CHURRO ILOCO

Description of the Product

Churros are tasty deep fried, ridged sticks of dough, sugar-sprinkled and
served with warm different for dipping. Churro Iloco will be putting a new spin into
rich dessert by starting with seven different churro flavors and dipping. Customers
can choose to have their churros serve in cone with these flavors:

Classic with Belgian chocolate dip

Churros Classic Covered with Matcha Chocolate
Banana Nutella
Classic
Churros Coated in Butterscotch Flavored Chocolate
Butterscotch and Classic
Churros Classic Covered in Dark Chocolate

Our Vision
Our vision is to be a sought-after pastry snack provider in Mariano Marcos
State University, City of Batac to satisfy the urge for the sweet taste that students
crave several times a day. Aside from these, Churro Iloco shall have the unique
selling proposition of. Yall aint ready for this churro!
Our Mission
Our mission is to bring customers delight with every taste and bite. Churro
Iloco is dedicated to providing top of the line products and quality service. It is our
goal to prosper as a business and grow as entrepreneurs. By doing so we share our
success in the local market, as well as provide a profitable return to our team
members.
Objectives

To be a market leader in the food stand business

To position ourselves as a small scale enterprise, with strong ties to the
community.
To be perceived as the cleanest, most responsive food stand within the school
vicinity.

Goals

To maintain positive balance in our lives so that the business rounds us out
and reflects our values.
To offer the MMSU studentry a wholesome snack that is satisfying, great
tasting and worth every cent.
To have our employee/s and customers feel appreciated, supported, and
satisfied, every time they come.

Need Analysis
*Conducted on November 24, 2016
Table1. We conducted a survey with regards to putting up a Churreria
Business to 100 students in the 5 different colleges of Mariano Marcos State
University, City of Batac, Ilocos Norte. College of Business, Economics and
Accountancy, College of Health and Sciences, College of Engineering, College of
Food and Sustainable Development, and College of Arts and Sciences.
COLLEGE
CBEA
CHS
COE
CAFSD
CAS
TOTAL

NUMBER OF STUDENTS
39
13
22
12
14
100

Table 2. 75% out of the total survey are students who are willing to pay a
churro for Php 25.00, which garnered the highest percentage among four different
prices: 15% for students who are willing to pay at Php 50.00; 9% for students who
are willing to pay at more than Php 50.00 and 1% are students who wont buy a
churro, respectively.
AMOUNT
Php 50.00
Php 25.00
More than Php 50.00
Not interested in
buying
TOTAL

FREQUENCY
15
75
9
1
100

PERCENTAGE
15%
75%
9%
1%
100%

Table 3. 71& of the total survey are willing to wait 0-5 minutes for an order.
While, 28% of the students are willing to wait 5-10 minutes; 1% is willing to wait for
more than 20 minutes and none is willing to wait for 15-20 minutes.
WAITING TIME
0-5
5-10
15-20
More than 20
TOTAL

FREQUENCY
71
28
0
1
100

PERCENTAGE
71%
28%
0%
1%
100%

Table 4. 59% of the survey are students that prefers their churros in a cone.
Meanwhile, 5% of the students would prefer it in a skewer; 24% would like their
order in a plate and 12% would like their order in a plastic cup, respectively.
PRESENTATION
Skewer
Cone
Plate
Cup
TOTAL

FREQUENCY
5
57
23
15
100

PERCENTAGE
5%
57%
23%
15%
100%

Table 5. In terms of how many churros are students are willing to buy, 45%
of the survey would like to pay for 1-2 piece/s of churro/s, while 26% of the survey
are students that would like to order 2-3 piece/s of churro/s; 9% are students that
would like to order 3-4 piece/s and 20% are students that would like to order more
than 4 pieces of churros.
NOS. OF CHURROS
1-2
2-3
3-4
More than 4
TOTAL

FREQUENCY
45
26
9
20
100

PERCENTAGE
45%
26%
9%
20%
100%

Table 6. 53% of the survey are students that would buy churros anytime
during the day. While, 47% of the students are most likely to buy churros in the food
stand during their snack time, and none would like to buy churros during lunch time.
TIME
Snack time
Lunch time
Anytime during the
day
TOTAL

FREQUENCY
47
0

PERCENTAGE
47%
0%

53

53%

100

100%

Table 7. For the location, 49% of the survey are students that would like the
Churro business to be located inside the campus. While, 31% of the students would
like the Churro business to be located near the campus vicinity and 15% of the
students would rather see the Churro business to be located in a mall.
LOCATION
Inside the campus
Nearby the campus
Mall
TOTAL

FREQUENCY
49
31
20
100

PERCENTAGE
49%
31%
20%
100%

Thus, Churro Iloco will operate its first stand inside MMSU campus in Batac
City, with a population of 15,000 students. The food stand will be located near the
MMSU Oval grounds, south-western part, where customer traffic always takes place.
Furthermore, it is also near the University Covered Court. Most of the activities,
university wide, is done in the Covered Court. All activities from production to selling
will occur in the stand.

