POLYTECHNIC UNIVERSITY OF THE PHILIPPINESTaguig Campus General Santos Avenue, Upper Bicutan Taguig City A Feasibility Study on “KALYE OCHO” A Feasibility Study on Street Food Kiosk In Partial Fulfilment of the Requirements of Bachelor in Business Administration Major in Marketing Management Presented to the Panelist of Oral Defense Submitted to: Professor Aldrin P. Antivola Submitted by: ACABO, Alfie J. ALMONTERO, Rachel Ann G. JUATCO, Jerald Angelo M. RICOHERMOSO, Mera Vernadeth P. VILLANUEVA, Loveleen A. November 2010 FEASIBILITY STUDIES – KALYE OCHO Republic of the Philippines Polytechnic University of the Philippines Taguig Campus Gen. Santos Ave., Bicutan, Taguig City Tel. No.: 837-5858 Endorsement Sheet This feasibility study of Ms. Mera Vernadeth P. Ricohermoso, Ms. Loveleen A. Villanueva, Ms. Rachel Ann G. Almontero, Mr. Alfie J. Acabo and Mr. Jerald Angelo M. Juatco entitled “„KALYE OCHO‟ A Feasibility Study on Street Food Kiosk” submitted in partial fulfilment of the requirements for Degree in Bachelor in Business Administration is hereby endorsed for oral defense. ________________________ PROF. ALDRIN P. ANTIVOLA Approval Sheet Accepted and endorsed after having passed the oral defense satisfactory as indicated in the corresponding rating form by the undersigned. ______________________ PROF. JONATHAN MARQUEZ ______________________ MR. SYED AMED Approved and accepted in the partial fulfilment of the requirements for the Degree of Bachelor in Business Administration, September 2010. _______________________ DIR. AMELITA A. LAURENTE PUP Taguig Campus Directress Polytechnic University of the Philippines ii FEASIBILITY STUDIES – KALYE OCHO ACKNOWLEDGEMENT First of all, we would like to express our deepest gratitude to our Professor Aldrin P. Antivola for giving us opportunity to make this study as part of our endless search for knowledge. Great thanks to our parents for all the love and support in doing this study. They made us successful by helping us in a big way for providing financial support, accommodation, and especially the strength and inspiration in accomplishment of everything we do. We want to acknowledge as well as all our respondents who spent some time and effort in cooperating for answering our questionnaires and to all the employees of Parañaque Municipal Hall, SEC, SSS, and DTI and other people who provide some assistance and information that we need in the study. We would also like to thank everyone who helped us even in a small way particularly our friends and classmates contributing to the success of this project. And above all, this study won’t be possible without the guidance and inspiration given by our Almighty God. Polytechnic University of the Philippines iii FEASIBILITY STUDIES – KALYE OCHO TABLE OF CONTENTS Title Page...................................................................................................................................i Endorsement/ Approval Sheet ...............................................................................................ii Acknowledgement..................................................................................................................iii Table of Contents ...................................................................................................................iv List of Tables ..........................................................................................................................x List of Figures.........................................................................................................................xii Introduction............................................................................................................................xiv Kalye Ocho Logo....................................................................................................................xv I. Executive Summary 1 A. Name of the Business 1 B. Title of the Study 1 C. Store Location 1 D. Description of the Logo 2 E. Brief Description of the Project 3 F. General Objectives of the Business 3 G. Research and Methodology 4 G.1. Survey 4 G.2. Sloven‟s Formula 4 G.3. Sampling Techniques 5 G.4.Survey Questionnaire 5 G.5. Interview 5 G.6. Research 5 G.7. Mapping 6 G.8. Search of Internet, Books, and Libraries 7 H. Project Summary 9 H.1. Market Summary 9 H.2. Technical Summary 9 H.3. Management Summary 9 H.4. Financial Summary 10 Polytechnic University of the Philippines iv FEASIBILITY STUDIES – KALYE OCHO II. I. Operational Terms 10 J. Scope and Limitation 11 Market Study 12 Introduction 12 Objectives 12 A. Demand 13 A.1. Past Demand 13 A.1.1. For the Industry 13 A.1.2. For Every Products 14 A.2. Projected Demand 15 A.2.1. For the Industry 15 A.2.2. For Every Products 15 A.3. Market Segmentation B. Supply B.1. Past Supply 16 17 17 B.1.1. For the Industry 17 B.1.2. For Every Products 17 B.2. Projected Supply 18 B.2.1. For the Industry 18 B.2.2. For the Products 19 B.3. Competitors Analysis 20 C. Demand Supply Gap Analysis 21 D. Market Share Analysis 23 D.1. Projected Sales 25 E. Marketing Strategies 26 E.1. Product Strategies 26 E.2. Place Strategies 26 E.3. Pricing Strategies 26 E.4. Promotion 27 E.4.1. Poster 27 E.4.2. Website 28 E.4.3. Flyers 29 Polytechnic University of the Philippines v FEASIBILITY STUDIES – KALYE OCHO E.4.4. Gift Certificates III. 30 F. SWOT Analysis 30 Technical Study 31 Introduction 31 Objectives 32 A. Product Description 32 A.1. Product Pricing 34 A.2. Product Preparation Guide 35 A.2.1. Streetfoods 35 A.2.2. Drinks 43 A.2.3. Desserts 46 A.3. Time Motion Study 50 B. Business Process 50 C. Business Location 50 D.1. Vicinity Map 50 D.2. Floor Plan 51 D. Machineries and Equipment 53 E. Utensils 58 F. Furniture and Fixtures 64 G. Supplies 65 G.1. Office Supplies 65 G.2. Sanitary Supplies 67 H. Store Uniforms 71 I. Utilities Requirements 73 I.1. Electricity 73 I.2. Water Supply 73 I.3. Telecommunications 73 I.4. LPG 73 J. Waste Disposal Method 74 K. Direct Labor Requirements 74 K.1. Work Schedule Polytechnic University of the Philippines 75 vi FEASIBILITY STUDIES – KALYE OCHO IV. Management Study 76 Introduction 76 Objectives 76 A. Form of Ownership 76 B. Mission, Vision, Core Values 77 B.1. Vision 77 B.2. Mission 77 B.3. Core Values 77 C. Capitalization 78 D. Organizational Chart 78 E. Manpower Requirements 79 F. Employment Process 82 G. Legal Requirements 83 G.1. Municipality of Parañaque 83 G.2. BIR 83 G.3. SSS 83 G.4. DTI 83 G.5. SEC 83 G.6. FDA 83 H. Organizational Policies and Procedures 84 H.1. Employment 84 H.2. Classification of Employees 85 H.2.1. According to Rank 85 H.2.2. According to Status 85 H.3. Orientation 85 H.4. Personnel Records 86 H.5. Contracts of Employment 86 H.6. Work Schedule 86 H.7. Tune Keeping 86 H.8. Attendance and Punctuality 87 H.8.1. Attendance 87 H.8.2. Punctuality 88 Polytechnic University of the Philippines vii FEASIBILITY STUDIES – KALYE OCHO H.9. Personnel Movement and Performance Evaluation 88 H.10. Separation from Service 88 H.10.1. Voluntary Resignation 88 H.10.2. Termination 89 H.11. Compensation and Benefits 89 H.11.1. Salaries and Wages 89 H.11.2. Overtime Pay 89 H.11.3. Cancelled Day-off/ Holiday Pay 89 H.11.4. 13th Month Pay 90 H.11.5. Paternity and Maternity Leave 90 H.11.6. SSS/PHIC/HDMF Benefits 90 H.11.7. Hospitalization Plan 90 H.11.8. Accident Insurance 91 H.11.9. Retirement Benefits 91 H.11.10. Bereavement Assistance 91 H.11.11. Other Incentives and Awards 91 I. Code of Ethics I.1. Hygiene and Sanitation 91 I.2. Arrival and Departure of Employees 92 I.3. Procedure for Notices/Bulletin Boards 92 I.4. Notice of Disciplinary Action 92 I.5. Code of Conduct 92 I.5.1. Kinds of Penalties V. 91 92 H. Project Schedule Gantt Chart 94 Financial Study 95 Introduction 95 Objectives 95 Major Assumptions 96 Income Statement 97 Statement of Cash Flow 98 Balance Sheet 99 Statement of Changes in Partner‟s Equity 100 Polytechnic University of the Philippines viii FEASIBILITY STUDIES – KALYE OCHO VI. Financial Analysis 101 Economic Evaluation 105 Socio – Economic Study 106 Introduction 106 Objectives 106 A. Socio-Economic Contributions 106 A.1. Contribution to the Philippine Economy 106 A.2. Employment Generation 106 A.3. Environment Conservation 107 Appendices 108 Kalye Ocho Survey and Evaluation Sheet 108 Tally of Questionnaire 112 Other Tables 128 Recommendations 136 Findings 137 Bibliography Polytechnic University of the Philippines ix FEASIBILITY STUDIES – KALYE OCHO LIST OF TABLES TABLE PAGE 1 Past Demand for the Industry 13 2 Past Demand for the Products 14 3 Projected Demand for the Industry 15 4 Projected Demand for the Products 15 5 Past Supply for the Industry 17 6 Past Supply for the Products 17 7 Projected Supply for the Industry 19 8 Projected Supply for the Products 19 9 Competitors Products Analysis 21 10 Demand Supply Gap Analysis 22 11 Market Shares of Kalye Ocho 24 12 Projected Market Share 25 13 Projected Sales 25 14 Work Schedule 75 15 Offenses for the Workers 93 16 Customer‟s Profile 112 17 Respondent‟s Ages 113 18 Question #1 Statistics 114 19 Question #2 Statistics 115 20 Question #3 Statistics 116 21 Question #4 Statistics 117 22 Question #5 Statistics 118 23 Question #6 Statistics 119 24 Question #7 