Kingfisher School of Business and Finance

Purposive Communication

Researchers

Bucaloy, Romel B.

Curaming, Faye Cecil P.

Dela Cruz, Cherrie Mae S.

Dela Cruz, Ravene Jhoi D.

Flores, Elma T.

Opaque, Ronajean P.

Romero, Fernan A.

Soriano, John Edward P.

Valdez, Darlyn F.

Vinluan, Theresa Joy C.

March 2019
 TABLE OF CONTENTS
PAGE NO.
Table of Contents ………………………………………………………………….i

List of Tables ……………………………………………………………………...v

List of Figures …………………………………………………………………….vii

CHAPTER I: INTRODUCTION ……………………………………………..1

Company Background ………………………………………………………..1

Industry Analysis ……………………………………………………………..3

Organizational Plan …………………………………………………………..4

Marketing Plan …………………………………………………………….....5

Objectives………………………………………………………………….7

Products …………………………………………………………………....8

Costing ……………………………………………………………………….12

Breakeven …………………………………………………………………....13

Permit ………………………………………………………………………..18

Location Profile ……………………………………………………………..19

Location Analysis …………………………………………………………...20

SWOT Analysis …………………………………………………………..23

Porter’s Five Forces Model ………………………………………………25

Statement of the Problem …………………………………………………...26

Hypotheses ……………………………………………………………….26

Conceptual Framework ……………………………………………………..26

ii
 TABLE OF CONTENTS
PAGE NO.
Research Paradigm ………………………………………………………….27
Scope and Limitations ………………………………………………………27

Significance of the Study ……………………………………………………27

Definition of the Terms ……………………………………………………..28

CHAPTER II: REVIEW OF RELATED LITERATURE………………………….30

Summary ………………………………………………………………….....39

CHAPTER III: METHODOLOGY ………………………………………………….40

Research Design …………………………………………………………..…40

Sampling ………………………………………………………………...40

Participants and Locale of the Study

……………………………………………………40

Procedure ………………………………………………………………..41

Measures …………………………………………………………………...42

Consent Form ………………………………………………………...42

Demographics …………………………………………………………..42

Survey Form …………………………………………………………43

Statistical Tools and Data Analysis

BIBLIOGRAPHY . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . …..60

APPENDICIES …………………………………………………………..........68

APPENDIX A- Copy of Briefing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . …

APPENDIX B- Copy of Consent Form . . . . . . . . . ... . . . .. . …… . . . . .69

iii
APPENDIX C- Copy of Demographics . . . . . . . ... . . . . . . . . . . . . .. . . . .. . . .71

APPENDIX D- Copy of the Survey form and Questionnaires for Interview . . . . . . 72

APPENDIX E- Copy of Debriefing . . . . . . . . . . . . . . . . . . . . . . .. . …. . . . . .74

APPENDIX F- SSS Requirements and E-1 Form

…………………..……………………….….75

APPENDIX G- Business Permit Application Form

…………………………………...………..77

LIST OF TABLES
TABLES PAGE
NO.
Table 1.1 Expenses of Dulcis Chocolate House …………………… 2

Table 1.2 Expenses of Dulcis Chocolate House ……………………… 3

Table 2 Cost of Product Promotion …………………………..………… 6

Table 3.1 Products of Dulcis Chocolate House ………………………… 8

Table 3.2 Products of Dulcis Chocolate House …………………………

Table 3.3 Products of Dulcis Chocolate House …………………………… 10

Table 3.4 Products of Dulcis Chocolate House …………………………… 11

Table 4.1 Costing of Dulcis Foods ………….. . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . 12

Table 4.2 Costing of Dulcis Drinks ………….. . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . .. 12

Table 5.1 Breakeven of Products………….. . . . . . . . . . . . . . . . .. . . . . . .. . . . . .. . . . …13

Table 5.2 Breakeven of Products………….. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . .

iv
 LIST OF FIGURES
FIGURES PAGE
NO.
Figure 1 Organizational Plan …………………………………… 4

Figure 2 Dulcis Tarpaulin ……………………………………………. 5

Figure 3-A Location ……………………………………………............. 19

Figure 3-B Top View …………………………………………........... 19

Figure 3-C Closer Top View …………………………………………………........

19

Figure 4 Floor Plan ………………………………………............... 20

Figure 5-A Exterior Design Front View……………………………....... 21

Figure 5-B Exterior Design Right View………………………………....... 21

Figure 6-A Interior Design Top View ……………………………....... 22

Figure 6-B Interior Design Left View …………………………………….......

22

Figure 7 SWOT Analysis of Dulcis Chocolate House ……………………………

23

Figure 8 Porter’s 5 Forces Model ………………………………………………….

25

Figure 9 Research Paradigm ………………………………. 27

Figure 10 Location …………………………………………… 41

Figure 11 Weighted Mean …………………………………………… 43

Figure 12 Mean …………………………………………………… 44

v
 CHAPTER 1

INTRODUCTION

Floating restaurants are starting to be one of the growing sectors in the market of

the Philippines today, where customers are given the chance to have a casual dining

experience with magnificent views of the bodies of the water. Furthermore, upon

considering the customers' perspectives in their dining choices, it's found out that value,

quality, variety and dining environment are the criteria upon which these consumers base

their dining decisions (Abdelhamied, 2011). Thus, a floating restaurant with a reasonable

service and products will undeniably give them an exciting and unforgettable experience.

A wide variety of business styles with unique, aesthetic and beneficial values

continuously prospers in the market today which creates a pervasive influence in the

patronage of the consumers and even the entrepreneurs. One flourishing example of this is

the restaurant businesses where most consumers enjoy and prefer dining in to satiate their

hunger, but people are also after in deriving satisfaction in savoring the entire meal

experience in a captivating ambiance. Indeed, people tend to patronize this business style

which eventually results to the booming trends of this business such as the Floating

Restaurants. The floating restaurant industry is expected to boom in the coming years for

it is the latest and most amazing business ideas which have high market demands (Floating

Restaurant Business, 2018).

