College of Business Administration Education

A BUSINESS CONCEPT IDEA

_________________________________________________________________________

In Partial Fulfillment of the Requirements for the Subject

GE 11 - Entrepreneurial Mind
Summer Class SY 2021-2022
3:30 pm - 5:00 pm

Presented to:
Prof. Maria Teresa S. Bulao

Presented by:

GROUP 1
Acedillo, Neil Joshua
Ching, Tricia Jene
Escrin, Cheery Joy
Tan, Jane Moniquel
Telewik, Realyn

July 2021
 TABLE OF CONTENTS

i. Table of Contents ---------------------------------------------------------------------- 1

I. Proposed Product or Service ------------------------------------------------------- 2-5
II. Target Market --------------------------------------------------------------------------- 5-6
III. Competitors ----------------------------------------------------------------------------- 6-9
IV. Marketing Strategies / Realization of the Proposed Business ------------- 9-14
V. Location / Production ----------------------------------------------------------------- 14-18
VI. Management ---------------------------------------------------------------------------- 19-21
VII. Technical Aspects of Business ----------------------------------------------------- 21-25
VIII. Cost Production and Pricing Strategies ------------------------------------------ 26-38
IX. Financial Projections ----------------------------------------------------------------- 39
X. Action Plan ------------------------------------------------------------------------------ 40
ii. References ------------------------------------------------------------------------------ 41-42

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I. Proposed Product or Service

According to (FAQ.ph, 2018), Filipinos are well known for their love of food
and in every meal. There is always rice and in almost every breakfast, the rice
should be served according to (Zialcita, F. N., 2005), in addition, we love to eat,
especially using our hands and putting our feet up on the chair and resting the elbow
and knee. Rice is part of the culture, it is a staple food for Filipinos, and it goes with
any meal (Imelda, 2018). Almost half of the population in the world gets roughly fifty
percent (50%) of their caloric intake from rice (Brennan, D., 2020). Rice contains
calcium, iron, and calories that are like fuel for our body, they are essential for our
body to operate optimally. The scarcity of rice or something that would take its place
will significantly result in the hunger of many people.
Pastil is a rice product that originated from the Muslim people from the
Maguindanao, it was originally called a poor man’s food and was originally for the
Muslim people but now is also offered to non-Muslim people (Punzalan, 2017).
Additionally, this delicious food is made up of only boiled rice with topping ‘kagikit', a
sauteed shredded meat of fish, chicken, or beef, and is then wrapped with a wilted
banana leaf (See Figure 1). Originally, the preparation of the meat was used from the
leftovers, but today freshly cooked are served to ensure the best taste, freshness,
and quality. To enhance the taste more, spices like onion, ginger, and garlic are
added, even soy sauce makes the food even better, a hard-boiled egg may be added
to complement the dish. Based on an interview with a pastil businesswoman, Bai
Aileen Samad, who operates an eatery in Cotabato, particularly inside the mega-city
market, sold pastil seventy-five (75) pieces to one hundred (100) pieces daily and
occasionally will reach up to one hundred fifty (150) pieces. The price for each of the
servings ranges from seven pesos (P7.00) to ten pesos (P10.00) and other eateries
offer them at fifteen pesos (P15.00).
Pastil Food House, a family style restaurant, takes the traditional pastil into a
whole new level, to serve in a Bilao, a woven tray that is traditionally made from the
Abra Province and are used for cleaning raw rice, but are also used to serve food
such as puto or pancit, not only it serves as a serving plate, but in the overall
aesthetic. According to its serving size, there will be a variety of bilao sizes, flavors,

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or toppings that vary to chicken, fish, beef, etc. Pastil is known for its salty flavor, to
complement, a sweet dessert Camote Delight is also offered. Filipinos love sweet
foods especially desserts (Unilever Food Solutions, 2020). Made from the main
ingredient Camote or Sweet Potato, a known vegetable that is sweet-tasting, starchy,
and healthy because it has high levels of Vitamin C, which may help reduce the risk
of getting chronic diseases. The main highlight of the Pastil Food House is that it
proudly carries the Filipino tradition, catering our very own pastil and camote delight,
served on bilao that is locally made, which helps our local weaver in producing the
bilaos and our main suppliers and farmers from Marilog District, Davao City.

Business Name
Pastil Food House was chosen as the business name because it is easy to
remember, a straightforward name that is not complex for people to pronounce.
House was used because for us, it is best to eat when you feel at home, thus, the
inspiration for the exterior of the physical store is inspired by “Bahay na Bato”, an
original Filipino house, the updated version of the “Bahay Kubo”.

Business Slogan
“PASTILan nga lamian, sa Davao ra makit-an!”. Pastil was originally from
Maguindanao and was only for the Muslim people, but because of its delicious taste
and unique way of packing, it becomes popular among every Filipino especially
Davaoeños. Pastil Food House promises to serve the unique, delicious, and
affordable pastil in town, to be offered in various flavors, and offering an appetizing
Camote Delight which everyone will love.

