BUSINESS PLAN

KERIC’S BAKERY
E. Aguinaldo Street
Brgy. San Diego
GUMACA,QUEZON

JOHN KEVIN R. SASTRILLO

RICKSOR C. VIOLATA

APRIL 24, 2021

EXECUTIVE SUMMARY
Ricksor and Kevin have been involved with the food industry for several years. And
also being a Hospitality student and their love and passion for food, they decided to put a small
bakery shop in Sariaya, Quezon. They first open their bakery on February 20, 2021, and offers
varieties of bread and pastry to the people. Selling their specialty that they have learned through
their course is such a huge help in their business. One of their most proud product is the healthy
malungay pandesal that is very good to eat in the morning especially for young ones.

Their goal is not just to be successful in the business that they have put up but also to
give people healthy food mostly in the morning to energize their morning. In the evening, after a
long day of work they give all the unsold bread to the poor and to the needy because they know
that everyone needs to eat and also not to waste food. The store is close to the street so people
would easily see it and buy from it.

The shelf life of bread is short and needs to be solved once it is baked. Therefore it is
only for the best to give it to those who truly need them than letting it rot and be thrown away.
Papers and permit from the municipality are very important to know that the business is legal and
have the rights to be in that current place. A sanitation permit is also important to know everyone
who is working inside the shop is clean and doing the proper protocols. Every month, they will
sell new products for everyone to try so they can experience a little hint of change on what they
usually order.
Table of Contents

Executive Summary............................................................... 2

Mission and Vision………………………………………………4

Background and History ....................................................... 4

Market Description ............................................................... 4

Competition............................................................................ 4

Marketing Strategies...................…,...................................…. 5

Manufacturing Plan................................................................5-6

Threat of a new Entrants......................................................…6

Management Team…………………………………………….………….……7

SWOT ANALYSIS……………………………………………….…………..…8

Procedure on making Bread and Pastry…………………………..…9 - 10

Description of Products ………………………………………….……….11-18

Costs of Materials.........................................................….…19-21

Demand Forecast Sale......................................................…..22

Assets...........................................................…………………….………….23
MISSION - We strive to give delicious and quality baked goods for our customers at a friendly
[Link] are task to boost and give them the energy that they need. To be the best bakery in
making variety bread and pastry.

VISION - To increase our company’s profitability and make people enjoy every product we
make. Giving other people jobs and hiring them to help us in the business. To gain customers
loyalty in the first 4 months in the business industry.

Background and History

They plan on having this kind of business a year ago and with Ricksor and Kevin’s effort,
they manage to save up the money that they will need to build this bakery. When they were
second year students they have their own theory of running their own business and partnering
with each other. Time had past and they conduct all the papers and materials needed to build
what they have today.

Market Description
Most of the customers prefer bread in the morning and having 32 percent is alright to
manage what the buyers want. But malungay pandesal is the kind of bread that is sold to the very
end because of its soft texture and is very healthy to eat especially before starting the day.
Everyone is the target market because everyone needs a huge and booster morning meal that a
baker can provide. In this sector, wheat allergy is prohibited to but any of the products because
of his/her food allergy. Research says that one out of five people suffers from food allergy
including eating simple bread.

Competition
Owning a bakery shop comes with a price, don’t assume that you are the only one who thought
this kind of business to run inside the town. There will always be other baker shops and
sometimes it is near to where you are standing your business. One of the most haterade of them
all is when they also offer the same products you are offering to the people. Competitors can be a
pain in the neck, but it can be avoided by innovating new market strategies and by offering
people what they want.

A viable strategy you can use to grow your own bakery business is to make artisan baked goods
that people won’t easily be able to find elsewhere and having a menu that caters to special diets
among your consumers. With the health consciousness spreading around the country, bakeries
that make bread for a gluten-free diet are in demand.
This is actually a helpful situation for small bakeries because they are more light and flexible
than larger bakeries and better able to adapt to the evolving tastes of the population.

These are some of the competitors that we would be dealing.

Direct Competitors :

Other bakery shop - there will always be other bakery shop, and offer some products similar to
our products. It is up to the people whether they like ours or the other bakery.

