A FEASIBILTY STUDY ENTITLED

ARROZ EL BURGER

A Feasibility Study Presented to the Faculty of the

Bulacan State University – Meneses Campus
Triple Junction Subd., Matungao,
Bulakan, Bulacan

In Partial Fulfillment of the Requirements for the Degree of

Bachelor Of Science in Business Administration
Major in Financial Management

Prepared by:
Fredrik Aldrei C. Concepcion
Lynea Ryziel B. Hina
Roby Emmanuel N. Ibe
Jonalyn V. Paraiso
Justine C. Wenceslao

May 2022
 APPROVAL SHEET

This Feasibility Study, "Arroz el Burger," prepared and submitted by Fredrik Aldrei

C. Concepcion, Lynea Ryziel B. Hina, Roby Emmanuel N. Ibe, Jonalyn V. Paraiso, and

Justine C. Wenceslao, is thus recommended for Oral Examination in partial fulfillment of the

requirements for Feasibility Study.

LEILA M. VALERO, MBA

(Adviser)

PANEL OF EXAMINERS

Examines and approved by the Panel of Examiners in an Oral Examination with a

Grade of ______ on __________.

DR. MARITA R. PAROBROB

(Chair)

MA. DAISY A. CAMUA MS. PATRICIA ANN DS. MANAHAN, CPA

(Member) (Member)

Accepted as a partial fulfillment of the requirements for the Feasibility Study

DR. ALBERTO J. VALENZUELA

(Dean, College of Business Administration)
 TABLE OF CONTENTS

EXECUTIVE SUMMARY ……………………………………………………………...…..1

MARKETING ASPECT

Demand

Target Market………………………………………………………..…...........4

Market Size & Trends…………………………………………………..……8

Past Demand Evaluation…………………………………………………..…9

Demand Projection……………………………………………………….…10

Supply

Competition…………………………………………………………………10

Project’s Capacity……………………………………………………..........11

Supply Projection…………………………………………………………..12

Demand and Supply Analysis…………………………………………………….13

Estimated Market Share………………………………………………………….13

Pricing……………………………………………………………………………...14

Marketing Program……………………………………………………………….17

MANAGEMENT ASPECT

Introduction
 Name of the Business, Form of Organization…………………………………

20

Vision, Mission, Organizational Goals……………………………….……..21

Organizational Chart…………………………………………........………..22

Human Resources

Job Description, Job Qualification, and Salary……………………….…......23

Recruitment, Selection, and Hiring of Workers………………….………....26

Policies and Regulations

Recruitment, Work Schedule, Compensation & Benefits…………………..27

Termination and Recognition Policy………………….………………........30

Complaints & Grievances…………………………………………...……...32

Code of Ethics, Hygiene and Sanitation……………………………...……..33

Technical Aspect

Technical Process

Raw Materials……………………………………………….……...35

Production Process………………………………………………….37

Process Flow……...………………………………………………...39

Service Flow…………………………………………………….…..40
 Business Location

Location Map……………………………………………………….42

Vicinity Map………………………………………………………..43

Plant Layout………………………………………………………...45

Capital Expenditures, Sources, Estimated Cost, and Contracts

Machineries & Equipment……………………………………………46

Tools………………………………………………………………….50

Furniture & Fixtures………………………………………………….53

Office Supplies……………………………………………………….55

Utilities

Electricity, Water Consumption, Telephone/Internet…………...........57

Waste Disposal Management…………………………………..…….58

FINANCIAL ASPECT

Major Assumptions………………………………………………………....60

Initial Capital Requirements and Investments………………………………61

Statement of Comprehensive Income………………………………..……..62

Notes……………………………………………………………….……….65
 Statement of Changes in Partners’

Equity…………………………………….66

Statement of Cash Flows……………………………………………………67

Statement of Financial Position……………………………………….……68

Notes………………………………………………………………………..68

Financial Analysis…………………………………………………………..72

SOCIO-ECONOMIC ASPECT

Government, Customers………………………………………..…………..74

Employees, Society……………………………………………………........75

References…………………………………………………………………..77
 EXECUTIVE SUMMARY

INTRODUCTION

This Project Feasibility Report for the planned food company "Arroz el

Burger" (translated as Rice Burger). This study evaluates the needs for the proposed

research, provides solutions to address the demands of food buyers, and outlines the

whole study, including managerial, marketing, technical, financial, and socio-

economic aspects.

This chapter provides quantitative information on the current market state in

the predicted business sector. This comprises the products and services that will be

offered, as well as marketing methods such as sales and distribution, pricing, and

advertising. The estimated fraction of a certain organization's predicted market share

attained over time. This figure represents a company's market share. One of the

purposes of this study is to estimate Arroz el Burger's market share. To discover out,

the researchers performed a survey among Malolos City residents aged 15 to 59.

Demographics help us understand the people and companies in a certain

region by providing information such as age, gender, family, shopping habits, and

consumer preferences, as well as size, industry, workers, and earnings. Age is the

most essential component in demographic segmentation since consumer preferences

alter with age. Teenagers, young adults, mature adults, and middle-aged adults are

examples of people who may display this feature. They are the intended market

because it is about relaxing. People nowadays, especially millennials who appreciate

trying new things and adults searching for a tranquil setting, were eager to test out this

new type of goods.

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 Arroz el Burger, a partnership, is owned by Mr. Fredrik Aldrei C. Concepcion,

Ms. Lynea Ryziel B. Hina, Mr. Roby Emmanuel N. Ibe, Ms. Jonalyn V. Paraiso,

and Mr. Justine C. Wenceslao. It is a general partnership since they will be in

charge of the partnership's administration and financial obligations. The partners

will hire a total of seven people: one general manager, one accountant, two

kitchen chefs, one cashier, and one staff/crew member (2).

The potential and technical feasibility of the project may be assessed after

evaluating the market size and region, product demand and growth. This stage is

concerned with the allocation of resources required for production and market

satisfaction. If all relevant technical aspects of the project have been evaluated, the

technical analysis will be regarded complete. The technical needs of the project must

be examined before predicting technical feasibility. This may be accomplished by

specifying the number and quality of items to be produced, as well as the

specifications of raw materials, supplies, machineries, and equipment to be employed,

as well as the personnel and utilities required.

In addition, the factory location, including size and layout. Furthermore, it

includes estimates of overall project cost as well as a list of the key capital cost

categories. The project proponent is now ready to examine technical feasibility after

completing the technical requirements.

Capital is the most fundamental requirement for a business, and Arroz el

Burger's collaboration demands a 300,000-peso initial contribution. In order to

account for a 10% rise in demand, the food sector chose to anticipate its financial

situation for the following five years. The sales for the stores begin with the number

of items to be sold and are reduced with income tax for each year's advancement. It

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also states that the financial position always increases and it's good for the business,

while partner's equity is the same capital but still increases each year to come in line

with the cash flow.

This chapter discusses the benefits of the proposed business and how it

impacts the economy, employment, the environment, the home, and the government.

According to what we indicated in our paper, the government, consumers, workers,

and society would all benefit the firm. As we all know, paying taxes is a legal

requirement for businesses. Arroz el Burger will pay its taxes on time, and it may

even assist the government enhance its service to many people.

When it comes to customers, their contentment will inspire the firm to provide

the greatest service and food to the consumers. Employees are the third component of

the socioeconomic element that will be addressed with the assistance of our company.

Even if there is no guarantee that every jobless person will find work through us, the

firm may certainly provide jobs for a few. Finally, our recycling efforts may provide

significant assistance to society. As a result, it may act as a model for other

businesses, encouraging them to take the same road.

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 CHAPTER I

MARKETING ASPECT

This chapter contains quantitative data that reflects the current state of the

market in the forecasted business sector. This covers the products and services to be

supplied, the market research study, which discusses the target market, market size

and trends, competition, and predicted market share, as well as marketing techniques

such as sales and distribution, pricing, and promotion.

Demand

The approximate proportion of an estimated market share is during a period of

time that a specific organization earns period. This figure represents a company's size

in its market.

One of the objectives for this study is to determine the estimated market share

of Arroz el Burger. To find out, the researchers conducted a study among Malolos

City residents ranging in age from 15 to 59 years old.

Target Market

Market Segmentation

Market segmentation separates a market into easily identifiable groups

of buyers with similar wants. When such categories are identified, they may be

targeted with a specific advertising mix tailored to their specific requirements,

desires, and inspiration.

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 Market Segmentation
Population of Malolos (15-59 years old)
Annual
Age Group 2015 Census Age Group Percentage Population
Growth Rate
15 to 19 25,072 9.95
20 to 24 23,530 9.33
25 to 29 21,331 8.46
30 to 34 19,985 7.93
35 to 39 19,510 7.74
0.75%
40 to 44 16,659 6.61
45 to 49 15,340 6.09
50 to 54 12,533 4.97
55 to 59 10,057 3.99
TOTAL 164,017 65%
Table #1. 2015 Census

From the 2015 Census of Malolos, the researchers calculated their target market

which is the total population of age groups’ 15 to 59 years old that sums up to 164,017

residents.

Market Segmentation

Historical Population of Malolos (15-59 years old)

Annual

Population 2015 2016 2017 2018 2019 2020 2021

Growth Rate

0.75% 164,017 165,247 166,486 167,735 168,993 170,260 171,537

Table #2. Historical Population

Market Segmentation

Projected Population of Malolos (15-59 years old)

Annual Population 2022 2023 2024 2025 2026

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 Growth Rate

0.75% 172,824 174,120 175,426 176,742 178,068

Table #3. Projected Population

With 0.75% annual population growth rate given, the researchers were able to

compute the possible historical and projected population of 15 – 59 years old in Malolos

starting from the year 2015 up to year 2026. The computations of which are shown above.

Demographic Segmentation

Demographics enable us to understand the people in any location, including age,

gender, family, purchasing habit, and consumer preferences, as well as the businesses in the

area, including size, industry, workers, and earnings.

Based on the concept map, it includes of visualizing the said consumers such as

teenagers, young adults, mature adults, and middle-aged adults which are the characteristics

of ages in the group of potential buyer. Since it is about unwinding, they are the target

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market. People nowadays wanted to experience this new type of goods, particularly

millennials who appreciate trying new things and adults looking for a relaxing environment.

Geographic Segmentation

The market is segmented geographically. as represented by geographic indicators

such as countries, states, regions, cities, postal districts, and zip codes The primary goal of a

business is to generate profit. An optimal showcasing strategy or marketing techniques is

required to reach this goal. Advertisers must understand the diversity of each client and

realize their needs through the numerous market segments.