Flavors

Percentage
13%

18%

7%

18%

9%

25%
10%

Churro Iloco will be starting up

with seven different churro flavors and a survey was conducted to the same number
of students based on what flavors they like among the seven varities. Here is a pie
chart to show the statistics of the said survey.

Legend
Classic with Belgian Chocolate dip
Churros Classic Covered with Matcha
Chocolate
Banana Nutella
Classic
Churros Coated in Butterscotch Flavored
Chocolate
Butterscotch and Classic
Churros Classic Covered in Dark Chocolate

Target Market
Our main customers for Churro Iloco stand will be the students of MMSU who
are present during regular school days and activities conducted within the vicinity of
the University.

Selling Price
Churro Iloco plans to sell 12-inch churro (any flavor) in a cone, that may come
with a chocolate dip in a small container, at an affordable price of Php 25.00

SWOT ANALYSIS

STRENGTHS

OPPURTUNITIES

Only Churros store in Ilocos Norte

Ingredients are easy to acquire at
low cost
Quality Products, Affordable Prices
No direct competitors

Diversification of Product Offerings

Expansion of Business to New
Potential Locations

WEAKNESSES

THREATS

Low Brand Awareness

Menu limited to one product only

Changing customer preferences

Customers move to healthier
lifestyle

FINANCIAL REQUIREMENTS
Fixed Capital. The business fixed Capital shall include items which are used for
more than one period and are expected to benefit future periods. The entitys fixed
capital shall include the following:
Frying Pan (deep)
Portable Gas Stove
Pastry Tip
Measuring cups
TOTAL

Estimated useful time

5 years
5 years
10 years
10 years

Price (Php)
1,500.00
2,500.00
100.00
200.00
4,300.00

Raw Materials. The raw materials needed are available in supermarkets in the
Batac City. These will be purchased weekly. To ensure availability and prevent stockouts, safety stock for one week operation for non-perishable ingredients such as oil,
flour, salt, sugar shall be maintained. The necessary raw material for the business is
as follows:
Churros
Brown Sugar 2kg
Salt
Butter
White Flour
Eggs
Vanilla extract
Cinnamon
Confectioners Sugar
Banana
Nutella
Paper Container
Oil
Chocolate Dip
Chocolate Syrup
TOTAL

Suppliers
Gemmas Grocery
Gemmas Grocery
Gemmas Grocery
Gemmas Grocery
Gemmas Grocery
Gemmas Grocery
Gemmas Grocery
Robinsons Grocery
Batac Public Market
Robinsons Grocery
Robinsons Grocery
Robinsons Grocery
Robinsons Grocery

Price (Php)
80.00
35.00
80.00
84.00
150.00
20.00
200.00
300.00
145.00
400.00
500.00
500.00
500.00
2,994.00

Cost of Labor. The business will hire four (4) personel who will be in-charge in the
stand daily. Work schedule will start from 9:00 5:00 pm. Churro Iloco shall register
its employees with the sss, PhilHealth and Pg-ibig when they are employed. For

each unit of labor that will be acquired the entity shall incur a salary expense of Php
233.00 per day, minimum salary for small enterprise in Region 1. The table will
show the salary expense for the first week of operation.
Four personnel

233.00 x 4 Personnel x 5 days

4,660.00

Rent Expense. MMSU charges Php 5,000 as rent expense for stand vendors. Rent
expense is paid one month in advance. In addition, a Php 15,000.00 rend deposit
shall be paid at the beginning of the first month.
Organization Cost
Procedure
Registration and verification at SEC
Preparation of legal documents
Bank Account Opening
Notarization of SEC Documents
Registration at SEC and TIN acquisition
Barangay Clearance
Pay for Business permits
Certificate of Registration at BIR
Registration as Barangay Micro Business Enterprise at the City
Treasurers Office
TOTAL

Estimated Cost
(Php)
40.00
500.00
250.00
500.00
3,500.00
300.00
8,100.00
115.00
1,000.00
14,605.00

Administrative Expenses (Supplies)

Item
Bond Paper (1 ream)
Special Books (4 pcs)
Envelopes (5 pcs)
Ballpens (12 pcs)
Stapler (1)
Staple wires ( 1 box)
TOTAL

Amount (Php)
300.00
150.00
40.00
60.00
85.00
50.00
685.00

Marketing Budget. Churro Iloco will mostly rely on the goodwill it will generate
through its innovative and high- quality food offerings. As such, we expect our
customers to share good reviews about us orally or through social media. Thus the
marketing budget is simply broken down into cash needed for the grand opening
and product launch, as follows:
DESCRIPTION
Balloons
Flyers

Free Samples

Tarpaulin
Transportation

QUANTITY
100 pieces
100 pieces
180 whole piece of
Classic Churro
*1pc of churro is
12; will be divided
in half that makes
it 6
2 2x3 ft. piece

COST
Php 200.00/ pack
of 100s
Php 1.00

1 pc Churro Php
25.00

Php 60.00/ piece

TOTAL
200.00
100.00

4,500.00

120.00
100.00

TOTAL

5,020.00

FINANCIAL PLAN
START-UP COST
First Month of operation
Particulars

Amount (Php)

