POTATO CORNER

Table of Contents

 Executive Summary

 Company Overview

 Product and/or service

 Franchise Location

 Business Environment

 Costumer Analysis

 Competition Analysis

 Marketing Plan

 Operations Plan

 Financial Plan
 EXECUTIVE SUMMARY

Anywhere you go in the Philippines, you are bound to find and see a bright-green kiosk, with
smiling spud next to the now familiar name: POTATO CORNER.

POTATO CORNER is a fast food outlets offer and sell French fries with the range of different
flavors. In this day, all of us that no matter what age are we either we are a kids, adults or may be a
senior, love Potatoes. It was rich in vitamins, mineral and antioxidants, which make them very healthy.
Studied have linked potatoes and their nutrients to a variety of impressive health benefits.

Our ultimate goal as franchisee of potato corner is to show and let people taste how delicious
and healthy potato corners is. This franchise plan aims to put up Potato Corner inside the Gaisano
Mall, Ground Floor, Malabalay City (Capital of Bukidnon Province). With proper use of marketing
strategies, inventory management and quality control, the proponents see a payback period before its
3rd year of operation. This paper will feature the company overview, products and services, customer
analysis, competition analysis, marketing plan, financial plan and more.
COMPANY OVERVIEW

Potato Corner is the original and largest flavored French fries brand in the Philippines.

Founded by Jose P. Magsaysay Jr., the business (Potato Corner) has been operating for over 25
years and received numerous awards. Other than those rewards, Potato Corners was recognized as the
Best Business Model. In 2003, it was recognized as the Franchise Excellence Hall of Fame which was
awarded by Philippine Franchise Association. Potato Corner has been aiming for excellence in the past
years that it was awarded as Best Franchise for (3) consecutive years and Global Franchise Award.

Its opened first outlet in the Philippines in October 1992 and began franchising the year after. It
acknowledged as World’s Best Flavored Fries. Today, potato corner now has over 1,000 stores found
and operating almost in every corner of the words - malls, school canteens, amusement parks locally
and internationally. In every corner of the world, someone wants Potato Corner.

With its simple business operations, optimized global logistics, and strong brand, the Potato
Corner franchise is able to deliver excellent the best flavored French Fries to customers around the
world. Potato Corner is able to cater to almost any location and capture markets from kids to adults
and senior.
PRODUCTS AND/OR SERVICES

Potato Corner is the first French Fries fast food cart that offers different flavors
of fries such as Cheese, Sour Cream, and Barbecue. Potato Corner has been serving millions of
people locally and internationally with their best flavored food since 1992. With one product,
through the years Potato Corner was able to add another product line - Chicken Pops.

The following are product/s of Potato Corner:

Source:https://www.spot.ph/eatdrink/the-latest-eat-drink/83197/potato-corner -super-chicken-pops- a3284-

2020081
FRANCHISE LOCATION

The Franchise location of Potato Corner will be geographically located at Malaybalay City.
Its main location will be Gaisano Mall, Ground Floor Area.
BUSINESS ENVIRONMENT

Business Environment is an important aspect of a business. It allows us to see the current

situation of the business with its Political, Economical, Social, Technology, Legal, and
Environmental perspective. One of the most useful tools in conducting such analysis is PESTLE
Analysis. It shows the stand of the business or company in terms of political, economical, social,
technological, legal and environmental aspects. Potato Corner PESTLE Analysis will be based on
the desired location of the franchise, Gaisano Mall, Malabalay City.

 Political Factors - this factor caters to government policy and tax policy. Potato Corner
may adopt factors such as government policy in the Province of Bukidnon and
specifically in the City of Malaybalay. Since it is a corporation, the said franchise is
subject to 30% VAT under the TRAIN Law and royalty fees imposed by the Franchisor.

