ShawarMaize
A Feasibility Study
Presented to the Faculty Members of the
School of Hospitality Management
Divine Word College of Legazpi
Legazpi City
In Partial Fulfillment of the Requirements for the
Degree of Bachelor of Science in
Hospitality Management
By:
Arevalo, Emmanuel Louis
Jaucian, Charles Ivan
Decemeber 2020
Section 1
MARKET STUDY
This portion shows the product, the target market, historical data, projected
demand and projected supply, the market competition, the sales forecast and the
marketing programs on how to promote the business to feasible and doable. This
document should be used as a framework to guide the development of a business.
Product Description
Shawarma is a dish in Middle Eastern cuisine consisting of meat cut into thin
slices, stacked in a cone-like shape, and roasted on a slowly-turning vertical rotisserie
or spit. Originally made of lamb or mutton, today's ShawarMaize will
offer chicken, turkey, beef, or veal. Thin slices are shaved off the cooked surface as it
continuously rotates. Shawarma is one of the world's most popular street foods,
especially in Egypt and the countries of the Levant and the Arabian Peninsula and
beyond.
ShawarMaize is prepared from thin cuts of seasoned marinated beef,. The slices
are stacked on a skewer about 60 cm (20 in) high. Chicken fat may be added to provide
extra fat for juiciness and flavor. A motorized spit slowly turns the stack of meat in front
of a heating element, continuously roasting the outer layer. Shavings are cut off the
rotating stack for serving, customarily with a long, sharp knife.
Table 1
HISTORICAL POPULATION
Table 1
Historical Data
Grade Level School Year
2018 2019 2020
Grade 7 1,295 1,098 1,110
Grade 8 1,016 1,221 1,186
Grade 9 991 985 1,243
Grade 10 907 899 877
Grade 11 673 743 834
Grade 12 498 596 677
Total 5,380 5,542 5,927
Source: Principal’s Office, Daraga National High School
Table 1 shows the total population of Daraga National High School for the last 3 years.
These data was given by the school principal. It shows that in 2019 the population
increased by 3.0%, in 2020 by 5.15% or at an average of 4.075%
Demand Analysis
Demand is when the price of a good or product decreases, the relative price of
that product makes the buyer more eager to buy that good or product.
The proponents distributed 80 copies of survey questionnaires which were
distributed after their afternoon classes.
Table 2
Projected Demand
Year Target Market % of Frequency Projected Demand
Willingness
90%
2021 6,169 5,769 80 461,520
2022 6,418 6,155 80 492,400
2023 6,660 6,638 80 531,040
Table 2 shows the projected demand for the next three years. It shows the
willingness to buy of the product that is 90% or 72 out of 80 respondents. The
frequency was based from the result; where majority of the respondents they will buy
the product twice a week.
Supply Analysis
Supply is also one important factor of the feasibility study in a business and it
refers to the existing product and service in the market.
Table 3
Competitor’s Supply
Competitors Daily Servings Weekly Monthly Yearly Serving
Shawarma 178 1246 5340 64,080
Shack
Leylam 102 714 3060 36,720
SHawarma
Turks 160 1120 4800 57,600
Shawarma
Total 158,400
Table 3 shows the daily, weekly, monthly, and yearly servings of the competitors.
The proponents gathered the data through casual interview from the competitors.
Table 4
Projected Supply
Year Projected Supply
2021 161,568
2022 164,736
2023 167,904
Total 494,208
Table 4 explains the projected supply for the next three years. According to the
owner of competitor’s business, an average of 2% per year is the increase in their sales.
Demand and Supply Gap
Gap analysis involves analyzing current market offering to assess the extent to
which they meet customer demands.
Table 5
Demand and Supply Gap
Year Demand Supply Gap
2021 461,520 161,568 299,952
2022 492,400 164,736 327,664
2023 531,040 167,904 363,136
Table 5 shows that there is still a wide gap could be filled by the proposed, which means
that there is a great opportunity for the proposed business to be successful in the future.
Table 6
Sales Forecast
Product Quantity Unit Price Daily Weekly Monthly Yearly
Shawarma 100 P 50.00 P 5,000.00 P30,000.00 P120,000.00 P1,440,000.00
Table 6 shows the daily, monthly,and annual sales of the business.
