Republic of the Philippines

EULOGIO “AMANG” RODRIGUEZ

INSTITUTE OF SCIENCE AND TECHNOLOGY

Nagtahan, Sampaloc Manila

FEASIBILITY STUDY

2015-2016

PANCAKE HOUSE

SUBMITTED BY:

Irvin A. Francisco

Joey Boy P. Deang

Mark Jade Reality Z. Pangilinan

Carlo Yves T. Lico

Lavrice Arcosa

SUBMITTED TO:

Theresa Madaggan
 Chapter 1

Introduction and Background of the Study

Background of the Study

All of the proponents’ share their ideal business that they want to put up, and the

most common thing that we wanted to do is that we wanted food to be the main focus of

our business.

We came up with this idea to promote healthy foods without sacrificing its flavors.

We focus on easy to prepare on-the-go food which will be sold in a stall. Initially our stall

will be located at Legarda Street in Sampaloc, Manila where college students from

Centro Escolar University, San Sebastian College, San Beda College and other nearby

schools.

Since most of the proponents are college students, all of us experience going to

school with an empty stomach because of cramming preparing for school without

having the opportunity to eat breakfast or even lunch.

Our main purpose is to promote healthy lifestyle for high school and college

students who need nutrients and energy for them to be energized throughout the day.

Our business will cater to:

 Students and health-conscious people like, the Pancake House aim to introduce to

the common Filipino palate, An American staple with the convenience of not having to

do-it-yourself at home. What sets Pancake House apart from other commercial pancake

stores, aside from its healthy?

Name of the Proposed Business

Pancake House

History of the Project

A pancake is a flat cake, often thin, and round, prepared from a starch-based

batter and cooked on a hot surface such as a griddle or frying pan. In Britain, pancakes

are often unleavened, andresmble a crepe. In North America, a raising agent is used

(typically baking powder). The North American pancake is similar to a Scotch pancake

or drop scone.

They may be served at any time with a variety of toppings or fillings including

jam, fruit, syrup, chocolate chips, or meat. In America, they are typically

considered to be a breakfast food. In Britain and the Commonwealth, they are associated

with Shrove Tuesday, commonly known as Pancake Day, when perishable ingredients had

to be used up before the fasting period of Lent began.

In the Philippines, Banana cream crepes are a popular breakfast and dessert made of

very thin pancakes originating from France. It’s a common street food that can be found all

over the Philippines.

Eating is considered as one of the most important part of our everyday living, without it we

can’t expect the life to exist. The food we eat serves as the single source of energy and nutrition

and through its consumption we can get a glimpse of one’s lifestyle.

Project Vision and Mission

VISION

To be the top leading Pancake business offering the finest selections of healthy pancake in the

Philippines and eventually the whole world.

MISSION

Pancake corner is devoted to promote a healthy lifestyle to every single Filipino by

serving them our unique batter mixtures of budget friendly and healthy pancakes.

Logo
Form of Organizations

Pancake House is to be put up by a partnership type of ownership. Equality of the

project will be put up to by equality from its ten (10) partners: profit and loses will be

divided equally among each other. There will be three general partners, who will

manage the business, while the others are to the limited partners which will also as

partners and as a regular employee of the business.

“A partnership is an organization where two or more persons and

themselves to contribute money, property or industry into a common fund with

the intention of dividing the profits among themselves.”

 The reason why partnership is being taken by the proponents to put up the

business.

• Partnership may be dissolved at any time upon the withdrawal of a partner

or upon the death of a partner.

• It can acquire, sell or dispose properties, incur obligations, and transact

business at its name.

• It can sue or be used.

• In general, manage by all the partners unless otherwise another person is

assigned by the partners to act at its managers.

Capitalization

The total capital that Pancake House required to start and support to operation is

three hundred million pesos (Php 300,000,000.00). Funds of equity will come from to its

partners which will be divided equally among each other.

 Chapter 2

MANAGEMENT ASPECTS

Introduction

This chapter tackles about the entire organizational arrangement of the business.