Statistics 120 25 Question #8 Statistics 121 Appendices Polytechnic University of the Philippines x FEASIBILITY STUDIES – KALYE OCHO 26 Question #9 Statistics 122 27 Question #10 Statistics 123 28 Question #11 Statistics 124 29 Question #12 Statistics 125 30 Question #13 Statistics 126 31 Question #14 Statistics 127 Polytechnic University of the Philippines xi FEASIBILITY STUDIES – KALYE OCHO LIST OF FIGURES FIGURE PAGE 1 Location of the Business 1 2 Location of the Business in the Establishment 2 3 Business Logo 2 4 Parañaque City Map 6 5 Breakdown of Markets 25 6 Kalye Ocho Poster 27 7 Kalye Ocho Unofficial Website 28 8 Kalye Ocho Flyer 29 9 Our Products 33 10 Adidas 35 11 Balut 36 12 Calamares 37 13 Chicken Skin 38 14 Fishball 39 15 Isaw 40 16 Kwek-kwek 41 17 Pork Barbeque 42 18 Iced Tea 43 19 Pineapple Juice 44 20 Sago‟t Gulaman 45 21 Halo-halo 46 22 Mais Con Yalo 47 23 Saging Con Yelo 48 24 Sorbetes 49 25 Vicinity of Paranaque 50 26 Floor Plan Measurements 51 27 Floor Plan Details 52 Polytechnic University of the Philippines xii FEASIBILITY STUDIES – KALYE OCHO 28 Uniforms for Male Crews 71 29 Uniforms for Female Crews 71 30 Uniforms for Male Store Managers 72 31 Uniforms for Female Store Managers 72 32 Organizational Chart 78 33 GANNT Chart 94 34 Question #1 Graph 114 35 Question #2 Graph 115 36 Question #3 Graph 116 37 Question #4 Graph 117 38 Question #5 Graph 118 39 Question #6 Graph 119 40 Question #7 Graph 120 41 Question #8 Graph 121 42 Question #9 Graph 122 43 Question #10 Graph 123 44 Question #11 Graph 124 45 Question #12 Graph 46 Question #13 Graph Appendices Polytechnic University of the Philippines ` 125 126 xiii FEASIBILITY STUDIES – KALYE OCHO INTRODUCTION The growing street food sector in low-income countries offers easy access to inexpensive food as well as new job opportunities for urban residents. While this development is positive in many ways, it also presents new public health challenges for the urban population. Safe food hygiene is difficult to practice at street in settings where resources are scarce and surroundings are of low environmental and sanitary standards. Diarrheal diseases due to contaminated and unhygienic food are among the leading causes of illness and deaths in low-income countries and several outbreaks of disease have been attributed to the consumption of street food. Teenagers today are fond of trying new dishes regardless of knowing its safety and its content. Being so adventurous leads them to be unconscious on the foods they eat and the place where they buy it. Street foods are known because of its affordability and enchanting taste. However, because of unsafe practices such as inadequate storage, reheating of food before sale insufficient hand washing and inappropriate cleaning of cooking utensils, these foods become hazardous to our health. In accordance to this matter, the proponents of Kalye Ocho decided to come up with the idea of catering Filipino street foods such as kwek-kwek, balut, isaw, fishball, calamares, chicken skin, adidas, and pork barbeque in ways that taste and safety of the food will be assured. Considering factors such as aesthetics, methods of preparation, presentation of food, quality of the products, sanitary procedures and best service accommodation will be the key factors to attain customer’s trust and loyalty. Through quality management, customer’s satisfaction will be achieved. Polytechnic University of the Philippines xiv FEASIBILITY STUDIES – KALYE OCHO A FEASIBILITY STUDY ON STREETFOOD KIOSK Polytechnic University of the Philippines xv FEASIBILITY STUDIES – KALYE OCHO CHAPTER I EXECUTIVE SUMMARY A. Name of the Business: Kalye Ocho The business proponents came up with the Kalye Ocho as the name of our business. “Kalye” as the Tagalog term for the word ”street” and “Ocho”, as the Spanish term for the number “eight” that represents the number of kinds of street foods we mainly served to our customers. Kalye Ocho can also be interpreted as one of the streets in a certain place that sets the perception to potential customers that our restaurant serves and offers street foods. B. Title of the Study: A Feasibility Study on Street Food Kiosk C. Store Location Figure 1 Location of the Business Building B, Foodcourt, SM Bicutan, Dona Soledad Barangay Don Bosco, Paranaque City Location is one of the major factors to be considered in starting up a business. It must be assured that it is accessible to the target market. If location is later found to be incompatible to the situation as to give consideration to its target market, it Polytechnic University of the Philippines 1 FEASIBILITY STUDIES – KALYE OCHO may lead the company to failure. Right choice of location means reaching your target customers and you respond correctly to their market needs. Based on our survey, majority of the respondents chose mall as a place to locate our business. We’ve decided to put our business at SM Bicutan because we believed it would be very accessible to our target customers which are those ages 10-24 years. Surrounding the establishment are different high schools and colleges like AICS, Informatics, PUP-T, DASNHS, etc. SM Bicutan is considered to be a strategic location for business because it lies in the intersection between Paranaque and Taguig City. In that case, not only the residents of Paranaque City of the given age can be persuaded but the residents of Taguig City of the same age as well. Figure 2 Location of the Business in the Establishment D. Description of the Logo Figure 3 Business Logo Polytechnic University of the Philippines 2 FEASIBILITY STUDIES – KALYE OCHO Our business came up with this logo because we believed that it can reflect and represent our main business essence thoroughly. We chose Kwek- kwek, a Pinoy street food, in our logo for the reason that it emerged as the most popular and in-demand street foods based on our conducted survey. Also this street food served as the trademark of most of the Filipinos because it captures their taste preference. K8 is an acronym that stands for Kalye Ocho which is the name of our business. We came up with the colours Green and Orange as the primary colours of our logo, Orange that symbolizes deliciousness and Green that represents clean and nutritious street foods we cater. E. Brief description of the project The study is about a food kiosk catering street foods as its main dish. The objective of the proponents in making this business possible is to make an impression that usual Filipino street foods that we encounter can also be safe, savoury and be complemented to other dishes. Our business wants to emphasize that aesthetics, appearances, presentation of food, personal trust and interaction with our customers are the most important parameters for assessing food safety as well as meeting our customer’s needs and wants. People in all walks of life can now have the perception that street foods are not just an alternative food if you want to be a spend thrift but rather these are also foods which will delight you and will give you satisfaction beyond your expectations. F. General Objectives of the Business a) to be able to change the perception of people regarding safety and cleanliness of street foods, b) to increase the level of awareness of customers on the different ways that the street foods can be introduced from a simple and ordinary recipes to a nutritious, stylish and savoury dishes or cuisine, c) to line up with other competitors using our unique approach in catering street foods, d) to offer an affordable but delicious and a satisfying street foods. Polytechnic University of the Philippines 3 FEASIBILITY STUDIES – KALYE OCHO G. Research and Methodology The proponents used different techniques in gathering information to support the study. G.1. Survey The proponents conducted survey among 358 respondents to get their opinion regarding street foods business. These 398 respondents were come from the present total population of Paranaque City and the proponents used the Sloven’s formula. The survey was distributed among all the teenagers’ residents of Paranaque City. It was used so that the proponents would be able to know the respondent’s perception and preference regarding to their proposed business. G.2. Sloven’s Formula The group used the Sloven’s Formula to determine the needed number of respondents. Formula: n= N . 