Business location: Jamisola Street, Gatas District, Pagadian City, Zamboanga Del Sur

Email address: chickenexpresspagadian@gmail.com

Business Start Date: June 21, 2019

Contact No.: 09178880185

Social Media link: Facebook Page: www.facebook.com/chickenexpresspagadian

TABLE OF CONTENTS

1.0 EXECUTIVE SUMMARY

Chicken Express is a locally owned fast food outlet that will be positioned as an international
franchise through our creative approach to the company's image and detail presentation.
Chicken Express will provide a combination of excellent food at value pricing, with fun
packaging and atmosphere. Chicken Express is the answer to an increasing demand for
snack-type fast food, to be consumed while window shopping and walking around inside a
shopping mall.

In today's highly competitive environment, it is becoming increasingly difficult to

differentiate one fast food outlet from another. Pagadian City has been booming so fast in
terms of food businesses.

Our main priority is to establish one store located at the heart of the city. Later, our effort will
be a further development of more retail outlets in the nearby cities and municipalities.

1.1 OBJECTIVES
 To establish a presence as a successful local fast food outlet and gain a market share in
Pagadian's fast food industry.
 To make Chicken Express a new destination spot
 To expand into a number of outlets by year three, and sell the franchise to neighboring
cities and municipalities.

1.2 MISSION
Our main goal is to be one of the most successful fast food outlets in Pagadian City, starting
with one outlet located at the heart of the city as a "market tester."

Chicken Express will strive to be a premier local fast food brand in the local marketplace.
We want our customers to have the total experience when visiting our outlet(s) and website
as they will learn about this fascinating new "pop culture." We will sell merchandise from
 pre-packaged sauces and t-shirts, to potato cutters, all with our official brand attached to
them.

Our main focus will be serving high-quality food at a great value.

1.3 KEYS TO SUCCESS

To succeed in this business, we must:

 Create a unique, innovative, entertaining menu that will differentiate us from the rest of
the competition.
 Control costs at all times, in all areas and implement a conservative approach to growth
policy. Although, we provide more than enough fund to open more than one outlet, we
want to be on the safe side of the business.
 Sell the products that are of the highest quality, as well as keeping the customers happy
with all of our product categories from food to store merchandising.
 Provide 100% satisfaction to our customers and maintaining the level of excellent
services among other competitors.
 Encourage the two most important values in fast food business: brand and image, as these
two ingredients are couple of main drivers in marketing communications.
 Get access to high-traffic shopping malls near the target market.
 Promote good values of company culture and business philosophy.

2.0 C OMPANY SUMMARY

What is Chicken Express?

Chicken Express focuses primarily on Fried chicken, Catfish, and chicken tenders but also
serves sides. Such as fried pickle slices, apple pie, mashed potatoes, gravy, cheese sticks,
Cole slaw, French fries, & corn nuggets. We use the concept of Belgian Fries, where the fries
are all made from fresh potatoes and fried twice. Our outlet also provides excellent and
friendly customer service to support the ambience of fun, energetic and youthful lifestyle. 
 Youthful and fresh surroundings

We will imitate successful establishments, such as Mcdonalds and Jollibee, which represent

the majority of our core target market, between 18 to 35 years of age. Our store will feature
display cooking of our featured Fried Chicken from cutting to frying. Our store will be
decorated with fast food setting, such as a bright counter and display menu on the wall.

Quality food & Open every day

Each store will offer nothing but freshly fried chicken, sandwiches and variety of unique
blend sauces, all served with old-fashioned home-style care. Our store is open every day
from 10 am to 10pm.

2.1 COMPANY OWNERSHIP

Chicken Express is a privately held company.

2.2 S TART-UP SUMMARY

The retail outlet will be located at the center of the city so that it will be visible to the market.
Startup requirements will be financed through owner investments.

2.3 COMPANY LOCATIONS AND FACILITIES

Chicken Express locations will range in size from 50 – 70 meter square and will seat from 15
– 25 guests. Our first location will be on the larger end of this range. The location will feature
its own originality in merchandise display and other brand building attributes. We will equip
the outlet with modern furniture and aim for cleanliness and an open feeling.

The space selection will be chosen based upon the following criteria:

 Community size: minimum of 800,000 people within a radius of 8 kilometers.

  Tourist destination.
 Easy access.
 Large percentage of teenagers in the community.
All of these qualities are consistent with Chicken Express' goal of providing a top quality fast
food experience. We want "word-of-mouth" to be our best form of marketing, where our
customers value our brand as something exciting and cannot wait to tell their friends and
neighbors.

3.0 PRODUCTS
We want to focus only on selling chicken and chicken related dishes. Alcoholic drinks will
not be sold in our outlet, as Chicken Express promotes a healthy and positive lifestyle.
Instead, we will offer Soda to complement the food.

