AMA Computer Learning CenterBurgos Ave., Cabanatuan City

BUSINESS PROPOSAL FOR THE AMA’ers RESTAURANT

October 2010

A study presented for the subject Project Management

AMA Computer Learning CenterBurgos Ave., Cabanatuan City

By the:2nd Year Students of CSDP

(Computer Systems and Design Programming) course

By:RAY ALLAN C. ABESAMIS

1st Semester2010-2011

Presented to:Ms. Michelle Farin

Professor

Chapter 1

DESCRIPTION OF PROJECT

I. Introduction

This proposal is to introduce the creation of a new restaurant that will rise

at the footsteps of AMA ACLC and Megacenter the Mall as well. The new

restaurant, will be called AMA’ers Restaurant, due to the fact that the AMA

campus sits just behind the back of the establishment. Quality food and service

@ an affordable price is the main motto for this one. It will also feature a free wi-fi

access for customers who wish to access the internet so it will be a non-stop

shop, with food, some drinks and a cyber offering attractions via this one

scheme.

The AMA’ers Restaurant, a one storey fastfood establishment, having

been aware of the fact that the area (Melencio St. fronting Megacenter and near

populated schools) is a huge potential market for food cravers and sports a

strategic location, was to be built here in this location. The area is a big market

for potential customers, being aware that there are only three small restaurants

nearby in such a good location, which is Jobeas, Cabanding and the like.

However, we, @ AMAer”s Restaurant, do promise you to have a fine dining as

well as unforgettable relaxing experience in a cozy atmosphere with our

customer-friendly and well-oriented staff smiling and ready to take your orders!

At the back of the site is the AMA ACLC building. This will not be

associated in any way or another with the AMA school, just for the namesake

only. Quality food and service @ an affordable price is the main motto for this

one. It will also feature a free wi-fi access for customers who wish to access the

internet so it will be a non-stop shop, with food, some drinks and a cyber offering

attractions via this one scheme.

Initially, the primary target will be the students that flock nearby, preferably

those studying at AMA Computer Learning Center (ACLC), Statesman College,

CRT, NEUST as well as Megacenter the Mall customers and workers who seek

for a more affordable yet delicious and sumptous meals.

Providing this service will directly allow the business owner to increase

profits and generate more restaurant business.  Additionally, an indirect result will

be increased recognition within the community.

A simple menu consisting of the food items already offered would be

sufficient to entice potential clients.  Local vials, Filipino traditional food is

available.

Providing this service will directly allow the business owner to increase

profits and generate more restaurant business.  Additionally, an indirect result will

be increased recognition within the community.

Initially, the primary target will be the students that flock nearby, preferably

those studying at AMA Computer Learning Center (ACLC), Statesman College,

CRT, NEUST as well as Megacenter the Mall customers and workers who seek

for a more affordable yet delicious and sumptous meals.

Potential customers will be informaed of the new service through flyers

inserted into the dinner menus.  Table toppers can also be made at no cost to

you and placed on each restaurant table.  Additionally, print materials marketing

the service will be distributed to the area businesses.

Chapter 2

MARKETING ASPECTS / STUDY

A. Marketing Program / Strategies

Several marketing strategies can be employed.

Fliers can be distributed to reach out to surrounding potential

customers so that they will know of the upcoming restaurant

Have some sort of attractive promos and discounted value

meals. This can be a tempting offer for students if you lower the

price, without sacrificing financial downside effects.

You could get discounts over some meals, and it can include a

drink to attract hungry customers eager for a meal preferable

during lunchtime.

Time-specific bounceback

o The traditional restaurant bounceback “bounces”

customers from busy hours to off-peak hours. Offer a

discount or reward during your slowest hours. For

example, you could offer customers a coupon for three

dollar cocktails before 9:00 pm.

Buy one get one free

o This promotion is especially effective on customers that

have patronized your restaurant alone. It often incites

them to bring a friend next time. It can also be a good

way to get couples back in the door.

Product-specific discounts.

o a coupon that offers customers two dollars off their next

appetizer purchase. A product-specific discount is more

effective than a general discount. It encourages

customers to purchase an item they might not try

otherwise, and the more menu items a customer tries

and loves, the more reasons they have to become a

regular.

Free item with purchase.

o Offering new customers a free treat with their next

purchase is often an irresistible temptation. One example

of an enticing bounceback would be to offer a free

dessert with the purchase of an entrée and drink.

