Business Plan

ALFREDO’S CRISPY CHEDDAR CHICKEN

Dipolog City Boulevard

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This document is confidential.

Table of Contents

Table of Contents.................................................................................................................2
Executive Summary.............................................................................................................3
Vision/Mission Statement and Goals...................................................................................4
A. Vision Statement.........................................................................................................4
B. Goals and Objectives..................................................................................................4
C. Keys to Success...........................................................................................................4
Company Summary.............................................................................................................5
A. Company Background................................................................................................5
B. Resources, Facilities and Equipment..........................................................................5
C. Marketing Methods.....................................................................................................5
D. Management and Organization...................................................................................5
E. Ownership Structure....................................................................................................5
G. Internal Analysis.........................................................................................................6
Products and/or Services......................................................................................................7
Market Assessment..............................................................................................................8
A. External Analysis........................................................................................................8
B. Customers....................................................................................................................8
C. Strategic Alternatives..................................................................................................8
Strategic Implementation.....................................................................................................9
Financial Plan....................................................................................................................11
A. Financial Projections.................................................................................................11
B. Contingency Plan......................................................................................................11
Monitoring.........................................................................................................................11

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 Vision/Mission Statement and Goals

A. Vision Statement

Alfredo’s Crispy Cheddar Chicken foresees to be one of the leading food

establishments in Dipolog City that provides crispy and cheesy chicken from the vicinity
of business to the heart of every home.

B. Goals and Objectives

The business wants to win the taste and preferences of the people that love to eat
crispy cheddar chicken. It also aims to obtain high net profit in the operations of the
business after 2 years and expand to feel to everyone the crispiest and cheesiest chicken
that the business offers.

C. Keys to Success
The business must give attention to the following keys in order to success in the
economy:
 Purpose – the business must have a clear purpose to create and keep the
customers of buying the product again.

 Focus – the business must establish this at all times to the customer as
they changeable, demanding and disloyal.

 Customer Satisfaction – the business must satisfy the customer need that
will help grow the business and profitability.

 Continuous Improvement – the business must consider feedback to

make something new to attract new market and retain the customers in
buying the product.

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 Company Summary

A. Company Background
Alfredo’s Crispy Cheddar Chicken is a production firm of a crispy cheddar
chicken which offers delivery within the vicinity of the city of Dipolog. This is plan and
founded by the sole owner Alfredo Embrado, a chef which he consider the combination
of cheese and chicken as the best and tastiest dish the he experienced and he want it to be
attractive to many here in Dipolog city and gain profits on it.

B. Resources, Facilities and Equipment

Crispy Cheddar Chicken is a dish that is suitable to baby, young, adult and even
old as it is very nutritious and delicious that everyone can remember after they ate and
experienced the dish offered by Alfredo’s Crispy Cheddar Chicken. The business operates
in Dipolog City Boulevard which will rent space for the production site. It is put up here,
in order to formulate publicity and curiosity of many people who passed and see the
establishment. By this, they are going to buy, order for any occasions in home and
offices. Machines and equipment are acquired by the owner from his savings. The owner
is rewarded in the form of profit after deducting all expenses from the gross sales of the
business.

List of Possible Resources to be used:

FURNITURES AND FIXTURES

Sample Picture Name Quantity Supplier Total Cost

Monobloc Chair 5 pieces Engrace ₱ 1,225.00

(₱245.00 per Marketing
piece)

Office Table 1 piece Better Living ₱ 3,250.00

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 Electric Stand 2 units Imperial ₱ 2,400.00
Fan (₱ 1,200.00 per Appliance Plaza
unit)

