FEASIBILITY STUDY

By:
Jeffrel Mae Brillo
Jessa Jane Ebro
Pearl Joy Baas
Glory Jane Pangantihon
Nellyn Pagayon
 Chapter
I

SUMMARY OF
THE PROJECT
Name of the
Company
 Locatio
n
The location of the business will be at Brgy.
Tabucan, Mandurriao Iloilo City just beside
Iloilo Esplanade. The researchers chose this
place because the place has a spacious area
very suitable and also, it is accessible and the
researches believes that the Mandurriao
district is becoming a place of opportunity as
infrastructures and buildings are being built
and the population in Iloilo City is increasing.
 Brief Description of the
Project

This study was conducted to determine the

feasibility of establishing a restaurant x flower
shop which consists of a recreational restaurant
that serves healthy organic foods, two green
houses (1 for vegetables & 1 for flowers) and a
flower shop. You can enjoy the facilities like the
green house where guest could enjoy planting,
picking and/or harvesting organic vegetables,
herbs and flowers of all kind. Also, guest could
bring their harvested vegetables and request the
staff to cook it the way they want. As to the
flowers, customers could bring the flowers they
want to the flower shop and have it arranged by
the florist.
 Project
Summary
Market Feasibility
This business will be established to market
recreational services. This will cater the people of
all ages. It is unique from other restaurant and/or
flower shop because here, we give the customers
the freedom of choice on what they want to be
cooked when it comes to restaurant and what
flowers they want to put in their arrangement when
it comes to flower shop. Also, customers could be
the one to pick the vegetables and/or flowers
themselves. It provides a link between fun, learning,
nutrition and recreation. Secret Garden will offer its
guest with a discount coupon to its loyal buyers that
will make them avail of the discounts on specific
products and other services.
 Technical
Aspect
The services of our project are recreational
restaurant that brought enjoyment to everyone
and caters healthier variety of food and flower
shop which caters the floral needs of the
customers We have come up with planned
schedule which timely answers the demands of
customers
The feature we offer is differentiated to other
establishments for it is conceptualized to offer
complementary services such as restaurant that
promotes healthier food and a flower shop for
floral needs. With the best facilities we have and
number of persons we can accommodate. We are
able to render services at the most accessible
location.
 Management Study

The business will be organized under

partnership form and will be made up of 5
partners. The employees will receive salary and
benefits mandated by law. The amusement
park has established policies with different
managers considering their duties and
responsibilities.
 Financial
Feasibility

This analysis involves projections of revenue,

operating expenses, net operating income and
an assessment of overall feasibility.
In this study each of the partners will invest
cash for initial capital requirements of putting
up the business. The feasibility analysis is not
complete until the financial analysis has been
conducted.
 Socio-economic
Impact

The services that the firm provides can

contribute in the improvement of the lives
of the Ilonggos as well as to the progress of
Iloilo City in terms of dining experience and
floral needs. Secret Garden will hire 100
people living in Iloilo City on its first year of
operations and will hire more or less 150-
200 employees in the next 5 years if we
decide to expand.
 Chapter
II

INTRODUCTION
 Brief Background

We consider putting up a restaurant x flower

shop business with two green houses at the back
of each to give a twist on our typical setting of
restaurants and flower shops. Secret Garden
offers a wide range of opportunities which guest
can enjoy the freedom of choosing what they
want. Customers could actually pick their desired
vegetables/flowers to be cooked/arranged by our
chef/florist. Furthermore, Secret Garden is an
environment friendly company that offers only
the quality of products to their customers.
 Objectives of the
Study
General Objective:
To determine the feasibility of restaurant x flower
shop business in Iloilo City.
Specific Objectives:
Marketing Aspect:
To be a market leader in its 5th year in the industry.
Technical Aspect:
To develop a good internal control that will enhance
the effectiveness and efficiency of operations.
Management Aspect:
To implement good policies and
compensation/benefits to motivate employees.
Financial Aspect:
To expect atleast 20% return on investment on the
first 3 years and continue to increase by 10% in the
succeeding years.
 Scope and
Limitation

