RICE TO GO

An Undergraduate feasibility Study Presented to the Faculty of the College of Business and Entrepreneurial Technology Rizal Technology University Boni Avenue, Mandaluyong City

_________________

In Partial Fulfillment Of the Requirements for the Degree Bachelor of Science in Business Administration Major in Marketing

By: TURQUEZA, Mikko Yan A. YOHANON, Jacquiline M.

MARCH 2012

APPROVAL SHEET

In partial fulfillment of the requirements for the degree of Bachelor of Science in business Administration Major in Management, this feasibility study entitled Title of the feasibility Study has been prepared and submitted by Name of Proponents who are hereby recommended for Oral Examination.

Name of the Adviser

Adviser

Approved as partial of the requirements for the degree of Bachelor of Science in Business Administration Major in Management by the committee on Oral Examination with a grade of_________. Chairman

Member

Member

Accepted as partial fulfillment of the requirements for the Degree of Bachelor of Science in Business Administration Major in Management at Rizal Technological University.

Date

Dean

ACKNOWLEDGEMENT

First of all, we would like to express our deepest gratitude to our Professor Magcino for giving us opportunity to make this study as part of our endless search for knowledge.

Great thanks to our parents for all the love and support in doing this study. They made us successful by helping us in a big way for providing financial support, accommodation, and especially the strength and inspiration in accomplishment of everything we do. We want to acknowledge as well as Maricar Moral who spent some time and effort in cooperating for providing some assistance and information that we need in the study.

We would also like to thank everyone who helped us even in a small way particularly our friends and classmates contributing to the success of this project.

And above all, this study wont be possible without the guidance and inspiration given by our Almighty God.

Table of Contents page Title Page Approval Sheet .. Acknowledgement Dedication (optional) Table of Contents .. List of Tables .. List of Figures Chapter I SUMMARY OF THE PROJECT Name of the Enterprise Logo Location Descriptive Definition of the Project Project Long-Range Objectives Project Timetable and Status Nature of the industry Mode of Financing Investment costs Feasibility Criteria Market Feasibility Management Feasibility Technical feasibility Financial Feasibility Socio-Economic Feasibility Chapter II MARKET STUDY General Market Description Size of the Target Market Past 5-year Demand Year 2012 2011 2010 2009 2008 Year 2013 2014 2015 2016 2017 i ii iii iv v vi vii

Demand 200,000 180,000 170,000 165,000 150,000

Projected 5-year Demand Demand 210,000 220,000 230,000 240,000 250,000 Supply

Year 2012 2011 2010 2009 2008 Study of Competitors Demand-Supply Analysis Year 2013 2014 2015 2016 2017 Demand 210,000 220,000 230,000 240,000 250,000 Supply 45,000 49,500 54,000 58,500 63,000

Supply 45,000 43,000 40,000 38,000 35,000

Unfilled Demand 165,000 170,500 176,000 181,500 187,000

Market Share(capacity to produce base on diff. factors such as capital) 4,950 5,150 5,300 5,450 5,700

4,950 x P = Revenue P-direct labor, direct materials and over head P=Cost + profit Margin Market Share Proposed Marketing Program/Strategies System and Forms Design Chapter III - TECHNICAL STUDY The Products/s or Service/s The Quantity and Quality of the Product/Service to be produced/sold The Production/Service Process Machinery/tools neededCapacity, design, and sources Raw materials and their Resources Labor Neede1d- Skilled and Unskilled Plant/Store Location Plant/Store Layout Structure Specification Total Project Cost List of Estimated Production, Overhead Costs, Operating Expenses Chapter IV - MANAGEMENT STUDY Basic Considerations in Forming the Organization Form of Ownership Organizational Structure Job Titles Job Description

Job Specifications Policies Training and Development Salaries, Wages, and Benefits Chapter V FINANCIAL STUDY Major Assumptions Total Project Cost Initial Working Capital Requirements Alternative Sources of Financing Projected Financial Statements (5 years) Income Statement Balance Sheet Cash Flow Financial Analyses Chapter VI SOCIO-ECONOMIC STUDY Employment and Income Taxes Supply of Commodities/Services Aid to Local Producers

Chapter I A. Name of the Enterprise:

