ROVANS FRIED STATION

“We Take Pride in Every Bite”

A BUSINESS PLAN

Prepared by:

VANESSA B. ZABALA
Proprietor

HE 4009- Entrepreneurship and Cooperativism

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 SECTION I: THE BUSINESS

1. Description of the Business

ROVAN’S Friedstation is a special branch of ROVANS FOODHAUS which

will be dedicated in offering convenient, affordable, delicious, nutritious, and freshly
FRIED viands or dishes with healthy vegetable side dish and sauces. Primarily,
ROVAN’S friedstation is different from ROVAN’S foodhaus since the latter which
is the main branch is committed to serve different nutritious, delightful and
palatable viands and dishes thus making ROVAN’S friedstation a SPECIAL
BRANCH.
ROVAN’S Friedstation will be serving dine in and take out customers since
the location of the business is within the side of a highway where driving customers
can stop and buy their choice of foods.
The food business will be offering different fried viands such as FRIED
CHICKEN with coleslaw, FISH NUGGETS in Thousand Island dressing or
coleslaw, DEEP FRIED CHICHARONG BULAKLAK (ILUGON) slices with toyo-
sili-mansi sauce, PAN GRILLED FISH with Papaya Relish and sweet potato thin
slices, LECHON KAWALI with Papaya Relish (Achara) , LUMPIANG SHANGHAI
with sweet and sour sauce, and FRIED VEGETABLE LUMPIA in sweet and sour
sauce. Consumers and customers can purchase the food products in pieces or in
combo meals.

The proponents considers the consumer’s budget, time and convenience in

buying products like of the business, and making sure that the people will only pay
for the product’s worth and business’ efficient service. Consequently, all of
ROVANS Friedstation products are sold in its lowest possible price.

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2. Product/ Service

ROVAN’S Friedstation is a food base business which will be legally registered as

a partnership business. It is a business which will be centered on providing delicious and
affordable fried dishes to customers. These fried dishes are classified as the main product
of the business and provide the primary source of income and therefore the ROVAN’S
friedstation is a product base type of business.

3. Market

The market area of the business will be at the side of a highway. Primarily the
Proponents are expecting to distribute and sold the product to its primary market who are
the students and young professionals since the business is located near a school or
university, boarding houses, apartments and residences. Secondary target markets are
jeepney drivers and individuals with private cars who are considered on-the go customers
and consumers who can just stop-buy-pay-and drive. The proponent’s target market are
with in the middle class society level and whose paying capacity are within middle socio-
economic level. Moreover, since the proponents consider the paying capacity of its target
market, it is rational that one of the consumer and customers buying reason is the
product’s affordability and quality. The target clienteles of ROVAN’S friedstation will
surely buy the food product because of its deliciousness, affordability and convenience.

4. Location of the Business

The business will be located at Andres Bonifacio Avenue Tibanga Highway, Iligan
City. It is within the side of the road and within the business area is a University, a Hospital,
apartments, boarding houses, and residences and other business sites and store.
Therefore location has been chosen because the proponents sees this place to be a
strategic area to make profit and to deliver the food products to its target market. Related
businesses like party shops, pastry shops, tailoring, and snack houses are near the
business making it an additional option for people who are interested and looking for ideas
in products alike of the proponent. The location is also ideal since it is just a minute away

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from its source of suppliers and of the supermarket where other ingredients and raw
materials for production can be purchased.
The business is highly visible and accessible to all because it is situated within the
highway and the busy street of Iligan City. Below is the map of the business location or
area.

Figure 1. The Business Location Rovan’s Friedstation in the screenshot of google

maps.
5. Competitors

Iligan City is known to have a number of food stalls and dine in eateries providing
fried dish, however the production is focus on fried chicken. With regards to the proximity
to the target market, there are three main competitors within the business area. In order
to compare products and/or services, table 1 shows the different factors that would draw
a line between the proponents’ services offered relative to its competitors.

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Table 1. Factors that would draw a line between the proponents’ services relative
to its competitors.
Factors Proponents Competitor 1 Competitor 2 Competitor
3
Price Varied Fixed Fixed Fixed
Location Near the Near the Near the Near the
customers customers customers customers
Accessibility More Accessible Accessible Accessible
accessible
Quality Better Good Good Good
Service
Convenience More Convenient Convenient Convenient
convenient
Products Wide variety One Product One Product One Product

Table 1 shows that what the competitors are currently offering will be the basis for

the proponents’ actions in implementing its plan. The proponents will opt for innovative

strategies that would encourage customer loyalty and would create good image among

the customers.

ROVAN’S Friedstation offers a wide variety of fried dishes with healthy side dish.

Viands comes in a variation of combos meals which ever will fit the taste of the

consumer. Products are sold at a reasonable price. You get to pay for the taste and not

for the brand, that’s why ROVAN’S friedstation takes pride in every bite. Table 2 shows

how ROVAN’s friedstation is different and unique from its competitors and why it should

be the customer’s first choice. Table 2 shows the competitor’s profile in relation to

ROVAN’S friedstation. The profile includes the price, product, location, and service.

