A Feasibility Study

Of
Fry Express

In partial fulfilment of requirement

For the degree of
Bachelor of Science in Business Education
Ryan Zeus L. Recto
Michael Joshua Dalid
Lovely Mae Soriano
Jamil Ahamil

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 Table of Contents

CHAPTER 1: EXECUTIVE SUMMARY

A. Name of the Business
B. Title of the Study
C. Store Location
D. Description of the Logo

E. Brief Description of the Project

F. General Objectives of the Business

G. Research Methodology

-G.1. Survey

-G.2. Sampling Techniques

-G.3. Survey Techniques

-G.4. Interview

-G.5. Research

H. Project Summary

-H.1. Market Summary

-H.2 Technical Summary

-H.3 Management Summary

-H.4 Financial Summary

I. Operational Terms

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J. Scope and Limitation

Chapter 2: Market Study

A. Demand

- Target Market

- Target Market

- Historical Demand

B. Project Demand

- 5 year Forecast Population

- 5 year Forecast Consumers

- 5 year Forecast Demand

C. Supply

- Project Supply

- Demand Gap Supply Analysis

D. Marketing Strategy

- D.1. Product Strategies

- D.2. Place Strategies

- D.3. Pricing Strategies

- D.4. Promotion

D.4.1. Poster

D.4.2. Website

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 D.4.3. Flyers

Chapter 3: Technical Study

A. Product Description

A.1. Product Pricing

A.2. Product Preparation Guide

A.3. Time Preparation Guide

B. Business Process

C. Business Location

D. Machineries and Equipment

E. Utensils

F. Furniture and Fixture

G. Supplies

A. Office Supplies

B. Sanitary Supplies

H. Utilities and Requirement

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 H.1 Electricity

H.2. Water

H.3. Telecommunications

H.4. LPG

I. Waste Disposal Method

J. Labor Requirements

K. Scheduling Labor

L. Floor Plan

Chapter 4: Management Study

A. Form of Ownership

B. Vision, Mission, Core Values

B.1. Mission

B.2. Vision

B.3. Core Values

C. Capitalization

D. Organizational Chart

E. Manpower Requirements

F. Organizational Policies and Procedure

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F.1. Employment

F.1.1. Employment Requirements

F.2. Classification Employees

F.2.1. According to Rank

F.2.2. According Status

F.3. Orientation

F.4. Personal Records

F.5. Contact of Employment

F.6. Work Schedule

F.7. Tune Keeping

F.8. Attendance and Punctuality

F.8.1. Attendance

F.8.2. Punctuality

F.9. Personal Movement and Performance Evaluation

F.10. Separation from Service

F.10.1. Voluntary Resignation

F.10.2 Termination

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 F.11. Compensation & Benefits

F.11.1 Salaries & Wages

F. 11.2. Overtime Pay

F.11.3. Cancelled Day off/Holiday

F.11.4. 13th Month Pay

F.11.5. Paternity and Maternity

F.11.6. SSS/PHIC/HDMF benefits

F.11.7. Hospitalization Plan

F.11.8 Accident Insurance

F.11.9 Retirement Benefits

F.11.10. Bereavement Assistance

F.11.11 Other Incentives & Awards

I. Code of Ethics

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 I.1. Hygiene and Sanitation

I..2. Arrival and Departure of Employees

I.3. Procedure for Notices/Bulletin Boards

I.4. Notice of Disciplinary Action

I.5. Code of Conduct

I.5.1. Kind of Penalties

Chapter 5: Financial Study

A. Statement of Comprehensive Income

B. Statement of Cash Flow

C. Statement of Financial Position

D. Statement in Charges of Partner’s Equity

Chapter 6: Socio Economic Study

A. Socio Economic Contributions

A.1. Contribution to Philippine Economy

A.2. Employment Generation

A.3. Environment Conservation

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CHAPTER 1
EXECUTIVE
SUMMARY

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 CHAPTER 1

Executive Summary

A. Name of the Business: Fry Express

The business proponent is come up with Fry Express as the name of our business.

Fried chicken is our main product and it is also a quick service business. Fried Express

can also be interpreted as one of the food chains but in a food cart that sets the

perception to potential customers that our restaurant serves and offer fried chicken.

B. Title of the Study: A Feasibility Study on Food Cart Quick Service Kiosk

C. Store Location Food Court, Saint Columban College

D. Description of the Logo

Our business came up with this logo because we believed that it can reflect and

represent our main business essence thoroughly.

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 We chose Chicken, a common food, in our logo for the reason that it is our main

product and a most in demand food since some of the students are non-eating pig

meat. Also this food served as the trademark of most Filipinos because it captures their

taste preferences.

E. Brief Description of the Project

The study is about a quick service kiosk catering chicken food as its main dish.

The objective of the proponents in making this business possible is to make an

impression that even it don’t have a famous name or in the fast food chains that we

encounter can also be safe, savory and be complemented to other dishes. 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 customer’s needs and wants.

People in all walks of life can now have the perception that street 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.

F. General Objectives of the Business

a. To offer an affordable but delicious and a satisfying fried food,

b. To line up with other competitors using our unique approach in catering

food services.

G. Research Methodology

G.1. Survey

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 The proponents conducted survey among 260 respondents to get their opinion

regarding our product. These 260 respondents were come from the present population

of Saint Columban College and the survey is distributed among them. It was used so

that the proponents would be able to know their perceptions and preferences regarding

the proposed business.

G.2. Sampling Techniques

The research used the random sampling to gather information from the target

market. Surveys and interviews are conducted to gather further the people’s demand

regarding our proposed business by using specific number of persons or respondents.

G.3. Survey Techniques

In order to have an access on the pertinent information and gather important data

about customer’s taste and preferences when it comes to fried chicken, the researchers

agree to use Questionnaires. In this process, we find it easy and reliable. The

researcher’s used the checklist format. Questions are made for the researchers to get

their personal choices when it comes to our proposed product. By these questions, the

researches will be able to determine the demand of the product. The group provide 300

survey questionnaires which are all in English language.

G.4. Interview

The proponents interviewed relevant people in order to answer questions in addition

to the information gathered by the surveys. We interviewed faculty and staffs to know

their opinions and ideas in dealing this kind of business.

G.5. Research

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 The proponent used the information gathered from the different sites in the internet,

books, and theories of other people as the source of their research in order for them to

gather information about the business, the location, and other information that can help

the study.

H. Project Summary

H.1 Market Summary

The market projection of this business is based on the surveys conducted and

other related information gathered within the Saint Culomban Coolege Campus.

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.

H.2 Technical Summary

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.

H.3 Management Summary

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 Fry Express 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

5 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.

H.4 Financial Summary

The initial investment of Fry Express is P 4,000,000.00 which came from the

partner’s contribution to establish this business. There are no other sources of capital

aside from our contribution and bank loans. 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.

I. Operational Terms

J. Scope and Limitation

The study will tackle the feasibility of a Quick Service food restaurant business that

is located at the mall, also the acceptance of the present and potential customers,

on how well they will respond to these foods served in restaurants that are usually

found in the streets. The respondents are the students belong to the age bracket 18-

24 years old. The competitors that the firm will consider are those fast food

restaurants which are located within the vicinity of Pagadian City.