To determine our shortcomings and advantages in serving this business, we

shall further discuss the SWOT Analysis (Strengths, Weaknesses, Opportunities,
and Threats) to maximize our strengths, to mitigate threats and risks.

Strengths ● Pastil is already loved by many, and already popular.

● Located in a commercially active area, we have the
opportunity to serve many people.
● Many variations of flavors are Halal, which everyone can

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 enjoy even our Islam brothers and sisters.

Weaknesses ● The major weakness is the fact that we are new to venturing
in business and starting a new company, the inadequate
financial capacity to compete with other competitors.
● The pastil food business is not entirely new to the market.

Opportunities ● To be situated in a busy place in Davao City, near Victoria

Plaza and directly adjacent to J.P. Laurel Avenue provides us
an opportunity to market to many people.
● New flavors of Pastil can be added in the future.

Threats ● The arrival of new products in the future that would confront
our business especially that would be located near our
location because it is a commercially active area.

Table 1. SWOT Analysis

Customer Benefits
● Satisfaction. It will give the customers satisfaction since the product is known
to be delicious and will be served to a new level.
● Convenience, safety, and comfort. To ensure that the place is comfortable,
safe for our customers, and sanitized consistently in conquering Covid-19.
● Price-friendly. Filipinos deserve a well-served meal at an affordable price to
ensure everyone will enjoy our food every time.

Company Logo

The background of our logo is the bilao which represents the plate where our
product will be served. The word pastil in the logo is written in a cursive approach as

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this pertains to a flowing manner which is a good sign for a business to grow. The
pastil as shown in the logo is directly above the dahong saging which shows the
traditional way of serving pastil, as our product highlights the Filipino culture.

II. Target Market

Overview of the Market: Demand and Supply

Our business differs from any pastil sellers around Mindanao. We make sure
that every ingredient is always fresh and available to avoid supply limitations
resulting in low production. Rice meals are in high demand nowadays simply
because it is essential and correlates to the needs of everyone, especially Filipinos.
People nowadays prefer rice in every meal for its friendly-cost and it can supplement
any viands. The Department of Agriculture (2020), reassures the public that the
country’s rice supply is adequate for the entire year with a comfortable level of
inventory. Therefore, rice supplies are always sufficient for everyone’s needs and
also for food industries. Also, sweet potatoes are present everywhere in the market.
All people can easily buy sweet potatoes even in their nearby neighborhoods. The
factors affecting the profitability of sweet potato production were also evaluated
using multiple regression analysis. Results revealed that sweet potato production is
generally profitable with a high financial return of 144% to farmers, or a net income
of Php 48,400.00 pesos per hectare (Lirag, 2019). Also, sweet potato is a profitable
and resilient crop until now and its supply never fails because it can withstand floods,

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typhoons, and any temperature (Mohanty, 2019). All of the raw products that will be
needed in the business are all in demand and have an excellent level of supply.

Market Evaluation: Market trends

Filipinos prefer products and services that are essential and at the same time
price-friendly especially today. People would go after the good quality and benefits
they received while securing their budget. The Pastil Food House offers a main dish
called “pastil”, a known food product that comprises rice and a viand on top. Rice
meals are part of the needs and wants of every Filipino because we are known as
“rice eaters”. Since rice meals are part of the needs, we look closer to the known
product and offer vanities of pastil products that everyone would like. The taste of the
viands we offer like chicken, beef, fish, squid, crabs, and shrimp create a balance
with rice. According to Arcalas & Ordinario (2017), rich and poor households always
have rice included in their budgets. It is the cheapest source of carbohydrates and is
most compatible with Filipino dishes. Since our target consumers are all levels in our
society, our products will definitely appeal to everyone. Also, most people are fond of
purchasing food that is easy and simple, so we level into the demands of people and
come up with “pastil in a bilao”, camote-delight, and “buko espesyal” as the main
products of the business. The business also makes sure to serve healthy meals and
quality service that our consumers deserve while helping our farmers from afar.

III. Competitors

The competitors are based on the location of the proposed business. The
following are considered the main competitors of Pastil Food House:

Name: Dunkin Donuts

Competitive Product: Baked goods, sandwiches, hot, iced, and frozen beverages.
Location: Near Victoria Plaza, J.P. Laurel Avenue, Davao City, Philippines.
Target Markets: People ages 18 to 54 lead busy lives and tend to live healthy
lifestyles.

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 Strengths Weaknesses

Business ● More than twenty (20) Business ● Lacks variety of foods

years in the food only to coffee and
industry. baked products, which
● Over sixty (60) limits to a small
branches throughout segment of the fast
the Philippines food chain in the
market.

Product ● Their donuts are Product ● Many people are food

known and loved by picky, they will avoid
many with various donuts that contain
kinds and flavors. many additives and
preservatives to
prolong shelf life.

