Kalye Ocho - Feasibility Study on Street Food Kiosk

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES Taguig 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!