B. Market Share

Market share will be at a whopping projected 40 percent of the

market share of diners within the area. The others are Jobeas (35 %),

which currently holds the largest share of the pack and remaining one is

Cabanding (25%), an old-timer in the business. We, at AMAers

Restaurant promises to have a 99.9% clean dining environment because

we are aware that cleanliness is one of the most attractive part in putting

up a dining business. The building will be painted a light color scheme so

as it will be an eye candy of sorts. Employing a clean, safe, secure and

delicious dining experience and environment is our key strategy to target

and hold a bigger share of the projected market!

Economic and Social Behavior

The establishment will have a “go-green, so-clean, let’s value

mother earth!” slogan.

Community Involvement

The business, small as it may be, will have an organized method of

disposing garbage in a green and humane way. The establishment itself

will donate to the Bahay Bata Foundation and the likes a little amount of

money to aid the poor and the needy homeless. It is our way of thanking

others in this manner. The business will be an active member of youth

clubs, sports clubs as well as the Restaurant Operators of the Philippines,

which has guidelines and strict standards for the well-being of the

restaurant.

Market forecast conservation percentage, first 5 years.

A market forecast is a core component of a market analysis. It projects the future numbers, characteristics, and trends in your target market. A standard analysis shows the projected number of potential customers divided into segments.

This example of a simple market forecast defines two target market segments and projects the potential customers in each of those segments by years, for five years.

Market size forecast

Target Market Forecast – first five years Projection

Company 2010 2011 2012 2013 2014 CAGR

AMAer’s 0% 40% 50% 60% 70%

Jobeas 60% 40% 30% 20% 20%

Cabanding 40% 20% 30% 20% 10%

In the market forecast, the example numbers indicate that there are 3 restaurants included in the market, and that number is growing at an estimated ten percent per year.

These numbers are estimates. Nobody really knows, but we all make educated guesses. The developers of the plan researched the market as well as

they could and then estimated populations of target users in their area and the annual growth rates for each.

Market value

Normally you would also look at market value, not just market size. For

example, although the high-end home segment is 2.5 times larger than the small

business segment as measured by number of customers, the small business

customer spends almost four times as much as the home office customer.

Therefore, the small business market is a more important market in terms of

dollar value.

C. Forecast of Sales – cost selling price

The business itself will generate a good income turnout.

Meals:

Student Meal: (with rice and vial) P 30

AMAer’s Special (special meal) P 50

Vials

Dinakdakan

Sisig

Dinuguan

Sinampalukang Manok

Calderetang Manok

Adobong Baboy

Papaet

Etc.

Drinks

Coke 12 oz. 14

Sprite 25

Coke in Can 25

SMB P35

Red Horse P40

Forecast of Sales – Cost Selling Price

AMAer’s Special Chicken SisigNo. Given Name Amount2 cups (180 g) flour P 30.00

1 cup less 1 tablespoon (90 g) unsalted butter

P 50.00

3 Egg P 15.00

2 large bunches of chicken beef with firm, leafy green tops, weighing about 1 2/3 pounds (700 g) in all

P 45.00

1 A scant cup (250 ml) whole milk P 40.00

3-4 tablespoons olive oil P 60.001 Butter and flour for the pan P 45.00

2-3 cups dried beans P 40.00

6 ounces (150 g) mild creamy ricotta P 50.00

Butter and flour for the pan P 45.00

Total P 390.00

AMAer’s Graded Chili Pepper Pasta SauceNo. Given Name Amount12 cherry tomatoes shopping list P 30.00

24 onion P 15.001/4 cup extra virgin olive oil P 60.00

2 garlic cloves peeled and sliced very thin

P 15.00

1/2 jalapeno chili pepper or more to taste cut into thin rounds

P 20.00

1 teaspoon salt P 15.00

1 pound spaghetti P 100.00

Total P 245.00

Chapter 3

MARKETING STUDY

No. Of Employees and their Respective Salaries:

No. Employees Salary Per Month Total

3 Chefs P 6,000.00 P 9,000.00

2 Accountants P 5,000.00 P 10,000.00

3 Waiters P 3,000.00 P 9,000.00

2 Dishwashers P 3,500.00 P 7,000.00

Total P 35,000.00

A. MANAGEMENT STUDY

Number of employees, salary

There will be 12 employees for the upcoming restaurant. Their

salaries range from P 3,000 from the lowest level up to P 6,000 for the

Supervisor. There will be 2 Chefs, 2 Accountants, 3 waiters as well as 2

dishwashers.

Single or Sole Proprietorship

The type of ownership is Single Proprietorship for better flexibility

and to avoid management conflicts. The business itself will generate

income thru customers eating at the restaurant, preferably form the giant

mall just in front of the establishment.

