UNIVERSITY OF THE IMMACULATE CONCEPTION

Bonifacio St., Davao City

BUSINESS PLAN

CANTEENVERSE

In partial fulfillment for the Degree of

Master in Business Administration

Prepared by:

Kathleen Mae J. Abenoja

OCTOBER 2019
 I. Table of Contents

Page

I. Table of Contents i

II. Executive Summary 1

III. General Company Description 3

Vision 3

Mission 3

Goal 4

Objectives 4

Business Philosophy 4

Legal Form of Ownership 5

IV. Products and Services 6

Description of Products/Services 6

Competitive Advantages 6

Pricing Structure 7

V. Marketing Plan 8

Market Research 8

Economics (Industry) 11

Product/Features and Benefits 12

Customers 13

Competition 13

Strategy 16

Pricing 16

i
 Sales Forecast 17

VI. Operational Plan 19

Production 19

Location 20

Legal Environment 21

Personnel 21

Inventory 22

Suppliers 22

VII. Management and Organization 23

Organizational Structure 23

Professional and Advisory Support 23

VIII. Financial Plan 25

Start-up Costs and Capitalization 25

Important Financial Assumptions 26

Projected Three – year Statement of Financial Position 27

Projected Three – year Income Statement 28

Projected Three – year Statement of Changes in Equity 29

Projected Three – year Statement of Cash Flows 30

Notes to Financial Statements 31

IX. Appendices 40

X. List of Tables 53

XI. List of Figures 54

ii
 II. Executive Summary

Canteenverse is not just a simple business inside the school premises, but

a committed partner of the school, students, parents and stakeholders in upholding

and helping the students’ and the community’s growth. The existence of the

business is also to answer the current problems inside the school: (1) lack of food

supply; and as a result, (2) students patronizes the vendors outside of the school

that would often time lead to the increase of cutting classes incidents.

A survey was conducted at Inawayan National High School, Inawayan, Sta.

Cruz Davao del Sur with 100 respondents. Survey result showed 96% of the

respondents positively regard the acceptability of the second school canteen.

Additionally, respondents were agreeable of the photocopying services. In the

survey conducted, the respondents were asked to rate the most important attribute

of a school canteen; good customer service is the top of the list with about 76% of

the survey results, saying it is the most important feature the canteen should have.

Comparing to the existing canteen inside the campus, Canteenverse offers

3 food varieties: snacks, meals, and drinks. Another advantage is the facility that

the new canteen has to offer. The new canteen has tables and chairs wherein the

customers can stay while enjoying their meal. Moreover, a systematic order taking

process will be observed.

The capital of the concessionaire business venture will be from Ms. Lucy B.

Jumanguin, proprietor of the business, with a capital investment of ₱ 250,000.00.

She will be the Manager of the operation of the School Canteen.

1
 The survey conducted showed promising growth in the business venture.

Projected Income for the next three years of operation will be ₱ 193,249.00,

₱309,286.00 and ₱370,862.00 respectively. This is with a conservative

assumption of 8% growth of sales every year.

Canteenverse is a promising venture since the school population is continually

growing over the years. With this, higher probability of the sales in the canteen will

also expand and succeed over the years.

2
 III. General Company Description

Canteenverse is a concessionaire offering catering services to the students

of the school. It will be the second school canteen inside the campus. The location

of the business will be at Inawayan National High School, Brgy Inawayan, Sta.

Cruz, Davao del Sur; the canteen will be specifically situated at the Senior High

School Department area.

The facility intended for the use of the school canteen will be provided by

the joint project of the school administration and the Parent Teachers’ Association.

The operation of the business will be ran by a third party concessionaire – a sole

proprietor, Ms. Lucy B. Jumanguin.

The acceptability of the second school canteen in the premises is high for

there is a high demand in the market basing upon the profitability of the school first

existing school canteen.

Vision:

Canteenverse envisions of becoming the most preferred food and service

provider to the students which also help produce healthy graduates in Davao

Region.

Mission:

Canteenverse commits itself to provide a safe, clean and most of all

healthy food and beverages to our valued customers: the students, DepEd
community and the stakeholders.

3
Goals

The business aims to:

1. Increase a long-term and sustainable profit .

2. Expand the operations to other schools and become partners for

education.

Objectives:

Canteenverse has the following objectives.

 Add and diversify the food menu every week that are attainable and
within the customer’s taste and budget, to increase sales and
customers.

 Increase promotional activities to attract and gain more loyal

customers.

 Expand operations to other public schools in Sta. Cruz District within

the fourth year of operations.

 Cater canteen services to private schools within Sta. Cruz to Digos

City, Davao del Sur within 5 years.

Business Philosophy

Canteenverse as a profitable business adheres to the following

philosophy:

1. Quality – quality food and beverages also means nutritious; it is the

topmost priority of the business.

2. Hygiene/ Cleanliness – Cleanliness in all aspect in delivering quality and

good food to the valued customers are the priority at all times.

4
 3. Timeliness & Orderliness– the speed of serving the customers and a

systematic way of services shall be implemented, to maximize time and

the number of customers served.

4. Eco-friendly- Canteenverse helps in the environmental campaign of no

to single use of plastics.

5. Honesty – DepEd community advocates project WATCH (We Advocate

Time Consciousness and Honesty), being an extended family of DepEd,
Canteenverse, advocates to this project.

Legal form of ownership:

The Canteenverse is a concession agreement between the proprietor, Ms.

Lucy B. Jumanguin and the school. The facility shall be owned by the school,

Inawayan National High School. As stated in DepEd Order No. 17, s. 2013, Policy

Guidelines on the Operations of the School Canteen, the school shall oversee the

operations of the school canteen and should generate income for the specified

appropriations for the school. In this connection a sales commission of five percent

(5%) shall be given to the school monthly.