TOTAL FURNITURES AND FIXTURES ₱ 6,875.00

MACHINERIES

Sample Picture Name Quantity Supplier Total Cost

Microwave Oven 1 unit Emcor ₱ 6,880.00

Company

Freezer 1 unit Emcor ₱ 15,898.00

Company

Electric Stove 1 unit Emcor ₱ 20,398.00

Company

TOTAL MACHINERIES ₱ 43,176.00

DELIVERY EQUIPMENT

Sample Picture Name Quantity Supplier Total Cost

XRM Motorcycle 1 unit Motortrade ₱ 65,000.00

Dipolog

TOTAL DELIVERY EQUIPMENT ₱ 65,000.00

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OFFICE EQUIPMENT

Sample Picture Name Quantity Supplier Total Cost

Cellular Phone 1 unit Roy Plaza ₱ 930.00

(With Sim Card)

Calculator 1 piece Sebio ₱ 425.00

Educational
Supplies

Personal Computer 1 unit Emcor ₱ 19,500.00

Company

Fire Extinguisher 1 unit RV’s ₱ 1,650.00

Enterprise

TOTAL OFFICE EQUIPMENT ₱ 22,505.00

TOTAL NONCURRENT ASSETS ₱ 137,556.00

OPERATIONAL SUPPLIES

Sample Picture Name Quantity Supplier Total Cost

Knife 1 piece Saver’s Mart ₱ 69.00

Chopping Board 1 piece Saver’s Mart ₱ 100.00

Colander 1 piece Saver’s Mart ₱ 52.00

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 Deep Fry Pan 2 pieces Saver’s Mart ₱ 500.00
(₱ 250.00 per
piece)

Spatula 3 pieces Gleen’s ₱ 132.00

(₱ 44.00 per Shopping
piece) Center

Plates 5 pieces Lee Plaza City ₱ 125.00

(₱ 25.00 per Central
piece)

Spoon 1 dozen Lee Plaza City ₱ 96.00

Central

Fork 1 dozen Lee Plaza City ₱ 96.00

Central

Bucket 1 piece Gleen’s ₱ 40.00

Shopping
Center

Water Dipper 1 piece Gleen’s ₱ 18.00

Shopping
Center

Disposable Food 100 pieces Lee Plaza City ₱ 600.00

Containers Central

TOTAL OPERATIONAL SUPPLIES ₱ 1,828.00

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OFFICE SUPPLIES

Sample Picture Name Quantity Supplier Total Cost

Ballpen 5 pieces Sebio ₱ 35.00

(₱ 7.00 per Educational
piece) Supplies

Stapler 1 piece Sebio ₱ 52.00

Educational
Supplies

Record Book 1 piece Sebio ₱ 45.00

Educational
Supplies

Staple Wire #35 3 boxes Sebio ₱ 118.50

(₱ 39.50 per Educational
box) Supplies

Wall Clock 1 piece Lee Plaza ₱ 100.00

City Central

TOTAL OFFICE SUPPLIES ₱ 350.50

MAINTENANCE SUPPLIES

Sample Picture Name Quantity Supplier Total Cost

Plastic Dustpan 1 piece Gleen’s ₱ 40.00

Shopping
Center

Natural Straw 1 piece Public Market ₱ 48.00

Broom

Mop 1 piece Saver’s Mart ₱ 160.00

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 Garbage Can 2 pieces Gleen’s ₱ 990.00
(₱ 495.00 per Shopping
piece) Center

Garbage Bag 2 pieces Lee Plaza ₱ 145.00

Medium (₱ 72.50 per City Central
(22X24) piece)

Plastic Toilet 1 piece Lee Plaza ₱ 27.00

Brush City Central

Door Mat 2 pieces Gleen’s ₱ 160.00

(₱ 80.00 per Shopping
piece) Center

Air Freshener 2 pieces Lee Plaza ₱ 408.00

(₱ 204.00 per City Central
piece)

Multipurpose 2 pieces Lee Plaza ₱ 114.00

Bathroom Cleaner (₱ 57.00 per City Central
piece)

TOTAL MAINTENANCE SUPPLIES ₱ 2,092.00

TOTAL SUPPLIES ₱ 4,270.50

C. Marketing Methods

The annual sales of the business range to ₱ 1,300,000.00 – ₱ 1,500,000.00, if

converted into dollars it would be from $ 26 - $ 30. Based on the Income Statement of the
business, the profit consistency per year is achieved. The business is in pursuit of
reducing costs every year and more on realizing profits. The cash received from
customers are deposited at the bank to earn interest which is also a way of improving
returns. The marketing of products are also consistent to the above-mentioned suppliers.

