1

Chapter 1

BACKGROUND OF THE STUDY

INTRODUCTION

Burger stall business has been present in the Filipino

market since 1980. They were the first to establish a 24/7

business idea and was named the “burger that never sleeps”.

Burger stall business ranks 4th in the Philippine market with the

great number of stalls with 804 stalls. Aside from their wide

reach in the Philippine market, they are also known for the taste

and quality food which the Filipinos look for.

According to the Technomic (a food industry consulting

firm), “consumers are eating burgers more often than ever before.

Majority of consumers (95%) say they eat burgers at least once a

month and cravings are driving this high consumption. Half of

consumers (49%) cite cravings as one of the top reasons they

purchased a burger on their most recent occasion.

The advantages of establishing this kind of business,

according to Rio Lee (2010) is its popularity. The palates become

ever more adventurous, the industry is enjoying an explosion in

demand from rare and exotic culinary delights so the need for

more eateries shows no sign of slowing down. Number 2 is it is

low risk. In comparison to other entrepreneurial endeavors, the

risks involved in opening a burger stall are relatively low

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(Alwin Bert 2008). Next is, even without an expertise, an

individual can still go ahead and run his/her profitable burger

stall with just good business sense and right research. Also, it

is a good money maker. Burgers have been a hot choice in the

world of catering since the dawn of time due to their solid

profit margin and steadfast place on the best seller list. Even

though it may not generate the highest amount of earnings per

dish, their popularity and ease to produce ensure that, over

time, they make up for it by generating a reliable stream of

cash.

Darren Tristano, Executive Vice President of Technomic Inc.,

says the “better burger” sector continuous to thrive in the

overall burger category and that trend shows no signs of

stopping. “As the burger category evolves, consumer demands are

changing. Consumers expect ‘something extra special’ when dining

out and better burgers- with quality ingredients and customer-

chosen toppings or specialty preparations-can really help deliver

that as part of a solid value equation”, he says. And this

proposed business will have that ‘extra special dish’ if it

really succeeds.

There is no number of burger stall business in Barangay

Nazareth so the researchers found out that there is a great

possibility of success in this kind of business in the place.

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Though competition leads to innovation

(https:/[Link]/reasonswhycompetionisgoodinbusiness), the

researchers believe that it is at least a great thing to be the

first kind of business in an area.

STATEMENT OF THE PROBLEM

This research study aimed at looking into the feasibility

study on establishing a Burger Machine business at Barangay

Nazareth General Tinio, Nueva Ecija. Specifically, this sought to

answer the following questions:

1. What strategies are suited to this business?

2. What equipment and tools are needed?

3. How much capital is needed in establishing this kind of

business?

4. What various products can this business offer?

5. What are the standards of the business in hiring

helpers/workers?

6. What is the maximum and minimum workers needed?

7. What is the ideal earnings/profit monthly in this study?

8. What are the possible problems that may be encountered in this

business?
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SIGNIFICANCE OF THE STUDY

This study will benefit the residents of Nazareth as well as

the other barangays. Through the business, people will satisfy

their hungry belly with just small amount of money. This research

study is beneficial to the following:

The Government. This business will benefit the barangay of

Nazareth as well as the city of General Tinio because the taxes

generated by this will increase the government revenue.

Future Entrepreneurs. The findings of the study will help them a

lot in studying the feasibility on establishing a Burger Machine

business so that they can assess freely and when they decide to

put up a business like this, they will exactly know what they

should do.

Customers. This study will help the customers to understand the

operation and enable them to evaluate or assess the problems

encountered in Burger Machine Business.

The Researchers. Through this study, researches will have an

effective way of show casing what they have learned and come up

with an output, in the form of making a research study that would

be of benefit to others. This study will also enable the

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researchers to be more resourceful and studious in the field of

this study.

The Future Researchers. This study will be used as a reference

material for those researchers who may delve to undergo studies

similar with this current study.

SCOPE AND DELIMITATION

This study specifically focused on the Burger Machine

within the barangay of Nazareth where business concerns is within

the limit of customers and their conditions predominating in the

barangay and its surrounding barangay and municipalities. The

factors to be studied are marketing, management and financial

aspects of the business.