Marketing Program
. The marketing program is a coordinated and well-designed set of activities to
achieve marketing objectives. Marketing objectives are strategic sales goals that fit the
products' strengths and are based on various characteristics of the product. It
represents the 4 P’s marketing. Product, Price, Place, and Promotion that are vital for
the success of the proposed business venture.
Figure 1
Product
Price
The product will be sold in cash basis. The business will see to it that the
price of the food would be made affordable to all kinds of people, specially to the
students.
Costing
Beef Shawarma
ITEM QUANTITY UNIT TOTAL COST
Beef 6kg P220.00 P1320.00
Cucumber 1kg 60.00 60.00
Cheese 5packs 45.00 225.00
Ground All Spice 6packs 30.00 180.00
Onion 1kg 100.00 100.00
Oil 1kg 50.00 50.00
tomatoes 1kg 60.00 60.00
Pita Bread 100pcs 2.50 250.00
Lettuce 1kg 120.00 120.00
Mayonnaise 1galon 110.00 135.00
Total: P2500.00
Yield: 100 serving
Total Cost: P2500.00
Total Price: P 25.00
Mark Up: 100% = P 25.00
Selling Price = Total Price + Mark Up Price
P 25.00 + P 25.00 = P 50.00
Selling Price = P 50.00
.
Place
A good location is always a factor for generating good profit. The proposed kiosk
will be placed at Brgy Sagpon, Daraga, Albay infront of Daraga National High
School. The proponents will pay a rent worth P5,000.00 monthly.
Figure 2
Location Map
Figure 3
Location
Promotion
The proponents of this study will use tarpaulin and through social media to
promote the proposed business.
Figure 4
Business Logo
Table 7
Promotional Cost
Items Quantity Cost Total Cost
Tarpaulin 3 pcs 100.00 300.00
Total 300.00
Source: Lumenario Design Decal & Tarpaulin Printing
Table 8 shows the total cost of the promotion approaches of the proposed business.
Section 2
Production Study
This section presents the product description. It includes the production and
service process, production schedule, raw materials, tools, and equipment,quality
control, improvements, utilities and the cost of the rendering of the services of the
proposed business.
Product Description
ShawarMaize is prepared from thin cuts of seasoned marinatedbeef,. The slices
are stacked on a skewer about 60 cm (20 in) high. Chicken fat may be added to provide
extra fat for juiciness and flavor. A motorized spit slowly turns the stack of meat in front
of a heating element, continuously roasting the outer layer. Shavings are cut off the
rotating stack for serving, customarily with a long, sharp knife.
Shawarma is not only tasty but provides a great source of vitamin A. It is known that this
vitamin for eye health, and in strengthening the immune system. Shawarma is
recommended with more than one source of vitamin A such as turnip, carrots next to
lettuce, tomatoes and onions. Another healthy benefit of shawarma contains a good
proportion of vitamin B6. This vital vitamin is important for maintaining the health of the
nervous system, protecting the immune system, and supporting brain function. Several
studies have confirmed that vitamin B6 deficiency can lead to stress, depression and
muscle pain.
Production Process
Production process means a process, line, method, activity or technique, or a
series or combination of processes, lines, method or techniques, used to produce a
product or reach a planned result.
MISE EN PLACE
PREPARATION OF
INGREDIENTS
COOKING
FINISHED PRODUCT
Figure 5
Production Process Flow Chart
Service Process
The proposed business kiosk will be open from 7:30 in the morning to 5:00 in
the afternoon, Monday to Saturday.