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The cost of producing the product is ₱ 718,440.80 annually while the delivery cost varies
per year depending on the number of orders.

D. Management and Organization

The business is operated and managed by the owner as it is his expertise and in
order to supervise the employees and evaluate the performance of the operation. To
operate effectively and efficiently so as to meet the current and future demand of the
customers to the product, the owner needs and assistant in the kitchen, driver that can
deliver the orders and cashier that receives calls and orders from telephone and Facebook
respectively and especially receives the cash from customers. See the organizational chart
of the management below

As shown in the figure above, it shows line of authority which comes from the top person
down to its subordinates. Division of work has been assigned to its subordinates to
properly carry the responsibility within the workplace. To properly guide in the selection
of the employees, the management must established the job specification and job
qualification.
Employees will be entitled to receive a minimum wage in accordance with the
Republic Act No.6727 known as the Wage Rationalization Act and their performance is
evaluated by the manager as he oversees the operations within the workplace.

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 JOB DESCRIPTION AND JOB SPECIFACATION
Position Job Description Job Qualification
Manager/Cook  Cook the food.  Must be a graduate of hotel
 To plan and implement and restaurant management.
the policies in order to
 Have and experience of at
achieve organizational
least 1 year of cooking
goals and objectives.
dishes.
 Supervise and
 Must be firm when it comes
administer the
to decision making.
performance of the
personnel in their daily
operation.
 Check the cash at the
end of the day.
Assistant cook  Prepare the necessary  Must be a holder of any
utensil. certificates related to
 Clean the kitchen. cooking.
 Prepare the ingredients  Must be a hardworking.
needed in the cooking of  At least high school
the dish. graduate.
 Pack the food for
delivery.
 Buys materials and
ingredients.
Cashier  Clean the workplace.  Must be trustworthy.
 Check the page on  At least high school
Facebook and answers graduate.
telephone calls.  Must be a hardworking.
 Receives cash and issues  Must have a pleasing
receipt. personality.
Delivery  Delivers the orders to  Must be trustworthy.
personnel the customers.  At least high school graduate

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  Receives cash and issues  Have a driver’s license.
receipts.  Must have a pleasing
 Accompany the assistant personality.
cook in buying
ingredients and any
related materials for
cooking.

As stated above, the owner ensures that its subordinates acquire good personality
and skill fit in the position where they are working. This is done during the selection of
the applicants prior to the operation/commencement of the business. The management
implemented this way of selecting applicants in order to select the required person that
best fit the work needed in the management. Each employee is necessary in order for the
business to operate and meet its goal. The work offers enhancement of personality and
skills to its employees as it gives them additional experience of a certain work.
Employees will be entitled to receive a minimum wage in accordance with the Republic
Act No.6727 known as the Wage Rationalization Act and their performance is evaluated
by the manager as he oversees the operations within the workplace.

Employee’s Working Schedule

The business will operate its operation from 8am until 8pm in the evening during
Monday to Saturday. So, there is only 308 days a year and assumed the 10 legal holidays
fall on the working days.

Table Shows the Working Schedule of the personnel in the business.