DEFINITION OF TERMS

The following terms are defined on how they are used in

this study.

 Burger Stall. A burger stand booth or compartment for the sale of

goods in a market or large covered area. ([Link])

 Burger Machine. Is one of the notable fast food companies in

the Philippines. It has always been retailing in outdoor stands

instead of shops. ( oxfordDic.)

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 Burger Grill. A device on a cooker that radiates heat.

(CambridgeDic. )

 Conspicuous. Very easy to see or notice. ([Link])

 Capital. Wealth in the form of money or other assets owned by a

person or organization. ([Link])

 [Link] act or process of spoiling; especially: the process

of decay in food stuffs.([Link])

 Venture. A new activity, project, business, etc. ([Link])

 Spatula. A kitchen tool that has a handle which is bent upward.

([Link])

 Food tong. Type of tool used to grip and lift objects instead

of holding them directly. ([Link])

 Buns. A sweet or plain small bread; especially: a round roll.

([Link])
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Chapter 2

METHOD OF RESEARCH, PROCEDURES AND SOURCES OF DATA

This chapter includes the descriptive method used to conduct

the research, the procedures performed to gather data and the

corresponding sources of other information needed collected by

the researchers.

RESEARCH METHOD USED

This study made use of the descriptive method of research.

Devin (2011), states that this type of research describe

situations and the relationships of the variables.

It is describing systematically and accurately the facts and

characteristics of a given population or area of interest; to

provide an account of characteristic of an individual, situation

or group; these studies are a means of discovering new meanings,

describing what exists, determining the frequency with which

something occurs and to discover associations or relationships

between or among selected variables. The researchers chose this

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method of research because it is the most appropriate in this

kind of study.

TECHNIQUES USED IN DATA GATHERINGS

The data were gathered by the researchers using the

following techniques and sources:

Interview. This is a face to face meeting, a private

conversation of formal meeting for consultations, to obtain the

information or ascertain personal qualities. It is used by the

researchers to have an idea of how a catering business should be

managed to become successful and profitable.

Questionnaire. The researchers made a questionnaire to

research some information on important aspects of this project

feasibility. Questionnaire is a list of a research of survey

questions asked to respondents and designed to extract specific

information. It serves to collect the appropriate data, make data

comparable and amenable to analysis, minimize bias in formulating

and asking question and to make questions engaging and varied.

Survey. The researcher used this method to gather

information about people and their opinions. It is one of the

most important areas of measurement in applied social research.

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Internet and Previous study. The researchers went on a

further study by reading published articles related to the

business which helped them deepen the understanding and findings

of the study. Also, the modern technology provided more available

information to the researchers as the use of internet research

was a big help during the conceptualization of the study.

RESPONDENTS OF THE STUDY

The respondents of this study are the people of Nazareth,

General Tinio, Nueva Ecija and its neighboring barrios.

TREATMENT OF DATA

The data were gathered, tabulated, analyzed and translated

into tables using statistical tools as to determine the viability

of this project.
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Chapter 3

PRESENTATION,INTERPRETATION AND ANALYSIS OF DATA

Market Description

Burger Machine is just a small business and it is a sole

proprietorship. It will be operated dependent to the demand of

its target customers—the residents of Nazareth. The proposed

business will prioritize the said barangay but based on the

survey conducted by the researchers, there is also a percentage

in the nearby areas so sub-contracting of service is also

possible to widen he market of this business.

Demand

There is no burger machine business in barangay Nazareth

so it will be easier to offer products with its satisfying but

reasonable price. The business will fully supply the demand not

just with a low cost but a high-quality products and service and

to cater the valued customers that will give satisfaction in

their special events but provide good savings.

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According to the survey conducted by the researchers, 61%

is the potential customers and 39% is the effective customers.

Though there are existing competitors, still the researchers

believe that the affordability of offered products and the

qualified service will give an edge to other competitors.

The table below shows the projected demand on the proposed

business for the following 4 years.

