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Chapter I INTRODUCTION Nowadays, people are so active and mobile. The lifestyle of the youth is to have their meals in a fast food chains. The demand for business in food industry is so fast and customers are given several choices. Because of this business trend, our group decided to open a restaurant that will give excellent service and good food for one target customers. We want to provide a convenient place, so we chose Nuvali, Laguna as our location, because there are lots of Chinese residences there.

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The establishment of Kimchi-ai restaurant will be created not only for profit but also help encourage number of people connected to the business enterprise as well as the community at large. Today, as we had observed, food house is considered as one of the most popular source of profit. The target market or the costumer is not limited to the people that surround the food house but also to the people from other places who are passing by and to the residents who are near the area.

At the same time if the product has a good quality, delicious and affordable price, and people will tend to recommend it to their relatives and friends. Though this business can stand for itself, this study aims to analyze the feasibility of establishing a Kimchi-ai Restaurant located at Nuvali, Sta. Rosa Laguna. Statement of the Problem A. Marketing Aspect 1. What are the factors considered in pricing? 2. How can we give the costumer good service? 3. How does distribution Process conduct? 4. How can we promote products all over the Philippines? . What is Market General Description? 6. How Does Historical Demand, Historical Supply Conduct? B. Operational Aspect 1. What particular product will this restaurant sell? 2. What specific time span does this project cover? 3. What are some materials needed in making foods? 4. How can we keep our customers trust us? 5. Where is the project located? C. Organizational and Management Aspect 1. Who will manage this restaurant? 2. What are the qualifications of personnel that are going to run the business? 3.

How the management will run the business? 4. How many employees do the establishment needed? 5. What form of organization will you used in your project? 6. What are the fridge benefits provided by the business? 7. What is the compensation scheme given to employees? D. Financial Aspect 1. What is initial capital requirement? 2. What will be the sources of the capital? 3. What will be the profitability of the business in terms of return on investment? 4. Will the project be financially viable? Objective of the study

The objective of our study is To determine the owners of the business; To give the costumer good service; To know how distribution Process conduct; To promote products all over the Philippines; To know How Historical Demand, Historical Supply Conduct; To know what Market General Description is; To determine the kind of dish of restaurant; To know what specific time span does this project cover; To know what are some materials needed in making foods; To know where is the project located; To keep our customers trust us; To determine the qualifications of personnel that are going to run the business; To determine the management will run the business; To determine the numbers of employees the establishment needed; To determine the form of organization will used in our project; To determine the fridge benefits provided by the business; To determine the compensation scheme given to employees; To determine; To determine the factor considered in pricing which to provide excellent food and service, accessible location, very reasonable price; and To determine the initial capital of (P 900,000) from partnership contribution; To determine the sources of the capital; To determine the profitability of the business in terms of return on investment; and To determine if the project be financially viable. Significance of the study Through this project study, we can determine how and who will manage a certain restaurant. We will be able to know the particular widely eaten food and the principles and values in producing it will serve as a basis or will help us obtain consideration to its product quality, selling price as well as analysis of its direct competitors. It maybe in analyzing effective management process, profit planning, and the contribution of the industry to the economy.

This will be beneficial to the public like a students, employees and resident s as a whole because they may be updated on the current development and trends of the food industry and their prospects for growth in the years to come. Scope and delimitation Our Kimchi-ai Restaurant is located at Nuvali Sta. Rosa Laguna. Our restaurant has 100 square meter areas. This site is quite convenient for our potential customers because it is surrounded by schools, food markets, church and other establishment which could be our target markets. And a lot of Chinese people live in the same place so that is a really suitable place to open the restaurants. Methodology The realization of this project would seem too impossible without the use of some research methods and techniques, which are fundamental in the process of data accumulation.

During the entire study, the researchers made use of the multi stage cluster sampling which is used when the population is so big and the geographical area of the research is large, the general procedure is to divide the area of population into cluster or blocks or barangay especially in parts where theoretical explanations are needed. Survey Questionnaire: Name: ___________________________________ Age: ____________________________________ Nationality: ______________________________ Gender: _________________________________ Kindly take just a little time to answer few easy questions. Thank you! 1. Do you eat at Chinese Restaurant? Yes _______ No ________ 2. How often do you eat at Chinese Restaurant? Every day: ____________ Once A week: _________ Twice a Month: ________ Once a Month: _________ Every other month: ______ 3.

Which type of food service do you prefer? Yes No Self-Service ________ __________ Staff-attended ________ __________ Smorgas board ________ __________ 4. Which Chinese Foods do you like the most? Noodles: _______________ Topping Rice: ___________ Hot Pot: ________________ Dishes: ________________ Soups: _________________ 5. What tastes do you like the most? Sweet: __________ Salty: ___________ Sour: ___________ Spicy: __________ 6. Have you eaten in the Chinese Restaurants given below? Wan Tsa Tea House: _______ Hap Chan Restaurant: ______ 7. How much do you spend per occasion? P500: __________ P1, 500: _______ P2, 000: ________ 8.