1+Ne2 Where: N = the number of people who qualify in the area of study e = margin of error which is 5% n = number of needed respondents Solution: N= 178,129 . = 399.10 1+ (178,129) (.05)2 Polytechnic University of the Philippines 4 FEASIBILITY STUDIES – KALYE OCHO G.3. Sampling Techniques The researchers used the random sampling to gather information from the target market. Surveys and interviews are conducted to further the people’s demand regarding street food products by using a specific number of persons or respondents from different barangays within the locality. The group based the respondents from 0.23% of the total population in the area covered by the study. G.4. Survey Questionnaire In order to have an access on the pertinent information and gather important data about customer’s taste and preferences when it comes to street food products, the researchers agreed to use Questionnaires. In this process, we find it very easy and reliable. The researchers used the checklist format. Questions are made for the researchers to get their personal choice when it comes to street foods. By these questions, the researchers will be able to determine the demand of the product. The group provided 399 survey questionnaires which are all in English language. G.5. Interview The proponents interviewed relevant people in order to answer questions in addition to the information gathered by survey questionnaire. We interviewed managers of some establishments at SM Bicutan to determine the rental payments and the possible layout of the store offered by the management. G.6. Research The proponents used the information from different libraries and surf the internet as source of their research in order for them to gather information about the business, the location of the mall, and other information that can help the study. Polytechnic University of the Philippines 5 FEASIBILITY STUDIES – KALYE OCHO G.7. Mapping Figure 4 Parañaque City Map The study covered the whole city of Parañaque as the target market of the study as shown in Figure 4. The city is subdivided into sixteen (16) Barangays with two (2) districts. District II and I are composed of eight (8) Barangays each. The first district comprises of Barangays Baclaran, Tambo, Don Galo, and Sto. Niño, La Huerta, San Dionisio, Vitalez, and San Isidro while the second district consist of Barangays BF, San Antonio, Merville, Moonwalk, and San Martin de Porres, Sun Valley, Marcelo Green, and Don Bosco where the establishment of SM Bicutan is located. Polytechnic University of the Philippines 6 FEASIBILITY STUDIES – KALYE OCHO G.8. Search of Internet, Books and Libraries The proponents used the information from different libraries and surf the internet as source of their research in order for them to gather information about the business, the location of the mall, and other information that can help the study. Food is a basic necessity. The industry which deals with preparing food items/products refers to the food service industry. The food service industry is and will always remain in high demand because of its genre. These industries include restaurants, fast foods, school and hospital cafeterias, catering operations, food carts and food trucks etc. Restaurants and fast foods mainly contribute to the food service industry. “Fast food” generally refers to the type of restaurants that sell quick, inexpensive take-out food. During a relatively brief period of time, the fast food industry has helped to transform not only diet, but also landscape, economy, workforce, and popular culture. The extraordinary growth of the fast food industry has been obsessed by fundamental changes in society. The whole experience of buying fast food has become so habitual, that it is now taken for granted, like brushing your teeth or stopping for a red light. Restaurants and fast foods are meant for same services except that restaurants offer a large menu including a variety of cuisines as compared to fast foods, which usually offers a small menu with quick service. Another difference between a restaurant and fast food is, restaurants offer meals that are cooked and prepared and is eaten at the premises while fast food usually is pre-cooked meals or serves meals that are cooked easily. Diners may eat it inside the store or they can order their food “to-go”. In fast foods you usually pay before eating unlike full service restaurants. Polytechnic University of the Philippines 7 FEASIBILITY STUDIES – KALYE OCHO Like every other country, the food industry has flourished very well in Philippines. Filipinos love to eat and that’s the reason why you will see a lot of restaurants and fast foods restaurants scattered in the cities. These restaurants and fast foods can be local or international food chains. Filipino food and chefs are considered one of the best in the world. It is hardly surprising that Filipino food is often labeled as somewhat strange (like the “balut” for example) but in its own way, its food is a unique mixture of eastern and western cuisines and reflects the history of Philippines. The Filipino food includes dishes and cooking procedures from China, Spain, Mexico, United States, and more recently from further abroad. However, what makes them Filipino is the history and society that introduced and adapted them; the people who turned them to their tastes and accepted them into their homes and restaurants, and specially the harmonizing culture that combined them into modern Filipino fare. Some of the popular fast food chains of Philippines are Jollibee, McDonald, KFC, and Chowking, etc. and popular restaurants being Abe, Chelsea, Friday’s, Chili’s and a lot more. Attracting a huge crowd to restaurants or fast foods require more than just good food. Though important, good food is only a part of the total dining experience. Equally important is believed to be the way people feel while in the restaurant. This physical and emotional response is a result of the atmosphere, the total environment to which customers are exposed. The proper atmosphere can make the food, service and whole dining experience seem better. For that reason a restaurant or a fast food must take care of the following to please its customers. This includes checking the cleanliness of the place and freshness of the food, guarded premises, parking area where people can park, ambiance and landscaping, building design, lighting, and even music. (http://manilareviews.com/2010/07/food-service-industry-philippines.html) Polytechnic University of the Philippines 8 FEASIBILITY STUDIES – KALYE OCHO H. Project Summary H.1. Market Summary The market projection of this business is based on the surveys conducted and other related information gathered within the vicinity of Paranaque. Projection of demand, supply, and sales for the first five years of operation is based on the different factors like the population growth, market acceptability, capacity to supply and other factors. This study is feasible because our target population are willing and capable of availing our products and services. We also consider factors like our competitors and prevailing prices of the suppliers that will affect our prices. Based on our demand supply analysis we found out that we can supply the available market based on our production capacity. H.2. Technical Summary The products that we are going to offer are street foods with high demand and nutritious for our customer. Our products are kwek-kwek, fishball, isaw, adidas, pork barbeque, chicken skin, balot and calamares, we also offer other products that will complement to our products sush as desserts (halo-halo, sorbets,mais con yelo and banana con yelo) French fries and drinks (sago’t gulaman, iced tea and pineapple juice). Machineries and equipment were enumerated as well as other supplies with their corresponding cost. The project is feasible based on the different aspect that we consider in operating this business. H.3. Management Summary Kalye Ocho is a partnership form of business ownership which will handle the management of the business. There is a store manager who is over all in charged for the day-to-day operation of the business. At the present, the business has the total of 11 employees and as the business grows new employees will be hired for the minor business operation. Through an organized organizational structure, there will be a smooth operation of the business and also based on the technical know how of the managers, therefore, this business is feasible in this aspect. Polytechnic University of the Philippines 9 FEASIBILITY STUDIES – KALYE OCHO H.4. Financial Summary The initial investment of Kalye Ocho is P 4,000,000.00 which came from the partner’s contribution to establish this business. There are no other sources of capital aside from our contribution. The return of asset will be .15 at first year and the payback period will be exactly 2.83. Therefore, our financial study is feasible. I. Operational Terms Kwek-kwek – Boiled chicken or quail eggs dipped in a flour-and-egg batter then fried Isaw – Barbecued chicken intestines on a skewer Balut – A popular Filipino street snack and is essentially a duck egg with a fetus inside Fish Ball – Balls formed from flaked fish or squid mixed with flour, deep fried Calamares – Flour-coated squid rings Chicken Skin – Deep-fried chicken skin breaded with flour Adidas – Grilled chicken feet Pork Barbeque – Skewered pork strips marinated in soy sauce and calamansi and grilled Frying – To cook in a hot vegetable oil in a shallow open pan Grilling – To broil the on an electric griller with a great heat Soda – Soft serving of drinks and desserts Packing – The process of assembling the foods in its container Dishwashing – To clean the tablewares and utensils by washing it using a dishwashing liquid and water Polytechnic University of the Philippines 10 FEASIBILITY STUDIES – KALYE OCHO J. Scope and Limitation The study will tackle the feasibility of a street food restaurant business that is located at the mall, also the acceptance of the present and potential customers, on how well