The study is to examine the feasibility of

putting up a restaurant x flower shop in Iloilo
City. This aims to increase the tourism aspect
of the country. This study is only limited to
areas where restaurant ad flower shop
projects or plans is concerned. The study
could be used as a guide for future
researches.
 Chapter
III

MARKET STUDY
 Objective of the
Study

To be on top of the market ladder in Iloilo

City in its 5th year of operations in
amusement service and to have the most
respected name in the field of restaurant
and florist businesses.
 List of
Competitors
Midway
Midway Fresh Market and Restaurant is situated along
Delgado Street, in front of SM Delgado. Passersby are
usually greeted with fresh, bunch of green leafy
vegetables and sweet tropical fruits piled up along the
sideways of the resto.

Farm to Table
Farm to Table is one of the first high-end restaurants
that opened at Iloilo Business Park, Megaworlds 72-
hectare business township in Western Visayas. The
classy restaurant is keeping up to elevate the taste
buds and passion for great dining experience of
Ilonggos and visitors. This is one of the best
restaurants where you can find wellness and classy
food passion, all at the same time. Visit them daily and
savour something exceptional for your palate.
 Buds and Petals
Buds and Petals is located in Gen. Luna St.,
Iloilo City, Philippines. They offer a wide variety
of flower arrangements for different occasions.
First and only in Iloilo to offer preserved roses:
Belle Marieke and Forever Love.

Flowers by Richard
Flowers by Richard was established on
September 2001 in Jaro, Iloilo City by the humble
plant and earth lover, Mr. Richard Nain. Since
then, Flowers by Richard has become the most
reliable flower and plant retailer in the province.
 Market
Strategies
Product
This business will be established to market the services
of fresh organic vegetables, restaurant, fresh flowers
and flower arrangement. This will be established to
cater people's needs in terms of dinning and
satisfaction thru flower arrangements. Secret garden
distinguishes itself from other businesses alike because
it is a one-stop-all-in place that delivers a link between
healthy foods, customer satisfaction and recreation.

Process/Services
Secret Garden offers a wide variety of services from
recreational restaurant, to green house, to flower shop
and even up to delivery. It provides people a place
where they could relax and where they could express
their selves.
 Promotion

Advertising
In order to capture people who are not always
roaming around the cities, the researchers
make use of the internet to spread about Secret
Garden. There will be blog sites, webpage,
facebook page and instagram account of the
said business to provide information regarding
the services offered.

Public Relations
Secret Garden will offer discount coupons to its
loyal members that will make them avail of the
discounts on a specific arrangement and other
services.
 Chapter
IV

TECHNICAL
ASPECT
 Objectives

To completely shows the scheduling, production

cost and to distinguish the visibility of our
business in our location.
 Product and
Services
Secret Garden Restaurant will provide services by
offering anunique and healthy dining experience.
High and fresh quality of food and veggies, friendly
and professional service, and an entertaining, fun-
filled environment differentiate our business from its
competitors. While the Secret Garden Flower Shop is
committed to making each arrangement unique,
fresh and custom-designed based on each
customer's needs. All sample arrangements in the
store were freshly picked from our greenhouse or our
customer has the option to personally choose and
pick the flowers of their choice. The products and
service from our restaurant to our flower shop are all
natural and original work of nature.
 Uses of Product and
Services

Secret Garden Restaurant offers a different kind

of salads. It includes Ceasar salad, watercress
etc. In addition Secret garden Restaurant will be
offering her own dressing to compliment these
offerings. While, the Secret Garden Flower Shop
provides flowers according to the clients taste
and chosen designs and arrangements.
Our services include: Discounts (for loyal clients
and orders reaching a specific amount),
Arrangements, Consultations (Free), and Online
Shop than opens 24 hours.
 Manufacturing
Process