Position Time Days

Manager/Cook 08:00am – 08:00pm Mon-Sat
Assistant Cook 08:00am – 08:00pm Mon-Sat
Cashier 08:00am – 08:00pm Mon-Sat
Delivery Personnel 08:00am – 08:00pm Mon-Sat

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Table shows the annual salary of the employees:

Particulars # of Rate # of Total Salaries

Days Employees (Php)
Ordinary Working Days 308 296.00 3 273,504.00
Premium on Regular
10 88.80 3 2,664.00
Holidays
Overtime 308 222.00 3 205,128.00
Annual Salary 481,296.00

The employees will now share equally the 481,296 as they have the same time
spent in the business operation. So, each will have a gross salary of 160,432. They will
also receive benefits like SSS, PhilHealth and Pag – ibig which will be remitted to the
authorized agency in the next month of the payroll period.

E. Ownership Structure

The primary stakeholders of the business are owner/manager, employees and

government that have direct interest like profit, salaries and taxes respectively. The legal
form of the business is proprietorship, which is owned and financed by one individual,
the owner/manager. It is chosen as it is the simplest and easy to establish form of business
compare to other forms. In establishing production firm is required with the following
legal requirements and permits with its cost:

1. Business tax 2,875.00

2. Mayor’s Permit 220.00
3. Sanitary Permit 100.00
4. Occupational tax 150.00
5. Medical Certificate 150.00
6. Police Clearance 450.00
7. Business Plate 1,000.00

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 8. Location Clearance 80.00
9. OBO Permit 100.00
10. BIR Registration Fee 500.00
11. DTI Registration Fee 2,000.00
12. OBO Fee 850.00
13. PAG-IBIG Fee 500.00
14. Fire Inspection 497.00
TOTAL P 9,472.00

F. Social Responsibility

Whether you realize it or not, every single thing you do impacts the environment.
The management will dispose waste from the kitchen to the proper place and segregating
the disposable and non-disposable in order for the garbage collector to easily dispose the
disposable and the non-disposable to the junkshops. In order for the rotten and spoiled
foods not to pollute the place, must be throw every morning of the next day. The
management must implement good sanitation in the workplace in order to keep the
environment safe and can be observe by the others that the business cares for the mother
earth. The role of the business in the society is to provide dish like crispy cheddar chicken
to those who love to eat this kind of food and pay taxes to the government for national
progress. Management shall also attend workshops and training like fire drill in order to
be aware of what to do during fire and health and sanitation awareness
workshop/program.

G. Internal Analysis

The strengths that the business has are skilled and experienced employees;
location is accessible to the customers as it located beside Dipolog City Boulevard and
can be easily order in Facebook. In spite of the strength, the management also found out

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that it is .difficult to cater people outside the city. The advantage that the business offers
to the customers is the delivery of the product to their home which others don’t have.

Products and/or Services

The product of the business is mainly “Crispy Cheddar Chicken”. It is a Filipino

dish which uses Chicken as its key ingredient. This is originally invented by the
Manager/Chef itself. The secret behind the yummy taste of this dish is the ample amount
of cheese added to it. The plain fried chicken we’ve used to eat every now and then was
innovated and transformed into something crispy, cheesy chicken that you’ve always
wish to eat. It is made of Chicken Breast rolled into pieces and fried up to its crispiest
form. It is creamy to eat compared to the other chicken recipes. In the city, we are the
only business offering this kind of dish. Rest assured that high quality product and
service to the customers will be attained. The price is also affordable and the location is
so accessible since it is situated at the side of Dipolog City Boulevard.

Crispy Cheddar Chicken Ingredients:

CHICKEN
Sample Picture Name Quantity Supplier

Boneless & Skinless 900 kilos Monterey Meat Shop

Chicken Breast

Egg Whites 2 half galloon Lee Plaza City Central

Shredded Cheddar 3 packs 500g. Lee Plaza City Central

Cheese

Breadcrumbs 1 kilogram Friendly Mart

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 Melted Butter 1 kilogram Friendly Mart

