kalye ocho - feasibility study on street food kiosk
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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
Polytechnic University of the Philippines ii
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
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Polytechnic University of the Philippines iii
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.
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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
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I. Operational Terms 10
J. Scope and Limitation 11
II. 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 16
B. Supply 17
B.1. Past Supply 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
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E.4.4. Gift Certificates 30
F. SWOT Analysis 30
III. 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 75
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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
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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 91
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 92
H. Project Schedule Gantt Chart 94
V. 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
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Financial Analysis 101
Economic Evaluation 105
VI. 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
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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
Appendices
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
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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
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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
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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
Appendices
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 ` 125
46 Question #13 Graph 126
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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.
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A FEASIBILITY STUDY ON STREETFOOD KIOSK
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 1
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
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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
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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.
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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
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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.
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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.
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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.
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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)
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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.
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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
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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.
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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.
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 13
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
Population
F.O.A. 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%
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 14
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.
Table 2
Past Demand for the Products
Street
Foods
Year
Balut
(4.51)
Adidas
(4.01)
Chicken Skin
(7.02)
Fishball
(15.79)
Isaw
(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
Street
Foods
Year
Calamares
(14.04)
Kwek-kwek
(23.56)
Pork Barbeque
(23.30)
Total
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
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 15
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. Target Population
F.O.A. Annual Demand
2011 83.46 184,189 75 11,529,309
2012 83.46 189,604 75 11,868,261
2013 83.46 195,178 75 12,217,166
2014 83.46 200,916 75 12,576,336
2015 83.46 206,822 75 12,946,023
Table 3
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
Year
Balut
(4.51)
Adidas
(4.01)
Chicken Skin
(7.02)
Fishball
(15.79)
Isaw
(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
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 16
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
Street
Foods
Year
Calamares
(14.04)
Kwek-kwek
(23.56)
Pork Barbeque
(23.30)
Total
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
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 17
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
Table 5
Past Supply for the Industry
B.1.2. For Every Products
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
Street
Foods
Year
Balut
Adidas
Chicken Skin
Fishball
Isaw
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
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 18
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%
Street
Foods
Year
Calamares
Kwek-kwek
Pork Barbeque
Total
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
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 19
Table 7
Projected Supply for the Industry
B.2.2 For the Products
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
Street
Foods
Year
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
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 20
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.
Street
Foods
Year
Calamares
Kwek-kwek
Pork Barbeque
Total
Supply
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
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 21
Products
Zonyda Mang
Inasal
Merienda
Meals
Outside
Vendors
Total
serving/
day
Annual
Supply/
pc
In person
Fishball 400 - - 3620 4020 1,467,300 146,730
Adidas - - - 314 628 229,220 114,610
Chicken
Skin
- - - 2120 2120 773,800 128,966
Balut - - 25 240 265 96,725 96,725
Pork
Barbeque
- 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
Total 14,232 5,680,914
,
1,378,786
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.
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 22
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
Foods
Year
Balut Adidas
Demand Supply Gap Demand Supply Gap
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
Street
Foods
Year
Chicken Skin Fishball
Demand Supply Gap Demand Supply Gap
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
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 23
Street
Foods
Year
Isaw Calamares
Demand Supply Gap Demand Supply Gap
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
Foods
Year
Kwek-kwek Pork Barbeque
Demand Supply Gap Demand Supply Gap
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
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 24
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.
Table 11
Market Shares of Kalye Ocho
Market Share of Kalye Ocho, 2011 – 2015
Street
Foods
Year
Balut
Adidas
Chicken Skin
Fishball
Isaw
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
Year
Calamares
Kwek-kwek
Pork Barbeque
Total
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
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 25
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
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 26
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
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 27
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
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 28
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
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 29
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 = Php.12,800
Front Back
Figure 8
Kalye Ocho Flyer
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 30
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.
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 31
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
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 32
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.