 Economical Factors - the Province of Bukidnon has good economic status. Aside from
its major agricultural production, the manufacturing sector in the province is highly
dominated. Since the economy of the province is stable, employment is stable as well.
Thus, making the residents of the Province specifically in its capital city, Malaybalay
capable or has the means to purchase products like Potato Corner.

 Social Factors - residents of Malaybalay City especially the youth ages from 16-21 are
fans of fries (which Potato Corner offers). The buying habits of the people of the
Province are great that they can afford or have the means to purchase Potato Corner.
They tend to purchase this product often because they find this as a perfect pair to their
favorite milk teas.
 Technological Factors - when it comes to new or innovative technology, the Province
cannot automatically purchase or does not arrive in a short time frame. But, the Province
specifically in the City of Malaybalay, technology is not a hindrance to invest or set up a
business.

 Legal Factors - because of the health crisis COVID-19, strict health and safety protocols
have been imposed based on Department of Health (DOH) protocols. Also food cart
stations must perform basic sanitation such as proper hand washing and disinfection
before serving its customers.

 Environmental Factors - Malaybalay City has warm and humid weather. According to
weatherspark, the typical temperature of the city ranges from 66 degrees fahrenheit to 86
degrees fahrenheit. The climate of the city does not affect the buying behavior of the
customers since they can purchase products of Potato Corner either in hot and cold
weather.
COSTUMER ANALYSIS

The present market of this Franchise business is at Gaisano Mall Ground Floor Area,
Malaybalay City. Potato Corner aims to serve shoppers and grocery goers from young children to
adults and senior of the said mall. 75% of Potato Corner are franchise, thus can be seen in any
corners of the Philippines including the Province of Bukidnon. The pricing strategy of Potato Corner
is a marginal strategy.

COMPETITION ANALYSIS

Competitors are composed of (2) direct and indirect competitors. Direct competitors refer to
those businesses who offer the same products with Potato Corner and thus share the same
market/consumers that may affect the daily sales of business (Potato Corner). Indirect competitors on
the other hand refers to those businesses who produce the same product with Potato Corner but do
not share the same market and may not affect the daily sales of the franchise business.

Direct Competitor: Direct competitor, Jollibee may offer a wide variety of

products but when it comes to fries serving they offer to their customers it does not offer
the same with Potato Corner. In some aspects, it may still affect the daily sales of the
franchise business (Potato Corner).
 BUSINESS STRENGTH/S
Jolibee, Gaisano Mall  Well known and famous
family fast food chain with
hundreds of outlets locally
and internationally.
 Kids ultimate favorite.
 Offers meal and has wide
variety of products.
WEAKNESS/ES
 Small serving of
fries.
 Fries offered have
no flavors.
 Some flavors may
be available, but on
a seasonal basis.

Indirect Competitors: Indirect Competitors on the other hand may not

share the same market/customer with Potato Corner but may also affect the sales
of the franchise business.

Yaka  Famous for its cozy and  Small serving of

chill ambiance fries
 Serves drinks.
 Offers a variety of
products to choose from.
Meow’s Cafe  Located at the center of  Small serving of
Malaybalay. fries
 Famous for its Japan
inspired painting (Cherry
Blossom trees)
 Offers a wide variety of
products.
Cafe Affogato  First ice cream hub in  Small serving of
Bukidnon. fries
 Located at the center of
Malaybalay City.
 Offers a wide variety of
products other than fries.
MARKETING PLAN

Potato Corners has been everyone’s favorite. This franchise business’ potential market in
Malaybalay City are its resident ages from 3 years old and up; male and female; single and married;
students, self-employed and employed; and those individuals who share the same preferences.

The main target market of Potato Corner Malaybalay are grocery goers and shoppers of
Gaisano Mall. These individuals are most likely to purchase this franchise product after doing
grocery or shopping as a snack or something to bring at home.