CHEESE SAUCE
Sample Picture Name Quantity Supplier

Melted Butter 1 pack 500g. Friendly Mart

Flour 1 kilogram Friendly Mart

Shredded Cheddar 1 pack 500g. Lee Plaza City Central

Cheese

Chicken Broth 6 cubes 60g. Lee Plaza City Central

Black Pepper Powder 4 kilos Public Market

Market Assessment

A. Examining the General Market

The target market of the business is the people within the vicinity of Dipolog City
which has great preference on food from the meat of chicken. Business focuses its
product to any age of individual the city which has the high interest on food from meat
chicken. Due to busyness of work and school, many would get tired of cooking dish for
their viand, some go to “karenderia” or to any food establishment and some would skip
their meals for that reason. The business would probably expand in the near future and
offer salaries to its employee that is not low as with the other offers. The management

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considers after few months many will open the same type of food and service within also
the city and this would be the threat that must be considered in order to achieve the goals
of the business. The Five Forces model suggest that the business must enter to a contract
with a supplier that supplies the chicken with a discount and can offer a just price to the
customers in order for them to patronize and wouldn’t find another food and supplier of
it. As of now, the direct competitor of the product that the business is offering to the
market is the stall that offers fried chicken but the business has a competitive price of it.
The people in the city has an increasing demand in eating chicken food and they are
looking something new in the market that could make them feel satisfied and comfort
with the price they are paying. In establishing business like this, the management does
not found any regulations, issues that would make the product not in demand in the city.

B. Customer Analysis

The main target customer of this product is the people of the city that has a
preference of eating chicken products like crispy chicken with specialty of cheese. The
business sells to its prospect customers the happiness and comfort that the customer will
feel of buying the product. The product and service extended by the business to its
customer will help the customers find comfort and satisfaction by calling or texting to the
Facebook page and telephone that the business is willing to respond. The business must
consider the feedback that the customer is reporting in order to know their response to the
product.

C. Industry Analysis

The city of Dipolog is known to have been occupied by different fast food chains
and Dipolognons are found to be food-lovers. The business will be situated at Dipolog
City Boulevard for easy access of the customers. The people of Dipolog City were chosen
as the target market. Questionnaires were distributed and were used as a method to the
target individuals in soliciting information for the study.

D. Strategic Alternatives

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 Businesses are highly uncertain and owners need to be innovative and flexible to
survive. It can only be achieved through implementing strategic alternatives which will
enable the business to maintain a competitive edge over rivals. The business so far is
price focus, which means it competes on cost. Since the business is a new entrant in the
market industry, the strategy chosen fits for it to be effective. The firm needs to have a
low-cost structure compared to rivals.

Strategic Implementation

A. Production

The product will be produced by the use of the equipments and machineries. It
will be cooked by the manager / chef itself. The duration of the process is only 30
minutes including the making of Cheese Sauce. Rest assured that the product will give a
positive feed backs from the customers and would make them order again. Knowing that
there has not yet business existed in the area such as that of Alberto’s Crispy Cheddar
Chicken located in Dipolog City Boulevard, people would love to visit and order on it.
Our competitive advantage is that we offer high quality, delicious and affordable unique
chicken viand compare to the other existing businesses. The orders will be from
telephone, cellular phone and Facebook respectively.

B. Resource Needs

a) Human

The human resources needed are those who would fit the given specifications of
each desired position. They will be acquired through hiring and applicants are required to
pass their bio-data and resume on the owner itself.

b) Financial

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 Financial aspect comes from the savings of Mr. Alfredo Embrado. The capital is
solely from him and the business has not occurred loans or other financial borrowings
from the bank since day one.

c) Physical

The physical equipments and other supplies are enumerated and already described
at the Resources, Facilities and Equipment section.

C. Sourcing/Procurement Strategy

We prefer buying products by considering first its quality and then the price. It
should be of excellent quality and reasonable price. It must be substance over form,
quality above price. Our suppliers are the local dealers of the city and the direct
manufacturers of Chicken and other key ingredients.