Are you willing to eat at a new restaurant offering a Chinese and Korean Dishes Combined? Yes: __________ No: ____________ Comments/ Suggestion: ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________ Thank you for your Time. Result of Survey Questionnaire Survey Questionnaire is important in making research to evaluate the demand of the respondents. After the distributions of the survey questionnaire 100% of the questionnaire return. Here is the result of the survey:

Question no. 1 Do you eat at Chinese restaurants? Yes 75 No 25 Factors 75% Question no. 2 How often do you eat at Chinese restaurants? Factors Everyday 5 5% Once a week33 33% Twice a month1010% Once a month4747% Every other month5 5% Question no. 3 Which type of food service do you prefer? YesNoFactors Self-service595 5% Staff-attended7030 70% Smorgas board2575 25% Question no. 4 Which Chinese foods do you like most? Factors Noodles15 15% Topping rice5 5% Hot pot25 25% Dishes41 41% Soups14 14% Question no. 5 What taste do you like? Factor Sweet25 25% Salty23 23% Sour10 10% Spicy42 42% Question no. 6

Have you eaten in the Chinese restaurants given below? Factor Wan Tsa Tea house 60 60% Hap Chan Restaurant 30 30% Question no. 7 How much do you spend per occasion? Factor P50033 33% P1, 50040 40% P2, 00027 27% Question no. 8 Are you willing to eat at a new restaurant offering Chinese and Korean dishes combined? Yes20 No8 Factors20% Review of Related Literature Local History In the Philippines, restaurants continue to flourish as several people are discovering the varied cuisines being offered by these eating places. Beside of the delectable menu they serve, these restaurants also offer excellent services and ambience that makes one’s meal truly worthwhile.

The restaurant industry is one of the few remaining fields which an individual can enter with a relatively small capital investment and by ability and hard work can achieve ultimate success. To boost the development of the industry, the government of the Philippines enacted its hand book on “Rules and Regulations to govern the Business Operation of All Restaurants in the Philippines”. The acts states that it should provide measures for controlling and regulating the standard of service and amenities for tourist in hotel and restaurant. The main objective is to uplift the standard of the industry. It also provides guidelines on the registration licensing, regulating health and hygiene conditions and other counter measures. On the whole, if a person is going to operate a restaurant.

It will not only give profit but also contribute to the over-all economic development of the country the image of the country, and the growth of the flourishing tourism industry. Foreign History An old Chinese saying states “Good tools are prerequisite to the successful execution of a job”. Chinese cuisine is famous the world over various cooking of delicious dishes. Generally Speaking, Chinese families have more kitchen utensils than other nationalities, because the Chinese people consider “eating” a kind of art. The various utensils of different size have special purposes of their own. They are like the tools of a painter; only with them can a fine work be done. The utensils for cooking Chinese cuisine include broilers, pans, of different sizes, steam baskets made from bamboo and chopping block.

Besides, aluminum chafing dish is essential to keep the soup warm in winter. Chinese cuisine is not only delicious but also pleasing to eyes. When many foreigners tasted Chinese cuisines for the first time, watching the dishes arranged like a painting, they could not help asking “Are they for appreciation or for eating? ” The Chinese cuisine is for the appreciation of the eyes and mouth when preparing Chinese dishes, emphasis are placed on good taste and adequate use of oven to ensure that the food is local literature. Definition of terms Bamboo shoots- There are several kinds of bamboo shoots available in the West-all in cans only, which is a pity since they lose much of their crispy texture and flavor.

Try to obtain Winter bamboo shoots; they are dug up from the cracked earth before the shoots grow to any great length or size, therefore they are extra tender and tasty. Spring bamboo shoots are much larger; they sometimes may reach several feet in length and 3-4 in (7. 5-10cm) in diameter. Once the can is opened, the shoots may be kept in a covered jar of water in the refrigerator for several days. Braised bamboo shoots in cans should be eaten cold without any further cooking. Bean-curd (tofu)- Made from soaked yellow soy beans ground with water. A coagulant is added after some of the water is strained through muslin cloth, causing the ground beans to curdle and become firm bean-curd.

Usually sold in squares about 21/2 X 21/2 in (6X6cm), ? in (2cm) thick. Will keep a few days if submerged in water in a container and placed in the coldest part of refrigerator. Dried bean-curd skin is usually sold either in thick sticks or thin sheets. It should be soaked in cold water overnight or in warm water for at least an hour before use. Bean sauce- Sometimes called ‘Crushed bean sauce’, this thick sauce is made from black or yellow beans, flour and salt. It is sold in tins and, once opened, must be transferred into a screw-top jar and then it will keep in a refrigerator for months. (N. B. Black bean sauce is very salty, while yellow bean sauce is sweeter with sugar added. )

Bean sprouts- Two kinds are available: yellow soy bean sprouts, only to be found in Chinese provision stores, and green mung bean sprouts, which can be bought from almost every large city supermarket. (Never use canned bean sprouts; they do not have the crunchy texture which is the main characteristics of bean sprouts. ) They can be kept in the refrigerator for two or three days if bought fresh. Cellophane or transparent noodles- Made from mung beans. They are sold in dried form, tied into bundles weighing from 2 oz (50g) to 1lb (0. 5kg). Soak in warm water for five minutes before use. Chili paste- Also called ‘Chili puree’. It made of chili, soy bean, salt, sugar and flour. Sold in jars and will keep almost indefinitely. Chili sauce-Hot, red sauce made from chilis, vinegar, plums, salt and sesame.

Chinese cabbage- There are innumerable varieties of cabbage grown in China, of which only two or three types are available in the West. The one most commonly seen is known as celery cabbage or Chinese leaves (Brassica pekinensis), it has a pale green color and tightly wrapped elongated head, two-thirds of the vegetable is stem which has a crunchy texture; another variety has a shorter and fatter head with curlier, pale yellow leaves. Then there is the dark green-leaved variety, also with white stems (Brassica chinensis); and the bright green-leaved variety with pale green stems, sometimes with a sprig of yellow flower in the center (Brassica parachinensis) which is very much prized by the Chinese. These last two varieties are sold only in Chinese stores.