Name: McDonald’s
Competitive Product: Fast foods
Location: Near Victoria Plaza, J.P. Laurel Avenue, Davao City, Philippines.
Target Markets: Children and older people.

Strengths Weaknesses

Business ● Over sixty (60) years Business ● Being a large food

in the food business. company, Mcdonald’s
● Known by people of all also has one of the
age busiest food chains.
● Numerous branches Consequently, there are
around Davao city. disruptions or
disturbance in the

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 supply chain, which
affects the company’s
operations.

Product ● Mcdonald’s french Product ● The new food trends are

fries are considered to arriving in the market.
be the tastiest fries in The experimentation of
the fast-food industry. new food that is new to
the taste.

Name: Jollibee
Competitive Product: Fast foods
Location: Near Victoria Plaza, J.P. Laurel Avenue, Davao City, Philippines.
Target Markets: Students, office workers, and travelers.

Strengths Weaknesses

Business ● A well-known fast-food Business ● Being a large food

restaurant, providing company, Jollibee also
the best customer has one of the busiest
satisfaction. food chains, as a
● Jollibee is known for consequence, there are
its twenty-four-seven disruptions or
(24/7) service, open disturbances in the
all day and will cater supply chain which
to every person. affect the operations of
the company.

Product ● Variety of food on the Product ● Not all people love fast
menu which people of foods, in fear of health

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 all ages can pick. issues such as obesity.
● High-priced and not all
could afford the
products. (Team, M. G.
C., 2020)

IV. Marketing Strategies / Realization of the Proposed Business

Market Segmentation

The following are the target groups for the business Pastil Food House:
1. Staff, employees, and customers of NCCC Victoria Plaza.
2. Residents of the location.
3. Customers through food delivery services (Grab Food, Foodpanda, etc).
4. Other customers (Pass buyers).

Despite today’s change in everyday lifestyle, these groups of customers are

potentially strong for the business. Various customer groups help maintain consistent
business. Since the vicinity of the area is commercially active and is near the
highway and a drop-off zone for public transportation, near a footbridge, and nearby
NCCC Victoria Plaza, numerous people will visit Pastil Food House. Also various
food delivery services are now being offered and our products are proposed to be
catered in such services.
● Staff, Employees, and Customers. There are numerous staff, employees as
well as customers that are from the NCCC Victoria Plaza, with access
crossing the highway through a footbridge, they could easily go to Pastil Food
House.
● Residents. Located close to residential areas. Therefore, whether it is not yet
break time for the staff and employees, there will still be other available
markets.
● Food delivery services customers. Due to the limited transportation and
other restrictions, people switch to online food delivery services, for ease, and

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 convenience, as well as safety. Anytime, the Pastil Food House is open and
serving, we will cater foods for delivery via FoodPanda and Grab.
● Other customers. There are a lot of people passing by J.P. Laurel Avenue,
Davao City especially as it is a commercially active area and is near NCCC
Victoria Plaza, and near a drop-off area for public utility vehicles. Therefore,
many potential customers will be passing through the business location.

Promotion Strategy
Almost every business has their own season’s promo, as it helps promote the
business against its competitors. Pastil Food House currently will have (3) seasonal
promos (Christmas Season Promo, Valentine’s Day, and Pastil Food House
Anniversary Promo).

Poster

Posters will be placed strategically in various places of the City, as it will help
advertise and promote our business. Important details such as the location,
Facebook page, Instagram, business hours, and contact information are provided.

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Social Media
Many people now have their own social media accounts, such as Facebook
and Instagram. It is a great opportunity to advertise and invite everyone through
these platforms. Pastil Food House would like to keep in touch with the people who
would like to communicate with us with their queries, orders, reservations and the
like.

● Pastil Food House Facebook Page

➢ Being the number one social media site, Facebook has countless
numbers of users. The Facebook page of Pastil Food House will allow
customers to browse through the pieces of information about the
company, ask queries as well as leave reviews about the food and
services offered.

● Instagram
➢ We also have an Instagram account, just follow us at
@PastilFoodHouse. Aside from Facebook, keeping in touch with us on
Instagram provides news up to date about our products, as well as
promos, features, etc.

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Product Range

Being located near a highway, and near NCCC Victoria Plaza, we are
expecting to cater most customers that are staff or employees and shoppers from
the mall. People who have access to the delivery service apps specifically
Foodpanda and Grab should be able to order our products but within the vicinity that
is applicable.

Product Details

We highlight our product pastil with various flavors such as fish, chicken, beef,
shrimp, squid, and crabs. We also have 2 different flavors offered for free which are
chili garlic sauce and sweet and spicy alamang. We make sure to serve our
customers with halal foods because pastil was originally made and for the Muslim
people. Also, to ensure that all people would enjoy our foods. There are different
servings in different sizes of bilao. Rice is known as essential for every Filipino’s
meal, serves as the fuel for our body as it is rich in calories and carbohydrates paired
with a tasty topping “kagikit’ makes up the pastil, with a dessert offering the Camote

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Delight which balance the salty pastil taste with its sweet flavor that is also healthy
because Sweet Potatoes are great source of vitamins, fibers, and minerals.
Together, both products are a must to try for having a full meal, yet a healthy one.

