BUSINESS PLAN

PRESENTED TO

IMMACULATE CONCEPTION SCHOOL OF MALOLOS

SENIOR HIGH SCHOOL DEPARTMENT

ACCOUNTANCY, BUSINESS AND MANAGEMENT

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS

FOR BUSINESS ENTERPRISE SIMULATION

BY

Santos, Brent Allan D.C.

Mabutol, Madeleine C.

Gonzales, Angela C.

Paranggan, Carl M.

Armosilla, Hans M.

Pangilinan, Mark Erwin S.

 ACKNOWLEDGEMENTS

We would like to thank both of our subject teachers, Mrs. Abegail A. Polintan for guiding

us throughout the process of making our business plan proposal. We surely could not have done it

without you!! We also like to acknowledge the participation of some of the local businesses in

Keigo Ramen, Tokyo Tokyo Malolos, Gancha Japanese Cuisine, Shin Yuu Cuisine, Orenji de

Ramen and Shojou Ramen.

 CONFIDENTIALITY AGREEMENT

Group Name: ______________________ Date: _____________

I agree that in consideration for access to information submitted to us by the group, I will:

1. Keep all information provided to me relating to business under development and strict confidence.

2. Disclose this information solely to individuals who have signed a non-disclosure agreement with

or who have expressed approval from the group, either verbal or written, to receive this information,

understood and agreed this dayof month, year.

NAME OF PANEL 1 NAME OF PANEL 2

Job Title Job Title
Company Name Company Name

MRS. ABEGAIL A. POLINTAN

Subject Teacher – Business Enterprise Simulation

 APPROVAL SHEET

In partial fulfillment of the requirements for Entrepreneurship and Applied Economics in

Immaculate Conception School of Malolos-SHS, this BUSINESS PLAN has been prepared and

submitted by Santos, Brent Allan D.C., Mabutol, Madeleine C., Gonzales, Angela C., Paranggan,

Carl M., Armosilla, Hans M., Pangilinan, Mark Erwin S.Approved by the Oral Examiners with a

grade of ____________

NAME OF PANEL 1 NAME OF PANEL 2

Job Title Job Title
Company Name Company Name

MRS. ABEGAIL A. POLINTAN

Subject Teacher – Business Enterprise Simulation

Table of Contents
Chapter I: Introduction ............................................................................................................. 6-8
Description of the Business .............................................................................................................6
Location of the Business ..................................................................................................................7
Funding Requirements ................................................................................................................. 7-8
Chapter II: Executive Summary ............................................................................................ 9-10
Chapter III: Environmental Analysis .................................................................................. 11-19
SWOT Analysis .............................................................................................................................11
Porter’s Five Forces ................................................................................................................. 12-14
Competitors Analysis ............................................................................................................... 14-19
Chapter IV: Description of Ventures ................................................................................... 20-24
Services Offered....................................................................................................................... 20-22
Products Offered ...................................................................................................................... 22-24
Chapter V: Production Plan ................................................................................................. 25-34
Machineries and Equipment .................................................................................................... 25-28
Raw Materials .......................................................................................................................... 28-29
Description of Machineries and Equipment ............................................................................ 30-32
Description of Raw Materials .................................................................................................. 32-34
Chapter VI: Marketing Plan................................................................................................. 35-45
Pricing Strategy........................................................................................................................ 35-38
Promotion Strategy .................................................................................................................. 38-44
Marketing Budget .................................................................................................................... 44-45
Chapter VII: Organization Plan........................................................................................... 47-52
Form of Ownership .................................................................................................................. 46-47
Organizational Chart ......................................................................................................................47
Roles and Responsibilities ....................................................................................................... 48-51
Chapter VIII: Financial Plan................................................................................................ 53-61
Expenses .................................................................................................................................. 53-61
Chapter IX: Appendix .................................................................................................................62
References (Citation) .....................................................................................................................62
 CHAPTER I

INTRODUCTION

Description of the Business

Ramen is known by many in the Philippines as the instant noodle that has become a staple

in the life of many college students. The ramen that is made from scratch though, can be an

incredible experience that everyone should taste at least once in their lives. Boru Ramen Restaurant

is the best choice for people of any age.