Chinese dried mushrooms- There are two main types of Chinese mushrooms: those that grow on trees, known as Fragrant or Winter Mushrooms (Lentinus edodes); and those cultivated on a bed of straw, known as Straw Mushrooms (Volvariella volvacea). Fragrant of Winter Mushrooms are sold dried; they are used in many dishes as a complementary vegetable for their flavor and aroma. Soak in warm water for 20-30 minutes, squeeze dry and discard the hard stalks before use. Straw Mushrooms are available in cans, they are completely different in texture and flavor. The western varieties of common or field mushrooms (Agaricus bisporus or Psalliota campestris) can be used as substitutes. Five-spice powder- A mixture of anise seed, fennel, cloves, cinnamon and pepper. It is very strongly piquant, so use a very small amount each time.

It will keep for years if stored in a tightly covered container. Fresh coriander- Sometimes known as Chinese parsley, this plant is available in oriental stores or in Italian grocers where it is called cilantro. Ginger- The roots of the ginger plant, or zingiber officinal to use its scientific name, are an indispensable ingredient in both Chinese and Indian cuisine. Thought to have originated in South-east Asia, the plant’s name, ”zingiber” means horn-shaped, after the irregular shapes on the rhizomes or roots. Valued for its clean, sharp flavor, ginger is used in soups, stir-fries, and marinades. It is especially good with seafood, as it can cover up strong fish odors.

Green hot chili- Will keep fresh for a week or two in the vegetable compartment of the refrigerator in a plastic bag. Green seaweed- This mosslike seaweed is dark green in color. It is sold dried, in wads or n matted chips. When deep-fried in oil, it is crisp and has a toasted fragrance. Dried green cabbage leaves can be used as a substitute. Hoi Sin Sauce- Also known as barbeque sauce. Made from soy beans, sugar, flour, vinegar, salt, garlic, chili and sesame. Kao Liang Liqueur- A spirit made from sorghum and millet. Brandy or vodka can be substituted. Oyster sauce: A thick sauce made from oysters and soy sauce. Sold in bootle, it will keep in the refrigerator indefinitely.

Red bean curd sauce- A thick sauce made from fermented bean curd and salt. Sold in cans or jars, will keep indefinitely. Rice- Rice is main part of the dish because rice is used to serve the main dish because use it to accent most of the food. Rice wine- Also known as Shaoxing wine, made from glutinous rice. Sake or pale (medium or dry) sherry can be substituted. Salted black beans- Whole bean sauce, very salty. Scallions- Also known as spring onions. Sesame seed oil- Sold in bottles. Widely, used in China as a garnish rather than for cooking. The refined yellow sesame oil sold in Middle Eastern stores has fewer flavors and therefore is not a very satisfactory substitute.

A few words must be said here regarding the types of oil used in Chinese cooking. The most commonly used in China are vegetable oils such as soy bean, peanut or rape seed oils. The Chinese never use butter or meat dripping, although lard and chicken fat are used in some in some regional cooking, notably in the Eastern School. Sichuan preserved vegetable- This is a specialty of Sichuan province. It is the root of a special variety of the mustard green pickled in salt and hot chili. Sold in cans. Once opened it can be stored in a tightly sealed jar in the refrigerator for months. Sichuan peppercorns- Reddish-brown peppercorns, much stronger than either black or white peppercorns of the West. Usually sold in plastic bags.

Will keep indefinitely in a tightly sealed container. Soy sauce- Invented by the Chinese approximately 3,000 years ago, soy sauce is made from fermented soybeans, wheat flour, water, and salt. The two main types of soy sauce are light and dark. As the name implies, light soy sauce is lighter in color, and also sweeter than dark soy sauce. In Chinese cooking, it is used more often than dark soy-always use light soy in a recipe unless dark is especially called for. Aged for a longer period of time, dark soy sauce is thicker and blacker in color. It is also less salty than light soy. It is used in certain recipes to add color, and as a dipping sauce.

Tiger lily or golden needles- the buds of a special type of lily. Solid in dried form, should be soaked in warm water for 10-20 minutes and the hard seems removed. They are often used in combination with wooden ears. Tomato sauce- quite different from western tomato ketchup. Italian tomato paste may be substituted when fresh tomatoes are not available. Water chestnuts- strictly speaking, water chestnuts do not belong to the chestnut family; they are the roots of a vegetable. Also known as Horse’s hoof in China on account of their appearance before the skin is peeled off. They are available fresh or in cans. Canned water chestnuts retain only part of the texture, and even less of the flavor of fresh ones.

Will keep for about a month in a refrigerator in a covered jar. Water chestnut powder- the flour made from water chestnuts. Cornstarch is a good substitute. Wooden ears- also known as Clod Ears, they are dried tree fungus. Sold in dried form, should be soaked in warm water for 20 minutes; discard any hard stems and rinse in fresh water before use. They have a crunchy texture and a mild but subtle flavor. According to the Chinese, wooden ears contain protein, calcium, phosphorus, iron and carbohydrates, and one particular brand from Hubei province claims on the packet that is ‘possesses such effect as cleaning gastro enteric organs in human body’

Chopsticks- Chinese simply choose chopstick as their tableware rather than knife and fork since Chinese people, under cultivation of Confucianism, consider knife and fork bearing sort of violence, like cold weapons. However chopsticks reflect gentleness and benevolence, the main moral teaching of Confucianism. Chinese food seems to taste better eaten with chopsticks which are the special utensils Chinese use to dine. It will be an awkward experience for foreigners to use chopsticks to have meal. Fortunately, learning to eat with it is not difficult. Chapter V FINANCIAL ASPECTS Capital Requirements The following methods are used to analyze the capital budgeting: A) Payback Period

The payback period will provide the number of years required to return the original investment. B) Net Present Value It is the difference between the present value of the future cash inflows and the present value of the project’s invested capital. C) Internal Rate of Return The rate that equates the present value of cash inflows with the amount of the investment that is present value equals zero. Sources of Financing The proposed project will be financed from equity contribution coming from the member of the group in the amount of P900,000. Basic Assumption The following assumptions were used in the preparation of the project’s financial statements:

A) Salaries and wages will be increased by 10% annually. B) Employees’ uniform is estimated to be P250 a dress. Two dresses will be given to 30 personnel. The expense will increase at the rate of 10% annually. C) Rental expense is placed as P360, 000 annually with an annual increase of 10%. D) Parking lot rental expense is placed as P2, 000 per month with a yearly increase of 10%. E) License fee is about P500 a year; a yearly increase of 10% is assumed. F) Advertising and sales promotions are estimated to be P43, 000 per annum with an annual increase of 10%. G) Repair and maintenance are assumed to be P24, 000 annually with an annual increase of 10%. Operating Expense Description |1st year |2nd year |3rd year |4th year |5th year | |Salaries and Wages |P1, 642, 602 |P1, 807, 197 |P1, 987, 916 |P2, 186, 708 |P2, 405, 379 | |Uniform |15, 000 |16, 500 |18, 150 |19, 965 |27, 962 | |Rental |360, 000 |39, 600 |435, 600 |479, 160 |527, 076 | |Parking Lot Rental |24, 000 |26, 400 |29, 040 |31, 944 |35, 138 | |License Fee |500 |550 |605 |666 |732 | |Advertising and Sales |43, 000 |47, 300 |52, 030 |57, 233 |65, 956 | |Promotion | | | | | | |Repair & Maintenance |24, 000 |26, 400 |29, 040 |31, 944 |35, 138 | |Supply |21, 000 |23, 100 |25, 410 |27, 951 |30, 746 | |Utilities |165, 000 |181, 500 |199, 650 |219, 615 |241, 575 | |Depreciation |64, 000 |64, 000 |64, 000 |64, 000 |64, 000 | |Amortization |24, 000 |24, 000 |24, 000 |24, 000 |24, 000 | |Insurance |6, 100 |6, 710 |3, 812 |4, 193 |4, 612 | |Breakage |3, 150 |3, 464 |2, 100 |3, 300 |4, 612 | |Miscellaneous |10, 000 |11, 000 |12, 100 |13, 300 |14, 641 | |Total |P2, 402, 656 |P2, 634, 122 |P2, 888, 734 |P3, 168, 807 |P3, 476, 888 | Financial Statements 1.