Geographic Segmentation Local Malolos City

In 2022, the population of the city of Malolos was estimated to be 252, 074. This area

is the target market because it is known for being a densely populated city. It is also an ideal

location for assembling other unique products and innovations that the residents would

appreciate.

Behavioral Segmentation

Segmentation based on customer behavior patterns as they interact when buying

normally includes a sub-segment of consumer segmentation. Business organizations regularly

gather information to see the best to provide for their consumer behavior.

In behavioral segmentation, customers are sorted into group according to their

knowledge of, attitude towards, use of response to the service and product offered. It is

actually based on the attitude and behavior they exhibit.

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 By segmenting according to the willingness and interest of the consumer, first time

users and regular users of our product can customize the marketing which can make for each

group. Where potential and ex-buyer may appeal and demand for another or more marketing

approach. it is necessary to divide the customers into various portions and target them in a

concrete strategy.

Market Size & Trends

The number of potential buyers and sellers of an item or service in a given

market is referred to as market size. Thus, the residents of Malolos with ages ranging

from 15 to 59 years old would be the market size of the business, Arroz el Burger.

Arroz el Burger’s Market Size

Population in Malolos (2022) | 15 to 59 years old 172,824
Percentage of Respondents’ Willingness 96%
Market Size 165,911
Table #4. Market Size

The researchers used the total population of Malolos with the ages of 15 to 59

years old, which is 172,824, to assess the market size of the firm. This was multiplied

8
 by the 96% willing responders based on the conducted survey. A total of 165,911

people is interested in starting the business if it is successful.

Past Demand Evaluation

Average Total Demand

Municipality Year Target Market
Frequency (T.M x A.F)
Malolos 2017 166,486 53 8,823,758
2018 167,735 53 8,889,955
2019 168,993 53 8,956,629
2020 170,260 53 9,023,780
2021 171,537 53 9,091,461
Supply chain demand pattern analysis is a growing field. Customer and demand data

are analyzed by supply chain management to in an interest-driven worth organization, better

estimate demand over various time horizons. Because the planned business is new to the

market in the research area, there is a significant demand for "Arroz el Burger."

Table #5. Past Demand Evaluation

In order to compute for the past total demand, the researchers used the historical

population or target market from the year 2017 – 2021. (See Table #2). Each of them was

multiplied by the average frequency or the annual consumption of target market based on the

conducted survey which is 53.

Legends:

T.M. – Target Market | A.F. – Average Frequency

Average Total Demand

Municipality Year Target Market
Frequency (T.M x A.F)
Malolos 2022 172,824 53 9,159,672
2023 174,120 53 9,228,360
2024 175,426 53 9,297,578
2025 176,742 53 9,367,326

9
 2026 178,068 53 9,437,604

Demand Projection

Table #6. Demand Projection

The researchers used the projected population or target market from the year 2022 –

2026 (See Table #3) to assess the total projected demand. Each of them was multiplied by 53,

which is the average frequency or the yearly consumption of the target market based on the

conducted survey.

Legends:

T.M. – Target Market | A.F. – Average Frequency

Supply

An evaluation of the current supply of a good or service is conducted as part of a

supply analysis in a feasibility study to ascertain whether the supply is sufficient to meet the

demand for that good or service.

Competition

This section depicts the market rivalry for each of the aforementioned services in the

City of Malolos. Despite the fact that this type of business has not yet established itself in the

region, some are working in the Philippines and abroad, and they are seen as direct

competitors.

It would be a fantastic opportunity to open one in Malolos City, where there will be

no competition in the region. The planned company will be termed monopolistic. In the city,

the Rice Burger has some competitors, however they all serve different sorts of burgers.

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 Competitors Market Share Percentage

1. Jollibee 37%

2. McDonalds 34%

3. Other Burger Stalls 17%

4. Angel’s Burger 12%

TOTAL 100%

Table #7. Competitors

The table above presents the direct competitors chosen by the respondents based on

the conducted survey. The top competitor is Jollibee with a market share percentage of 37%.

Followed by McDonalds with a percentage of 34%, Other Burger Stalls (17%), and Angel’s

Burger (12%).

Project’s Capacity

The project business has a total practical capacity of 19, 586. The computation

is shown below.

Items Number of No. of No. of items No. of Total Items Practical Capacity
Hours Per Working Finished in Working Finished in (80%)
Item Hours per a day Days a Year
day
Rice Burger 17 minutes 10 hrs. 35pcs. 360 12, 600pcs. 10, 080
(Chicken) w/
Drinks

Rice Burger 18 minutes 10 hrs. 33pcs. 360 11, 880pcs. 9, 504

(Katsu) w/ Drinks
19, 586
Table #8. Project’s Capacity

The researchers used a practical capacity of 80% as according to an article by Kaplan

and Anderson, one might just assume that practical full capacity is 80 percent to 85 percent of

theoretical full capacity as a “rule of thumb”. Managers typically assign a lesser rate—say,

11
80%—to employees, leaving 20% of their time for breaks, arrival and departure,

communication, and training.

Supply Projection

A supply projection is an estimation of how many and what kind of potential

employees the organization might have. The researchers utilized the market share to calculate

total supply for the supply projection.

PROJECTED SUPPLY

Municipality Year Total Demand Market Share Total Supply

2022 9,159,672 83% 7,602,527

Malolos 2023 9,228,360 83% 7,659,538
2024 9,297,578 83% 7,716,989
2025 9,367,326 83% 7,774,880
2026 9,437,604 83% 7,833,211
Table #9. Projected Supply

The researchers used the total demand from the year 2022 – 2026 (See Table #6) to

assess the total projected supply. Each of them was multiplied by 83%, which is the market

share percentage from the direct competitors without other burger stalls based on the

conducted survey (See Table #7).

PROJECTED DEMAND AND SUPPLY GAP

A gap analysis is a technique for evaluating how well a business unit is performing to

ascertain whether business requirements or objectives are being fulfilled and, if not, what

actions should be taken to do so.

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 Municipality Year Total Demand Total Gap
Supply
2022 9,159,672 7,602,527 1,557,145
Malolos
2023 9,228,360 7,659,538 1,568,822
2024 9,297,578 7,716,989 1,580,589
2025 9,367,326 7,774,880 1,592,446
2026 9,437,604 7,833,211 1,604,393
Table #10. Projected Demand and Supply Gap

In order to compute for the gap, the researchers used the projected total demand from

the year 2017 – 2021 (See Table #5). Each of them was subtracted to each of the projected

total supply (See Table #9).

Demand and Supply Analysis & Market Share

Every business must understand its market share because it will be the foundation for

its marketing plans. It will specify the size of the market that we must satiate.

(2022-2026)

Year Demand Supply Supply Unmet Unmet Project’s Market

% Demand Demand Capacity Share
Percentage

2022 9,159,672 7,602,527 83% 1,557,145 17% 19, 586 1.26%

2023 9,228,360 7,659,538 83% 1,568,822 17% 19, 586 1.25%

2024 9,297,578 7,716,989 83% 1,580,589 17% 19, 586 1.24%

2025 9,367,326 7,774,880 83% 1,592,446 17% 19, 586 1.23%

2026 9,437,604 7,833,211 83% 1,604,393 17% 19, 586 1.22%

Table #11. Demand and Supply Analysis & Market Share

The table highlights the analysis of predicted demand and supply for the proposed

firm over a period of 5 years, demonstrating that demand is greater than supply during this

time period. The predicted demand is calculated by multiplying the target market's total

population by the average annual frequency.

13
 The supply is forecasted based on the market share of the prospective business's

existing direct competitors, as determined by the survey. The supply percentage is calculated

by dividing the supply by the demand and multiplying the result by 100.

Pricing Strategy

We come up with the cost-plus pricing strategy, it is a method where fixed percentage

of mark-up is added on the cost it takes on the product to produce and the resulting price will

be the selling price of the product. One of the advantages of cost-plus pricing it ensures that

the cost of producing the product is covered, allowing the mark up to provide a consistent

rate of return. It also helps to the new businesses with only few information about customer’s

willingness to pay, besides the price can be justified, customers understand the justification of

the selling price.

Direct Materials Per Unit Total

Chicken ₱ 10.67
Japanese Rice 2.38
Seasoning 0.67
Fish sauce 0.26
Oil 0.25
Calamansi 0.60
Garlic 0.60
Pepper 0.40
Mayonnaise 2.00
Ketchup 0.50
Direct Labor
Cornstarch Per Unit
1.33 Total
Bread crumbs ₱9.52
3.00
Egg 5.00 ₱9.52
Cabbage 1.20
DirectOverhead
Factory Labor Per Unit Total
Packaging 2.00
Rent Expense ₱9.52
3.21
Drinks 4.00
Depreciation expense – production 0.36 ₱9.52
Service Water
equipment 0.17
Estimated utilities
Freight in 3.26
0.05
Indirect Labor 7.38 ₱35.08
Indirect Supplies 0.02
Store Insurance 0.20

₱14.43

Total Cost Per Unit ₱59.02

14
 Table #12: Cost per unit of Chicken Fillet

Direct Materials Per Unit Total

Pork ₱ 27.50
Japanese Rice 2.38
Fish sauce 0.26
Calamansi 0.60
Seasoning 0.67
Oil 0.25
Garlic 0.60
Pepper 0.40
Mayonnaise 2.00
Ketchup 0.50
Cornstarch 1.33
Bread crumbs 3.00
Egg 5.00
Cabbage 1.20
Packaging 2.00
Drinks 4.00
Service Water 0.17
Freight in 0.05
₱51.91

Direct Labor Per Unit Total

₱9.52
₱9.52

Factory Overhead Per Unit

Rent Expense 3.21
Depreciation expense – production 0.36
equipment
Estimated utilities 3.26
Indirect Labor 7.38
Indirect Supplies 0.02
Store Insurance 0.20

₱14.43

Total Cost Per Unit ₱75.86

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 Table #13: Cost per unit of Katsu

As for the cost per unit, we measure and list the cost of each ingredient, direct labor,

and factory overhead for chicken fillet with the sum of 59.02 pesos that added the mark up of

50%, it comes with the selling price of 88 pesos for each chicken fillet rice burger with

drinks. And as for the katsu it also has the same ingredients except for the meat that will use

pork, the overall costs are 75.86 pesos with the same process it will be added with 50% mark

up and comes with the total of 113 pesos each with drinks.

