Valerichelle
Food Services
Inc.
A Proposal to Operate an
Orange Brutus Branch in
Bugo, Cagayan de Oro City
Executive
Summary
Executive
Summary
Services
o Great Food
o Clean and friendly environment
o Low prices
o Healthy Dishes
Customers
o DMPI Workers includes Project Hires and Contractual
o Students
o Workers & Residents
o Travelers
Management
o Valer, Michelle, Richard
Objectives
a) Open an Orange Brutus outlet at
Bugo, CdO on June 1, 2005
b) Sales of Ps 5.6 million the 1st year and
Ps 6.2 million in Year 2.
c) Keep Food cost below 45% of revenue
d) Maintain control – costs & operations
Mission
Orange Brutus will strive to be a great place to
eat combining highest quality food at
unbelievably low prices in a clean and friendly
environment. We want fair profit for the
owners, and a rewarding place to work for the
employees.
a) Bautista VP
b) Comique MB
c) Siwagan RR
Start-up Summary
Particulars Amount in PhP
Start-up Assets
Franchise Fee 300,000
Warranty Deposit 50,000
Sub-total 350,000
Leasehold Improvement 200,000
Operating Equipment / Utensils 500,000
Initial Inventory 75,000
Sub-total 775,000
Motorcycle - for delivery 75,000
Total Start-up Assets 1,200,000
Start-up Expenses:
Start up Cash on Opening day 108,000
Building Rental – for 6 months 90,000
Registrations, permits and licenses 60,000
Store Launching/Opening Activities:
Advertising - (see details in Exh ) 42,000
Sub-total 300,000
Grand Total – Requirements 1,500,000
Funding:
Owners' Equity
Bautista, Valeriana 800,000
Comique, Michelle 400,000
Siwagan, Richard 300,000
Total Investment 1,500,000
Start-up Capital
Start-up Capital
Opening Cash
Franchisee fee /
Balance
Warranty Deposit
Expenses
Initial Inventory
Capital Assets
International
Port
Jeepney
Station
CALTEX
Bukidnon, Davao
To Puerto Barangay Hall SHELL
PETRON
Bus
Station
Cagayan de Oro
Floor Plan
O RAN GE BRUTUS
Bugo, Cagayan de Oro City
Group 5 ( name)
PROPOSED FLOOR PLAN
18 m
7m Male
CR 11
Female Seats
CR
Working Area Condiments/
Freezer Ref Garbage
Aircon
Storage
Kitchen
Grill 24
Seats
Supplies
Garbage
Ref
Counter Aircon 30
Seats
Tools/Eqpts
Aircon
Condiments/
Garbage 18
Seats
24
Seats
Summary of Section and Area Dimension
Section/ Area Dimension (m) Size
Eating Area 11 x 5 55 m2
TOTAL 18 x 5 90 m2
Seating Capacity
Area Table & Chairs Seating Capacity
Inside Long side-table 11
6 tables for 4 24
6 tables for 4 24
3 tables for 2 6
Outside 10 tables for 4 18
6 umbrella-tables for 4 24
TOTAL 107
High visibility
Easy access to all destinations –
Bukidnon, CdO, Butuan, etc
Heavy blue-collar worker makeup in
the community
No over abundance of competition in
the area (same type)
Services
Services – provide quality food 7 days a week
Competitive Comparison
• Lower price point
• No tipping
• Speed of service
• Clean, aircon
Future Services
• Slow and cautious growth during its initial start-up phase
• Franchiser continue its food technology and development
and will share to all franchisee
• Target to introduce new product – 1 for each quarter
Market Analysis
Summary
Market Analysis Summary
Market Segmentation
Market Needs / market survey
Wants Variety and flavor in its food
Seeks strong value at low prices
Looks for speed of service
Wants a convenient location for dining
Appreciates promotional items and activities
Insists upon a clean, cool, friendly and attractive dining environment
Market and Industry Analysis
Competition
Ave Annual Ave Ave.
