Cordillera Career Development College

Buyagan, La Trinidad, Benguet

College of Business Education and Accountancy

A Feasibility Study of Good Taste Café and Restaurant

Abatan, Buguias Branch

Submitted by:
BATIL, Janina
BACKIAN, Priscilla
CALLIAS, Weslyn
CHIPO, Khryssmarinelle
DONG-AS, Meljoy
GABOY, Coleen
TATPI-IC, Aiza

Submitted to:
Ma,am Dina P. Amdos

December 11, 2018

 INTRODUCTION
This paper is to present a feasibility report on a franchise business of a 250 square meter
Good Taste Café and Restaurant in Abatan, Buguias, Benguet.
According to Philippine Statistics Authority, Buguias is one of the municipalities in the
Cordillera to have the largest population of over 43,627 in the recent conducted census. Abatan
is a mini-town or a market area in Buguias and also a stop-by place of travelers coming and
going to nearby provinces. As per location of road intersection, these neighboring provinces are
Mt. Province, Mankayan, Bokod and Ifugao.
In today’s environment, opening a restaurant business is a good choice since food is an
everyday need. There are lots of food establishments yet it is not enough to feed hungry
costumers. The demand for food is increasing as population grows. People have greater
interest in food offering best quality meals and great ambiance.
A restaurant is a retail establishment that serves prepared food to customers. Service is
generally for eating on premises, though the term has been used to include take-out
establishments and food delivery services. The food services industry is considered to be the
most known industry in the world. The term covers many types of venues and a diversity of
styles of cuisine and service.
Good Taste is a 24-hour restaurant that offers affordable, hearty meals in generous
servings. The restaurant’s menu includes rice meals, soups, mami, snacks, and beverages.
There are also generous selections of most delicious and very tasty Philippine dishes including
chicken, pork, and pancit. The dishes can feed more people than what it says on the menu. All
other dishes are inspired by Chinese and Filipino cuisine.
The restaurant is popular among locals and tourists as they only need to spend less than
500 Pesos for their cravings and they can have their budget for other purposes.
The recommended Good Taste Fried rice is Php 120. It is made with a large chicken and fried
egg. Another crowd favorite is the Buttered Chicken which is Php 180 for half and Php 360 for
whole. Good Taste offers a multitude of options from snacks, to main dishes, down to desserts,
and even takes home breads. Good Taste would be perfect for groups who want to eat well but
don’t want to spend much.
Since it is a 24-hour restaurant night owls may also binge at the restaurant out of loneliness or
for emotional reasons, including stress or boredom. The restaurant provides a warm and an
inviting environment and a variety of comfortable seating arrangements to accommodate
anyone from a single individual to a large family or group.
 BUSINESS DESCRIPTION
History
Way back in 1999, there was a small eatery located along the road of Amgalueyguey, Buguias
that serves as a bus stop over of travellers coming from nearby provinces. They serve delicious
meals and one of their specialties is the so-called “Pinikpikan”.
One day there was a Korean traveller who dropped by the eatery and asked, “Give good taste
meal”. So the waitress gave him their eatery’s specialty “Pinikpikan”. After he ate, he puts his
thumbs up and said “Good taste! Good taste!” The owner was moved and she became inspired
of what the traveller said. In order to gain more customers and profit as well, she borrowed
money from a bank and started expanding her business. As time passes by it came to her mind
to build a business at Abatan, Buguias and from her inspiration she named her restaurant as
“Good Taste”.

Mission
Through the food and services offered, Good Taste Café and Restaurant aims to provide
customer’s satisfaction which is the core center of Good Taste.

Vision
A premium restaurant across the country delivering quality meals and extraordinary restaurant
experience while working towards greater good for employees, community and environment.

Objectives
• To provide good ambiance and clean environment
• To serve quality foods at fair prices
• To provide excellent customer services through responsiveness to needs and requests
 PRELIMINARY EVALUATION OF MARKET CONSIDERATION
Data will be gathered through survey questionnaires which will in order to assist the
business’ target market and their responses. We used survey questionnaires among other
techniques in surveying because it is the simplest and precise way to gather data. The result of
the survey determines the market analysis which will soon be used throughout the study.
Attached herewith is the survey questionnaire.