5
 IV. Products and Services

Description of Products/Services

School Canteen is a necessary service that should be available inside the

school premises. There will be three kinds of food products Canteenverse will be

offering: snacks, meals and beverages. The canteen will offer variety of food and

beverage products that are much affordable and anchored to the consumer’s

budget. Moreover these products are healthy as it is approved and checked by the

school nurse.

Being the second school canteen inside the school, it will answer to the

needs of the students for sufficient food while inside the campus. An enjoyable

place to enjoy food, while studying is what this new canteen has to offer. It has

chairs and tables where the customers can stay while eating.

Canteenverse will also address the students’ needs of photocopying

services. It has photocopying services available anytime of the day and is ready to

accommodate the students.

Competitive Advantages

Canteenverse’s competitive advantage is its facility and location among

others. It is located at the back part of the school campus wherein the Senior High

School Department is located and 20% of the Junior High School classrooms are

situated in the same area. The facility itself of the school canteen is larger

6
compared to the existing canteen and has tables and chairs where the students

can stay while enjoying their food.

The disadvantage of the canteen however, is that it has only few people

working. As a starting business, it can only operate with few people in it because

of lesser funds. As a result, there will be longer queues in the line especially during

peak hours.

In the long run, these disadvantage will be addressed as the business will

grow hence profit will increase enough to hire more people to give more efficient

and fast services to the customers.

Pricing Structure

The prices that will be set for the services and products to be offered in

Canteenverse are competitive pricing: prices are the same with the level of the

prices of the existing school canteen and identified competitors outside the school.

The prices being set are reasonable and affordable most especially to our major

target market: students.

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 V. Marketing Plan

Market Research

Inawayan National High School had been in existence at Inawayan,

Sta. Cruz, Davao del Sur since 1964. From being a barrio high school to a

nationally instituted public school, the school had grown bigger and is continuously

increasing for the past 55 years; especially from the recent years on the onset of

the K-12 curriculum since 2016.

A survey of 100 respondents has been conducted inside the school

premises about the marketability and acceptability of a second school canteen.

Figure 2 shows that the respondents were grouped by grade level in the junior high

department, the school personnel and the senior high department. The remaining

15% of the survey form was given to the employees inside the school.

In the survey, the students were asked how much is their weekly

allowances. Majority of the students has a weekly allowance of below ₱ 200.00 as

survey result shown below.

Figure 1

Student's Weekly Allowance

MORE THAN P1,000 0%
P 801 – PHP 1,000 0%
P 601 – PHP 800 2%
P 401 – PHP 600 2%
P 201 – PHP 400 24%
BELOW P 200 57%
0% 10% 20% 30% 40% 50% 60%

8
 Figure 2

0.3

0.25

0.2

0.15

0.1

0.05

0
Grade 7 Grade 8 Grade 9 Grade 10 Faculty & Senior High
Staff School

As shown above, there is highest percentage as to the number of its

respondents for the Senior High School students because the canteen facility that

the school will put up is to cater all the Senior High School students and the few

grade levels that are located at the back part of the school campus.

Basing on the enrolment data and the computation of its attrition rate, the

target market will be approximately 548 students from the Grades 10 -12. (See

Appendix A, Figure of Enrolment Data and Computation of Attrition Rate)

In the survey conducted, there are 83% of the respondents who said that

they buy at the school canteen and the rest do not buy at the school canteen. Most

of the students who opted to buy and avail the services of the canteen have the

reason that the canteen is too crowded (See Appendix B Figure 6 ).

From this point, the respondents were asked if they would want to have a

new canteen: 96% responded, Yes and the rest are No (See Appendix B Figure

7). During the conduct of the survey, some items proposed to be provided by the

9
school canteen are mostly the same items that the other canteen has especially to

the snack items. However, it is divided into three groups: snacks, beverages and

meals.

In addition, the respondents expressed their interest of having an additional

service from the school canteen – photocopying services. Survey results show that

among the one hundred respondents, 89% percent of them agreed to avail the

said service while the rest of the respondents which compromises the 11% of the

remaining population (Appendix B, Figure 8). The tables below show the number

of times they will avail of the service and the number of copies they usually asks

to reproduce.

(Table 1)

Frequency of Availing the

Service
Everyday 42%
Three times a week 12%
Twice a week 19%
Once a week 14%
Twice a month 1%
Once a month 12%
.

(Table 2)

Number of Copies they usually Avail

1-5 6-10 11-15 16-20 21-25 over 25

55% 25% 4% 0% 1% 12%

Moreover, the respondents were asked to rate the importance of specific

attributes expected in a school canteen. The table below shows that among the

attributes they want to see in the School Canteen is the good customer service

10
experience. It is also notable that the last among these attributes is the variety of

the menu. Although it comes off as the last among the features presented, it will

still be put into the priority together with the others to earn customer loyalty in the

long run of the business.

(Table 3)

Less Highly
Attributes Important Important Important
Affordability 3% 21% 76%
Availability 3% 27% 70%
Cleanliness 1% 19% 80%
Good Customer Service 2% 13% 85%
Orderliness in Order
2% 23% 72%
Taking
Variety of the Menu
5% 32% 63%
Offered

With the increasing demand for nutritious food within the school vicinity,

paired with the increasing population of the students, it is expected that there is a

high marketability and acceptability rate for the Canteenverse.

Economics/Industry Analysis

Department of Education is strongly committed to support students’ health

and well-being through its curriculum in schools and range initiatives that offer

opportunities for physically fit individuals who love eating healthy food (Galabo,

2019). The canteen should also provide the students varied choices of foods and

dishes that will help enhance their skills and knowledge (DepEd Order No. 8, series

of 2007).

11
 School canteen services are one of the most important services the school

can offer. DepEd Order No. 17, s. 2013, cited that school reaching more than 1,000

in population, warrants the school to have another school canteen. This is to

address the objective of providing food and beverages in the school community,

and its stakeholders.