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Table 2. PROPONENT and COMPETITOR’S PROFILE

BUSINESS PRICE PRODUCT SERVICE PLACE

PROPONENT Lowest possible Made from over-the- Located near a

price and lower the freshest counter school, a
mark-up price. ingredients service, self- hospital and
Products comes in and a wide service and a dormitories. It
combo and set variation of good area for also located in
meals which makes fried viands dine in the side of the
it more affordable. and side highway where
dishes and it is very visible
sauce. to the by
passers and
automobiles

COMPETITOR Prices are added Only fried Self-service, Alongside are

1 with mark-up price, chicken are over-the- other food
(Chicken value added tax, sold counter and outlets. Thus
Revotado) service fee very little area it’s quite hard
for dine in. to notice

COMPETITOR Prices are added Only fried over-the-

2 with mark-up price, chicken are counter and
(Dawns Fried value added tax, sold no areas for Movable stall
chicken) service fee dine in

COMPETITOR Prices are added Only fried Self-service, Located near a

3 with mark-up price, chicken are over-the- school, a
value added tax, sold counter and hospital and
service fee very little area dormitories. It
(Mackie’s for dine in. also located in
Friedhaus) the side of the
highway but no
area for
parking or
quick stop

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6. Price

Price is really a factor in the marketing mix. Thus the selling price of ROVAN’S
Friedstation will be based on “COST PLUS MARK-UP PRICING TECHNIQUE”. The
proponents will also benchmarked with an existing fried chicken stalls and eateries to
ensure that the pricing of the existing competitors will be comparative with the business’
price. Base on the research conducted the proponent found out that a profit mark-up of
50% over the total product cost is very equitable and competitive especially at this initial
stage. Tables 3 show the price scheme of the products using the cost plus method with
50% mark-up. Combo meals will be priced separately as shown in table 4.

Table 3. Selling Price for Fried Dishes

Product names Total Mark up Suggested Price
Production (50%) (per slice/piece/serving)
Cost
Fried Chicken P190.00 P95.00 P28.50
Lechon Kawali P400.00 P200.00 P50.00
Lumpia Shanghai P206.00 P103.00 P4.50

Fried Vegetable Lumpia P112.50 P56.25 P3.50

Fish Nuggets
P340.00 P170.00 P51.00
Pan Grilled Fish
P250.00 P125.00 P38.00
Chicharon Bulaklak
P125.00 P62.50 P31.50

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Table 4. Selling Price for Combo Meals

Suggested
Suggested Price Price Suggested Price
Product names (per slice/piece/serving) (rice + drink)
Side Dish (in combo meals with rice, drinks
and side dish)

1 Piece Chicken
P5.00
Fried Chicken P27.50 P18.00 (Coleslaw)
P50.50
2 Pieces Chicken
P78.00
P5.00
Lechon Kawali P50.00 P18.00 (Papaya P73.00
Relish)
P2.00 4 Pieces Lumpia
Lumpia (Sweet and Shanghai
P4.50 P18.00
Shanghai Sour P38.00
Sauce)
P2.00 4 Pieces Vegetable
Fried Vegetable (Sweet and Lumpia
P3.50 P18.00
Lumpia Sour P34.00
Sauce)
5 Pieces Fish Nuggets
P5.00
Fish Nuggets P35.00 P18.00 Sticks
(Coleslaw)
P58.00
P5.00
Pan Grilled Fish P51.00 P18.00 (Papaya P74.00
Relish)
Chicharon
P31.50 P18.00 Toyomansi
P49.50
Bulaklak

7. Marketing Strategies

The business will be visible at some social networking sites like Facebook and
Instagram, where prospective buyers can visit and check out the proponent’s page to
determine the location of the business and look into the products for preferred meals.

The project’s marketing strategies will be based on the following course of actions:

7.1 Product Strategy

The business establishment will carry the brand “ROVAN’S

FRIEDSTATION” which will basically provide convenient, affordable, delicious,
nutritious, and freshly FRIED viands or dishes with healthy vegetable side dish and

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sauces. The business’ products will be unique from the existing competition since
it will offer a wide assortment of fried meals and in combo sets.

7.2 Pricing Strategy

The proponent will use a cost plus mark-up pricing technique. Legally
following the percentage mark up for foods and perishable items of the Department
of Trade and Industry which is between 50%-100% mark up. However, the
proponents chooses to have the lowest mark-up percentage to ensure that target
markets will be catered. The proponents will also ensure that the price is set
comparable to the price set by the competitors.

7.3 Promotion Strategy

To strategically promote the products or the services, the proponents will

make use of five tools which are word-of mouth advertising, flyers/leaflets, posters,
tarpaulin and online advertising. Free sticky rice cakes will be given for the first
100 customers. Moreover, the business will also make itself visible in social
networking sites like Facebook and Instagram in order to reach a broader quantity
of prospective customers. On top of that, the business will guarantee a service
beyond compare from the staff and employees.

7.4 Distribution Strategy

The business is a new venture which will not require channel of distribution
through middle men or retailers. The business is open for sales over the counter
or take-out and dine in customers. The locations are within highway and the area
where the students usually passes by, thus it will be accessible to the markets who
would want to avail the food products.

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7.5 Marketing Budget

The costs to be incurred will only be on the promotional measures. In the case of
the flyers, a single printed one will be divided into four. Table 5 shows the proposed
budget.

