THE FEASIBILITY OF ESTABLISHING FEAST ‘N KAIROS RESTAURANT

In Partial Fulfillment of the requirements for the strand

Accountancy, Business, and Management (ABM)

Researcher

ANILEN A. QUILATON

Thesis Adviser

MRS. NILDA SALUDO

February 2020

i
 EXECUTIVE SUMMARY

Feast ‘n Kairos Restaurant is a family-style dining food service business that

opens 25 days in average per month. The operation begins 7 in the morning and closes

at 8 o’clock in the evening. This specializes in Filipino cuisine and offers menu of foreign

foods, which is unheard in the town. Poblacion Sur, Batuan, Bohol – the future home of

the restaurant, is the most popular area where various successful businesses are

established and for this reason, Feast ‘n Kairos is positioned to become one of those

market winners in the vicinity.

New restaurant openings are known to be very risky and that it encompasses

more than just owner’s guts to succeed in this industry. Given this scenario, how can

the business neutralize these risks and secure a great success?

First, the researcher have identified the market where the business engages.

Response from the target market who are the students, working professionals,

housewives and families reveals that they are willing to patronize a good family style

dining restaurant which offers both Filipino and Foreign food if one were available.

Further research of the population demographics exposed a lifestyle most conductive to

eating out in restaurants with good food and service quality along with affordable dish

prices.

Another important factor is the business concept of merging 5 different cuisines

in one restaurant. These are as follows: Filipino, Korean, Japanese, Italian and

American kitchen culinary. Foreign food are purchased by reservation of order and

Filipino dishes are available within the time limit of the restaurant.

ii
 Prices are affordable and reasonable for the taste of satisfying food in a pleasant

atmosphere of fresh, fine and friendly service to the customers to let them enjoy the

vibe.

February 2020 is the approval month of this feasibility study. After the range

schedule of the business activities, such as evaluation of the market area, capital

earnings, registrations, renovations, purchases and recruitments, Feast ‘n Kairos

Restaurant can start operating on January 2022.

The business anticipated a capitalization that consists a budget of ₱600,000

pesos, ₱300,000 worth of petty cash, and a bank loan of ₱300,000.00 with an interest

of 8% for the whole contract. Start-up costs amounted to ₱477,000.00 pesos which is

allotted for purchase of equipment, renovation, licensing and any other necessities. The

remaining balance of ₱123,000 pesos from the capital is for cash reserve for any

emergency expenditures.

Careful and conservative projections of the business’ financing matters

generated a first year net income of ₱ 389,234.92 of the ₱2,177,625.00 sales. After four

years of service operation, Feast ‘n Kairos Restaurant will gain a net income of

₱688,919.15, thus, the capital requirement needed to kick-start the business will be

regained. Therefore, the succeeding years of duty will purely be the profit of the

business. In a span of five years, sales are expected to reach ₱3,012,568.77 with

₱810,277.82 as net income.

Future goals of Feast ‘n Kairos is to be recognized as a sanctuary of family

bonding during meals fulfilling the hungry stomachs with a taste of simply unforgettable

iii
banquet. On account of the aforementioned details above, this goal will thoroughly be

put into light.

APPROVAL SHEET

This study entitled: THE FEASIBILITY OF ESTABLISHING FEAST ‘N KAIROS

RESTAURANT, prepared and submitted by the researcher, in partial fulfillment of the

requirements for the strand of Accountancy, Business and Management, has been

examined and is recommended for acceptance and approval for oral defense.

NILDA SALUDO
Adviser

FEASIBILITY STUDY REVIEW PANEL

Approved by the committee on Oral Examination with a grade of _________________.

NILDA SALUDO TERESITA JUMAWID

Member Member

iv
 DR. CONSOLACION D.VINLUAN
Chairman

Accepted and Approved in partial fulfillment of the requirements for the strand of
Accountancy, Business, and Management (ABM).

ACKNOWLEDGEMENT

With sincere gratitude and respect, I humbly express my thanks to the following

people who, with all their might, supported me all throughout this work making this a

possible one.

To my dear parents, I thank them for their infinite love and guidance, for financial

and moral provisions, for their kind restraints and understanding during those

exhausting days that I sleep late at night, for their endless advices and for staying by my

side no matter what. A great thanks to my younger brother whom I indebted a lot for

doing the household chores in my behalf to fulfill my duties even without my presence

and for encouraging me to give my absolute best in everything I do.

A handful of thanks to my friends and classmates who are my companions through

all the painstaking hardships that we encountered in this work and for giving me a hand

whenever I needed them.

To the school, Batuan Colleges Incorporated, where I am currently thriving as an

Accountancy, Business and Management student, I am thankful to the teachers for

giving us advices, especially to the institution's President, Mrs. Consolacion Vinluan and

v
to our thesis Adviser, Mrs. Nilda Saludo for handling, supervising, understanding and

correcting this work.

A never-ending gratitude to the Almighty Father who reigned over the heavens and

earth, for bestowing me the gift of physical health and life. For providing my needs and

for the wisdom and endurance He showered on me, making this thesis a successful

one.

Most of all, I thank God for reminding me that I can always abide in Him, as His

Words assures me that, "I would never leave you, nor forsake you." (Hebrews 13:5)

DEDICATION

This thesis study is dedicated to the Almighty Father, my source of strength,

wisdom, protection and my wellspring of infinite love and guidance. This work had been

successful because of His grace and Holy presence that guides me through.