SUMMARY OF THE PROJECT

Rice To Go

The business proponents came up with the Rice To Go as the name of our business. It is basically rice on a takeout box topped with your favorite Filipino dishes such as Adobo, Afritada, Litsong Paksiw etc. It is authentic and delectable which you can carry and eat it on the go. B. Logo C. Location

Figure 2 Location of the Business Our store is located along EDSA Highway near MRT Stations. We know MRTs are the only way to cross the other side of EDSA that is why there are a lot of passers by that will surely buy our product. It is good for people who are always in a hurry. Location is one of the major factors to be considered in putting up a business. It must be assured that it is accessible to the target market. If location is later found to be incompatible to the situation as to give consideration to its target market, it may lead the company to failure. Right choice of location means reaching your target customers and you respond correctly to their market needs. D. Descriptive Definition of the Project

The study is about a food kiosk catering traditional foods as its main dish. The objective of the proponents in making this business possible is to make an impression that usual traditional Filipino foods that we encounter can also be classy, savoury and be compared to other dishes of different countries. Our business wants to emphasize that aesthetics, appearances, presentation of food, personal trust and interaction with our customers are the most important parameters for assessing food safety as well as meeting our customers needs and wants. People in all walks of life can now have the perception that traditional Filipino foods are not just an alternative food if you want to be a spend thrift but rather these are also foods which will delight you and will give you satisfaction beyond your expectations. E. Project Long-Range Objectives To be able to change the perception of people regarding safety and cleanliness of Filipino foods, To increase the level of awareness of customers on the different ways that the Filipino foods can be introduced from a simple and ordinary recipes to a nutritious, stylish and savoury dishes or cuisine,

To line up with other competitors using our unique approach in catering street foods, To offer an affordable but delicious and a satisfying Filipino foods.

o F. G. H. I. J.

Project Timetable and Status Nature of the industry Mode of Financing Investment costs Feasibility Criteria Market Feasibility Projection of demand, supply, and sales for the first five years of operation is based on the different factors like the population growth, market acceptability, capacity to supply and other factors. This study is feasible because our target population are willing and capable of availing our products and services. We also consider factors like our competitors and prevailing prices of the suppliers that will affect our prices. Based on our demand supply analysis we found out that we can supply the available market based on our production capacity.

Management Feasibility Rice To Go is a partnership form of business ownership which will handle the management of the business. There is a store manager who is over all in charged for the day-to-day operation of the business. At the present, the business has the total of 11 employees and as the business grows new employees will be hired for the minor business operation. Through an organized organizational structure, there will be a smooth operation of the business and also based on the technical know how of the managers, therefore, this business is feasible in this aspect. Technical feasibility The products that we are going to offer are traditional Filipino foods with high demand and nutritious for our customer. Our product is rice on authentic takeout box topped with different Filipino dishes. You can choose from Adobo, Afritada, Litsong Paksiw, Caldereta, Minudo. We also offer other products that will complement to our products such as traditional Filpino street foods like kwek-kwek, fishball, isaw, adidas, pork barbeque, chicken skin, balot and calamares in the afternoon and desserts such as (halo-halo, sorbetes, mais con yelo and banana con yelo) and also drinks (sagot gulaman, iced tea and pineapple juice). Machineries and equipment were enumerated as well as other supplies with their corresponding cost. The project is feasible based on the different aspect that we consider in operating this business. Financial Feasibility The initial investment of Rice To Go is P 4,000,000.00 which came from the partners contribution to establish this business. There are no other sources of capital aside from our contribution. The return of asset will be .15 at first year and the payback period will be exactly 2.83. Therefore, our financial study is feasible. Socio-Economic Feasibility Chapter II MARKET STUDY

A. General Market Description

Marketing is a system of business activities designed to plan, price, promote and distribute want-satisfying goods and services to present and potential customers. It is considered as the lifeblood of every business transactions because it is a strategic way on how to cope up to the needs and wants of the costumers, finding

opportunities regarding it, introduce and market the product, achieve customers loyalty and patronage. This aspect includes the following topics: demands, supply, demand and supply gap analysis, marketing programs and the projected sales. The objective of the proposed project is to delight the customers, not just by meeting their expectation but rather exceeding and going extra mile. Moreover, its about profitability. Marketing aspect serves as the basis of the financial section through the projected demand. There can be no discussion of profitability or of the other aspects of the study; if in the first place, there is no demand or market. Every business is practically aspiring for productivity but practically in order to last in the business world the first thing to take into consideration is the target market. The costumers will be the key factor to achieve the objectives of the organization. Finding opportunities and spotting the right market are both important in establishing a business. Knowing customers demand and supplying them right products at reasonable prices.