MANAGEMENT TEAM
The business will be run by 7 owners in which one will act as the General Manager and
three of them will be the Assistant Managers per area of functionality and the others will be
assigned to the Human Resource Department. The area of functionality will be the kitchen,
dining and cashier. Implementation of this of this business form calls for all 7 owners to make all
major management decisions in addition to monitoring all other business activities.
Ms. Janina Batil, the General Manager, will be assigned to oversee all administrative
functions. The Assistant Managers of the areas in the kitchen, dining and cashier will be
Khryssmarinelle Chipo, Pricislla Backian and Coleen Gaboy respectively. They will be
responsible in leading and directing the employees in their areas. While Weslyn Callias, Aiza
Tatpi-ic and Meljoy Dong-as will be assigned to the Human Resource Department and are
responsible in looking after employees including trainings and monitoring employee
performances.
 Good Taste Customer Survey
Name (optional): __________________ Gender: ________ Age: ______
This is a survey about Good Taste Restaurant. Your answers will assist us in planning to build
up a Good Taste Restaurant.
Kindly answer all the questions by checking the box. Some questions may require one or more
check marks.
Ex:

 Yes No

1. What types of food do you like to eat? 4. For which kind of special events do you
(Check all that may apply) go to the restaurant?
(Check all that may apply)
Spicy food
Seafood Valentine’s Day
Dried food like chips New Year
Frozen food Mother’s Day/ Father’s Day
Meat dishes National Holidays
Pasta/noodles Other (please specify)
Other (please specify) __________________________
________________________
5. What time do you prefer to visit a
2. What types of food do you not like to eat? restaurant?
(Check all that may apply)
Breakfast
Spicy food Lunch
Seafood Dinner
Dried food like chips
Frozen food 6. How much do you spend on a typical
Meat dishes meal?
Pasta/noodles
Other (please specify) Less than P100
____________________ Between P100 - 200
Between P201 - 300
3. How often do you go out for a meal? Between P301 - 400
Other (please specify) _____________
Daily
Once a week 7. How important is the price factor for you?
A few times a week
Once a month Very important
A few times a month Somewhat important
Other (please specify) Not important
________________________________
8. How long are you willing to wait to get
your order? 12. What would you say is the biggest
challenge for eating in the restaurant?
1-5 minutes
5-10 minutes Choosing a meal
10-15 minutes Menu selection
15-30 minutes Price
Variety
9. Do you usually go out alone, with a
partner or in groups to the restaurant? 13. When you visit the restaurant what is
the first thing you look for?
Alone
With a partner Ambience
In groups Service
Hygiene
10. When going to a restaurant which Variety of deals
criteria are important for you? Price
(Check up to 4 choices)
14. Do special offers on meals and prices
Restaurant concept attract you to the restaurant?
Dining environment
Food quality Yes
Variety of drinks No
Variety of dishes Sometimes
Order time
Warm and friendly service 15. What style of restaurant do you prefer?
Price
Convenience Traditional
Other (please specify) Homey
_________________________ Modern
Mixed traditional and modern
11. What would attract you to try our I don’t have a preference
restaurant?
(Check up to 3 choices) 16. Do you prefer take-away or dine in?

Reviews on the internet Take-away

Nearby location from where I live Dine in
Different kind of cuisine Both
Decoration or setting of the restaurant
Affordable prices
Other (please specify)
__________________________
 PROJECT PLAN

The aim of preparing this project plan is to know how to establish a restaurant.

Location
The location of the restaurant is within Amgalueyguey, Buguias. The place has been selected to
capture the market potentiality and untapped opportunity present on this place.

Food
The restaurant will be serving vegetarian and non-vegetarian food and varieties of Chinese-
Filipino food, drinks, and desserts such as buttered chicken, chop suey, shanghai lumpia, and
many more items. The preparation of the food would involve the use of the highest quality and
the freshest ingredients to make it. The specialty about all these food items would be that they
will be prepared in clean and hygienic environment made by the expert chefs and would be
served to the customers with an affordable price to maintain goodwill and long term customer
relationship.