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INTRODUCTION
OF THE STUDY

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 A. Brief Background of the Study

A food court, is called a food hall, is an area inside of a building which has a number of different
restaurants & snacks bars located around a single area where people sit at. Food courts may be
found in shopping malls, airports, and parks. They may also be found in high schools and
universities, where they replace or are additions to normal cafeterias.

Victor Gruen is credited with the creation of the first modern shopping mall with his 1956B Southdale
Mall in Edina, Minnesota. His malls featured fountains and large trees-things modern malls have
removed over the years. But there is one fixture of the mall that is well known and widely
overlooked, most people don’t realize it was created by a Canadian.

In 1962, Rouse CO. hired Gordon Peck to develop what would become the B Sherway Gardens Mall in
Toronto. Rouse was interested on including a farmers market in the mall, replicating a popular
market in Beverly Hills. The market had multiple restaurants, each with their own seating area,
so if my wife wanted to eat Chinese food and I wanted Italian, we couldn’t sit together.

Food court is composed of a common seating area ringed by multiple outlets and located in a shopping
mall.

Food is what the people eat to survive. Food usually comes from animals or plants. It is eaten by
Living things to provide energy and nutrition. Food contains the nutrition that people need to be

Healthy. The consumption of food is enjoyable to humans. It contains protein, fat,

carbohydrates, vitamins, and minerals. Liquids used for energy and nutrition are often called
drinks. If someone cannot afford food they go hungry

Food for humans is mostly made through farming or gardening. It includes animal and vegetable
sources. Some people refuse to eat food from animal origin, like meat, eggs, and products with
milk in them. Not eating or using any animal products is called veganism.

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 CHAPTER 2
Market Study

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 Market Study

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 to

introduce and market the product, achieve customer’s loyalty and patronage. For the

business to prosper, it should be given time and effort. The proponent of this business

must have the desired creativity so as to be able to provide quality service to its

customers. The fulfilment of the needs and wants of its customers or target market must

be the key objective of the recommended business. 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,

it’s about profit. 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 and consumers 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. In every project, feasibility marketing aspect is

well-thought-out the most important since it requires inconspicuous analysis of the

business total demand and supply.

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Demand

It is very essential to know the demand of our products in order to gather the

needs and wants of our customer. Knowing the demand will help us to determine the

trend for our products. Analysing the demand thoroughly will give the projection of the

total number of quantity of each product that we are going to produce daily, weekly,

monthly and annually.

A.1. Target Market

One factor that is essential in order to know if the business is viable is the target

market. Since the project is in line with food business, the proponents decided that the

students from SCC, Buenavista will be the prospect customers. The table below shows

the student enrolled of randomly picked respondents and respective sample.

Historical Demand

Year Term CB CTEA CC

E S S

1st 2nd 3rd 4rth Total 1st 2nd 3rd 4th Total 1st 2nd 3rd 4th total

2011 1 603 442 266 232 1,543 149 111 88 74 422 143 91 66 125 425

2011 2 505 345 265 251 1,366 136 155 80 54 425 120 85 98 114 417

2011 3 270 157 220 60 707 76 56 51 19 202 19 36 32 36 123

2012 1 707 519 394 291 1,911 235 144 113 103 595 153 119 97 103 472

2012 2 585 475 373 286 1,719 225 138 101 78 542 113 99 84 92 388

2012 3 310 320 159 89 878 121 75 37 21 254 10 58 59 26 153

2013 1 634 531 450 371 1,986 257 200 150 112 719 128 107 88 87 410

2013 2 516 496 519 244 1,775 235 203 155 88 681 86 96 94 74 350

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 2013 3 259 359 297 181 1,096 152 114 61 38 365 10 66 60 39 175

2014 1 569 487 472 493 2,021 290 222 189 151 852 86 76 98 85 345

2014 2 513 450 469 396 1,828 270 211 194 121 796 78 72 99 71 320

2014 3 191 342 369 150 1,052 125 141 102 115 383 10 44 65 33 152

2015 1 645 440 425 517 2,027 303 237 226 172 938 116 61 76 87 340

2015 2 600 439 398 453 1,890 275 121 227 163 876 110 64 76 77 327

2015 3 275 327 269 108 979 111 146 101 43 401 47 44 60 20 171

2016 1 143 529 390 473 1,535 728 226 242 238 784 31 82 55 89 257

2016 2 122 497 399 426 1,444 562 215 225 192 684 21 56 66 65 208

2016 3 50 401 281 89 821 21 127 111 42 301 6 46 45 26 123

2017 1 83 138 464 462 1,147 35 58 236 255 584 24 28 60 59 171

2017 2 84 108 484 421 1,097 21 49 237 197 504 21 15 62 57 155

2017 3 40 63 315 93 511 9 22 102 51 184 13 5 50 16 84

2018 1 447 91 115 518 1,151 156 31 99 254 540 64 15 25 65 169

Table 1: shows the population forecast of SCC-College Department in a accordance with the planned

transition to the SCC-CAMPUS buenavista

B. PROJECT DEMAND

5-YEAR FORECAST SCC POPULATION

NOV, 2018 June,2019-2020 June, 2020-2021 June 2021-2022 June,2022-2023

TO

MAY 2019

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

2 3 1 2 3 1 2 3 1 2 3 1 2 3

HRM 1ST 28 17

CBE 1ST 496 428 20 499 430 205 632 545 260 581 501 239

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CBE 2ND 65 44 374 340 23 397 361 246 491 447 304 468 426 290

CBE 3RD 116 76 383 385 25 374 376 247 402 404 266 402 404 249

CBE 4TH 456 162 273 240 85 289 254 90 300 264 94 384 338 120

CCS 1ST 551 452 88 604 496 96 646 530 103

CCS 2ND 109 102 61 109 102 61 97 90 54

CCS 3RD 69 75 45 75 81 48 75 81 48

CCS 4TH 93 81 30 92 81 30 91 80 29

CTEAS 1ST 182 168 87 186 172 87

CTEAS2ND 190 198 108 152 158 87

CTEAS 3RD 135 131 62 157 153 72

CTEAS 4TH 97 78 22 151 121 35

TOTAL 665 299 162 147 82 244 218 104 330 299 143 339 305 141

1 3 1 6 5 5 9 5 8 0 4 3

Grand total 964 4740 5676 7742 7857

Table 2: shows the population forecast of SCC-College Department in accordance with

the planed transition to the SCC-Campus Buenavista

5-YEAR FORECAST SCC CONSUMERS

NOV, 2018 June,2019-2020 June, 2020-2021 June 2021-2022 June,2022-2023

TO

MAY 2019

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

C 2 3 1 2 3 1 2 3 1 2 3 1 2 3

HRM 1ST 23 14

CBE 1ST 348 300 143 350 301 144 443 382 182 407 351 167

CBE 2ND 49 33 262 238 162 278 253 172 344 313 213 328 298 203

CBE 3RD 90 33 289 291 191 262 263 173 282 283 186 282 283 174

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CBE 4TH 336 119 211 185 66 218 192 68 210 185 66 269 237 84