Cafes - Cafe is similar to a bakery shop because they also sell pastry and bread. Cafe can be a
little fancier than a bakery shop because of how scenic a room of a cafe is.

Donut shop -another desirable place to go instead of a bakery shop is the donut shop where
most millennials would waste there time and enjoy varieties of donuts.

Sandwich shop - mostly for rich people, these kind of business is popular when you want a
nice sandwich whether it is grilled or not.

Market - The market also sells varieties of pastries and bread to people and offering them at a
low price can easily caught the customers attention.

Marketing Strategies

This is where doing a really great approach to the customer and the satisfaction in the product
and also in the service. Doing these things would definitely boost up the business.

Make the most out of your promotions - promote artisan-shaped bread and pastry to the people
because it can be the secret to the success of the business.

Being nice to your customers - One of the most positive ways of attracting more and loyal
customers is by being nice to them. Saying thank you and greeting them can really encourage
them to come back and creating a long-term relationship between buyer and seller. Smiling at
them and showing respectful gestures are enough to make someone’s day a little better.

Care about your customers - People do appreciate it when your employees care about their
experience and make them feel welcome. They'll come back again and again even if your prices
are a bit higher than in another bakery around the corner.

Try to do everything to make your customers’ lives as easy as possible. Give them attention as
soon as they enter the premises and especially to the elder.
Offer loyalty programs - Get a loyalty system going to encourage people to buy more. When
people know they stand to gain something from spending a little money on your pastries, they'll
keep spending.

 Tap Into Social Media - The help of social media nowadays are very helpful mostly to business
who just started. Creating an account on social media means you can post new products to
propose to the customers.

Manufacturing Plans

When it comes to the bakery, the main materials are the machinery, materials, raw
ingredients, and the most important is manpower.

Availability of material -Buying bowls, pans, whiskers, rolling pin, etc. These are the materials
needed in baking and it’s very important. Buying this material are bought in hardware stores and
wisely manage especially buying only what is needed.
Availability of manpower - 10 workers are the minimum staff when baking and preparing the
materials. The importance of manpower is that they can manage to know how much ingredients
will be put in cooking the given task.
Availability of plant and machinery - This is probably the most important thing in a bakery shop,
the raw materials, and the machinery. Buying them in a reliable friend at a low cost can help to
manage the budget and also by selling the finished goods at a fair price.

THREAT OF NEW ENTRANTS

1. Economies of scale - If new entrants enter the economy, they could decline the minimum
price and decrease it.
2. Product differentiation - They may and can use much expensive products to drive away our
loyal customers.
3. Capital requirements - Having a huge money to run a business is such huge step and can
improve the business by getting high quality products.
4. Switching costs -Changing the cost of the assigned price.
5. Access to distribution channels - This can be a barrier if logical distribution channels have
been locked up by incumbents.
6. Cost disadvantages independent of scale - new entrants do or copy the other companies
advantage like its machinery and the way they run their business. It takes time and
experience to gain such knowledge in the business industry.
 MANAGEMENT TEAM

Robin Obina & Allan Soriano (Bakers) - Their roles is to make the dough and shape them to be
baked. They are task to know every ingredients and measure every thing at the right [Link]
jobs are one of the most delicate because if done wrong, they could be selling awful bread.

Carl Vera Cruz (Baker Assistant) - He’s job is to help the 2 main bakers and the pastry chef in
doing their jobs. He also assist other workers in the premises. He also has the task to store the
raw materials and clean the working place in time for the bakers to use it.

April Rose Anda (Bakery Production and Equipment Operator) - Making sure every equipment
is functional and ready for work. She checks every thing before and after baking and makes sure
every material is at its best in performance. She also makes sure that everyone is doing what they
are suppose to do. Monitoring the work place is here speciality.

Russel Pigos (Pastry chef) - With his talent and experience, there is no doubt that he alone
manage the pastry part and can do it in a really fast time. He is also assigned to make sweets and
cakes.

Ricksor Violata (Bakery Manager) - He manage the business by buying the raw materials like
flour and eggs, recruiting new bakers and training them. He also motivates his employees and
boost them to be at their best.