3.1 COMPETITIVE COMPARISON

Chicken Express has several advantages over its leading competitors:

 Unique "fusion" concept of dipping sauce.

 We expect a high degree of enthusiasm and offer a fun store with friendly staff that
reflects the company's youthful and energetic culture.
 Supporting merchandise items that support the company's brand building.
 Our fried potato is made 100% fresh, compared to most fast food outlets that use frozen
fries.
 Our dipping sauce is also made fresh without preservatives.
 Our innovative packaging will be more entertaining than our competitors; a single cone
with a cup reserved for dipping sauce.

4.0 MARKET ANALYSIS SUMMARY

Consumer expenditures for fast food in Pagadian City rose during the end of the year 2000.
The increasing number of new establishments such as fast food franchises, fancy restaurants
and gourmet bakeries around Pagadian City has shown a significant growth in this sector.
 A much broader appeal exists for weekend slots because those are the days when most of our
core target market enjoys the mall going activities.

 Age - Youngsters, single, currently enrolled in college and high school.

 Family unit - We will also appeal to families (young families) with children.
 Gender - We will target both sexes, with a slight skew for males due to their lower
attention to dietary concerns.
 Income - We will appeal to the medium income individuals and to all in the lower
medium income bracket.
Our concept will have very broad appeal. It is our goal to be the hip destination for fast food
cravings.

4.1 M ARKET SEGMENTATION

We are targeting young Pagadianons as our primary market. Due to heavy extra-curricular
activities among Pagadian's youth, it is common for high schoolers to have lunch outside,
and not at home.

Our secondary market segment is the "Working Pagadianons." With so many shopping malls
in the vicinity, Pagadian City is the haven for shoppers and job seekers alike. Lastly,
Pagadian City is also the destination for tourists staying in the area. Tourists will stroll
Pagadian City, hunting for the latest trend in fashion and have no time to stop for a full meal
during shopping. Chicken Express is the alternative for a quick bite while shopping the fancy
boutiques in the area.

4.2 TARGET MARKET SEGMENT STRATEGY

Chicken Express intends to cater to the bulk of teenagers and youngsters in Pagadian City.
We have chosen this group for several important reasons. It is our goal to be "the
extraordinary fast food place" and we believe that the age group from 15 to 25 is the primary
age where brand building efforts could take place. They are on limited or fixed incomes and
seek a value/price relationship that will not stretch their budgets.

Our secondary target is between the ages of 25 and 37, which are a heavy lounge/restaurant
user group. They are more flexible in budgets and seek more than a value/price relationship.
 Our lunch strategy is dual purposed. First, we are featuring fresh fries to fill Pagadian City's
craving for fast food as most ideas of lunch is a quick bite not a heavy meal.

Second, we want to keep the price point at lunch as fair as possible to keep us in competition
with other fast food outlets.

4.3 M ARKET TRENDS

In the past, Pagadianons preferred Western chain restaurants. This was the time when
Jollibee, McDonald's, and Greenwich were dominating most of the chains. But the trend
seems to have shifted in the last decade, with the success of the locally grown brands.

4.4 M AIN COMPETITORS

Our main competitors in this segment are any food outlets within the 300 meter radius along
the Pagadian City. In our location, there are Jollibee, Mcdonalds and Greenwich.

5.0 MARKETING STRATEGY

Our strategy is based on serving our markets well. We will start our first outlet as a "market
tester" that could become a model of the expanding number of outlets in the future.
Concentration will be on maintaining quality and establishing a strong identity in the local
market.

A combination of local media and local store marketing programs will be utilized at each
location. Local store marketing is most effective, followed by print ads. As soon as a
concentration of stores is established in a market, then broader media will be explored. We
believe, however, that the best form of advertising is still "buzz." By providing a fun and
energetic environment, with unbeatable quality at an acceptable price in a clean and friendly
outlet, we will be the talk of the town. We will deploy three different marketing tactics to
increase customer awareness of Chicken Express. Our most important tactic will be "word-
of-mouth" and in-store marketing. This will be by far the cheapest and most effective of our
marketing programs because of the high traffic in targeted shopping locations.
 The second tactic will be local store marketing. These will be low-budget plans that will
provide community support and awareness of our facility. The last marketing effort will be
utilizing local media. Although, this will be the costliest, this tactic will be used sparingly as
a supplement where necessary. 

 In-Store Marketing
 In-store brochures containing our concept and philosophy.
 Wall posters.
 Design concept.
 In-store viewing of making fries process from cutting to frying.
 Standing signage inside malls’ lobby/aisle.
 Outdoor signage (if possible).
 Grand opening promotion.
 Party catering.
 Merchandising items.
 Local Store Marketing
 Brochures.
 Free occasional t-shirts at local stores events.
 Local Media
 Direct mail piece – containing brochures sent to surrounding addresses.
 Local magazines that target our core customers, such as Free! Magazine.
 Newspaper campaign – placing several large ads throughout the month to explain
our concept to the local area.