Table 5. Promotional Tools and Proposed Marketing Budget

TOOLS PRICE QUANTITY/SIZE DURATION

Tarpaulin P200.00 x 2 =P400.00 2 pcs. Max of 6 months
Leaflets 500 x 4 = 2000
Coupon bond P155.00/rim copies Max of 6 months
Printing P400.00 500 copies
500 copies
Posters Colored: 18 pcs. Max of 6 months
(Colored and Black P20.00 x 8 = P160.00
& White) Black:
P1.00 x 10 = P10.00

Online P50.00 Max of 30 days

Advertisement
Free Sticky Rice P600.00 100 slices 1 Day operation
Cake
Total P1,875.00

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8. Summary of Section One

ROVAN’S Friedstation is a food base business which will be registered as

a partnership. The business will be offering convenient, affordable, delicious,
nutritious, and freshly FRIED viands or dishes with healthy vegetable side dish and
sauces.

The business will be located at Andres Bonifacio Avenue Tibanga Highway,

Iligan City. It is within the side of the road and within the business area is a
University, a Hospital, apartments, boarding houses, and residences and other
business sites and store. Therefore, with its strategic location, ROVAN’S
Friedstation will be serving dine in and take out to its primary customers who are
students and young professionals, and secondary target markets who are jeepney
drivers and individuals with private cars who are considered on-the go customers
and consumers who can just stop-buy-pay-and drive. The proponent’s target
market are with in the middle class society level and whose paying capacity are
within middle socio-economic level.
Moreover, since the proponents consider the paying capacity of its target
market, it is rational that one of the consumer and customer’s buying reason is the
product’s affordability and quality. The target clienteles of ROVAN’S friedstation
will surely buy the food product because of its deliciousness, affordability and
convenience which is the primary edge of the business from its competitors.

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 SECTION II: PRODUCTION PLAN

1. Product Classification

ROVAN’S Friedstation is a food business which will primarily be offering

convenient, affordable, delicious, nutritious, and freshly FRIED viands or dishes
with healthy vegetable side dish and sauces. ROVAN’S Friedstation will be serving
dine in and take out customers since the location of the business is within the side
of a highway where driving customers can stop and buy their choice of foods. The
food business will be offering different fried viands such as fried chicken, fish
nuggets, deep fried chicharon bulaklak (ilugon) slices, pan grilled fish, lechon
kawali, lumpia shanghai and fried vegetable lumpia. Consumers and customers
can purchase the food products in pieces or in combo meals.

2. Product Specification

ROVAN’S FRIEDSTATION will primarily offer fried dishes which can be

sold in pieces or in combo meals. The following are the specific fried dishes
which will be served:

2.1 Fried Chicken

Rovan’s fried chicken is a crispy,
juicy and deliciously fried chicken
coated with special seasoning. Fried
chicken in combo meals will be served
with 1 cup of rice, 1 glass of drink, and
a choice of coleslaw, gravy or catsup
depending on the preference of the
customer.

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2.2. Fish Nuggets
Fish Nuggets are seasoned,
breaded with bread crumbs and
golden brown fried fish. Fish nuggets
becomes more palatable when paired
with coleslaw or Thousand Island
dressing. Fish nuggets when sold in
combo meals will be served in 4-5
pieces of fish nuggets sticks, a cup of
rice, 1 glass of drink, and a choice of
coleslaw, catsup or Thousand Island
dressing depending on the preference of the customer.

2.3 Deep Fried Chicharon Bulaklak (Ilugon) Slices

Deep fried chicharon bulaklak
(ilugon) slices are sumptuously
prepared pig intestines seasoned
and crispy fried. Deep fried
chicharon bulaklak (ilugon) slices
when sold in combo meals will be
served with rice, drinks and a soy
sauce, chili, and calamansi
(toyosilimansi) mix.

2.4 Pan Grilled Fish

Pan Grilled Fish is a special Rovan’s Friedstation recipe. Fish meat slices
will be marinated and grilled in a pan with very little volume of oil. Pan grilled fish
when sold in combo meals will be served with rice, drinks and a soy sauce, chili,
and calamansi (toyosilimansi) mix.

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 2.5 Lechon Kawali
Lechon Kawali is a deep fried
pork belly with golden brown crispy
skin. When sold in combo meals it will
be served with rice, drinks and choice
of Papaya Relish (Achara) or a soy
sauce, chili, and calamansi
(toyosilimansi) mix depending on the
preference of customers.

2.6 Lumpia Shanghai

Lumpia Shanghai is a mixture of ground pork, turnip, carrots and onions,
then seasoned, wrap in lumpia wrapper and deep fried. When sold in combo
meals it will be served with rice, drinks and sweet and sour sauce.

2.7 Fried Vegetable Lumpia

Fried Vegetable Lumpia is a mixture of vegetable such as carrots, green
beans, bean sprouts (togue), chayote and onions, then seasoned, wrap in lumpia
wrapper and deep fried. When sold in combo meals it will be served with rice,
drinks and sweet and sour sauce.

