CHAPTER 1

Introduction
(Opening Statement)
Company Profile
Chic-Boy A play of words for Chicken and Baboy (pork), two of the
products we proudly offer. Filipinos loves to eat and find reasons to celebrate at almost
any occasion that is why in every gathering chicken and pork are always on the menu.
Chic-Boy is the perfect place to have an affordable yet delicious and fulfilling meal with
family, colleagues and barkadas.

Before the existence of Chicboy, Francis A. Juan, the founder that before earned
in a simple buy & sell of rice put up a business in Block 8 Lot 8 Tomas Morato Avenue
Corner Scout Borromeo Street south Triangle Quezon City, Metro Manila known as Pier
One Bar and Restaurant. To take on his new challenge, Francis went to Cebu in 2008
and introduced lechon (roasted pig) and lechon manok (roasted chicken).
Chicboy is a new trademark and business model of Pier One Bar Holdings
Corporation, the company behind the successful Pier One Bar and Grill Restaurant
chain in the Philippines. Having first tried the delicious and tasty lechon liempo in Cebu
and the Chicken Inasal of Bacolod, Pier One Bar and Grill Holdings Corporation saw its
business potential and the opportunity to tap into the lechon manok, lechon liempo and
chicken inasal industry and therefore, brought the secret recipe to manila. In September
2008, the first outlet opened in Marikina City. Chicboy opened its first Dine-In store last
May 2010 and began offering its Dine-In store concept for franchise. As of 17 March
2011, Chicboy has grown into a total of 12 dine-in stores, 11 units of which are
franchises. 21 more franchises are under construction.

MISSION
To offer superior tasting grilled chicken and pork Filipino dishes at value for money and
provide excellent dining experience through fast and friendly customer service.
VISION

To be the countrys preferred fast casual Filipino grilled restaurant by;

- continuously innovating our product line and consistently providing quality
products;
- providing a welcoming ambiance through clean, bright and well- maintained
stores and efficient and cheerful employees;

- reaching out to Filipinos in major malls, key cities, business districts across the
nation;
- providing jobs to Filipinos wherever we are.

VALUES

We value that the core of all our dealings now and in the future must remain
with integrity.

We pledge to uphold the highest ethical and professional standards coupled

with openness and transparency.

We accept responsibility for our actions and any consequences thereof.

We enable, encourage and exhibit an example of clear communication with and

from all members of our organization, especially with our patrons.

We will continue to model and demand excellence of ourselves in all areas.

 We will provide ways to communicate and continue to remain open and

receptive of new ideas while striving to perfect our services and products.

We will foster an environment of respect towards our customers, franchisees,

employees, suppliers and each other.

Environmental Commitment
Chic-Boy is committed to protecting the environment through responsible
operating practices. Our commitment to environmentally-friendly operating practices is
demonstrated through the following objectives:

Complying with or exceeding all applicable governmental regulations

Implementing waste management practices

Converting biodegradable waste to Bio-gas

Promoting waste reduction and recycling by converting grease trap fats, oils
and grease (FOG's) to biodiesel to fuel our delivery trucks, steam boilers and
generator sets
Making environmentally conscious purchasing decisions

Goals and Objectives

1st Objective: conduct a soft-opening of the franchise by December 2011 and to be fully
operational by the start of year 2012

Our specific objectives are the following:

To conduct daily inspections on the floor and restaurant equipment

Strictly implement the specifications set by Chic-boy and the Food and Drug
Administration (FDA).

To hire prospective employees with the ample amount of experience every 6

months.

To review employee skills and knowledge of Chic-boy operating procedures

every 2 months.

To strictly comply with the requirements set by Chic-boy through punctual

payment of royalty fees and other related payables.

To achieve an ROI in a span of two years.

To establish a minimum of 5 branches by 2020.

Definition of the Market

Fast Food Restaurant (aka Quick Service Restaurant) - limited menu establishment
which lends itself to production line techniques of producing food that is serve packaged
for immediate consumption, on or off the restaurant premises. (Franchise Direct.com,
n.d., para. 3).

Fast Food Industry - can be assessed as overly saturated because of the countless
establishments competing for dominance.