COST PER SELLING

MARK UP
UNIT PRICE
(50%)
Php 59.02 Php 88.00

Figure #1: Pricing for Chicken Fillet

COST PER SELLING

MARK UP PRICE
UNIT
(50%) Php 113.00
Php 75.86

Figure #2: Pricing for Katsu

MARKETING PROGRAM

PROMOTIONAL STRATEGY

The business will use the following varieties of sales promotional strategies that an

entity can use to increase the sales:

16
  Flyers/Leaflets
As an effective and affordable way of promoting the business, it can scope wide range

of potential buyers by distributing them to different places around Malolos, such as school

campuses, malls, park, as well in areas nearby the store. Flyers containing complete

information about the business including the name of the business, exact location of the store,

the food products that they can buy, and the process on how they can avail the offered

products, it can be through online or in our physical store.

Because we’re in a digital generation we decided to add a QR code that allows people

to instantly link to our social media campaigns for updates and more information using their

smartphones. Including incentives in flyers by offering discounts in the first purchase will

also give in limited pieces with a less in price by showing the voucher code written in the

flyer, it can attract people to buy our product with the use of flyers.

It will be distributed 2 weeks before the launching of the product and in opening of

the business, it will also disseminate in the first 2 months of establishing the business. A

quota of 300 flyers a week and a total of 3000 pieces for the whole time of handing out the

flyers. While giving flyers to the people, employees also use a word-of-mouth strategy to

encourage people to visit and try the products offered and recommend to their friends and

family.

 Social Media

Prospective partners are recommended to create a Facebook page, a Twitter account,

and an Instagram account, as most of the target market now uses these websites as a pastime.

 Tarpaulins/Posters

Tarpaulins were also designed to be used as an alternate means of promoting our

products. This will be custom-designed tarpaulins that will be placed in public areas such as

17
roads. The company decides to employ tarpaulins as an alternative method of advertising our

products since it is much less expensive than other choices such as television advertising or

LED billboards, but it also reaches a larger audience and is immediately recognized by

potential customers.

CHAPTER II
MANAGEMENT ASPECT

The management section discusses the company's name, type of organization, vision

and mission, organizational goals, organizational chart, manpower resources, job descriptions

and qualifications, worker recruitment, selection, and hiring, policies and regulations, project

schedules, and management feasibility.

NAME OF THE BUSINESS

Arroz el Burger is a company that offers goods with unique variants, such as the rice

burger, which uses compressed rice instead of hamburger buns and uses chicken as the burger

patties. The term "arroz" is derived from the Spanish word "rice," it will entice shoppers to

make an exception in the burger company.

Figure #2. Logo of Arroz el Burger

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FORM OF ORGANIZATION
Arroz el Burger is a partnership type of organization which is owned by five people,

specifically by Mr. Fredrik Aldrei C. Concepcion, Ms. Lynea Ryziel B. Hina, Mr. Roby

Emmanuel N. Ibe, Ms. Jonalyn V. Paraiso and Mr. Justine C. Wenceslao. Because the

partners will be accountable for the partnership's administration and financial duties, it is

referred to as a general partnership. All of the profits will be split between the owners. Profit

will be split in half. We chose partnership since it is a low-cost way to get started and has

fewer overhead costs.

VISION

“To fulfill people's appetite while also helping them keep fit and healthy, it has

become one of the most well-known enterprises in the food sector.”

MISSION

“Rice burger offers the highest quality product possible, made with premium

ingredients at a price that customers can afford.”

ORGANIZATIONAL GOAL

The goal of this initiative is to become more aware of the market's external and

internal environments. The project's goal is spelled out below:

1. In order to figure out how much demand and supply there is in Malolos City.

2. To determine the demographic profile with the highest consumption in terms of

product purchases.

3. Identifying the factors that a buyer considers while making a purchase.

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ORGANIZATIONAL CHART

Fredrik Aldrei C. Concepcion

Lynea Ryziel B. Hina
Roby Emmanuel N. Ibe
Jonalyn V. Paraiso
Justine C. Wenceslao
(PARTNERS)

GENERAL MANAGER

ACCOUNTANT

COOK

CASHIER

20
 STAFF

Figure#3. Organizational Chart

The diagram above depicts the various organizational positions. It also implies that if

something goes wrong in the organization, they will know who to contact.

Human Resources

Table #14. Human Resources

POSITION NO. OF EMPLOYEES

General Manager 1
Accountant 1
Kitchen Chef 2
Cashier 1
Staff/Crew 2
Total No. of Employees 7

Job Description, Job Qualification, and Salary

The following are the roles and responsibilities, and requirements for each business

member:

General Manager (Php 35,000/month)

Job Description: The general manager ensures that all work objectives benefit the

business. The manager sets goals and objectives to ensure that the shop runs smoothly

and efficiently. They also make sure that customers have a great time at the restaurant

and that staff are happy with their workload, duties, and work environment.

Job Qualification:

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  High School diploma or the equivalent required. Associates degree or higher

preferred.

 Experience in restaurant/food service staff management and development is

preferred

 Strong understanding of cost and labor systems that lead to business

profitability

 Strong communication and leadership skills

 Time management

 Comfort working with budgets, payroll, revenue, and forecasting

Accountant (Php 25,000/month)

Job Description: The accountant is in charge of the business’s financial data

administration and reporting. Preparing financial statements, inspecting and analyzing

a company's accounts, and ensuring compliance with financial reporting and other

standard accounting practices are their duties.

Job Qualification:

 Bachelor’s or master’s degree in tax, accounting, or finance

 Certified Public Accountant

 Experience with financial reporting requirements

 Experience in working with multiple legal entities under different legal

umbrellas

Kitchen Chef (Php 20,000/month)

Job Description: The kitchen chef oversees resolving all food-related issues and

ensuring that all food preparation demands are met at the shop where food is provided

on a regular basis.
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 Job Qualification:

 Proven work experience as a Chef or Cook

 Hands-on experience with various kitchen equipment

 Excellent time management abilities

 Familiarity with sanitation regulations

Cashier (Php 13,000/month)

Job Description: The cashier’s responsibilities include collecting orders and

accepting payment from visitors, maintaining a clean atmosphere, and responding to

difficulties and problems that affect guests. They are also in charge of storing food

and other goods with the help of the kitchen chef, which is needed for the business’s

smooth operation.

Job Qualification:

 High School diploma or the equivalent preferred

 Customer service or cashier experience

 Ability to handle transactions accurately and responsibly

 Basic math and computer skills

 Attention to detail

 Helpful, courteous approach to resolving complaints

Staff/Crew (Php 10,000/month)

Job Description: The staff/crew member is responsible for providing exceptional

guest service and support while working closely with the general managers and other

members to maintain operational standards and procedures. Specifically, they are the

23
 ones who greet guests with a smile, receive orders, process payments, and respond

appropriately to customer issues.

Job Qualification:

 Willing to accomplish all business tasks

 Comfortable working in a fast-paced environment

 Ability to interact productively with co-workers and function well in a team

environment

 Ability to resolve consumer issues with tact

Recruitment, Selection, and Hiring of Workers

RECRUITMENT

1. Recruitment Policy

It's here that the open positions are assessed and described. It contains job

specifications as well as the nature of the job. The potential employee should be

qualified, experienced, and capable of taking on the tasks necessary to meet the

organization's goals.

2. Strategy Development

This is about how to recruit a possible employee for the company and which

technique to use.

3. Searching

The search begins after the line manager verifies and approves the existence of

the vacancy. The search for a potential employee begins.

4. Screening

24
 It's where the process of sifting through potential employee applications takes

place. A new selection procedure.

5. Evaluation and Control

The process and methods are evaluated for their efficacy and validity.

SELECTION

1.Preliminary examination.

A candidate fills out an application form and/or uploads a résumé for the

"Arroz el burger" company's initial screening, which is followed by a 30-minute or

shorter interview. The job application asks about the applicant's educational

background, employment experience, and job duties.

2. Testing for employment is a common practice.

You invited to complete one or more exams, such as the I.Q. Personnel Tests,

after initial screening. For each stage of the hiring process, impacted provides a set of

pre-employment exams.

3. Interview for a position.

The selection interview, which entails a thorough assessment of an applicant's

work history, skills and abilities, education, and career interests, is the most common

approach for determining hiring decisions. Many persons, including the position's line

manager, may interview a candidate for a management or professional role. This

interview is used to determine a person's communication skills and motivation.

4. Check your background and references.

25
 If a candidate passes the screening process, most companies look into their

history and verify their references.

5. Physical examinations (including Drug Test)

A medical examination of a candidate may be required by "Arroz el Burger"

to ensure that he or she is physically competent of fulfilling employment obligations.

6. The hiring decision was made.

If an applicant passes all of the selection procedures, they will be hired;

however, the job offer may be conditional on passing a physical exam and/or a drug

test.

Hiring Process

1. Apply for a job.

2. Screening interview.

3. Interviews.

4. Assessment.

5. Documentation.

6. Contract Offer.

7. Follow-up.

Policies and Regulations

1. Recruitment Policy

It's here that the open positions are assessed and described. It contains job

specifications as well as the nature of the job. The potential employee should be qualified,

26
 experienced, and capable of taking on the tasks necessary to meet the organization's

goals.

2. Work Schedule

The organization's operations will begin at 10:00 A.M. and terminate at 7:00 P.M.

WORK SCHEDULES
POSITION TIME TO GET TO WORK TIME FOR WORK TO BE
FINISHED
General Manager 10:00 AM 7:00 PM
Cook 10:00 AM 7:00 PM
Cashier 10:00 AM 7:00 PM
Staff 10:00 AM 7: 00 PM

3. Compensation and benefits

With the direction of the law under the Labor Code of the Philippines, stated that

employees are eligible to receive financial benefits. The law also requires the employees to

have Pag-IBIG Fund, SSS, and PhilHealth membership and remit a monthly contribution.

1. Employee salary and minimum wage

POSITION NO. OF Rate of Employees Rate of Employees

EMPLOYEES (Monthly) (Annually)
General Manager 1 35,000 420,000
Accountant 1 25,000 300,000
Kitchen Chef 2 20,000 x 2 = 480,000
40,000
Cashier 1 13,000 156,000
Staff/Crew 2 10,000 x 2 = 240,000
20,000
Total wages 133,000 1,596,000

2. Overtime pay

27
 Overtime pay gives to the employees who worked beyond the given working hours

and gives an additional 25% in his/her regular wage.

3. Premium Pay

It is given as an additional compensation for the official holidays with at least 30%

added in regular salary and minimum wages.

a. Regular Holidays – these refer to fixed dates like Christmas Day, Independence Day,

or New Year’s Day. However, National Heroes Day and Holy Week are considered

regular holidays despite changing dates.

b. Special Holidays – also known as Special Non-Working Holidays, they fall on

flexible dates, depending on the circumstance.