Figure 5. Pastil Food House Menu

Figure 6. Sizes of Pastil in Bilao

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Pricing Strategy

Cost-plus pricing or markup pricing strategy shall be used. It is a common

method where a fixed percentage is added to the production cost for each unit of the
product. This is commonly used by retail stores like us because we are directly
offering our products to our customers.

Distribution Strategy

An important factor in delivering our product offering to our customers all the
way from the production. Pastil Food House shall maintain the quality of the product
through sustaining the freshness of the ingredients and the proper hygiene and
production. To ensure the freshness of rice, meat, camote and coconut. We offer our
products dine-in, for takeout, and we envisioned to cater customers through food
delivery services (Foodpanda, Grab, etc). Currently, we are not offering our very own
delivery services.

V. Location/ Production

The proposed business Pastil Food House will be located in NCCC Choice
Mart Building, Daang Maharlika Highway, J.P. Laurel Avenue, Davao City, near
Victoria Plaza. The business operating hours are from Monday to Saturday, 10am to
8pm only. We consider a specific time frame to cater breakfast, lunch, and dinner for
our valued customers. Also, we consider an excellent location where many people
are passing through. Since it is also situated near the footbridge from and to Victoria
Plaza, and near a drop-off zone for public transportation, people will see the store.
The size of the rentable space of the NCCC Choice Mart building is five (5)
meter by ten (10) meter, a fifty (50) square meter floor area; one-third of the floor
area which is sixteen (16) square meter is allocated for the service and staff facilities
such as kitchen, storage, counter, and toilet. The remaining thirty four (34) square
meters is to be occupied by the dining area. The rent for the space is forty thousand
pesos (P40,000.00). According to the National Building Code of the Philippines
(NBCP), and Fire Code of the Philippines (RA 9514), commercial establishments

14
such as restaurants should accommodate an occupant load of 2.8 sqm/person.
Therefore with the 34 square meters for dining area, we can accommodate twelve
(12) persons.
In producing the products, in-house production shall be employed wherein the
members are responsible for the preparation of the products and other aspects of
the business.

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 Figure 10. Interior Inspiration of Pastil Food House

Figure 11. Exterior Perspective of Pastil Food House

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Figure 12. Exterior Perspective of Pastil Food House

Figure 13. Interior Perspective of Pastil Food House

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Figure 14. Floor Plan

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VI. Management

Figure 15. Pastil Food House Staff

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Position Information
Position: Head Cook
Salary: 9,120
Neil Joshua Acedillo is in control and directing the food preparation and
process and any other relative activities in the kitchen. He is in constructing
menus with new or existing creations ensuring the variety and quality of the
serving. He is also responsible for approving and polishing dishes before
serving them to the customer.

Position: Assistant Cook

Salary: 9,120
Jane Tan is in charge of helping Neil Joshua, our head cook, prepare
meals and other kitchen tools. She is also in charge of ensuring healthful
foods are available in the kitchen. Also, buying and ordering the necessary
ingredients for upcoming meal services is her responsibility.

Position: Cashier
Salary: 9,120
Cheery Joy Escrin is responsible for customer service and is also
responsible for operating the cash register to what customers purchase. Also,
she is responsible for receiving calls from customer's inquiry helping them
with any questions they may have.

Position: Waitresses
Salary: 9,120
Tricia Ching and Realyn Telewik are responsible for greeting customers
and taking their orders. They are also in charge of delivering food from the
kitchen to the guest and ensuring that the food ordered by the customers is
correct by kitchen staff and looks presentable for customers.

Position: Security Guard

Salary: 9,120
Pastil Food House will hire another person in charge of the security
inside the business. As he also will be in charge of the sanitation, and the

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 scanning of QR codes, as it is required on the premises as stated by the LGU
of Davao City.

VII. Technical Aspect of the Business

Product Description

Pastil is a Filipino packed rice dish made steamed rice wrapped in banana
leaves with dry shredded beef, chicken, and fish. All procedures are true to every
flavor since we only consider chicken flavor as our representative in the technical
process of pastil.

Ingredients:
500 Grams chicken breast
1/4 Cup dark soy sauce
3 Tablespoons oyster sauce
1 Teaspoon white sugar
3 Cloves garlic, minced
1 Onion, chopped
A pinch ground black pepper
1 Tablespoon cooking oil
20 Pieces banana leaves, cut into semi-rectangular shape
10 Cups cooked white rice
4 Different Sizes of Bilao

Procedures:
Part 1
1. In a pot, boil chicken breast for 20 minutes or until tender. Reserve 1 cup broth.
2. Shred chicken breast into small strips. Set aside.