Product

The second school canteen of Inawayan National High School will address

two problems of the school: insufficient quantity of food for the students during

recess and lunch time and the occurrence of cutting classes. Students will no

longer go over the fence to buy their food, and get the chance of committing cutting

classes.

The canteen will offer variety of products that would serve their snacks,

meals and drinks any time of the day. The products are served at a very affordable

price: for snack products it will only range from ₱ 5.00 – ₱ 15.00: meals will be

from ₱ 15.00 – Php 25.00; and for the drinks, from ₱ 1.00 - ₱ 12.00.

As part of its mission to provide and create healthy products to the

clienteles, Canteenverse will serve products that are locally produced in the

community such as varieties of fresh juices; from the traditional young coconut

(buko), mango, calamansi, cucumber and all other available products that will

surely entice the customers to try. Snack items such as Malunggay Pancakes,

vegetable stuffed empanada, Sweet Potato Cues, and many others will be served

12
as well. These innovative products will be introduced in our stores as substitute

products for some of the items proposed during the survey.

Aside from its product offerings an additional feature can be used to the

canteen advantage. The school canteen that would be constructed by the school

administration in partnership with the Parents Teachers Association will have a

mess hall; hence, it will be an additional feature to our school canteen. Other

features of the school canteen will be the availability of the photocopying services.

Chairs and tables are also installed inside the facility for convenience in taking their

meals, as well as enough space for the customers. The facility layout will be a

major a factor in the orderliness of the order taking process which adds to the

feature of the new school canteen (see Appendix B, Figure 15).

Customers

Canteenverse’s target customers are the students and faculty of the school.

Mostly, the target market is composed of the students from the Senior High School

Department and Junior High School who are located at the back part of the school

campus.

Competition

The need to have an additional school canteen inside the school campus is

high. Moreover, the school canteen to be put up in the premises should be in

accordance to the guidelines laid by the Department. Hence the marketability and

success of this venture is high.

13
 There are three (3) direct competitors who are within and outside the school

campus: the first school canteen, one consignor that was allowed to set up their

merchandise in a small table, and one from the outside within the 50 meter range

from the school. These competitors have a high profitability because majority of

the school population are their customers, as long as their supplies last. Usually

the products, combined, that they sell do not serve even half of the school’s total

population. There are household sari-sari stores who cater students which were

not able to buy at the school canteen, however, they are not in accordance with

DepEd policies and guidelines.

For our photocopying services there’s only one direct competitor situated

outside the campus, which makes more advantageous on the school canteen’s

side, who’s already inside the campus.

Competitive Analysis

Table 4

INHS School Importance to

FACTOR Me Strength Weakness
Canteen 1 Customer

Offers 3 Offers only

Categories: one major
Products √ 1
Snacks, Meals, category:
Drinks Snack Items
Price is the same
Price is at low
Price with the √ 1
cost.
competitor
Offers quality
and freshly Low quality
cooked/prepared due to
Quality √ 1
product. inventory
Inventory control turnover
is tight.
Monopolistic
Second in Choice
since it’s the
since it is located
Selection √ only school 3
at the back part
canteen inside
of the school
the campus.

14
 INHS School Importance to
FACTOR Me Strength Weakness
Canteen 1 Customer

Has proper order

No order
taking process
taking process
Service and tables and √ 1
and no tables
chairs to cater
and chairs
customers.

Reliability New entrant √ Fairly Reliable 2

As of 2017,
Stability New entrant √ average 3
stability
New entrant;
Expertise with good √ Equally expert 2
cooking skills
With good
reputation and
Company Good
ample √ 3
Reputation reputation
connections to
retailers
Strategic. In the middle
Proximity of
Near to the √ of the school 1
Location
target customers campus
Clientele
Word-of-mouth; based;
Advertising promotions and √ ongoing 5
other bundles. marketing to
clients
Freshly made,
Freshly made,
Product prepared and
prepared and √ 1
Image inadequate
enough supply
supply

The competitive edge Canteenverse is its variety of product offerings,

facility where the store will be located, and the additional services the canteen

offers.

The commitment of the business to become a helpful partner of the school

strengthens as it puts value in helping the environmental policies that the school

authorities are starting to implement. The usage of plastics especially the single

use plastics will never be used in the operations of the school canteen. This is also

an impactful competitive advantage and good branding of the business.

15
Strategy

Canteenverse will have the best and most practical strategy: through low

cost pricing. Customers of the canteen will automatically patronize the canteen

especially the students who were not able to take their recesses during their

period. Word of mouth is the best advertising strategy that the canteen will be

using.

For promotional budget, there is no need for budgeting too much especially

if it’s for the food to be served in the canteen. As part of Canteenverse’s advocacy

in being helpful to the environment, discounts shall be given to students who will

bring their own tumbler/glass for their drinks. And for the other services offered by

the canteen such as photocopying services, discounts will be given to the

students/teachers who will photocopy more than 20 copies per page.

Pricing

As mentioned, the prices of the products are at its competitive price. The

table below is the suggested list of food items and the corresponding suggested

price from the survey conducted (see Appendix B – Figures 11,12 &13):

(Table 5)

Category Food Item Price Willing

To Pay
Banana Cue 5.00
Bread 5.00
SNACKS Sandwich 8.00
Siopao 12.00
Pancake 5.00
Biscuits 7.00
Waffles 10.00

16
 Kakanin 10.00
Egg 8.00
Noodles (Pancit,
Bihon) 10.00
Pastil (Rice Combo) 10.00
Fish 20.00
MEALS Vegetable 10.00
Pork 25.00
Chicken 25.00
Beef 25.00
Plain Rice 10.00
Iced Water 1.00
Buko Juice 5.00
DRINKS
Sago’t Gulaman 5.00
Calamansi Juice 5.00
Bottled Water 12.00

Considering the outside competitors of the school canteen, it is highly

probable that the target customers will still patronize them. This is due to the fact

that the merchandise offered outside the school premises are not regulated by the

DepEd Order; they have food/beverages that the school canteen could not offer

such as junk foods, flavored drinks and the likes. These items are usually the

preferred product of the students.