John Kevin Sastrillo (Financial Manager) - He manage the money in the business. He would
inform the bakery manager how many raw materials to buy and tell him if the business is
improving or not. The financial manager also plans for the future and manage the money when
something has gone wrong.
SWOT ANALYSIS

STRENGTH WEAKNESS

 HAS A SPECIALTY FOOD TO  LITTLE EXPERIENCE RUNNING A

OFFER TO THE CUSTOMER BAKERY

 SKILLED WORKERS  GLUTEN PRODUCTS DON’T

STAY FRESH
 GOOD EMPLOYEE ATTITUDE
 EXPENSIVE LEASE
 HIGH EFFIECIENT, BUT LOW
COST MANUFACTURING  CUSTOMER CONFUSION ABOUT
WHEAT FREE AND GLUTEN FREE
 EXCELLENT CUSTOMER PRODUCTS
SERVICE
 DIFFICULT TO PROMOTE
 Baked items have a
sustainable market.

OPPORTUNITIES THREATS

 BAKED GOODS ARE NOT  CHANGE OF RAW PRODUCT

SEASONAL PRICE.

 EVERYONE CRAVES FOR  OTHER BAKERY SHOPS

PASTRIES AND BREAD
ESPECIALLY IN THE MORNING  OTHER TRENDING FOODS

 MOVEMENT TO HEALTHIER  LOW PRICE OF OTHER

LIFESTYLE COMPETITORS

 CREATION OF PARTNERSHIP  LACK OF NEW IDEAS

 FASTER MARKET GROWTH

 INCREASE PRODUCTION OF
PRODUCTS AND MATERIALS
PROCEDURE ON MAKING BREAD AND PASTRY

How to make a bread

Scaling ingredients - measuring the flour, salt, sugar, butter, eggs, and yeast is very important
and using measuring cups ban ease the situation.
Mixing and Kneading - this part requires manual handling because we are going to mix all the
ingredients into one and then massage the dough to be fermented.
Primary Fermentation - the dough is let to rest to ferment the yeast present inside the dough.
Folding - this step makes sure that the air present inside the dough comes out and to avoid
choking of the yeast.
Dividing - the large dough is sliced and weight at the right scale.
Pre-shaping - in this procedure, the small dough will be rolled to the final shaping. It also stretch
the gluten inside the dough.
Resting - it takes 20 to 30 minutes for the gluten to relax and makes the shaping of the dough
easier.
Panning - the dough is manually handled for the last time to form to its desirable shape and then
placed to a pan.
Proofing - the dough is placed is a cool temperature and in a controlled environment to allow the
dough to rest and rise.
Baking - now it is time for the dough to be cooked by putting it inside the oven between 180-200
F for 20 to 25 minutes.
Cooling - the finished products are kept in a clean and cool storage area and put in a rack to
allow the air circulate around the bread.
Storing - last stage in making bread is the storage because you will put it in a room with a
temperature of 32degrees F and 50 degrees F.
PROCEDURE ON MAKING BREAD AND PASTRY

How to make a pastry

Description of Products

bread of salt” which S - 2 peso each

refers to the pinch of M - 3 peso each
salt used on the L - 5 peso each
dough, made with
few simple
ingredients such as
flour, water, sugar
and milk.

This coiled buttery 5 peso each

bread with sugar and
cheese sprinkles is the
Filipinos take on
brioche. yeast bun
made in Majorca,
Spain with pork lard.

This Panaderia 5 peso each

Faroutire very soft
round bread filled
with sweet coconut
filling made with
sugar, butter and
grated coconut.
The softest Filipino 2 peso each
Bread Types of all,
this mini sponge cake
is topped with melted
butter and lots of
grated cheese, very
light, nicely sweet and
very pillowy.

This Filipino Bread 2 peso each

Type is a sweet bread
that is prepared like a
muffin, this perhaps is
its simplest bread sold
in panaderias as its
only made with just
eggs, sugar, milk and
flour.

a very popular 240 peso per Round

Panaderia Favourite 30 peso each slices
made out of egg
custard baked on top
of pastry dough,
nearly similar to the
Portuguese egg tarts

a type of cake made 10 each slices

out of two slices of
sponge cake filled
with a potato custard
in the middle.
Similar texture to 5 peso each
pandesal but rolled
like a croissant filled
with breadcrumbs,
butter, and sugar.