TAKING OF ORDERS
PAYMENT
PREPARATION
SERVING
Figure 6
Service Process Flow Chart
Table 8
Raw Materials
Qty Unit Total Total Cost Total Cost Total Cost
Item Cost Weekly Monthly Yearly
Daily
Beef 6kg P220.00 P1320.00 P31,680.00 P380,160.00
P7,920.00
Cucumber 1kg 60.00 60.00 360.00 1,440.00 17,280.00
Cheese 5pcks 45.00 225.00 1,350.00 5,400.00 64,800.00
Ground All 6pcks 30.00 180.00 1,080.00 4,320.00 51,840.00
Spice
Onion 1kg 100.00 100.00 600.00 2,400.00 16,800.00
Oil 1kg 50.00 50.00 300.00 1,200.00 14,400.00
tomatoes 1kg 60.00 60.00 360.00 1,440.00 17,280.00
Pita Bread 100pcs 2.50 250.00 1,500.00 6,000.00 72,000.00
Lettuce 1kg 120.00 120.00 720.00 2,880.00 34,560.00
Mayonnaise 1galon 135.00 135.00 810.00 3,240.00 38,880.00
Total: P2500.00 P 15,000.00 P60,000.00 P720,000.00
Source: Daraga Public Market
Table 8 presents all the raw material that will be needed in the proposed business. It
shows the total cost from daily to yearly.
Tools and Equipment
Table 9
Machineries and Equipment
Units Quantity Unit Total Useful Life Depreciation
Expenses
Food 1 P320.00 P320.00
Weighing
Scale
Gas tank 1 1000.00 1000.00
Cooler 1 600.00 600.00
Electric Fan 750.00 750.00
Shawarma 1 15,000.00 15,000.00 3years P5000.00
Machine
Total P17,670.00 P5,000.00
Source: Food Cart and Machineries, Co. Manila
Table 9 shows the kitchen equipment that will be used in the proposed business
Table 10
Packaging Materials
(Consumable Weekly)
Items Unit Price Total Cost
Brown Paper 600pcs P600.00 P600.00
Paper Bag (M) 1 box/500pcs 600.00 600.00
Total P1,200.00
Source: Unitex Legazpi
Table 9 shows the list of the packaging cost needed in the proposed business.
Table 11
Kitchen Utensils
Items Unit Price Total Cost
Casserole 2 P 685.00 P 1,370.00
Food Tong (Big) 1 80.00 80.00
Stainless Tray 1 250.00 250.00
Spatula 1 115.00 115.00
Food Wrapper 1000pcs 1100.00 1100.00
Total P 5165.00
Source: Yashano Mall
Table 11 shows the list of the kitchen utensils, unit, price, of each item and the
total cost of the cleaning supplies.
Table 12
Office Supplies
Consumable Items Unit Price Total
Ballpen 4 P 5.00 P 20.00
Record Book 2 36.25 72.50
Total P92.50
Non-Consumable Items Unit Price Total
Calculator 1 265.00 P 265.00
Total P357.50
Source: Yashano Mall
Table 12 shows the lists of the office supplies, unit and price of each item. It also
shows the total cost of the office supplies consumable and non-consumable.
Table 13
Furniture and Fixtures
Items Quantity Unit Total
Tables 2 725.00 1,450.00
Chairs 8 155.00 1,240.00
Total 2,690.00
Source: Yashano Mall
Table 13 shows the lists of furniture and fixtures to be used in the proposed
business.
Table 14
Cleaning Supplies
Total
Consumable Items Quantity Unit Cost Monthly Annually
Dishwashing Liquid 1L 120.00 P 120.00 P120.00 P1,440.00
Sponge 2 pcs 10.00 10.00 10.00 120.00
Rugs 4 pcs 12.00 48.00 48.00 576.00
Trash Bags 1 pack 55.00 55.00 55.00 660.00
Total P 233.00 P 233.00 P 2,796.00
Non-Consumable Total Annually
Items Quantity Unit Cost
Trash Bins 2 pcs 72.75 P 145.50 P 145.50
Mop 1 pc 236.75 236.75 236.75
Soft Broom 1 pc 80.00 80.00 80.00
Dust pan 1 pc 50.00 50.00 50.00
Total P 512.25 P 512.25
Source: Yashano Mall
Table 14 shows the lists of the cleaning supplies, unit, price of each items and
the total cost of the cleaning supplies. Consumable items will be bought monthly and
the non-consumable items will be bought annually.