However, Canteenverse will commit to its goals as to help the school in

providing a safe and healthy food and environment for the students, DepEd

employees and stakeholders. The management will offer goods and services that

would be budget and taste friendly to the students without violating the policies

and guidelines provided by the government.

Moreover given the results from the survey conducted, there is essentially

positive result as to the feasibility of the proposed second school canteen.

17
Sales Forecast:

Operation of the School Canteen starts at the beginning of the school year.

Hence, it is notable that during the first year of operation it has lower sales than

the succeeding years. The items presented in the sales forecast are categorized

by four: Snack Items, Meal Items, Drink Items and Photocopying Services. Unit

price for each categories are the average prices of the items presented on Table

5, prices that the customers are willing to pay.

On the succeeding years, it is also assumed that there is an eight percent

(8%) increase of its sales each year. (See Notes to the Financial Statement 1 –

Detailed Computation of Sales Forecast.)

Table 6. 3 –Year Sales Forecast

PRODUCTS & YEAR 1 YEAR 2 YEAR 3

SERVICES UNIT UNIT UNIT
QTY PRICE AMOUNT QTY PRICE AMOUNT QTY PRICE AMOUNT

SNACKS 61,195 8.00 ₱ 489,560 100,457 8.00 ₱ 803,658 108,494 8.00 ₱ 867,951

MEALS 9,179 18.00 165,227 15,069 18.00 271,235 16,274 18.00 292,933

BEVERAGES/DRINKS 61,195 6.00 367,170 100,457 6.00 602,744 108,494 6.00 650,963
PHOTOCOPYING
SERIVICES 41,003 1.00 41,003 73,072 1.00 73,072 78,917 1.00 78,917
TOTAL ANNUAL
SALES ₱ 1,062,960 ₱ 1,750,708 ₱ 1,890,765

18
 VI. Operational Plan

Canteenverse provides not only nutritious foods and beverages to its

clienteles but also an avenue for the students to have comfort while enjoying the

food they bought. The operations of the school canteen will be during school days:

Mondays – Fridays starting from 7:00 am – 5:00 pm.

Production Flow

Most of the items in the school canteen are served hot and fresh.

Preparation and cooking of the food and drinks will be at the school canteen facility

itself. The following are the necessary activities in the daily operations of the

business:

1. Purchasing of the ingredients and other raw materials will be at Toril,

Davao City.

2. Preparation and cooking will be done inside the kitchen area of the school

canteen.

3. Food will be displayed in the food racks; fresh, hot, and ready to be

served.

Food planning happens a month before its implementation and there would

be weekly changes of the menu. This is to keep up with the variety of the food to

be served.

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Service Flow

The influx of the customers will start during recess time, from 9:40

am – 9:55 am and during lunch time, 12:00pm – 1:00 pm. To regulate the flow of

the customers, the following steps shall be followed to have a proper order taking

procedure:

Figure 3

•Fall in Line at the start of the queue.

•You may get a food tray if you have many orders to place.
1

•Ask the sales attendant for the food of your liking.

•Proceed to the beverage counter and ask the assigned attendant for your orders.
2

•After your order has been served, pay your order at the cash counter.
3

• You may proceed to the tables and chairs provided for, and if you opt to stay inside the school canteen
please put back the food trays to its assigned area near the counter.
4

• We are disciplined and well mannered customers, we practice CLAYGO. Please put your empty dishes,
trays and utensils to the designated area and leave the canteen clean. Thank you.
5

Location

The school canteen will be located on the back part inside the school

premises, specifically at the Senior High School Department area. It is at Inawayan

National High School, Inawayan, Sta. Cruz, Davao del Sur. The mess hall is

strategically placed at the said area to care for the higher grade levels situated at

the back portion of the school campus. (See Appendix B, Figure 14 - School

Location Map.)

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 In having this second school canteen, the students can take their recesses

without worrying that they might run out of food.

Legal Environment

The School Canteen facility will be owned by the school. However the

operations of the school canteen will be operated by a proprietor, Ms. Lucy B.

Jumanguin. The proprietor and the school administrators represented by the

school principal and school nurse will have a Lessee- Lessor Contract that would

bind the business venture. Moreover, the proprietor will get business permits from

different concerned government agencies:

 Barangay’s & Mayor’s Business Permits;

 Bureau of Internal Revenue Certificate of Registration and Safety

Inspection;

 Department of Trade and Industry (DTI) ;

 City Health Office and other government offices that may, somehow

need to operate the business.

Personnel

The business will employ four regular efficient employees employed in the

business. Employees will be paid on minimum salary bases and government

mandatory benefits will be provided. They will be paid every 15 th and 30th day of

the month.

21
Inventory

There will be only a few inventories to be kept; mostly are the kitchen

condiments and dry goods that are not perishable. These are biscuits, raw

materials for packing, cooking and other related materials that are usually

consumed within a week time. For perishable goods, there will always be

marketing as the need arises. In this connection, the inventory control applicable

that fits for the type of business like the school canteen, is Just In Time (JIT)

inventory.

Its purpose is to minimize wastage. Eighty (80%) to ninety (90%) percent

of the inventory maintained are perishable and are susceptible to spoilage.

Suppliers

The supplies needed in the store will be from the following suppliers and

places:

Name/Place of Supplier Address Products

Rio A. Castaritas Astorga, Sta. Cruz, Kakanin, Waffles &

Davao del Sur Siopap

Gaisano Mall of Toril Toril, Davao City Condiments, Non-

perishable Goods, Other
Supplies
Toril Public Market Toril, Davao City Perishable Items and
other canteen supplies

22
 VII. Management and Organization

Canteenverse is a concessionaire business owned by Ms. Lucy B.