Furniture and Equipment

The project manager will be responsible for the required furniture and equipment. The
equipment that would be used will be the most current state of cooking equipment to ensure the
quality and safety in serving the customers. The restaurant will provide a warm and inviting
environment and a variety of comfortable seating arrangements to accommodate anyone from
a single individual to a large family.

Staff and services

The staff will consist of the experienced and dedicated employees, who work in a team spirit
to achieve common goals. The staff will be working together as a team to satisfy the customer
by providing quality food at competitive price. Since a valuable customer service is a priority a
customer driven approach will be used. The service would be fast since the staffs are well
trained energetic professionals.

Estimated Staffs
Morning Staff: 8
Afternoon Staff: 12
Evening Staff: 12
Total Staff: 32

For this project we will have to ensure the process of food preparation will be done by experts
and in clean, hygienic environment and will have good nutrition value. These tasks require high
formalities and safety procedures which will ensure the success of the project.
 MARKETING PLAN

This Chapter contains the analysis of the current market situation of the Good Taste
Restaurant in Abatan, Benguet. Based on this analysis, a marketing plan for the upcoming
restaurant was created. The marketing plan is aimed to serve the needs of the restaurant for the
opening and after the initial launch.

Products Offering

We will create an appealing and entertaining environment with unbeatable quality at an

exceptional price. An exciting and friendly restaurant, we will be the talk of the town. All menu
items are moderately priced for the area.

Good Taste Restaurant and Café has become a time-honoured local favourite. This 24/7
establishment leans heavily towards Chinese cuisine, but Western pastries like cupcakes and
assorted bread are also available

Figure 1. These are the main menus Good Taste offer and its corresponding prices.
Figure 2. These are the prices of soup, pancit, snacks and beverages that Good Taste- Abatan,
Buguias offer.

Costumer/s:

In looking at our market analysis, we have defined the following groups as targeted
segments. The only exception comes when we define our targeted segment for lunch. We firmly
believe, and have witnessed, that a much broader appeal exists for this midday time slot
because we have priced it so low and affordable. Below are our targeted market segments.

 Age -- Seniors, Baby-Boomers, young married couples with children, and blue-
collar workers of all ages.
 Family Unit -- We will appeal to young families with new babies or mature
families with children under the driving age. Most of our family units will have two
wage earners.
 Gender -- We will equally target both sexes with a slight skew for males due to
their heavy consumption of red meat.
 Income -- We will appeal to the high side of low income individuals and to all in
the middle income bracket.
 Occupation -- We will target the blue-collar worker, young professionals with a
family, and most of mid-America.
 Education -- high school graduates or individuals with some college
 Competitive Edge

Our competitive edge is the menu, the chef, the environment, the management, the
service and our friendly place! We will have an international menu and our food will be made
with the freshest ingredients and produce available. The chef has an excellent taste for what
fine dining is and requires. Our environment is elegant and comfortable and our decor is warm
and relaxing. Great service is very important to us. All this and our great atmosphere will make
customers want to come back again and again!

Main Competitors

Our biggest competition is the Mother’s Restaurant which is the first who put up
restaurant in Abatan, Buguias, Benguet. Currently, there are two restaurants that were built up
the Tom’s Bakahan and the Silvertown Restaurant. We also have our small competitor’s which
are the small eateries. Many people who travel to Baguio or vice versa from Buguias, Mt.
Province, Mankayan, and other municipalities dropped by or have a stopover at Abatan to dine
out. With the redevelopment in Abatan and with Good Taste Restaurant, we will convince these
people to eat at our restaurant.

Everyone that sells prepared meals is our competition though because we all compete
for the same home meal replacement of money. However, there are two segments of the
restaurant industry that are our main competition: the casual dining restaurant concept and the
fine dining value restaurant. If the value of the food and price and service is better at a fine
dining restaurant than a casual restaurant, where will is a customer more likely to go?
The key is to deliver the best food at the best price with the highest level of service. This is the
very definition of value. This concept is at the heart of Good Taste Restaurant.