they will respond to these foods served in restaurants that are usually found in the streets. The respondents are those only who belong to the age bracket 10-24 years old, teenagers, male and female who are residents of Paranaque City. The competitors that the firm will consider are those fast food restaurants which are located within the vicinity of Paranaque City. Polytechnic University of the Philippines 11 FEASIBILITY STUDIES – KALYE OCHO CHAPTER II MARKET STUDY Marketing is a system of business activities designed to plan, price, promote and distribute want-satisfying goods and services to present and potential customers. It is considered as the lifeblood of every business transactions because it is a strategic way on how to cope up to the needs and wants of the costumers, finding opportunities regarding it, introduce and market the product, achieve customer’s loyalty and patronage. This aspect includes the following topics: demands, supply, demand and supply gap analysis, marketing programs and the projected sales. The objective of the proposed project is to delight the customers, not just by meeting their expectation but rather exceeding and going extra mile. Moreover, it’s about profitability. Marketing aspect serves as the basis of the financial section through the projected demand. There can be no discussion of profitability or of the other aspects of the study; if in the first place, there is no demand or market. Every business is practically aspiring for productivity but practically in order to last in the business world the first thing to take into consideration is the target market. The costumers will be the key factor to achieve the objectives of the organization. Finding opportunities and spotting the right market are both important in establishing a business. Knowing customer’s demand and supplying them right products at reasonable prices. Objectives a. to analyze the market demand and supply of the business, b. to define the target customer of the business through market segmentation, c. to determine the marketing strategies to be applied in the business, d. to determine the feasibility of the business, e. to determine the range of the business, f. to analyze and understand the complexities of the restaurant business. Polytechnic University of the Philippines 12 FEASIBILITY STUDIES – KALYE OCHO A. Demand It is very essential to know the demand of our products in order to answer our customer needs and wants. Knowing the demand will help us to determine the trend for our products. Analyzing the demand thoroughly will give the projection of the total number of quantity of each product that we are going to produce daily, weekly, monthly and annually. A.1. Past Demand A.1.1. For the Industry Since there is no statistical data recorded in NSO and DTI regarding the demand for streetfoods, past demand is computed by getting the target population in Parañaque City for the year 2006 – 2010 multiplied by market acceptability which is obtained by getting the percentage of respondents who are willing to eat streetfoods in a kiosk with 83.46% and multiplied to the frequency of agreement or the times the customers avail the products annually. It increases annually based on the annual growth of population of Parañaque City by 2.94% and based on the percentage of every products on the survey, we distributed the annual past demand to get the past demand for every products. Year M.A. Target F.O.A. Population Annual Demand 2006 83.46 159,344 75 11,529,309 2007 83.46 164,029 75 11,868,261 2008 83.46 168,851 75 12,217,166 2009 83.46 173,819 75 12,576,336 2010 83.46 178,929 75 12,946,023 Table 1 Past Demand for the Industry Past demand for industry or the whole streetfoods is computed by getting the target market population times the frequency of agreement. It increases annually based on the annual growth of population of Parañaque City by 2.94% Polytechnic University of the Philippines 13 FEASIBILITY STUDIES – KALYE OCHO A.1.2. for Every Product Since we determined already the computation for the industry, past demand for every streetfoods that the respondents usually eat are computed to the percentage of each products answered by the respondents multiplied to the annual past demand of industry. Street Foods Balut Adidas Chicken Skin Fishball Isaw (4.51) (4.01) (7.02) (15.79) (7.77) 2006 449,834 399,963 700,184 1,574,916 774,991 2007 463,060 411,723 720,771 1,621,222 797,777 2008 476,672 423,826 741,960 1,668,881 821,229 2009 490,697 436,296 763,719 1,717,983 845,391 2010 505,123 436,296 786,244 1,768,489 870,245 Total 2,385,386 449,122 3,712,949 8,351,491 4,109,633 Calamares Kwek-kwek Pork Barbeque Total (14.04) (23.56) (23.30) 2006 402,955 2,349,907 2,323,974 9,974,138 2007 414,803 2,418,998 2,392,303 10,267,395 2008 426,997 2,490,110 2,462,630 10,569,228 2009 439,560 2,563,375 2,535,068 10,880,199 2010 452,482 2,638,734 2,609,614 11,200,060 Total 2,136,797 12,461,124 9,860,959 52,891,020 Year Street Foods Year Table 2 Past Demand for the Products Polytechnic University of the Philippines 14 FEASIBILITY STUDIES – KALYE OCHO A.2. Projected Demand A.2.1. For the Industry The annual increase of demand for the years 2011 – 2015 is based on the annual population growth rate from 2006 – 2010 by 2.94%. The annual projected demand was obtained by multiplying the market acceptability which is 83.43 to target population and to the frequency of agreement. Based from the obtained demand, it was distributed again to every product in order to determine its demand. The projected demand for industry in 2011 – 2015 is as follows: Year M.A. 2011 2012 2013 2014 2015 83.46 83.46 83.46 83.46 83.46 Target Population 184,189 189,604 195,178 200,916 206,822 Table 3 F.O.A. 75 75 75 75 75 Annual Demand 11,529,309 11,868,261 12,217,166 12,576,336 12,946,023 Projected Demand for the Industry A.2.2. For the Products It is computed by multiplying the projected annual demand of industry to the percentage of each product based on the survey. Projected Demand Street Foods Balut Adidas Chicken Skin Fishball Isaw (4.51) (4.01) (7.02) (15.79) (7.77) 2011 519,972 462,325 809,357 1,820,478 895,827 2012 535,259 475,917 833,152 1,873,998 922,164 2013 550,994 489,908 857,645 1,929,090 949,271 2014 567,193 504,311 882,859 1,985,803 977,181 2015 583,866 519,136 908,811 2,044,177 1,005,906 Total 2,757,284 4,451,597 4,291,824 9,653,546 4,750,349 Year Polytechnic University of the Philippines 15 FEASIBILITY STUDIES – KALYE OCHO Street Foods Calamares Kwek-kwek Pork Barbeque Total (14.04) (23.56) (23.30) 2011 1,618,715 2,716,305 2,686,329 11,529,309 2012 1,666,304 2,796,162 2,765,305 11,868,261 2013 1,715,290 2,878,364 2,846,600 12,217,166 2014 1,765,718 2,962,985 2,930,286 12,576,336 2015 1,817,622 3,050,083 3,016,423 12,946,023 Total 8,583,649 14,403,899 14,244,943 61,137,095 Year Table 4 Projected Demand for the Products A.3. Market Segmentation A.3.1. Geographic Location : SM Bicutan Climate : Wet & Dry Barangay : Don Bosco Region : NCR City : Paranaque City Density of the Area : Urban A.3.2. Demographic Age : 10-24 years old Gender : Male & Female A.3.3. Psychographic Personality : Curious Lifestyle : Outgoing, Adventurous Polytechnic University of the Philippines 16 FEASIBILITY STUDIES – KALYE OCHO B. Supply Based on the percentage of the population who already availed street foods from our survey questionnaire, we determined our past supply. B.1. Past Supply It was multiplied from the percentage of purchases which is 79.70%to the target population and to the frequency of agreement. The increase in supply was also based in the growth rate of population. It was also distributed per product to know the past supply. B.1.1. For the Industry Year Percentage of Purchases Target Population F.O.A Annual Past Supply 2006 79.70 159,344 75 9,524,788 2007 79.70 164,029 75 9,804,833 2008 79.70 168,851 75 10,315,192 2009 79.70 173,819 75 10,390,031 2010 79.70 178,929 75 10,695,481 Table 5 Past Supply for the Industry B.1.2. For Every Products Street Foods Balut Adidas Chicken Skin Fishball Isaw Year 2006 429,568 381,944 668,640 1,503,964 740,076 2007 442,198 393,174 688,299 1,548,183 761,836 2008 465,215 413,639 724,126 1,628,769 801,490 2009 468,590 416,640 729,380 1,640,586 807,305 2010 482,366 428,888 750,823 1,688,816 831,039 Total 2,287,937 2,034,285 3,561,268 8,010,318 3,941,746 Polytechnic University of the Philippines 17 FEASIBILITY STUDIES – KALYE OCHO Street Foods Calamares Kwek-kwek Pork Barbeque Total Year 2006 1,337,280 2,244,040 2,219,276 9,524,788 2007 1,376,599 2,310,019 2,284,526 9,804,833 2008 1,448,253 2,430,259 2,403,439 10,315,192 2009 1,458,760 2,447,891 2,420,877 10,390,031 2010 1,501,646 2,519,855 2,492,047 10,695,481 Total 7,122,538 11,952,064 11,820,165 50,730,321 Table 6 Past Supply for the Products B.2. Projected Supply The projected supply will help to determine the total satisfied market or the total number of customers who availed street foods for five years. It was obtained by percentage of purchases to the target population with 2.94% growth rate to the frequency of agreement and it was distributed per product to determine the total satisfied market for every product. B.2.1. For the Industry Computation of