Jumanguin, RSW. She will run the business operations and will be hands on to it

as she will be managing the business full time.

With only a minimal time of experience in the operations of a school

canteen, it would be an identifiable gap. Hence, the proprietor will be guided in the

business industry through interviews and queries from business owners with the

same type of businesses.

Organizational Structure

Figure 4

(Proprietor/Manager)

Sales Attendant Sales Attendant

Cook
1 2

Professional and Advisory support

The following are the key professionals that will be helpful in the business

venture, especially in the operations:

 Ms. Marcela A. Sacay Principal Inawayan NHS

23
  Ms. Marietta L. Parcasio, RN School Nurse Inawayan NHS

 Ms. Judy Vane Q. Laran School Canteen Teacher Inawayan NHS

The names mentioned above are more likely the monitoring team

representing DepEd and the school as to the canteen operations are still within the

policies set by the Department Order. The School Canteen Teacher also serves as

the bookkeeper of the school canteen as part of his/her ancillary functions.

24
 VIII. Financial Plan

Canteenverse financial plan are all based on the projections for the next

three-years.

A. Start-up Costs and Capitalization

Pre-Operating Expenses Total

Office Supplies ₱ 5,000.00
Toner (Photocopier) 5,000.00
LPG 2,000.00
Eco-bags 3,000.00
DTI Registration (P215-P515) 1,000.00
Sanitary Permit (P200 ave) 500.00
Fire Safety Inspection Clearance (P250 ave) 500.00
Barangay Clearance (P300 max) 500.00
Mayor's Permit (P7000 ave depending on
5,000.00
area)
Printing of Cash Invoice 3,000.00
BIR Registration (P530-P7000 ave) 5,000.00
Space Rental 5,000.00
Light 3,500.00 ₱ 39,000.00
Capital Expenditures
Store Improvements (Labor & Materials) 40,000.00
Tables & Chairs (Addition) 5,000.00
Wall Fans 3,000.00
Photocopier Machine 45,000.00
Two Burner Gas Stove 7,000.00
Kitchen Utensils & Food Containers 10,000.00
Kitchen Equipment 10,000.00
Refrigirator 21,000.00 141,000.00
Working Capital
Snack Products 20,000.00
Meal Products 20,000.00
Drink Products 20,000.00
10,000.00
Contingency Fund 70,000.00
TOTAL COST ₱ 250,000.00

Source of Financing

Owner's Equity ₱ 250,000.00

25
B. Important Financial Assumptions

1. The operations of the business on the first year will be on the 6th month.

2. An 8% increase in sales every year is assumed.

3. Rent Expense on the 4th and 5th month are of the same payment

arrangement of the first school canteen which compromises 3,000.00 and

2,000 respectively. This is due to the fact that it is towards the end of

school year.

4. SSS, PHIC and HDMF is based on the standards set by the agency.

5. No taxes for the income of employees as they earn less than P

250,000.00 annually.

26
 Projected 3 –Year Statement Financial Position

CANTEENVERSE
Statement of 3-Year Projected Financial Position

Year 1 Year 2 Year 3

Assets

Current Assets
Cash in bank P 296,549 P 630,747 P 1,027,778
Petty Cash Fund 39,040 29,740 4,828
Prepaid Rent 60,000 60,000 60,000
Total Current Assets P 395,589 P 720,487 P 1,092,606

Non Current Assets

Equipment P 101,000 P 101,000 P 101,000
Less:
Accumulated Dep. 3 9,300 18,600 18,600
Total Non Current Assets (net
of depreciation) 91,700 82,400 82,400

TOTAL Assets P 487,289 P 802,887 P 1,175,006

Liabilities and Equity

Current Liabilities
Taxes payable P 0 P 6,312 P 7,569
SSS,PHIC, HDMF Payable 4 44,040 44,040 44,040
Total Current Liabilities P 44,040 P 50,352 P 51,609

Total Liabilities P 44,040 P 50,352 P 51,609

Owners' Equity
Invested capital P 250,000 P 443,249 P 752,535
Owner's Earnings 193,249 309,286 370,862
Total Owners' Equity 443,249 752,535 1,123,397

Total Liabilities & Equity P 487,289 P 802,887 P 1,175,006

27
 Projected 3 –Year Comprehensive Income

CANTEENVERSE
Statement of Projected 3-Year Comprehensive Income

YEAR 1 YEAR 2 YEAR 3

Sales 1 P 1,062,960 P 1,750,708 P 1,890,765

Cost/ Goods Sold (COGS) 2 542,139 868,047 937,491
Gross Profit P 520,820 P 882,661 P 953,274

Operating Expenses
Salary (Office & Overhead) 5 P 234,000 P 405,600 P 405,600
Repairs/ Maintenance 6 0 5,000 5,250
Supplies (office and operating) 8 3,500 6,000 6,000
Taxes, Permits, & Licenses 10 5,730 8,730 12,730
Rent & Related Costs 7 35,000 55,000 55,000
Utilities 9 14,000 24,000 24,000
Depreciation 3 9,300 18,600 18,600
Commission (5%) 11 26,041 44,133 47,664
Total Expenses P 327,571 P 567,063 P 574,844

Net Profit Before Taxes P 193,249 P 315,598 P 378,431

Income Taxes (Sole
Proprietor) 6,312 7,569
Net Operating Income P 193,249 P 309,286 P 370,862