Part 2
1. In a wok, heat oil then saute garlic and onion.
2. Add shredded chicken then stir cook for a minute.

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3. Pour chicken broth, dark soy sauce and oyster sauce.
4. Season with sugar and ground black pepper according to taste then simmer until
liquid evaporates. Turn off the heat.

Part 3
1. Singe each banana leaf into flames for a few seconds but do not burn. Let it cool
then wipe with clean cloth.
2. Place the banana leaf on a clean table then brush a little oil.
3. Scoop a half cup of rice and 1 tablespoon chicken filling then wrap neatly.
Serve.neatly and serve.

PART I
STEP 1 STEP 2

PART II
STEP 1 STEP 2

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 STEP 3 STEP 4

STEP 5 STEP 6

PART III
STEP 1

23
 STEP 2

STEP 3

Camote Delight
Camote delight is a Filipino special desert food that is very tasty, sweet, and
easy to make. It is a sweet potato that is mixed with simple ingredients like all
purpose cream, condensed milk, butter/ margarine, salt, and nips/springles.

Ingredients:
1 kg. Sweet potatoes (kamote)
1 big can (390g) Condensed milk
1 pack (250ml) all purpose cream
3 tbsp. butter (or margarine)
1 tsp. vanilla extract (It depends on your choice)
A pinch of salt
Cheese for topping/nips/ sprinkles

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Procedures:
STEP 1
Peel and chop sweet potatoes. Steam until soft (you can also boil it and peel). Once
soft, mash it until smooth. Set aside.

STEP 2
In a pan, melt the butter. Use low-medium heat. After melting, add the all purpose
cream and condensed milk. Stir and mix well. Cook and low heat until the
consistency becomes thicker.

STEP 3
Once thickened, add salt and vanilla extract. Stir and mix well. Then, reserve around
1/2 cup for topping (this is optional). Then stir in the mashed sweet potatoes. Mix
and stir until well-blended. Cook until the sauce dries up. Continue stirring to prevent
the bottom from sticking and burning.

STEP 4
Once cooked, transfer to a tray greased with oil or butter. Flatten and smoother the
top. Let it cool.

STEP 5
Once cooled down, add the reserved sauce and desired toppings (I used grated
cheese). You may also chill it.

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VIII. Cost of Production and Pricing Strategies
The estimated weekly and monthly sales of Pastil Food House is reflected in
the table below.

Table 2. Weekly and Monthly Sales

Product Weekly Sales Monthly Sales

Pastil (Chicken) 300 1,200

Pastil (Squid) 150 600

Pastil (Tuna) 225 900

Pastil (Beef) 225 900

Pastil (Shrimp) 75 300

Pastil (Crab) 75 300

Buko 250 1,000

Coke (12 oz) 170 680

Sprite (12 oz) 150 600

Sparkle (12 oz) 120 480

Plain rice 42 168

Garlic rice 28 112

Camote Delight 175 700

Pastil in bilao (small) 90 360

Pastil in bilao (medium) 70 280

Pastil in bilao (large) 55 220

Pastil in bilao (party-size) 35 140

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 Tables 3.1 to 3.5 shows the details of the cost of each unit of the product that
Pastil Food House offers and its corresponding selling price.

Table 3.1 Cost and Selling Price of Single Pastil

Cost and Selling Price per Unit of Pastil (in Peso)

Chicken Squid Tuna Beef Shrimp Crab

Variable cost

500 grams of indicated 17.00

4.25 7.00 5.50 8.85 8.75
topping

Banana leaves 1.00 1.00 1.00 1.00 1.00 1.00

10 cups of white rice 5.00 5.00 5.00 5.00 5.00 5.00

1/4 cup dark soy sauce 0.21 0.21 0.21 0.21 0.21 0.21

3 tablespoons oyster sauce 0.49 0.49 0.49 0.49 0.49 0.49

1 teaspoon white sugar 0.01 0.01 0.01 0.01 0.01 0.01

3 cloves garlic, minced 0.19 0.19 0.19 0.19 0.19 0.19

1 onion, chopped 1.10 1.10 1.10 1.10 1.10 1.10

0.5 gram of ground black

0.01 0.01 0.01 0.01 0.01 0.01
pepper

1 tablespoon cooking oil 0.07 0.07 0.07 0.07 0.07 0.07

Total variable cost 12.33 15.08 13.58 16.93 16.83 25.08

Fixed cost 9.63 9.63 9.63 9.63 9.63 9.63

Total cost 21.96 24.71 23.21 26.56 26.46 34.71

Add: 40% mark-up (Profit) 8.79 9.89 9.29 10.63 10.59 13.89

Selling price 30.75 34.60 32.50 37.19 37.05 48.60

Adjusted selling price 30.00 35.00 35.00 40.00 40.00 50.00

Adjusted profit 8.04 10.29 11.79 13.44 13.54 15.29

*The indicated ingredients/materials can make 20 pieces of pastil. Costing was
divided by 20 to get the per unit cost.
**Prices are adjusted to make prices end at 0, 5, or 9 which is another pricing
technique deemed attractive to buyers.