projected supply for product is the same in past supply per product. It changed only in the target population based on the annual growth rate of 2.94% Polytechnic University of the Philippines 18 FEASIBILITY STUDIES – KALYE OCHO Year Percentage of Purchases Target Population F.O.A Annual Past Supply 2011 79.70 184,189 75 11,009,897 2012 79.70 189,604 75 11,333,578 2013 79.70 195,178 75 11,666,764 2014 79.70 200,916 75 12,009,753 2015 79.70 206,822 75 12,361,470 Table 7 Projected Supply for the Industry B.2.2 For the Products Street Foods Balut Adidas Chicken Skin Fishball Isaw 2011 496,546 441,497 772,895 1,738,463 855,469 2012 511,144 454,476 795,617 1,789,571 880,619 2013 526,171 467,837 819,007 1,842,182 906,508 2014 541,640 481,591 843,085 1,896,340 933,158 2015 557,502 495,695 867,775 1,951,876 960,486 Total 2,633,003 2,341,096 4,098,379 9,218,432 4,536,240 Year Polytechnic University of the Philippines 19 FEASIBILITY STUDIES – KALYE OCHO Street Foods Calamares Kwek-kwek Pork Barbeque Total Supply Year 2011 1,545,790 2,593,932 2,565,306 11,009,897 2012 1,591,234 2,670,191 2,640,724 11,333,576 2013 1,638,014 2,748,690 2,718,356, 11,666,765 2014 1,686,169 2,829,498 2,798,272 12,009,753 2015 1,735,550 2,912,362 2,880,223 12,361,470 Total 8,196,757 13,754,673 13,602,881 58,381,461 Table 8 Projected Supply for the Products B.3. Competitors Analysis The following are the competitors of the business: Mang Inasal(1) – Filipino type of restaurant catering chicken and pork barbeque as their main products. Zonyda(1) – Food stall located in hypermarket. It caters products like fishballs, kikiam, palamig, etc. Merienda Meal (SM Food Court) (1) – It caters kwek-kwek as well as pork barbeque. Streetfoods vendors (10) - There are lot of street vendors offering the same products that we cater such as chicken skin, kwek-kwek, isaw, pork barbeque, balut, fishball, adidas, and calamares. Polytechnic University of the Philippines 20 FEASIBILITY STUDIES – KALYE OCHO Zonyda Mang Merienda Outside Total Annual Inasal Meals Vendors serving/ Supply/ day pc Products In person Fishball 400 - - 3620 4020 1,467,300 146,730 Adidas - - - 314 628 229,220 114,610 Chicken - - - 2120 2120 773,800 128,966 Balut - - 25 240 265 96,725 96,725 Pork - 117 32 380 529 193,085 193,085 Kwek-kwek - - 250 4680 4930 1,799,450 449,862 Calamares - - - 1130 1130 412,450 137,483 Isaw - - - 610 610 222,650 111,325 14,232 5,680,914 1,378,786 Skin Barbeque Total , Table 9 Competitors Products Analysis C. Demand Supply Gap Analysis This is necessary to determine Kalye Ocho’s market share. The gap or the unsatisfied market is obtained by subtracting the projected demand to the projected supply which shows the available market for street foods. It also shows the number of persons whom we need to supply to answer their demand for street foods. We now show the gap for every product using the data from projected demand and projected supply. Table 10 will show the demand, supply and gap per product as well as the overall total. Polytechnic University of the Philippines 21 FEASIBILITY STUDIES – KALYE OCHO Year Demand Supply Gap 2011 11,529,309 11,009,897 519,412 2012 11,868,261 11,333,576 534,683 2013 12,217,166 11,666,765 550,402 2014 12,576,336 12,009,753 566,583 2015 12,946,023 12,361,470 584,553 Street Balut Foods Demand Adidas Supply Gap Demand Supply Gap Year 2011 519,972 496,546 23,426 462,325 441,497 20,828 2012 535,259 511,144 24,115 475,917 454,476 21,441 2013 550,994 526,171 24,823 489,908 467,837 22,071 2014 567,193 541,640 25,553 504,311 481,591 22,720 2015 583,866 557,502 26,364 519,136 495,695 23,441 Total 2,757,284 2,633,003 124,282 4,451,597 2,341,096 110,501 Supply Gap Street Chicken Skin Foods Demand Fishball Supply Gap Demand Year 2011 809,357 772,895 36,462 1,820,478 1,738,463 82,015 2012 833,152 795,617 37,535 1,873,998 1,789,571 84,427 2013 857,645 819,007 38,638 1,929,090 1,842,182 86,908 2014 882,859 843,085 39,774 1,985,803 1,896,340 89,463 2015 908,811 867,775 41,036 2,044,177 1,951,876 92,301 Total 4,291,824 4,098,379 193,445 9,653,546 9,218,432 435,114 Polytechnic University of the Philippines 22 FEASIBILITY STUDIES – KALYE OCHO Street Isaw Foods Demand Calamares Supply Gap Demand Supply Gap Year 2011 895,827 855,469 40,358 1,618,715 1,545,790 72,925 2012 922,164 880,619 41,545 1,666,304 1,591,234 75,070 2013 949,271 906,508 42,763 1,715,290 1,638,014 77,276 2014 977,181 933,158 44,023 1,765,718 1,686,169 79,549 2015 1,005,906 960,486 45,420 1,817,622 1,735,550 82,072 Total 4,750,349 4,536,240 214,109 8,583,649 8,196,757 386,892 Street Kwek-kwek Foods Demand Pork Barbeque Supply Gap Demand Supply Gap Year 2011 2,716,305 2,593,932 122,373 2,686,329 2,565,306 121,023 2012 2,796,162 2,670,191 125,971 2,765,305 2,640,724 124,581 2013 2,878,364 2,748,690 129,674 2,846,600 2,718,356, 128,244 2014 2,962,985 2,829,498 133,487 2,930,286 2,798,272 132,014 2015 3,050,083 2,912,362 137,721 3,016,423 2,880,223 136,200 Total 14,403,899 13,754,673 649226 14,244,943 13,602,881 642062 Table 10 Demand Supply Gap Analysis D. Market Share Analysis Every business must determine their market share that will serve as basis of marketing strategies of the establishment. It will define the extent of market that we need to satisfy. Out of the total available market which is 4.72%, we made our capacity to supply based in our resources. We have 1 counter, 1 POS, 4 burners, and each product requires 12 minutes of preparation. Our store hours are just based to mall hours. And we Polytechnic University of the Philippines 23 FEASIBILITY STUDIES – KALYE OCHO got 220 persons as our capacity to supply per day and annually it is 80,300 which is 15.46% of the total available market as shown in the graph. Therefore market share is computed by dividing the capacity to supply to the available market. They all increase by 5% every year because of the promotional tactics provided by the business. Market Share of Kalye Ocho, 2011 – 2015 Street Foods Balut Adidas Chicken Skin Fishball Isaw Year 2011 9,531 8,474 14,835 33,368 16,420 2012 9,811 8,723 15,271 34,349 16,903 2013 10,099 8,980 15,720 35,359 17,400 2014 10,396 9,244 16,182 36,399 17,911 2015 10,702 9,515 16,658 37,469 18,438 Total 50,539 44,936 78,666 176,944 87,072 Street Foods Calamares Kwek-kwek Pork Barbeque Total Year 2011 29,670 49,788 49,239 211,325 2012 30,542 51,252 50,687 217,538 2013 31,440 52,759 52,177 223,934 2014 32,365 54,310 53,711 230,518 2015 33,316 55,906 58,289 240,293 Total 157,333 264,015 264,103 1,123,608 Table 11 Market Shares of Kalye Ocho Polytechnic University of the Philippines 24 FEASIBILITY STUDIES – KALYE OCHO Year Projected Growth Market Share 2011 5% 15.46% 2012 5% 16.23% 2013 5% 17.04% 2014 5% 17.89% 2015 5% 18.78% Note: Capacity to supply annually: 80,300 persons Increase: 5% Table 12 Projected Market Share D.1. Projected Sales Projected sales where obtained by multiplying the price for solo meals and combo meals to our total servings per products. Our sales will increase by 5% based on our market share. Year Growth Rate Annual Sales Monthly Daily 2011 --- 6,663,960 555,330 18,511 2012 5% 6,997,158 583,096.50 19,436.55 2013 5% 7,317,016 609,751.31 20,325.04 2014 5% 7,714,367 642,863.91 21,428.70 2015 5% 8,100,085 675,007.08 22,500.24 Table 13 Projected Sales Figure 5 Breakdown of Markets Polytechnic University of the Philippines 25 FEASIBILITY STUDIES – KALYE OCHO E. Marketing Strategies E.1. Product Strategies Youth of today are fond of eating street foods. This will serve as the competitive advantage of of our business enable to penetrate to the market. The products of Kalye Ocho are as follow; Balut (4.51%), Adidas (4.01%), Chicken skin (7.02%), Fishball (15.79%), Isaw (7.77%), Calamares (14.04%), Kwek-kwek (23.56%) and Pork Barbeque (23.30%). The products will be cooked in its traditional way in able to maintain the original taste of these foods. But, presentation will be something different. Kalye Ocho wants to emphasize the importance of aesthetics, appearance and food preparation enable to attract customers as well as to achieve customers delight through safe and quality products. For takeout products it will be packed in a L.O plastic with disposable spoon and fork. E.2. Place Strategies Kalye Ocho will be located in the lower ground of SM Bicutan. Sm Bicutan is considered to be a strategic location for a business because it lies in the intersection of Parañaque and Taguig City. Though our scope is within Parañaque City there’s a possibility that people from Taguig City can also be our customers. Different high schools and universities such as AICS, DASNHS, PUPT, GCA , Goal Montessori etc. are all near SMBicutan. The location of the business will be accessible enough to meet the needs of our target market. Moreover, the place is also near Bicutan Market, People’s Market and other super markets where we can have easy access regarding the raw materials that we will be needed in regular operations and even on emergency operation. E.3. Pricing Strategies We used cost plus strategy in order to set the price of our products. The computation would be: Purchase Cost + Operating Cost+ mark-up=Selling Cost Polytechnic University of the Philippines 26 FEASIBILITY STUDIES – KALYE