Established brands make it hard for prospective entrepreneurs to enter the industry
with a new product or service
Chic-boy provides a new concept which may tap the unexplored portion of the fast
food industry as it still holds some potential growth and success for newcomers. Its
concept integrates the best qualities of the leading fast food chains today
The franchise will target the B, C, and D market of the Philippine population.
Students and employees with a strict budget for food but still crave for rich-tasting
Filipino food that will fill their bellies to the rim will find what they are looking for in Chicboy. A budget of around PhP 50 to PhP 100 will surely satisfy one's hunger

Currently, Chic-boy has no significant share in the fast food market but it is slowly
gaining foothold with 4 take-out stores and 10 dine-in stores, 9 of which are franchises.
10 more are under construction all over Metro Manila, and 4 of these will be serving
24/7.
GENERAL INFORMATION
Address:
1402 Centerpoint Building, Julia Vargas Avenue corner Garnet Road, Ortigas Business
Center, Pasig City 1600, Philippines
Telephone no.:
63 2 6584564
63 2 6311215
Facsimile no.:
63 2 8093374
Email Add:
info@chic-boy.com.ph

CHAPTER II
INDUSTRY AND FIRMS ENVIRONMENT
(OPENING STATEMENT)
External Environment
Economic

Interest Rate

Philippines central bank kept its overnight borrowing rate on hold at 4

percent for the seventh consecutive time on August 13th, as widely expected.
Policymakers expect the inflation rate to remain within target over the rest of the
policy horizon. Interest Rate in Philippines averaged 9.53 percent from 1985 until
2015, reaching an all time high of 56.60 percent in December of 1990 and a

record low of 3.50 percent in September of 2012. Interest Rate in Philippines is

reported by the Bangko Sentral ng Pilipinas.

Money Supply

The Chic-boy Franchise has a lot of perks. These include a training

program for you and your staff, an accredited architect that will design the
restaurant for you, pre-opening assistance from the main branch and having a
return of investment within three years.
Franchising fee is 950,000 pesos with a possible total investment of 5 million
6 million pesos depending on the store size, a projected return of investment
within 2 2.5 years and a franchise term of 7 years, a royalty fee of 5% for gross
sales and 2% for advertising gross sales.

Inflation Rate

The inflation rate in Philippines was recorded at 0.80 percent in July of 2015.
Inflation Rate in Philippines averaged 8.76 percent from 1958 until 2015,
reaching an all time high of 62.80 percent in September of 1984 and a record low
of -2.10 percent in January of 1959. Inflation Rate in Philippines is reported by
the National Statistics Office of Philippines.

Unemployment Level

Unemployment Rate in Philippines averaged 8.85 percent from 1994 until

2015, reaching an all time high of 13.90 percent in the first quarter of 2000 and a
record low of 6 percent in the fourth quarter of 2014. Unemployment Rate in
Philippines is reported by the National Statistics Office of Philippines.

Devaluation/ Revaluation

For every 1 dollar is equivalent to 45.79 peso which is very important in

adjusting our price if ever we have restaurant in states.

Energy availability and Cost

Energy typically falls in the top site-selection factors for any project. The
greater a projects consumption of energy, the more important the availability and
total cost of energy becomes in the final selection decision. The respondents to
Area Developments 26th Annual Corporate Survey ranked energy availability
and costs seventh among the factors, with 84. 8 percent considering this factor
as very important or important.

Technological

Focus on Technological Effort

Due to innovation our company use machinery which may help us to fasten
our production and to become more productive.

New Product

Chic-boy does not currently have a new product but it focuses on offering
Lechon or grilled type food, pinoy favorite delicacies.

Infrastructure

Decentralizing its organization into 4 autonomous business units, that

corresponded to thecountrys major geographical markets. This enables the
Head Office to focus its operations on the key marketing, finance, restaurant
systems and engineering functions and act as a support andadvice to the RBUs.

Internet Availability

This helps us to promote our product and update them for the incoming
events that we offer.

Telecommunication

Through telecommunication our consumer might contact us for the delivery of

our product not only that but also to update us on what is happening or the
activity in our business.

Political Legal
The purchasing power of the Filipinos is at its low point.