Company Background

This study seeks to determine and validate the feasibility of establishing a floating

restaurant business in the Home of the Hundred Islands, Alaminos City Pangasinan. The

1
business will be named as "Galicayo" as it pertains to "Come here" to encourage the people

to come over the place to have an astonishing dining experience. The Galicayo restaurant

will feature different seafood products around Pangasinan and will sell innovated seafood

delicacies which are perfectly matched with the longganisa fried rice product of Alaminos

which will excite the people to have a taste of what Pangasinan can offer.

The main restaurant will be situated at the shoreline of Governor's Island, while the

cottages, where they can eat, have a rope and can go as far as the rope can get. The

customers can do whatever they want to do as long as it doesn't include damaging the

environment. Rest assured, their safety is what we want to prioritize and with that they are

required to use safety gears.

The target market of the Galicayo Floating Restaurant are the tourists who came to

visit the beauty of Hundred Islands.

Industry Profile

Restaurants are an essential part of any culture. Wherever you go, all across the

globe, you can find places of business selling food, drinks and desserts. A seafood

restaurant is a restaurant that specializes in seafood cuisine and seafood dishes, such as fish

and shellfish. Dishes may include freshwater fish. The concept may focus upon the

preparation and service of fresh seafood, (as opposed to frozen products). From 2000 to

2006, the sales of restaurants keep increasing by over 10%. In 2003 the growth rate was up

to 28.2%, almost an economic wonder. In 2005, it was 17.7%. The growth of restaurant

sales is about double that of inhabitants’ income growth international.

2
 The $150 billion global seafood industry is rapidly expanding. Per capita seafood

consumption has risen by 90% worldwide in the past fifty years and today more than one

in ten people on the planet derive their livelihoods from fisheries and aquaculture. This

rapid growth has fueled significant challenges both for the seafood industry and the overall

sustainability of our oceans. Currently, 89% of global fish stocks are overfished or fully

exploited, yet the problem isn’t simply consumption but waste, as up to 50% of fish are

discarded or wasted within supply chains. In addition, more than 800 kilograms of seafood

are stolen every second through IUU (Illegal, Unreported and Unregulated) fishing.

World per capita fish supply reached a new record high of 20 kg in 2014, which

now provides half of all fish for human consumption, and to a slight improvement in the

state of certain fish stocks due to improved fisheries management. Recent reports by high-

level experts, international organizations, industry and civil society representatives all

highlight the tremendous potential of the oceans and inland waters now, and even more so

in the future, to contribute significantly to food security and adequate nutrition for a global

population expected to reach 9.7 billion by 2050. In 2010, only one in four middle-class

households were in Asia. However, by 2020 it is predicted that Asia could hold over half

of the world’s middle-class population, accounting for more than 40% of global middle-

class consumption. During the last three decades, world aquaculture production increased

from 5 million to 63 million tonnes. By 2030, aquaculture is projected to supply over 60%

of fish destined for direct human consumption (The State of World Fisheries and

Aquaculture, 2016).

3
Objectives

The general objective of this research study is to establish a floating restaurant that

offers seafood products around Pangasinan with the combination of Longganisa fried rice.

Specifically, it also aims to provide convenience to the customers, to help on promoting

Pangasinan as well as its product, and to support the tourism of the main attraction in the

Hundred Islands National Park. Also, it aims to give satisfaction to the consumers through

providing water activities such as kayaking, snorkeling, and etc.

Furthermore, the business targets to earn reputation and popularity on the field of

food service. In addition, it aims to maintain a net profit margin of 25%, create good

customer relationship through quality products and service, build a convenient and high-

quality floating restaurant, and formulate an efficient and effective marketing plan for

continuous improvement.

Location Profile

Figure 1 Map of Governor's Island Figure 2 Location in Governor’s Island

4
Figure 3 Top View of the Business Layout Figure 4 Front View of the Business Layout

Figure 5 Top View Figure 6 Interior View

We pick the location of Galicayo Floating Restaurant based factors that includes

the tourists visiting the place, the accessibility and the condition of the water. It will be

situated at the shoreline of the most visited island, the Governor's Island.

The shoreline of Governor's Island will provide the tourist an amazing view which

adds to their relaxation and enjoyment while enjoying the products and services of

Galicayo Floating Restaurant. It takes 20-30 minutes from Lucap Wharf to the said island.

It is also near the other famous islands including Romulo Island and Children's Island

which makes it easier for tourist to jump from one island to another. Furthermore,

Governor's Island offers the tourist an amazing view of Hundred Islands National Park

5
from the view deck. The 15- feest statue of St. Joseph the Carpenter with the child Jesus is

installed with a zip-line that contributes to the reason why tourists prefer to visit the island.

Organizational Plan

Figure 7 Organizational Plan of the Galicayo Floating Restaurant

Based on Figure7, the organizational chart, we are assigned according to our skills

and specialty. Whereas, Darlyn Valdez, the general manager, acquired leadership and

conceptual skills. Faye Cecil Curaming , the group's Finance Manager, has the ability in

allocating funds for the group and calculating the proper amount to be set on every product

of the business. Ravene Jhoi Dela Cruz was appointed as the accountant for she has the

ability to keep all the records updated and relay the financial information for the

management decision making. Theresa Joy Vinluan was entrusted as the group's Treasurer

for she has been good in securing the funds of the group. Jose Fernan Romero was assigned

as the group for Production Manager for her ability and experience in making the products

of the business. Together with him is his two production personnel namely Cherrie Mae

6
Dela Cruz and Romel Bucaloy. John Eduard Soriano was assigned by the group for

Marketing Manager for he has been good in socializing with people and framing

promotional strategies. He will be working with Elma Flores as his personnel. Lastly, Rona

Jean Opague was chosen to lead the Human Resource Deparment for she was good in

dealing with people , asking significant questions regarding the job qualifications,

investigating ones requirements and choosing the right employees who can really help for

the success of the company.