Chapter III - TECHNICAL STUDY

A. The Products/s or Service/s Many Filipinos are ware regarding the safety and cleanliness of street foods. The image of these products is unhygienic because it is exposed on the different hazards especially physical hazards on the streets. The proponents would like to change this kind of perception by producing these street foods in a safe and clean manner. Standard sanitation procedures are the main consideration in producing a quality and safe products. And aside from that we would to emphasize that our products are nutritious. B. The Quantity and Quality of the Product/Service to be produced/sold Our products consist of different foods, drinks, side dishes, and desserts making a complete meal. Our main foods are Rice, Adobo, Afritada, Litsong Paksiw, Caldereta, Minudo and street foods namely Kwek-kwek, Balut, Isaw, Fishballs, Calamares, Chicken Skin, Adidas and Pork Barbeque. It is sold individually by a specific number of pieces with one sauce and dip chosen by the customer and also can be served in a value meals with rice and drinks. The drinks of Rice To Go are Pineapple Juice, Iced Tea and Sagot gulaman in 16oz. The desserts included are Halo-halo, Saging Con Yelo, Mais Con Yelo and Sorbetes which is available in sweet cone with two flavors to choose from (Ube and Cheese). Our Sauces and Dips are available into four kinds which are sweet, spicy, mayonnaise and vinegar.

Combo Price: Rice + Dish + Drink = 30

Main Dishes
Adobo Afritada Minudo Caldereta Litsong Paksiw

Street Foods
Solo Orders Combo Meals Kwek- Balut Isaw Fishballs Calamares Chicken Adidas Pork Kwek Skin Barbeque 18 25 18 15 22 15 18 20 35 42 39 35 42 39 35 42

Solo Order

Drinks Pineapple Iced Tea juice 18 18

Sagot gulaman 18

Solo Order

Deserts Halo-Halo Saging Con Yelo 42 25

Mais Con Yelo 25

Sorbetes 15

C. The Production/Service Process Street Foods Adidas Ingredients:(the quantity of the ingredients is according to number of street food(s) to be produced) 4pcs Chicken Feet Soy Sauce Vinegar Barbeque Sticks Cooking procedure: Water Oil Catsup Oyster Sauce

1. Wash the Chicken feet and cut the claws and trim off the hardened unwanted spot then nib the chicken feet with salt to clean it thoroughly then rinse it finally scald the chicken feet in hot boiled water for 5 minutes. 2. Put it in a tap water then remove the unwanted skin of chicken feet. 3. Saut the Chicken feet in onions, soy sauce, pepper and vinegar. Balut Ingredients:(the quantity of the ingredients is according to number of street food(s) to be produced) 6 pieces balut, boiled 3 tbsp cornstarch 1 cup water1 cup allpurpose flour 1/2 tsp salt1/2 tsp ground black pepper 2 cups cooking oil

Cooking procedure: 1. Put the cornstarch in a container and dredge the boiled chicken eggs. Set aside. 2. Combine all-purpose flour, salt, and pepper then mix thoroughly. 3. Dilute the annatto seeds in water until the reddish color comes out. Combine the liquid with the flour-salt-pepper mixture and mix thoroughly. 4. Put the boiled chicken eggs in the mixing bowl and coat with the batter. 5. Heat the pan and pour the cooking oil. 6. When the oil is hot enough, deep-fry the eggs until the coating is crispy. Use a serving spoon to scoop the eggs from the mixing bowl. 7. Remove the fried eggs from the pan and place in a serving plate. Calamares Ingredients:(the quantity of the ingredients is according to number of street food(s) to be produced) 1/2 lb large sized squid, cleaned and sliced into rings 3/4 cup all-purpose flour 1 piece raw egg, beaten 3/4 cup breadcrumbs 1 teaspoon salt 1/2 teaspoon ground black pepper 2 cups cooking oil Cooking procedure: 1. Combine squid, salt, and ground black pepper then mix well. Let stand for 10 minutes. 2. Heat a cooking pot the pour-in cooking oil. 3. Dredge the squid in flour then dip in beaten egg and roll over breadcrumbs.

