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Pamantasan ng Lungsod ng Maynila

(University of the City of Manila)


Intramuros, Manila
College of Accountancy

A Feasibility Study on the Establishment


of a Filipino Restaurant
in Circuit Makati

Ayuyao, Joreleen Marie O.


Carnicer, Jufer V.
Delos Reyes, Princess Diana G.
Dizon, Francis Arman C.
Estrella, Jasmin Ann C.
Royo, Russelle Giorgio Carl C.
Uriarte, John Niccolo M.
BSA 5-3
INTRODUCTION

The Filipinos love for food is extraordinary. Consuming four meals a day is just a
definitive proof of how fond Filipinos are of eating. These four daily meals breakfast,
lunch, merienda or snack, and dinner can sometimes be even stretched to six or seven
depending on whether or not you munch on snacks at the time.

If you look at it closely, food loves Filipinos too. With numerous establishments
catering the hungry stomachs of every Filipino, one is sure to be lured and encouraged to eat
one way or another. Eating is not just a strong way of satisfying your hunger or craving, it is
also a form of relieving stress, and a way of bonding with your family.

All around the world, Filipino food is slowly making its way climbing up the ladder
of prominence, and its not just because of the dish that benchmarked our cuisine the
almighty adobo.

Often called the original fusion cuisine, Filipino food showcases an intricate blend of
Spanish, Chinese, Japanese, and Western flavors that becomes a whole new being of its own.
BALISUSO, a to-be-made restaurant which not only honors, preserves, promotes,
and showcases Filipino cooking and culture, offers not just sweet, tangy, and savory Filipino
dishes weve always loved, but also the reliving of eating rice wrapped in banana leaves.

In Balisuso, quality is the main priority. Each serving of balisuso alone can satisfy the
palate of the customer for it is made with the right combination of herbs and spices that will
truly have you coming back for more. Its menu offers an exceptional collection of traditional
Filipino food, from its appetizers down to its dessert section.

Located at the fabulous city of Makati, Balisuso aims to cater those who love Filipino
cooking, like those who work in high-rise building offices who needed a break from the
hustle and bustle of corporate life, or those who just wish to go back and enjoy the traditional
way of eating home-cooked meals and away from the usual fast food meals. Its exterior is a
mix of traditional and modern aesthetics. Inside, on the other hand, is like that of an early
classic Filipino mansion, from the framed pictures on the wall, the classic figurines, the cozy
seats, the wooden tables, and the setup screen which plays iconic Filipino movies of the
legends in Philippine show business. Truly, this concept aims to make you feel like you are
transported back in time, without having to leave the reality of the present.

STATEMENT OF THE PROBLEM

To gauge the feasibility of establishing a restaurant in the city of Makati, the


following aspects of the business must be considered: marketing, management, technical,
financial, and socio-economic. It is also crucial to determine the possible risks that may arise
during the operation of the business.

The following questions will serve as a guide for this study:

Management Aspect
1. Will the business have an organizational structure with an effective and efficient
assignment and segregation of duties and responsibilities?
2. Will the assigned duties and responsibilities be appropriate for the members of the
organization?
3. What is the proper compensation scheme for those in management and the
employees?
4. What should be the qualifying standards for hiring employees?
5. What internal control would suit the needs of the organization?
6. What kind of rules and regulations shall be set for its members?
7. Which legal requirements are needed in order to put up a restaurant in the area?

Marketing Aspect
1. Does a substantial demand exist for the services that will be offered?
2. What is the target market for the business?
3. Who are the main competitors in this line of business in the area?
4. What innovations would distinguish the restaurant from others in the same line of
business?
5. What marketing plan should be adopted to ensure the efficient and effective way of
promoting the restaurant and its food and services?
Technical Aspect
1. How will the organization ensure the high quality of service for the customers?
2. What will be the necessary processes for the conversion of materials and labor to the
services provided for the customers?
3. Which facilities, equipments, and supplies are required to be used in the restaurant?
4. What is the most effective ideal location for its operations and profitability?
5. What are the favorable amenities associated with the restaurant business?