OCHO E.4. Promotion Based on the responses on the survey, posters (32.58%), website (31.08%) and flyers (25.31%) are the top three advertising tools that our customers want us to use enable to reach them. E.4.1. Poster Posters will be placed in our store. The design of the poster can able to catch the attention of the customers because of the information provided as well as its aesthetic. Chosen colors are pleasing to the eye and will surely boost the interest of the customers to eat to our restaurant. Two (2) posters will be produced which are good for three (3) months. The computation would be: No. of pcs X Unit Price X No. of times per month 2 X 150 X 1 = Php. 300.00 Figure 6 Kalye Ocho Poster Polytechnic University of the Philippines 27 FEASIBILITY STUDIES – KALYE OCHO E.4.2. Website We are now living in the modern world and surfing to the internet is one of the easiest ways to have quick access. The proponents will be using free website in order to reach wider range of possible customers. This will be of great help for them to know the concept behind Kalye Ocho. It will also provide good communication relationship in ways that, we will be giving information and they will be giving comments and suggestions for product improvements and other concerns. Figure 7 Kalye Ocho Unofficial Website www.wix.com/KalyeOcho/StreetfoodRestaurant Polytechnic University of the Philippines 28 FEASIBILITY STUDIES – KALYE OCHO E.4.3. Flyers Flyers can convey wide range of possible buyers for it can be brought to other places. The store will produce 200 flyers per day. These flyers will be distributed twice a week or eight (8) times in a month. Flyers will be given in the first three (3) months of the business until it will get its loyal customers The computation would be: No. of Pcs. X Unit Price X No. of times per month 200 X 8 X 8 = Front Php.12,800 Back Figure 8 Kalye Ocho Flyer Polytechnic University of the Philippines 29 FEASIBILITY STUDIES – KALYE OCHO E.4.4. Gift Certificate Our store will be giving gift certificates worth fifty pesos (50.00) on the first day of operation of our business. The recipients of these certificates will be the first 100 customers of our store. F. SWOT Analysis Strengths The location of the business is accessible enough to meet our target market. The business will easily catch the interest of the customers for Filipinos are fond The restaurant has its unique characteristics in terms of foods being offered and other features being presented Kalye Ocho will provide alternative foods for those who want to be a spend thrift It provides modern communication tools including print ads and website that will enable to build a connection between the business and the customers Weaknesses The perception of some that street foods are unhealthy and unsafe Maintenance of special features of the store is quite costly. Opportunies Street foods are not normally presented in a typical restaurant and this will serve as an opportunity for the proponents to give a different impact or approach regarding the kinds of food we cater through safety and quality assurance The business would be the first restaurant that caters street foods in the location being chosen(SM Bicutan) Threats Well-known restaurants within the same vicinity will be the great competitors of the business. The business will be new in the market, it may easily have good market standing but it may encounter difficulty in terms of sustaining demand of the customers that may lead to its saturation point or declining stage. Polytechnic University of the Philippines 30 FEASIBILITY STUDIES – KALYE OCHO CHAPTER III TECHNICAL STUDY After having determined the market size and area, product demand and growth, the potential and technical feasibility of the project may be analyzed. This stage deals with the allocation of resources that will be needed in order to satisfy the market. The technical soundness analysis will be considered complete if all pertinent technical aspect of the project have been taken into account in the analysis and if the planned construction or procurement conforms to accepted standards and practices. The estimated cost of the project should be as low as any other reasonably available alternate which would produce the intended results. The objective of this portion of the feasibility study is to determine to what extent the project meets the technical soundness criteria. Prior to projecting technical feasibility, the technical requirements of the project must be analyzed. This may be done by: A. Stating: The quantity and quality of products to be produced The specification of raw materials The supplies to be used The labor needed The utilities needed The waste disposal methods Transportation necessary Plant location Plant size and layout Machinery and equipments Production schedule Manufacturing process B. Providing estimates of total project cost and enumerating the major items of capital cost. C. Listing down in detail estimated production cost and overhead cost that will go into the operating of the proposed plan. D. Taking into consideration any major technological development in the industry which may affect the commercial or technical soundness of the project. Once the technical Polytechnic University of the Philippines 31 FEASIBILITY STUDIES – KALYE OCHO requirements have been prepared, the project proponent is ready to analyze technical feasibility. Objectives a. to identify the kind of service and variety of products the proposed business have including its description and procedure, b. to determine the process to be used in obtaining the products and how to distribute or deliver it to the market, c. to describe the geographical location of the business, d. to illustrate the store size and store layout of the business, e. to determine the supplies needed and all necessary machineries and equipments to be used in the operation of the business, f. to determine where to acquire the supplies and necessary utilities for the operation of the business, g. to define the human requirements and regulations of the business, h. to know the methods of waste disposal for the maintenance of the store. A. Product Description Kalye Ocho’s products are the top eight most in demand street foods in the Philippines. Based on the survey, majority of the respondents which is 37.09 % answered that they are aware regarding the safety and cleanliness of street foods. The image of these products is unhygienic because it is exposed on the different hazards especially physical hazards on the streets. The proponents would like to change this kind of perception by producing these street foods in a safe and clean manner. Standard sanitation procedures are the main consideration in producing a quality and safe products. And aside from that we would to emphasize that our products are nutritious. Polytechnic University of the Philippines 32 FEASIBILITY STUDIES – KALYE OCHO Figure 9 Our Products Polytechnic University of the Philippines 33 FEASIBILITY STUDIES – KALYE OCHO Our products consist of different foods, drinks, side dishes, and desserts making a complete meal. Our main foods are streetfoods namely Kwek-kwek, Balut, Isaw, Fishballs, Calamares, Chicken Skin, Adidas and Pork Barbeque. It is sold individually by a specific number of pieces with one sauce and dip chosen by the customer and also can be served in a value meals with rice and drinks. The drinks of Kalye Ocho are Pineapple Juice, Iced Tea and Sago’t gulaman in 16oz. The desserts included are Halo-halo, Saging Con Yelo, Mais Con Yelo and Sorbetes which is available in sweet cone with two flavours to choose from (Ube and Cheese). Our Sauces and Dips are available into four kinds which are sweet, spicy, mayonnaise and vinegar. A.1. Product Pricing Solo Orders 18 25 18 15 22 15 18 20 Combo Meals 35 42 39 35 42 39 35 42 Barbeque Pork Adidas Skin Chicken Calamares Fishballs Isaw Balut Kwek-kwek Streetfoods Drinks Pineapple Juice Iced tea Sago’t Gulaman 18 18 18 Solo Order Desserts and Side Dish Halo-halo Solo Order Polytechnic University of the Philippines 42 Saging Mais Con Con Yelo Yelo 25 25 Sorbetes 15 34 FEASIBILITY STUDIES – KALYE OCHO A.2. Product Preparation Guide A.2.1. Streetfoods Figure 10 Adidas Ingredients: (the quantity of the ingredients is according to number of streetfood(s) to be produced) 4pcs Chicken Feet Soy Sauce Vinegar Barbeque Sticks Water Oil Catsup Oyster Sauce Cooking procedure: 1. Wash the Chicken feet and cut the claws and trim off the hardened unwanted spot then nib the chicken feet with salt to clean it thoroughly then rinse it finally scald the chicken feet in hot boiled water for 5 minutes. 2. Put it in a tap water then remove the unwanted skin of chicken feet. 3. Sauté the Chicken feet in onions, soy sauce, pepper and vinegar. Polytechnic University of the Philippines 35 FEASIBILITY STUDIES – KALYE OCHO Figure 11 Balut Ingredients: (the quantity of the ingredients is according to number of streetfood(s) to be produced) 6 pieces balut, boiled 3 tbsp cornstarch 1 cup water 1 cup all-purpose flour 1/2 tsp salt 1/2 tsp ground black pepper 2 cups cooking oil Cooking procedure: 1. Put the cornstarch in a container and dredge the boiled chicken eggs. Set aside. 