Sales Sales/Mo. Sales/Day
Outlet /Restaurant
3) Outside carenderias:
Marketing strategy
Pricing
Positioning
Marketing Tactics
Promotion
Marketing Program
Sales Strategy
Estd No. of Customers / Frequency
Annual
Particulars Annual Monthly Daily
Amount
Grand Opening
Budget
Sticker design
Orange Brutus
Delivery
Bugo Highway
857-8888/74-8888
Poster & Flyer design
Orange Brutus
Bugo Highway,
Fronting Del Monte Cannery
857-8888/ 74-8888
Free
Free Ice
Ice Tea
Tea on
on the
the Opening
Opening Day!
Day!
Try our Power P25 Snacks (with Iced
Tea)
Brutus Power Meals for as low as P29
only
Brutus Budget Meals for P39.00 only
(With Rice & Softdrink)
•Vegetable Lumpia & BBQ
•Vegetable Lumpia & Beefstew
•Vegetable Lumpia & Pork Adobo
•Vegetable Lumpia & Chicken Wings
•Vegetable Lumpia & Ham Steak
Home
Home of
of the
the Best
Best Burgersteak
Burgersteak &
&
Fresh
Fresh Fruit
Fruit Shakes
Shakes
Streamer design
Orange Brutus
Bugo Highway, fronting Del Monte Cannery
Flyers
Gantt Chart for the Activities on Each Stage
Introduction Stage
Activities/ Month 1 2 3 4 5
Radio
Grand Opening
Flyers
Stickers
Growth Stage
Activities/ Month 1 2 3 4 5
Flyers
Stickers
Maturity Stage
Activities/ Month 1 2 3 4 5
Flyers
Decline Stage
Activities/ Month 1 2 3 4 5
Flyers
Advertising Budget Summary
Estimated
Stage Promotional Activities
Cost
Introduction
rand Opening 500
1,000
Priest 500
1,150
Hotel Accommodation of Guest
1,000
Balloons - 2 dozens 33,600
1,800
Flowers - 2 toppery stand 400
1,250
800
Radio – production 42,000
Growth 400
Radio
Flyers –- 200
airtime
pcs3 weeks 500
900
Streamers - 5 pcs
Stickers - 200 pcs
Maturity Flyers -- 40
Posters
ubtotal 200pcs
pcs 400
Subtotal 400
Stickers - 500 pcs
Decline Flyers
Flyers - 200
- 400 pcs
pcs 400
Subtotal 400
ubtotal
TOTAL 43,700
Management
Summary
Organizational Structure
O RANGE BRUTUS
Bugo, Cagayan de Oro City
Valerichelle Food Services Inc.
PROPOSED SET-UP
Franchise Owners
Counter Supervisor
Admin Staff
2) Comique MB – will act as HR Manager and will focus on the personnel issues.
She has earned her Bachelors of Science in Industrial Engineering from the
University of San Carlos. She has three (3) years experience as HR specialist at
Del Monte Philippines, Inc.
INCOME
Total income (in '000 pesos) 18,069,999 10,942,328 29,012,327
EXPENDITURE
TOTAL (in '000 pesos) 13,083,099 8,665,676 21,748,775
Per capita - food consumed outside the home 963.08 247.84 541.17
Average per month 80.26 20.65 45.10
2) Initial franchise fee is Ps 300,000 plus a
security deposit of Ps 50,000. The term is 5
years renewable with a 20% renewal fee based
on the latest franchise fee.
3) The franchise fee includes the following:
Equipment – stainless cooking wares,
kitchen/utensils
Furniture & Fixtures – tables, chairs, air
conditioners etc
Training – management and store staff
Store Launching/Opening – provision of an
“Opening Team” for 7 days after opening
Marketing Support
4) Royalty fee is 5% of sales and 2% for Marketing
Support Fund
5) CAPITALIZATION.
Start-up capital is around Ph P 1.5 million, which
will be financed by equity as follows:
Investors Amount in Pesos
Capitalization
Siwagan, Richard
20%
Bautista, Valeriana
53%
Comique, M ichelle
27%
6) PROFIT MARGIN.