A sole proprietorship, also known as a sole trader or simply a

proprietorship is a type of business entity which is owned and run by only

one individual and where there is no legal distinction between the owner

and the business. All profits and all losses accrue to the owner (subject to

taxation specific to the business). All assets of the business are owned by

the proprietor and all debts of the business are the proprietors'. This

means that the owner has no lesser liability than if they were acting as

individual instead of a business. It is a "sole" proprietorship in contrast with

partnerships.

A sole proprietor may do business with a trade name other than his

or her legal name. Sometimes a sole proprietor is required to file a doing

business as statement with a local government even if it is the same as

his actual name for certain types of businesses or as a requirement to

open a business banking account.

Chapter 4

TECHNICAL STUDY

Equipments

Different tools and machineries are necessary in building this type

of business. These are: a pair of dual two Rinnai 2 burner gas stoves, a

microwave oven, a barbecue grill stand, a deep-fry trench for cooking fried

stuff, a heating oven, a cooler, 2 refrigerators, burger maker, blender,

automatic cutter for shredding purposes will be needed for the operation.

Additionally, a set of solid, stiff monoblock tables and chairs are necessary

as well as a counter and food trays, etc.

Chapter 5

Legal and Taxation

In putting up any kind of business, first and foremost is securing a

certificate of registration for your business name in any of these agencies:

Department of Trade and Industry (DTI) – for single proprietorship

Securities and Exchange Commission (SEC) – for partnerships or

corporations

Cooperative Development Authority (CDA) – for cooperatives

After getting the said certificate of registration, please visit their following

branches:

Barangay Hall – secure a barangay clearance to operate your business

Local Government Unit (LGU) – visit the municipality or city hall office and

process your business permit

Bureau of Internal Revenue (BIR) – apply for a business taxpayer

identification number (TIN), register your books of accounts, point-of-sales

(POS) machines and receipts

At this point, you may now legally start your business operations, but you’ll need

to then register your employees (which may include yourself) to the following

agencies:

Social Security System (SSS) – secure an SSS number for yourself and

your employees

Department of Labor and Employment (DOLE) – for businesses with five

workers or more, register your business with DOLE

Home Development Mutual Fund (HDMF) – as required by RA 7742, SSS

members earning at least P4,000 a month must be registered with HDMF.

This agency administers the Pag-Ibig Fund.

Philippine Health Insurance Corp. (PhilHealth) – all employers of are

required to register their employees to this agency as stated in the New

National Health Insurance Act (RA 7875 / RA 9241). PhilHealth manages

and administers the government health care system.

BIR Registration Permit

Upon approval of the SEC Articles and By-laws, your corporation begins

to acquire a legal personality apart from you and the other owners. Likewise, a

new taxpayer is being created and by virtue of the memorandum of agreement

(MOA) between SEC and BIR, new corporations are now assigned a new tax

identification number (TIN). The corporation's next step then is to regularize the

registration of such TIN with the BIR with the following requirements:

Application for registration properly filled out with necessary details and

tax types to be enrolled upon, and signed by the authorized personnel;

Copy of Articles of Incorporation and By-laws duly approved by the SEC;

Copy of the lease contract for the office space;

Payment of the annual registration fee of P500.00;

Payment of the documentary stamp tax (DST) of P1.00 per P200 par

value or fractional part of the subscribed capitalization in the Articles.

Payment should be made within 5 days of the month following the month

of SEC approval of Articles, otherwise, penalties would be imposed.

Documentary stamp sold at P25.00

Upon completion of the above the BIR will process with the computer system the

taxpayer's files and issue the following that requires to be posted in any

conspicuous place of the office:

BIR Certificate of Registration; and

Ask for BIR poster.

Along with the registration of the BIR is the registration of the books of accounts

(especially manual books), and official receipts, if opted to. In some cases

however, said registrations may follow for practical reasons that they take a

longer time like, computerized books registration requiring tests and official

receipts or invoices requiring pre-approved authority to print.

Certain reportorial requirements will be required to be filed by virtue of the

registration like the VAT/OPT returns, income tax returns, annual registration fee

for every year thereafter, audited financial statements, if any, and other reports.