4. 13th Month Pay

13th Month Pay is a bonus mandated by the law to give the employees before

Christmas day, it can also grant in two installments for the month of May and December or

fully release in December.

4. Termination Policy

The employment separation process should be as straightforward as possible for all

parties. It is possible to avoid miscommunication and distrust between the employee and the

organization.

This policy on termination of employment applies to all prospective and current

workers of the company. In the case of a prospective separation of employment, the

organization should be contacted.

28
5. Recognition Policy

Purpose

Arroz el Burger are committed on recognizing employee contributions to the overall

objectives of the company. We support and encourages programs that acknowledges and

formally recognizes employees for their exemplary performance and continuous service

in the form of rewards and recognition. In addition, the company believes that employee

rewards and recognition can contribute to and maintain a high retention rate and

encourage excellence in providing our products and services to the customers that we

serve. 

Scope: This policy is applicable to all regular employees of the company.

Definition:

Reward – monetary or non-monetary award is given for outstanding performance by the

employee/s developed by the company.

Formal Rewards – it is being used for rewarding the employees within set defined

guidelines.

Informal Rewards – recognizing the efforts of employees on an immediate basis, it is

the most effective means of rewarding.

Performances that can be rewarded:

29
 This recognition and reward program exist to honor and acknowledge excellence of

the employees at work.

Productivity – it refers to efficiently completed the job with specific amount of time.

Long – term employment – it refers to works with the company over an extended

period.

Excellent customer service – the term refers to assists all the customers’ needs and can

handle complaints.

High level of skills – this can do the job more than expected, someone have

professionalism.

Innovation – it is someone who can create a new product for the menu.

Outstanding performance – it’s to inspire others through their dedication and

commitment to work.

Outstanding team performance – it is ability of the employees to work together, having

a good relationship and can achieve common goals.

6. Complaints and Grievance

Employee’s Grievance Disciplinary Actions

Wage dissatisfaction 1st warning 2nd warning 3rd warning

Work schedules that are 1st warning 2nd warning 3rd warning
inequitable
Dissension about the 1st warning 2nd warning 3rd warning
number of hours to be
worked
Inequitable working 1st warning 2nd warning 3rd warning
conditions
Discrimination in the 1st warning 2nd warning 3rd warning
workplace
Harassment of an 1st warning 2nd warning 3rd warning
employee
30
 Performance criteria that 1st warning 2nd warning 3rd warning
are inconsistent
Legend:

1st warning - private conversations with employees

2nd warning - sends a statement to the employee stating that he or she will not do it

again

3rd warning - depending on the severity of the conduct, there will be a suspension.

7. Code of ethics

a. Regulations and legislation

 Employees must obey the guidelines set out by the government for restaurants

and may not follow any other set of rules.

b. Corporate Opportunities and Fairness

 Employees are not allowed to discuss business matters with anyone, especially

other businesses. This covers both recipes and job openings.

c. The customers

 Employees, particularly waiters and waitresses, must be conscious of how they

handle clients. When attending to them, personnel must be fair and equitable,

but they must also bear in mind the various histories of these consumers, and

they must not be unpleasant or crass in any manner.

8. Hygiene and Sanitation

a) Keep yourself and your work areas clean.

31
 b) To avoid food contamination, keep raw meats and materials separate from other

foods.

c) Always cook and prepare things appropriately.

d) Store items before and after they've been cooked.

CHAPTER III

TECHNICAL ASPECT

This chapter describes the manufacturing process as well as the business's operations.

It also details the manufacturing machinery and other aspects of transforming raw materials

into completed goods ready for sale. The layout, size, and buildings of the plant are all shown

to help identify the company activity.

TECHNICAL PROCESS

This section of the research outlines the materials required to complete the project.

The proposed business's day-to-day operations the service flow, or the procedure for getting

items and services to clients, is also being addressed.

RAW MATERIALS

A raw material, often known as unprocessed foods or, more accurately, a

natural ingredient, is a basic element used to make delicious tasting meals.

32
Rice Swamp grass is a type of grass that is frequently farmed as a food
source, particularly in Asia.

Chicken and pork a Japanese meal in which a piece of meat, generally chicken, or a ve

katsu getable is breaded and fried before being cut into strips and served 
with a sauce.

Breading Mix a coarse dry combination of flour, starch, and seasonings used to co

at wet or battered food objects before cooking.

Soy Sauce a sauce made with fermented soybeans

Mayonnaise egg yolks are beaten with oil and vinegar and seasoned to make a ri
ch creamy dressing.

Seasoning To enhance the flavor of food, salt, herbs, or spices are used. When 
we asked about seasoning, the first thing the chef answered was that 
it is crucial. It provides complex flavors and combines various com
ponents to produce well balanced, flavorful cuisine. 
Sweet, savory, acidic, or bitter seasonings are all options.

Oil Cooking oil is a liquid fat that comes from plants, animals, or synth
etic sources and is used infrying, baking, and other sorts of cooking.
It's also known as edible oil because it's used in food preparation an
d flavoring that doesn't involve heat, such as salad dressings and bre
ad dips.

Lettuce A daisy-
like cultivated plant with edible leaves that are frequently used in sa
lads.
Many lettuce cultivars have been developed with a variety of shapes
, textures, and colors.

Garlic A pungent
smelling bulb that's used as a flavoring in cooking and in herbal trea
tment.

Mustard Sauce sauce made using prepared mustard, vinegar, and vegetable oil, as 

well as sugar and seasonings

Vinegar A sour-
tasting liquid made by the fermentation of weak alcoholic liquids, s
uch as wine, cider, or beer, and used as a condiment or for pickling.

Tomatoes glossy red, or occasionally yellow, pulpy edible fruit used as a veget
able or salad ingredient.

33
 Onion Pungent
tasting edible bulb made up of multiple concentric layers that is use
d in cooking.

Ketchup a smooth, condiment-like sauce consisting primarily with tomatoes 
and vinegar.

PRODUCTION PROCESS
It is measuring the time of step-by-step process of making and

preparing the product to become ready to serve to the customers. This method

consists of inputs which are the ingredients needed to make the output which

is the final product for the consumers to buy. Production depends on the type

and nature of the business, in our case, we proposed a food business which

involved various processes including washing, cutting, cooking, dressing etc.

before serving to the customers.

Activities Rice Chicken Pork Katsu Vegetables Add-ons Total time per
(Egg, activity
Bacon)
Washing 5 mins 30secs 30secs 30 secs 5 mins & 30
secs
Cutting 30 secs 30 secs 30 secs 1 min
Add flavoring/breading 30 secs 30 secs 30 sec
Cooking 30 mins 5 mins 6 mins 1 min 36 mins
Straining 3 mins 2 mins 2 mins 30 secs 1 min 4 mins & 30 sec
Molding 1 min 1 min

Total time per 39 mins 8 mins & 9 mins & 1 min & 30 2 mins 50 mins and 30
Ingredient 30 secs 30 secs secs secs
Plating / Dressing 1 min

Figure #4
Standard Time Process Per Item
Activities Drinks
Mixing 3 mins
Cup/Glass filling 30 secs
Total time 3 mins & 30 secs
34
 (32 secs per unit)
Table #15

PROCESS FLOW
A process flow is a visual representation of the steps involved in

carrying out a business procedure. Inputs or information requests are shown

first, followed by each of the procedures necessary to have good quality of the

product being sold. The general flow of cook processes and ingredients would

Purchasing of Goods Food Sanitation Food Preparation and Process

be affected by process

flow.

35 Food Packaging
Serving of Food
 Figure # 5

PROCESS FLOW

The proposed business's process flow will begin with the acquisition of

raw components, followed by cleanliness of the ingredients. Following that,

the meal preparation and preparation process will commence. Following that,

the goods will be packaged. Following that, clients will be served freshly

prepared cuisine.

Ingredients needed for Rice Burger:

 2pcs Rice Buns

 1pcs Chicken or Pork Katsu
 Sauce
 Lettuce
 Tomatoes
 Ketchup
 Onion

Procedure:

1. Prepare all the ingredients needed in the production process.

2. In a pot, prepare and wash the uncooked rice, Pour the rice pot half
of water, then place it on the stove to heat. Wait for the rice to boil,
settle and finish cooking.
3. Using a molder, form the rice into rice buns.
4. Cook each side of rice buns in a hot pan with oil. When it’s done,
set aside.
5. Put the katsu in a bowl with cornstarch and flour and coat evenly.
6. In a frying pan, heat the oil. Place the chicken in the oil and wait
until it is hot before frying. When the food is done, set it aside.

36
 7. To make the rice burger, combine all of the ingredients. On the
bottom, put a rice bun, lettuce, katsu, onion, sauce and ketchup,
and top with another rice bun.
8. Serve the rice burger in their packaging.

SERVICE FLOW

It will present how good the service we offer to the customer in taking their

order. It is a kind of polite and customer friendly service flow to show them our

excellent customer service because as a company with the application of our code of

ethics, the customer is very important and we are committed to give the best quality

service we can offer to them. Attract more customers, retain their loyalty and good

feedback are only some of the benefits of having an excellent customer service.

37
 Figure #6. Service Flow

BUSINESS LOCATION
The details of Arroz el Burger's location are discussed in this section.

The discussion will include the prospective business's location map,

neighborhood map, and plant layout.

LOCATION MAP

The location of a company's activities is important to its success the expansion in

general any firm must have a location that is conducive to its success. Customers will find it

highly accessible and useful. This section contains information on the prospective business's

physical location.

The location of the said business will be at the Twins Plaza addressed in MacArthur

Hwy, Malolos, 3000 Bulacan.

38
VICINITY MAP

This section will depict the surrounding area and place of the planned business. There

are several establishments and businesses nearby such as Puregold, Xentro Mall, etc. which

may assist in the promotion of the business.

39
LAY-OUTS

This section depicts the proposed Arroz el Burger’s floor plan.

On the following page, a scaled diagram or the full layout of the shop

is shown.

Figure #7
Plant Lay-Out

40
 Figure #8
Front View

Figure #9
Inside View

CAPITAL EXPENDITURES, SOURCES, ESTIMATED COST, AND CONTRACTS

41
 The planned business's capital expenditures are discussed in this section. A company's

capital expenditures are cash used to purchase, update, and maintain tangible assets such as

land, plants, buildings, technology, and equipment.

The following table shows the planned business's construction costs.