28
Projected 3 –Year Statement Changes in Owner’s Equity

CANTEENVERSE
Statement of Changes in Owner's Equity
YEAR 1

Lucy B. Jumanguin Total

Capital, January 1, 2020 P 250,000 P 250,000

Additional Investment - -

Share on Profit (Loss) P 193,249 P 193,249

Total P 443,249 P 443,249

Drawings - -

Capital, December 31 P 443,249 P 443,249

CANTEENVERSE
Statement of Changes in Owner's Equity
YEAR 2

Lucy B. Jumanguin Total

Capital, January 1,2021 P 443,249 P 443,249

Additional Investment - -

Share on Profit (Loss) P 309,286 P 309,286

Total P 752,535 P 752,535

Drawings - -

Capital, December 31 P 752,535 P 752,535

CANTEENVERSE
Statement of Changes in Owner's Equity
YEAR 3

Lucy B. Jumanguin Total

Capital, January 1,2022 P 752,535 P 752,535

Additional Investment - -

Share on Profit (Loss) P 370,862 P 370,862

Total P 1,123,397 P 1,123,397

Drawings - -

Capital, December 31 P 1,123,397 P 1,123,397

29
 Projected 3 –Year Statement of Cash Flows

CANTEENVERSE
Statement of Cash Flows

Year 1 Year 2 Year 3

Cash Flows from Operating Activities:
Net Income (Loss) 193,249 309,286 370,862
Depreciation Expense 9,300 18,600 18,600
Increase (Decrease) in SSS, HDMF,
and PHIC Payable
- - -
Increase (Decrease) in Income Tax
Payable
0 6,312 7,569

(Increase) Decrease Inventories

Net cash provided by operating activities 202,549 334,198 397,031

Cash Flows from Investing Activities:

Purchase of Equipment -101,000 0 0
Leasehold Improvements -40,000 0 0
Purchase of Supplies -15,000 0 0
0 0 0
Net cash provided by investing activities -156,000 0 0

Cash Flows from Financing Activities:

Capital 250,000 0 0
Net cash provided by financing activities 250,000 0 0

Net Increase (Decrease) in Cash during the year 296,549 334,198 397,031
Add: Cash at the beginning of the year 0 296,549 630,747
CASH AT THE END OF THE YEAR 296,549 630,747 1,027,778

30
Notes to the Financial Statements

Note 1 – Computation of Sales

31
Note 2 – Computation of Cost of Goods Sold

32
33
Note 3 – SCHEDULE OF DEPRECIATION OF ASSETS

34
Note 4 – Schedule of Salary, SSS, PHIC, HDMF

35
Note 5 – SALARY SCHEDULE

36
Note 6 – Schedule of Repairs and Maintenance

SCHEDULE OF REPAIRS AND MAINTENANCE

YEAR 1 YEAR 2 YEAR 3
January
Repairs and Maintenance Expenses are
February
scheduled during May as it is in time during
March the yearly Brigada Eskwela Activity
April
May 5,000.00 5,250.00
June
July
August
September
October
November
December

37
Note 7 – Schedule of Rent Expense

SCHEDULE OF RENT EXPENSE

YEAR 1 YEAR 2 YEAR 3
January 5,000.00 5,000.00
February 5,000.00 5,000.00
March 5,000.00 5,000.00
April 3,000.00 3,000.00
May 2,000.00 2,000.00
June 5,000.00 5,000.00 5,000.00
July 5,000.00 5,000.00 5,000.00
August 5,000.00 5,000.00 5,000.00
September 5,000.00 5,000.00 5,000.00
October 5,000.00 5,000.00 5,000.00
November 5,000.00 5,000.00 5,000.00
December 5,000.00 5,000.00 5,000.00
TOTAL 35,000.00 55,000.00 55,000.00

Note 8 – Schedule of Supplies Expenses

SCHEDULE OF SUPPLIES EXPENSE

YEAR 1 YEAR 2 YEAR 3
January 500.00 500.00
February 500.00 500.00
March 500.00 500.00
April 500.00 500.00
May 500.00 500.00
June 500.00 500.00 500.00
July 500.00 500.00 500.00
August 500.00 500.00 500.00
September 500.00 500.00 500.00
October 500.00 500.00 500.00
November 500.00 500.00 500.00
December 500.00 500.00 500.00
TOTAL 3,500.00 6,000.00 6,000.00

38
Note 9 – Schedule of Utilities Expense

SCHEDULE OF UTILITIES EXPENSE

YEAR 1 YEAR 2 YEAR 3
January 2,000.00 2,000.00
February 2,000.00 2,000.00
March 2,000.00 2,000.00
April 2,000.00 2,000.00
May 2,000.00 2,000.00
June 2,000.00 2,000.00 2,000.00
July 2,000.00 2,000.00 2,000.00
August 2,000.00 2,000.00 2,000.00
September 2,000.00 2,000.00 2,000.00
October 2,000.00 2,000.00 2,000.00
November 2,000.00 2,000.00 2,000.00
December 2,000.00 2,000.00 2,000.00
TOTAL 14,000.00 24,000.00 24,000.00

Note 10 – Schedule of Taxes, Permits and Licenses

YEAR 1 YEAR 2 YEAR 3

BIR REGISTRATION FEE 500.00 500.00 500.00

Doc Stamps 30.00 30.00 30.00

Mayor's Permit 5,000.00 8,000.00 12,000.00

Health Card 200.00 200.00 200.00

TOTAL 5,730.00 8,730.00 12,730.00

Note 11 – Sales Commission

Sales Commission is at 5% for from the annual gross profit.