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 33
Figure 9
Our Products
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 34
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
Streetfoods
Kw
ek
-kw
ek
Balu
t
Isa
w
Fis
hb
alls
Cala
ma
res
Ch
ick
en
Sk
in
Ad
idas
Po
rk
Barb
eq
ue
Solo Orders 18 25 18 15 22 15 18 20
Combo Meals 35 42 39 35 42 39 35 42
Drinks
Pineapple Juice Iced tea Sago’t Gulaman
Solo Order 18 18 18
Desserts and Side Dish
Halo-halo Saging
Con Yelo
Mais Con
Yelo
Sorbetes
Solo Order 42 25 25 15
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 35
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.
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 36
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.
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 37
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.
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 38
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
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 39
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.
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 40
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.
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 41
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.
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 42
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.
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 43
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.
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 44
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.
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 45
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
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 46
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.
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 47
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.
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 48
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.
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 49
Figure 24
Sorbetes
Ingredients:
Selecta Ice Cream
Cone (sweet cone or ordinary cone)
Serving:
- 3 scoop of ice cream in a cone
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 50
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
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 51
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.
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 52
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
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 53
D. Machineries and Equipment
Description Function Quantity Unit
Cost
Total
Cost
POS System
Used to input
sales and keep
the money safe
1
16,200
16,200
Computer Set
Used to store and
record data
1
15,500 15,500
Vault
A secure space
where money, val
uables, records,
and documents
can be stored
1
2,699.00
2,699.00
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 54
Description Function Quantity Unit
Cost
Total
Cost
Telephone
For
communication
and business
transaction
purposes
1
500
500
Freezer
Stores perishable
goods and use for
cooling purposes
1
10,245
10,245
Refrigerator
A cooling
apparatus use to
reduce the rate of
spoilage of
foodstuffs
1
12,652 12,652
Used to grill
barbeque, isaw,
adidas etc.
1 1,250 1,250
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 55
Grill
Description Function Quantity Unit
Cost
Total
Cost
Ice Crusher
A device used to
crushed ice for
cold food servings
1
542
542
Exhaust Fan
Sucks hot air out
of the kitchen to
create proper
ventilation
1
620
620
Heavy Duty Burner
Kitchen
appliance designe
d for the purpose
of cooking food
2
3,868
3,868
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 56
Description Function Quantity Unit
Cost
Total
Cost
Weighing scale
A measuring
instrument for
determining
the weight or
mass of an object
1
249.00
249.00
microwave oven
A kitchen
appliance used
for baking,
broiling, roasting
and heating food
1
2,261.00
2,261.00
An apparatus
used in mixing
flour and other
ingredients
1
758.00 758.00
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 57
Flour Mixer
Description Function Quantity Unit
Cost
Total
Cost
Rice Cooker
A self-contained
tabletop kitchen
appliance
for cooking rice
1 2,095.00 2,095.00
Range Hood
A device
containing
a fan that hangs
above
the stove or cook
top in the kitchen
used to remove
smoke, odors,
heat, and steam
from the air
1
2,410.00
2,410.00
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 58
E. Utensils
Description Function Quantity Unit
Cost
Cost
Colander
A bowl- shaped
kitchen utensil
with holes in it
use for draining.
