Lyceum Northwestern University

Institute of Graduate and Professional Studies

i

“MANDARIN RESTAURANT”
A
FEASIBILITY STUDY

Presented to the Faculty of the

Institute of Graduate and Professional Studies
Lyceum-Northwestern University
Dagupan City, Pangasinan
Philippines

In Partial Fulfillment
Of the Requirements for the Degree of
Master in Business Administration

WANG KUN

July 16, 2016

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Institute of Graduate and Professional Studies
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CERTIFICATION AND APPROVAL SHEET

This Feasibility study entitled “MANDARIN RESTAURANT” prepared

and submitted by WANG KUN in partial fulfillment of the requirements for the
degree of Master in Business Administration has been examined and is
hereby recommended for Final Oral Examination on July 16, 2016.

PEDRO F. SISON, JR. DBA,CPA

Adviser

APPROVAL SHEET

Approved by the Panel of Examiners on Oral Examination with a grade of 92%

ROMANA O. FABREGAS, Ph.D.

Chairman

MARIETTA B. SORIO, DBA,CPA NARCISO CASTRO, DBA

Member Member

Accepted and approved in partial fulfillment of the requirements for the

degree of MASTER IN BUSINESS ADMINISTRATION.

Comprehensive Examination Grade 92% Date: July 10, 2016

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ACKNOWLEDGEMENT

The researcher would like to express her sincerest heartfelt appreciation to

the contributions of special people who inspired her to complete this research

study. The dean of the Institute and Graduate and professional Studies and the

Chairman of the defense, Dr.Romana O. Fabregas, Dr. Pedro F. Sison Jr.,

feasibility adviser and Professor, The members of the Panels, Dr. Marietta B.

Sorio and Dr. Narciso Castro for their ideas which greatly improved the

contents of this research study.

The Researcher
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DEDICATION

The researcher would like to dedicate this feasibility study To my family

who had sacrificed their life and made me who I am now. To my teachers and all

my friends here in the Philippines and in China.

The Researcher
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Institute of Graduate and Professional Studies
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TABLE OF CONTENTS

Title Page ………………………………………………..…………………………………………….i

Certification and Approval Sheet ……………..….………………………………………….…ii

Acknowledgements ……………………………………………………………….………………...iii

Dedication ………..………………………………………………………………………………....iv

Table of Contents ……….………………………………………….……………………………..v

List of Tables ………………………………………………………………………………….ix

List of Figures ………………………………………………………………………………….x

Feasibility Abstract …………………………………………………………………………………xi

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Table of Contents

CHAPTER 1 – MARKET STUDY

Market Description ……..………………………………………………………………...1

Business Name ……………………………………………………………………………..2

Business Concept .……….……………………………………………….……………..2

Legal Structure ……..…………………………………………….….…………………..3

Market Potential ………..………………………….………………..…………..………3

Mission Statement……..………………………..……………………….…………… 5

Vision Statement………..………………………………….……………………………5

The Product………………..……………………………………………………………..5

Market Size Growth …………..……………………………………………………….6

Demand Analysis…..………………………………………………………………….14

Supply Analysis……….………………………………………………………………..15
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Demand and Supply Analysis .………..…………………………………………16

Price Study……………………………………………….……………...………………16

Comparative Analysis……………………………………….………….…………….18

Promotional Strategy…………………………………….…………..………………20

SWOT Analysis …………………………………..…………………………….....21

CHAPTER II – TECHNICAL STUDY

Plant size and Capacity…………..…………………………………..………..….23

Business Location …………………………………………………………...……24

Business Map……………………………………………….…………………..……..24

Frontage of the Building…………………………………..……………………….25

Interior Design …...…………………………………………………………….…..26

Machineries and Equipment…..…………………………………………….…..29

Production Process…………………………..……………………………….…….31

Flow of Control in Sales and Service..……………………………………….34

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Sanitation …………………………………………………………………………….34

CHAPTER III – MANAGEMENT STUDY

Legal Form of Business Organization……………………………………………40

Organizational Structure………..……………………………………………………40

Organizational Chart……………………………..……………………………………41

Company Policy on Personnel………………….…………………………………..43

CHAPTER IV – FINANCIAL STUDY

Basic Financial Assumptions ………………………………………………………52

Projected Income Statement……………………………………………………….54

Projected Statement of Financial Position…….……………….……………..58

Projected Financial Ratios……………………………………………………………59

Chapter V – SOCIO-ECONOMIC STUDY……………………………......................60

Bibliography……………………………………………………………………………………….63
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Curriculum Vitae ………………………………………………………………………………..64

List of Tables

Table 1 Tourist Arrival in Pangasinan ……..………………………….7

Table 2 Sex …………………………………………………………….…………8

Table 3 Civil Status …………………………………………..…………….…..9

Table 4 Age ……………………………………………..……….…….………..10

Table 5 Monthly Income …………………………………………………..11

Table 6 Frequency in Eating in Restaurant……………………………….12

Table 7 Food Preferences …………………………………………………..13

Table 8 Price Lists ……………………………………………….……………17

Table 9 Comparative Analysis …….…………………….……………19

Table 10 Machineries and Equipment ………………….……………29

Table 11 Kitchen Utensils …………………………………….……………30

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Table 12 Project Cost ………………….……………………………………..…35

Table 13 Leasing Improvement …………………..………………..…36

Table 14 Miscellaneous Expense …………………..………………..…37

Table 15 Taxes and Licenses ………………….……………………………..37

Table 16 Advertising Cost ………………….…………………………..…38

Table 17 Schedule of Activities ………………….………………..…39

Table 18 Shift Rotation Schedule …………………..…….…………..42

Table 19 Proposed Salaries and Benefits ………………………..….51

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List of Figures

Figure 1 Business Map …………………………………………………...24

Figure 2 Frontage of Building …………………………..……………………….25

Figure 3 Interior Design ……………………………………………………26

Figure 4 Organizational Chart …………………………………………41

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Feasibility Abstract

Title: “MANDARIN RESTAURANT”

Author: Wang Kun

Institution: Lyceum Northwestern University

Degree: Master in Business Administration

Date of defense: June 16, 2016

Adviser: Pedro F. Sison Jr., DBA, CPA

Abstract:

Mandarin Restaurant is a Chinese restaurant that will offer Chinese -style

foods. The food’s characteristic is nourishing, delicious, affordable and

convenient to all customers. Mandarin Restaurant will surely appeal Philippines’

preference and a good environment for relaxation and unwind. Mandarin

Restaurant will be open on January 2017 for the owners to prepare fully. The
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restaurant will offer breakfast, lunch, and dinner. The business will be located at

A.B Fernandez Avenue, Dagupan City. The business will be a partnership,

compose of two partners, the researcher and a Filipino partner for them to help

each other in managing the business and to minimize paying taxes. People now

are fund of exploring different kinds of foods with in their own preferences. The

reason why the researcher got interested to this study. There are existing

Mandarin Restaurant in the Philippines which can be found in Mandaue and Cebu

City.

Mandarin Restaurant is the name of the business. With the name alone,

people will be able to determine the kind of restaurant that the researcher will be

putting-up in the future. The concept of the researcher is to cater the needs of

the foreigners in terms of food taste. In the Philippines, there are many

foreigners already studying its cheaper tuition fees and Filipinos are not left

behind in terms of Education. Mandarin Restaurant will help these students for

their food needs especially the Chinese. Filipinos also adapted the Chinese foods

already and they really loved to eat Chinese Foods, and Mandarin Restaurant is

the best place for them.