39
 IX. APPENDICES

APPENDIX A – ENROLMENT DATA, COMPUTATION OF TARGET MARKET

Computation of Attrition Rate:

SCHOOL 2020-
2017-2018 2018-2019 2019-2020
YEAR 2021
Ave
Attrition Attrition
Grade Level 7 (a) 8 (b) 9 (c ) Attrition
(a-b)/a (b-c)/b
Rate
317 310 2% 277 11% 6%
Ave
Grade Level 8 9 Attrition 10 Attrition Attrition
Rate
212 217 2% 182 16% 9%
Ave
Grade Level 9 10 Attrition 11 Attrition Attrition
Rate
178 181 2% 139 23% 12%

40
Computation of Target Market

Previous Total Ave. Attirtion Forecasted

Grade Level
Enrolment Rate Population

Grade 10 277 0.06 260

Grade 11 182 0.09 166
Grade 12 139 0.12 122
TOTAL: 548

APPENDIX B – Important Survey Results

Figure 5

Buyers of the School Canteen

Yes

17%

83% No

Figure 6

Reasons of not buying at the Canteen

Others
Services in the canteen are slow.
The canteen is crowded.
The items sold in the canteen are expensive
The canteen does not sell the food/drinks…
I have everything I need like food and…
0% 5% 10% 15% 20% 25%

41
 Figure 7

Accpetability of the 2nd School

Canteen

4% Yes

No

96%

Figure 8

Aceptability of the Photocopying

Services

11% Yes

No
89%

42
 Figure 9

Monthly Gross Income

MORE THAN PHP 30,000 1%

P 25,001– PHP 30,000 1%

P 20,001– PHP 25,000 8%

P 15,001– PHP 20,000 0%

P 10,001– PHP 15,000 0%

BELOW P 10,000 1%
0% 1% 2% 3% 4% 5% 6% 7% 8% 9%

Figure 10

Student's Weekly Allowance

MORE THAN P1,000 0%

P 801 – PHP 1,000 0%

P 601 – PHP 800 2%

P 401 – PHP 600 2%

P 201 – PHP 400 24%

BELOW P 200 57%

0% 10% 20% 30% 40% 50% 60%

Figure11

PRICE WILLING TO PAY

(SNACK ITEMS)
200% 1
100% 0.5
0% 0
Banana Bread Sanwhich Siopao Pancake Biscuits Waffles Kakanin Egg
Cue

5.00 7.00 8.00 9.00 10.00 11.00

12.00 13.00 14.00 15.00 17.00

43
 Figure 12

PRICE WILLING TO PAY ( Meal Items)

100%

80%

60%

40%

20%

0%
Noodles Pastil Fish Vegetable Pork Chicken Beef Plain Rice

10.00 12.00 15.00 20.00 25.00 30.00

Figure 13

PRICE WILLING TO PAY (Drink Items)

120%
100%
80%
60%
40%
20%
0%
Iced Water Buko Juice Sago't Gulaman Calamansi Juice Bottled Water

1.00 2.00 3.00 5.00 8.00 10.00 12.00 15.00 20.00

44
Appendix C – School Location Map & Floor Plan (Sketch)

Figure 14

Figure 15

45
Appendix D – Survey Questionnaire

UNIVERSITY OF THE IMMACULATE CONCEPTION

Bonifacio St., Davao City

GRADUATE SCHOOL PROGRAM

Survey Questionnaire

Dear respondents,

Praised be Jesus and Mary!

The researcher is gathering data through this survey for the marketability and acceptability
of a second School Canteen inside the premises of Inawayan National High School,
Inawayan, Sta. Cruz, Davao del Sur.

Your cooperation is highly appreciated in completing this survey. Rest assured that your
answers will be kept and held with utmost confidentiality.

Thank you and God Bless!

The Researcher
---------------------------------------------------------------------------------------------------------------------
----------------
Instructions: Please put a check mark (√) on the line corresponding to the answer that
best applies to
you.

Part I. Demographic Profile

Address:

Sex: ____ Male ___Female

Age Bracket: Grade Level (If student):

___11 yrs old – 15 yrs old ___Grade 7
___16 yrs old – 20 yrs old ___Grade
___21 yrs old – 25 yrs old ___Grade 9
___26 yrs old – 30 yrs old ___Grade 10
___above 30 years old ___Senior High Student

Present Occupation:
___Student ___ Employed __Self-employed

Monthly Gross Income (Employed/Self-Employed) Student’s Weekly Allowance:

__ below P 10,000 __ below P 200
__ P 10,001– Php 15,000 __ P 201 – Php 400
__ P 15,001– Php 20,000 __ P 401 – Php 600
__ P 20,001– Php 25,000 __ P 601 – Php 800

46
 __ P 25,001– Php 30,000 __ P 801 – Php 1,000
__ more than Php 30,000 __ more than P1,000

PART II. Acceptability and Marketability

Instructions: Please check (√) the box corresponding to the statement that best applies
to you.

1. Do you usually buy food and other items from the school canteen?
 Yes
 No

2. If no, what is your reason? (then proceed to #4)

(You may choose more than 1)
 I have everything I need like food and drinks.
 The canteen does not sell the food/drinks that I want.
 The items sold in the canteen are expensive
 The canteen is crowded.
 Services in the canteen are slow.
 Others, please specify ________________________________
.
3. If yes, how often do you buy from the school canteen?
 3 times a day
 Twice a day
 Once a day
 3 times a week
 Twice a week
 Others, please specify_________________________

4. If a new canteen will be open inside your school would you be willing to buy from
it?
 Yes
 No

5. What products would you want the canteen to offer? (You may choose as many
as you like.)

SNACKS MEALS
DRINKS
 Banana Cue  Noodles (Pancit, Bihon)  Iced
Water
 Bread  Pastil (Rice Combo)  Buko
Juice
 Sandwich  Fish  Sago’t

Gulaman
 Siopao  Vegetable  Bottled
Water

47
  Pancakes  Pork 
Calamansi
Juice
 Biscuits  Chicken  Others,
pls
specify
 Waffles  Beef
_________
 Kakanin  Plain Rice
 Egg
 Others, pls. specify
_______________