Marketing Plan

Promotional Strategy

Promotion is one of the significant aspects for getting your brand in front of the
public and attracting your customers. One of the promotions of Galicayo Floating
Restaurant is advertising the products and business itself through online. Also, by
customizing tarpaulin and stickers that indicates the logo and tagline of the firm. Galicayo
will free use of floaters and snorkeling gears if they reached a certain amount; 200 pesos
for the small floaters, 700 pesos for the big floaters, and 500 pesos for the snorkeling gears.
We will also use personal selling since they believe that it is the most important and
effective form of promotion. It is the best means of oral and direct communications. We
will promote the products through their attitude, appearance, and specialist product
knowledge since the intention of the researchers is to inform and encourage the customer
to buy their product. Satisfied customers can be their other form of promotion through of
word of mouth influence for they will share their experience about the service and products
to their family, friends, and relatives to convince them to try.

Pricing Strategy

Pricing decision is important to a business. It must consider the customers’

purchasing power to successfully decide if a product has a reasonable price. The pricing
strategy to be used is psychological pricing will also be used because sellers consider the
psychology of prices. The customers usually perceive that a product that has high quality
7
has higher prices. These pricing strategies will help the business to grow and to engage it
to the consumers.

Action Plan

The goals of Galicayo Floating Restaurant are to be known in the whole Pangasinan
and to give customer satisfaction to attract consumers and increase sales in 20% during its
first year of operation. We will promote and advertise their products to attain their goals
by using tarpaulin, stickers, personal selling, online promotions, and word-of-mouth
influenced by satisfied customers. We will pay Php1200 for their five pieces of two by six
customized tarpaulin that will be used for 1 year, Php175 for their 25 pieces customized
stickers that will be distributed in public vehicles for a year, and Php1000 for the flyers.
Also, we will be spending 990Php for their one-month internet expense for the promotion
of their products in various social media sites.

Figure 8 Galicayo Floating Restaurant Tarpaulin

8
 Figure 9 Galicayo Floating Restaurant Sticker

Cost of Product Promotion

Product Promotion Quantity Selling Price Total Cost

Tarpaulin 5 240 1200 per year
Customized Stickers 25 7 175 per year
Flyers 1000 1 1000
Online Promotion 1 990 per month 990 per month
Table 1 Galicayo Floating Restaurant Production Promotion

Products

Seafood Special

Product Name Description Price

Longganisa fried rice with stuffed squid

in a creamy garlic butter sauce
₱ 79

Longasquid

Longganisa fried rice with fried crab in a

spicy sauce
₱ 89

Longahotcrab

9
 Longganisa fried rice with stuffed crab
meat
₱ 99

Longalimasag

Longganisa fried rice with pinaputok na

bangus
₱ 69

Longatok

Longganisa fried rice with grilled

eggplant with egg and stuffed bangus
₱ 69

Longabang

Longganisa fried rice with shrimp sisig

₱ 89

Longasig
Table 2 Seafood Special Products of Galicayo Floating Restaurant

Filipino Favorites (add ons)

Product Name Description Price

A recipe of thinly sliced sirloin beef stir-

fried with onions and cabbage
₱ 59

Pigar-pigar

10
 A recipe of deep-fried pig trotters or
knuckles served with a soy-vinegar dip
₱ 69

Crispy Pata

A recipe of steamed or boiled vegetables

such as carrots, broccoli, cauliflower, etc.
₱ 29

Buttered Vegetables

A recipe of mixed vegetables steamed in

a fish or shrimp sauce
₱ 29

Pinakbet
Table 3 Filipino Favorites of Galicayo Floating Restaurant

Drinks

Product Name Description Price

A refreshing drink that uses fresh juice

from the coconut fruit
₱ 39

Buko Juice

11
 ₱ 59
A creamy beverage made from pureed
raw fruits

Fruit Shakes
Table 4 Beverage Products of Galicayo Floating Restaurant

Statement of the Problem

This research paper is intended to evaluate the feasibility of the Floating Restaurant

in Alaminos City, Pangasinan through studying the stability of the market demand of the

business in the location. Moreover, it aims to deal whether the business will withstand for

a long period of time while providing a maximum net income the business can generate.

Thesis Statement

It will be profitable to establish a kind of Pangasinan theme floating restaurant in

Alaminos City, Pangasinan.

Alaminos City, Pangasinan is widely known for being the home of the Hundred

Island National Park (HINP). It has been the main tourist attraction of the said city. This

place offers various activities in which people, visitors and tourists of different places can

experience such as diving in the blue-green waters, relaxing at the coves, marveling at the

caves, ziplining, jet skiing, banana boating, kayaking, snorkeling and even trying the

different delicacies of the city at affordable prices.

12
 According to Hilda Austria, a member of Philippines News Agency, HINP had

561,000 domestic and international visitors for the entire 2017 which is higher by more

than 100,000 from the 451,000 tourists recorded in 2016. From this total number of visitors

of 2017, the city government has earned a total income of 42 M which has been a great

return that the government can use for the betterment of the island. We take into

consideration the following aspect that can be used for solving the problem.

Marketing Aspect

A wide variety of business styles with unique, aesthetic and beneficial values

continuously prospers in the market today which creates a pervasive influence in the

patronage of the consumers and even the entrepreneurs. One flourishing example of this is

the restaurant businesses where most consumers enjoy and prefer dining in to satiate their

hunger, but people are also after in deriving satisfaction in savoring the entire meal

experience in a captivating ambiance. Indeed, people tend to patronize this business style

which eventually results to the booming trends of this business such as the Floating

Restaurants. The floating restaurant industry is expected to boom in the upcoming years

for it is the latest and most amazing business ideas which have high market demands

(Floating Restaurant Business, 2018).

The restaurant will be endorsed through social media applications, official website,

and tarpaulins that will be put up on the main roads going to Alaminos. There will also be

a promo for those who will reach a certain amount of bill which serves as an additional

added value element wherein this promo will include the free use of snorkeling gears for

an enjoyable experience, and floating devices that are perfect for capturing some

photographs. The team will also take pictures to document the experience that our satisfied

13
customers had and those will be uploaded on our social media accounts and the official

website of the Galicayo Floating Restaurant.