Projected income statement (Table F-1) the proposed Restaurant is expected to generate a net income of P 104,978 in the first year of operation, P 316,856 in the second, P 492,179 in the third , P 588,657 in the fourth , and P709,876 in the fifth year of operation. (table 1) shows the income statement projection for five years 2. Balance sheet (TableF-2) the total assets will increase from P900,000 in the first year to P1,436,374 in the fifth year of financial position of the proposed projected. 3. Cash flow statement (TableF-3) shows the projected cash flow statement. It reveals satisfactory cash position from year to year. Income Statement (Table F-1) Particular |1st year |2nd year |3rd year |4th year |5th year | |Sales Revenue |P 3, 888, 000 |P 4,675,968 |P 5,424,172 |P6,013,440 |P6, 690, 816 | |Cost of Sales |1, 360, 800 |1, 636, 589 |1, 898, 467 |2, 104, 704 |2, 341, 786 | |Gross Profit |2, 527, 200 |3, 039, 379 |3, 525, 725 |3, 908, 736 |4, 349, 030 | |Less: | | | | | | |Operating Expense |2, 402, 656 |2, 634, 122 |2, 888, 734 |3, 168, 807 |3, 476, 888 | |Operating Income 124, 544 |405 , 257 |636, 991 |739, 929 |872, 142 | |Less: |19, 566 |94, 700 |170, 122 |206,150 |252, 425 | |Income Tax | | | | | | | |————— |—————– |————— |—————- |————— | |Net Income |P104,978 |310, 558 |466, 869 |533, 779 |619, 718 | | |========== |========== |========= |========= | | |Add: | | | | | | |Interest Income |0 |6, 299 |25, 310 |54, 841 |90, 158 | |Net Income before |104, 978 |316, 856 |492, 179 |58, 620 |707, 876 | |Drawing | | | | | | |Less: |62, 987 |190, 114 |295, 307 |353, 172 |425, 925 | |Owner’s Drawing | | | | | | |Net Income after |————- |—————- |—————- |—————- |—————- | |Drawing |41, 991 |126, 743 |196, 872 |235, 448 |283, 950 | |(Deposit in the bank) |========= |========== |========= |========= |========= | Balance Sheet (Table F-2) |Particular |0 |1st Year |2nd Year 3rd Year |4thYear |5th Year | |Assets | | | | | | | | | | | | | | | |Current Assets: | | | | | | | | | | | | | | | |Cash on Hand: | | | | | | | | |346,000 |448,332 |604,105 |741,210 |809,604 |852,809 | |Bank deposits |0 |41,991 |126,743 |196,872 |235,448 |283,950 | |Inventory |0 |5,234 |6,295 |7,302 |8,095 |9,007 | |Rental |60,000 |60,000 |60,000 |60,000 |60,000 |60,000 | |Anvanced | | | | | | | |(deposit) | | | | | | | |Parking lot Rental |4,000 |4,000 |4,000 |4,000 |4,000 |4,000 | |advanced | | | | | | | |(deposit) | | | | | | | |Advanced Income |0 |0 |6,299 |31,609 |86,450 |176,608 | |Receivable | | | | | | | |Total Current Assets |410,000 |559,557 |807,442 |1,040,993 |1,203,597 |1,386,374 | |Fixed Assets |70,000 |70,000 |70,000 |70,000 |70,000 |70,000 | |Renovation | | | | | | |Delivery Van |100,000 |100,000 |100,000 |100,000 |100,000 |100,000 | |Equipment |100, 000 |100, 000 |100, 000 |100, 000 |100, 000 |100, 000 | |Furniture and Fixture|79, 000 |79, 000 |79, 000 |79, 000 |79, 000 |79, 000 | |Cutlery & Crockery |21, 000 |21, 000 |21, 000 |21, 000 |21, 000 |21, 000 | |Less Accumulated | | | | | | | |Depreciation |0 |(64, 000) |(128, 000) |(192, 000) |(256, 000) |(320, 000) | | |———— |———– |———– |———— |———— |———— | |Net |370, 000 |306, 000 |242, 000 |178, 000 |114, 000 |50, 000 | |Pre-Operating Expense| | | | | | | | |120, 000 |120, 000 |120, 000 |120, 000 |120, 000 |120, 000 | |Less | | | | | | | |Accumulated |0 |(24, 000) |(48, 000) |(72, 000) |(96, 000) |(120, 000) | |Depreciation | | | | | | | | |———— |———— |———— |————- |————- |————- | |Net |120, 000 |96, 000 |72, 000 |48, 000 |24, 000 |0 | | |———— |————- |———— |————- |————- |————–50, | |Total Fixed Asset |490, 000 |402, 000 |314, 000 |226, 000 |138, 000 |000 | |Total Assets |———– |———— ———— |———— |————- |————–1, | | |900, 000 |961, 551 |1, 121, 442 |1, 266, 993 |1, 341, 597 |436, 374 | | |======= |======= |======== |======== |======== |======== | |Liabilities and | | | | | | | |Owner’s Equity | | | | | | | | | | | | | | | |Liabilities | | | | | | | | | | | | | | | |Accrued Tax Payable | | | | | | | | |0 |19, 566 |94, 700 |170, 122 |206, 150 |252, 425 | |Owner’s Equity: | | | | | | | | | | | | | | | |Capital | | | | | | | | |900, 000 |900, 000 |900, 000 |900, 000 |900, 000 |900, 000 | |Total Income |0 |41, 991 |126, 743 |196, 872 |235, 448 |283, 950 | |Total Owner’s Equity |———— |———— |————– |————- |————– |———— | | |900, 000 |941, 991 |1, 026, 743 |1, 096, 872 |1, 135, 448 |1, 183, 950 | |Total Liability and |————- |————- |————- |————– |————- |———— | |Owner’s Equity |900, 000 |961, 557 |1, 121, 443 |1, 266, 994 |1, 341, 598 |1, 436, 375 | | |======= |======= |======== |======== |======== |======= | Cash Flow (Table F-3) Particulars |0 year |1st year |2nd year |3rd year |4th year |5th year | |Cash on hand |P0 |P346, 000 |P448, 332 |P604, 105 |P741, 210 |P809, 604 | |Beginning Balance | | | | | | | |Add: |900, 000 |0 |0 |0 |0 |0 | |Capital | | | | | | | |Sales Revenue |0 |3, 888, 000 |4, 675, 968 |5, 424, 192 |6, 754, 650 |7, 500, 420 | |Total Cash Available|900, 000 |4, 234, 000 |5, 124, 300 |6, 028, 297 |6, 754, 650 |7, 500, 420 | |Less: | | | | | | | |Uses of Fund | | | | | | | |Pre-operating |120, 000 |0 |0 |0 |0 |0 | |Expense | | | | | | | |Rental Advanced |60, 000 |0 |0 |0 |0 |0 | |Parking Lot Rental |4, 000 |0 |0 |0 |0 |0 | |Advanced | | | | | | | |Renovation |70, 000 |0 0 |0 |0 |0 | |Delivery Van |100, 000 |0 |0 |0 |0 |0 | |Equipment |100, 000 |0 |0 |0 |0 |0 | |Furniture & Fixtures|79, 000 |0 |0 |0 |0 |0 | |Cutlery & Crockery |21, 000 |0 |0 |0 |0 |0 | | |———– |———— |————- |————– |————- |————– | |Purchases |0 |1, 366, 034 |1, 637, 650 |1, 899, 474 |2, 105, 497 |2, 342, 698 | |Operating Expense |0 |2, 314, 656 |2, 546, 122 |2, 800, 734 |3, 080, 807 |3, 388, 888 | |Bank Deposits |0 |41, 991 |126, 743 |196, 872 |235, 448 |283, 950 | |Owner’s Drawing |0 |62, 987 |190, 144 |295, 307 |353, 172 |425, 925 | |Income Tax |0 |0 |19, 566 |94, 700 |170, 122 |206, 150 | |Total Use of Fund |———— |————– |————— |————- |———— |————– | | |554, 000 |3, 758, 068 |4, 520, 195 |5, 287, 087 |5, 945, 046 |6, 647, 611 | |Cash on Hand Ending |———— |————- |————- |————– |————– |————– | |Balance |P346, 000 |P448, 332 |P604, 105 |P741, 210 |P809, 604 |P852, 809 | | |======= |======== |======== |======== |======== |======= | Financial Ratio