CCS 1ST 321 263 51 351 289 56 376 308 60

CCS 2ND 63 59 35 63 59 35 56 52 31

CCS 3RD 40 44 26 44 47 28 44 47 28

CCS 4TH 37 32 12 54 47 17 53 47 17

CTEAS 1ST 105 97 50 107 99 50

CTEAS2ND 110 114 62 88 91 50

CTEAS 3RD 78 76 36 91 88 42

CTEAS 4TH 56 45 13 87 70 20

TOTAL 498 199 1110 1014 562 1569 1407 681 2140 1937 944 2188 1971 926

Grand total 722 2685 3659 5022 5088

Table 3: shows the forecast SCCian the Consumers as affected in the transition of SCC- Buenavista

5-YEAR FORECAST DEMAND

NOV,2018

TO JUNE 2019-2020 JUNE 2020-2021 JUNE 2021-2022 JUNE 2022-2023

MAY,2019

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

2 3 1 2 3 1 2 3 1 2 3 1 2 3

HRM 1ST 12 7

CBE 1ST 174 150 72 175 151 72 222 191 91 204 176 84

CBE 2ND 26 17 131 119 81 139 127 86 172 157 107 164 149 102

CBE 3RD 45 17 145 146 96 131 132 87 141 142 93 141 142 87

CBE 4TH 168 60 106 93 33 109 96 30 105 93 33 135 119 42

GVCCS 1ST 161 132 26 176 145 28 188 154 30

CCS 2ND 32 30 18 32 30 18 28 26 16

CCS 3RD 41 22 13 22 24 14 22 24 14

CCS 4TH 19 16 6 27 24 9 27 24 9

CTEAS 1ST 53 49 25 54 50 25

CTEAS2ND 55 57 31 44 46 25

CTEAS 3RD 39 38 18 46 44 21

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CTEAS 4TH 28 23 7 44 35 10

TOTAL 251 101 556 508 282 807 706 338 1072 1011 474 1097 989 465

Table 4: shows the forecast demand for the SCC College students who would avail the proposed FRY EXPRESS food service

C. Supply

Based on the percentage of the population who already availed street foods from our

survey questionnaire, we determined our past supply.

It was multiplied from the percentage of purchases which is 64.70%to the target

population. The increase in supply was also based in the growth rate of population.

Month/Year Percentage of Target Annual

Purchases Population Supply

Nov. 2018-may 64.70% 964 623

2019

June 2019-2020 64.70% 4740 3,066

June 2020-2021 64.70% 5676 3,672

June 2021-2022 64.70% 7742 5009

June 2022-2023 64.70% 7857 5083

Project Supply

● Demand Supply Gap Analysis

This is necessary to determine Fry Express market share. The gap or the unsatisfied

market is obtained by subtracting the projected demand to the projected supply which

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shows the available market for street foods. It also shows the number of persons whom

we need to supply to answer their demand for street foods. We now show the gap for

every product using the data from projected demand and projected supply.

Month/Year DEMAND SUPPLY GAP

Nov. 2018-may 302 623 321

2019

June 2019-2020 1346 3,066 1720

June 2020-2021 1851 3,672 1821

June 2021-2022 2557 5009 2452

June 2022-2023 2551 5083 2532

D. Marketing Strategies

D.1. Product Strategies

Youth of today are fond of eating chicken products. This will serve as the competitive

advantage of our business enable to penetrate to the market. The product of fry express

is chicken, since all the parts of the chicken can be cooked, are Fried Chicken, all part,

and. The products will be cooked in its traditional way in able to maintain the original

taste of these foods, but presenting to the consumers will be quite different. Fry express

wants to emphasize the importance of quality, taste; appearance and presentation

enable to attract customers and to achieve their satisfactions. For takeout products it

will be packed neatly with the condiments needed.

D.2. Place Strategies

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 Fry Express will be located in the St. Columban College is considered to be a

strategic location for a business because the location of the business will be accessible

enough to meet the needs of our target market. Although, the place is far from the heart

of the City, this will have the advantage of us to supply and able to distribute fried

products to the students.

D.3. Pricing Strategies

We used cost plus strategy in order to set the price of our products. The computation

would be: Purchase Cost + Operating Cost+ mark-up=Selling Cost

D.4. Promotion

The first strategy is market penetrate. Fry Express is committed to improving the

customer experience in ways they believe few in the food industry have done. This

business plan to execute a broader marketing strategy, not simply to build name

recognition and awareness but also to build deeper relationships with the target

customers whom they believe will help promote the brand. To reach the target customer

group, we use a mix of the following marketing methods: posters, website and flyers.

Expect to continue to increase media impressions since we are in a new generation of

technology as they strive to build deeper relationships with their customers. We believe

marketing represents an opportunity to create additional competitive advantage.

D.4.1. Poster

Posters will be placed in our store. The design of the poster can able to catch the

attention of the customers because of the information provided as well as its aesthetic.

Chosen colours are pleasing to the eye and will surely boost the interest of the

customers to eat to our restaurant.

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 D.4.2. Website

We are currently living in a world where technology is dominant. The proponents

thought of an idea to use an advantage to promote the store and the product in order to

reach wider range of possible customers by making an advertisement and a website.

This will be of great help for them to know the concept behind Fry Express. This will

provide an easy access to communicate to the consumers and able to know their

opinions and suggestions online.

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 D.4.3. Flyers

Flyers can deliver a wide range of possible buyers for it can be brought to other

places.

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 Chapter 3
Technical Study

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 CHAPTER III

Technical Study

This study discusses about the process of production and the activities of the

business. It states also the machineries and equipment used in the production and other

aspect regarding bringing the raw material into a finished product ready for trade. Plant

lay out size and structures are all presented for the purpose of identifying the business

operation. The list of the tools, equipment and machineries are enumerated, raw

materials are also cited.

General Business Condition

All chicken products and ingredients therefore shall be stored, handled,

transported, and kept so as to protect them from spoilage, contamination, disease, and

unwholesomeness. Boxes and other receptacles or containers, permanent or not, for

the storing, receiving and handling shall be place and constructed or organized

accordingly beyond the reach of any particles causing cross contamination, and shall be

kept clean and sanitized. There shall not be used any products or ingredients or

material, including water, which is spoiled or contaminated, unfit for food. The cart shall

be constructed, drained, lighted, ventilated, and maintained in a clean and sanitary

condition, screened away from the insects, shall have plumbing and drainage facilities,

together with the suitable wash sink which shall be always kept cleaned and sanitized.

No person shall sit or lounge or be permitted to sit, lie or lounge in any tables, counter

top or other equipment or accessories used in connection with the production,

preparation, cooking, packing, storing, or display. Before beginning the work,

preparation, and handling of any ingredients or raw materials, the hands and arms shall

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be sanitized, wash thoroughly before and after, every hour on lukewarm water using

sanitized hand soap, even before and after using the toilet, to ensure the food safety of

the product.

A. Product Description

Fry Express will be producing a known but affordable and easy to cook products

and foods though it is not like the well-known fast food chains but it is way cheaper and

more accessible. Our products consist of different foods and drinks so that the

customer will have the choice they want and making a complete meal. Fried

chicken (also referred to as Southern fried chicken for the variant in the United States)

is a dish consisting of chicken pieces usually from broiler chickens which have been

floured or battered and then pan-fried, deep fried, or pressure fried. The breading adds

a crisp coating or crust to the exterior of the chicken. What separates fried chicken from

other fried forms of chicken is that generally the chicken is cut at the joints, and the

bones and skin are left intact. Crisp well-seasoned skin, rendered of excess fat, is a

hallmark of well-made fried chicken.