3. Raw Materials

Raw Materials are materials necessary to produce the product of the

business. Raw materials are categorize into direct materials which are inputs that
become part of the product and indirect materials which are all other materials
consumed in the making of the product but do not become part of the product such
as fuel, lubricants etc. The materials needed for this business are readily available
within the city and the proponents had gone through canvassing for the prices of
raw materials. Moreover Table 6 and 7 shows the required quantity of raw
materials, cost of raw materials, and the availability of these raw

14
materials that are needed in the operation of the business. Specifically Table 6
shows the list of direct raw materials that is consumable in a one or two day’s
operation while Table 7 shows the list of indirect raw materials.

Table 6. Direct Raw Materials

INGREDIENT QUANTITY SOURCE UNIT COST TOTAL COST
Oil 2 Gallons Lian Hung P260.00 P520.00
Chicken 10 Kilos Meat 126.00 1,260.00
Supplier
Pork Lean Meat 2 Kilos Meat 190.00 380.00
Supplier
Pork Belly 4 Kilos Meat 190.00 760.00
Supplier
Pork Intestines 4 kilos Meat 80.00 320.00
Supplier
Fish (Tuna) 5 Kilos Fish 300.00 1,200.00
Supplier
Eggs 1 dozen Supplier 140.00 140.00
Singkamas 1 Kilos Supermarket 30.00 30.00
Carrots 3 Kilos Supermarket 30.00 90.00
Baguio Beans ½ Kilo Supermarket 20.00 10.00
Chayote 1 Kilo Supermarket 25.00 25.00
Bean Sprouts 1 Kilo Supermarket 20.00 20.00
Cabbage 1 Kilo Supermarket 30.00 30.00
Calamansi 2 Kilos Supermarket 25.00 50.00
Chili Peppers ¼ Kilo Supermarket 50.00 12.50
Onions 1 Kilo Supermarket 60.00 60.00
Flour 3 Kilos Grocery 48.00 144.00
MSG 2 Kilo Grocery 20.00 40.00
Salt 1 Kilo Grocery 10.00 10.00
Black Pepper ¼ Kilo Grocery 60.00 15.00
Brown Sugar 1 Kilo Grocery 40.00 40.00
Soy Sauce 1 Liter Grocery 30.00 30.00
Oyster Sauce 250 ml Grocery 50.00 50.00
Worcestershire 125 ml Grocery 50.00 50.00
Sauce
TOTAL 5,286.50

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 Table 7. Indirect Raw Material

MATERIALS QUANTITY SOURCE UNIT COST TOTAL COST

Liquefied 11.9 kg Gas P650.00 P650.00
Petroleum PETRONAS
Gasoline Dealer
TOTAL P650.00

4. Operation Process

ROVANS Friedstation offers deliciously fried viands. The different fried

foods are specifically cooked as signified in the following process flow charts:

Figure 2. Process Flowchart for Fried Chicken

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Figure 3. Process Flowchart for Chicharon Bulaklak

Figure 4. Process Flowchart for Fish Nuggets

17
 Figure 5. Process Flowchart for Lechon Kawali

Figure 6. Process Flowchart for Pan Grilled Fish

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 Figure 7. Process Flowchart for Lumpia Shanghai

Figure 8. Process Flowchart for FRIED VEGETABLE LUMPIA

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5. Classification of Equipment

ROVAN’S Friedstation as a food business entity will be needing sets of tools,

equipment, supplies and furniture which are in classified in the Table 8.

KITCHEN TOOLS
MATERIALS QUANTITY SOURCE UNIT COST TOTAL COST
Coarse Mesh 4 Pieces Department P300.00 P1,200.00
Strainer Stores
Cooling Rack 2 Sets Department 2000,00 4,000.00
Set Stores
Large Mixing 5 Pieces Department 300.00 1,500.00
Bowls Stores
Medium Size 5 Pieces Department 200.00 1,000.00
Mixing Bowls Stores
Kitchen Fork 5 Pieces Department 100.00 500.00
Stores
Tongs 5 Pieces Department 100.00 500.00
Stores
Knife 2 Sets Department 1,000.00 2,000.00
Stores
Chopping 3 Pieces Department 300.00 900.00
Boards Stores
Sauce Pans 5 Units Department 500.00 2,500.00
Stores
TOTAL P14,100.00
TABLE APPOINTMENTS
MATERIALS QUANTITY SOURCE UNIT COST TOTAL COST
Dinner Plates 50 pieces Department 30.00 1,500.00
Stores
Spoons 4 Dozens Department 120.00 480.00
Stores
Fork 4 Dozens Department 120.00 480.00
Stores
Glass 50 pieces Department 30.00 1,500.00
Stores
Saucer 50 pieces Department 10.00 500.00
Stores
TOTAL P4,460.00