From the financial statement, several financial ratios were computed to test the projects viability and resources utilization to determine how profitable the project is. Tables F-1 to table F-3 contains selected liquidity and profitability ratios for the proposed restaurant. It is noteworthy that the liquidity ratios of the restaurants indicate that the restaurant is expected to be very liquid and capable of servicing its maturing obligations. The profitability ratios, on the other hand, indicate the business’ level of profits can be expected to remain high, and thus lead to the attainment of the proponent’s profit objectives. Evaluation of the Project Study Net Present Value Year |Net Income |Non Cash Items |Cash Inflows |Discounted factor |Present Value | | | | | |(35%) | | |1st |104,978 |88,000 |192,978 |0. 741 |142,997 | |2nd |316,856 |88,000 |404,856 |0. 549 |222,266 | |3rd |492,179 |88,000 |520,179 |0. 406 |235,553 | |4th |588,620 |88,000 |676,620 |0. 01 |203,663 | |5th |709,876 |88,000 |797,876 |0. 223 |177,926 | Payback Period Total capital investment = 900, 000 |Years |Net Income |Non Cash Item |Cash Inflow |Investment | |0 | | | |Balance | | | | | |900,000 | |1st 104,978 |88,000 |192,978 |707,022 | |2nd |316,856 |88,000 |404,856 |302,166 | |3rd |492,179 |88,000 |580,179 |(278,013) | |4th |588,620 |88,000 |676,620 | | |5th |709,876 |88,000 |797,876 | | Return of the Investment |Years |Net income before |Capital Investment (in pesos) |Return of investment | | |drawing (in pesos) | |(ROI) | |1st |104, 978 |900,000 |11. 6% | |2nd |316,856 |900,000 |35. 21% | |3rd |492,179 |900,000 |54. 69% | |4th |588,620 |900,000 |65. 40% | |5th |709,876 |900,000 |78. 88% | | |Average ROI | |49. 17% | Acknowledgement

There are things that we can do by ourselves but there are much more things that we can accomplish through the help of other people. This research is three and the researchers are indebted to a good number of people for their valuable assistance in many ways. We, researchers wish to express our profound gratitude and sincere appreciation to our dear professor, Professor Enrique Rodrigo, for his understanding, supportive advice and reliable suggestions. I would like to extend our heartfelt appreciation to Mr. Chen Hang, who has been involved with this study in sharing his valuable and precious time to make this study possible, as well as encouragement in pursuing this study, without which this study would not have been accomplished.

Special thanks to all our friends who have in one or another way contributed to the success of this work. Above all, we wish to express our deep thanks and gratitude to God almighty for all his blessing, protection and divine assistance to acquire educational knowledge and the life and good health he spared us throughout our studies in feasibility studies a possibility and success. Chapter VI POTENTIAL PROBLEM Risk is inherent in business. A feasibility study simply may reduce the incidence of failure. The following problems may arise in the future. Unexpected competition If this venture proves profitable, other investors would be motivated to engage in this business. This will give rise to competition.

In order to maintain the project’s profitability, the management should make the food attractive and ore delicious, and prove that the foods served are sanitary. Quality of food The most important for the restaurant is the quality of food because from where, the restaurant will be known in the public also, the restaurant must maintain the good raw materials, supply the good quality of the food and taste of the food. Pilferage and theft of the food This is one case that will come up inside the ware house or in other sections when they are seldom checked for internal control. This may be done by the employees themselves. It this happens frequently, it will result in big losses. To protect this case, the management should strictly and immediately check from one section to the other.

When the restaurant buys new merchandise, the used merchandise should be checked and inspected. Pilferage of china wares by customers This also one of the most common problems of restaurant operations there are some customers who, for one reason or other, steal such things as spoons, forks, caps, saucers, etc. In view of the prevailing costs of these items, losses should be kept to a minimum. What can be done in this regard is to make it the responsibility of the waiters to retrieve all utensils being used by the customers as soon as possible. Besides, they will be given the responsibility of keeping a close look for those people. Breakage of china wares An income instance, breakages occurs due to carelessness of personnel.

As china ware very expensive, breakages can result also in substantial losses. As a remedy, personnel will be given training on the proper handling of these items. If however, despite of this precautionary measure there will still be breakages, the guilty party will be required to pay the cost of what he broke. Breakdown of major equipments Breakdown of major equipment like air-conditioning units, freezers, refrigerators and the like could pose a potential problem for the management of the proposed restaurant. In this case, the management must provide maintenance and regular check-up on the service ability of these equipments. Increase in demand

In the initial years the demands of restaurant is increasingly slow but the demand is demand is expected to gradually increase this increase in demand will ultimately result in more customers w/c might become a problem if they are not properly hosted. In order to overcome this potential problem, the management of the propose restaurant will give are consideration to the training of employees who should be able to handle any additional burden. Employee problem This is a common problem encountered by this kind of business because it refers to the relationship between employee and owners but the research presents the following solution: 1. Make contract w/ the employees for at least one year work. 2. Threat them like family member 3. Give them better benefits than your competitors. Economic conditions

The unstable economical condition always worry the investors because the inflation, depreciating value of pesos and different amendment in and regulation always affect the purchasing power of clients. But since, the market consist of type a,b,c mostly and d, partially, w/c does not suffer much doing inflation as compared to the other business . Change of chief cook Because of the high competition, it may be possible that any new or old competitors will pick the trump card, meaning to say the chief cook because he always plays an important part in every food business. So first, research suggests that special attention should be given to chief cook.

But case he leaves, the job again will be to look for a good cook. The other cooks who work w/ chief cook will be given a chance to show their potential and skills, otherwise it will be a drawback for restaurant. Chapter VII SOCIAL DESIRABILITY Businesses are operated to earn profit. In this business we do not only get the profit but think that it will benefit the people or the government. This study was conducted not only to prove the viability of the proposed project but also to develop and prepares feasibility study in the context of development. The thrust of the proposed project will contribute socio-economic benefits to society. 1. Solution of unemployment problem a.

The proposed venture is to be operated by 30 workers with an expected increase in sales more workers will have to be recruited there by generating continuous employment that is helpful in reducing the problem of unemployment in the country. b. Employment improves a person’s standard living. 2. Governments revenues due to taxes a. The restaurant will pay taxes to the government so that it will contribute to the government’s source of income. b. The taxes paid by all these restaurants will be great help- in boosting the country economically. The restaurant is one of the vita cogs in the preservation of Philippine economy as it becomes one of weapons against inflation. 3. Convenience of the public a.