Financial Aspect
1. What will be the initial investment for this business?
2. What financial assumptions are considered reasonable for the purpose of this study?
3. How will the business perform in its financial statements for the first 5 years?
4. What will be the estimated return on capital for this business?

Socio-Economic Aspect
1. Will the services have a positive effect on the community?
2. Will the organization pay the right taxes in accordance with the law?
3. Will the organization follow the business ethics set for a harmonious relationship
between employers and employees?
4. Will it comply with the requirements in sanitation including proper waste disposal?
5. How will it promote integrity and policy-adhering businesses in the community?
6. How will the organization cooperate with the government in order to improve food
businesses in the country?

OBJECTIVES OF THE FEASIBILITY STUDY

The objectives laid out by the organization will guide the existence of the business
towards its success. Every business organization aims to achieve profit and in the long-run,
maximize the shareholders wealth. The following specific objectives will serve as the
blueprint towards the accomplishment of the firms goals, as well as its feasibility:

Management Aspect
To form and establish an organizational structure which will reflect an effective and
efficient arrangement, segregation, and assignment of duties and responsibilities;
To determine the appropriate and specific duties and responsibilities to be assigned to
every member of the organization;
To know the proper compensation scheme for the management and employees (or
members);
To establish an effective and efficient human capital by setting good qualification;
standards during hiring and on current performance;
To design an internal control that would suit the managerial needs of the organization;
To formulate rules and restrictions on the members of the organization; and,
To identify the necessary legal requirements and steps in putting up a restaurant
business

Marketing Aspect
To determine whether a substantial demand exist for the service/ product to be
offered;
To identify the target market;
To identify the key competitors in the line of restaurant business along the area;
To formulate an innovation that would distinguish the organization from other
business offering the same kind of service/ product; and,
To formulate a marketing plan that will be adopted in order to effectively and
efficiently market the service/ product

Technical Aspect
To offer high-quality service/ products to the costumers;
To determine the systematic processes necessary for the conversion of raw materials
and labor to services/ products to be offered the organizations customers;
To identify the significant facilities, machinery, equipment, and various supplies to be
used in the processes of the restaurant business;
To find a suitable location for the restaurant business that would positively affect the
its operations and profitability; and,
To determine favorable amenities associated in putting up a restaurant business
Financial Aspect
To determine the amount of the initial investment to be implemented in the restaurant
business;
To set financial assumptions reasonable in this feasibility study;
To make an analysis of the financials of the proposed business in five (5) years time
including its financial statements and vertical, horizontal, trend, and ratio analyses;
and,
To calculate the estimated returns on capital of the business organization

Socio-Economic Aspect
To determine if the projects provide for a positive effect especially integrity and
policy-adhering business organization in the community;
To follow the rules and regulations set by the local and national government in
proper tax payment that will improve the food businesses in the country;
To provide job opportunities to Filipinos especially those who are involve in food
processing;
To follow the corresponding business ethics for both the employer and employee in
the workplace;
and,
To comply with all the requirements in sanitation including its proper waste disposal
specifically in the line of food business;

SIGNIFICANCE OF THE STUDY

Through rapid technological advancements and social changes, the opportunity for
restaurants and carinderias to serve home-cooked meals is massively downplayed by the
presence of fast food establishments.

This feasibility study on the launching of a Filipino restaurant was generally


formulated to honor, preserve, promote and showcase Filipino cooking and culture. This
restaurant aims to awaken patriotism and appreciation of our very own cuisine. Eating home-
cooked meals also proves to be a healthier option than eating ready-to-go food which
contains unhealthy preservatives and ingredients that contribute to obesity and shorter life
span.
In line with this is the restaurants intention to showcase balisuso, the form of rice
served wrapped around a banana leaf. This, being the restaurants namesake, is also their
specialty.
Another essence of this restaurant is the concept of bringing you back to the old times
of peace and quiet, while still being in one of the busiest cities in the country. This restaurant
is a sanctuary on its own- a place where you can unwind, eat good local food at a reasonable
price, and experience the simpler times.