Our main foods are chicken products namely Fried Chicken. It can be purchase

individually or by value meal with rice and drinks. The drinks are soft drinks in mismo,

and iced tea in 16oz.

A.1 Product Pricing

Product Ala Carte Meal A Meal B Meal C

(with rice and (with rice and (with rice and

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 drinks) Iced Tea) soft drinks)

Fried Chicken:

Breast, Wing, P20.00 P30.00 P38.00 P45.00

Thigh, Rib, Legs

A.2 Product Preparation Guide

Prep Time: 10 minutes

Cook time: 15 minutes

Total time: 25 minutes

Ingredients:

¼ cup calamansi or lemon juice

1/2 cup of soy sauce

I head garlic, peeled and minced

1 teaspoon of salt

½ teaspoon of pepper

3 pounds of chicken(leg wing thigh or breast)

¾ cup flour

¼ cup corn starch

1 tablespoon of baking powder

Vegetable oil

Instructions:

▪ In a bowl, combine chicken, calamsi juice, soy sauce, garlic, salt, pepper.

Marinate in the refrigerator for about 2 hours to 4 hours maximum.

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 ▪ Drain chicken from marinade and pat fry.

o In a shallow dish, combine flour, corn starch, baking powder, and

salt and pepper. Whisk well.

▪ Dredge chicken in flour mixture to fully coat.

▪ Deep fry the chicken in a 350F until its golden brown, crisp and cook

through.

▪ Drain the chicken to remove excess oil. Serve hot.

A.3 Time Preparation Guide

The total experience time of a customer should not exceed to 4minutes.

a. Greetings 10 seconds

b. Order Taking 25 seconds

c. Receiving Payment and Change 15 seconds

d. Assembling the Order 20 seconds

e. Presenting the Order 15 seconds

B. Business Process

The Fry Express will be open during school hours from 7:00 am in the morning to

7: pm in the evening. The personnel and assigned service crews for the opening

must be at the store one (1) hour before the store is about getting the customer’s

orders to prepare the products being sold on that time. Then there is a set process

for every order on the menu. The customers will fall in line to the counter to give

orders then the service crew will take the orders.

C. Business Location

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 The location will be in the Food Court, Saint Columban College Buenavista

Campus, at Brgy. Buenavista, Pagadian City.

D. Machineries and Equipment

Description Function Quantity Price

Point of Sales Used to input sales and records all 1 P16200

System the transactions

Computer Set Used to store and record data 1 P15500

Vault A secure place where money and 1 P2,699

valuable documents can be stored.

Freezer Stores perishable raw materials and 1 P10,242

products

For freezing purposes

Refrigerator Cooling machine 1 P12,652

Exhaust Fan Sucks hot air for proper ventilation 1 P620

Flour Mixer Used for mixing flour and other 1 P758

ingredients

Rice Cooker Used in cooking rice 1 P2095

Range Hood A device containing a fan that hangs 1 P2410

above the stove or cook top in the

kitchen used to remove smoke,

odor, heat, and steam from the air

E. Utensils

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Colander Used for draining 2 P520

Measuring Cup Used to measure volume of liquid 2 P108

and a bulk solid

Strainer Filter to set aside the small pieces 2 P80

from the large pieces

Frying Pan Used for frying, searing, sautéing 1 P250

Chopping Board used as a surface on which to cut or 2 P178

slice things

Kitchen Knives used to cut different kinds of foods 1 set P100

Tong Used in handling food items 3 P69

Spoon and Fork Used in food preparation to 3 dozen P117

measure, mix, stir and toss

ingredients;

primary utensil used for eating

Spatula used for lifting, flipping or spreading 3 105

substances

Bowl used chiefly for holding food or 2 dozen P192

liquids

Basin used for holding water or washing 2 P90

Plate A broad, mainly flat vessel on which 3 dozen P432

food is served

Pitcher Used to hold water for drinking 3 P147

purposes

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 F. Furniture and Fixtures

Deep Fryer used for deep-frying 2 P900

Fry Basket Used in deep-frying 2 P300

Fluorescent Lamp Used for better ambiance 3 P975

Kitchen Cabinet Used in storing the utensils 1 P2460

G. Supplies

a. Office Supplies

Ball pen Used in writing 3 P15

Calculator Used for computation 2 P150

Logbook Used for recording 1 P45

Stapler Used to compile files 1 P30

Staple Wire Used for stapler 3 P15

Thermal Paper Used to provide receipt to the 5 P160

customers

Bond Paper Used for documentation 1ream P232

b. Sanitary Supplies

Pot Holder used to hold hot kitchen equipment 5 P50

like pots and pans

Cleaning Towel Used to dry hands and for sanitation 5 P50

35 | Page
 purposes

Sponge and Scrubs Used to scrub plates and utensils 12 P96

Dishwashing Liquid Used to clean plates and other 2 P50

utensils

Mop Used to wipe wet floor 1 P95

Mop Bucket Used for mop 1 P95

Broom Used to sweep the floor 1 P45

Dustpan Used to collect dust and waste 1 P45

Hand Sanitizer Used to sanitize the hands 1 P195

Tissue Paper For sanitary purpose 8 P192

H. Utilities and Requirement

H.1. Electricity

It is one of the primary utility requirements of a restaurant business. This will also set

the atmosphere of the restaurant for its proper lighting and ambience. The store

electricity will be provided by the School management for it is included at their monthly

rental payment of the restaurant.

H.2. Water Supply

As the restaurant executes its operations, it needs a good water supply in order for

them to continuously do their job and tasks. A good water supply can able them to

perform tasks such as cleansing the raw materials, as an ingredients to the dishes and

cleansing of the kitchen utensils, machines, and equipment, and the overall store to

36 | Page
ensure safety of the customers. Water Supply payment will also be provided by the

School Management included in the monthly rental fee.

H.3. Telecommunications

Telecommunications is a form of communication that is said to be indispensible

to the duration of a business, as one of newest in the market, need these so called

telecommunications in order to have a clear and proper negotiation with suppliers and

especially with the customers regarding their feedbacks, suggestions, recommendation

and other customer concerns that can might help and contribute to the business growth,

development and profitability.

H.4. LPG

This is very essential to our business because all of our products require LPG for

efficient production. This will be available in various dealers in Pagadian.

I. Waste Disposal Method

Clean and sanitary is one of the reasons why most of the customers keep on

coming back. Since our customers is always our priority, we are giving them a hundred

per cent assurance that our organization to strictly comply the set of standards in

cleanliness specifically in proper disposal of waste. We‘re giving them the satisfaction

and the maintenance of cleanliness in all areas of our store is included in the customer

requirements. Fry Express will provide two big trash bins in the kitchen area with cover

and proper label for segregation will be observed to assure the safety on the

preparation of our products. There will be one small trash bin in the counter area as well

as in the office. And there will also two big trash bins in the dining area with cover and

37 | Page
proper label for segregation for the dining crew to easily clean all the tables after our

customer goes out. The accumulated garbage per day will be collected by the utility

man of the school. This kind of system will be continually observed in our day to day

operation.