The proposed project will provide Chinese food to all income groups customers 4. Related industries a. This project will create new market for a domestic supplier of raw material. It will develop a new or help to develop a new service of supply for existing or potential industrial consumers and thus induce new investments along the lines linked to it. For instance, this project can create new market for domestic supplier of raw food stuffs and ingredients required by its process. This is termed as back work “linkage” effect 5. Closer relationship a. The Chinese restaurant will serve as the bridge that would narrow the gap between the Filipino and Chinese communities.

It would make for much closer ties between the Philippines and china. other 6. The knowledge that will be earned by the readers of this feasibility is not to be overlooked. Any person who wants to invest in the restaurant business but does not have enough knowledge about this business, this proposed study will help him. Hence, this will create sufficient awareness regarding restaurant operation Chapter VIII FINDINGS AND RECOMMENDATIONS This chapter presents the findings, conclusions and recommendation drawn from the extensive study conducted by the researcher. Findings 1. Organization and Management Aspects The proposed Chinese restaurant shall be implemented through a single proprietorship type of business.

This is rather the simplest and easiest type of establish on the part of the proponent. The functional type of structure should be chosen over the other types because the proposed business is only small one and the personnel complement required to make it functional is also small. There should be 30 personnel to be needed to manage the business. This number includes the General Manager down to the Helpers/Busboys/Janitors. Certain factors should be considered in assigning the compensation of every personnel. The compensation should commensurate with the efforts and expected output to be expected from each position. Compensation should commensurate with also the qualifications for each position.

The business establishment should comply with all the laws especially those that provide benefits and protection for labor. 2. Marketing Aspects The information gathered from the Market Research, shows that there are concrete indicators of a big market for Chinese restaurants. Some respondents said that they prefer to entertain their visitors in Chinese restaurants. So, even if there are already the same types of business existing in the Navali are, the researcher plans to pursue this kind of business. The demand is very evident among the population of the area and the tourists of different nationalities who are used to frequently visit the restaurants for their lunch needs and for more leisure oriented eating/occasions.

The derived figures show that the demand gap is so high and it will be expected to increase along with the increase in population. On the other hand, supply for the competitors will also increase with the increase in occupancy rates but they do not have a plan to expand their venture because of limited space available. The proposed venture will take the market share in the first year. To boost the sale of a restaurant different marketing strategies should be adopted including distinctive atmosphere, the traditional food will be provided to their guest. Quality of food and services, variety of food and sound promotional policies will be adopted before and during the operating stage. 3.

Production/Technical Aspects The proposed Chinese Restaurant will be located at Navali Laguna with the propose name Kimchi-ai. This area is busy area center of business with numerous office, jewelry store, hotels, bank branches, and a first run movie house. The location at China town also attracts many visitors and tourist. The total area of the restaurant comprises 201 square meters. It has a total sitting capacity of 96 people. Operational process starts with the procurement, receiving and storing of food. Then, it will proceed to the preparing, cooking and catering of food. The sales estimated for the first year of operation will be P 3,888,000. Conclusion

Considering that the profitability analysis conducted on the project’s projected financial statement yield positive results; and considering further, that the financial ratio analysis conducted on the project indicates that the business can be financially be sound, we can conclude that the proposed project involving the setting up a Chinese Restaurant in Novali Laguna is viable proposition. Recommendation Base from the study of four functional and areas and after discussing all the problems of the feasibility study and from the financial stand point, it is reflected that the project appears to be financially viable, profitable and technically feasible. The competition from other businesses could be face by protecting the good quality of the product, especially the taste of the food. So, it appears that it will have product quality and, indirectly, it cannot be weakened by competition.

Therefore, the project is recommended fro implementation. Chapter IX SUMMARY OF THE STUDY Summary The overall objective of this project feasibility study is to determine whether it is feasible and viable to establish and operate Chinese restaurant in Nuvali Laguna. The researchers Methods use in the study are the Descriptive and Analytical. Both primary and secondary data were used for the study. Structured questionnaire was distributed to various respondents of the target market as well as for the restaurant operators. Secondary data includes the data from many agencies and libraries, Annual reports and monthly statistical report from the government agencies.

The feasibility of the proposed project depends on the four functional areas and these areas seek the answers of the following problems: 1. Organization and Management Aspects 1. What form of business organization should be best suited to operate the proposed business? 2. What type of organizational structure should be set up to effectively manage the business? 3. How many personnel are needed to effectively manage the business? 4. What should be the requirements, qualification standards of the personnel vis-a-vis their duties and responsibilities? 5. What compensation scheme should the business establishment implement? 2. Marketing Aspects a.

Is there a substantial demand for the service/product to be offered by the proposed        business? b. What is the current demand and supply position of Chinese restaurants in that area? c. What is the production and supply (sales) schedule of the proposed project? d. What strategy should be adopted to support marketing operations of the project? 3. Production/Technical Aspects a. Is the proposed location of the restaurant an ideal place? b. What is the capacity of the proposed restaurant? c. What equipments/facilities are required to make the proposed business functional? d. What kind of layout is suitable for this restaurant? 4. Financial Aspects a.