Technical Aspect

The Galicayo restaurant which is situated along the shoreline together with the

floating cottages will be primarily established out of the bamboos for the structure which

happened to be abundant in Alaminos City, drums for devising the floating business, and

roofs made out of anahaw. Moreover, the interior design will be meaningful and

aesthetically pleasing as it showcases the beauty of Pangasinan by adding wallpapers and

decorations related to the province.

Furthermore, the Galicayo Restaurant will then be known for promoting the

Filipino Kamayan Culture as it will become one of the highlights in the entire dining

experience. It also seeks to feature the service in terms of food products preparation where

the chefs will definitely offer innovated but palatable delicacies out of the seafoods of

Pangasinan with a combination of longganisa fried rice which will then be presented

attractively for the customers. Moreover, other homemade dishes and desserts are also

offered to satiate the cravings of the customers. With this kind of dining experience, it will

surely create a mark where the customers will continuously patronize the business.

Socio-Economic Aspect

Aside from profits, the project has also other social and economic contributions.

For the government it is in the form of tax and the promotion of Pangasinan culture while

for the people, the business creates employment to the unemployed.

14
Scope and Delimitation

This study of the "Galicayo Floating Restaurant" focuses only on the profitability,

marketing, and financial aspect of the business. The qualitative research design is to be

used and the data gathering instrument will be through interview. The area of the study is

in Alaminos, Pangasinan where tourists and residents will serve as the respondents.

The study will use a sample of twenty (20) participants, wherein ten (10) residents

of Alaminos will be interviewed, while the remaining ten (10) participants are tourist on

the said location. The age of the participants will range from eighteen (18) to forty-five

(45) years old.

Theoretical Framework

The study of the business’ demand aspect will particularly focus with the stability

of the target market’s demand. This area will deal on providing the quantity of people who

are willing and capable of buying the products offered. Also, it will answer the regularity

of the target markets’ purchases.

The study of the business’ profitability aspect gives concentration on determining

the buying power of the target market. This part will ensure that the prices of the products

offered by the business suit with the purchasing power of the consumers.

The study of the business’ feasibility aspect is the combination of the target market

demand and profitability aspect. This will prove that the business is feasible through

analyzing the consistency of the target market demand and the profitability of the business.

15
Swot Analysis

STRENGTHS WEAKNESSES

 Unique Products  Daily Transportation Cost of

 Location Employees and Transportion cost

 Ambiance and the uniqueness of the  Cost Supplies

Restaurant  Requires a high capital (400 000 php)

 Events and different water activities  Lean Business during the rainy season

that is also available in the restaurant.

OPPORTUNITIES THREATS

 Rising Demand of Floating  Government Regulations

Restaurants  Low demands during rainy seasons

 Can be a major contributor in  High competition with the area

promoting tourism  Changing demands of target

 It can promote Pangasinan Products customers

 Best for its target location

 Accessible consumer

Figure 10 SWOT Analysis

The strengths of the business include the unique products that based is from the

Pangasinan’s Finest Products. Also, the activities and events of the business make it more

attractive and can result into a more customer-oriented business. The location of the

restaurant is also a strength for it can offer convenience to the customers.

16
 The weaknesses of the business are the daily transportation cost of its employees

since the location of the business is on the island and the transportation cost of supplies

that will be used in the business. To overcome the weaknesses the business has, we are

consider owning a boat in order to lessen the expenses in the long run. Also, as weakness

it requires a high capital (400, 000 php) to start this business.

The opportunities of the business include the rising demand of Floating Restaurants

for it offers not only a meal but as well as a good dining experience. The location also

provides plenty of target market consumers since Hundred Islands National Park is one of

the tourist spots in the Philippines. The restaurant can also promote more tourism activities

in the location. Additionally, the changing demands of target customers and low demand

during rainy season reduce our profit.

The threat of the business is the Government Regulations since the location is an

environmental protected area which means it has a strict policies on doing business in the

said location

17
Five Porter’s Forces Model

Bargaining
Power of
Customer --
LOW

Bargaining COMPETITIVE Threat of

Power of ADVANTAGE -- Substitutes --
Supplier -- MODERATE HIGH
MODERATE

Threat of New
Entrants --
HIGH

Figure 11 Five Porter’s Forces Model

Bargaining Power of Customers- Low

The bargaining power of customers is low because Galicayo Floating Restaurant

has fixed prices of products. Accordingly, customers do not have the power to bargain or

change the prices in purchasing products.

Bargaining Power of Suppliers- Moderate

Moderate because the business will purchase it's its supplies where the raw products

have high supplies to ensure the low prices of products and not on its locality which has

higher prices.

18
Threats of New Substitutes- High

Galicayo Floating Restaurant has high substitutes because the supplies of the

business are products from different town of the province. Therefore, lots of restaurants,

carinderias, and supermarkets offers the same products.

Threats of New Entrants- High

It is high because the said business requires high capital and not common on the

location of the study. Also, our business is only new to many people, so others can easily

benchmark our strategies and business style.

Competitive Rivalry- Moderate

The competitive advantage is moderate because the location of Galicayo Floating

Restaurants provides high competition among the substitutes and other established

restaurant businesses. However, the competitive advantage of the product includes the

innovation of the raw products coming from the different town. Also, the business will

offer different activities such as snorkeling, swimming and etc.

Research Paradigm

Profitability Feasibility
Demand Aspect
Aspect Aspect

Market Buying Stability of Market Combination of

Power and Demand demand and income
Figure 12 Research Paradigm

19
Capital Distribution and Operating Hours

The business will operate for 8 hours every day from 8 o’clock in the morning to 4

o’clock in the afternoon. This time span provides best market of meals especially during

lunch time and afternoon. .