6. How much would you be willing to pay for the product offerings?

SNACKS:
Banana Cue P 5.00 P 7.00 P 8.00
Bread P 5.00 P 7.00 P 8.00
Sandwich P 8.00 P 10.00 P 12.00
Siopao P 12.00 P 15.00 P 17.00
Pancakes P 5.00 P 7.00 P 8.00
Biscuits P 7.00 P 8.00 P 10.00
Waffles P 10.00 P 13.00 P 15.00
Kakanin P 10.00 P 13.00 P 15.00
Egg P 8.00 P 9.00 P 10.00

MEALS
Noodles (Pancit, Bihon) P 10.00 P 12.00 P 15.00
Pastil (Rice Combo) P 10.00 P 12.00 P 15.00
Fish P 20.00 P 25.00 P 30.00
Vegetable P 10.00 P 12.00 P 15.00
Pork P 25.00 P 30.00 P 35.00
Chicken P 25.00 P 30.00 P 35.00
Beef P 25.00 P 30.00 P 35.00
Plain Rice P 10.00 P 12.00 P 15.00

DRINKS
Iced Water P 1.00 P 2.00 P 3.00
Buko Juice P 5.00 P 8.00 P10.00
Sago’t Gulaman P 5.00 P 8.00 P10.00
Calamansi Juice P 5.00 P 8.00 P10.00
Bottled Water P12.00 P15.00 P20.00

7. In addition to food and drinks, would you like the proposed canteen to offer
photocopying services?
 Yes
 No

48
 8. How often would you avail of the photocopying services?
 Everyday
 Three times a week
 Twice a week
 Once a week
 Twice a month
 Once a month

9. On the average, how many copies (both long & short) would you need to be
photocopied every time you avail of the photocopying services?
 1-5  16- 20
 6-10  21-25
 11-15  over 25

10. How much would you willing to pay per photocopy of documents (both long &
short)?
 Php 1.00
 Php 1.25
 Php 1.50
 Php 2.00

11. Please indicate the degree of importance of the following attributes of a School
Canteen.
Rate 1-3, 3 as the highest.
1 2 3

ATTRIBUTES (Less (Important) (Highly

Important) Important)

Affordability of the prices

Availability of other services

Cleanliness of the facility

Good customer service

Orderliness in the order taking

process

Variety of the menu offered

Please write your comments and suggestions to this proposed business feasible.
________________________________________________________________
________________________________________________________________
________________________________________________________________

49
APPENDIX E – CURRICULUM VITAE

KATHLEEN MAE J. ABENOJA

Calumpang, Inawayan, Sta. Cruz,
Davao del Sur, Philippines
Mobile Phone No: +639053991284
E-mail Address:kathabenoja23@gmail.com

Personal Information:

Nick Name : Kath

Age : 25 years old

Civil Status : Single

Date of Birth : January 23, 1994

Place of Birth : Davao City

Religious Affiliation : R. Catholic

Experience:

ADMINISTRATIVE ASSISTANT II March 14, 2017 – Present

Department of Education - Inawayan National High School

Inawayan, Sta. Cruz, Davao del Sur

ADMINISTRATIVE AIDE III March 25, 2015 –March 13, 2017

50
 Department of Education

- Inawayan National High School

Inawayan, Sta. Cruz, Davao del Sur

CUSTOMER SERVICE REPRESENTATIVE Sep. 22, 2014 – Jan. 4, 2015

Convergys Philippines, Inc.

JP Laurel Ave., Davao City

SK CHAIRPERSON December 1, 2010 – November 30, 2013

SangguniangKabataan Council, Barangay

Inawayan, Sta. Cruz, Davao del Sur

INTERN April 2, 2013 – May 21, 2013

Bureau of Internal Revenue Regional Office

Bolton Extension, Davao City

Educational Background:

Graduate UNIVERSITY OF THE IMMACULATE CONCEPTION

School: Master’s in Business Administration

Tertiary: ST. JOHN PAUL II COLLEGE OF DAVAO,

2016, BS in Secondary Education (Earning Units)

UNIVERSITY OF THE IMMACULATE CONCEPTION

51
 2014, BS in Accounting Technology

Secondary: ST. PETER’S COLLEGE OF TORIL, 2010

Elementary: ST. PETER’S COLLEGE OF TORIL, 2006

Skills:

o Can speak, read and write English and Filipino

o Is a computer literate (Microsoft Word, Power Point and Excel)

o Has a basic background of SAP Business 1 software

Highlights:

o Good sense of Leadership and Management ability;

o Adept to working effectively in a team;

o Reliable to complete given task independently.

Eligibilities:

Licensure Examination for Teachers (Secondary)

Civil Service Professional Exam

Civil Service Sub Professional Exam

National Certification III – Bookkeeping

Member of the Institute of Certified Bookkeepers –UK (CAT Level 1)

52
 X. LIST OF TABLES

Pages

Table 1. Frequency of Availing the Service 10

Table 2. Number of Copies They Usually Avail 10

Table 3. Important Attributes of a School Canteen 11

Table 4. Competitive Analysis 14

Table 5. Price per Product 16

Table 6. Three – year Sales Forecast 18

53
 XI. LIST OF FIGURES

Page

Figure 1. Students’ Weekly Allowance 8

Figure 2. Graph of the Distribution of Respondents 9

Figure 3. Service Flow 20

Figure 4. Organizational Chart 23

Figure 5. Buyers of the School Canteen 41

Figure 6. Reasons as to not buying in the Canteen 41

Figure 7. Acceptability of the Second School Canteen 42

Figure 8. Acceptability of the Photocopying Service 42

Figure 9. Monthly Income 43

Figure 10. Students’ Weekly Allowance 43

Figure 11. Prices Willing to Pay (Snack Items) 43

Figure 12. Prices Willing to Pay (Meal Items) 44

Figure 13. Prices Willing to Pay (Drink Items) 44

Figure 14. School Location Map 45

Figure 15. Facility Lay-out 45

54