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KITCHEN EQUIPMENTS
MATERIALS QUANTITY SOURCE UNIT COST TOTAL COST
Deep Fryer 2 Sets Kitchen 9,000.00 18,000.00
Appliance
Center
Rapid Burners 3 Units Kitchen 5,000.00 15,000.00
Appliance
Center
Refrigerator 1 Unit Kitchen 25,000.00 25,000.00
Appliance
Center
Chest Type 1Unit Kitchen 30,000.00 30,000.00
Refrigerators Appliance
Center
TOTAL P88,000.00
OFFICE SUPPLIES AND MATERIALS
MATERIALS QUANTITY SOURCE UNIT COST TOTAL COST
Bond Papers 2 Rims Educational 122.00 244.00
Supply
Stores
Ballpens 3 Pieces Educational 10.00 30.00
Supply
Stores
Pencils 1 dozen Educational 100.00 100.00
Supply
Stores
Calculators 3 Units Educational 500.00 1,500.00
Supply
Stores
Cash Register 1 Unit Educational 5,000.00 5,000.00
Supply
Stores
Air-con 1 Unit Appliance 9,000.00 9,000.00
Center
TOTAL P15,874.00
CLEANING MATERIALS AND SUPPLIES
MATERIALS QUANTITY SOURCE UNIT COST TOTAL COST
FLOOR MAP 2 Units Department 300.00 600.00
Stores
Brooms 3 Units Department 100.00 300.00
Stores
Broom Sticks 3 Units Department 30.00 90.00
Stores
Brush 3 Pieces Department 30.00 90.00
Stores

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 Dust Pan 3 Units Department 100.00 300.00
Stores
Hand soap 3 Bottles Department 100.00 300.00
Stores
Dishwashing 3 Bottles Department 60.00 120.00
Liquids Stores
Trash Bins 6 Sets Department 300.00 1,800.00
Stores
TOTAL P3,600.00
FURNITURES AND FIXTURE
Dining Tables 10 Units Furniture 1,000.00 10,000.00
Shops
Dining Chairs 20 Units Furniture 500.00 10,000.00
Shops
Office Table 1 Unit Furniture 2,000.00 2,000.00
Shops
Office Chair 1 Unit Furniture 1,000.00 1,000.00
Shops
Stainless Steel Furniture 10,000.00 10,000.00
Kitchen Work 2 Units Shops
Tables
TOTAL P33,000.00

OVER ALL TOTAL P159,034.00

Table 8. Classification of Tools, Equipment, Supplies and Furniture

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5.1 Maintenance and Repair of the Machines and Equipment

Always keep the equipment in good shape and handle those with proper
care. Proper care and maintenance will ensure good operation in the long run. To
maintain the equipment properly, there will be safety precautions, instructions, and
other reminders that will be posted inside the kitchen to assure correct and safe usage
of its machines and equipment. The equipment shall be checked, cleaned, and
polished daily. Maintenance of air condition in the business shall be made twice every
year. Repairs shall be made as soon as damages or any problems are seen and
detected so as not to compromise the operation of the business. There will also be
checking of electrical parts every month.

6. Plant Size (Determinants of Product Area and Capacity Utilization)

A small and attractive fried station with six (6) by eight (8) square meters floor area
and five (5) meters high. The size of the locations will just be substantial to accommodate
the customers. The store can accommodate at most twenty (20) customers, inside the
dining area.
The production area will be able to store a capacity of raw materials that is good
for 1 to 2 days operation, assuming 25 working days in a month and will be able to produce
the products daily. The store is a rented space and was renovated to fit to the type of
business of the proponents. Figure 9 and 10 shows the store layout and floor plan of the
business.
ROVAN’S Friedstation will have an approximately 100% capacity utilization. This
will imply that although the business will open from Monday to Saturday and will have a
rest day on Sundays, however the operation per day is 12 hours. Services will start from
7 o’clock in the morning up to 7 o’clock in the evening.

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STORE LAY-OUT (FRONT VIEW)

24
 FLOOR PLAN

7. Utilities

Rovan’s Friedstation as a food business will require utilities and resources such as
electricity, water and liquefied petroleum gas (LPG) to run smoothly with its operations.
The business store will already be installed with electricity for lighting and ventilations and
water plumbing systems to support its full operation in the dining and kitchen areas. Water
source will be pumped and stored in water tanks to ensure continuous water supply.
Furthermore stoves or burners which will be heated using LPGs will be installed carefully
to have safe kitchen productions.
To ensure safe, clean and healthy surroundings within the business premises,
daily collection and disposal of segregated wastes will be done.

25
8. Production Schedule

The business has a production capacity of sets of fried viands in different number
of pieces per variety. The business will officially operate at 100% capacity per day. Table
9 shows the approximate production schedule of each variety of fried dish.

Table 9. Production and Technical Schedule

Product Preparation and Cooking Pieces/Servings

Time
Fried Chicken 45 minutes 10 pieces
Fish Nuggets 1 Hour 10 Servings
Chicharon Bulaklak 1 Hour 15 servings
Pan Grilled Fish 45 minutes 10 pieces
Lechon Kawali 1 hour and 30 minutes 12 pieces
Lumpia Shanghai 1 hour and 30 minutes 70 pieces
Fried Vegetable Lumpia 1 hour and 30 minutes 70 pieces

9. Compensation Chart of the Employees

The business’ employees will be paid with the precise value for their work every month
and they also will be provided with free meals, snacks and boarding house stay. The table
below shows the compensation chart for the employees.

