Business Development

CM&T Berto’s Danao – Transfer to ground floor area from 2 nd floor

EXECUTIVE SUMMARY
I. Overview
Berto’s Habhaban is Virginia Farms, Inc.’s first venture into the ready-to-
eat food business. It is an innovation of the traditional pungko-pungko food
concept to a higher level while maintaining its pocket-friendly prices.

II. Problem Summary

 The average daily sales on the second floor of the existing location
were Php1,540.78.
 Given the volume of sales, the cost and expense were not covered,
resulting in a net loss of 50.7% or Php(23,435).
 Unlike Berto's, which is located on the second floor, customers can
choose what they want to purchase first on the ground floor.

III. Solution Summary

 The Berto's should be moved to the ground floor so that customers can
see and select what they want.
 Assuming that the sales of Berto's at the ground floor will increase by
10% to a total of Php2,650 from the direct competitors.
 Because of the anticipated sales of Php4,190.78 and the resulting net
revenue of Php9,445 (7.5%) per month, the operation's costs and
expenses will be covered.

IV. Market Summary

 Projected sales volume for the year 2023

V. Keys to Success
 Availability of Soup69 products at all times.
 Most competitors struggle on rainy days since no one wants to dine
there, but Berto's offers a cozy space with tint, so people come there to
eat.
 Pocket-friendly prices.

Business Development
 VI. Financial Summary
The income statement is predicated on the idea that 10% of sales from
direct competitors will be transferred to Berto's, in addition to Berto's daily
average sales.

BASE MONTH 1st Q 2nd Q 3rd Q 4th Q YEAR TOTAL

Gross Profit 67,621 202,862 206,919 211,057 217,389 838,227
Total OpEx. 55,027 162,566 162,626 162,688 162,782 650,663
Net Income 9,445 30,222 33,219 36,277 40,955 140,673
Net Income % 7.5% 8.0% 8.6% 9.2% 10.1% 9.0%

VII. Recommendation
The 1% of Mitsumi employees, plus residents of Sabang and CTU were
yet another to take the market into account. At a minimum order of Php55 (1
rice, 1 drink, and dish), the target market will be 100 persons. This would
result in a sales volume of Php5,500 per day for the store, which will result in
a projected net income of Php28,734, or 17.4%.

Business Development