The management aspect suggests a clear and precise identification of duties and

responsibilities, flow of authority and manpower level requirement. This contains the

organizational chart and the qualifications of the people involved the formation of the
business organization, structure. It must be set up aimed at optimum effectiveness. To

attain this, management must be able to plan all activities, for the company to become

dynamic and competitive business over and done with human resource, financial

capability and new technologies. Form of Ownership The type of business ownership

will be a partnership; in which partners pool money, skills, and other resources, and

share profit and loss in accordance with the terms of the partnership agreement. In the

absence of such agreement, a partnership is assumed to exit where the participants in

an enterprise agree to share the associated risks and rewards proportionately.

Complementary skills and additional contacts of each pattern can lead to the

achievement of greater financial results together than would be possible apart. Mutual

support and motivation are needed for the business to last longer.

Types/ Nature of Business

Pancake as a one of the hospitality establishment known today has evolved

through centuries of social and political change.

Continuous consumption of widely spread of Pancake House in the country

compared to consumption of other hospitality establishment in our country. What makes

Pancake House so unique from the other hospitality establishment is that its continuous

existence due to the costumer/costumer’s needs and wants.

Pancake House is a food service type of industry which caters different types of

authentic dishes it is locate. The business will serve up varieties of food and beverages

that will satisfy the cravings of the tourists both local and foreign tourist.

Organizational Chart
Job Description

Job Title: manager

Name: Irvin A Francisco

Job Description Responsibilities:

 • Oversees daily production

• Work Schedules

• Assigning Employee Tasks

• Ensures product quality

• Keeps facility running, and clean

• His/her job includes planning, organizing, directing and controlling all the

employees of the organizations as well as its relationship to each other.

• Responsible in checking sales records

• Responsible in purchasing raw materials

Job Title: Supervisor

Name: Joey Deang

Job Description and Responsibilities:

 • Accomplishes manufacturing staff results by communicating job expectations;
planning, monitoring, and appraising job results; coaching, counseling, and
disciplining employees; initiating, coordinating, and enforcing systems, policies,
and procedures.

• Maintains staff by recruiting, selecting, orienting, and training employees;

developing personal growth opportunities.

• Maintains work flow by monitoring steps of the process; setting processing

variables; observing control points and equipment; monitoring personnel and
resources; studying methods; implementing cost reductions; developing reporting
procedures and systems; facilitating corrections to malfunctions within process
control points; initiating and fostering a spirit of cooperation within and between
departments.

• Completes production plan by scheduling and assigning personnel;

accomplishing work results; establishing priorities; monitoring progress; revising
schedules; resolving problems; reporting results of the processing flow on shift
production summaries.

• Maintains quality service by establishing and enforcing organization standards.

Job Title: CASHIER

Name: Lavrice Arcosa

Job Description and Responsibilities:

• Itemizes and totals purchases by recording prices, departments, taxable and
nontaxable items; operating a cash register.

• Enters price changes by referring to price sheets and special sale bulletins.

• Discounts purchases by redeeming coupons.

• Collects payments by accepting cash, check, or charge payments from

customers; making change for cash customers.

• Verifies credit acceptance by reviewing and recording driver's license number;

operating credit card authorization system.

• Balances cash drawer by counting cash at beginning and end of work shift.

Job Title: Chef

Name: Mark Jade Reality Z. Pangilinan

Job Description and Responsibilities:

• Direct the preparation, seasoning, and cooking of salads, soups, fish, meats,

vegetables, desserts, or other foods.

• Plan and price menu items, orders supplies, and keep records and accounts.

• Supervises and participate in cooking and baking and the preparation of foods.

Writes weekly schedules according to business and projected goals for labor

dollars or percentages.

• Uses labor dollars and menu costing programs to price labor and food cost

percentages. Must participate in checking of all purchased supplies for quality

and account for each delivered item.

 Job Title: Waiter

Name: Carlo Yves Lico,

Job Description and Responsibilities:

• Greets guests and presents them with the menu.

• Informs guests about the special items for the day and menu changes if any.

• Suggest food and beverages to the guest and also try to upsell.

• Take food and beverage orders from the guest on the order taking pads or on the
handheld Point of sale (POS) system.

• Obtaining revenues, issuing receipts, accepting payments, returning the change.

• Performing basic cleaning tasks as needed or directed by supervisor.

• Filling in for absent staff as needed

• Punch the order on the POS machine and make sure to enter the special
requirements made by the guest while ordering the food. Ex: No Garlic, less
spicy etc. Without egg etc.

• Communicate to the guest and provide assistance with their queries.

• Co - ordinate with the bus person, kitchen staff, bar staff to ensure smooth
operation and guest satisfaction.