MACHINERIES & EQUIPMENT

Item Specification Supplier Qty Lifespan Price

 Heavy Duty Waltermart 2 7 P4,595.00

Automatic Supermaker,
Commercial Rice Malolos,
Cooker Bulacan
 7.8L capacity
 45 cups of raw
rice maximum
(cup included)
 220v/60Hz
Rice Cooker

Burger Griddle w/ Deep-  Net Weight: 33 San Rafael, 2 5 P13,

Kg Bulacan
 Dimension: (Central 500.00
 87 cm x 49 cm x Luzon)
44 cm
 Fryer Capacity:
10L
 Suggested oil fill:
6L
fryer
Hot Display (Food  Model: LD-2P1 Waltermart 1 5 P6, 199.00
Warmer)  Wattage: 500w Supermaker,
 Voltage: 220v Malolos,
 Dimensions: Bulacan
380x460x600mm
 Dry Food
Warmer for Pies,
Fried, Pizza etc

42
 Refrigerator (for  Dimensions: Abenson, 1 12 P17,
(h:w:d) 154 : 53 : Waltermart
58 cm Malolos, 950.00
 7 cu.ft. Showcase Bulacan
Chiller
 7 Level
Temperature
Control
 Clean Back
Design
 Fan Cooled
System
 Aluminum Inner
Lining
 3 Adjustable Wire
Vegetables) Shelves
 Adjustable
Levelling Feet
 Dimension: Abenson, 1 15 P11,
774.5: 749.25: Waltermart
558.75 in mm Malolos, 850.00
 4 cu.ft Solid Top Bulacan
Chest Freezers
 220V/107W
 2 in 1 function –
Freezer or chiller
 8-level frontal
temperature
control
 Grip handle/Key
Refrigerator (for Meat) lock
 Single wire
basket/ Roller feet
 Brand: Solane McArthur 2 P1,226.00
 Product No.: Highway
375209 Bulihan, Mal
olos City,
Bulacan

Gas

43
Beverage Dispenser  Vatti Philippines Metro 1 5 P15,
 Fast Heating, Manila,
Cold Water, Philippines 290.00
Temperature
Select

Sink  Stainless Steel Ace 1 10 P2, 580.00

 Bar Faucets Hardware
 Kitchen Size Dish Waltermart
Basin Pool Thick Mall
Handmade Sink Malolos
Set

 Model: DH- Harca Bldg, 3 10 P9, 700.00

IPCHDBW4421E 91 Paseo del
(AS) Congreso St,
 Image Censor: Malolos,
1/3” 4 Megapixel 3000
2688(H)x1520(V) Bulacan
3000
Malolos,
Philippines

CCTV

Rice Cooker

A rice cooker is a rice-boiling or steaming machine that operates automatically

in the kitchen.

Burger Griddle

A burger griddle is a cooking equipment that consists mostly of a large, flat

cooking surface.

44
 Deep-fryer

It can be used to heat cooking oils (fats) so that products can be submerged in

hot oil and fried thoroughly.

Hot Display (Food Warmer)

A tabletop appliance for keeping prepared food at the proper serving

temperature.

Refrigerator (for Vegetables)

The use of a refrigerator as a safe storage facility can help you avoid becoming

ill from a food-borne illness.

Refrigerator (for Meat)

To keep food cold so that it can be used for the next serving. Food stays

fresher for longer when it is kept cold.

Beverage Dispenser

Dispensing beverage goods is the aim of this machine. It's commonly used to

serve water, soft drinks, slush drinks, and other beverages.

Gas

The heat in the kitchen is provided by a gas stove, which ensures that the food

served is as hot as it should be.

Sink

It is a bowl-shaped plumbing device that can be used for handwashing,

dishwashing, and other tasks.

45
CCTV

This is useful for both monitoring the business and ensuring the security of the

shop.

Tools
The business will use these kitchen tools in cooking and preparing the

products to be served for the customers.

46
 Items Usage Supplier Price Qty
Measuring cup and To measure the volume of All Homes ₱ 220.00 1
spoon liquid or amount of Malolos
powder substances that
are used as cooking
ingredients.

Stainless Tong To grip and lift food All Homes ₱ 89.75 2

basically use in deep Malolos
frying

Chef Knives For cutting meat and All Homes ₱ 369.00 1 set
vegetables Malolos

Cutting Board Commonly used in All Homes ₱ 169.75 1 set

preparing food and to Malolos
place material for cutting

Sauce Dispenser To hold, organize, portion All Homes ₱ 200.00 4

and dispense different Malolos
condiments

Rice Spatula To mix, scoop the rice All Homes ₱ 115.25 2

and put to the molder Malolos

47
 Molder (For Rice For shaping the rice and All Homes ₱ 79.50 2
Buns) turn it into a rice bun Malolos

Serving plate For serving dine in orders All Homes ₱ 239.75 15

Malolos

Paper Cup with Lid To serve cold drinks Jirou ₱ 2.50 50

22oz offered. Marketing,
We used paper cups to Guiguinto
help reduce plastic Bulacan

Packaging (for Take Disposable and eco- Jirou ₱ 3.00 50

out) friendly box packaging Marketing,
for takeout orders. Guiguinto
Bulacan

FURNITURES AND FIXTURES

The company will also buy its furniture and fixtures locally at the

lowest possible cost while maintaining great quality.

48
 Name Specification Supplier Price Qty Lifespan

Counter Table All Homes P7, 1 5

Employees use this area Malolos 839.40
to accommodate
consumers by taking and
serving their orders.

Café Table All Homes P6, 2 5

It’s a low table that can be Malolos 600.00
placed in a sitting area to
provide handy support for
foods and drinks.

Chair All Homes P1, 6 5

Connected to the café Malolos 280.00
table so that you may sit
and relax while you wait
or eat your food.

Bar Table All Homes P3,616.00 1 5

Serve as a focal point for Malolos
the show while also
serving as a useful
location Behind a tall
couch, a bar table looks
great.
Ceiling Light All Homes P1,456.00 4 3
Ceiling lights provide Malolos
good practical general
lighting when people are
in the shop since they
have a large illuminating
surface.

49
Sink (for Comfort Both employees and All Homes P2,550.00 1 10
Room) customers will be able to Malolos
wash the appropriate
items.

Toilet A piece of sanitary All Homes P5,550. 1 10

hardware for collecting Malolos
human urine and
excrement, as well as
toilet paper, and disposing
of it.

The furniture and fittings shown in the table above are those that the firm

purchased the item, which will be used in the business. It also demonstrates each

item's price and quantity are determined by its quantity.

The supplier of the furniture and fixtures is the All Home Malolos (Vista

Mall) which is located in MacArthur Hwy, Malolos, Bulacan

OFFICE SUPPLIES

Equipment is also utilized at the office, counter, store room,

staff room, and micro shop. In order to provide excellent and satisfied

service, the following equipment is required.

Name Specification Supplier Price Qty Lifespan

50
 Cash Register Abenson, P30, 058.34 1 10
All in One POS Malolos City
System 15.6 inches
has a drawer that
holds cash.

Air Conditioner o Samsung P28, 932.00 2 10

Digital SM
Inverter Appliances,
2.0hp Pampanga
Model
o Model:
1302736354_
PH-
4741868282
Telephone 5
Panasonic KX- PLDT, P1,700.00 1
TS50 Malolos City

Electric Fan o Model: 3

STF9812B/ Abenson, P999.00 1
TF9316B Malolos City
B1G1
o Brand:
Dowell

Water Dispenser 5
Imarflex Hot & Abenson, P5, 061.70 1
Cold IWD-1130W Malolos City

Cash Register

51
 The cashier at the counter uses it. Its objective is to

capture and print the customer's receipt, which serves as their

ticket, as soon as possible.

Air Conditioner

This is utilized at the office to ensure that the

environment is well ventilated.

Telephone

This is for the purpose of communication. It is going to

be used to allow customers to contact the company business,

particularly if they have some reservations or if They'll look

into it. It may also be used for various types of company.

transactions.

Electric Fan

This allows for good ventilation in the workplace,

allowing people to work efficiently.

Water Dispenser

Hot and cold water are available from the dispenser.

UTILITIES

ELECTRICITY

The electricity source of the venture will be provided by the Manila Electric

Company also known as “Meralco” and the monthly bill for the service will be paid.

52
It is a must of usage for the said business since it includes the machineries and

equipment being utilized in operations through electricity.

WATER CONSUMPTION

Water is very important to a company for its employees and customers, Arroz

el Burger decided to get the supplier PrimeWater City of Malolos in Malolos, Bulacan

because the water company provides good service and clean water to those who drink

it. For a business structure with a consumption of 0-10 cubic meters, the PrimeWater

City of Malolos district rate is P242.00.

TELEPHONE/INTERNET

Converge is our chosen telecommunication because it has a fast internet

connection that speeds up the transaction for our customers to order from us, and it is

also a fast transaction for the staff of Arroz el burger because Converge also offers the

telephone, which makes it faster to have a connection with people who can't come to

our place and order online.

Waste Disposal Management

Republic Act (RA) No. 9003, otherwise known as the Ecological Solid Waste

Management Act of 2000, declares the policy of the state to adopt a systematic,

comprehensive and ecological solid waste management program that ensure the

protection of public health and environment, and the proper segregation, collection,

transport, storage, treatment and disposal of solid waste through the formulation and

adoption of the best environmental practices.

The proposed business assures that the aforementioned law will be observed

while running the shop. Thus, trash will be appropriately sorted as well, with waste

53
 classes being classified. There will be two (2) garbage bins placed inside the store,

separately labeled as biodegradable and non-biodegradable. To promote and ensure

the health of the customers as well as the workers/employees, proper waste disposal

must be observed and maintained. Garbage will be properly managed and stored by

the crew every day until it is collected. These wastes shall be collected by the garbage

collector and to be disposed of in the disposal facility of the City provided.

CHAPTER IV

FINANCIAL ASPECT

MAJOR ASSUMPTIONS
1. The partners will contribute equally to the initial capital requirement of the business, any

excess be treated as working capital reserves. Additional equal contribution will be

provided equally depending on business need.

2. Each partner is entitled for equal allocation of income (loss) after tax for every financial

period.

54
3. Each partner is allowed for a maximum of 10% withdrawal of income after tax for every

financial period.

4. Sale price is the 150% of the projected cost of production and is assumed to be relatively

increasing across periods by 10% due to increasing demands.

5. A relative increase on sales brought a 10% increase on net purchases for the year.

6. Raw materials as at year-end are estimated to be 5% of total purchases for the year.

7. The salaries and wages are assumed to increase 1% for every year of service.

8. It is assumed that 90% of rentals for commercial space and utilities are designated mainly

for production. The increase on estimated revenue will result to a corresponding 10%

increase on utilities expenses.