Table 15
Sanitary Supplies
Total Monthl
Consumable Items Quantity Unit Cost y Annually
Disposable Plastic Gloves 1 pack 50.00 50.00 200.00 2,400.00
Tissue 1 pack 55.00 55.00 220.00 2,640.00
Total 105.00 420.00 5,040.00
Total
Non-Consumable Items Quantity Unit Cost Annually
Hand Towel 3 pcs 12.00 36.00 72.00
Hairnet 2 pcs 10.00 20.00 40.00
Apron 2 pcs 45.00 90.00 180.00
Total 146.00 292.00
Source: Yashano Mall
Table 15 shows the lists of the sanitary supplies, unit of each item, total
cost monthly and total cost annually of the sanitary supplies. Consumable items will be
bought monthly and the non-consumable items will be bought annually.
Table 16
Utilities Expense
Utilities Monthly Consumption
Gas 780.00
Water (25 L) 300.00
Electricity 1,000.00
Total P 2,080.00
Source: Petron Gasul, LCWD, APEC
Table 16 shows the possible water and electricity bill that the proponents need to
pay every month.
Table 17
Improvement Cost
Items Quantity Unit Total Cost
Paint 1 gal 515.00 515.00
Paint Brush 2 pcs 59.25 118.50
Roller Brush 1 pc 165.75 165.75
Total 799.25
Source
Table 17 shows the lists of the materials needed for the improvement cost.
Quality Control
The proponents will provide supreme quality control. All the materials and
ingredients that will be used should be in a good quality. Teamwork will also be
executed in order to change and retain leaders who frequently raise the store, provide
directions and instructions, eliminate barriers and authorize people to successfully
accomplish goals.
Waste Disposal Scheme
Proper disposal of wastes can help in maintaining the environment clean and
safe. Proper disposal of wastes and segregation will be observed. Biodegradable will
dispose regularly to ensure cleanliness and orderliness in the production area.
Section 3
ORGANIZATION AND MANAGEMENT STUDY
This section presents the discussion of the management aspect of the business,
it will show the form of ownership, organizational structure, duties and responsibilities,
job description and specifications, manpower requirements, salaries and wages,
business registration and permits, and the timeline as presented in the Gantt Chart.
FORM OF BUSINESS ORGANIZATION
The proposed business will be operated as a general partnership, associated
with two persons bind themselves to contribute money, property or industry, to a
common fund with the intention of dividing the profits among themselves.
The proponents, as the owners of the business, are the managers of the
organization.
CAPITALIZATION
The proposed business will need P130,023.08 to start the business operation of
ShawarMaize. The partners will equally share said amount as their capital contribution
to the business amounting to 65,011.54each as shown in Table 18.
TABLE 18
Capitalization
Partners Amount
Arevalo, Emmanuel P 65,011.54
Jaucian, Charles P 65,011.54
Total P 130,023.08
Table 19
SALARY
Position Daily Monthly
Compensation Compensation
Partner 1 P 450.00 P 10,800.00
Partner 2 450.00 10,800.00
Total 900.00 P21,600.00
Table 19 shows the daily and monthly salary of the proponents.
LEGAL REQUIREMENTS
Table 20
PERMITS AND LICENCES
Registration Amount
Mayor’s Permit P 1,000.00
BIR 500.00
SEC 2,040.00
Barangay Clearance 66.00
TOTAL 1,566.00
Table 20 shows the list of legal requirements needed in the proposed business.
Gantt Chart
Items Aug Sept Oct Nov Dec Jan
Preparation of
Feasibility Study
Capital Sourcing
Purchasing of Materials
Business Registration
Promotion
Start of Operation
Business
Section 4
Financial Study
This section contains all the calculations of the projected cost. The importance of this
section is to provide the provide the proponents idea whether the business is feasible or
not
ShawarMaize
Project Cost
Property and Equipment
Equipment ₱ 17,670.00
Tools and Utensils 5,165.00
Furniture and Fixture 2,690.00 ₱ 25,525.00
Working Capital
Raw Materials ₱ 60,000.00
Office Supply 450.00
Cleaning Supply 745.25
Sanitary Supply 566.00
Utilities Expense 2,080.00
Salaries Expense 21,600.00
Packaging 1,200.00
Rent Expense 5,000.00 ₱ 95,641.25
Pre-Operating Expenses
Promotion ₱ 300.00
Permits and Licenses 1,566.00
Improvement Cost 799.25 ₱ 2,665.25
Tota
l ₱ 123,831.50
Contingency Cost (5%) ₱ 6,191.58
Total Project Cost ₱ 130,023.08