• Server food and beverage to the guest as per the course of order.

• Observes guests and ensure their satisfaction with the food and service.

• Promptly respond to guest with any additional request.

• Maintaining proper dining experience, delivering items, fulfilling customer needs,

offering

• Desserts and drinks, removing courses, replenishing utensils, refilling glasses.

• Prepare mixed drinks for service to your customers table.

• Properly open and pour wine at the tableside.

• Adhere to grooming and appearance standards consistently.

• Understands and can communicate products and services available at the resort.

• Must have some familiarity with basic cooking skills.

• Assist bus persons with stocking and maintaining the restaurant par stock levels
and side station.

• Help other areas of the restaurant such as answering telephones and completing
financial transactions.

• Print closing report and drop the cash with the front office / accounts department.

• Tally the Credit Card settlements for the day with the batch closing report from
EDC machine.

• Close the shift on the POS terminal.

Organizational policies

Owning and operating a restaurant require small-business owners to implement

several policies their employees must follow to meet health and safety regulations. In

addition to legally required policies, you'll want to put additional employment policies in

place to ensure your staff members perform their jobs to your satisfaction to keep your

restaurant running smoothly.

Include basic policies that you must comply with by law. These include regulations

for pay, work hours, worker's compensation, discrimination and medical leave. Consult

with your attorney while drafting your employee handbook.

Hygiene and Dress

Personal hygiene and dress code policies are of particular importance in the

restaurant business. It's important to set strict policies related to your uniform standards

or dress code if you allow your employees to choose their own attire. Decide whether

you will set policies related to employee piercings and tattoos.

Food Safety

Some of the most important employment policies for your restaurant are policies

that relate to food safety and handling. Outline policies and training guides for your

employees with respect to cross-contamination, sanitizing methods for dishes and

utensils and guidelines on how long certain foods can be safely stored.
Other Considerations

Include policies related to schedules, breaks, payroll and benefits in your

employee handbook. Putting these policies in writing makes employees aware of how

their schedules might change and how often, when they are entitled to a break and

whether those breaks are paid or unpaid. Specifying payroll dates, times and methods

prevents unnecessary employee questions related to compensation. List the benefits

your employees will receive, even if you do not offer insurance policies.
 Chapter 3

MARKET ASPECT

INTRODUCTION

This chapter will help to know the marketing aspect of the business. . For the

business to prosper, it should be given time and effort. The proponent of this business

must have the desired creativity so as to be able to provide quality service to its

customers. The fulfillment of the needs and wants of its customers or target market

must be the key objective of the recommended business. In every project, feasibility

marketing aspect is well-thought-out the most important since it requires inconspicuous

analysis of the business total demand and supply. The Marketing is considered the

most important area. This is so because it describes market situations where the

product can be identified through the demand analysis.

DEMAND

A high demand for pancakes usually comes from high school and college student

students. "This fact revealed from the survey, there as EFG of the respondents are

aged 13-19. This result is also supported by the gathered data that 89% of them eats

pancake

SUPPLY
 It represents the number of producer selling similar or substitute products. Supply

is referred to as the competitors

DESCRIPTION OF THE PRESENT MARKET PRACTICES OF COMPETITORS IN

THE RESPECTED DOMESTIC MARKETS

A domestic market, also referred to as an internal market or domestic trading, is

the supply and demand of goods, services, and securities within a single country. In

domestic trading, a firm faces only one set of competitive, economic, and market issues

and essentially must deal with only one set of customers, although the company may

have several segments in a market. The term is also used to refer to the customers of a

single business who live in the country where the business operates.

Product Description

Malunggay Pancake

Classic pancake batter mixed with

malunggay leaves and served with butter

and pancake syrup

POTATO PANCAKE

Classic pancake batter mixed with potato

bits and served with butter and pancake

syrup
CARROT PANCAKE

Classic pancake batter mixed with carrot

bits and served with butter and pancake

syrup

OATS PANCAKE

Classic pancake batter mixed with oats

bits and served with butter and pancake

syrup
SQUASH PANCAKE

Classic pancake batter mixed with squash

bits and served with butter and pancake

syrup

CLASSIC PANCAKE

Pancake batter served with butter and

pancake syrup
MARKET STRATEGY

The STRATEGIC ANALYSIS is intended to give an extremely far reaching

strategic analysis of the Target Company and thereby explore the medium and long

terms problems and opportunities for the Target Company. This provides a vital input to

Corporate Planning and Development.