9. As the products are prepared on an order basis, no work in process or finished goods

inventory estimation as of year-end. Any consumable left over will be disposed as scrap

sale to employee.

10. The salaries and wages are assumed to increase 1% for every year of service.

Initial Capital Requirements and Investments

Production equipment 111,610.70 Concepcion, Capital 300,000.00

Furniture and other equipment 165,980.34 Hina, Capital 300,000.00
Purchase of raw materials (3 months) 550,000.00
Ibe, Capital 300,000.00
License, permit and registrations 4,000.00
Employee compensation (3 months) 399,000.00 Paraiso, Capital 300,000.00
Marketing expense 20,000.00 Wenceslao, Capital 300,000.00
Conduct of feasibility study 5,000.00
Utilities (3 months) 46,826.00 1,500,000.00
Rental expense (3 months) 45,000.00
Insurance 100,000.00
Reserve for working capital 52,582.96
Notes:
Total initial project cost 1,500,000.00

55
  The partners will contribute equally to the initial capital requirement of the

business, any excess be treated as working capital reserves. Additional equal

contribution will be provided equally depending on business need.

 Each partner is entitled for equal allocation of income (loss) after tax for every

financial period.

 Each partner is allowed for a maximum of 10% withdrawal of income after tax

for every financial period.

Statement of Comprehensive Income

2023 2024 2025 2026 2027

Notes Php
Sales 1 5,065,200 5,571,720 6,128,892 6,741,942 7,416,297
Less: Cost of sales 2 3,301,641 3,646,017 3,914,064 4,208,141 4,530,844
Gross profit 1,763,559 1,925,703 2,214,828 2,533,801 2,885,453
Less:
Marketing expenses 20,000 20,000 20,000 20,000 20,000
Administrative expenses 3 810,738 820,492 830,552 840,942 851,688
Other expenses 4 7,200 2,420 2,662 2,928 3,221
Net income before taxes 925,621 1,082,791 1,361,614 1,669,931 2,010,544
Less: Income tax expense 5 185,124 216,558 272,323 333,986 402,109
Profit for the period, representing the
total comprehensive income for the
year 740,497 866,233 1,089,291 1,335,944 1,608,435

Notes:

56
 1. Sales

2023 2024 2025 2026 2027

Units
Chicken burger 25,200 27,720 30,492 33,542 36,897
Katsu burger 25,200 27,720 30,492 33,542 36,897
50,400 55,440 60,984 67,084 73,794

2023 2024 2025 2026 2027

Php
Chicken burger 2,217,600 2,439,360 2,683,296 2,951,696 3,246,936
Katsu burger 2,847,600 3,132,360 3,445,596 3,790,246 4,169,361
5,065,200 5,571,720 6,128,892 6,741,942 7,416,297

 Sale price is the 150% of the projected cost of production and is assumed to be

relatively increasing across periods by 10% due to increasing demands.

 No estimate of return and discount is provided.

 Sale is presented net of Output Vat.

2. Cost of Sales

57
 2023 2024 2025 2026 2027
Php
Direct materials
Raw materials, beginning - 110,000.00 121,000.00 133,100.00 146,410.00
Purchases (net of VAT) 2,200,000.00 2,420,000.00 2,662,000.00 2,928,200.00 3,221,020.00
Freight In 2,200.00 2,420.00 2,662.00 2,928.20 3,221.02
Less: Raw materials, ending 110,000.00 121,000.00 133,100.00 146,410.00 161,051.00
2,092,200.00 2,411,420.00 2,652,562.00 2,917,818.20 3,209,600.02

Direct labor 480,000.00 484,800.00 489,648.00 494,544.48 499,489.92

Factory overhead
Rent expense 162,000.00 162,000.00 162,000.00 162,000.00 162,000.00
Depreciation expense -
18,081.23 18,081.23 18,081.23 18,081.23 18,081.23
production equipment
Utilities expense 164,160.00 180,576.00 198,633.60 218,496.96 240,346.66
Indirect labor 372,000.00 375,720.00 379,477.20 383,271.97 387,104.69
Other indirect supplies 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00
Store insurance 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
727,241.23 747,377.23 769,192.03 792,850.16 818,532.58

Unadjusted cost of sales 3,299,441.23 3,643,597.23 3,911,402.03 4,205,212.84 4,527,622.52

Estimated allowance for spoilage 2,200.00 2,420.00 2,662.00 2,928.20 3,221.02
Adjusted cost of sales 3,301,641.23 3,646,017.23 3,914,064.03 4,208,141.04 4,530,843.54

Gross profit rate 35% 35% 36% 38% 39%

 A relative increase on sales brought a 10% increase on net purchases for the

year.

 Transportation cost of inventories are assumed to be 1% of every purchase

made during the year.

 Raw materials as at year-end are estimated to be 5% of total purchases for the

year.

 The salaries and wages are assumed to increase 1% for every year of service.

 It is assumed that 90% of rentals for commercial space and utilities are

designated mainly for production. The increase on estimated revenue will

result to a corresponding 10% increase on utilities expenses.

58
  As the products are prepared on an order basis, no work in process or finished

goods inventory estimation as of year-end. Any consumable left over will be

disposed as scrap sale to employee.

 An estimate of 1% for spoilage is allocated as allowance for expected wastage

and inefficiency during production.

 The gross profit rate is relatively increasing across periods.

3. Administrative Expenses

2023 2024 2025 2026 2027

Php
Depreciation expense -
21,593.57 21,593.57 21,593.57 21,593.57 21,593.57
furnitures and other equipment
Salaries expense - Admin 744,000.00 751,440.00 758,954.40 766,543.94 774,209.38
License and permit 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00
Utilities expense - admin 23,144.00 25,458.40 28,004.24 30,804.66 33,885.13
Rent expense - admin 18,000.00 18,000.00 18,000.00 18,000.00 18,000.00
810,737.57 820,491.97 830,552.21 840,942.18 851,688.08

 The salaries and wages are assumed to increase 1% for every year of service.

 The increase on estimated revenue will result to a corresponding 1% increase

on utilities expenses.

 It is assumed that 10% of the commercial space is designated for clerical and

administrative functions.

4. Other Expenses

2023 2024 2025 2026 2027

Php
Conduct of feasibility study 5,000.00 - - - -
Loss on scrap sales 2,200.00 2,420.00 2,662.00 2,928.20 3,221.02
7,200.00 2,420.00 2,662.00 2,928.20 3,221.02

59
  Note that estimate of 0.1% of purchases as leftover for every business day will

be disposed as scrap sale to employee.

5. Income Tax Expense

- Partnership regulated for commercial

Hina, Capital
purposesParaiso,
Ibe, Capital
areCapital
considered domestic
Wenceslao, Capital TOTAL

2023 corporation for income tax purposes and therefore taxed as such.
Beginning balance - - - - - -
Add:
Investment Consequently, partners300,000
are considered
300,000 shareholders,
300,000 and
300,000 therefore,
300,000 profits
1,500,000
Share in profit for the period 148,099 148,099 148,099 148,099 148,099 740,497
448,099 448,099 448,099 448,099 448,099 2,240,497
Less: distributed to them are considered as dividends subject to final withholding
Permanent withdrawals 74,050 74,050 74,050 74,050 74,050 370,248
Ending balance 374,050 374,050 374,050 374,050 374,050 1,870,248
tax.
2024
Beginning balance 374,050 374,050 374,050 374,050 374,050 1,870,248
Add:
Additional investment - - - - - -
Share in profit for the period 173,247 173,247 173,247 173,247 173,247 866,233
547,296 547,296 547,296 547,296 547,296 2,736,481
Statement
Less:
of Changes in Partners’ Equity
Permanent withdrawals 86,623 86,623 86,623 86,623 86,623 433,116
Ending balance 460,673 460,673 460,673 460,673 460,673 2,303,365

2025
Beginning balance Concepcion,460,673
Capital 460,673
Hina, Capital 460,673
Ibe, Capital 460,673 Wenceslao,460,673
Paraiso, Capital Capital 2,303,365
TOTAL
Add:
Additional investment
2023 - - - - - -
Share in profit
Beginning balancefor the period 217,858
- 217,858
- 217,858
- 217,858
- 217,858
- 1,089,291
-
Add: 678,531 678,531 678,531 678,531 678,531 3,392,656
Less:
Investment 300,000 300,000 300,000 300,000 300,000 1,500,000
Permanent
Share withdrawals
in profit for the period 108,929
148,099 108,929
148,099 108,929
148,099 108,929
148,099 108,929
148,099 544,646
740,497
Ending balance 569,602
448,099 569,602
448,099 569,602
448,099 569,602
448,099 569,602
448,099 2,848,010
2,240,497
Less:
2026
Permanent withdrawals 74,050 74,050 74,050 74,050 74,050 370,248
Beginning balance
Ending balance 569,602
374,050 569,602
374,050 569,602
374,050 569,602
374,050 569,602
374,050 2,848,010
1,870,248
Add:
Additional investment
2024 - - - - - -
Share in profit
Beginning balancefor the period 267,189
374,050 267,189
374,050 267,189
374,050 267,189
374,050 267,189
374,050 1,335,944
1,870,248
Add: 836,791 836,791 836,791 836,791 836,791 4,183,955
Less:
Additional investment - - - - - -
Permanent
Share withdrawals
in profit for the period 133,594
173,247 133,594
173,247 133,594
173,247 133,594
173,247 133,594
173,247 667,972
866,233
Ending balance 703,197
547,296 703,197
547,296 703,197
547,296 703,197
547,296 703,197
547,296 3,515,983
2,736,481
Less:
2027
Permanent withdrawals 86,623 86,623 86,623 86,623 86,623 433,116
Beginning balance
Ending balance 703,197
460,673 703,197
460,673 703,197
460,673 703,197
460,673 703,197
460,673 3,515,983
2,303,365
Add:
Additional investment
2025 - - - - - -
Share in profit
Beginning balancefor the period 321,687
460,673 321,687
460,673 321,687
460,673 321,687
460,673 321,687
460,673 1,608,435
2,303,365
Add: 1,024,884 1,024,884 1,024,884 1,024,884 1,024,884 5,124,418
Less:
Additional investment - - - - - -
Permanent
Share withdrawals
in profit for the period 160,844
217,858 160,844
217,858 160,844
217,858 160,844
217,858 160,844
217,858 804,218
1,089,291
Ending balance 864,040
678,531 864,040
678,531 864,040
678,531 864,040
678,531 864,040
678,531 4,320,200
3,392,656
Less:
Permanent withdrawals 108,929 108,929 108,929 108,929 108,929 544,646
Ending balance 569,602 569,602 569,602 569,602 569,602 2,848,010