Initial Capital Requirements

Name of Partners Initial Contributed Capital

Bucaloy, Romel B. Php 50, 000
Curaming, Faye Cecil P. 50, 000
Dela Cruz, Cherrie Mae S. 50, 000
Dela Cruz, Ravene Jhoi D. 50, 000
Flores, Elma T. 50, 000
Opaque, Ronajean P. 50, 000
Romero, Fernan A. 50, 000
Soriano, John Edward P. 50, 000
Valdez, Darlyn F 50, 000
Vinluan, Theresa Joy C. 50, 000
Total Initial Capital Php 500, 000
Table 5 Initial Capital Contribution of each Partner

The table shows that the business will be established as a partnership composed

of ten(10) partners and each of them will contribute a Php 50,000 initial investment

which will yield to a total capital for the business of Php 500,000.

Initial Capital Allocation to Cost and Expenses

Item Total Cost

Supplies Php 29,440
Raw Materials 13,900
Construction Cost 29,700
Interior Design Construction Cost 23,060
Property, Plant and Equipment 76,800
Advertisement Cost 3,365

20
 Legal Requirements/ Permits 8, 640
Rentals 100,000
Contingency Fund 215,095
Total Capital Allocation Php 500,000
Table 6 Initial Capital Allocation of Startup Cost Summary

The tabble shows the initial capital allocation of startup cost wherein it shows the

capital investment of Php 500,000 in total. The Php 284,905 is allocated for necessary start

up expenditures and the remaining is allocated to contingency fund for Php 215,095.

Galicayo Floating Restaurant

Breakdown of Startup Cost Expenses
Supplies
Supplier Quantity Unit Price Cost
Grill CSI Lucao 1 250 250
Tongs CSI Lucao 3 40 120
Mixing Bowl CSI Lucao 2 250 500
Whisks CSI Lucao 2 35 70
Set of Pan CSI Lucao 15 700 10500
Set of Spatula CSI Lucao 7 75 525
Rattan Plates CSI Lucao 50 30 1500
Mops CSI Lucao 1 300 300
Chef knives CSI Lucao 13 25 325
Pitcher CSI Lucao 2 500 1000
Cleaning Rags CSI Lucao 5 30 150
Hand Soap CSI Lucao 1 200 200
Inflatable Swimming Lazada Online Shop 15 200 3000
Floaters
Swimming Gears Lazada Online Sho 15 300 4500
Sub-Total Php 29,440
Raw Materials
Perishable Supplies Supplier Quantity Unit Price Cost
Bangus Alaminos Public 900
Market 10 90
Shrimp Alaminos Public 1960
Market 7 280
Crab Alaminos Public 1200
Market 8 150
Squid Alaminos Public 1500
Market 10 150
Carabeef Alaminos Public 1960
Market 7 280

21
Pork Alaminos Public 1540
Market 7 220
Eggplant Alaminos Public 140
Market 20 7
Okra Alaminos Public 140
Market 20 7
Bittergourd Alaminos Public 280
Market 40 7
Squash Alaminos Public 420
Market 60 7
Beans Alaminos Public 210
Market 30 7
String beans Alaminos Public 280
Market 40 7
Cauli flower Alaminos Public 840
Market 7 120
Broccoli Alaminos Public 1050
Market 7 150
Potato Alaminos Public 420
Market 7 60
Carrots Alaminos Public 350
Market 7 50
Tomato Alaminos Public 70
Market 7 10
Onion Alaminos Public 160
Market 4 40
Garlic Alaminos Public 280
Market 7 40
Ginger Alaminos Public 100
Market 2 50
Pepper Alaminos Public 100
Market 1 100
Total Php 13,900
Construction Cost
Supplier Quantity Unit Price Cost
Bamboos (includes Alaminos 500 - Php 10,000
delivery expense)
Ropes Alaminos Public 4 roll 1500 6,000
Market
Drums Alaminos Public 12 500 6,000
Market
Nails Alaminos Public 2 kilo 100 200
Market
Anahaw Alaminos 5 300 1,500
package

22
Capitalizable Labor Cost - 6 (two 500 6000
weeks)
Sub- Total Php 29,700
Interior Design Construction Cost
Supplier Quantity Unit Price Cost
Lightbulb CSI Lucao 5 260 Php 1,300
Shell decorations CSI Lucao 3 100 300
Front desk CSI Lucao 1 5000 5,000
Chairs and tables CSI Lucao 4 3750 15,000
Frames CSI Lucao 6 200 600
Wallpapers CSI Lucao 6 100 600
Welcome signage CSI Lucao 1(226x2) 260 260
Sub- Total Php 23,060
Property, Plant and Equipment
Supplier Quantity Unit Price Cost
Ventilation Wilcon Depot 1 16,000 Php 16,000
Freezer Wilcon Depot 2 17,000 34,000
Oven Robinsons Place 2 11,000 22,000
Glass Blender Robinsons Place 3 1,600 4800
Sub- Total Php 76,800
Rentals
Quantity Unit Cost Total Cost
Prepaid Rent - 1 Month 100,000 Php 100,000
Advertisement Cost
Supplier Quantity Unit Price Cost
Tarpaulins Printwise 5(2x6) 240 1200
Flyers Printwise 1000 1 1,000
Customized Stickers Printwise 25 7 175
Online Promotion - 1 990 990/month
Sub- Total 3,365
Legal Requirements/ Permits
Quantity Unit Price Cost
SEC Registration Fee - 1 5,600 Php 5,600
FDA - 1 2,000 2,000
BIR Registratiom - 1 500 500
Mayor’s Permit - 1 200 200
Business Permit - 1 200 200
Barangay Clearance - 1 50 50
Health Certificate - 1 50 50
Fire and Safety - 1 40 40
Sub- Total 8, 640
Total Cost 284,905
Contingency Fund 215,095
Total Startup Cost Php 500,000
Table 7 Startup Cost Breakdown Allocation

23
 This table shows the breakdown of startup cost expenses where partners allocated

their investment to the kitchen supplies or the utensils to be used in the execution of the

business course; the raw materials or the goods to be processed and consumed in the

production process; the construction cost and interior design costs to be used in establishing

the business; the property, plant and equipment to be used in the operation of the business;

the advertisement costs to market the product and increase the business’ market share; the

legal requirements for security and formality purposes, and the contingency fund to help

the business in times of uncertainties.