Marketing Strategy

Our strategy is simple; we intend to succeed by giving people a combination of excellent

and interesting food in an environment that appeals to a wide and varied group of successful
people. We will focus on maintaining quality and establishing a strong identity in our community.
Our main focus in marketing will be to increase customer awareness in the surrounding
communities. We will direct all of our tactics and programs toward the goal of explaining who we
are and what we do. We will keep our standards high and execute the concept so that word-of-
mouth will be our main marketing force.
We will create an appealing and entertaining environment with unbeatable quality at an
exceptional price. An exciting and friendly restaurant, we will be the talk of the town. Therefore,
the execution of our concept is the most critical element of our plan. All menu items are
moderately priced for the area. While we are not striving to be the lowest-priced restaurant, we
are aiming to be the value leader.
We will employ three different marketing tactics to increase customer awareness of
Good Taste Restaurant. Our most important tactic will be in-store marketing. This will be by far the
cheapest and most effective of our marketing strategy.
In-store Marketing

 V.I.P. Party - We will host a V.I.P. Dinner before the 'Grand Opening.' This will serve the
dual purpose of training our staff and introducing ourselves to the community. The list of
individuals we will invite comes from the Chamber of Commerce.
 Grand Opening celebration- in morning we offer free “wat wat” in the afternoon we give 30%
discount to the food and drinks we offer.

Local Store Marketing

 Make a brochure for the establishments in town to provide to their customers, containing
interior pictures of our restaurant, menus and prices.

Local Media

 Newspaper campaign - Placing several large ads throughout the month to deliver our
concept to local area.
 Direct mail piece - Containing interior pictures of our restaurant, our menu, catering and
an explanation of our concept.
 Website
 Target marketing to businesses for regular breakfast, lunch and dinner entertaining

Sales Strategy

Our sales plan is to establish and maintain position with our local customers. The strategy is to
build more customers in order to increase revenue. Sales in our business are client service. It is
repeat business. We will focus on making all our customers happy with our food, service and
entertainment options.
Our strategy in the restaurant is to have experienced staffs that know the food, wine and liquor.
We will train every new employee so they will fit in with Good Taste concept, which is
"Wonderful food, reasonably-priced wine and knowledgeable service in an outstanding
atmosphere."
Sales Forecast

The following table show sales projections for our first three years. Monthly restaurant gross
sales are to average P3,333,350.00. That is 5,000 people for breakfast spending P100 for
breakfast, for lunch approximately 10,000 people spending $150 per person, and for dinner
approximately 8,890 people spending an average P150 per person. Catering will average
P125,000.00/month. Our total cost of goods sold is capped at 33% of total sales. We expect
sales to increase 15% after Year 1.

SALES FORECAST

SALES YEAR 1 YEAR 2 YEAR 3

Food & Liquor P4,000,000.00 P4,600,000.00 P5,290,000.00

Catering P1,500,000.00 1,725,000.00 P1,983,750.00

Other 0 0 0

TOTAL SALES P55,000,000.00 P63,250,000.00 P72,737,500.00

Direct Cost of Sales Year 1 Year 2 Year 3

Food & Liquor P1,320,000.00 P1,518,000.00 P1,745,700.00

Catering P495,000.00 P569,250.00 P654,637.50

Other $0 $0 $0

Subtotal Direct Cost of Sales P1,815,000.00 P2,087,250.00 P2,400,337.50

 FINANCIAL PLAN

START-UP FUNDING AND EXPENSES

The business will be run by 7 owners, who will each contribute 3,000,000 pesos to raise
a total of 21,000,000 of its own capital and to borrow 4,000,000 guaranteed by Bank of the
Philippine Islands (BPI) as a ten-year loan. This will more than cover start-up requirements, and
provide the business with cash that will assist financially in the expansion of the business over
its first year of operation. The estimated fixed cost and variable cost is 15,000,000 and
10,000,000 respectively. The projected amounts are based on the actual sales figures from
other branches of Good Taste.

The following are the projected annual Financial Statements:

12 MONTH PROFIT OR LOSS PROJECTION
The following statement shows the projected sales, cost of sales expenses and profit for
one year which expects to yield a profit of Ᵽ18,000,000. In the sales of P55,000,000 in a year,
there are 550, 000 quantities being sold for an average of P100 each.

Sales Ᵽ 55,000,000
Less: Cost of Sales 28,457,000
Gross Profit 26,543,000
Less: Operating Expenses
Salaries 358,000
Marketing 185,000
Utilities 285,000
Profit before tax 25,715,000
Less: Tax expense 7,714,500
Net Profit Ᵽ 18,000,000

PROJECTED CASH FLOW

The following statement shows the total outflows and inflows of cash from the operating,
investing activities of the business.