2. Combine all-purpose flour, salt, and pepper then mix thoroughly. 3. Dilute the annatto seeds in water until the reddish color comes out. Combine the liquid with the flour-salt-pepper mixture and mix thoroughly. 4. Put the boiled chicken eggs in the mixing bowl and coat with the batter. 5. Heat the pan and pour the cooking oil. 6. When the oil is hot enough, deep-fry the eggs until the coating is crispy. Use a serving spoon to scoop the eggs from the mixing bowl. 7. Remove the fried eggs from the pan and place in a serving plate. Polytechnic University of the Philippines 36 FEASIBILITY STUDIES – KALYE OCHO Figure 12 Calamares Ingredients: (the quantity of the ingredients is according to number of streetfood(s) to be produced) 1/2 lb large sized squid, cleaned and sliced into rings 3/4 cup all-purpose flour 1 piece raw egg, beaten 3/4 cup breadcrumbs 1 teaspoon salt 1/2 teaspoon ground black pepper 2 cups cooking oil Cooking procedure: 1. Combine squid, salt, and ground black pepper then mix well. Let stand for 10 minutes. 2. Heat a cooking pot the pour-in cooking oil. 3. Dredge the squid in flour then dip in beaten egg and roll over breadcrumbs. 4. When the oil is hot enough, deep-fry the squid until the color of the coating turns brown. Note: This should only take about 2 to 3 minutes in medium heat. Do not overcook the squid. 5. Remove the fried squid from the cooking pot and transfer in a plate lined with paper towels. Polytechnic University of the Philippines 37 FEASIBILITY STUDIES – KALYE OCHO Figure 13 Chicken Skin Ingredients: (the quantity of the ingredients is according to number of streetfood(s) to be produced) 1kg Chicken Skin 1pack Chicken Breading 2 eggs 2 cups Cooking Oil Cooking procedure: 1. Wash the chicken skin and cut it into cubes. 2. Place the flavoured chicken breading in a bowl and dip the chicken skin 3. Heat the oil for deep fry in a deep frying pan until it turns golden brown for five minutes. 4. Remove and put in a serving plate Polytechnic University of the Philippines 38 FEASIBILITY STUDIES – KALYE OCHO Figure 14 Fishballs Ingredients: (the quantity of the ingredients is according to number of streetfood(s) to be produced) 15 pieces boiled quail eggs 1 cup flour 3 tbsp cornstarch 1/2 cup water 1 tbsp anatto powder (pinulbos na atsuete) 1/2 tsp salt 1/2 tsp ground black pepper 2 cups cooking oil Cooking procedure: 1. Place the cornstarch in a container and dredge the boiled quail eggs. Set aside. 2. In a mixing bowl, combine flour, salt, and pepper then mix thoroughly. 3. Dilute the anatto powder in warm water then pour-in the mixing bowl with the other ingredients. Mix well. 4. Place all the quail eggs in the mixing bowl and coat with the batter. 5. Heat the pan and pour the cooking oil. 6. When the oil is hot enough, deep-fry the quail eggs by scooping them from the mixing bowl using a spoon. Make sure that each is coated with batter. 7. After a few minutes, remove the fried quail eggs from the pan and place in a serving plate. Polytechnic University of the Philippines 39 FEASIBILITY STUDIES – KALYE OCHO Figure 15 Isaw Ingredients: (the quantity of the ingredients is according to number of streetfood(s) to be produced) 1 lb chicken intestine (well cleaned) 1/2 cup vinegar 2 tbsp whole pepper corn 2 tbsp salt 4 to 6 pieces dried bay leaves 4 cups water Cooking procedure: 1. Pour the water in a cooking pot and bring to a boil. 2. Put-in the salt, whole pepper corn, and dried bay leaves. 3. Add the large intestines then simmer for a few minutes. 4. Add vinegar then simmer until the intestines are tender (about 30 minutes). Set aside until the temperature goes down. 5. Cut the intestines crosswise (about 1 inch in length). 6. Skewer the intestine (about 3 to 4 pieces per skewer). 7. Grill the intestine while basting with the mixture of cooking oil, banana catsup, and soy sauce. Polytechnic University of the Philippines 40 FEASIBILITY STUDIES – KALYE OCHO Figure 16 Kwek-kwek Ingredients: (the quantity of the ingredients is according to number of streetfood(s) to be produced) 15 pieces boiled quail eggs 1 cup flour 3 tbsp cornstarch 1/2 cup water 1 tbsp anatto powder (pinulbos na atsuete) 1/2 tsp salt 1/2 tsp ground black pepper 2 cups cooking oil Cooking procedure: 1. Place the cornstarch in a container and dredge the boiled quail eggs. Set aside. 2. In a mixing bowl, combine flour, salt, and pepper then mix thoroughly. 3. Dilute the anatto powder in warm water then pour-in the mixing bowl with the other ingredients. Mix well. 4. Place all the quail eggs in the mixing bowl and coat with the batter. 5. Heat the pan and pour the cooking oil. 6. When the oil is hot enough, deep-fry the quail eggs by scooping them from the mixing bowl using a spoon. Make sure that each is coated with batter. 7. After a few minutes, remove the fried quail eggs from the pan and place in a serving plate. Polytechnic University of the Philippines 41 FEASIBILITY STUDIES – KALYE OCHO Figure 17 Pork Barbeque Ingredients: (the quantity of the ingredients is according to number of streetfood(s) to be produced) 2 lbs pork, sliced 1/2 cup soy sauce Lemon juice from 1 piece lemon 1/2 cup banana ketchup 2 teaspoons salt 1 teaspoon ground black pepper 3 tablespoons brown sugar 8 cloves garlic, crushed and chopped Cooking procedure: 1. Combine pork, soy sauce, lemon juice, ketchup, salt, ground black pepper, brown sugar, and chopped garlic in a mixing bowl then mix the ingredients well. Make sure that all ingredients are properly distributed; using your hands in mixing the ingredients is recommended. 2. Marinate the pork in the mixture overnight. Make sure to refrigerate the marinade to avoid contamination. If in case you are so eager to grill right away, allow at least three hours for the meat to absorb the flavors. 3. Skewer the sliced pork using a bamboo skewer (this is also the same as the barbeque stick that we know). 4. Grill the pork until both sides are done. Use the leftover marinade as basting sauce. Try adding few tablespoons of soy sauce, ketchup, and a tablespoon of cooking oil to create the perfect basting sauce. Polytechnic University of the Philippines 42 FEASIBILITY STUDIES – KALYE OCHO A.2.2. Drinks Figure 18 Iced Tea Ingredients: (per serving) 360g tea powder 1l cold water 7l purified water Serving procedure: 1. Dissolve iced tea powder in 1 liter cold water. 2. Put the solution in the dispenser. 3. Add 7l of purified water. 4. Serve and enjoy. Polytechnic University of the Philippines 43 FEASIBILITY STUDIES – KALYE OCHO Figure 19 Pineapple Juice Ingredients: (per serving) 1 can pineapple mixture 1l cold water 7l purified water Serving procedure: 1. Put 1 can of pineapple mixture in the dispenser. 2. Add 7l of purified. 3. Stir it well. 4. Make 22 glasses. 5. Serve and enjoy. Polytechnic University of the Philippines 44 FEASIBILITY STUDIES – KALYE OCHO Figure 20 Sago’t Gulaman Ingredients: (per serving) 4 tablespoon sago 4 tablespoon gulaman 1 tablespoon Vanilla 3 tablespoon syrup 2 to 3 ice cubes Serving procedure: 1. For each serving put approximately 4 tablespoon of chilled sago and gulaman into a tall glass. 2. Add 1 tablespoon of Vanilla and 3 tablespoon of syrup or more according to taste and mix it well. 3. Add 2-3 ice cubes Polytechnic University of the Philippines 45 FEASIBILITY STUDIES – KALYE OCHO A.2.3. Desserts Figure 21 Halo-halo Ingredients: (per serving) 1tablespoon: Pinipig Nata Beans Ube Langka Macapuno Kaong Sugar 1 cup crushed ice ¼ cup evaporated milk 2 scoop ice cream (Ube and Cheese) Leche Flan Serving procedure: 1. Combine the first eight ingredients. 2. Add sugar. 3. Filled with crushed ice. 4. Put evaporated milk. 5. Top with two scoops of ice cream and leche flan. Polytechnic University of the Philippines 46 FEASIBILITY STUDIES – KALYE OCHO Figure 22 Mais Con Yelo Ingredients: (per serving) ½ cup corn 1 cup ice 3 tablespoon cornflakes ¼ cup milk 1 tablespoon sugar Serving procedure: 1. Put corn inside the glass. 2. Add shaved ice and milk. 3. Put another layer of corn. 4. Sprinkle with corn flakes. Polytechnic University of the Philippines 47 FEASIBILITY STUDIES – KALYE OCHO Figure 23 Saging Con Yelo Ingredients: (per serving) 2pcs saba 1 tablespoon brown sugar 1 teaspoon banana essence 1 cup ice ¼ cup evaporated milk Serving procedure: 1. Cut the saba into ½ inch. 2. Put it into the serving bowl with the brown sugar and banana essence. 