Significance of The Study

This study gives consumer a new eating experience and new ways in exploring the

Hundred Islands National Park.

This section will provide a brief description on the various significances of the study given.

To the customers. The customers will benefit in the study because they can experience

new ways to explore Hundred Islands National Park and various unique Pangasinan dishes

at the same time. Provides quality and satisfying dishes and experience with reasonable

price to the customers.

To the Researchers. The researchers will be equipped with necessary knowledge that they

can use in their profession someday. It will help enlighten their thinking to the reality of

business especially as we walk towards the path of business world. It will also widen their

knowledge on how a restaurant in a tourist attraction place operates compare to other

restaurants.

24
To the Tourists. It will serve as a stepping stone for them to discover more of the culture

and foods of Pangasinan. It will also serve as a new attraction and a reason to come back

to Hundred Islands National Park.

To the Fishermen. The study will help the fishermen to engage in producing and

harvesting more fish and seafoods, we are not only selling but also helping the fishermen

to promote their products.

To the people of Alaminos. This study can also give employment to other people of

Alaminos thus, helping them earn for themselves.

Definition of Terms

Anahaw - a round-leaf fountain palm found in Southeast Asian countries.

Bamboo - a giant woody grass that grows chiefly in the tropics, where it is widely

cultivated.

Floating restaurant - a vessel, usually a large steel barge, used as a restaurant on water.

Galicayo - a Pangasinan dialect which means "come here".

Governor's Island - most developed and most visited island in Alaminos City, Pangasinan

which catered mainly for picnickers and campers.

Kamayan Culture - the act of eating by hand or a traditional meal during a feast served

family style, usually over banana leaves.

Longganisa - Philippine version of the Spanish sausage which is a breakfast staple in

Filipino homes.

25
 CHAPTER II

REVIEW OF RELATED LITERATURE

Restaurant Entrepreneurship

Restaurant business’ model is based on offering and serving food. It has been

considered as a flourishing food industry which constantly evolves to meet and serve the

demands of the customers in terms of food. Like any other industries, this sector exists to

seek for profit maximization, to offer an astonishing experience for the customers, and to

express the culinary visions and talents of the chefs. Indeed, restaurant industry seeks to

provide a satisfying customer experience that includes delectable delicacies and pleasing

ambiance while taking into consideration the efficient way to earn (Gartenstein, 2012).

As the demands of the Filipino consumers continuously rise, the country's food

industry becomes the highlight to cater and meet with these ever-changing demands and

the today's fast-paced lifestyle of the Filipino (Ferrolino M. L., 2018).

According to the latest formal audit conducted by Department of Trade and

Industry (DTI), it revealed that as of the beginning of 2016, there were approximately 6,652

full-service restaurants, 4,477 fastfood restaurants, 3,772 food kiosks, 3,748 cafeterias, and

1,445 bars & pubs operating in the country. The survey further showed that the food

industry generated robust revenues throughout the period of audit. Full-service restaurants

generated the most gross income. It only shows that restaurant business is still a good

choice despite of a large number of competitors (Masigan, 2017).

Over a hundred million population on the Philippines, a food business is believed

to be the most in demand and have the least certainty to fail. According to

26
BusinessWorld, there are three clarity of concept that most restaurants overlooked. The

first one is the category of the business. Whether a fine dining, a fast food chain, casual

dining, etc. Having an idea of what category you belong to generates idea to provide new

experiences. The second one is the theme of the restaurant. It could be focused on Japanese

cuisines, native cuisines, etc. Lastly, is the competitive advantage or the edge among a

variety of competitors to survive the competitive industry (Masigan, 2017).

Floating Restaurant as the Latest Trend

In the last few years, floating restaurant had become one of the latest business ideas

which generated great market demand. This provides a new experience for customers to

dine out and enjoy the view of the water that surrounds them. Floating restaurants are

usually built on a large flat steel barge floating on water. Retired ships are usually renovated

as floating restaurants. This sector continues to grow and reach its peak due to increasing

disposal income and improving living standard in urban areas. Thus, floating restaurant

business achieves a favorable market potential and opportunity (Floating Restaurant

Business, 2018).

Seafood Trends in the Philippines

Being located in the middle coral triangle which stands for its marine biodiversity

and rich production of seafood, Philippines has always been abundant with rich fish

resources. Due to being one of the longest coastlines in the world, most Filipinos living

along the coast prefer to take the opportunity of having these resources for both nutrition

and livelihood. Indeed, it is undeniable that the number of Filipinos working in fisheries

27
sector has been estimated around 1 million which brings the business of fishing to be one

of the highlights in the economy and culture of the archipelago. (DumagueteInfo, 2015).

Besides, the status of fishing industry and production in the Philippines have made

the Filipino folks to develop fondness in their shared common preference of eating

delectable seafood dishes in the country. These seafood products include bangus tambakol,

espada, tangigue, cream dory, yellow fin tuna, many varieties of prawns, oysters, squid,

mussels, crabs, lobster, sea cucumber, seaweed and many others. (DumagueteInfo, 2015).

Furthermore, fish and other seafood products keep on gaining popularity because

of its sources of nutrition and Filipino culinary culture. With this seafood trends, it

eventually led to the booming seafood restaurant industries in the Philippines wherein it is

definitely a style of a restaurant business that offers and specializes in different seafood

cuisines and dishes (DumagueteInfo, 2015).