Table 10. Compensation Chart of the Employee

No. of Salary Meal allowances Total Cost Total Cost per
worker per day per day per day month
Direct Labor
Cook 2 100 100 200 P10,000.00
Dishwasher 1 100 100 200 5,000.00
Indirect
Labor
Manager 1 315 100 415 P9,960.00
Food Servers 2 100 100 200 P10,000.00
Supervisor 1 315 100 415 P9,960.00
Total Labor Php 41,210.00
Cost

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10. Unit Production Cost

Table 11. Cost of Raw Materials per Product

FRIED CHICKEN
Quantity Unit Items Unit Total Amount
Price
1 Kilo Chicken 126.00 126.00
1/4 Kilo Flour 80.00 20.00
Seasoning
Oil 30.00 30.00
1 Pc. egg 6.00 6.00
Total 182.00
Mark Up (50%) 91.00
Selling Price 273.00
unit selling price/ slice 27.50
LECHON KAWALI
Quantity Unit Items Unit Total Amount
Price
2 Kilo PORK BELLY 180.00 360.00
Seasoning 10.00
Oil 30.00 30.00
Total 400.00
Mark Up (50%) 200.00
Selling Price 600.00
unit selling price/ slice 50.00
FISH NUGGETS
Quantity Unit Items Unit Total Amount
Price
1 Kilo Fish 200.00 200.00
Seasoning 20.00
¼ Kilo Flour 48.00 12.00
250 grams Breadcrumbs 12.00 12.00
Oil 30.00 30.00
2 Pc. Eggs 18.00 6.00
Total 280.00
Mark Up (50%) 140.00
Selling Price 420.00
unit selling price/ serving 35.00

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CHICHARON BULAKLAK
Quantity Unit Items Unit Total Amount
Price
2 Kilos Pig Intestines 80.00 80.00
Seasoning 10.00 10.00
100 grams Flour 5.00
Oil 30.00 30.00
Total 125.00
Mark Up (50%) 62.50
Selling Price 187.50
unit selling price/ serving 31.50
LUMPIA SHANGHAI
Quantity Unit Items Unit Total Amount
Price
½ Kilo Pork Lean Meat 190.00 95.00
Seasoning 20.00
½ Kilo Carrots 30.00 15.00
½ kilo Turnips 30.00 15.00
Oil 30.00 30.00
1 Pc. Eggs 6.00 6.00
1 Pack Lumpia 25.00 25.00
Wrapper
Total 206.00
Mark Up (50%) 103.00
Selling Price 309.00
unit selling price/ piece 4.50
FRIED VEGETABLE LUMPIA
Quantity Unit Items Unit Total Amount
Price
1/4 Kilo Baguio Beans 30.00 12.50
¼ Kilo Bean Sprouts 20.00 5.00
1 pc Chayote 20.00 5.00
½ Kilo Carrots 30.00 15.00
½ kilo Turnips 30.00 15.00
Oil 30.00 30.00
Seasonings 5.00
1 Pack Lumpia 25.00 25.00
Wrapper
Total 112.50
Mark Up (50%) 56.25
Selling Price 168.75
unit selling price/ piece 3.50

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PAN GRILLED FISH
Quantity Unit Items Unit Total Amount
Price
1 Kilo TUNA 300.00 300.00
Seasoning 10.00
Oil 30.00 30.00
Total 340.00
Mark Up (50%) 170.00
Selling Price 510.00
unit selling price/ slice 51.00

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 SECTION III: ORGANIZATION AND MANAGEMENT PLAN

1. Form of Business

The business will be registered under the name of ROVAN’S

FRIEDSTATION as a partnership form of business composing of one general
partners who are Rowena B. Camino and Vanessa B. Zabala. The business’
branch is situated at the side of a highway specifically at Andres Bonifacio Ave.,
Tibanga Highway Iligan City.

2. Organizational Structure

Rovan’s Friedstation as a small business enterprise will also have a simple

organizational structure with less than 10 employees. The business will be headed
by Ms. Vanessa B. Zabala who will act as the general manager of the business.
Ms. Rowena B. Camino will act as a Supervisor who will directly monitor and
control business operations especially in the absence of the manager. Ms. Camino
will also serve as a cashier to monitor the daily cash outs and sales of the business.
The proponents will hire two food servers, two cook and 1 dishwasher. This will
ensure smooth, safe and quality business operations daily.
Being a small operation entity, the business will be managed in a casual
and authoritarian way. However, strict rules will be enforced regarding quality
standards and production operation. The organizational structure is shown in
Figure 9.

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 Figure 9. Organizational Chart of Rovan’s Friedstation

3. Management
The management of Rovan’s Friedstation will be filled up its direct owners who
also acts as the Manager and Supervisor. Rovan’s Friedstation will be managed by Ms.
Rowena B. Camino and Ms. Vanessa B. Zabala who are equipped with the following
qualifications:
 Ms. Vanessa B. Zabala, the Manager is a graduate of Bachelor of Science
in Industrial Education major in Foods. Ms. Zabala has background in
restaurant management during her stay as a manager in one of the
restaurants in Iligan City. She is also well-versed with food service skills and
competencies. As a faculty member in one of the University in Iligan City,
Ms. Zabala is emergent in the aspects of human administration and
supervision. She has good management skills as evaluated by her
employers and supervisors.

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  Ms. Rowena B. Camino, the Supervisor and Cashier is a graduate of
Bachelor of Secondary Education major in Home Economics. Ms. Camino
is a business enthusiast who have been managing Rovan’s Foodhouse for
14 years. With her background and skills in handling the operations of
Rovan’s Foodhouse she has honed herself as a good business woman
through experience and educational background.