Projected Potential Demand in Quantity

(Population of Nazareth / 6(estimated family member) X 0.61 X

0.39)

YEAR POTENTIAL DEMAND

2019 1,449

2020 1,593

2021 1,752

2022 1,827

Table 1

SUPPLY

This proposed business has direct competitors in nearby

areas that offers same product. But this this is only a burger
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machine business in the Nazareth that will sell this kind of

product.

PROPOSED MARKETING PROGRAM

PRODUCT-MIX STRATEGIES

a. PRODUCT AND SERVICE

The list of the products that the business offers are:

1. Regular Burger

2. Special Burger

3. Cheese Burger

4. Ham and Cheese

5. Ham and Egg

6. Footlong

7. Footlong Special

b. PRICE

The establishment will make sure that all products are

affordable. The researchers ensure that the prices are fair,

reasonable and competitive. The consumers will be satisfied on

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the price and taste of the products they will purchase. The table

below shows the price of each product.

PRODUCT PRICING

PRODUCT PRICE
Regular Burger 15.00
Special Burger 33.00
Cheese Burger 22.00
Ham and Egg 22.00
Ham and Cheese 20.00
Footlong 32.00
Footlong Special 40.00
TABLE 2

c. PROMOTION

The researcher will use different kinds of marketing

strategies to promote the proposed business such as word-of-mouth

talk and informing the people about the business using tarpaulins

in the conspicuous area. The business name will be known as

“MicMic Burger.”

d. PLACE
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The business is located at the main crossing of Brgy.

Nazareth, General Tinio, Nueva Ecija. It is near the United

Methodist Church and placed at the front side of former

[Link].

TECHNICAL ASPECT

WORK FLOW PROCESSING

ACTIVITIES NOVEMBER DECEMBER JANUARY FEBRUARY

Prepare

Feasibility

Study
Sourcing of

Financing
Preparation

of Business
Permits
Purchasing

of

Equipments
Hiring

of helpers
Start of

Operation
Table 3
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CHANNEL OF DISTRIBUTION

Once the product has been introduced to the market and

consumer awareness has been generated, the product will be

available. The channel used for the market distribution of the

product is shown in the Figure below.

BURGER STALL

MANAGER/OWNER

CUSTOMERS

FIGURE 1

PROJECT SITE

The proposed business will be located at the main crossing

of Brgy. Nazareth, General Tinio, Nueva Ecija near the United

Methodist Church and at the front side of the former [Link].

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PROJECT SITE

PRESENT
[Link]

CROSSING POINT OF [Link], GEN. TINIO, NUEVA ECIJA

BURGER
STALL
UNITED
METODIST
CHURCH FORMER
[Link]

FIGURE 2.

MACHINERY, EQUIPMENT AND TOOL

The table below shows the following machineries, equipment

and tools to be use in the purposed business.

Equipment and Tools

EQUIPMENT/TOOLS PRICE QUANTITY TOTAL ANNUAL

NEEDED COST DEPRECIATION

EQUIPMENT

Burger 60,000.00 1 60,000.00

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stall

Burger 7,000.00 1 7,000.00

grill

Freezer 19,000.00 1 19,000.00

TOTAL 86,000.00 17,200.00

TOOLS
Spatula 40.00 2 80.00

Food tong 35.00 2 70.00

Egg shaper 20.00 2 40.00

Ketchup and 10.00 4 40.00

mayonnaise

container

Bread knife 50.00 2 100.00

Knife 50.00 2 100.00

Cheese 60.00 2 120.00

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grader

TOTAL 550 11O

TABLE 4

UTILITIES

The table below shows the detailed breakdown of the

utilities needed for the proposed business.

Utilities

UTILITIES TOTAL COST

Electricity 7,200.00

TABLE 5

RAW MATERIALS REQUIRMENTS

The following table shows the detailed breakdown of the raw

materials needed with corresponding cost according to its type of

burger per production.