With the establishment of this restaurant is its goal of maximizing profit, and helping
the government thru paying the right taxes every time. Businessmen can also benefit through
the gathered data in this study as they can use them in establishing the same type of business
or improving the business they currently own.

SCOPE AND DELIMITATION

This study will discuss the feasibility of setting up a Filipino restaurant located in
Makati City and how the present and potential customers will embrace and respond to the
services and innovations of the business. In line with this, there are many restaurants that
offer different novelties that entice food lovers to eat with them.

The coverage of this study is comprised of the various aspects of organization and
management, marketing, operations, technical and financial areas related to the business. The
researchers gathered information from different restaurants which offer Filipino cooking in
the proposed area.

This restaurant aims to render its services to residents, employees, and mall-goers
within the locality of Makati City, specifically in Circuit Makati. These will be the initial
target market of the restaurant. The competitors that the business will consider are the
restaurants within the area that serves Filipino food.
RESEARCH AND METHODOLOGY

The proponents used different techniques in gathering information to support the


study.

I. SURVEY
The proponents of the study conducted survey among 399 respondents to
get their opinion regarding restaurant business. These respondents came from the
2016 total population of ten (10) neighboring barangays in Makati City. It was
used so that the proponents would be able to know the respondents perception
and preference regarding to their proposed business.

II. SLOVINS FORMULA


The proponents used the Slovins formula to determine the needed number of
respondents.

=
1 + 2
Where,
n = no. of respondents
N = total population
e = error margin / margin of error, 5%
113772
=
1 + (113772)(0.05)2
= 399

III. SAMPLING TECHNIQUES

The proponents used stratified random sampling to gather information


from the target market. Survey questionnaires were distributed using paper and
Google forms to save effort, time, and money. These questionnaires were
distributed to know further the peoples demand regarding Filipino restaurant by
using the specific number of persons or respondents from different area within the
locality.
STRATA 2016 WEIGHT SAMPLE SIZE SAMPLE SIZE PER STRATUM
Carmona 3167 0.02783 399 11
Kasilawan 5990 0.05265 399 21
Tejeros 13949 0.12261 399 49
Olympia 20626 0.18129 399 72
Sta. Cruz 7340 0.06452 399 26
Singkamas 7506 0.06598 399 26
Valenzuela 6427 0.05649 399 23
La Paz 7492 0.06585 399 26
Bel-Air 24123 0.21203 399 85
San Antonio 17152 0.15075 399 60
TOTAL 113772 1.00000 399

IV. SURVEY QUESTIONNAIRE

In order to have an access on the pertinent information and gather


important data about customers taste and preferences when it comes to restaurant
food products, services and costs, the researchers agreed to use survey
questionnaires. The researchers used the checklist format. The group provided 399
survey questionnaires which are all in English language. By these questions, the
researchers will be able to determine customers taste and preferences when it
comes to restaurant food products, services to be provided for customer
satisfaction and amount of food customers are willing to pay for.

V. 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 Circuit Makati to determine the rental
payments and the possible layout of the store offered by the management.

VI. RESEARCH
The proponents used the information from different libraries and surf the
internet as a source of their research in order for them to gather information about
the business, legal and regulatory requirements, location of the business and other
information that can help the study.
VII. MAPPING

Figure 1 Makati City Map

The study covered ten (10) neighboring barangays in the District I of the
City of Makati as the target market of the study as shown in Figure 1. The ten (10)
neighboring barangays comprises of Barangays Carmona (where the Circuit Lane
Mall is located), Kasilawan, Tejeros, Olympia, Sta. Cruz, Singkamas, Valenzuela,
La Paz, Bel-Air and San Antonio.