PRICING STRATEGY

Costing and Pricing

a.) Direct cost
Raw Materials per pancake
Ingredients and Packaging 14.15

b.) Product pricing @ 50% mark-up

Selling Price = [(cost of the item)] / (100 - mark up)] x 100
 = [(14.15)] / (100 – 50 mark up)] x 100
= (13.13 / 50) x 100 + 1.70
= 30.00

PRODUCT PRICE

Malunggay pancake P 30.00

Carrot pancake P 30.00

Potato pancake P 30.00

Oats pancake P 30.00

Squash pancake P 30.00

Classic pancake P 30.00

LOCATION OF BUSINESS
The Plant location shall be located at Legarda Street step away from METROPOLITAN

WATER SEWAGE SYSTEM. Beside the Bon Chon Chicken and in front of Jollibee.

PROMOTION/ADVERTISING
 To reach the target customer group, we use a mix of the following: radio,

billboards, flyers, social networking like Facebook, Twitter and Instagram, television and

in-store sampling. Expect to continue to increase media impressions as they strive to

build deeper relationships with our customers.

AVAILABILITY OF SUPPLY

CHAPTER 4
INTRODUCTION

This study discusses about the process of production and the activities of the

business. It states also the machineries and equipment used in production and other

aspect regarding bringing the raw material into finished products ready for trade. Plan

layout, size and structures are all presented for the purpose of identifying the business

operation. Also product specializations the product processes using the flow chart. The

list of machineries, equipment, furniture and fixtures & others tool are enumerated.

MANUFACTURING

• Sift the flour and salt into a large missing bowl with a sieve help high above the

bowl so the flour gets an airing

• Make a well in the center of the flour and break the eggs into it.

• Whisk the eggs making sure any bits of flour from around the edge of the bowl

are mixed in with the egg.

• Gradually add small quantities of the milk, still whisking

• Continue whisking until the batter is smooth, with consistency of thin cream.

• Melt the 50g/2oz of butter into the butter and whisk it in.

• Spoon 2 tbsp. of the melted butter into the batter and whisk it in.

• Let the pancake mix stand for at least 30 minutes before cooking.
• Pour any leftover butter into a dish. This will be used later to grease the frying

pan after each pancake has been made.

• Make sure the non-stick frying pan is really not before adding about 2 tbsp. of the

batter mixture.

• As soon as the batter hits the hot pan, tip the pan around from side to side to get

the base evenly coated with batter.

• Carefully lift the edge of the cooked pancake with a palette knife to see if its

tinged gold as it should be.

• Flip the pancake over with a pan slice or palette knife to cook the other side.

• Slide it out of the pan onto a plate.

• Stack the pancakes as you make them between sheets of greaseproof paper on

a plate.
FLOW CHART
Plan size and production schedules

The stall serves as the plant of the business. All the equipment’s used in

everyday production can be found there. The business will open 9:00 am every day.

Because that is the operating hour of the location of the business which is at Legarda

Street along Mendiola, Manila. Thus, the staff must be in the workplace at 8 am for food

preparation. The working schedule of the service crews consist of a morning shift and

night shift. Daytime schedules begin around 8 am and go through 5 pm including a one-

hour lunch. An evening shift runs from 1 pm to 9 pm.

Machineries, Equipment, Furniture and Fixtures & others tool
Plant Location
The Plant location shall be located at Legarda Street step away from METROPOLITAN

WATER SEWAGE SYSTEM. Beside the Bon Chon Chicken and in front of Jollibee.