J. Labor Requirements

A business without a human capital is like a ship sailing without direction. They are

very important for the business to operate effectively and efficiently. Fry Express will

need a fulltime employee. In our operation, we need a total number of manpower in our

restaurant; they are the ones who will perform the functions of following positions:

Manager 1

Service Crew/Counter 2

Kitchen 3

Total Number 6

Note: The managers are the partners of the business. They are the ones who will

perform the managerial and supervisory functions of the business.

K. Scheduling of Labour

Store Hours: 7:00am-7:00pm

Hours of Operation: 12 hours

Employees Needed: 6

POSITION Quantity Monthly Salaries Annual Salaries

Total Salaries

and

38 | Page
 Wages

Manager 1 12,000.00 144,000 144,000

Service Crew 2 5,000.00 60,000 120,000

Kitchen 2 5,000.00 60,000 120,000

L. Floor Plan

39 | Page
 Counter

Freezer
Fry Vat

40 | Page
 Chapter 4
Management
Study

41 | Page
 Chapter IV

MANAGEMENT STUDY

This chapter tackles about the entire organizational arrangement of the business. The

management aspect suggests a clear and precise identification of duties and

responsibilities, flow of authority and manpower level requirement. This contains the

organizational chart and the qualifications of the people involved the formation of the

business organization, structure. It must be set up aimed at optimum effectiveness. To

attain this, management must be able to plan all activities, for the company to become

dynamic and competitive business over and done with human resource, financial

capability and new technologies.

A. Form of Ownership

The type of business ownership will be a partnership; in which partners pool money,

skills, and other resources, and share profit and loss in accordance with the terms of the

partnership agreement. In the absence of such agreement, a partnership is assumed to

exit where the participants in an enterprise agree to share the associated risks and

rewards proportionately. Complementary skills and additional contacts of each pattern

can lead to the achievement of greater financial results together than would be possible

apart. It is to be registered with the Securities and Exchange Commission (SEC) for the

contract called articles of co-partnership. By the contract of partnership, two or more

persons bind themselves to contribute money, property and industry with the intension

of dividing the profits among themselves.

B. Mission, Vision, Core Values

42 | Page
 B.1. Mission

Aims to connect to the consumers by providing great tasting food, a

satisfying dining experience and all out service.

B.2. Vision

To be the largest and well known chicken experts and quick service

restaurant in the food industry.

B.3 Core Values

T – eamwork – Working out together to achieve common goal.

E – xcellence – Giving our best in every situation we encounter.

C – ustomer Service Oriented – Giving focus to our customers.

H – ospitality – Providing friendly service.

N – eutrality – Making every situation at its balance.

O – rderliness– Systematic and organized procedures

C. Capitalization

Partners Capital Source Of Capital

Cash Payments from Rentals

PHP 50,000.00 and Personal Savings

PHP 50,000.00 Sale of Personal Assets

Cash from Parents and Personal

PHP 50,000.00 Savings

43 | Page
 PHP 50,000.00 Asset Loan

Store Manager

Finance and
Budgeting

Personnel Production Marketing

D. Organizational Chart

Our business chose the functional type of organization. This is one of the most

commonly used type of organizational structure which all activities in the firm are group

together according to certain functions like production, marketing, service and

administrative. This is the best structure that will fit to our over-all operation. This is

44 | Page
quite complex but effective and efficient for every partners and employees of the

organization since the work is divided into specialized functions. There is also a direct

flow of authority but may associate or collaborate to other managers for the betterment

of the business and there is also a mutual relationship between them.

E. Manpower Requirements

It is very vital in all business organization to know their manpower requirements to

operate systematically and effectively at all times. It will help also to determine the

capacity or capabilities of the employees to fit in the flow of business as well as to have

a clear duties and responsibilities. Having standard qualifications in hiring and selecting,

the employee will establish efficient business operations.

It is very vital in all business organization to know their manpower requirements to

operate systematically and effectively at all times. It will help also to determine the

capacity or capabilities of the employees to fit in the flow of business as well as to have

a clear duties and responsibilities. Having standard qualifications in hiring and selecting,

the employee will establish efficient business operations.

F. Organizational Policies and Procedures

Discipline is the primary concern of the organization for the attainment of the

productivity and efficiency that will lead to the organizational and personal growth. All of

the employees as well as the general partners are expected to behave ethically at all

times.

F.1. Employment

It is the company’s policy to select applicants based on the following factors:

● Mental aptitude

45 | Page
 ● Social skills

● Physical fitness

● Strength and weaknesses

● Experience

As such only applicants who passed the qualifying examinations, series of

interviews, medical examinations and background investigations shall be considered for

employment.

F.1.1. Employment Requirements

a. 2 pieces 2x2 pictures

b. 2 pieces 1x1 pictures

c. NSO Authenticated Birth Certificate

d. NBI and Police Clearance

e. SSS Number

f. TIN Number

g. Drug test

h. Medical examination

i. Barangay Clearance

j. Working Permit

k. Health Card

F.2. Classification of Employees

F.2.1. According to Rank

46 | Page
a. Managerial Employee – One who is vested with powers or prerogatives to lay down

and execute management policies and/or hire, transfer, suspend, lay off, recall,

discharge, assign or discipline employees.

b. Supervisory Employees – One, who, in the interest of the employer, effectively

recommend such managerial actions if the exercise of such authority is not merely

routinely or clerical in nature but requires the use of independent judgment.

c. Rank-and-file employee – all other employees not falling within any of the above

definitions.

F.2.2. According to Status

a. Contractual or Seasonal – An employee is hired for a specified period of time under

an agreement prior to or at the time of employment.

b. Probationary – an employee is hired on a probationary basis for a period not to

exceed six (6) months.

c. An employee is hired on a regular status upon satisfactory completion of the

probationary period and upon satisfaction of the criteria necessary for appointment as

regular status. The company reserves the right to amend the above classification or

create sub - classifications as the circumstances of the business may require.

F.3. Orientation

All newly hired employees regardless of classification of rank and status must undergo

on orientation and indoctrination as to the Company’s vision, mission, policies, rules and

regulations, duties and responsibilities and menu familiarization.

F.4. Personnel Records

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It is the responsibility of the company to update and maintain personnel records. It

should contain the following document and records:

● Resume with 2x2 colored photo

● Test results

● Interview impressions

● Mayor’s permit and health certificate (to be renewed every calendar year)

● Transcript of records

● TIN, SSS,PHIC,HDMF numbers

● Employment contracts

● Performance Evaluation forms

● Certificate of trainings attended

● Leave and violation records

● Others

If there are changes in an employer’s personal data such as residence address, civil

status, dependents, etc., a report should be made for updating purposes. Withholding

information and failure to report will result in willful breach of trust wherein continuance

of service will be questioned.

F.5. Contracts of Employment

All employees shall duly sign, execute and deliver the corresponding Contract of

Employment. All employees shall thereafter be issued a company identification card,

which must always be worn during working hours.

F.6. Work Schedule

48 | Page
It is the policy of the company to provide appropriate work hours without violating the

mandated rest days. As such, the company requires all employees to follow the six (6)

hours working shift, including one-hour break assigned to them.

F.7. Tune Keeping

The Points of Sales system is the official time indicator. All employees are required to

use the POS system to accurately record times of arrival and departure.