What is the capital requirement of the project? b. How will the proposed business be financed? c. What are the financial statements and different ratios of the proposed project? d. What is the payback period, net present value, internal rate of return and break-even? Sales of the proposed project? Chapter X REFERENCES(BIBLIOGRAPHY) Bibliography Freud, John E. Modern Elementary Statistics 7th edition Manila: JMC Press, Inc. Huebener , Paul O. Gourmet Table Service-Rochelle Park, New Jersey: Hayden Book Company, Inc. Angsico, Lina G. “Comparative Study of Three Medium Sized Cafeteria in Manila” Ateneo de Manila University, 1982. Cena, Milagros. “A Collegiate Restaurant. Philippine Christian University, 1985. Hussain, Muhammad. “A feasibility study of establishing a seafood restaurant at Boat Basin, Karachi Pakistan” Philippine Christian University, 1989. Veryano, Oscar Torenzo. “ A Feasibility Study on EstablishingEstablishment of Padaga Food at Kabayoron Baru,South Jakarta, Indonesia”. Philippine Christian University, 1988. Chapter XI CURICULUM VITAE OF THE RESEARCHER A. PERSONAL INFORMATION NAME: Kathrina Mae C. Dumaran NATIONALITY: Filipino CIVIL STATUS: Single DATE OF BIRTH: September 11, 1992 PLACE OF BIRTH: Malolos, Bulacan ADDRESS: Blk. 7 Lot 3 Don Carlos Village Pasay City B. EDUCATIONAL ATTAINMENT

College: Philippine Christian University High School: Baclaran National High School Elementary: San Roque 1 Elementary School C. WORKING EXPERIENCE Cashier- Daniel and Cynthia’s General Merchandise Camp Grill- All- Around CURICULUM VITAE OF THE RESEARCHER A. PERSONAL INFORMATION NAME: Del Prado, Jessieca Fria C. NATIONALITY: Filipino CIVIL STATUS: Single DATE OF BIRTH: December 7, 1988 PLACE OF BIRTH: Manila ADDRESS: #3 Saint George St. , Metro Core South Gate Home Almanza 1 LPC B. EDUCATIONAL ATTAINMENT College: Philippine Christian University High School: Mary Immaculate Parish Special School Elementary: Fortraidge Asian School C. WORKING EXPERIENCE Lotus Garden-House Keeper

Gumbo- Assistant Chef CURICULUM VITAE OF THE RESEARCHER A. PERSONAL INFORMATION NAME: Nancy V. Ynalvez NATIONALITY: Filipino CIVIL STATUS: Single DATE OF BIRTH: November 23, 1991 PLACE OF BIRTH: Lying-in Pembo Makati City ADDRESS: Blk 5 Lot 2 Phase 2 Pinagsama Village Taguig City B. EDUCATIONAL ATTAINMENT College: Philippine Christian University High School: Eastern Achiever Academy Inc. Elementary: Saint Andrei Academy C. WORKING EXPERIENCE City Garden- All-around Gumbo- Bartender D. EXTRA CURRICULAR ACTIVITY Leadership Camp Discipleship Camp – 2008-2010 Kawayan Camp- 2010 CURICULUM VITAE OF THE RESEARCHER A. PERSONAL INFORMATION NAME: Maria Sybel C. Marfil

NATIONALITY: Filipino CIVIL STATUS: Single DATE OF BIRTH: February 10,1988 PLACE OF BIRTH: Manila Hospital ADDRESS: #0393 Salcedo II Noveleta Cavite B. EDUCATIONAL ATTAINMENT College: Philippine Christian University High School: STM Micheal Institue of Cavite Elementary: STM Micheal Institue of Cavite C. WORKING EXPERIENCE 2008-Present Call Center Representative Chapter III PRODUCTION AND TECHNICAL ASPECT Kimchi-ai house will provide you good services and affordable price. Our employees are very well trained on how they treat our customers. Our services quality and delicious food, which is nutritious and safe, as well as satisfying to customers.

The elements of quality food that applies are flavor, appearance, palatability and storage ability, maintained our product to evaluate to know its escape ingredients when serve food. Purchasing- is important because a correctly designed purchasing system will maintain value and quality, minimize the investment in inventory and strength the operation competitive position. As the price increase are experience in key commodities sound and purchasing technique can profit (or contain cost). A variable purchasing subsystem makes the operation sanitation program easier to manage. The purchasing will be hold by the cook Receiving – a critical control point because ownership of production is transferred from the supplier to the operation.

Skilful purchasing, couple by correct receiving practices can minimized the benefits of a carefully planned menu. The result is an accept or reject decision. Once receiving is completed, prompt storage of the food important Storing- is the function of preventing deterioration and theft of valuable food product before they are used by the operation. Food products are asset that must be protected, contamination, spoilage theft and pilferage must be prevented of the cost are to be minimized and profit maximized Ordering – the activities of customer. The customer chooses the food they want to eat. Preparing- the services activities that takes places before the food product is cooked. Vegetable cleaning and peeling, meat trimming and assembly of raw ngredient are example of preparation functions. Some establishment minimize the time spent on preparing by purchasing convenience food products up build in labor. Without an adequate sanitation program, food can be exposed to sanitation hazard during preparations. Cooking- the control point where heat is applied to food product cooking can significantly alter the color, odor, texture, taste, appearance and nutrients of the raw ingredients. Batch cooking in small quantities helps maintain food quality. Food products can be exposed to sanitation hazard during cooking. Implementing a sanitation program can reduce the risk associated with this control point before problem surface.

Serving – involves physically transferring finished menu items from the production department to the customer. This control point should be designed to deliver quantity product to the customer with speed and efficiency. A comprehensive sanitary program is necessary to reduce sanitation risk associated with serving and to minimize customer satisfaction. Cleaning- although cleaning is the last control point listed on the flowchart, it is form the least important function. In fact, cleanliness intimately related to any other basic operating act. Focusing on sanitation in every subsystem enhances the operation cost control system, long term survival and success.

Today’s customer demand cleanliness, so an effective program sanitation management makes good business sense. The ten control points are the foundation of any food services establishment. Each point must be address in all food services operation and in all segment of industry Sanitary facilities and control Sanitation performance is one of the most important aspects of the food services industry. A potential health hazard is always present when dealing with perishable goods that are to be consumed. Eliminate this hazard by always practicing food sanitation procedures. We sell the ort to the pig feeder by P100 each bucket. Profile of plant location The prob

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