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Table 3.2 Cost and Selling Price of the Beverages

Cost and Selling Price per Unit of the Beverages (in Peso)

Buko Coke Sprite Sparkle

Variable cost 25.00 10.42 10.42 10.42

Add: 100% mark-up (Profit) 25.00 10.42 10.42 10.42

Selling price 50.00 20.84 20.84 20.84

Adjusted selling price 50.00 20.00 20.00 20.00

Adjusted profit 25.00 9.58 9.58 9.58

*Fixed costs are not added in the beverages. Instead, it will have 100% mark-up.
** Prices are adjusted to make prices end at 0, 5, or 9 which is another pricing
technique deemed attractive to buyers.

Table 3.3 Cost and Selling Price of the Add-ons

Cost and Selling Price per Unit of Add-ons (in Peso)

Plain rice Garlic rice

Variable cost

White rice 5.00 5.00

Garlic - 0.20

Cooking oil - 0.07

Total variable cost 5.00 5.27

Fixed cost 9.63 9.63

Total cost 14.63 14.90

Add: Profit 0.37 5.10

Selling price 15.00 20.00

*Mark-up pricing is not used. The selling price is based on competitor’s common
pricing.

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Table 3.4 Cost and Selling Price of Camote Delight

Cost and Selling Price per Unit of Camote Delight (in Peso)

Camote Delight

Variable cost

4 kg camote 3.43

2 nestle cream 3.17

1/8 cup margarine 5.28

1 1/2 condensed milk 1.32

1/8 cup butter 8.80

5 packs of Nips 25.00

Packaging 8.45

Total variable cost 55.45

Fixed cost 9.63

Total cost 65.08

Add: 40% mark-up (Profit) 26.03

Selling price 91.11

Adjusted selling price 90.00

Adjusted profit 24.92

*The indicated ingredients/materials can make 35 slices of camote delight. Costing
was divided by 35 to get the per unit cost.
** Prices are adjusted to make prices end at 0, 5, or 9 which is another pricing
technique deemed attractive to buyers.

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Table 3.5 Cost and Selling Price of Pastil in Bilao

Cost and Selling Price per Unit of Pastil in Bilao (in Peso)

Small Medium Large Party size

Variable cost

Pastil 49.92 166.40 249.60 332.80

Eggs 4.50 13.50 22.50 31.50

Eggplants 10.00 30.00 50.00 70.00

Okra 5.25 12.25 19.25 26.25

Kangkong 6.25 12.50 18.75 25.00

Cucumber 5.00 10.00 15.00 20.00

Watermelon 2.25 5.25 9.00 13.50

Alamang 3.00 6.00 9.00 12.00

Bilao 52.00 56.00 60.00 65.00

Total variable cost 138.17 311.90 453.10 596.05

Fixed cost 9.63 9.63 9.63 9.63

Total cost 147.80 321.53 462.73 605.68

Add: 40% mark-up (Profit) 59.12 128.61 185.09 242.27

Selling price 206.92 450.14 647.82 847.95

Adjusted selling price 209.00 449.00 649.00 849.00

Adjusted profit 61.20 127.47 186.27 243.32

*Amount of serving of each component of Pastil in Bilao varies according to size.
**Pastil pricing is the average price of all Pastil with different toppings. Through this,
customers are allowed to choose whichever toppings of Pastil they want for their
order.
*** Prices are adjusted to make prices end at 0, 5, or 9 which is another pricing
technique deemed attractive to buyers.

30
 Table 4 shows the cost of each unit of product, mark-up rate, selling price,
expected profit per unit of product, expected sales or demand for each, and the
expected total gross profit.

Table 4. Cost of Goods Sold , Selling Price, and Expected Gross Profit

Cost of Expected Expected Total

Mark-up Selling
Product Goods profit Sales Gross Profit
rate Price
Sold (per unit) (monthly)

Pastil (Chicken) 21.96 40% 30 8.04 1,200 9,648.00

Pastil (Squid) 24.71 40% 35 10.29 600 6,174.00

Pastil (Tuna) 23.21 40% 35 11.79 900 10,611.00

Pastil (Beef) 26.56 40% 40 13.44 900 12,096.00

Pastil (Shrimp) 26.46 40% 40 13.54 300 4,062.00

Pastil (Crab) 34.71 40% 50 15.29 300 4,587.00

Buko 25.00 100% 50 25.00 1,000 25,000.00

Coke (12 oz) 10.42 100% 20 9.58 680 6,514.40

Sprite (12 oz) 10.42 100% 20 9.58 600 5,748.00

Sparkle (12 oz) 10.42 100% 20 9.58 480 4,598.40

Plain rice* 14.63 - 15 0.37 168 62.16

Garlic rice* 14.90 - 20 5.10 112 571.20

Camote Delight 65.08 40% 90 24.92 700 17,444.00

Pastil in bilao
147.80 40% 209 61.20 360 22,032.00
(small)