2026
Beginning balance 569,602 569,602 569,602 569,602 569,602 2,848,010
Add:
Additional investment - - - - - -
Share in profit for the period 267,189 267,189 267,189 267,189 267,189 1,335,944
836,791 836,791 836,791 836,791 836,791 4,183,955
Less: 60
Permanent withdrawals 133,594 133,594 133,594 133,594 133,594 667,972
Ending balance 703,197 703,197 703,197 703,197 703,197 3,515,983

2027
Beginning balance 703,197 703,197 703,197 703,197 703,197 3,515,983
Statement of Cash Flows
2023 2024 2025 2026 2027
Php
Cash flow from operating activities:
Income before income tax 925,621 1,082,791 1,361,614 1,669,931 2,010,544
Add: Depreciation expense 39,675 39,675 39,675 39,675 39,675
Amortization of long term insurance 10,000 10,000 10,000 10,000 10,000
Operating income (loss) before working capital changes 975,296 1,132,466 1,411,289 1,719,605 2,060,219
Less: Increase on inventory 114,000 10,000 11,100 12,310 13,641
Add: Increase on VAT payable 77,478 17,073 9,455 10,201 11,651
Net cash from operations 938,774 1,139,539 1,409,644 1,717,496 2,058,229
Less: Income tax paid - 185,124 216,558 272,323 333,986
Net cash used by operating activities 938,774 954,415 1,193,086 1,445,173 1,724,243

Cash flow from investing activities:

Acquisition of production equipment -111,611 - - - -
Acquisition of furniture and other equipment -165,980 - - -6,823 -
Payment for long term insurance -100,000 - - - -
Net cash used by investing activities -377,591 - - -6,823 -

Cash flow from financing activities:

Partners' contribution 1,500,000 - - - -
Withdrawal -370,248 -433,116 -544,646 -667,972 -804,218
Net cash provided (used) by financing activities 1,129,752 -433,116 -544,646 -667,972 -804,218

Net movement in cash flow 1,690,935 521,298 648,440 770,378 920,025

Cash at the beginning of the year - 1,690,935 2,212,233 2,860,673 3,631,051
Cash at the end of the year 1,690,935 2,212,233 2,860,673 3,631,051 4,551,076

Statement of Financial Position

2023 2024 2025 2026 2027

ASSETS Php
Notes
Current assets
Cash and cash equivalents 6 1,690,935 2,212,233 2,860,673 3,631,051 4,551,076
Inventories 7 114,000 124,000 135,100 147,410 161,051
Total current assets 1,804,935 2,336,233 2,995,773 3,778,461 4,712,127

Non-current asset
Production equipment (net of accumulated depreciation)
8 93,529 75,448 57,367 39,286 21,205
Furniture and other equipment (net of accumulated depreciation)
8 144,387 122,793 101,200 86,429 64,836
Other asset 9 90,000 80,000 70,000 60,000 50,000
Total non-current assets 327,916 278,241 228,567 185,715 136,040

Total assets 2,132,851 2,614,475 3,224,340 3,964,176 4,848,167

LIABILITIES AND EQUITY

Current liabilities 61
Income Tax payable 5 185,124 216,558 272,323 333,986 402,109
VAT payable 10 77,478 94,552 104,007 114,208 125,858
262,603 311,110 376,330 448,194 527,967
 8 144,387 122,793 101,200 86,429 64,836
Other asset 9 90,000 80,000 70,000 60,000 50,000
Total non-current assets 327,916 278,241 228,567 185,715 136,040

Total assets 2,132,851 2,614,475 3,224,340 3,964,176 4,848,167

LIABILITIES AND EQUITY

Current liabilities
Income Tax payable 5 185,124 216,558 272,323 333,986 402,109
VAT payable 10 77,478 94,552 104,007 114,208 125,858
262,603 311,110 376,330 448,194 527,967

Partners' equity
Concepcion, Capital 374,050 460,673 569,602 703,197 864,040
Hina, Capital 374,050 460,673 569,602 703,197 864,040
Ibe, Capital 374,050 460,673 569,602 703,197 864,040
Paraiso, Capital 374,050 460,673 569,602 703,197 864,040
Wenceslao, Capital 374,050 460,673 569,602 703,197 864,040
1,870,248 2,303,365 2,848,010 3,515,983 4,320,200

Total Liabilities and equity 2,132,851 2,614,475 3,224,340 3,964,176 4,848,167

Notes:

6. Cash and Cash Equivalents

2023 2024 2025 2026 2027

7. Inventory
Php
2023 2024 2025 2026 2027
Cash in bank 1,690,935 2,212,233 2,860,673
Php
3,631,051 4,551,076
Raw materials, ending 110,000.00 121,000.00 133,100.00 146,410.00 161,051.00
Other indirect supplies 4,000.00 3,000.00 2,000.00 1,000.00 -
114,000.00 124,000.00 135,100.00 147,410.00 161,051.00

8. Fixed Assets

62
  Cost

Production Furniture and other

TOTAL
equipment equipment

Cost
2023
Beginning balance - - -
Add: Acquisition 111,611 165,980 277,591

Less: Disposal - - -

Ending balance 111,611 165,980 277,591

2024
Beginning balance 111,611 165,980 277,591

Add: Acquisition - - -

Less: Disposal - - -

Ending balance 111,611 165,980 277,591

2025
Beginning balance 111,611 165,980 277,591

Add: Acquisition - - -

Less: Disposal - - -

Ending balance 111,611 165,980 277,591

2026
Beginning balance 111,611 165,980 277,591

Add: Acquisition - 6,823 6,823

Less: Disposal - - -

Ending balance 111,611 172,803 284,414

2027
Beginning balance 111,611 172,803 284,414

Add: Acquisition - - -

Less: Disposal - - -

Ending balance 111,611 172,803 284,414

 Accumulated depreciation and Book Value

63
 Furniture and
Furniture and other Production
Production equipment TOTAL other TOTAL
equipment equipment
equipment

Accumulated depreciation Book value

2023
Beginning balance - - -
Add: Depreciation/
18,081 21,594 39,675
impairment
Less: Disposal/
Recovery of - - -
imparment
Ending balance 18,081 21,594 39,675 93,529 144,387 237,916

2024
Beginning balance 18,081 21,594 39,675
Add:
Depreciation/impairm 18,081 21,594 39,675
ent
Less:
Disposal/Recovery of - - -
imparment
Ending balance 36,162 43,187 79,350 75,448 122,793 198,241

2025
Beginning balance 36,162 43,187 79,350
Add:
Depreciation/impairm 18,081 21,594 39,675
ent
Less:
Disposal/Recovery of - - -
imparment
Ending balance 54,244 64,781 119,024 57,367 101,200 158,567

2026
Beginning balance 54,244 64,781 119,024
Add:
Depreciation/impairm 18,081 21,594 39,675
ent
Less:
Disposal/Recovery of - - -
imparment
Ending balance 72,325 86,374 158,699 39,286 86,429 125,715

2027
Beginning balance 72,325 86,374 158,699
Add:
Depreciation/impairm 18,081 21,594 39,675
ent
Less:
Disposal/Recovery of - - -
imparment
Ending balance 90,406 107,968 198,374 21,205 64,836 86,040

 The proponents opt to use straight-line method, all with no salvage value at its

disposal.

9. Other Assets

64
 2023 2024 2025 2026 2027
Php

Prepaid store insurance 90,000.00 80,000.00 70,000.00 60,000.00 50,000.00

10. VAT Payable

2023 2024 2025 2026 2027

Php
Beginning VAT payable - 77,478.27 94,551.60 104,006.76 114,207.57
Output VAT 607,824.00 668,606.40 735,467.04 809,033.04 889,955.64
Less:
Input VAT from purchase of raw materials
264,600.00 290,400.00 319,440.00 351,384.00 386,522.40
Input VAT from capital goods 33,310.92 - - 818.76 -
VAT payment for the year 232,434.81 361,133.07 406,571.88 446,629.47 491,782.50
77,478.27 94,551.60 104,006.76 114,207.57 125,858.31

Financial Analysis

Profitability:
2023 2024 2025 2026 2027

Rate of return on sales Net income 740,497 866,233 1,089,291 1,335,944 1,608,435
Profitability: Net sales 5,065,200 5,571,720 6,128,892 6,741,942 7,416,297
2023 2024 2025 2026 2027
15% 16% 18% 20% 22%
Rate of return on sales Net income 740,497 866,233 1,089,291 1,335,944 1,608,435
Rate of return on assets Net income 740,497 866,233 1,089,291 1,335,944 1,608,435
Net sales
Average total assets
5,065,200
2,132,851
5,571,720
2,373,663
6,128,892
2,919,407
6,741,942
3,594,258
7,416,297
4,406,172
Return on sales (ROS) is a ratio used to evaluate a company's operational efficiency.
15%
35% 16%
36% 18%
37% 20%
37% 22%
37%

Rate
Assetofturnover
return on assets Net
Netincome
sales 740,497
5,065,200 866,233
5,571,720 1,089,291
6,128,892 1,335,944
6,741,942 1,608,435
7,416,297
Average total assets 2,132,851 2,373,663 2,919,407 3,594,258 4,406,172

2.37
35% 2.35
36% 2.10
37% 1.88
37% 1.68
37%

Return on equity Net income 740,497 866,233 1,089,291 1,335,944 1,608,435

Asset turnover Net sales 5,065,200 5,571,720 6,128,892 6,741,942 7,416,297
Rate of return
Partners' equityon assets is in 1,870,248
every peso of your asset,2,848,010
2,303,365 how much 3,515,983
will be our net
4,320,200
Average total assets 2,132,851 2,373,663 2,919,407 3,594,258 4,406,172
income. The thing being tested is how much
40% the business
38% is effective
38%in the utilization
38% of its 37%
2.37 2.35 2.10 1.88 1.68
Liquidity:
asset.
Return on equity Net income 740,497 866,233 1,089,291 1,335,944 1,608,435
Current ratio Current assets
Partners' equity 1,804,935
1,870,248 2,336,233
2,303,365 2,995,773
2,848,010 3,778,461
3,515,983 4,712,127
4,320,200
Current liabilities 262,603 311,110 376,330 448,194 527,967
40% 38% 38% 38% 37%
6.87 7.51 7.96 8.43 8.93
Liquidity:
Acid test ratio Quick assets 1,690,935 2,212,233 2,860,673 3,631,051 4,551,076
Current liabilities 262,603 311,110 376,330 448,194 527,967
Current ratio Current assets 1,804,935 65 2,336,233 2,995,773 3,778,461 4,712,127
Current liabilities 262,603
6.44 311,110
7.11 376,330
7.60 448,194
8.10 527,967
8.62