2
260.00
520.00
Measuring Cup
Used primarily to
measure the
volume of liquid
or bulk solid
cooking
ingredients such
as flour and sugar
2
54.00
108.00
Grater
Used to grate
foods into fine
strips or crumbs
1
39.00
39.00
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 59
Description Function Quantity Unit
Cost
Cost
Strainer
A filter to retain
larger pieces
while small pieces
and liquid pass
through
2
40.00
80.00
Frying Pan
A kitchen utensil
design to fry, to
sear, and to sautè
and food
1
250.00
250.00
Chopping Board
A kitchen utensil
used as a surface
on which to cut or
slice things
2
89.00
178.00
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 60
Description Function Quantity Unit
Cost
Cost
Kitchen Knives Set
A kitchen tools
used to cut
different kinds of
foods
1
100.00
100.00
Tong
A kitchen tool for
handling food
items on a grill
3
23.00
69.00
Spoon and Fork
Used in food
preparation to
measure, mix, stir
and toss
ingredients;
primary utensil
used for eating
3 dozen
each
39.00
117.00
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 61
Description Function Quantity Unit
Cost
Cost
Spatula
A hard-held tool
that is used for
lifting, flipping or
spreading
substances
3
35.00
105.00
Bowl
A round vessel
that is open at the
top; used chiefly
for holding food or
liquids
2 dozen
96.00
192.00
Plate
A broad, mainly
flat vessel on
which food is
served
3 dozen
144.00
432.00
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 62
Description Function Quantity Unit
Cost
Cost
Basin
An open metal,
ceramic, or plastic
container with
sloping sides,
typically used for
holding water or
washing
2
45.00
90.00
Egg Slicer
Food preparation
utensil used to
slice
peeled, hard-
boiled
eggs quickly and
evenly
1
39.75
39.75
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 63
Description Function Quantity Unit
Cost
Cost
Pitcher
Used to hold
water for drinking
purposes
3
49.00
147.00
Casserole
Deep dish used
both in the
oven and as a
serving vessel
2
360.00
720.00
Deep Fryer
Kitchen
appliance used
for deep-frying
2
450.00
900.00
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 64
Description Function Quantity Unit
Cost
Cost
Ice Cream Scooper
It has sharp metal
edges that cut
perfectly round
balls from even
the hardest ice
cream
2
30.00
60.00
F. Furniture and Fixtures
Description Function Quantity Unit
Cost
Cost
Office chair
Generally
comfortable and
adjustable
type of chair that
is designed for
use at a desk in
an office
1
300.00
600.00
Fluorescent Light
For better
ambiance
3
325.00
975.00
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 65
Description Function Quantity Unit
Cost
Cost
Kitchen Cabinet
Built-in furniture
installed in many
kitchens for
storage of food,
cooking
equipment, and
often silverware
and dishes for
table service
1
2,460.00
2,460.00
G. Supplies
G.1. Office Supplies
Description Function Quantity Unit
Cost
Cost
Ballpen
Used in writing
important details
or documents
3
5.00
15.00
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 66
Description Function Quantity Unit
Cost
Cost
Calculator
Used for
computation
2
50.00
100.00
Logbook
Used for
recording and
reference
purposes
1
45.50
45.50
Stapler
Used to compile
files
1
29.75
29.75
Staple wire
Used for stapler
3boxes
5.75
17.25
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 67
Description Function Quantity Unit
Cost
Cost
Thermal paper
Used to provide
receipt to the
customers
5
32.00
160.00
Bond paper
Used for
documentation
purposes
1ream
232.00
232.00
G.2. Sanitary Supplies
Description Function Quantity Unit
Cost
Total
Cost
Pot Holder
A piece of textile
used to hold hot
kitchen
equipment like
pots and pans
5
10.00
50.00
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 68
Description Function Quantity Unit
Cost
Cost
Cleaning towel
Used to dry
hands and for
sanitation
purposes
5
10.00
50.00
Sponge and Scrub
Used to scrub
plates and
utensils.
12
8.00
96.00
Dishwashing Liquid
Used to clean
plates and other
utensils
2
25.00
50.00
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 69
Description Function Quantity Unit
Cost
Cost
Mop
Used to wipe wet
floor
1
95.00
95.00
Broom
Used to sweep
the floor
1
45.00
45.00
Dust pan
Used to collect
dust and waste
1
45.00
45.00
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 70
Description Function Quantity Unit
Cost
Cost
Hand Sanitizer
Disinfectant use
to maintain the
cleanliness of the
hands before and
after eating
1
125.00
125.00
Tissue paper
For sanitary
purposes
8
24.00
192.00
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 71
H. Store Uniforms
Figure 28
Uniforms for Male Crews
Figure 29
Uniforms for Female Crews
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines 72
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.
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