Raw Materials

RAW PRICE QUANTITY UNIT TOTAL COST

MATERIALS
NEEDED
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Burger buns 22.00 240 packs 5,280.00

Foot long 44.00 96 packs 4,224.00

buns

Cheese 55.00 240 box 13,200.00

Egg 100.00 48 tray 4,800.00

Ketchup 60.00 20 gallon 1,200.00

Mayonnaise 180.00 12 gallon 2,160.00

Margarine 70.00 8 kl. 560.00

Ham 48.00 8 packs 384.00

Patty 386.00 30 box 11,580.00

Foot long 130.00 96 kl. 12,480.00

TOTAL 55,868.00
TABLE 6
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Manpower Requirements

POSITION MONTHLY TOTAL

RATES
Helper 3,500.00 42,000.00
TABLE 7

WASTE AND WASTE DISPOSAL

Segregation of garbage will be observed in the proposed

business. Biodegradable and non-biodegradable garbage will be

segregated. All garbage will be placed at the trash can to

maintain cleanliness and orderliness in the store area.

Total Production Cost

Products Daily Monthly Annually

Regular

burger

Special

burger
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Cheese

burger

Ham and

egg

Ham and

cheese

Foot long

Foot long

special

Total 2,155.00 56,030.00 672,360.00

TABLE 8

MANAGEMENT ASPECT

Personnel - qualifications, duties and responsibility.

A. HELPERS – He/she will assist the store. Buying of supplies and

raw materials are not included in his/her job.

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a. Male/ female, 18-35years old

b. With good moral character

c. Willing to work overtime

WORK AREA GUIDELINES

The following rules and regulation shall be implemented in

the work area of the business:

1. Proper waste disposal must be observed.

2. Keep your working area clean.

3. Tools should be properly handled and kept to maintain its

good condition and avoid losing it.

4. Helpers should wear proper

FINANCIAL ASPECT

The capital source in this proposed business will come

from the personal savings of the owner. In this case, the owner

is preventing the chance to pay high interest rates of lending

companies or bank.
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Furniture and Fixtures

FURNITURE PRICE QUANTITY TOTAL USEFUL ANNUAL

& FIXTURE NEEDED COST LIFE DEPRECIATION

Chair 280.00 2 560.00 5 112.00

Calculator 100.00 1 100.00 5 20.00

Table 1,500.00 1 1,500.00 5 300.00

TOTAL 2,160.00 432.00

TABLE 9

ADVERTISEMENT

Tarpaulin 500.00

UTILITIES

Electricity 7,200 .00

REPAIR AND MAINTENANCE

Repair and Maintenance 2,000.00

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FINANCIALS ASSUMPTIONS:

1. Raw materials purchases assumed to increase by 10% every year

2. Office supplies consumption for each year is 100% of the total

purchases with an increase of 1% every year.

3. There is a rent expense because the area to used in establishing

burger stall is not owned by the owner.

4. Utilities expense assumed to increase by 1% every year.

5. The repair and maintenance are expected to increase by 1%.

6. The income of this business is expected to increase by 5%.

Supplies

SUPPLIES PRICE QUANTITRY UNIT TOTAL

NEEDED ACQUISITION

COST
Trash can 90.00 2 Pieces 180.00

Sponge and 50.00 2 Pieces 100.00

dishwashing

liquid
Dust pan 35.00 1 Piece 35.00

Broom 120.00 1 Piece 120.00

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Foot long 34.00 10 Bundle 340.00

tray

Foot long 60.00 10 Bundle 600.00

plastic

Burger 70.00 10 Bundle 700.00

plastic

Table 40.00 10 Bundle 400.00

napkin

LPG 550.00 12 Pieces 6,600.00

TOTAL 9,075.00
TABLE 10

Total Projected Cost

Projected Investment:

Raw Materials Inventory 55,868.00

Supplies Inventory 9,075.00

Equipment and Tools 88,150.00

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Utilities 7,200 .00

Rent Expense 21,600.00

Furniture and Fixtures 2,160.00

Advertising Expense 500.00

Total Investment 184,553.00

Cash Capital Contribution 250,000.00

Less: Investment ( 184,553.00 )