Solvency: 6.87 7.51 7.96 8.43 8.93

Rate of return on sales Net income 740,497 866,233 1,089,291 1,335,944 1,608,435
Rate of return on assets Net income 740,497 866,233 1,089,291 1,335,944 1,608,435
Net sales 5,065,200 5,571,720 6,128,892 6,741,942 7,416,297
Average total assets 2,132,851 2,373,663 2,919,407 3,594,258 4,406,172
15% 16% 18% 20% 22%
35% 36% 37% 37% 37%
Rate of return on assets Net income 740,497 866,233 1,089,291 1,335,944 1,608,435
Asset turnover Average totalNetassets
sales 5,065,200
2,132,851 5,571,720
2,373,663 6,128,892
2,919,407 6,741,942
3,594,258 7,416,297
4,406,172
Profitability: Average total assets 2,132,851 2,373,663 2,919,407 3,594,258 4,406,172
2023 35% 2024 36% 2025 37% 2026 37% 2027 37%
2.37 2.35 2.10 1.88 1.68
Asset
Rateturnover
of return on sales Net
Netsales
income 5,065,200
740,497 5,571,720
866,233 6,128,892
1,089,291 6,741,942
1,335,944 7,416,297
1,608,435
AverageNet
total assets
Netsales 2,132,851
5,065,200
Return on equityAsset turnover is how much would be sold for our usage of asset.
income 740,497 2,373,663
5,571,720
866,233 2,919,407
6,128,892
1,089,291 3,594,258
6,741,942
1,335,944 4,406,172
7,416,297
1,608,435
Partners' equity 1,870,248
15% 2,303,365
16% 2,848,010
18% 3,515,983
20% 4,320,200
22%
2.37 2.35 2.10 1.88 1.68

Rate of return on assets Net income 740,49740% 866,23338% 1,089,29138% 1,335,94438% 1,608,43537%
Return on equity Net income 740,497 866,233 1,089,291 1,335,944 1,608,435
Average total assets 2,132,851 2,373,663 2,919,407 3,594,258 4,406,172
Profitability: Partners' equity 1,870,248 2,303,365 2,848,010 3,515,983 4,320,200
Liquidity: 2023 35% 2024 36% 2025 37% 2026 37% 2027 37%
40% 38% 38% 38% 37%
RateCurrent
Asset returnratioon sales
ofturnover Current
Net
Net sales assets
income 1,804,935
740,497
5,065,200 2,336,233
866,233
5,571,720 2,995,773
1,089,291
6,128,892 3,778,461
1,335,944
6,741,942 4,712,127
1,608,435
7,416,297
Liquidity: Current
Average salesliabilities
Nettotal assets 262,603
2,132,851
5,065,200 311,110
2,373,663
5,571,720 376,330
2,919,407
6,128,892 448,194
3,594,258
6,741,942 527,967
4,406,172
7,416,297

Current ratio Current assets 1,804,9352.37

15%6.87 2,336,2332.35
16%7.51
2.107.96
2,995,77318%
1.888.43
3,778,46120%
1.688.93
4,712,127
22%
Current liabilities 262,603 311,110 376,330 448,194 527,967
Return on equity Return Net onincome equity measuring on how much 866,233
740,497 is the income per peso of1,335,944
1,089,291 the capital that a
1,608,435
RateAcid test ratio
of return on assets NetQuick
income
Partners' equityassets 1,690,935
740,497
1,870,248 2,212,233
866,233
2,303,365 2,860,673
1,089,291
2,848,010 3,631,051
1,335,944
3,515,983 4,551,076
1,608,435
4,320,200
Average totalliabilities
assetsin the business. 6.87
2,132,851 7.51
2,373,663 7.96
2,919,407 8.43
3,594,258 8.93
4,406,172
partner has contributed Current 262,603 311,110 376,330 448,194 527,967
40% 38% 38% 38% 37%
Acid test ratio Quick assets 1,690,93535% 2,212,23336% 2,860,67337% 3,631,05137% 4,551,07637%
6.44 7.11 7.60 8.10 8.62
Liquidity: Current liabilities 262,603 311,110 376,330 448,194 527,967
Asset turnover
Solvency: Net sales 5,065,200 5,571,720 6,128,892 6,741,942 7,416,297
Current ratio Current assets 1,804,935
6.44 2,336,233
7.11 2,995,773
7.60 3,778,461
8.10 4,712,127
8.62
Average total assets 2,132,851 2,373,663 2,919,407 3,594,258 4,406,172
Current liabilities 262,603 311,110 376,330 448,194 527,967
Debt ratio
Solvency: Total liabilities 262,603 311,110 376,330 448,194 527,967
2.37
6.87 2.35
7.51 2.10
7.96 1.88
8.43 1.68
8.93
Total assets 2,132,851 2,614,475 3,224,340 3,964,176 4,848,167
Debt ratio
Acid
Total liabilities 262,603 311,110 376,330 448,194 527,967
Returntestonratio
equity Quick assets
Net income 1,690,935
740,497 2,212,233
866,233 2,860,673
1,089,291 3,631,051
1,335,944 4,551,076
1,608,435
Total assets
Current liabilities
Partners' equity 262,60312%
2,132,851
1,870,248 311,11012%
2,614,475
2,303,365 376,33012%
3,224,340
2,848,010 448,19411%
3,964,176
3,515,983 527,96711%
4,848,167
4,320,200
12%
6.44 12%
7.11 12%
7.60 11%
8.10 11%
8.62
40% that assesses
The current ratio is a liquidity ratio 38% a company's
38% capacity38%
to pay short-37%
Solvency:
Liquidity:
term or one-year obligations. The computed ratio of Arroz el Burger for 2023 is 1:6.87. This
Debt ratio Total liabilities 262,603 311,110 376,330 448,194 527,967
Current
means ratio that for Current
every assets
Total assets current 1,804,935
2,132,851
obligation of the 2,336,233 it
2,614,475
company, has 2,995,773
3,224,340
6.87 pesos to 3,778,461
3,964,176
pay off. 4,712,127
4,848,167
Current liabilities 262,603 311,110 376,330 448,194 527,967
12% 12% 12% 11% 11%
6.87 7.51 7.96 8.43 8.93

Acid test ratio Quick assets 1,690,935 2,212,233 2,860,673 3,631,051 4,551,076
Current liabilities 262,603 311,110 376,330 448,194 527,967

6.44 7.11 7.60 8.10 8.62

Solvency:

Debt ratio Total liabilities 262,603 311,110 376,330 448,194 527,967

Total assets 2,132,851 2,614,475 3,224,340 3,964,176 4,848,167

12% 12% 12% 11% 11%

66
 Average total assets 2,132,851 2,373,663 2,919,407 3,594,258 4,406,172

2.37 2.35 2.10 1.88 1.68

Return on equity Net income 740,497 866,233 1,089,291 1,335,944 1,608,435

Partners' equity 1,870,248 2,303,365 2,848,010 3,515,983 4,320,200
Acid-Test Ratio, is a liquidity ratio that measures how sufficient a company’s short-term
40% 38% 38% 38% 37%
assets are to cover its current liabilities. The computed ratio of Arroz el Burger for 2023 is
Liquidity:
6.44. This means that for every cash obligation of the company, it has 6.44 pesos to pay off.
Current ratio Current assets 1,804,935 2,336,233 2,995,773 3,778,461 4,712,127
Current liabilities 262,603 311,110 376,330 448,194 527,967

6.87 7.51 7.96 8.43 8.93

Since the debt ratio for Arroz el Burger maintains below 15, the company is
Acid test ratio Quick assets 1,690,935 2,212,233 2,860,673 3,631,051 4,551,076
considered not to beliabilities
Current in financial risk since
262,603it has the 311,110
ability to pay376,330
its debts with448,194
its assets. 527,967

6.44 7.11 7.60 8.10 8.62

Solvency:

Debt ratio Total liabilities 262,603 311,110 376,330 448,194 527,967

Total assets 2,132,851 2,614,475 3,224,340 3,964,176 4,848,167

12% 12% 12% 11% 11%

67
 CHAPTER V

SOCIO ECONOMIC ASPECT

INTRODUCTION

The study's social and environmental implications will be determined by its socio-

economic element. The shop will also be subject to taxation at the appropriate percentage of

our generated profit in order to ensure the benefit of the city, compliance with all legal

obligations, and respect for the communities in which it works. The company intends to make

a profit while also building a reputation and goodwill in the community.

GOVERNMENT

The business will adhere to federal regulations and pay the tax. Taxes are the

government's lifeblood, and they should be collected in accordance with the law, as

any arbitrariness would invalidate the whole purpose of the government. The

government will gain from the tax that the shop will pay since it will raise

government revenue, which will help us improve our country and the City of Malolos.

The business will be one of the local government's sources of money, which will be

used to provide social services to the people.

CUSTOMERS

The Arroz el Burger prioritizes customers' satisfaction; proponents will seek

out methods to deliver the greatest services to clients and introduce them to a new

type of burger so that they may have the best experience possible. The enterprise will

benefit the local community by providing services that are not available at other

burger shops. The consumer will have the option of selecting whatever variations they

68
like and spending time in our shop, which will keep them secure and provide

excellent service, resulting in customer satisfaction.

EMPLOYEES

Job opportunities and income will be generated for the job seekers, the rate of

unemployment will decrease at the same time. The business will also hire part timers

and compensate them with the right amount followed by safe and healthy working

condition. Arroz el Burger recognize that employees are the most valuable asset and

there are the major contributors to the profits and worth of the company for that

reason they will be provided with the require assistance mandated by law and the best

work condition with that employee’s satisfaction will be meet.

SOCIETY

Product packaging is a major problem for businesses, their customers, and,

most significantly, the environment. We, at Arroz el Burger, are devoted to

environmental sustainability by developing environmentally friendly packaging

materials that give an appealing chance to achieve carbon reduction and waste

reduction. Because of our efficient business behavior via ethical and economic ways,

emphasizing our environmental activities not only helps to enhance sales and boost

the company's reputation, but it also helps to produce long-term benefits that benefit

our local communities.

Supporting recycling efforts can assist to conserve important landfills and

maintain our natural resources. Proper trash disposal is a mission of either large or

small enterprises to decrease environmental effect. People are more inclined to trust

and support businesses that practice corporate and social responsibility.

69
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