F.8. Attendance and Punctuality

Attendance and punctuality are important qualities that the company expects from its

employees. They are the factors that determine an employee’s efficiency and reliability.

His presence is necessary for the smooth flow of work at the start of the business hours.

F.8.1. Attendance

Every employee shall ask written permission from the Store Manager or Department

Head, before taking the leave of absence.

a.Unscheduled Absences

Employees must file an application for absence for at least one (1) week ahead to Store

Manager or Department Head

b. If employee incurred sickness and cannot report for work, he must call his supervisor

or manager at least two (2) hours before his duty. If no calls were received on the day of

his absence or his call came in late, this will be considered as AWOL. Upon return to

work, he must file an absence slip with medical certificate attached for signature and

approval of Store Manager or Supervisor

c. Emergency Leave

49 | Page
If employees must go on emergency leave, he must fi le an absence slip immediately.

Attached to the absence slip must be documents justifying his reason for going on

emergency leave. An employee who is absent from work without written approval is

subject to penalties. An employee who is absent without official leave for five

consecutive days is considered to have abandoned his work and therefore subject to

outright dismissal from the company. Under time is allowed on a case-to-case basis and

only if approved by the Store Manager. Under time hours shall be automatically

deducted from the salary of the employees concerned.

F.8.2. Punctuality

It is the policy of the company to discourage tardiness as this affects the morale of the

punctual employees as well as the operations of the business. Tardiness shall mean

coming to work past the required starting time. It also means failure to go back in the

workplace immediately after break periods. Heavy traffic, oversleeping, personal

reasons, etc. do not constitute justification for late arrivals. Only three (3) tardiness are

allowed within one month. In excess of this, an employee is subject to disciplinary

action. Arrival in the workplace two hours after scheduled time will be sufficient ground

to consider an employee as absent for half day. Tardiness shall be chargeable directly

against basic pay.

F.9. Personnel Movement and Performance Evaluation

It is management’s prerogative to assign, transfer, reclassify, promote or demote its

employees accordingly based on merit and performance. Thus, employees are

continuously evaluated as to their performance, work attitude, productivity, honesty and

diligence and may be served as bases for management’s decisions on personnel

50 | Page
movement. Performance evaluation shall be done to every employee on his 3rd, 4th,

and 5th month. For regular employees, performance evaluation shall be done twice a

year every May and November of a calendar year.

F.10. Separation from Service

F.10.1. Voluntary Resignation

In case an employee intends to resign, he/she must give a one-month prior notice to the

management and must comply with all the clearance requirements; otherwise the

employee shall forfeit whatever remaining compensation due to him.

F.10.2. Termination

In all cases involving a termination of an employee’s service from the company,

appropriate notice of termination shall be furnished to the employee subject to

clearances of all accountabilities. As a matter of policy, terminated employees are not

qualified for reinstatement.

F.11. Compensation and Benefits

F.11.1. Salaries and Wages

All employees shall receive their respective salaries or wages as provided in their

Contracts of employment every 15th and last day of the month. Cut-off for payroll

computation is every 10th and 25th of the month.

F.11.2. Overtime Pay

Employees may be required to work beyond their shift or even on rest days due to work

requirements. Every effort should be made to avoid unnecessary overtime work and to

keep work within reasonable limits. All overtime work should have prior written approval

51 | Page
from the Store Manager. Every employee should file their overtime slips within the pay-

period to be compensated. No overtime slip, no overtime pay.

F.11.3. Cancelled Day-off/Holiday Pay

Every employee shall be provided with a rest period of twenty-four (24) hours after

every six (6) consecutive normal working days.

The following shall be considered regular holidays:

● New Year’s Day - January 01

● Maundy Thursday - movable date

● Good Friday - movable date

● Araw ng Kagitingan - April 09

● Labor Day - May 01

● Independence Day - June 12

● National Heroes Day - last Sunday of August

● Ramadan - movable date

● Bonifacio Day - November 30

● Christmas Day - December 25

● Rizal Day - December 30

The following shall be considered special holidays:

● All Saints Day - November 01

● Last day of the Year - December 31

Work performed on a regular holiday shall be compensated with an additional

compensation equivalent to 100% of his regular salary. Work performed on an

52 | Page
employee’s rest days or on a special holiday shall be paid an additional compensation

of 30% of his regular salary.

F.11.4. 13th Month Pay

The 13th month pay of an employee which shall be equivalent to 1/12 of his basic salary

earned within a calendar year shall be given not later than December 24 of each year.

F.11.5. Paternity and Maternity Leave

Paternity and maternity leave benefits as provided by law shall be given to every

employee entitled thereto, upon complying with all the requirements of the company and

upon proper verification by the Company’s duly authorized representatives.

F.11.6. SSS/PHIC/HDMF Benefits

Benefits under SSS/PHIC/HDMF law shall be granted in accordance with applicable

laws. Implementation of procedures relative to entitlement of said benefits should be

done in accordance with the regulations to be promulgated by the management.

F.11.7. Hospitalization Plan

Regular employees shall be provided with hospitalization plan with a respectable Health

Maintenance Organization under terms and conditions to be solely decided by the

company.

F.11.8. Accident Insurance

Regular employees are enrolled by the Company under a reputable Insurance

Organization. Any accident incurred whether work-related or not shall be compensated

by this Insurance firm. This plan shall be on employer-employee participating basis.

F.11.9. Retirement Benefits

53 | Page
Retirement pay benefits as provided by law shall be given to all qualified employees

upon their retirement from the company.

F.11.10. Bereavement Assistance

If an immediate family member of a regular employee passed away, he shall be given a

financial assistance of P5000.00 upon complying with all the requirements of the

company and verification by its authorized representative.

H.11.11. Other Incentives and Awards

Awards and certificates of recognition, such as Crew of the Month, Best in Attendance,

Most Punctual Employee, Model Employee of the Year and the like shall be given the

discretion of management.

I. Code of Ethics

I.1. Hygiene and Sanitation

All employees must observe must observe the highest standard of hygiene and

sanitation. Employees must be well-groomed and continue with their work, wearing

clean and proper attire. For this purpose, the term “well-groomed” shall mean proper

haircut, cut fingernails, use deodorant, and clean and regularly washed hands. For this

purpose, the term “clean and proper attire” shall likewise include newly-washed and

properly-ironed attire, no excessive dirt on clothes and shoes, and proper and complete

company uniform worn properly.

I.2. Arrival and Departure of Employees

All employees regardless of status and rank, must submit all personal belongings for

inspection upon entering the company premises. Inspection will include a tickler which

54 | Page
shall list all contents of his bag, down to the smallest detail. All personal belongings are

restricted within the locker area while the employees on-duty. It is strictly prohibited to

bring in any personal belongings based on the tickler as well as body frisking. If found

questionable items in his possession, this shall be reported to the manager on-duty

immediately for proper action.

I.3. Procedure for Notices/Bulletin Boards

Management shall post all notices, announcements and memoranda of general

application on the bulletin board. Ignorance is not an excuse and it is incumbent on

each employee to regularly check the bulletin boards for new notices, announcements

or memoranda. No employee can post or remove any document on the bulletin board

without the prior permission from the management.