During the first year, gross profit margin is
estimated to be 55% of sales.
Supervisor 10,000
Cook 8,000
Cashier 7,000
Admin Clerk/Clerk 6,000
Crew 5,000
400,000
350,000
300,000
250,000
Profit
Sales
200,000
150,000
100,000
50,000
Break-even point
0
Loss
300
900
1,500
2,100
2,700
3,300
4,500
5,100
5,700
6,300
6,900
7,500
8,100
3,900
Units
INVESTING ACTIVITIES
Payment to Franchiser/Assets (1,125,000)
(1,125,000) - - - -
FINANCING ACTIVITIES
Bank loan
Owner's Equity 1,500,000
Decrease in Loans Payable
Withdrawals - - - - -
1,500,000 - - - -
NET CASH INFLOW 1,788,154 1,044,753 1,508,358 1,964,159 2,531,968
Cash, beginning 1,788,154 2,832,907 4,341,265 6,305,425
CASH, END 1,788,154 2,832,907 4,341,265 6,305,425 8,837,392
Projected
Balance Sheet
DESCRIPTION YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
ASSETS:
CURRENT ASSETS
Cash 1,788,154 2,832,907 4,341,265 6,305,425 8,837,392
Inventories 10,580 11,638 13,965 16,758 20,110
Total Current Assets 1,798,734 2,844,545 4,355,231 6,322,183 8,857,502
FIXED ASSETS
Leasehold improvements 200,000 200,000 200,000 200,000 200,000
Equipment/fixtures/Tables/Chairs 500,000 500,000 500,000 500,000 500,000
Motorcyle 75,000 75,000 75,000 75,000 75,000
Total 775,000 775,000 775,000 775,000 775,000
Less: Accumulated depreciation 88,750 177,500 266,250 355,000 425,000
Total Fixed Assets 686,250 597,500 508,750 420,000 350,000
OTHER ASSETS
Secuirty Deposit 50,000 50,000 50,000 50,000 50,000
Preoperating Cost - net 81,600 61,200 40,800 20,400 -
Franchise fee, net 240,000 180,000 120,000 60,000 -
Total Other Assets 371,600 291,200 210,800 130,400 50,000
LIABILITIES
Income tax payable 314,736 369,310 521,209 710,570 952,740
VAT Payable 373,035 410,338 492,406 590,887 709,065
Loans payable
Total Liabilities 687,771 779,648 1,013,615 1,301,457 1,661,804
OWNER'S EQUITY
Owner's Equity 1,500,000 2,168,813 2,953,597 4,061,166 5,571,126
Net income 668,813 784,783 1,107,569 1,509,960 2,024,572
Total Equity 2,168,813 2,953,597 4,061,166 5,571,126 7,595,698
Survey Questionnaire
Traffic Count
Occupation of All the Respondents
4% Tagoloan
Residents
4% Bugo Residents
4% Puerto Residents
Travelers
20%
Del Monte
63%
Other Co. Workers
5%
More than
30years old 21-25years
(45) old (30)
26-30years
old (37)
Analysis &
Interpretation of
Data
Traffic Count
West to CdO = 329 CdO to West = 296
332
350 338
300 272
318 331 285
250
200
150
100
8/31/2004 5:00 PM
50
8/21/2004 3:00 PM
0
8/21/2004 10:30 AM
West to CDO
CDO to West
Tagoloan Residents
20 1
Bugo Residents
0 Tagoloan Residents
5
Puerto Residents
10
Other Co. Workers
1
0
Travelers
Will
DM
Patroni Will
ze Not
Patroni
ze
Reasons for Preference – Will Patronize
120
97
100
P r ic e
80 67
Food
45
60 40 42 S e r v ic e
29 36 40 37
40
18 24
L o c a tio n
17 19
20 W ith p r o m o
58 3 4 4 7 8
1 2 0 4
3
0
Ra nk 1 Rank 2 Rank 3 Rank 4 Rank 5
Respondents: Will Patronize/ Will Not
Will Not
Patronize
7%
Will Patronize
93%