Cash, Beginning –2018 65,447.00

Schedule of Selling Price

PRODUCT 2018 2019 2020 2021

Regular burger 15.00 17.00 19.00 21.00

Special burger 33.00 36.00 39.00 42.00

Cheese burger 27.00 30.00 33.00 36.00

Ham and egg 22.00 24.00 26.00 28.00

Ham and cheese 20.00 22.00 24.00 26.00

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Foot long 32.00 35.00 38.00 41.00

Foot long special 40.00 43.00 46.00 49.00

total 903,240.00 979,680.00 1,062,360.00 1,145,040.00

TABLE 12

Schedule of Sales

Year Projected Sales

2018 903,240.00
2019 979,680.00
2020 1,062,360.00
2021 1,145,040.00
TABLE 13

Schedule of Projected Cost of Sales of Products

Year Production Cost

2018 672,360.00
2019 739,569.00
202 813,528.00
2021 894,880.00
TABLE 14
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Consolidated Income Statement

2018 2019 2020 2021

903,240.00 979,680.00 1,062,360.00 1,145,040.00

Sales (Note

6)
672,360.00 739,569.00 813,528.00 894,880.00

Cost of Goods

Sold (Note 6)
230,880.00 240,111.00 248,832.00 250,160.00

Gross Income

Expenses:

Supplies 9,075.00 9,165.00 9,256.00 9,348.00

Expense
Depreciation 17,310.00 17,310.00 17,310.00 17,310.00

– Equipment

and Tools
Depreciation 432.00 432.00 432.00 432.00

– furniture

and Fixture
Salaries 42,000.00 42,000.00 42,000.00 42,000.00

Expense
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Advertising

Expense
500.00 500.00 500.00 500.00

Utilities 7,200.00 7,272.00 7,344.72 7,418.16

Expense
Repairs and 2,000.00 2,000.00 2,000.00 2,000.00

Maintenance
Rent Expense 21,600.00 21,600.00 21,600.00 21,600.00
100,117.00 100,279.00 100,442.72 100,608.16

Total

Expenses

NET INCOME 130,763.00 139,832.00 148,389.28 149,551.84

TABLE 15

Consolidated Statement of Cash Flows

CASH 2018 2019 2020 2021

INFLOWS
Beginning 250,000.00 333,339.00 514,635.00 704,690.92

capital

Cash sales 903,240.00 979,690.00 1,062,360.00 1,145,040.00

TOTAL 1,153,240.00 1,313,029.00 1,576,995.00 1,849,730.92

INFLOWS
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CASH

OUTFLOWS
Raw

materials
670,416.00 737,457.60 811,203.36 892,324.00
Inventory

(Note 1)

Supplies 9,075.00 9,165.00 9,256.00 9,348.00

Expense

(Note 2)
Equipment &

Tools (Note
86,550.00
3)
Furniture &

Fixtures
2,160.00
(Note 4)
Salaries

Expense
42,000.00 42,000.00 42,000.00 42,000.00
(Note 7)

Advertising

Expense
500.00 500.00 500.00 500.00
(Note 9)
Utilities

Expense
7,200.00 7,272.00 7,344.72 7,418.16
(Note 8)
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Repairs &

Maintenance
2,000.00 2,000.00 2,000.00 2,000.00
(Note 10)
TOTAL 819,901.00 798,394.60 872,304.08 953,590.16

OUTFLOWS
NET CASH 333,339.00 514,635.00 704,690.92 896,140.76

FLOWS
TABLE 16

Consolidated Balance Sheet

2018 2019 2020 2021

ASSETS
Current

Assets
Cash (See 333,339.00 514,635.00 704,690.92 896,140.76

Cash Flow

Statement)
Raw 55,868.00 61,454.08 67,599.48 74,359.43

Materials

Inventory

(Note 1)
Total 389,207.00 567,089.08 772,290.40 970,500.19

Current

Assets
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Non- Current

Assets

Equipment & 86,550.00 86,550.00 86,550.00 86,550.00

Tools (Note

3)
Less: (17,310.00) (17,310.00) (17,310.00) (17,310.00)

Accumulated

Depreciation

(Note 3)
Furniture & 2,160.00 2,160.00 2,160.00 2,160.00

Fixtures

(Note 4)
Less:

Accumulated
(432.00) (432.00) (432.00) (432.00)
Depreciation

(Note 4)
70,968 84,728.17 84,728.17 84,728.17

Total Non-

Current

Assets
TOTAL ASSETS

460,175.00 660,817.25 857,018.57 1,055,228.36

LIABILITIES - - - -
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OWNER’S

EQUITY
Beg. Capital 250,000.00 333,339.00 514,635.00 704,690.92
Add: Net 210,763.00 139,832.00 148,389.28 149,551.84

Income
Ending 460,175.00 660.817.25 857,018.57 1,055,228.36

capital

TOTAL

LIABILITIES
460.175.00 660,817.25 857,018.57 1,055,228.36
& OWNER’S

EQUITY
TABLE 17
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Chapter 4

SUMMARY, CONCLUSION AND RECOMMENDATIONS

This chapter presents the summary of the findings that

were consolidated in response to the identified areas of inquiry

of the study, the conclusions which were made in accordance with

the findings of the study and recommendations which are in

accordance with the needs of the study.

SUMMARY

This study is entitled “A Feasibility Study on

Establishing Burger Machine at Nazareth, General Tinio, Nueva

Ecija”. The descriptive method of research was used by the

researcher for this study, information was gathered through

survey.
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FINDINGS:

The data gathered by the researcher furnished the

following findings:

1. What strategies are suited to this business?

Different marketing strategies are proposed in this

business such as word of mouth marketing and posting of

tarpaulins in the store and to selected conspicuous places. The

target markets are the residence of Barangay Nazareth General

Tinio Nueva Ecija and nearby barangays.

2. What equipment and tools are needed?

The different equipment and tools are cited in table 5

and based on the interviews, it is very important that good

brands of these should be purchased because cheaper once will

cost more than the expensive but durable brands.

3. How much capital is needed in establishing this business?

The initial capital of the business is Php.900,000.00

(includes the estimated raw materials for one year) and the
 36

sources came from the savings of the owner. Based on the

projected income statement, there is a big probability that the

business will grow and become profitable.

4. What various products can this business offer?

The business will offer various products such as regular

burger, cheese burger, special burger, ham and cheese, ham and

egg, footlong and special footlong. If the business succeed, it

can offer more products.

5. How many helper/s is/are needed in this kind of business?

The number of helpers needed in this kind of business,

according to interview, can be one (1) only. The helper will work

12 hours a day (8:00 am- 8:00pm), Monday-Saturday.

6. What is the ideal earnings/profit monthly in this business?

According to the other owners of this kind of business,

the ideal profit in this business is 18,000 a month.

7. What are the possible problems that may be encountered in this

business?
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The problem that the business may encounter is the

spoilage of raw materials. The business may also be affected by

the weather.

CONCLUSIONS

Based on the information and data gathered, the researcher

therefore concludes that:

1. There is potential demand for this kind of business. Marketing

strategies like promotional materials and advertisements, as well

as quality control are useful in promoting the business.

2. 99% of the respondents said that they are impressed with the good

taste of the products and it is the asset of the business so the

quality of the ingredients should always prioritize.

3. The project will require a starting capital of Php.250,000.00

this amount will be used to pre-operational expenses like

advertising, raw materials, fixed assets and others. The invested

capital will be recovered after …… years.

4. The organizational structure will follow the most simple and

common line type of structure. The decision making and policy

formulation
 38

are vested in the manager/owner. The business should also develop

the quality of the products as times go by, ensuring that the

demand for the products of the business can be satisfied.

5. There are problems that the venture will encounter like the

spoilage of raw materials. It doesn’t have a solution but it can

be avoided. The business may also be affected by the weather but

the effect of this may be lessen.

RECOMMENDATIONS

Based from the findings the researchers recommend the

following:

1. Marketing strategies should be given importance. There should be

yearly updates of marketing strategies to be implemented.

2. The owner/manager should be more careful in monitoring the

business and his workers.

3. The area of the stall should be maintained to easily attract

customers and to avoid some issues.