Pastil in bilao
321.53 40% 449 127.47 280 35,691.60
(medium)

Pastil in bilao
462.73 40% 649 186.27 220 40,979.40
(large)

Pastil in bilao
605.68 40% 849 243.32 140 34,064.80
(party-size)

TOTAL Php 239,883.96

*The selling price of the plain and garlic rice is based on competitor’s pricing.

31
 Table 5 shows the inventories and other supplies needed by the business. It is
assumed that the chicken, beef, tuna, squid rings, shrimp, crab, onions, garlic, sweet
potato, eggplants, okra, kangkong, cucumber, watermelon, and buko will be
replenished weekly. The eggs, alamang, chili garlic sauce, sweet and spicy alamang,
Coke, Sprite, Sparkle, water, and gas will be replenished every 2 weeks while the
rest will be monthly.

Table 5. Inventories and Other Supplies

INVENTORIES

Price
Unit Quantity Total (Monthly)
(in Peso)

Rice 1 sack = 50kg 2,500 29 72,500.00

Chicken 500 grams 85 200 17,000.00

Beef 500 grams 177 150 26,550.00

Tuna 1 kg 220 150 33,000.00

Squid rings 500 grams 140 100 14,000.00

Shrimp 1 kg 350 55 19,250.00

Crab 1 kg (4-5 pcs) 680 55 37,400.00

Onions ½ kg 110 142 15,620.00

Garlic ½ kg 130 22 2,860.00

Iodized Salt 500 grams 28 2 56.00

Ground Black
75 grams 39 5 195.00
Pepper

White Sugar 1 kg 57 3 171.00

Soy Sauce 1 gallon 205 15 3,075.00

Oyster Sauce 405 grams 68.5 102 6,987.00

Vegetable Oil 2 liters 189.5 6 1,137.00

Sweet Potato 1 kg 30 80 2,400.00

32
Condensed Milk 300 ml 30.75 30 922.50

Nestle All
250 ml 55.5 40 2,220.00
Purpose Cream

Butter 100 grams 55 4 220.00

Margarine 250 grams 82.5 2 165.00

12 packs
Nips 60 9 540.00
(14 grams/pack)

Eggs 1 tray = 30 eggs 135 110 14,850.00

Eggplants 1 kg 40 820 32,800.00

Okra 1 kg 35 378 13,230.00

Kangkong 1 kg 25 535 13,375.00

Cucumber 1 kg 20 535 10,700.00

Watermelon 1 kg 15 410 6,150.00

Alamang 250 grams 150 43 6,450.00

Chili Garlic
120 grams 50 90 4,500.00
Sauce

Sweet and Spicy

200 grams 84 55 4,620.00
Alamang

Buko 1 piece 25 250 6,250.00

1 case = 24
Coke (12 oz) 250 8 2,000.00
bottles

1 case = 24
Sprite (12 oz) 250 7 1,750.00
bottles

1 case = 24
Sparkle (12 oz) 250 5 1,250.00
bottles

Bilao (12 inches) pcs 52 310 16,120.00

Bilao (16 inches) pcs 56 240 13,440.00

Bilao (18 inches) pcs 60 190 11,400.00

33
Bilao (22 inches) pcs 65 125 8,125.00

1 bundle = 10
Banana Leaves 80 190 15,200.00
leaves

20 pcs
Packaging (box) 169 35 5,915.00
(5x6.75x1.5)

Total Inventories 444,393.50

OTHER SUPPLIES

Straws 1 pack = 100 pcs 19.75 27 533.25

1 pack = 350
Tissue 100 2 200.00
sheets

Liquid hand soap 500 ml 70 4 280.00

Dishwashing
600 ml 156.75 1 156.75
Liquid

Toilet Papers 12 rolls 160 1 160.00

Hair net 12 pcs 50 6 300.00

Plastic Gloves 50 pairs 15 2 30.00

Water 1 gallon 25 30 750.00

Gas 772.5 2 1,545.00

Total Other Supplies 3,955

TOTAL INVENTORIES AND OTHER SUPPLIES Php 448,348.50

34
 Table 6 shows the fixed costs included in the cost of each unit of product. This
will be added to all the products offered except the beverages (buko, Coke, Sprite,
and Sparkle).

Table 6. Fixed Costs

Monthly Sales Cost per Product

Supplies 3,955 6,180 0.64

Depreciation expense 867.08 6,180 0.14

Salaries expense 54,720 6,180 8.85

TOTAL Php 9.63

Table 7 shows the equipment needed and the monthly and yearly depreciation
of each.