This is a yellowish 3 peso each

soft bread with the
traditional split in the
middle. Some
commercial monay no
longer have the
suggestive marking on
top and are pale in
color.

Last on this list of 280 per round

Panaderia Favourites 35 each slices
this type of pie made
out of semi flaky
pastry filled with
custard made out of
young coconut meat
and condensed milk.
TOOL'S AND EQUIPMENT

kind of oven used for (1set)43,000 peso

baking bread,
reasonably different
from baking in other
ovens. Its apparatus
include a pan and oven
with control panels.
Bakers tables are used (1set)14,864.85 peso
for rolling and cutting
dough, kneading bread
and decorating baked
goods. Tables are
typically stainless steel
although some
surfaces may be
wooden.
a stationary electric (1set)23,997.59 peso
mixer for heavy-duty
mixing, whipping, or
kneading of various
foods, typically having
a flat beater, dough
hook, and whisk
attachments.
A bakery rack is a (1set)16,499 peso
useful piece of kitchen
equipment that helps
to complete your
baking job swiftly.
Bakery racks are used
to keep any baked
food item while they
are cooling after being
baked in oven. It is
very useful equipment
for your bakery. They
are also used in the
Rotary Rack Ovens.
Mixing bowls are used (2set, 6pcs)2,999
for storage, working peso
doughs, mixing dry
ingredients, mixing
salads, organizing, and
more. The kitchen
needs several bowls in
different sizes.

A regular baking pan (2set, 8pcs)350 peso

(13x9x2 inches) is a
definite must-have.
You can use it for so
many sweet things—
cakes, brownies,
cookie bars—and, of
course, it has savory
uses as well. If you pick
only one baking pan to
stock your kitchen
with, make it this one.
Rolling pins are (2set, 6pcs)785.76
definitely the most peso
useful for rolling out
pie crusts, cookie
dough, and puff pastry,
but there are other
ways you can put this
tool to work in your
kitchen. For example,
if you don’t have a
food processor and
need to crush cookies,
chips, or crackers for a
recipe, just put them in
a sealable bag, then
use your rolling pin to
smash them to pieces.
These Muffin/Cupcake (126pcs) 1,662.75
Pans are my go-to and peso
are great. They come
with a set of 2 so that
you can easily bake 2
dozen cupcakes or
muffins at once.

the most obvious use (12pcs) 440 peso

for a pie plate is baking
your own homemade
pies, but there are
other desserts that
make this pan useful to
have around. Also, you
can make savory pies
like meatball pie and
taco pie for dinner,
plus some frozen
icebox pies as well.
If you’re big on baking (3pcs) 570.17 peso
pies and flaky biscuits,
this is a handy tool to
have. It’ll make cutting
cold butter or
shortening into flour
much easier.
This tool is handy to (3pcs) 338.77 peso
have for frequent pie-
makers but not
necessary for more
casual bakers. It can
definitely be used to
cut pastry dough
smoothly, but in a
pinch, you can use a
sharp knife instead.
Just be sure to make
level slices instead of
one long cut, dragging
a knife through pastry
can tear and toughen
it.
wooden spoon is (1set) 387.16 peso
enough, but this tool is
so handy, it can
sometimes be helpful
to have a couple
around. Wooden
spoons are great for all
kinds of stirring
because they’re so
sturdy (you’ll be able
to use them with even
the thickest, heaviest
doughs).
Traditional pastry (1set 5pcs) 257.57
brushes are made with peso
natural bristles or a
plastic or nylon fiber
similar to a paint
brush, while modern
kitchen brushes may
have silicone bristles.