To my parents and sibling who endured all circumstances to provide my needs,

motivated me to become the person who I really wanted to be and supported me with all

of their heart and might.

To my friends who are my fountain of happiness, laughters and the best

companions to help me in emotional aspects of life.

And to the teachers of Batuan Colleges Incorporated who mold us to be the hope of

the fatherland and for inspiring us to pursue our goals in life notwithstanding the kind of

circumstances this world may bring. Thank you and God bless us all!

vi
 TABLE OF CONTENTS

Page

TITLE PAGE …………………………………………………………………………………. i

EXECUTIVE SUMMARY …………………………………………………………………... ii

APPROVAL SHEET ……………………………………………………………………....... iv

ACKNOWLEDGMENTS ……………………………………………………………………. v

DEDICATION ………………………………………………………………………………... vi

TABLE OF CONTENTS ………………………………………………………………........ vii

LIST OF TABLES …………………………………………………………………………… ix

LIST OF FIGURES ……………………………………………………………………….…. x

CHAPTER

1 DESCRIPTION OF THE PROJECT

Introduction ……………………………………………………………………...1

Company’s Historical Background ……………………………………………4

Location ………………………………………………………………………….5

vii
 Legal Structure and Form of Ownership ……………………………………..5

Mission and Vision Statements ……………………………………………….8

Goals and Objectives ……………………………………………………….....8

Product/Service Description …………………………………………………..9

2 ECONOMIC/MARKET STUDY

Review of Related Literature and Studies …………………………………..13

Demand and Supply Analysis ………………………………………………..26

Target Market (Customer Profile) ……………………………………………32

Market Demographics ………………………………………………………...33

Competition …………………………………………………………………….34

Business Environment …………………………………………….…………..35

Marketing Strategies ……………………………………………….………….42

3 MANAGEMENT STUDY

Organizational Structure …………………………………………….………..45

Functions and Responsibilities ……………………………………….……...47

Compensation and Benefits ……………………………………….…….…...48

4 TECHNICAL STUDY

Product Descriptions and Economic Users ……………………….…….....49

Manufacturing/Production/Service Process ……………………….…….…49

Plant Size, Layout and Production Schedule ……………………….……..50

Machinery ……………………………………………………………….……..53

5 FINANCIAL STUDY

Total Project Cost ……………………………………………………….…….54

viii
 Initial Capital Requirements …………………………………………….……55

Sources of Financing ……………………………………………………..…..55

Financial Statements (5 year projection) ……………………………….......62

6 SOCIAL AND ECONOMIC RESPONSIBILITIES

Economic Significance …………………………………………………….....69

Environmental Contribution ……………………………………………….…73

Societal Benefits ……………………………………………………………...74

7 STUDY CONCLUSION AND RECOMMENDATIONS …………………...75

LIST OF TABLES
page
Table 3.1 Responsibility Matrix and Qualifications ………………………………………..47

Table 4.1 Schedule of Production in Months ………………………………………………52

Table 5.1 Start-up Costs ……………………………………………………………………..54

Table 5.2 Source of Start-up Capital …………………………………………………….….55

Table 5.3 Menu Pricing of Filipino Dishes ………………………………………………….56

Table 5.4 Beverage Costing …………………………………………………………………56

Table 5.5 Foreign Dishes Pricing ……………………………………………………………56

Table 5.6 Fruits Costing ……………………………………………………………………...58

Table 5.7 Salaries Chart ……………………………………………………………………..59

Table 5.8 Insurances …..……………………………………………………………………..61

Table 5.9 Gross Income …… ………………………………………………………………..62

ix
Table 5.10Five Year Projected Income Statement …….………………………………….64

Table 5.11Ratio of Income Statement Accounts ….……………………………………….64

Table 5.12Five Year Projected Cash Flow ……………….………………………………..66

Table 5.13Five Year Projected Balance Sheet …………………..………………………..67

Table 5.14Financial Ratios ……………………………………..……………………………68

LIST OF FIGURES
page
Figure 1.1 Feast ‘n Kairos Location………………………………………………....…….. 5

Figure 2.1 Profile of the Respondents …………………………………………………….26

Figure 2.2 Frequency …………………………………………………………………….....27

Figure 2.3 Time Preference ……………………………………………………………......27

Figure 2.4 Order Preference ……………………………………………….......................28

Figure 2.5 Spending Behavior ………………………………………………….................28

Figure 2.6 Cuisine and Food Preference …………………………………………………29

Figure 2.7 Foreign Cuisine Preference …………………………………………………...30

Figure 2.8 Food Quality Response ………………………………………………………..30

Figure 2.9 Customer Expectation ………………………………………………………….31

Figure 2.10 Restaurant Attractions …….………...……………………………................31

Figure 2.11 4P’s of Market Strategy ………………………………………………………42

Figure 2.12 Tarpaulin Design ……………………………………………………………...44

Figure 3.1 Business Organizational Structure …………………………………………...44

Figure 3.2 Compensation …………………………………………………………………..48

x
Figure 4.1 Manufacturing Process ………………………………………………….……..49

Figure 4.2 Business Production …………………………………………………….…......50

Figure 4.3 Service Process ………………………………………………………….……..50

Figure 6.1 Comparison of Establishment …………………………………………...…….71

Figure 6.2 Distribution of Hotels vs. Restaurants…………………………………………72

xi