Cash flows from operating activities

Cash from collection of customer P 50,000,000
Cash paid for operating expenses (828,000)
Net cash from operating activities 49,172,000
Cash flows from investing activities
Cash payment for acquisition of land (10,000,000)
Cash payment for loan granted (1,000,000)
Net cash used in investing activities (11,000,000)
Cash flows from financing activities
Cash from long term loan 4,000,000
Net cash from financing activities 4,000,000
Net increase in cash and cash equivalents 42,172,000
Cash and cash equivalents, beginning --
Cash and cash equivalents, end P 42,172,000
PROJECTED BALANCE SHEET
The following balance sheet shows the projected total asset and total liabilities and
equity of the company for the first year of operation.

Assets Liabilities
Current Assets Current Liabilities
Cash 36,000,000 Accounts payable 9,785,500
Income tax payable 7,714,500
Total Current Assets 36,000,000
Total Current Liabilities 17,500,000
Noncurrent Assets Noncurrent Liabilities
Land 1,500,000 Loan payable 4,000,000
Building 5,000,000 Total Noncurrent 4,000,000
Total Noncurrent Assets 6,500,000 Liabilities
Equity
Investment 21,000,000
Total Assets 42,500,000 Total Equity 21,000,000
Total Liabilities and 42,500,000
Equity

BREAK- EVEN ANALYSIS

Break- even percentage:

Gross profit 26,543,000

Divide by: Total 25,000,000
Expenses
Total 1.0617
Multiply by: 100
Break even percentage 106.17 %

The table shows that the break-even percentage is 106.17% which means the business
gained profit. If percentage lowers 100%, the business will incur loss.

Break-even sales:

𝐹𝑖𝑥𝑒𝑑 𝐶𝑜𝑠𝑡
𝑩𝒓𝒆𝒂𝒌 − 𝒆𝒗𝒆𝒏 𝒔𝒂𝒍𝒆𝒔 = 𝑥 𝑆𝑎𝑙𝑒𝑠
𝑆𝑎𝑙𝑒𝑠 − 𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝐶𝑜𝑠𝑡
𝑃 15,000,000
𝑩𝒓𝒆𝒂𝒌 − 𝒆𝒗𝒆𝒏 𝒔𝒂𝒍𝒆𝒔 = 𝑥 𝑃 55,000,000
𝑃 55,000,000 − 𝑃 10,000,000
𝑩𝒓𝒆𝒂𝒌 − 𝒆𝒗𝒆𝒏 𝒔𝒂𝒍𝒆𝒔 = 33.33 𝑥 𝑃 55,000,000
𝑩𝒓𝒆𝒂𝒌 − 𝒆𝒗𝒆𝒏 𝒔𝒂𝒍𝒆𝒔 = 𝑷 𝟏𝟖, 𝟑𝟑𝟑, 𝟑𝟑𝟑. 𝟑𝟑

The above analysis show that the sales unit of 55,000,000 will result in the require
18,000,000 projected profit of the year.
 EVALUATION AND CONCLUSION

Based on the information presented in this feasibility study, it was projected that putting
up a franchise of Good Taste Café and Restaurant at Abatan, Buguias Benguet would be
successful. The target markets are the locals of the place and the people or travelers from
nearby provinces like Mankayan, Bokod, Mt. Province, and Ifugao. Modern- taste and appealing
meals will be served in an entertaining environment with unbeatable quality at an exceptional
price. All menu items are moderately priced for the area. A business would be more productive
with marketing strategies coming from promotions, advertisement and other programs set forth
by the management in order to surpass the competitors surrounding the business. The business
will be open to local media such as newspaper ads and social media accounts.

The proponents will be taking over the business and making management decisions
throughout the operation. Funds in establishing and operating the business will come from
investment of the owners and a bank loan from Bank of the Philippine Islands (BPI). Possible
sales and costs are based on actual figures from the other branches of Good Taste were used
which will probably outflow from the first year of operating the business. The data gathered will
also be the basis of revenues which will be gained throughout the succeeding years.