The process is designed to all customers who

are interested to dine in an organic restaurant
and a customized type flower shop. To avail
the products and services in our business, with
a specific discount, one must be a member of
Secret Garden Restaurant and Flower Shop.
Membership fee will cost only 300 that will
expire in 1 year. For non- member customers,
they will not be given discounts in all products
and services that are offered in our business.
 Production Schedule

Restauran Daily 9:00am-10:00 pm

t

Flower Daily 8:00am-10:00pm

shop
Location
 Plant Layout
Green House
(Interior)
(Exterior)
Restaurant
Flower Shop
 Program of Work and Cost
Estimate
NAME OF PROJECT: Proposed Two(2) One Storey Commercial Buildings and Two(2) Green
Houses
LOCATION: Tabucan, Mandurriao, Iloilo City
APPROPRIATION: 7,035,800.00 D. ROOF FRAMING AND 1,100,000.00
A. SITE WORKS AND EARTH WORKS
ROOFING
Clearing 150,000.00
Labor (30% of material cost) 330,000.00
Excavation 8,000.00
E. TOILET
Layout 30,000.00
Tile Works 30,000.00
B. STRUCTURAL WORKS
Doors 10,000.00
Foundation 200,000.00
Sanitary Pipes and Fittings 20,000.00
Column 300,000.00
Water Pipes and Fittings 5,000.00
Concrete Canal 90,000.00 Plumbing Fixtures 70,000.00
Labor (40% of material cost) 536,000.00 Septic Vault 30,000.00
C. Architectural Works Hazardous Waste Disposal Pit 18,000.00
Wall Plastering Works 350,000.00 Labor (10% of material cost) 166,800.00
Ceiling Works 500,000.00 F. ELECTRICAL WORKS 130,000.00
Windows 200,000.00 Labor (30% of material cost) 39,000.00

Doors 70,000.00 G. GREEN HOUSE (500sq.m) 500,000.00

Labor (10% of material cost) 50,000.00
Painting Works 200,000.00
H. RESTAURANT (200sq.m) 180,000.00
Tile Works 200,000.00
Labor (10% of material cost) 18,000.00
Lavatory and Sink 50,000.00
I. FLOWER SHOP (100sq.m) 50,000.00
Labor (30% of material cost) 1,380,000.00
Labor (10% of material cost)
25,000.00
 Supply
Restaurant Competitors
Major competitors:
Midway Fresh market and restaurant
Marymart Mall, Delgado St. Iloilo City
Farm to Table
Megawold, Mandurriao, Iloilo City
Substitute Competitor:
Healthy Kitchen
Amigo Plaza Mall, Delgado St. Iloilo City
Flower Shop
Major competitor:
Buds and Petals
Gen. Luna St. Iloilo City
Substitute Competitors:
Flowers by Richard
Jaro, Iloilo City
Abangans Flower Garden
Villa Arevalo, Iloilo City
 Chapter
V

MANAGEMENT
ASPECT
 Objective of the
study
To implement good policies and
compensation program/benefits to motivate
employees.

Forms of Business Ownership

Secret Garden is a partnership type of

business organization. It is made up of 5
partners operating the business.
Organizational
Structure
 Job Description and
Qualifications

General Manager/Human Resource Manager

General Manager/Human Resource Manager is primarily responsible for
directing and coordinating activities of one or more departments, such as
operations or sales and maintains and enhances the organization's human
resources by planning, implementing, and evaluating employee relations
and human resources policies, programs, and practices.