Table 7. Equipments with the Monthly and Yearly Depreciation Expense

Useful Life Depreciation Depreciation

Cost
(in years) (in months) (Monthly) (yearly)

Stove 1,299 15 180 7.22 86.60

Rice Cooker 2,999 5 60 49.98 599.80

Refrigerator 9,398 15 180 52.21 626.53

Freezer 12,895 15 180 71.64 859.67

Cookware Set 1,125 5 60 18.75 225.00

Water
1,099 5 60 18.32 219.80
dispenser

Water bottle 180 5 60 3.00 36.00

Cutlery 808 5 60 13.47 161.60

Drinking glass 1,000 5 60 16.67 200.00

Aircon 19,995 5 60 333.25 3999.00

Fire
1,800 2 24 75.00 900.00
Extinguisher

35
 Garbage bin 690 5 60 11.50 138.00

Tables and
19,600 10 120 163.33 1960.00
chairs

Tissue Box 1,400 5 60 23.33 280.00

Calculator 150 10 120 1.25 15.00

Apron 196 2 24 8.17 98.00

TOTAL 74,634 867.08 10,405.00

Table 8 shows the employees of the business and their monthly salaries.

Table 8. Salaries Expense

Employee Monthly Salary

Head Cook 9,120

Assistant Cook 9,120

Cashier 9,120

Waitress 1 9,120

Waitress 2 9,120

Security Guard 9,120

TOTAL Php 54,720

Table 9 shows the monthly rent expense and the estimated monthly utilities
expense (electricity and water).

Table 9. Rent and Utilities Expense

Total per Month

Rent Expense 40,000

Utilities Expense (Electricity) 10,000

Utilities Expense (Water) 2,000

TOTAL Php 52,000

36
 Table 10 shows the allocated budget for the leasehold improvements or the
renovation.

Table 10. Leasehold Improvements

Cost

Leasehold Improvements Php 2,000,000

Table 11 shows the details of the miscellaneous expense.

Table 11. Miscellaneous Expense

Cost

Logo, signage and posters 3,000

Business Permit 5,000

Spray bottles 245

Cleaning rags 149

Mop and broom with dustpan 219

Toilet bowl brush 75.60

Toilet cleaner 120

TOTAL Php 8,808.60

37
 Table 12 shows the total project cost needed for the commencement of Pastil
Food House.

Table 12. Project Cost

CAPITAL EXPENDITURE

Leasehold Improvements 2,000,000

Equipments 74,634

Miscellaneous Expense 8,808.60 2,083,442.60

FIRST MONTH

Inventory and other supplies 448,348.50

Utilities Expense 144,000

Rent Expense 40,000

Salaries Expense 54,720 687,068.50

TOTAL PROJECT COST Php 2,770,511.10

38
IX. Financial Projections (3 years)
The following annual increase will be assumed: gross sales - 5%, cost of
goods sold - 5%, salaries expense - 6%, utilities expense - 2%, and rent expense -
5%. The depreciation expense will be constant.

Pastil Food House

J.P. Laurel Avenue, Davao City

INCOME STATEMENT

For the years ended December 31, 2022-2024

2022 2023 2024

Gross Sales 9,204,720.00 9,664,956.00 10,148,203.80

Less: Cost of Goods

6,326,112.48 6,642,418.10 6,974,539.01
Sold

Gross Profit 2,878,607.52 3,022,537.90 3,173,664.79

Expenses

Salaries expense 656,640.00 696,038.40 737,800.70

Utilities expense 144,000.00 151,200.00 158,760.00

Rent expense 480,000.00 489,600.00 499,392.00

Depreciation
10,405.00 10,405.00 10,405.00
expense

Total expenses 1,291,045.00 1,347,243.40 1,406,357.70

Net Income Php 1,587,562.52 Php 1,675,294.50 Php 1,767,307.09

39
 X. Action Plan

Pastil Food house

NCCC Choice Mart Bldg., J.P. Laurel Ave., Davao City
(123) 456 7890
Email: [email protected]
Facebook: Pastil Food House
Instagram: @pastilfoodhouse

Success
Objectives Tasks Time Frame Resources
Criteria

To determine the Provide surveys for Feasibility September 2021 Survey forms /
feasibility of the people in the city Google survey
proposed product/ especially within the questionnaires
business. vicinity of the
business.

To check the Layouting, cleaning, Completion January 2022 Manpower,

physical store and and other work. according to the construction
finalize the design plans. materials
and renovation.

To ensure the To buy and prepare Standards of January 2022 Manpower,

quality standard of the products and taste and quality ingredients
the proposed taste according to are attained.
products. the recipes.

To increase total Reaching bigger Higher revenue December 2024 Financial

annual sales by market through compared to resources,
more than 5% television, radio, and previous years Marketing
newspaper advertisement
advertising materials
(videos, posters,
etc.)

40
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