A dough cutter is a (4pcs) 495peso

kitchen utensil often
found in professional
and home kitchens,
which is primarily used
in baking. A dough
cutter can be made
with a wooden or
plastic handle that is
connected to a metal
blade, or it can be a
single piece of metal
that is rolled at one
end to form a handle.
wood hang grip,more (1set 2pcs)
comfortable to use. 3,292.93peso
Smooth steak shovel

Rusk Baking [Link]: (18pcs) 2,520 peso

13" X 18" and 16" X
24" Features:
Optimum quality,
Impeccable finish,
Long lasting nature,
Sturdy
COST OF MATERIALS

Item Cost No. Of items Total Cost

OVEN 43,000 1 43,000

BAKERS TABLE 14,864.85 3 44,594.55

ELECTRIC MIXER 23,997.59 2 47,995.18

BAKERY RACK 16,499 5 82,495

MIXING BOWLS 2,999 (2 SET, 6 4 11,996

PIECES)

BAKING PAN 350(2 SET 8 PIECES) 5 1,750

ROLLING PIN 785.76 1 350

(2SET,6PIECES)

CUPCAKE PANS 1,662.75 1 1,662.75

(126PIECES)

PIE PLATE 440 (12PIECES) 1 440

PASTRY 350 (3 PCS) 1 350

BLENDER

ROLLER BLADE 388.77 (3PIECES) 1 388.77

WOODEN SPOON 387 (1 SET) 1 387

PASTRY BRUSH 257 (1 SET 5 PCS) 1 257

DOUGH CUTTER 495 (4 PIECES) 1 495

STEAK SHOVEL 3,292 (2 PIECES) 1 3,292

TOTAL 239,103.25

OTHER EXPENSES

Item Cost No. Of items Total Cost

GLASS DISPLAY 1,400 6 8,400

CABINET

VINTAGE 78 11 858
EDISON BULBS

TABLE MAT 27 20 540

Scandinavian
5,200 5 26,000
Dining Chair

HOP INTERIOR 24,049 1 24,049

DESIGN

ELECTRICITY 5,700/MONTH 5,700

WATER 489.64/MONTH 489.64

TOTAL 66,036.64

TOTAL COST OF 239,103.25

MATERIALS

TOTAL COST OF 66,036.64

FURNITURE

TOTAL 305,139.89
Demand Forecast Output

Last Month Sale

Name of Food Cost No. Sold Sales Cost of raw Profit
Product material

Pandesal 3 9,845 29,535 12,000 17,535

Mamon 2 2,205 4,410 1,800 2,610
Kababayan 2 1,984 3,962 1,200 2,762
Egg pie 30 1,300 39,000 13,890 25,110
Spanish 5 6,450 32,250 12,200 20,050
bread
Monay or 3 3,209 9,627 3,900 5,727
bons
Buko pie 35 1,094 38,290 12,990 25,300
Ensymada 5 4,509 22,545 9,300 13,245
Pande coco 5 4,032 20,160 8,950 11,210

Inipit 10 3.506 35,060 15,700 19,360

TOTAL 38,134 234,839 91,930 142,909

Current Month Sale

Name of Food Cost No. Sold Sales Cost of raw Profit
Product material
Pandesal 3 11,200 33,600 12,500 21,100
Mamon 2 3,900 7,800 2,100 5,700
Kababayan 2 2,890 5,960 1,500 4,460
Egg pie 30 1,495 44,850 15,000 29,850
Spanish 5 7,841 39,205 14,200 25,005
bread
Monay or 3 5,300 15,900 6,500 9,400
bons
Buko pie 35 1,220 42,700 14,000 28,700
Ensymada 5 5,304 26,520 10,400 16,120
Pande coco 5 6,229 31,145 12,890 18,225
Inipit 10 4,790 47,900 19,700 28,200
TOTAL 43,645 295,580 108,790 186,760
 ASSETS

Current assets
Cash 5,200
Accounts Receivable 17,000
Inventory 9,500
Prepaid expenses 2,000
Total Current Assets 33,700

Fixed assets
Machinery and Equipment 239,103
Furniture and Fixtures 66,036
Total Fixed Assets 305,139

Cash sale (monthly) 186,760

Cash outflow
Purchase of raw materials 108,790
Labor 50,000
Operating Expenses 20,500
Payables Settled 2,000
Total cash outflow 181,290

Net cash inflow (outflow) 5,470

Income tax 2,000

Cash balance, ending 3,470