3. Add the cup of ice. 4. Add the evaporated milk and add the remaining saba on the the bowl. Polytechnic University of the Philippines 48 FEASIBILITY STUDIES – KALYE OCHO Figure 24 Sorbetes Ingredients: Selecta Ice Cream Cone (sweet cone or ordinary cone) Serving: - 3 scoop of ice cream in a cone Polytechnic University of the Philippines 49 FEASIBILITY STUDIES – KALYE OCHO A.3. Time Motion Study Customer will go to the store, choose product and fall in line with the counter (50 sec) Counter will take the order(24 sec) Call the order, receive payment, and give change if any(25 sec) Product preparation (5 min) Assemble the order(1 min) B. Business Process The Kalye Ocho Fast food restaurant will be open during mall hours from 10:00 am in the morning to 9:00 pm in the evening. The personnel and assigned service crews for the opening must be at the store one (1) hour before the Fast food is about getting the customer’s orders to prepare the products being sold on that time. Then there is a set process for every order on the menu. The customers will fall in line to the counter to give orders then the service crew will take the orders. C. Business Location D.1. Vicinity Map Figure 25 Vicinity of Paranaque Polytechnic University of the Philippines 50 FEASIBILITY STUDIES – KALYE OCHO D.2. Floor Plan Figure 26 Floor Plan Measurements The total area of our space in Sm Bicutan is measured 15 by 15 feet. The whole area is divided into two portions namely the production area and the counter area. The Production Area, where the foods are processed and stored is composed of: Fry Area – where the Balut, Kwek-kwek, Chicken Skin, Fish Balls and Calamares are cooked. Grill Area – where the Pork Barbeque, Isaw, and Adidas are grilled. Soda Area – where the drinks and desserts are prepared Packing Area – where the foods are arranged and packed. Dishwashing Area – where the tablewares and kitchen utensils are cleaned. Storage – where the supplies and raw materials are stored. Polytechnic University of the Philippines 51 FEASIBILITY STUDIES – KALYE OCHO The Counter Area, where the transactions are made is consisting of: Food Display, where the products are shown. One Point of Sale Machine (POS) Mini workspace for record keeping made up of office equipment like computer, telephone, etc. Figure 27 Floor Plan Details Polytechnic University of the Philippines 52 FEASIBILITY STUDIES – KALYE OCHO D. Machineries and Equipment Description Function Used to input Quantity Unit Total Cost Cost 1 16,200 16,200 1 15,500 15,500 1 2,699.00 2,699.00 sales and keep the money safe POS System Used to store and record data Computer Set A secure space where money, val uables, records, and documents can be stored Vault Polytechnic University of the Philippines 53 FEASIBILITY STUDIES – KALYE OCHO Description Function Quantity Unit Total Cost Cost 1 500 500 1 10,245 10,245 12,652 12,652 1,250 1,250 For communication and business Telephone transaction purposes Stores perishable goods and use for cooling purposes Freezer A cooling apparatus use to reduce the rate of 1 spoilage of foodstuffs Refrigerator Used to grill barbeque, isaw, 1 adidas etc. Polytechnic University of the Philippines 54 FEASIBILITY STUDIES – KALYE OCHO Grill Description Function Quantity Unit Total Cost Cost 1 542 542 1 620 620 2 3,868 3,868 A device used to crushed ice for cold food servings Ice Crusher Sucks hot air out of the kitchen to create proper ventilation Exhaust Fan Kitchen appliance designe d for the purpose of cooking food Heavy Duty Burner Polytechnic University of the Philippines 55 FEASIBILITY STUDIES – KALYE OCHO Description Function Quantity Unit Total Cost Cost 1 249.00 249.00 1 2,261.00 2,261.00 758.00 758.00 A measuring instrument for determining the weight or mass of an object Weighing scale A kitchen appliance used for baking, broiling, roasting microwave oven and heating food An apparatus used in mixing flour and other 1 ingredients Polytechnic University of the Philippines 56 FEASIBILITY STUDIES – KALYE OCHO Flour Mixer Description Function Quantity Unit Total Cost Cost 1 2,095.00 2,095.00 1 2,410.00 2,410.00 A self-contained tabletop kitchen appliance for cooking rice Rice Cooker A device containing a fan that hangs above the stove or cook top in the kitchen used to remove smoke, odors, heat, and steam Range Hood Polytechnic University of the Philippines from the air 57 FEASIBILITY STUDIES – KALYE OCHO E. Utensils Description Function Quantity Unit Cost Cost A bowl- shaped kitchen utensil with holes in it Colander 2 260.00 520.00 use for draining. Used primarily to measure the volume of liquid or bulk solid cooking 2 54.00 108.00 1 39.00 39.00 ingredients such as flour and sugar Measuring Cup Used to grate foods into fine strips or crumbs Grater Polytechnic University of the Philippines 58 FEASIBILITY STUDIES – KALYE OCHO Description Function Quantity Unit Cost Cost A filter to retain larger pieces while small pieces 2 40.00 80.00 1 250.00 250.00 2 89.00 178.00 and liquid pass Strainer through A kitchen utensil design to fry, to sear, and to sautè and food Frying Pan A kitchen utensil used as a surface on which to cut or slice things Chopping Board Polytechnic University of the Philippines 59 FEASIBILITY STUDIES – KALYE OCHO Description Function Quantity Unit Cost Cost A kitchen tools used to cut different kinds of 1 100.00 100.00 23.00 69.00 39.00 117.00 foods Kitchen Knives Set A kitchen tool for 3 handling food items on a grill Tong Used in food preparation to measure, mix, stir and toss Spoon and Fork 3 dozen each ingredients; primary utensil used for eating Polytechnic University of the Philippines 60 FEASIBILITY STUDIES – KALYE OCHO Description Function Quantity Unit Cost Cost A hard-held tool that is used for lifting, flipping or 3 35.00 105.00 2 dozen 96.00 192.00 spreading Spatula substances A round vessel that is open at the top; used chiefly for holding food or Bowl liquids A broad, mainly flat vessel on 144.00 which food is served 432.00 3 dozen Plate Polytechnic University of the Philippines 61 FEASIBILITY STUDIES – KALYE OCHO Description Function Quantity Unit Cost Cost An open metal, ceramic, or plastic container with 2 45.00 90.00 1 39.75 39.75 sloping sides, Basin typically used for holding water or washing Food preparation utensil used to slice peeled, hardEgg Slicer boiled eggs quickly and evenly Polytechnic University of the Philippines 62 FEASIBILITY STUDIES – KALYE OCHO Description Function Quantity Unit Cost Cost Used to hold water for drinking purposes 3 49.00 147.00 2 360.00 720.00 2 450.00 900.00 Pitcher Deep dish used both in the oven and as a serving vessel Casserole Kitchen appliance used for deep-frying Deep Fryer Polytechnic University of the Philippines 63 FEASIBILITY STUDIES – KALYE OCHO Description Function Quantity Unit Cost Cost It has sharp metal edges that cut perfectly round 2 30.00 60.00 Quantity Unit Cost balls from even Ice Cream Scooper the hardest ice cream F. Furniture and Fixtures Description Function Cost Generally comfortable and adjustable type of chair that 1 300.00 600.00 3 325.00 975.00 is designed for use at a desk in Office chair an office For better ambiance Fluorescent Light Polytechnic University of the Philippines 64 FEASIBILITY STUDIES – KALYE OCHO Description Function Quantity Unit Cost Cost Built-in furniture installed in many kitchens for storage of food, 1 2,460.00 2,460.00 Quantity Unit Cost cooking Kitchen Cabinet equipment, and often silverware and dishes for table service G. Supplies G.1. Office Supplies Description Function Cost Used in writing important details or documents 3 5.00 15.00 Ballpen Polytechnic University of the Philippines 65 FEASIBILITY STUDIES – KALYE OCHO Description Function Quantity Unit Cost Cost Used for computation Calculator 2 50.00 100.00 1 45.50 45.50 Used for recording and reference purposes Logbook Used to compile files 1 29.75 29.75 Stapler Used for stapler 3boxes 5.75 17.25 Staple wire Polytechnic University of the Philippines 66 FEASIBILITY STUDIES – KALYE OCHO Description Function Quantity Unit Cost Cost Used to provide receipt to the customers 5 32.00 160.00 1ream 232.00 232.00 Quantity Unit Total Cost Cost 10.00 50.00 Thermal paper Used for documentation purposes Bond paper G.2. Sanitary Supplies Description Function A piece of textile used to hold hot kitchen Pot Holder Polytechnic University of the Philippines equipment like 5 pots and pans 67 FEASIBILITY STUDIES – KALYE OCHO Description Function Quantity Unit Cost Cost Used to dry hands and for sanitation purposes 5 10.00 50.00 12 8.00 96.00 2 25.00 50.00 Cleaning towel Used to scrub plates and utensils. Sponge and Scrub Used to clean plates and other utensils Dishwashing Liquid Polytechnic University of the Philippines 68 FEASIBILITY STUDIES – KALYE OCHO Description Function Quantity Unit Cost Cost Used to wipe wet floor 1 95.00 1 45.00 1 45.00 95.00 Mop Used to sweep the floor 45.00 Broom Used to collect dust and waste 45.00 Dust pan Polytechnic University of the Philippines 69 FEASIBILITY STUDIES – KALYE OCHO Description Function Quantity Unit Cost Cost Disinfectant use to maintain the cleanliness of the hands before and 1 125.00 125.00 8 24.00 192.00 after eating Hand Sanitizer For sanitary purposes Tissue paper Polytechnic University of the Philippines 70 FEASIBILITY STUDIES – KALYE OCHO H. Store Uniforms Figure 28 Uniforms for Male Crews Figure 29 Uniforms for Female Crews Polytechnic University of the Philippines 71 FEASIBILITY STUDIES – KALYE OCHO Figure 30 Uniforms for Male Store Managers Figure 31 Uniforms for Female Store Managers The uniforms will be worn during store hours. The uniform for employees costs P580 while the uniform for the store manager costs P700 both will be deducted from their own salaries. Polytechnic University of the Philippines 72 For the full version of the Feasibility Study (Kalye Ocho) View it via this link: http://artmaniacsportal.blogspot.com/p/kalye-ocho.html You can also download it there for FREE!
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