Both owners are directly trained in management and kitchen operations

because of their family business, the Rovan’s Foodhouse. The proponent’s father,
a very experience cook have trained them in the different dos and don’ts of the
actual kitchen operations and the proponent’s mother is a businesswoman who
have trained the proponents in the human supervision and financial management
aspects of the business.

2. Personnel
Rovan’s Friedstation as a small business entity is in need of limited number of
personnel such as the following:
COOK
 The cook should have the following skills and qualifications:
o A senior high graduate who have expertise and specializations under
home economics track specifically in the food service area.
o Must have a TESDA competency related to cooking
o Must be 18 years old and above
o Willing to learn and work under pressure.
o Specifically he/she must have the following kitchen skills:
 Well versed in planning menus, establishing size of food
portions, estimating food requirements and costs, and
ordering supplies
 Highly experienced in performing food quality inspections to
ensure that all food items conform to hygiene standards

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  Competent at mixing the right amount of ingredients
according to weight and type
 Highly experienced in performing preventative and general
maintenance on kitchen equipment
 Hands-on experience in handling cooking staff efficiently and
directing it to ensure handling of kitchen functions
 Track record of following best hygiene and sanitation
practices aimed at providing quality food services
 Able to maintain accurate inventory and records of food,
supplies and utensils
 Committed to maintain a clean kitchen and work area

DISHWASHER
 The dishwasher should have the following skills and qualifications:
o A senior high graduate who have expertise and specializations
under home economics track specifically in the food service area.
o Must have a TESDA competency related to food and beverage
service
o Must be 18 years old and above
o Willing to learn and work under pressure.
o Specifically he/she must have the following required skills of a
dishwasher:
 Exceptionally skilled in maintaining cleanliness of all kitchen
equipment including; china, glassware, flatware, silverware,
cookware, pots and pans
 Extremely capable of providing genuine hospitality to guests
while exceeding their expectations
 Remarkable ability of expertly operating and burnishing all
kitchen equipment and utensils
 Knows how to best use the detergents and sterilizing
chemicals to wash and clean the dishes

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  Well-versed in ensuring proper supply of clean dishware,
utensils, glassware to stock the allotted dining area
 Highly skilled in separating washable items
 Able to handle and transport glassware cautiously
 Well-experienced in removing trash and debris, and
emptying trashcans
FOOD SERVER
 The food server should have the following skills and qualifications:
o A senior high graduate who have expertise and specializations under
home economics track specifically in the food service management
o Must have a TESDA competency related to food and beverage
service
o Must be 18 years old and above
o Willing to learn and work under pressure.
o Specifically he/she must have the following required skills of a food
server:
 Good and pleasing customer service
 Safety conscious
 Efficient physical speed and strength
 Good attention to detail
 Effective communication skills

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 SECTION IV: FINANCIAL DATA

1. Sources and Application of Funding

Rovan’s friedstation as a small business entity will also require a small starting
capital. Since proponents are members of most trusted cooperatives in Mindanao,
proponents will secure financial assistance from Cooperatives.

The proponents will apply for a multipurpose loan or business capital loan which
will be used for the following purposes:

 Purchase of kitchen tools and equipment, table appointments, furniture and

fixture, and office supplies.
 Purchase of raw materials for the starting operations of the business.

Proponents are “Members of Good Standing (MIGS)” in the cooperatives where

they have invested their money, the proponents will be allowed to loan a bigger amount
depending on their share capitals and savings. No collateral requirements are needed
and only their paying capacity and shares will be used as basis for the approval of the
amount they have applied. Moreover, the maximum loanable amount of the proponents
when added together will suffice the amount of money needed to start the business.

2. Capital and Equipment List

For the business operations to run efficiently the following capital and equipment
list will be necessary:

KITCHEN TOOLS

Kitchen tools are necessary small hand held items used for food preparations
such as cutting, chopping, mixing, grinding and other small kitchen operations. In this
business, most kitchen tools which will be purchased are those which are necessary in
the process of frying such as straining oils, chopping vegetables for side dish and
mixing seasonings. Table 12 shows the common kitchen tools used in fried station.

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Table 12. List of Kitchen Tools
KITCHEN TOOLS
MATERIALS QUANTITY SOURCE UNIT COST TOTAL COST
Coarse Mesh 4 Pieces Department P300.00 P1,200.00
Strainer Stores
Cooling Rack 2 Sets Department 2000,00 4,000.00
Set Stores
Large Mixing 5 Pieces Department 300.00 1,500.00
Bowls Stores
Medium Size 5 Pieces Department 200.00 1,000.00
Mixing Bowls Stores
Kitchen Fork 5 Pieces Department 100.00 500.00
Stores
Tongs 5 Pieces Department 100.00 500.00
Stores
Knife 2 Sets Department 1,000.00 2,000.00
Stores
Chopping 3 Pieces Department 300.00 900.00
Boards Stores
Sauce Pans 5 Units Department 500.00 2,500.00
Stores
TOTAL P14,100

TABLE APPOINMENTS

Table appointments are important items in the dining area. During the business
operations, consumers who will be eating inside the store will require a set of table
appointments. Table 13 shows the list of table appointments.

