.00

6. Building Renovation

Unit Project Cost Estimated Life Span Depreciation

(Years) Cost
Building Renovation 280,000 10 28,000

7. Summary of Depreciation Cost

Item Depreciation Cost

Office Equipment 6,268.33
Kitchen Equipment 6,683.66
Furniture and Fixtures 5,175.00
Kitchen and Dining Utensils 9,304.23
Other Necessities 14,713.33
Building Renovation 28,000.00
Total 70,144.55

C. Project Estimate

Fixed Assets Cost

Office Equipment 36,080.00
Kitchen Equipment 63,800.00
Furnitures and Fixtures 41,400.00
Kitchen and Dining Utensils 28,162.00
Other Necessities 102,400.00
Building Renovation 280,000
Total Fixed Assets 551,842.00

Operating Expenses Cost

Salaries and Wages 458,640.00
SSS Contribution 31,800.00
PHIC Contribution 9,450.00
Employees’ Meal Allowance 98,550.00
General Supplies 7,472.00
Office Supplies 1,715.00
License and Permits 3,500.00
Water Expenses 6,000.00
Power Consumption 84,000.00
Advertising and Promotion 3,000.00
Mobile Phone Load 6,000.00
Place Rental 144,000.00
Depreciation Expense 70,144.55
Total Operating Expenses 924,271.55
Contingency Fund 15,000
Total Project Cost 1,491,113.55

D. Major Assumptions

1. All receipts of the day will be intact by the following day.

2. Estimated sales will be based on the sales forecast on the marketing study,

and will increase 5% annually.

3. Operating Expenses:

a. It is assumed that the cost of purchased will be 50% of the total sales and is expected

to increase annually.

b. Employees’ salaries and wages will increase 5% annually after 3 years.

c. General supplies will increase 5% annually.

d. Office supplies will increase 5% annually.

e. Income tax will be 10% (as stated on SEC. 191-A of the National Internal Revenue

Code) of the operating income.

f. Sales will be expected to increase 5% annually.

g. Advertising will increase 5% after 3 years.

h. All stocks will be assumed to be consumed at the end of the year.

i. Petty cash fund will be P2,000 per month.

j. Permit and license will be expected to increase in 3 years.

k. Loss and breakage is constant yearly.

l. Rental will increase 5% after 3 years.

m. Power provider is expected to increase 2% yearly.

n. Water consumption is expected to increase 2% yearly.

o. Depreciation will increase annually with 1%.

p. SSS and PHIC contribution will be expected to increase in 3 years as the salaries of

the employees increased.


q. Employees’ meal allowance will be P98,550.00 annually.

r. Mobile phone expenses will be P6,000.00 per year.

E. Financial Analysis

a. Test Probability

1. Net Profit Margin =

Year Net Income Annual Sale Net Profile

2015 1,781,701.61 2,903,940.00 61.35%
2016 1,870,786.68 3,049,137.00 61.35%
2017 1,964,326.01 3,201,593.85 61.35%
2018 2,062,542.31 3,361,673.54 61.35%
2019 2,165,676.43 3,529,757.22 61.35%

2. Operating Profit Margin =

Year Net Income Annual Sale Net Profile

2015 1,979,668.45 2,903,940.00 68.17%
2016 2,078,651.87 3,049,137.00 68.17%
2017 2,182,584.46 3,201,593.85 68.17%
2018 2,291,713.68 3,361,673.54 68.17%
2019 2,406,299.37 3,529,757.22 68.17%

b. Test of Capital Investment

Average Net Income

1. Average Rate of Return =

Total Projected Cost


= 146.72%

Total Projected Income

2. Pay Back Period =
Average Net Income


= 0.68 years or 8 months and 26 days