VIII. SEARCH OF INTERNET, BOOKS AND LIBRARIES

The proponents used the information from different libraries and surf the
internet as source of their study in order for them to gather information about the
business, the location, 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. This industry includes
restaurants, fast foods, schools and hospital cafeterias, catering operations, food
carts and food trucks. Restaurants and fast foods mainly contribute to the food
service industry.

Restaurant is generally a public place, which opens to all for selling food
and beverages to any person and people. It comes from the work Rest and Rent,
where the guest, client or other peoples take their food and beverage. It offers
offer a large menu including a variety of cuisines which are cooked and prepared
and is eaten at the premises.

Like every other country, the food industry has flourished very well in
Philippines. Filipinos love to eat and that is the reason why you will see a lot of
restaurants and fast foods 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 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.

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
food chains. 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. It
includes checking the cleanliness of the place and freshness of the food, guarded
premises, parking area, ambiance and landscaping, building design, lighting, and
even music.
EXECUTIVE SUMMARY

NAME OF THE BUSINESS

The name of the restaurant establishes the first impression for potential customers.
A catchy and unique name greatly affects the marketability of the business. Filipino cuisine is
the proposed theme of the restaurant because of its appeal to the Filipino masses. The
proponents chose Balisuso as the name of the restaurant because of its popularity among
Filipinos especially those who live in the provinces. Balisuso is a cone shaped steamed rice
wrapped in Banana leaves and is commonly serve in Bulacan, Bohol, Cebu and many other
provinces. Balisuso is always on the table for special occasions like fiestas, birthdays,
anniversaries, weddings and other Filipino gatherings because it pairs well with different
dishes. Moreover, the Balisuso rice serves as the trademark of the restaurant can be inferred
from its name which helps the familiarity with the target customers.

LOCATION

Figure 2 Store Location

The proponents chose to put up the restaurant on the Second floor East Wing Circuit
Lane Mall, Carmona, Makati City. The site is in the center of different residential areas,
hotels and other commercial areas. The number of restaurants around the location is
significant and will be able to help the company to analyze the market demand around the
vicinity.
MANAGEMENT ASPECT

The management aspect discusses the form of ownership of the business, its
organizational structure, the legal requirements and procedures needed in registering the
business to government agencies, which are essential to start the business operations. The
firms rules and policies, which serve as guidelines to build and maintain the firms name and
operation as a while, is necessary to start and keep track of the whole operation of the
company and keep it in good condition. The management will also adopt preventive measures
and control to minimize the risk on operations.

It will also provide information about the labor required, employees compensation,
incentives, working schedule, job description and duties, and training. This is information is
important to the management because manpower will serve as a key to the managements
success. 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.

SOCIO-ECONOMIC ASPECT

While businesses should be focused on gaining profits through operations, it is also


important to determine whether it will bring positive effects on the members of the
community and this is what the restaurant will try to achieve. The business will follow the
rules and regulations set by the government for the business and will make sure to follow
standards that have been set in for those in the same industry. Through this, the business aims
to be an example of good practices to earn the trust of the people in the community,
establishing solid relationships with its customers.

MARKETING ASPECT

The key objects of this project feasibility study are the people who love Filipino
dishes, and to cater the needs of persons who need a break from a tied-up schedule in the
busy life of Makati City. The marketing aspect features the concepts and subsequent
implementation of its marketing plan in the following categories: services, corresponding
prices, place, promotion, physical evidence, process and people. The basic market need is to
have an offering of a variety of options for each delicacy at a reasonable price that will not
compromise and still renders excellent performance that invigorates the clients well-being.
Strengths, weaknesses, opportunities, and threats are also taken into consideration. Balisuso
offers diverse and high quality Filipino cuisines that will give customers enticing experience
that is personal, stress relieving and gives them the at home feeling.

FINANCIAL ASPECT

(Wala pa)

TECHNICAL ASPECT

(Wala pa)