Table 13. List of Table Appointments

MATERIALS QUANTITY SOURCE UNIT COST TOTAL COST
Dinner Plates 50 pieces Department 30.00 1,500.00
Stores
Spoons 4 Dozens Department 120.00 480.00
Stores
Fork 4 Dozens Department 120.00 480.00
Stores
Glass 50 pieces Department 30.00 1,500.00
Stores
Saucer 50 pieces Department 10.00 500.00
Stores
TOTAL P4,460.00

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KITCHEN EQUIPMENT

Rovan’s fried station is a food business which will require large equipment for
storage of perishable food items like meat, fish and chicken. Refrigerators and chest type
freezers are necessary for storage. Most importantly deep fryers are significant for the
business operation as this is the main method of cooking the main products of the
business. Table 14 shows the lists of kitchen equipment.

Table 14. List of Kitchen Equipment

KITCHEN EQUIPMENTS
MATERIALS QUANTITY SOURCE UNIT COST TOTAL COST
Deep Fryer 2 Sets Kitchen 9,000.00 18,000.00
Appliance
Center
Rapid Burners 3 Units Kitchen 5,000.00 15,000.00
Appliance
Center
Refrigerator 1 Unit Kitchen 25,000.00 25,000.00
Appliance
Center
Chest Type 1Unit Kitchen 30,000.00 30,000.00
Refrigerators Appliance
Center
TOTAL P88,000.00

OFFICE SUPPLIES AND MATERIALS

There are other things that should be needed in order to record sales, expenses
and other transactions in a day. These are called supply which may be not so important
to the operation but at some time, necessary for any other matters. So, the management
decide to have a record book for recording every business transactions, pens for writing
and staple wire to keep the stapler working. Below are the list with their corresponding
amounts

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.
Table 15.List of Office Supplies and Materials

OFFICE SUPPLIES AND MATERIALS

MATERIALS QUANTITY SOURCE UNIT COST TOTAL COST
Bond Papers 2 Rims Educational 122.00 244.00
Supply
Stores
Ballpens 3 Pieces Educational 10.00 30.00
Supply
Stores
Pencils 1 dozen Educational 100.00 100.00
Supply
Stores
Calculators 3 Units Educational 500.00 1,500.00
Supply
Stores
Cash Register 1 Unit Educational 5,000.00 5,000.00
Supply
Stores
Air-con 1 Unit Appliance 9,000.00 9,000.00
Center
TOTAL P15,874.00

CLEANING MATERIALS AND SUPPLIES

To make sure that store premises are sustainably clean and safe, a list of cleaning
materials and supplies must be purchased. These set of cleaning supplies includes dining
area and kitchen area. Table 16 shows the list of cleaning materials and supplies.

CLEANING MATERIALS AND SUPPLIES

MATERIALS QUANTITY SOURCE UNIT COST TOTAL COST
FLOOR MAP 2 Units Department 300.00 600.00
Stores
Brooms 3 Units Department 100.00 300.00
Stores
Broom Sticks 3 Units Department 30.00 90.00
Stores
Brush 3 Pieces Department 30.00 90.00
Stores
Dust Pan 3 Units Department 100.00 300.00
Stores

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 Hand soap 3 Bottles Department 100.00 300.00
Stores
Dishwashing 3 Bottles Department 60.00 120.00
Liquids Stores
Trash Bins 6 Sets Department 300.00 1,800.00
Stores
TOTAL P3,600.00
Table 16: List of cleaning materials and supplies.

FURNITURE AND FIXTURE

Furniture and fixtures are necessary items in the business premises because
these make customers and consumers comfortable in staying and dining inside the
business store. Tables and chairs for dining and kitchen work areas are just some of
these items which are found in the list.

Table 17. List of Furniture and Fixture

FURNITURES AND FIXTURE

Dining Tables 10 Units Furniture 1,000.00 10,000.00
Shops
Dining Chairs 20 Units Furniture 500.00 10,000.00
Shops
Office Table 1 Unit Furniture 2,000.00 2,000.00
Shops
Office Chair 1 Unit Furniture 1,000.00 1,000.00
Shops
Stainless Steel Furniture 10,000.00 10,000.00
Kitchen Work 2 Units Shops
Tables
TOTAL P33,000.00

PRE-OPERATING EXPENSES

The registration of the business will be one of the incurred expenses in the
business. Transportation and commnunications expenses will also be included because
the proponents will need to visit places for possible location of the business and will have
to contact persons that are concerned with the business. Below are the costs of pre-
operating expenses incurred for preparing the business plan and the business itself.

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 Pre-Operating Expenses

Registration Cost P 200.00

Survey Cost 98.00
Transportation Cost 248.00
Electricity 100.00
TOTAL Pre-operating Expenses P 646.00

LIST OF CAPITAL REQUIREMENTS OF THE BUSINESS

Starting the first business operations will require the needed capital requirements
for the business. ROVAN’S Friedstation will be needing the total capital requirement of
P165, 616.50 or approximately 170,000.00.

CAPITAL REQUIREMENT VALUE/COST

Tools, Equipment, Furniture, Fixtures, P159,034.00
Office Supplies and Materials
Raw Materials 5,936.50
Pre-Operating Expenses 646.00
TOTAL P165,616.50

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