I.4. Notice of Disciplinary Action

In accordance with the due process requirements of the Labor code, as amended, all

employees found or reported to have committed a violation of the company rules and

regulations shall be given a written notice to explain and shall be given the opportunity

to explain why no disciplinary action should be imposed against him. Thereafter, any

disciplinary action to be imposed by the management shall again be indicated in writing

and duly furnished to the affected employee.

I.5. Code of Conduct

Without in any limiting the prerogative of the company to amend, modify, revoke, or add

to the ff. List of offenses, the following acts and mere attempts to commit such acts,

even if unsuccessful, shall warrant the corresponding disciplinary actions.

I.5.1. Kinds of Penalties

55 | Page
 Employees are subject to penalties according to their violations made during their

employment.

● Written Report of Warning (WR)

It is the notice calling all the attention to the offense and warning the offenses against

repetition of such violation in the future.

● Suspension (3D/6D/9D)

If a worker has commited offense for the second or third time, he is subject to

suspension. He will be detached from the organization with the designated period of

time without payment.

● Termination (TR)

Termination will be given to employees who have committed a major offense.

The employee will be dishonorably separated from the organization.

B. Project Schedule Gantt Chart

November December January February March

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

Processing of Legal Requirements

Processing the Lease Of Contract

56 | Page
Purchasing and

installation of

Equipments

Hiring and

Training of

Personnel

Preparing all

the Operation

Materials

Business

Operation

Proper

Chapter 5
Financial Study
57 | Page
 CHAPTER V

FINANCIAL STUDY

The financial aspect of the project feasibility study quantifies the results of the

marketing, technical, management, taxation and legal phase of the project study and

expresses in peso terms the possible outcome of operating the project.

The major parts of the financial study are:

58 | Page
Basically, project studies consist of the skillful coordination of the various information on

all the factors in the form of financial projections. It covers all the factors that are

pertinent to an intended venture having established the existence of a sample market

and the feasibility of the production facilities to supply this market, the investigation

should move on the study of finance cost. What remains is to study the result of the

market and technical studies.

Major Assumptions:

● Sales increase by 5% every year.

● Depreciation method used is a straight-line method.

● Income Tax for the current year is payable on April 15 of the subsequent year.

● Salaries increase by .5% every year.

● Non-Current Assets increased 5% every year.

59 | Page
CHAPTER V

FINANCIAL STUDY

A. Total Project Cost

Fixed Assets:
Leasehold Improvements 71,000.00

Machinery and Equipment 65,562.00

Furniture and Fixtures 4,635.00

Pre-operating Expenses:

Feasibility Cost 10,000.00

Advertising 1,000.00

Permits & Licenses 15,000.00 26,000.00

Working Capital

Cash 11,478.00

Raw Inventory 7,790.00

Supplies 1,535.00

Prepaid Rent 12,000.00 32,803.00

Estimated Total Project Cost 200,000.00

60 | Page
61 | Page
62 | Page
63 | Page
Schedule 1-Merchandise
Inventory
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
3,421.3 3,535.6
Chicken 3,000.00 3,100.20 3,203.75 3,310.76 4 1
Oil 600.00 620.04 640.75 662.15 684.27 707.12
Flour 90.00 93.01 96.12 99.33 102.65 106.08
1,026.3 1,060.6
Eggs 900.00 930.06 961.12 993.22 9 7
1,368.5 1,414.2
Rice 1,200.00 1,240.08 1,281.50 1,324.30 3 4
Spices 200.00 206.68 213.58 220.71 228.08 235.70
2,052.8 2,121.3
Iced Tea Powder 1,800.00 1,860.12 1,922.25 1,986.45 0 6
8,884.0 9,180.7
Total 7,790.00 8,050.19 8,319.07 8,596.92 6 8

Exhibit 2 - Supplies Inventory

Quantit Unit
Unit y Cost Total
Ballpen Pcs 3 5 15
Calculator Pcs 2 75 150
Stapler Pcs 1 45 45
Staple Wire Box 1 30 30
Thermal Paper Roll 3 5 15
Bond Paper Ream 5 18 90
Pot Holder Ream 1 232 232
Cleaning Towel Pcs 5 10 50
Sponge nad Scrubs Pcs 5 10 50
Dishwashing Liquid Pcs 12 8 96
Mop Pcs 2 95 190
Mop Bucket Pcs 1 95 95
Broom Pcs 1 45 45
Dustpan Pcs 1 45 45
Hand Snitizer Pcs 1 195 195
Tissue Paper Pcs 8 24 192
TOTAL 1535
Schedule 3 - Pre-operating
Cost
Cost
Feasibility Study Cost 10,000
Advertising Expense 1000
Permits and Licenses 7000
TOTAL 18,000

64 | Page
Schedule 4 - Property , Plant and
Equipment
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Leasehold Improvents (Exhibit 28,400.0 14,200.
1) 71,000.00 56,800.00 42,600.00 0 00 0.00
Machinery and Equipment 25,269.6 12,634.
(Exhibit2) 65,562.00 51,733.20 37,904.40 0 80 0.00
Furnitures and Fixtures (
Exhibit 3) 4,635.00 3,055.50 1,476.00 984.00 492.00 0.00
141,197.0 111,588.7 54,653.6 27,326.
Total PPE 0 0 81,980.40 0 80 0.00

65 | Page
Exhibit 1- Leasehold Improvements
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Building 71,000.00 71,000.00 71,000.00 71,000.00 71,000.00 71,000.00
Less: Accumulated
Depreciation 14,200.00 28,400.00 42,600.00 56,800.00 71,000.00
Carrying Amount 71,000.00 56,800.00 42,600.00 28,400.00 14,200.00 0.00

Exhibit 2- Cost of Equipments

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Equipment 65,562.00 65,562.00 65,562.00 65,562.00 65,562.00 65,562.00
Less: Accumulated
Depreciation 13,828.80 27,657.60 40,292.40 52,927.20 65,562.00
Carrying Amount 65,562.00 51,733.20 37,904.40 25,269.60 12,634.80 0.00

66 | Page
67 | Page
Exhibit 8 - Output Tax
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Sales 0.00 0.00 0.00 0.00 0.00 0.00
x 12% x 12% x 12% x 12% x 12% x 12%
Total 0.00 0.00 0.00 0.00 0.00 0.00

Exhibit 9 - Input Tax

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Purchases ( Merchandise
Inventory) 7,790.00 0.00 0.00 0.00 0.00 0.00
Purchases (Supplies
Inventory) 1535 1586.269 1639.27 1750.63 1809.08 0
Total Purchases 9,325.00 1,586.27 1,639.27 1,750.63 1,809.08 0.00
x 12% x 12% x 12% x 12% x 12% x 12%
Total 1,119.00 190.35 196.71 210.08 217.09 0.00

68 | Page
69 | Page
70 | Page
 Profitability Ratios
Year 1 Year 2 Year 3 Year 4 Year 5
Return on Sales Profit / Net Sales 0.13 0.14 0.15 0.15 0.27
Return on Profit/Average
Investment Total Assets 1.12 0.7 0.57 0.48 0.62

Liquidity Ratios Year 1 Year 2 Year 3 Year 4 Year 5

Inventory COS/ Ave.
Turnover Inventory 301.92 322.22 338.33 355.25 286.82
Days to sell 360/ Inventory
Turnover Turnover 1.19 1.12 1.06 1.01 1.26