Duties and Responsibilities

The duties and responsibilities of the general manager/human resource
management is to oversee all administrative and management functions of
the business; ensure the creation and implementation of a strategy
designed to grow the business; Communicate strategy and results to the
unit's employees; set goals for an entire department or division based on
the company's plans to perform such other additional duties as the
business may require; insure the development of tactical programs to
pursue targeted goals and objectives and oversee key hiring and talent
development programs.
 Job Description and
Qualifications
Qualifications
Completed college level math and business courses
such as accounting, financial management or business
law.
Has a strong business acumen, communication
proficiency, problem-solving abilities and strategic
thinking, extensive knowledge about marketing
strategies and should be able to design and develop
business procedures calling for experience in dealing
with people and projects including organizational and
supervisory skill
Proficient in computer and software skills to make
data-driven decisions.
Statistical knowledge and superior training and
presentation skills needed to communicate successfully
in written and verbal formats and to understand, create
and analyze financial reports or budgets.
 Compensation

Designation Monthly Salary

General Manager 15,000.00 15,300.00 15,606.00 15,918.12 16,236.48

Operations Manager 12,000.00 12,240.00 12,484.80 12,734.50 12,989.19

Administrative/ Treasurer 12,000.00 12,240.00 12,484.80 12,734.50 12,989.19

Garden and flower Supervisor 11,000.00 11,220.00 11,444.40 11,673.29 11,906.75

Restaurant Supervisor 11,000.00 11,220.00 11,444.40 11,673.29 11,906.75

Bookkeeper 10,000.00 10,200.00 10,404.00 10,612.08 10,824.32

Gardener 9,000.00 9,180.00 9,363.60 9,550.87 9,741.89

Chef 12,000.00 12,240.00 12,484.80 12,734.50 12,989.19

Servers/ waiters 9,000.00 9,180.00 9,363.60 9,550.87 9,741.89

Cashier 9,000.00 9,180.00 9,363.60 9,550.87 9,741.89

Security Guard 9,000.00 9,180.00 9,363.60 9,550.87 9,741.89

Maintenance Personnel 9,000.00 9,180.00 9,363.60 9,550.87 9,741.89t

128,000.
Total 00
 Organizational
Policies for the Firm's Operation Policies
Each member of the firm must have duties and responsibilities. It must
meet the company's excellent standards or it will not be served at all, in
terms of service, it must be fast and courteous and maintain the
cleanliness from sidewalk to kitchen and from uniforms to utensils. The
garden and flower shop shall likewise have its own management team to
oversee its own activities.

Policies for the Firm's Human Resource

The firm shall hire right candidates of employee by conducting a
qualification test like written examination, interview and stiff training. In
case the employee would decide to resign with the firm, he/she is required
to comply with the 30-day notice. The employee will be dismissed in
accordance with the employment law requirements, amongst other
considerations, it will normally be necessary to meet provisions within
employment contracts and collective bargaining agreements.

Polices for the Firm's Finances

The finance department of the firm must be industrious in keeping he
record. All the transaction receipt must be properly accounted and the
cash disbursements thereafter must be duly authorized before issuing
payment or releasing a fund.
 Chapter
VI

FINANCIAL
ASPECT
 2017 Balance
Current Asset
Cash 18,000,000.00 Sheet
Liability and Capital
Inventory 3,470,661.81
Total Current Asset 21,470,661.81 Liability
Accounts Payable 765,288.53
Non Current Asset
Land 6,400,000.00 Utilities Payable 432,000.00

Equipment 220,000.00 Salaries Payable 1,536,000.00
Accumulated
Depreciation 8,800.00 Income Tax Payable 1,015,328.60
Net Equipment 211,200.00 WTH Tax Payable 147,151.68

Building 7,035,800.00 Total Liability 3,895,768.81
Accumulated
Depreciation 281,432.00 Capital
Net Building 6,754,368.00
Brillo, Cap 7,035,800.00
Delivery Car 195,000.00
Accumulated Baas, Cap 5,000,000.00
Depreciation 7,800.00
Net Delivery Car 187,200.00 Ebro, Cap 6,400,000.00

Furnitures and Fixtures 308,500.00
Pagayon, Cap 8,000,000.00
Accumulated
Depreciation 361.00
Pangantihon, Cap 5,000,000.00
Net Furnitures and
Fixtures 308,139.00
Total Capital 31,435,800.00