4. When the oil is hot enough, deep-fry the squid until the color of the coating turns brown. Note: This should only take about 2 to 3 minutes in medium heat. Do not overcook the squid. 5. Remove the fried squid from the cooking pot and transfer in a plate lined with paper towels. Chicken Skin Ingredients:(the quantity of the ingredients is according to number of street food(s) to be produced) 1kg Chicken Skin 1pack Chicken Breading 2 eggs 2 cups Cooking Oil Cooking procedure: 1. Wash the chicken skin and cut it into cubes. 2. Place the flavored chicken breading in a bowl and dip the chicken skin 3. Heat the oil for deep fry in a deep frying pan until it turns golden brown for five minutes. 4. Remove and put in a serving plate Fishballs

Ingredients:(the quantity of the ingredients is according to number of street food(s) to be produced) 15 pieces boiled quail eggs 1 cup flour 3 tbsp cornstarch 1/2 cup water1 tbsp anatto powder (pinulbos na atsuete) 1/2 tsp salt 1/2 tsp ground black pepper 2 cups cooking oil Cooking procedure: 1. Set aside. Place the cornstarch in a container and dredge boil quail eggs.

2. In a mixing bowl, combine flour, salt, and pepper then mix thoroughly. 3. Dilute the anatto powder in warm water then pour-in the mixing bowl with the other ingredients. Mix well. 4. Place all the quail eggs in the mixing bowl and coat with the batter. 5. Heat the pan and pour the cooking oil. 6. When the oil is hot enough, deep-fry the quail eggs by scooping them from the mixing bowl using a spoon. Make sure that each is coated with batter.

7. After a few minutes, remove the fried quail eggs from the pan and place in a serving plate. Isaw

Ingredients:(the quantity of the ingredients is according to number of street food(s) to be produced) 1 lb chicken intestine (well cleaned) 1/2 cup vinegar 2 tbsp whole pepper corn 2 tbsp salt 4 to 6 pieces dried bay leaves 4 cups water Cooking procedure: 1. Pour the water in a cooking pot and bring to a boil. 2. Put-in the salt, whole pepper corn, and dried bay leaves. 3. Add the large intestines then simmer for a few minutes. 4. Add vinegar then simmer until the intestines are tender (about 30 minutes). Set aside until the temperature goes down. 5. Cut the intestines crosswise (about 1 inch in length). 6. Skewer the intestine (about 3 to 4 pieces per skewer). 7. Grill the intestine while basting with the mixture of cooking oil, banana catsup, and soy sauce. Kwek-kwek

Ingredients:(the quantity of the ingredients is according to number of street food(s) to be produced) 15 pieces boiled quail eggs 1 cup flour 3 tbsp cornstarch 1/2 cup water 1 tbsp anatto powder (pinulbos na atsuete) 1/2 tsp salt 1/2 tsp ground black pepper 2 cups cooking oil Cooking procedure: 1. Place the cornstarch in a container and dredge the boiled quail eggs. Set aside. 2. In a mixing bowl, combine flour, salt, and pepper then mix thoroughly. 3. Dilute the anatto powder in warm water then pour-in the mixing bowl with the other ingredients. Mix well. 4. Place all the quail eggs in the mixing bowl and coat with the batter.

5. Heat the pan and pour the cooking oil. 6. When the oil is hot enough, deep-fry the quail eggs by scooping them from the mixing bowl using a spoon. Make sure that each is coated with batter. 7. After a few minutes, remove the fried quail eggs from the pan and place in a serving plate.

D. E. F. G.

Machinery/tools neededCapacity, design, and sources Raw materials and their Resources Labor Neede1d- Skilled and Unskilled Plant/Store Location Plant/Store Layout Structure Specification Total Project Cost List of Estimated Production, Overhead Costs, Operating Expenses