Beginning
Inventory 8,050.19 8,050.19 8,319.07 8,596.92 8,884.06

Ending
Inventory 8,050.19 8,319.07 8,596.92 8,884.06 9,180.78

Average
Inventory 8050.19 8184.63 8458 8740.49 9032.42

2,430,480 2,637,240 2,861,591 3,105,026 2,590,672

Cost of Sales .00 .93 .02 .57 .06

Leverage Ratios
Equity TotalAssets/
Multiplier Equity 147.77% 134.61% 127.23% 122.83% 128.43%

71 | Page
Horizontal Analysis

Horizontal Analysis
Year 1 Year 2 Year 3 Year 4 Year 5

1 0.09 0.09 8.51% 8.51%

1 0.09 0.09 8.51% -16.57%

1 0.09 0.09 8.51% 54.90%

-
1 0.04 0.01 0.58% 0.30%

1 0.20 0.15 13.79% 87.07%

1 0.20 0.15 13.79% 87.07%

1 0.20 0.15 13.79% 87.07%

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

4353.54
100.00% % 69.17% 44.76% 34.75% 58.94%
100.00% 3.34% 3.34% 3.34% 3.34% 3.34%
100.00% 3.34% 3.34% 6.79% 3.34% 3.34%
100.00% 0.00% 0.00% 0.00% 0.00% 0.00%
100.00% -100.00% 0.00% 0.00% 0.00% 0.00%
100.00% 806.10% 66.42% 43.69% 34.16% 58.18%

100.00% -20.97% -26.53% -33.33% -50.00% -100.00%

100.00% -20.97% -26.53% -33.33% -50.00% -100.00%

100.00% 222.20% 50.33% 37.18% 30.70% 55.69%

72 | Page
 100.00% 14.18% 13.50% 85.45%

100.00% 118.04% 65.03% 45.13% 35.38% 48.89%

100.00% 118.04% 65.03% 45.13% 35.38% 48.89%

100.00% 222.20% 50.33% 37.18% 30.70% 55.69%

Vertical Analysis

Vertical Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
1 1 1 1 1
64.92% 64.92% 64.92% 64.92% 49.92%
35.08% 35.08% 35.08% 35.08% 50.08%

17.07% 15.14% 14.03% 13.01% 12.02%

18.02% 19.94% 21.05% 22.08% 38.06%
5.40% 5.98% 6.32% 6.62% 11.42%
12.61% 13.96% 14.74% 15.45% 26.64%

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

5.74% 79.33% 89.27% 94.21% 97.12% 99.15%

3.90% 1.25% 0.86% 0.65% 0.51% 0.34%
0.77% 0.25% 0.17% 0.13% 0.10% 0.07%
6.00% 0.00% 0.00% 0.00% 0.00% 0.00%
13.00% - - - - -
29.40% 82.68% 91.54% 95.89% 98.43% 100.00%

70.60% 17.32% 8.46% 4.11% 1.57% 0.00%

70.60% 17.32% 8.46% 4.11% 1.57% 0.00%

100.00 100.00
% % 100.00% 100.00% 100.00% 100.00%

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 100.00% 67.67% 74.29% 78.60% 81.42% 77.86%
100.00
% 67.67% 74.29% 78.60% 81.42% 77.86%

100.00 100.00
% % 100.00% 100.00% 100.00% 100.00%

Payback Ratio

PAYBACK
PERIOD
Net Depreciat Net Cash Cash to Cost to be Payba
Year Income ion Inflow Date Recovered ck

0 200,000.00
0.398
1 472,156.67 29608.3 501,764.97 501,764.97 59

1,097,276.9
2 567,170.12 28341.85 595,511.97 4

1,775,212.4
3 649,593.66 28341.85 677,935.51 5

2,542,718.4
4 739,164.13 28341.85 767,505.98 2

1,382,718. 3,953,778.7
5 44 28341.85 1,411,060.29 1

0.398
PAYBACK PERIOD 6

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NET PRESENT VALUE
262.14422
50%
Net Depreciat Net Cash Present
Year Income ion Inflow PV Factor Value

472,156.6
1 7 29,608.30 501,764.97 0.2761331 138,553.91

567,170.1
2 2 28,341.85 595,511.97 0.0762495 45,407.48

649,593.6
3 6 28,341.85 677,935.51 0.0210550 14,273.93

739,164.1
4 3 28,341.85 767,505.98 0.0058140 4,462.27

1,382,718 1,411,060.
5 .44 28,341.85 29 0.0016054 2,265.36
PRESENT VALUE OF CASH
INFLOWS(PVCI) 204,962.95
Less: COST OF INVESTMENT
(COI) 200,000.00

NET PRESENT VALUE 4,962.95

268.254700
INTERNAL RATE OF RETURN %
Net Cash
Year Inflow PV Factor Presenr Value
0.27155118
1 501,764.97 5 136,254.87
0.07374004
2 595,511.97 6 43,913.08
0.02002419
3 677,935.51 7 13,575.11

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 0.00543759
4 767,505.98 4 4,173.39
0.00147658
5 1,411,060.29 5 2,083.55
PRESENT VALUE OF CASH
INFLOWS(PVCI) 200,000.00

Less: COST OF INVESTMENT (COI) 200,000.00

NET PRESENT VALUE 0.00

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 Chapter 6
Socio-Economic
Study

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 CHAPTER VI

SOCIO-ECONOMIC STUDY

The socio-economic impact of this study will clearly state its relevance to the

external aspect of the business.

Objectives:

a) to determine the contributions of the business to the Philippine economy,

b) to describe the benefits of the business to its community,

c) to ensure the active participation in the maintenance of cleanliness in the

environment.

A. Socio-Economic Contributions

A.1. Contribution to the Philippine Economy

Every business establishment will be of great help for the growth and development of

the Philippine economy. These will only be possible if every firm will be responsible

enough to perform their duties and obligations to their customers, community and of

course to the government. Fry Express will definitely contribute additional earnings to

our government by means of paying right taxes. Through this, the government can able

to perform its functions well including continuous support and assistance to the

business industry, providing projects for the community such as building infrastructures,

public schools and hospitals, strengthening arm forces for the security and protection of

the countrymen and other indispensable projects that will benefit the people.

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A.2. Employment Generation

The business will provide job opportunities to many individuals most especially to those

people who have great passion in food preparation. Every society wants all its qualified

members to be gainfully employed. When individuals are employed they are able to

raise their children support them through school, provide them with decent homes,

acquire medical services whenever needed and contribute to government income

through the payment of income taxes. Fry Express will help to lessen rate of

unemployment and number of poor people. The eradication of poverty will help to solve

social problems like crimes, juvenile delinquency and malnutrition.

A.3. Environment Conservation

Fry Express will be sensitive enough to our environment by means of assuring that the

processes involve in the business operations will be environmentally friendly.

Moreover, the firm will apply the principle of Corporate Social Responsibility (CSR).

The business will observe proper waste disposal in order to maintain cleanliness and

orderliness. This will also help to lessen pollution that causes different diseases and

health problems to many Filipinos. The business proponents will allocate enough

budgets to sustain the execution of waste management in its operation.

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