Chapter 6

FINANCIAL STUDY

PROFIT AND LOSS STATEMENT

Projected

Income

Statement Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Revenue 39,271,099 45,161,764 51,936,029 59,726,433 68,685,398 78,988,208 90,836,439

Net Sales 39,271,099 45,161,764 51,936,029 59,726,433 68,685,398 78,988,208 90,836,439

Raw Material Cost 35,285,556 38,814,112 42,695,523 46,965,075 51,661,583 56,827,741 62,510,515

Salary Cost 1,176,000 1,293,600 1,422,960 1,565,256 1,893,960 2,291,692 2,520,861

Utility Cost 588,000 646,800 711,480 782,628 860,891 946,980 1,041,678

Cost of Sales 37,049,556 40,754,512 44,829,963 49,312,959 54,416,434 60,066,413 66,073,054

Gross Profit 2,221,543 4,407,252 7,106,066 10,413,474 14,268,964 18,921,795 24,763,385

General

Administrative

and Selling

Expenses

Insurance Expense 120,000 120,000 120,000 120,000 120,000 120,000 120,000

Ch

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FIN

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CIA

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Office & Miscellaneous

Expense 72,000 79,200 87,120 95,832 105,415 115,967 127,563

Advertising Expense 300,000 330,000 363,000 399,300 439,230 483,153 531,468

Amortization Expense 40,000 40,000 40,000 40,000 40,000 0 0

Depreciation Expense 838,100 754,290 678,861 610,975 549,877 494,890 445,401

Maintenance Expense 20,953 18,857 16,972 15,274 13,747 12,372 11,135

Sub Total 1,391,053 1,342,347 1,305,953 1,281,381 1,268,269 1,226,382 1,235,567

Operating Income 830,491 3,064,905 5,800,113 9,132,093 13,000,695 17,695,413 23,527,818

Financial Charges 1,634,729 1,634,729 1,634,729 1,634,729 1,634,729 0 0

Earning Before Taxes -804,239 1,430,176 4,165,384 7,497,364 11,365,966 17,695,413 23,527,818

Tax -144,763 257,432 749,769 1,349,525 2,045,874 3,185,174 4,235,007

Net Profit -659,476 1,172,744 3,415,615 6,147,838 9,320,092 14,510,238 19,292,811

CASH FLOW STATEMENT

Projected Statement Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 of Cash Flows Cash Flow from Operating Activities Net Profit -659,476 1,172,744 3,415,615 6,147,838 9,320,092 14,510,238 19,292,811Add: Depreciation Expense 838,100 754,290 678,861 610,975 549,877 494,890 445,401 Amortization Expense 40,000 40,000 40,000 40,000 40,000 0 0 Net Cash Flow from Operations 218,624 1,967,034 4,134,476 6,798,813 9,909,969 15,005,128 19,738,212 Cash Flow from Financing Activities Receipt of Long Term Debt Repayment of Long Term Debt -901,674 1,267,360 1,541,920 1,816,480 2,182,166 0 0Owner's Equity Net Cash Flow from Financing Activities -922,052 1,439,620 1,942,120 2,439,620 2,872,188 0 0 Net Cash Flow from Investing Activities 0 0 0 0 0 0 0 Net Cash Flow -703,428 527,414 2,192,356 4,359,193 7,037,781 15,401,314 20,174,015 Cash at the Beginning of the Period 953,000 249,572 776,986 2,969,342 7,328,535 14,366,316 29,767,630

BALANCE SHEET

Projected Balance Sheet (Rs.) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Assets Current Assets Cash & Bank Balance 249,572 776,986 2,969,342 7,328,535 14,366,316 29,767,630 49,941,645Inventory 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 Total Current Assets 1,449,572 1,976,986 4,169,342 8,528,535 15,566,316 30,967,630 51,141,645 Fixed Assets

Machinery & Equipment 4,375,800 3,938,220 3,544,398 3,189,958 2,870,962 2,583,866 2,325,479Premises 2,728,800 2,455,920 2,210,328 1,989,295 1,790,365 1,611,328 1,450,195

Furniture & Fixtures 438,300 394,470 355,023 319,521 287,569 258,812 232,931 Total Fixed Assets 7,542,900 6,788,610 6,109,749 5,498,774 4,948,896 4,454,006 4,008,605Preliminary Expenses 160,000 120,000 80,000 40,000 0 0 0 Total Assets 9,152,472 8,885,596 10,359,091 14,067,309 20,515,212 35,421,636 55,150,250 Current Liability Current Portion of Long Term Liability 1,267,360 1,541,920 1,816,480 0 0 0 0 Total Current Liability 1,267,360 1,541,920 1,816,480 0 0 0 0Long Term Liability 6,807,926 5,540,566 3,998,646 2,182,166 0 0 0

Chapter 7

ECONOMIC AND SOCIAL BEHAVIOR

CONSUMER BEHAVIOUR

Effective marketing requires insight into consumers’ mind. It ensures that the right product are conceived, produced & offered to the right consumer in the right way.