5.1 PRICING STRATEGY

Our pricing strategy is positioned as "generic", meaning that PM100 is the average consumer
spending for a snack or light lunch in Pagadian City. Leveraging the volume of chicken,
fries, Soda, and signature style sauces to be sold, we are serving the majority of Pagadianons.
5.2 S ALES STRATEGY
The sales strategy is to build and open new locations in order to increase revenue. However,
this plan will be implemented when the one "market tester" outlet showed potential growth.
As each individual location will continue to build its local customer base over the first three
years of operation, the goal of each store is P 1,000,000 in annual sales, with the original
flagship store expected to earn almost P 2,000,000 per year.

We anticipate the highest peak on the months of June and July in our sales forecast, due to
the holiday seasons.

6.0 FINANCIAL

Start-up

Requirements

Start-up Expenses
PROJECT MANAGEMENT P0
Restaurant Consultant (4 months) P15,911
DESIGN P0
Architectural Design P2,195
Structural & Plumbing Design P1,368
Mechanical & Electrical Design P2,155
Graphic Design P1,185
Electrical & Structural Engineering Fees P2,592
Design Consultants (Kitchen, Interior & Dining) P9,119
Engineer & Architect Fees P7,040
CONSTRUCTION P0
Plumbing P33,244
HVAC (Air Return, Air Ducts, etc.) P19,250
Electrical P7,964
Disposal & Demolition P4,122
Structural Construction (4 Months General Labour) P52,099
Facade (Exterior Construction) P3,092
Plaster (Dry Wall) P2,061
Mill & Metal Work P8,244
Interior Finishes (2500 - 3000 sq. ft.) P14,538
Flooring P14,622
Fire Alarm System P3,092
Security & Phone System P4,615
EQUIPMENT P0
Liquor Control System - Lease P0
Stools, Chairs, Tables, Uniforms P38,025
POS (Point of Sale System) - Lease P0
Glassware, Flatware, Smallware (Bar & Lounge) P3,298
Glassware, Flatware, Smallware & Supplies (FOH) P8,298
Dishwasher, Ice & Glasswasher - Lease P0
Kitchen Equipment Freight Fees P2,389
FF&E Taxes (Taxes on Purchase) P7,988
OPERATIONAL P0
Capitalized Legal Fees (LLC, Investor Agreements) P7,080
Software: Restaurant/Inventory P5,500
Software: Cost Control P6,000
Impact, Tap & Permit Fees P3,115
Business License & Temp Certificate of Occ. P1,615
Liquor Licenses P4,615
Utilities, Disposal, Tax & Insurance P9,275
Security Deposits (Phone/Elec/Gas/Water) P6,250
Initial Lease Deposits P6,250
Bank & Loan Closing Costs P6,250
Web Site Construction P5,800
Initial Marketing, Training & PR P19,550
Research & Development P3,050
Start-Up Salary (Mngt & Chefs) P58,050
Recruiting (Staff) P14,550
Inspections P750
Initial Cleaning Services P1,000
Total Start-up Expenses P427,209

Start-up Assets
Cash Required P97,099
Start-up Inventory P27,500
Other Current Assets P73,311
Long-term Assets P65,000
Total Assets P262,910

Total Requirements P690,119

Start-up Funding

Start-up Expenses to Fund P427,209

Start-up Assets to Fund P262,910
Total Funding Required P690,119

Assets
Non-cash Assets from Start-up P165,811
Cash Requirements from Start-up P97,099
Additional Cash Raised P49,881
Cash Balance on Starting Date P146,980
Total Assets P312,791
Liabilities and Capital

Liabilities
Current Borrowing P0
Long-term Liabilities P300,000
Accounts Payable (Outstanding Bills) P0
Other Current Liabilities (interest-free) P0
Total Liabilities P300,000

Capital

Planned Investment
Ralph Christer A. Maderazo P440,000

Loss at Start-up (Start-up Expenses) (P427,209)

Total Capital P12,791
Total Capital and Liabilities P312,791

Total Funding P740,000

Sales Forecast
The following sales graph is based on first year start-up estimates only. We anticipate that the
business will not be at full operating capacity until the sixth month of operations. This is due to
the competitive nature of the market and existing customer loyalty. All factors governing our
sales progress are outlined below in the Important Assumptions section.

Our sales forecasts for years 3 through 5 are very conservative, compared to industry standard
growth rates.
Although we hope to do catering for local businesses and government offices with time, we will
insist on payment at delivery - we will not sell on credit.