D. Marketing Strategy

As an entrant in the business industry, it is essential to capture the prospective

customers’ needs and wants to provide them a more sustainable service and excellent
product. Analyzing the demand thoroughly will give the projection of how to target the
demands.
Hence, there are a number of factors which affects the demand of Crispy Cheddar
Chicken. Of these factors, the most important to have influence is its unique taste.
Moreover, the number of households has been increasing. Above all the increase in the
number of population of the city increases for the need to put up business that would
offer them something new. Nowadays, most of the people prefer the place that found in
the city or close to the road. The product will be advertised through the use of fliers and
through the help of social media like Facebook. The company site is used to entertain
queries and also to walk-in orders.

a) Hedging, forward pricing, options

Products are priced based on the total cost of the ingredients and other necessary
expenses such as delivery expense. Every year, it is projected that the business increases

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2% of its selling price due to the inevitable changes of the prices of ingredients that the
business should adapt. The business mitigates risk by pricing reasonably its product.

b) Contracting

The business was in contract to a certain chicken supplier, Monterey Meat Shop,
in order to reduce risk such as inconsistent chicken taste and quality. Other supplies and
ingredients were also bought to certain stores mentioned in the Resource, Facilities and
Equipment & Products and Services section. There is no contract in production process
since the cook is the owner itself.

c) Insurance

Insurance services are also acquired by the business especially for their
employees incase inevitable events may happen. SSS, Pag-ibig and Philhealth
contributions are remitted monthly by the business to ensure their welfare.

E. Performance Standards

Performance standards are the pre-established guidelines your business has in

place for various areas of business operations. The most important performance standards
used by the business is Customer Service Performance Standard since it dictates the ways
in which customers are to be treated and the best practices to be observed. Setting such
standard involves determining what you want your customer experience to look like.
Look at employee interaction, return policies and refund or exchange guidelines in a
timely manner and handle customer concerns in a knowledgeable and friendly way. For
employees to be effective in delivering exceptional levels of service to the customers,
they must have a solid working knowledge of the business policies and procedures.
Having such standards in place and educating employees on the directives can help
encourage efficiency and effectiveness of the business and improve overall business
operations. The owner, Mr. Alfredo Embrado, is the one responsible in implementing and
monitoring such standard used in the business.

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 Financial Plan

A. Financial Projections

The business was funded through the capital of the owner which comes from his
own savings. The business has not engaged into any borrowing costs or loans
applications since its existence. The desired outcome of the owner is consistency of
profits every calendar year, assets should be more than liabilities and equity must
increase annually. The sales must continually accelerate to provide profits and of course
lead to return on investment of the owner. As you can see in the 5-year projected financial
position and financial performance of the business, it was gradually boosting. It implies
that the business is progressive and expanding. In case the business may encounter debts
due to some inevitable events, then it will be funded by the owner. Cash collected from
sales are deposited to the bank to earn interest income. It is invested so that it will not be
stagnant and for it to give additional income. Since the business is cost conscious, it has
spending limits and operating expenses incurred are of amounts the business is capable of
paying. Financial risk is managed through investing immediately cash on hand on the
bank to let the money work longer and potentially earn higher returns. Other than that,
the owner/manager should understand when to cash out. The Assets, Liabilities, Equity,
Sales and Expenses are monitored by the owner from time to time. Based on the financial
statements of the business, it has an assumption of a going-concern entity and of course
the consistency principle on profits was put into practice.

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B. Contingency Plan

In case the above-mentioned ways of managing risks will not be effective enough,
the other option the business should do is to engage into loans or other means of
borrowing. Insurance payments for the employees are remitted every month in case any
emergency may happen to them. The business is ready for any inevitable events.

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B. Contingency Plan

In case the business would not be effective enough in handling risks, the
secondary option would be to incur loans or other means of borrowing. The business
remitted SSS, Philhealth, and Pag-ibig every month in case emergencies may happen to
them.

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