1.Cultural factors: - Culture: It is the fundamental determinant of a person’s want & behavior.

Sub-culture: Each culture consists of smaller sub-culture that provides more specific identification & socialization for their members. Subcultures include nationalities, religious, racial group and demographic region. Multicultural marketing came from this concept.

Social life: All of the human societies have any social life. Social classes haveseveral characteristics. First one social classes differ in dress, speech pattern, and many other characteristics. Second one, persons are perceived as occupying inferior or superior positions according to social classes. Third, social classes indicated by a cluster of variable for example, occupation, income, wealth, education & value systemetc. And fourth one individual can move up and down the social-class ladder during the lifetime.

2. Social factors: - Reference group : A person’s reference consists of all the group that have a direct (face to face) or indirect influence on his/her attitude andbehavior. There are 3 type of Reference group

(a.) Membership group: Groupshaving a direct influence on person. Some membership groups are primary groupsuch as family, friend, neighbors, colleagues, etc. People also belong to secondarygroup like religious, professional and trade unions etc.

(b.) Aspirational groups:People are also influence by groups they do not belong & hopes to belong.

(c.)Dissociative group: These are those whose values or behavior an individual rejects.

Family: The family is the imp. Consumer buying origin society and familymembers constitute the most influential primary reference group. Family membersinfluence buying decisions. In the traditional joint family grandparents. Nuclearfamily husband & wife both. Children & teenagers are targeted by internet.The Prologue Website is targeted at the youth market.

A person participates in many groups – Family, clubs, origin. etc. The persons’ position in each group can be defined in terms of roles & status .ROLES: A role consists of the activities a person is expected to perform.STATUS: Each role carries a status.People choose product that reflect & communicate their roles & actual status in thesociety.

3. Personal factors: - A buyer’s decision also influence by personal characteristics,

Following: Age & stage in life cycle: People buy different goods and services over a life time. Marketers should also consider life events like marriage, childbirth, illness, divorce,widowhood etc. as giving rise to new needs.

Personality & self-concept: Each person has personality characteristics

that

influence his or her buying behavior. Personality: Self confidence,

dominance, sociability, autonomy, adaptability etc. Personality is a useful

variable to analyzing customer brand & choice. Self- concept:

1. Actual self-concept: - How one views oneself?

2. Ideal self-concept: - How one would like to view oneself?

3. Others’ self- concept: - How one thinks other see one?

VIII. Conclusion / Recommendation

The AMAer’s Restaurant is a new, innovative concept dining shop that

targets a new, growing market. We assume that the market will respond, and

grow quickly in the next 5 years. Our goals are to create a reputation of quality,

consistancy and security (safety of food) that will make us the leader of a new

style of dining. Quality food and service @ an affordable price is the main motto

for this one. It will also feature a free wi-fi access for customers who wish to

access the internet so it will be a non-stop shop, with food, some drinks and a

cyber offering attractions via this one scheme.

Our marketing efforts will be concentrated on take-out and delivery, the

areas of most promising growth. As the market changes, new products may be

added to maintain sales.

After the restaurant opens, we will keep a close eye on sales and profit. If

we are on target at the end of year 1, we will look to expand to a second unit.

With any new venture, there is risk involved. The success of our project hinges

on thestrength and acceptance of a fairly new market. After year 1, we expect

some imitation from the competition. So we keep some of our trade secrets and

our recipes intact without sacrificing quality. In short, we aim to be at the forefront

of dining anytime soon!

After reviewing the pros and cons about this soon-to-be restaurant which

will rise sooner or later, it is determined that this type of business is viable to

push through. Mainly due to the fact that it sits in a very good location, with

people from all walks of life, students, passers-by, mall employees and all others

such as drivers who crave for a sumptuous meal will be treated to an affordable

meal with so many attractive extras such as free drinks on some occasions,

delicious food, a clean environment and most of all, a heart-warming crew staff to

welcome you every time you grace the restaurant! The gadgets and fixtures, the

equipments are already available and practical ones.

Chapter I

Description Of the Project

Chapter IIMarketing Aspect

Chapter III

Marketing Strategy

Chapter IVTechnical Study

Chapter VLegal & Taxation

Chapter VIFinancial Study

Chapter VIIEconomic &

social behavior

Chapter VIII

Conclusion /recommendation