Total Non-Current
Total Liability and
Assets 13,860,907.00
Capital 35,331,568.81
Total Assets 35,331,568.81
 Income
Statement

2017

Sale 10,027,450.00
Less Sales Disc. 1,016,550.00
Total Sales 9,010,900.00
Less COS 3,364,051.60
Gross Profit 5,646,848.40
Less Operating Expenses 2,237,619.60
Operating Profit 3,409,228.80
Less Taxes@30% 1,022,768.64
Income after taxes 2,386,460.16
 Cash Flow

2017

Cash Flow from Operating Activities

Net Income 3,384,428.68
Increase in Inventory -3,470,661.81
Increase in Office Supplies -10,000.00
Depreciation 1,523,760.00
Increase in AP 765,288.53
Increase in SSS Cont. Pay. 114,831.60
Increase in Philhealth Cont. Pay 19,200.00
Increase in Pag-IBIG Cont. Pay 14,400.00
Increase in Income tax Pay 1,015,328.60
Net Cash provided by Operating Activities 3,356,575.60

Cash Flow from Investing Activities

Payments for Construction of Buildings 7,035,800.00
Payments for Acquire Equipments 211,200.00
Payment to Acquire Furniture and Fixtures 308,139.00
Net Cash Provided by Investing Activities -7,555,139

Cash Flow from Financing Activities

Cash received as investment from the owners 18,000,000.00
Payments for withdrawals by owners 1,250,000.00
Net Cash Provided by Financing Activities 16,750,000.00

Net Increase (Decrease) in Cash 10,911,714.60

Add: Cash Beginning Balance -
Cash, Ending Balance 10,911,714.60
 Owners Equity
Owner's Equity

Beg. Owners Equity

Brillo 7,035,000

Banas 5,000,000

Ebro 6,400,000

Pagayon 8,000,000

Pangantihon 5,000,000

Total 31,435,000
Add: Share in Profit and
Loss
Brillo 22.38% 1,574,433
Banas 15.91% 795,500
Ebro 20.35% 1,302,400
Pagayon 25.45% 2,036,000
Pangantihon 15.91% 795,500

Total 6,503,833

Less: Withdrawals

Brillo 381,492.61

Banas 271,204.09

Ebro 346,888.95

Pagayon 433,824.26
 Financial Analysis

Liquidity 2017
Current Ratio 551%
Acid Test Ratio 462%
2.9
Inventory Turnover times
Solvency
Debt to Equity Ratio 12%
Proprietary Ratio 112%
Debt Ratio 11%
Profitability
Gross Profit Rate 56%
Rate of Return on Total Owners
Equity 7.54%

Rate of Return on Total Asset 6.71%

 Chapter
VII

SOCIO-
ECONOMIC
ASPECT
 Contribution to the
Philippine Economy

The Secret Garden Restaurant and Flower Shop, being one

of the restaurants which offers 100% organic dishes and
the flower shop as the first pick, buy and decorate flower
business in Iloilo City can contribute to the economy by
bringing growth in the society and progress in the
employment sector of our economy. Hence are the
following contributions of The Secret Garden Restaurant
and Flower Shop to the Philippine Economy: Produce high
and export quality of flowers that can compete with the
quality of flowers coming from other countries and to
minimize the imports of different varieties of flowers from
other countries,continuous employment and income for the
people of Iloilo City/ Panay; introduce to the Ilonggos the
healthy way of living and help the government through
taxation.
 Employment generation

Due to the size and expected market demand

of the firm, our business will be in need of
various professional chefs, waiting staff,
kitchen staff, maintenance crews,
managerial/administrative personnel and well
trained and experienced florist. As much as
possible we want that our employees are
Ilonggos and Ilonggas residing in Iloilo City/
Panay Island. Because it is our main priority to
help them improve their way of living and also
to promote the skills and abilities of our
Ilonngo kababayans.