In order to invite and gain more customers' interest in purchasing Potato Corner, the franchise
business offers 1day promo such as Buy-1-Take- 1, Anniversary Promo, Valentines Promo, etc. On a
daily basis, Potato Corner would definitely reach a quota of sales per day. But with these
promotional strategies, it would double or even triple the usual customer accommodated per day.
OPERATIONS PLAN

Management and Organization

Since Potato Corner is a franchise business, it has to adopt the management principles and
practices of the business which was discussed by the franchisor. It does not only adopt the
management but also the system of running such franchise business.

A franchise business like Potato Corner must have the following personnel:
 a manager (can be the franchisee him/herself),
 service crew, and
 may have an HR officer.
These individuals play an important role in daily operations of the franchise business. As to its
operations and service crew training, the franchisor is responsible for that. It is part of the franchise fee
that the franchisee paid. The usual training for franchise business last from a month or 2.

Business Resources

 Franchise Cart
 Deep Fryer (electric) with strainer
 Freezer
 Canisters (shakers)
 Container with spoon
 Fry Scoop and Container Pan
 Paper containers/Packaging
 Weighing scale
 Tongs
 Frying oil
 Paper bags
 Plastic Glovers, hairnet and plastic mask

The cups and other needed materials are provided by the franchisor. Also, included in their
package is the initial training for the crews and two uniform sets.
 Quality Control Procedures

1. The fries should be weighed according to cup sizes.

2. The potatoes should be well refrigerated.

3. The fries should be served neatly.

4. The stall should be remained clean and free from pests.

5. The containers should be washed properly so the juices will not be taste like soap.

6. The service crew should dress neatly properly and adhere to hygiene protocols.

7. The service crew should wear hairnet, gloves, and masks and face shield, if necessary.

8. The FIFO (First in- First Out) inventory model should be used based on the potato supplies.

Byproducts/Waste

Rejected potatoes and peelings are sent to farms to be used as animal feed. The
starch that is removed in the rinsing process is sold to a starch processor.
FINANCIAL PLAN

SALES

SIZE Price (PHP) Volume (Daily) Monthly Sales

Regular 29 15 12,180

Large 55 12 18,480

Jumbo 85 5 11,900

Mega 110 2 6,160

Giga 179 1 5,012

Tera 209 1 5,852

59,584
 Two-Year Projected Operating Statement

Year 1 Year 2

Sales 715,008.00 786,508.80

Cost of Sales 214,502.40 235,952.64
Transportation-In 10,725.12 11,797.63
Gross Profit 489,780.48 538,758.53
Operating Expenses:
Start Up Costs 69,000.00

Legal Fees and Permits 5,486.00

Annual Renewal Fees 2,180.00

Franchise 33,333.33 33,333.33

Salaries 201,600.00 211,680.00
SSS 6,048.00 6,350.40
Pag-Ibig 7,056.00 7,408.80
PhilHealth 4,704.48 4,822.09
Rent Expense 120,000.00 123,600.00
Miscellaneous Expense 5,000.00 5,175.00
Operating Income 37,552.67 144,208.90
Tax 21,450.24 23,595.26

Income After Tax 16,102.43 120,613.64

 One-Year Projected Cash Flow Statement

Operating Year 1
Cash paid to Franchisor (100,000.00)
Cash paid for legal fees and permit (5,486.00)
Cash paid to Suppliers (214,502.40)
Cash received from Customers 715,008.00
Cash paid for Transportation (10,725.12)
Cash paid to Employees (201,600.00)
Cash paid to SSS (6,048.00)
Cash paid to Pag-Ibig (7,056.00)
Cash paid to PhilHealth (4,704.48)
Cash paid for Rent (120,000.00)
Cash paid for Tax (21,450.24)
Cash paid for Miscellaneous Expenses (5,000.00)
Total Cash Operating Inflow/Outflow 18,435.76

Investing
Initial Cost of Investment (69,000.00)
Total Cash Investing Inflow/Outflow (69,000.00)

Financing
Loan Proceeds 300,000.00
Total Cash Financing Inflow/Outflow 300,000.00

Cash, Ending 249,435.76