Raw materials

• Wheat flour

• Eggs

• Milk

• Butter

• Baking soda

• Sugar

• Malunggay / Potato / Carrots / Squash & Oats

 Production costs

a.) Cost of Utensils

Mixer P 278.25
1 pc Can opener 68.25
1 set Measuring spoon (plastic) 36.75
1 pc Measuring cup (plastic) 57.75
1 pc Chopping board (anti-bacterial) 89.25
3 pcs Plastic bowl 26″ 163.80
1 pc Spatula 58.80

752.85
b.) Equipment
4 pancake maker 2000.00
1 unit Kitchen scale (0-1 kg) 293.95
1 unit Styrofoam cooler/ice chest (12x18x24) 228.90
1 unit Refrigerator (3 [Link]. personal size) 7,875.00
____________
P 11,150.70
Raw Materials per Malunggay pancake
Wheat Flour 1.00
Eggs 2.00
Milk 3.00
Butter 1.00
Baking soda 2.00
Sugar 3.00
Malunggay 3.00

Raw Materials per Carrot pancake

Wheat Flour 1.00
Eggs 2.00
Milk 3.00
Butter 1.00
Baking soda 2.00
Sugar 3.00
Carrot 3.00

Raw Materials per Squash pancake

Wheat Flour 1.00
Eggs 2.00
Milk 3.00
Butter 1.00
Baking soda 2.00
Sugar 3.00
Squash 3.00

Raw Materials per Potato pancake

Wheat Flour 1.00
Eggs 2.00
Milk 3.00
Butter 1.00
Baking soda 2.00
Sugar 3.00
Potato 3.00

Raw Materials per Oats pancake

Wheat Flour 1.00
Eggs 2.00
Milk 3.00
Butter 1.00
Baking soda 1.00
Sugar 3.00
Oats 3.00

Packaging:
1 pc paper holder 0.15

CHAPTER V

FINANCIAL ASPECT
Introduction

This chapter discusses the financial aspects of the study, in order for a business

plan to understand it needs money to start. To determine whether the future industry will

remain profitable through the existence of competitors and unfavorable economic

condition, the researchers have to project a five year financial statement. This chapter

includes the source of funds, balance sheet, income statement and cash flow.

Starting up cost

In order to establish this firm, the proponents have a total investment of P300,000 each

of us contributed 60,000 each. from this amount of investment, expenses like the pre

operating expenses, Acquisition of equipments, Administrative expenses as well as the

purchase of inventories will be incurred. .These composed of the overall project cost

amounting to P218,000.00.

The excess on the capital contribution P82,000.00 serves as the cash reserve of the

business

General assumptions

The following are the assumptions made by the proponents for the preparation of
financial aspects.

• Sales are assumed to have increases each year 5%

• Cost of purchases increases by 5% each year.

 • Rent expense has a 5 % increase on the third year of operation.

• Salaries expense will increase by 5% on the third year of operation.

• For utilities expense. There will be a 5% increase in electricity and water every
year.

• In withholding tax all employees are assumed single

Profit and loss shares

PROPONENT CONTRIBUTION % of shares in Profit /

Loss

Joey Deang 60,000 20 %

Yves Tan Lico 60,000 20 %

Irvin Francisco 60,000 20 %

Jade Pangilinan 60,000 20 %

Lavrice Arcosa 60,000 20 %

Projected Daily Sales

Std. Selling Price Daily Projected Daily Sales (php)
Capacity
Malunggay / Potato / 29 200 pancakes a day 5800
Carrot / Squash / Oats
 Daily Indirect Cost
Indirect Costs Indirect cost per
pancake
Labor cost 290 a day 150 a day 200 produced a day P 0.75

Transportation 14000 / 10 days (to maintain freshness; buy milk every 3 P 0.31
days= 10 days in a month) / 600 cups produced in three days

Water and Electricity Rent 780 / 30 days / 600 pancake P0.17

Contingency 10% direct cost P 1.31

P 2.54
X 200
Daily Indirect Cost = P 508

Daily Direct Cost

Daily Direct Cost (php)
Small @ P 14.15 Unit cost 200 pancakes produced 2830

Daily Sales 6000

Less: Direct Cost 2830
Less: Indirect Cost 508
Projected daily Income P 2662

e.) Projected Monthly Sales

Std. and Selling Price Projected Monthly Capacity Monthly Sales (php)
Pancakes @ 30 6000 180 000

Monthly Sales 180 000

Less: Direct Cost 84, 900
Less: Indirect Cost 15,240
Projected Monthly Income P 79 860

Financial Statements

1) Financial Positions as of March 2016

PROJECTED INCOME STATEMENT FOR 3YEARS

Gross Sales -

Sales Return & Allow -

Beginning Inventory -

Purchases -

Purchases Discount -

Ending Inventory -

Rental -

Salaries -

Depreciation -
Advertising -

Miscellaneous -

Provision for Income Taxes -

Interest Income -

Interest Expense -