Customer’s Perspectives and Satisfaction to a Restaurant

According to Abdelhamied (2011), apart from food as a key factor of the dining

experience, quality of the services and environments do matter. Food quality was measured

with three items: taste, nutrition, and sanitation. Customer satisfaction also significantly

relates to good presentation, food freshness, menu variety, and food temperature. On the

other hand, service quality was measured with four items: speed and service efficiency,

kindness and concern, communication skills, and professional service. The findings in

previous food service studies provide empirical evidence of a positive relationship between

service quality and customer satisfaction. For example, a restaurant patron with positive

perceptions of service quality is likely to have a high level of satisfaction, and form positive

28
behavioural intentions, such as repurchasing or return patronage and providing positive

word-of-mouth.

Fisheries Production of Region 1 as of the 4th Quarter of 2018

Fisheries production has been defined as the quantity of fish unloaded in the landing

center, caught in inland bodies of water and/or harvested/produced from aquafarms which

is usually presented in metric tons. In terms of it, latest update indicates that the overall

fisheries production in Region I is increased by 2.5 percent in 4th quarter 2018 with a total

out of 63,428 metric tons in 4th quarter 2017 to 64,989 metric tons in 4th quarter 2018.

The update states that the provinces of La Union and Pangasinan have posted increments

in their output (Philippines Statistics Authority, 2019).

Table 1. Volume of Fisheries Production by Province and Sector, Region I 4th Quarter

2017, and 4th Quarter 2018

The table presents the breakdown and the changes in terms of the fisheries volume

production in the 4th quarter of 2018 and 2017. As shown in the table, Pangasinan has raised

2.4 percent change in its overall production from the total output of 58,999 metric tons in

the 4th quarter of 2017 to 60,327 metric tons in the 4th quarter of 2018. Its significant

positive change will yield to support the different fisheries activity concerned with taking,

29
culturing, processing, preserving, storing, transporting, marketing or selling fish and fish

products (Philippines Statistics Authority, 2019).

Kamayan Filipino Culture

For several years, the Philippines had been colonized by Western Countries and

other nationalities which eventually led to the passage of wide cultural influence all over

the archipelago, but that didn’t mean that Filipinos have no self-identity and culture to be

exalted. Particularly, Filipinos are known to be family oriented for they tend to value the

moment of togetherness with their loved ones especially when enjoying their meal together

(Rappler, 2018). .

Filipinos love food, and they tend to express it by their unique way of eating which

pertains to “Kamayan Filipino Culture.” It tells about a practice of a Filipino of “eating

using your hand” which is continuously passed on for generations. Moreover, a survey

shows that Filipinos prefer this kamayan culture during special occasions like fiestas,

birthdays and reunions for the act of using our hands to connect with our food allows us to

better appreciate it (Rappler, 2018).

According to Lifestyle Inquiry (2018), “Kamayan Filipino Culture” bonds people,

it is also believed that this culture makes eating more fun. It offers everyone a sensory

experience; it is a part of Filipino tradition that truly evokes everything great about being

Filipino-samahan, community, love of food, fun and life. Lastly, this culture just makes

food taste better as depicted by the likelihood of the Filipinos who would agree that eating

30
with bare hand makes food taste a lot better as brought by either psychological or cultural

affect.

Alaminos City, Pangasinan : Home of Longganisa

According to Province of Pangasinan (2018), Alaminos City is the 4th largest city

in terms of economic status in the province. With its strategic location, Alaminos is the

center of commerce, finance, education, industry and services in the Western Pangasinan.

It is projected that 250,000 annually will bring about P1B in gross receipts.

According to Pangasinan Hub (2018), it envisions Alaminos City as a trade,

commercial, political and religious center of Pangasinan due to its proximity to the main

locations for business in the province, Dagupan City and Lingayen.

According to the Strategic Development Plan for the City of Alaminos, Pangasinan

(2005), Alaminos City is known for its progressing economy in the recent years which

primarily generated from its tourism sector. Tourism is fully revived to provide gainful

employment and revenue for the city. The innovation of Hundred Islands National Park

(HINP) as an eco-adventure and tourist destination will place the city in the market as the

ideal, accessible and affordable destination. The HINP is continuously maintained and

enhanced to preserve its biological and ecological attributes. Alaminos City is known for

its progressing economy in the recent years which primarily generated from its tourism

sector. Tourism is fully revived to provide gainful employment and revenue for the city.

The article Rediscover Alaminos (2015) states that with the number of tourists that

visit the Hundred Islands National Park every year and the investment opportunities in the

city, Western Pangasinan became the new century's boom area for business.

31
 Aside from the city was known for its majestic and world famous hundred Island

National Park, this city also boosts of its unique lean meat product caller longganisa.

Alaminos' longganisa has long been an all-time favorite by Pangasinenses. Commonly, it

is served during breakfast and it was regarded as one, if not, the tastiest native sausages in

the country (Asenso Pangasinan, 2010).

CHAPTER III

METHODOLOGY

In this chapter, you can see the research design, sampling, participants and locale

of the study, procedures, and measures to be used in gathering and analyzing data for the

research study.

Research Design

We used the descriptive research design for the qualitative information to discover

the data of consumer demands, profitability and feasibility of the business, to discover how

appropriate the location, environment and setting of the business, and to understand the

nature of the business. Also, we used the non-standardized or non-focused researching

design to be more convenient with the participant because questions are editable and/or

adjustable depending on the situation of the subject. It also allows follow-up questions if

there are necessary information that we think the subject can answer. We also used the

32
purposive sampling to make sure that they will get the necessary information needed in the

study.

Data Gathering Instrument and Actual Procedure

We will prepare set of questions to determine the feasibility of the Floating Restaurant in

Alaminos City, Pangasinan. Along the given area, the research subjects will ask to choose

their preferred response. We will use pens, papers, cameras, and voice recorders.