Sales Forecast
Year 1 Year 2 Year 3 Year 4 Year 5
Sales
Total Sales Food P853,595 P959,047 P1,006,999 P1,047,279 P1,089,170

Total Sales P220,174 P252,041 P272,204 P293,981 P317,499

Bar/Beverages
Other P0 P0 P0 P0 P0
Total Sales P1,073,769 P1,211,088 P1,279,204 P1,341,260 P1,406,670

Direct Cost of Year 1 Year 2 Year 3 Year 4 Year 5

Sales
Total Cost of P298,758 P322,240 P329,289 P336,048 P342,762
Sales: Food
Total Cost of P72,657 P76,167 P77,687 P79,228 P80,835
Sales:
Bar/Beverages
Other P0 P0 P0 P0 P0
Subtotal Direct P371,416 P398,407 P406,976 P415,276 P423,597
Cost of Sales

Web Plan Summary

It will be the virtual business card and portfolio for the company, simple, contemporary and well
designed. Our site will offer our menus, prices, reviews and happenings at Chicken Express. We
will also have a monthly update on our FB page about what did happen at Chicken Express to get
new customers interested in our restaurant. 

Our website will be used to try out new offers, starting with an on-line order feature for the
Sunday Market Brunch, and expanding if the concept gains favor with our customers. A
customer will be able to order a selection for pickup using a debit card. Selections will be based
on our pre-packaged meals available during the Sunday Market Brunch. This is also a potential
for customers needing catering.
The website will include email capabilities and online reservations and special events
scheduling.

Personnel Plan

We believe the personnel plan is in good proportion to the size of the restaurant and projected
revenues. The staff will include 13 full-time employees and 8 part-time employees, who will
work a total of 754 man-hours per week and generate an average monthly gross payroll of
P27,308 for the first year in business. The estimated gross annual payroll of P399,588 (including
Partner Salaries) is 37% of total sales.

Wage salaries for service personnel (wait staff, busboys, lounge tenders) do not include
anticipated tips. Skilled waitresses and lounge tenders on weekends and evenings will make
substantially more.

Kitchen:

The Executive Chef will be assisted by:

 An Assistant Chef from a national search (1).

 Cooks that work directly with the chef (3).
 Prep cooks/dishwasher (4).
 People cleaning the restaurant (4).

Personnel Plan
Year 1 Year 2 Year 3 Year 4 Year 5
General Manager (Year 2+) P28000 P28000 P28,000 P28,500 P29,000

Partner/Manager P48,000 P48,000 P48,000 P48,000 P48,000

Partner/Asst. Manager/Exec. P32,160 P32,160 P32,160 P32,160 P32,160
Chef
Hostess (Full Time) P24,000 P24,500 P25,000 P25,500 P26,000
Hostess (Part Time) P13,200 P13,500 P14,000 P14,300 P14,800
Waitperson 1 P5,640 P5,640 P5,640 P5,640 P5,640
Waitperson 2 P5,640 P5,640 P5,640 P5,640 P5,640
Waitperson 3 P5,640 P5,640 P5,640 P5,640 P5,640
Waitperson 4 P5,640 P5,640 P5,640 P5,640 P5,640
Waitperson 5 P5,640 P5,640 P5,640 P5,640 P5,640
Waitperson 6 P5,640 P5,640 P5,640 P5,640 P5,640
Waitperson 7 P5,640 P5,640 P5,640 P5,640 P5,640
Waitperson 8 P5,640 P5,640 P5,640 P5,640 P5,640
Waitperson 9 P5,640 P5,640 P5,640 P5,640 P5,640
Wait/Barperson P10,440 P10,440 P10,440 P10,440 P10,440
Bartender 1 P14,400 P14,400 P14,400 P14,400 P14,400
Bartender 2 P7,200 P7,500 P7,500 P7,500 P7,600
Busboy 1 P9,120 P9,120 P9,120 P9,120 P9,120
Busboy 2 P11,760 P11,760 P11,760 P11,760 P11,760
Busboy 3 P7,200 P7,200 P7,200 P7,200 P7,200
Assistant Chef P44,400 P44,400 P44,400 P44,400 P44,400
Sous Chef P32,400 P32,400 P32,400 P32,400 P32,400
Cook 1 P24,240 P24,240 P24,240 P24,240 P24,240
Cook 2 P18,960 P18,960 P18,960 P18,960 P18,960
Prep Cook/Dishwasher P12,288 P12,288 P12,288 P12,288 P12,288
Prep P12,960 P12,960 P12,960 P12,960 P12,960
Cook/Dishwasher/Cleaning
Dishwasher 1 P8,640 P8,640 P8,640 P8,640 P8,640
Dishwasher 2 P5,700 P5,800 P5,800 P5,800 P5,800
Cleaning/Dishwasher P11,760 P11,760 P11,800 P11,800 P11,800
Open P0 P0 P0 P0 P0
Total People 20 24 25 25 25

Total Payroll P399,588 P400,788 P429,828 P431,128 P432,728