Socio Cultural

Lifestyle Changes

Some of our present consumer always eat in modern restaurant being curios
on Filipino ambiance that we offer they try to eat in our own restaurant.

Growth rate of population

Through the growth rate of population we gain more valuable consumer that
might help our organization to earn profit more consumer more profit.

Age distribution of population

We try to do an undifferentiated marketing which we dont segment our

consumer to maximize earning.

Six Forces Factor

Threat of New Entrants

Threat of New
Entrants is High when:
Economic of Scale
Product differentiation
Capital Requirements
Switching costs
Ease of access to
distribution channels
Cost disadvantages
Government policies
creating barrier

High

Medium

Low

The threat of new entrants to the industry is considered low to medium. New entrants to
the fast-food industry would need to face high entry barriers. Besides having economies
of scales, high capital requirements when opening a fast-food chain as well as products
that differ from the rest of the competition, the new entrants would also have to compete
against the high standards as well as the already present loyal customer base on our
company Chic-boy has set in the industry.

Bargaining Power of Suppliers

Bargaining Power
Of Suppliers are
High when:
Concentration of
suppliers relative to
buyer industry
Availability of
substitute products
Importance of
customers to
suppliers
Differentiation of the
suppliers products
and services
Switching cost of
buyer
Threat of forward
integration by the
supplier

High

Medium

Low

The bargaining powers of suppliers are low. The availability of raw materials for the fastfood industry is readily available not only locally, but available from neighboring
countries as well.

Bargaining Power of Buyers

Bargaining Power of
Buyers are High
when:
Concentration of
buyers relative to
suppliers
Switching costs
Product
differentiation of
suppliers
Threat of backward
integration of buyers
Extent of buyers
profile

High

Medium

Low

Importance of
suppliers input to
quality of buyers
final product

The bargaining power of buyers is medium-high. With the numerous available choices
of fast-food in Philippines buyers are able to choose which restaurants they would want
to patronize. Switching from eating at Chic-boy to Binalot Fiesta or any fast food chain
has little impact on the buyers wallet and this poses one of the main blocks in
determining if the firm is able to earn above-average returns.

Threat of Substitute Products

Threat of Substitute
Products are high
when:
Differentiation of
Substitute Product
Rate of
improvement in
price performance
relationship of
substitute products

High

Medium

Low

The threat of substitute products is considered to be medium-high. Products from local

street food can be considered a major substitute, as well as food from its direct
competitors in the industry.

Intensity of Rivalry among Competitors

Intensity of Rivalry is
high when:

High

Number of
Competitors
Industry growth rate

Medium

Fixed cost

Storage cost

Product

Low

differentiation

Switching costs

Exit barriers
Strategic stakes

The intensity of rivalry among competitors is considered to be medium-high. The fastfood industry can be described as a lucrative segment with high profitability. Within the
Philippines, there are already other fast-food players competing with Chic-boy.
Is Chic-boy New Entry or has been in the industry for a long time?
Chic-boy is a new entrant on the industry. Chic-boy provides a new concept which may
tap the unexplored portion of the fast food industry as it still holds some potential growth
and success for newcomers. Its concept integrates the best qualities of the leading fast
food chains today

Supplier of raw materials

Suppliers Premier Farms Agro-Processing Corporation Renn Bee Farm (Bulacan)
Supplier of Chickens Supplier of Vegetables (if the is a limited supply, they outsoure in
local markets) Kai Anya Farm (Binan, Laguna) Supplier of Pork Monterey (Makati) BBQ
and Liempo Magnolia Supplier of Chickens (if out of stock in Tanauan Batangas). They
also buy frozen fish & eggs in SNR & Baclaran, sacks of rice in Bulacan, Batangas and
Nueva Ecija locally/week and intentionally in Vietnam, Japan, and India every 3-5
months and buy additional recipes in Puregold & SM.

Is the firm Consolodated or Fragmanted?

Our firm is consolodated because since from our entrance until now there are two major
firm in food industry who typically dominate the fast food industry which is Jolibee and
Mcdonald this two almost eat the food industry and try to take down new entrants one
by one. As for our firm it is considered as a defender.

Internal Environment