First, we will prepare the instrument that will be used during the interview. We will make

use of pens, papers, cameras, and voice recorders. Afterwards, we will brief the participants

of what they are going to do as well as the set of questions that will be possibly asked (See

Appendix B). Appendix B consist of ten questions for our participants that will be divided

into five (5) questions for the customers and five (5) questions for the owners. First five

(5) questions are for fhe customers, considering the different aspects that attract them the

most in eating in a seafood restaurant, how much they are willing to pay for a floating

restaurant, and if they are willing to try new establishment like a floating restaurant. The

last five (5) questions are for the owners, tackling the factors they consider before opening

this kind of business since the floating restaurant needs large capital and marketing tools

they used in attracting customer. Also, the set of question tackles their competitive

advantage, pricing strategies, experiences that their business encountered and on how they

maximized their profit. We expect both customers and owners to give us answers that will

help us to solve our given statement of the problem and help us to attain our objectives.

After, we will start the interview with proper ethics but we will ask first the permission of

the participants if we can record the conversation. If the participants agreed, then we will

33
record the conversation (See Appendix A). Finally, we will debrief them and tell the

purpose of the interview (See Appendix B).

Sampling

We will use the purposive sampling in gathering necessary information for the

qualitative process. This sampling allowed us to have the data needed because the

respondents are knowledgeable about the research which proves the profitability and

feasibility of the proposed business concept. The purposive sampling will be focused on

the tourists visiting the national park as well as locals.

Participants and Locale of the Study

For the interview, there is a total of fifty of participants. This includes forty-five

tourists, and five restaurant owners in the vicinity of Alaminos City.

Measures

The following are the measures we will be using in conducting the interviews:

Consent Form

We will provide an informed consent to be signed by the participants. The consent

form contains the agreements and necessary information needed by the participant before

participating on the interview. Also, it will certify the voluntary participation of the

respondents on the study of the researchers (see Appendix B).

Interview Questionnaire

34
 The interview questionnaire that we will going to use is the semi-standardized form

of questionnaire. In this form of questionnaire, we can give follow-up questions aside from

the prepared questionnaires depending on the answer of the respondents. It consists of

questions regarding the business for the owners, market demand for customers, and

requirements to operate for the government officials and (see Appendix A).

Appendix A

Questionnaire

For the Customers:

 What are the marketing strategies that attract you the most?

 What are the things you consider in eating in a restaurant?

 What range of prices are you willing to pay in a seafood floating restaurant?

 Have you experienced eating in a floating restaurant?

35
  Are you willing to try newly establish restaurants? Why or why not?

For Restaurant Owners:

 What are the factors you considered in opening your business?

 What is the most effective marketing tool you have used?

 What do you think the competitive advantage of your business to other

competitors?

 Have you experienced net loss? If so, how did you overcame this situation?

 What are the factors you consider in maximizing your profit?

 Based from your experience, does demand of your product increases? Why or

why not?

Appendix B

Consent form

Dear Participants,

We would like you to participate in our study entitled Galicayo Restaurant.

However, before consent to be a volunteer, we want you to read the following and ask

36
many questions as necessary to be sure that you understand what your participation will

involve.

The names of the students conducting this research are Romel B. Bucaloy, Faye

Cecil P. Curaming, Ravene DG. Dela Cruz, Cherrie Mae S. Dela Cruz, Elma T. Flores,

Ronajean P. Opague, Jose Fernan A. Romero, Eduard P. Soriano, Darlyn F. Valdez, and

Theresa Joy C. Vinluan. The faculty member who is supervising this research is Mr. Raul

R. Serafica.

The purpose of the study is to know whether it would be feasible to establish

Galicayo Restaurant in Alaminos City, Pangasinan.

If you agree to participate, it will take around 20 to 30 minutes of your time and

you will be ask more of your experience and knowledge that could help us in this study. A

total of 20 participants will be involved in this study. There are no major risk found in this

study though there are some questions that might make you uncomfortable.

Results gathered from this study would help us researchers in knowing if it would

be feasible to established Galicayo Restaurant in Alaminos City, Pangasinan. You have a

right to privacy and all information identifying you will remain anonymous and

confidential. Your answers on all questions will be analyze by the researchers and only the

researchers will have access to the names. No identifying information will appear on any

material. Any information obtained in connection with this research that can be identified

with you will remain confidential and will not be disclosed without your permission or as

required by law.

37
 If you have any questions you can contact Mr. Romel B. Bucaloy, Ms. Faye Cecil

P. Curaming, Ms. Ravene DG. Dela Cruz, Ms. Cherrie S. Dela Cruz, Ms. Elma T. Flores,

Ms. Ronajean P. Opague, Mr. Jose Fernan A. Romero, Mr. Eduard P. Soriano, Ms. Darlyn

F. Valdez, and Ms. Theresa Joy C. Vinluan at 09151396242, 09278970026, 09152762478,

09480465422, 09983435782, 09980383395, 09052731879, 09774354801, 09987656469,

09284083925 respectively at any time. Please feel free ask any questions you may have

before signing this form.

Your participation in this study is voluntary. You may refuse to participate or

withdraw once the study has started. You will not use any benefits to which you are

otherwise entitled nor you will be penalized. We have tried to explain all the important

details about the study to you. If you have any questions that are not answered her, the

researchers will be happy to give you more information.

My signature below indicated that I have read the above information and I have had a

chance to ask questions to help me understand what my participation will involve. I agree

to participate in the study until I decide otherwise. I acknowledge having received a copy

of this agreement. I have been told that by signing this consent form I am not giving up any

of my legal rights.

___________________________

SIGNATURE OF PARTICIPANT OVERPRINTED NAME

DATE ______________________

38
SIGNATURE OF RESEARCHERS:

ROMEL B. BUCALOY FAYE CECIL P. CURAMING

RAVENE JHOI DG. DELA CRUZ CHERRIE MAE S. DELA CRUZ

ELMA T. FLORES RONAJEAN P. OPAGUE

JOSE FERNAN A. ROMERO JOHN EDUARD P. SORIANO

DARLYN F. VALDEZ THERESA JOY C. VINLUAN

NOTED:

MR. RAUL SERAFICA

Research Adviser

RECOMMENDING APPROVAL
_____________________________
AUGUSTUES P. LAMBINO
Academic Dean

39
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