Fixed Capital
Raw materials
Cost of Labor
Rent Expense
Rent Deposit
Organizational Cost
Administrative Expenses
Marketing Budget
Set-up of stand
Gas Tank
Training of personnel
Transportation Expense
Miscellaneous Expenses

4,300.00
11,976.00
18,640.00
5,000.00
15,000.00
14,605.00
685.00
5,020.00
22,000.00
574.00
700.00
500.00
1000.00
100,000.00

TOTAL
Funding Estimate
Source of fund
Investor Funding
Owner 1
Owner 2

Amount (Php)
20,000.00
20,000.00
TOTAL

Bank Loan
Bank 1
Bank 2
Non-Bank

40,000.00
20,000.00
20,000.00
20,000.00

TOTAL

60,000.00
100,000.00

HUMAN RESOURCES
1. Manager/Supervisor
Manager/Supervisor is primarily responsible for preparing food items to be
used in all menu items. He/she is also responsible for receiving inventory and
verifying the orders.
Duties also include:
Presents a clean-cut, neat and professional image
Resolving customer complaints
Answering customers' questions, and provide information on procedures or
policies
Preparing all menu items using standard facility equipment ensuring quality
and efficiency and customer satisfaction
Assumes responsibility for quality of products prepared and served
Monitoring stocks of ingredients and food items and with the preparation of
inventory supply orders
Receiving delivered food stocks and supplies, verifying receipt of ordered
items.
Stores and rotates all products properly follows FIFO (first-in, first-out)
Ensuring that all items meet or exceed food safety standards
Ensuring proper use of all equipment per manufacturers and company
specifications
2. Cashier
Responsible for assisting the Manager/Supervisor and accepting payment
from the customers for products provided.
Duties also include:
Receiving food orders from server
Entering acquisition into cash register to compute total buy price
Receiving payments and present change to customers
Maintaining enough amounts of change in cash drawer
Balancing cash drawer and receipts; documents discrepancies
Keeping accurate time sheets daily
Checking that orders have been correctly delivered and charged for serving
customers in a pleasant and courteous manner
Reporting any issues to the Manager/Supervisor
3. Cook
The cooks job isnt mainly making the churros mixture, prepares and cooks
the churros, he/she also maintains the cleanliness of the kitchen area.
Duties also include:
Inspect food preparation and serving areas to ensure observance of safe,
sanitary food-handling practices
Season and cook food according to recipes or personal judgement and
experience
Observe and test foods to determine if they have been cooked sufficiently,
using methods such as tasting, smelling, or piercing them with utensils
Weigh, measure, and mix ingredients according to recipes or personal
judgement, using various kitchen utensils and equipment
Portion, arrange, and garnish food, and give the food orders to server
4. Server
Duties include:

Attend to customers upon entrance

Present menus
Take/serve orders and answer questions or make recommendations for other
products
Collaborate with other employees
Giving order form to the cashier for billing
Deal with complaints or problems with a positive attitude

Marketing Strategy
Churro Iloco will host a grand opening and product launch with free samples
on December 5, 2016. A special Spotify Playlist shall accompany the event. Flyers
shall be distributed and balloons shall be set up around the stand.
To guide the organization and to leave a distinct impression upon its
customers, Churro Iloco stand shall bear a sign with Churro Iloco logo and shall be
decorated in a way that reflects Churro Iloco mission and vision, which will be
displayed prominently on its stand. The point-of-sale display will be done in a
creative manner to appear visually appealing to potential customers.

Churro Iloco will position itself as a leader in the sweet snacks market by
offering unique products that will satisfy customers cravings and budget. This
product differentiation strategy is expected to capture the attention of the academic
community.
Our marketing strategy will include:

Establishing a website

We will establish a website for our business and all the relevant information
needed. This information entails our address, our phone number, the list of our
products offerings with their corresponding flavors and prices and a place where our
prospective customers can place or reserve their respective orders.

Churro Iloco Cards

We will be giving free Churro Cards that rewards our repeat customers for
their loyalty. They earn loyalty points each time they come and buy to our food stall.
Every purchase will be equivalent to points. Every time they buy our products, they
will be reminded that they are coming closer to earning a free Churro snack from us.

Use of Social Media Platforms

We will be at every social platform that our customers are on. This most
definitely includes Facebook, the undisputed king of social media and Instagram
where we can show photos of our delectable food and fun images of your staff and
customers.

Offer delivery

Offering a delivery service can raise awareness for our business. You dont
really need to do the delivering ourselves. We can partner with a delivery services
within our area.

Creating local buzz

We will reach out to local magazines, newspapers, and radio stations, to

come for a free snack and do a piece on our business. Reviews will appear on
their publications for their entire circulation/audience.
We will post those reviews in your food stall and on social media for a little
proof that experts and critics love our place. According to a research, even if
people have been eating for a particular business for ages, statistics show the
psychological effect (confirmation bias) produces more money getting spent
there.