To provide a good product, the ramen will be prepared all from scratch on location. This

is done to keep up with the standards. This is very crucial since the location has a high density of

competitors, and the customers in the area tend to be price-conscious as well – the pricing is set

slightly higher than the immediate competition.

Ramen noodle shacks are to Japan what the fast-food restaurants are to the people in the

States. They are a place where people go for a quick, rich, filling meal when they don’t have time

or simply don’t feel like cooking. The ramen that is being mentioned here is not the one people

know as instant noodles. No, the ramen that is to be sold is the ‘real’ Japanese dish. Similar to the

instant version, ramen is simple in concept yet incredibly challenging to produce. When prepared

correctly, a bowl of ramen noodles can fix anyone’s day.

Location of the Business

 The most commonly believed key element to building a business is a good location to

attract customers. Location can influence a business’ ability to market itself and to deal with the

competition that it faces/ can face from other businesses. And we believe that Boru Ramen House

can be a good place with a good location. Boru Ramen is located near Uno Fuel- Dakila Malolos

Bulacan along McArthur highway.

Bulacan, dubbed the "Northern Gateway from Manila," is an excellent investment

destination. Malolos, Bulacan, is one of its strategic locations, surrounded by highly productive
people resources and well-developed infrastructures. This location, which Boru Ramen Restaurant

seeks to build, has a fair cost of doing business because of its favorable peace and order

environment and attractive investments.

Aside from that, there are no competitors present for Robinsons Place Malolos they only

have the common foreign and Filipino fast-food chains. Hence, it will be a great place to be a

business location. Our shop is not that large but we can accommodate at least 28 people at the

same time. And we are providing 7 tables with 4 chairs. Although the market size may seem small,

there are few companies currently doing business in the market, so the profit of our store can still

be large.

Funding Requirements

The significance of money in business cannot be emphasized. Money, with a few

exceptions, is required to get a business off the ground. Once earnings start to roll in, a portion of

that money can be put back into the business to attract additional clients and boost profits even

more. Business funds are not squandered on initiatives that yield a low return on investment due

to proper planning and cash management.

The overall financing requirement is calculated using the cost stated in the cost baseline.

It's one of the inputs needed to create the control cost, which is used to track and update project

costs and changes. The table below covers crucial financial data, such as startup costs, that are

necessary for the creation/preparation of our company. The proposed capital of Boru Ramen is

Php 1,500,000.00
 Please keep in mind that the following are simply estimations of the costs of running the

business.

Required Expenses

Start-up Expenses

Legal ₱25,000.00

Stationery etc. ₱5,000.00

Advertising ₱5,000.00

Phone ₱3,000.00

Insurance ₱30,000.00

Rent ₱60,000.00

Building Expenses ₱100,000.00

Utilities ₱5,000.00

Computer ₱30,000.00
Other ₱10,000.00

Total Start-up Expenses ₱273,000.00

Start-up Assets Required

Petty Cash ₱50,000.00

Start-up Inventory ₱100,000.00

Food Supplies ₱200,000.00

Machineries & Equipments ₱300,000.00

LED lights ₱5,000.00

Alarm Equipment ₱10,000.00

Fire Extinguishers ₱5,000.00

Total Start-up Assets Required ₱670,000.00

Start-Up Liabilities

Utilities Payable ₱10,000.00

Accounts Payable (interest not included) ₱10,000.00

Total Start-Up Liabilities ₱20,000.00

Start-Up Owner's Equity

Boru Ramen Capital ₱1,500,000.00

Total Owner's Equity ₱1,500,000.00

Total Starting Funds Required ₱963,000.00

Remaining Funds ₱537,000.00

Stored Funds ₱537,000.00

Name of the owner or owners

One of the first decisions that we had to make as a business owner is how our business

should be structured. We need to know the advantages and disadvantages of each of the different

forms of business organization to make sure you’re making the right decision for your new

business. All businesses must adopt some legal configuration that defines the rights and liabilities

of participants in the business’s ownership, control, personal liability, lifespan, and financial

structure. The form of business determines which income tax return form to file and the company’s

and owners’ legal liabilities.

After careful consideration of our business, we had decided that BoruRamen Restaurant

would be owned by one person only. This is also identified as a sole proprietorship. According to

Investopedia, a sole proprietorship—also referred to as a sole trader or a proprietorship—is an

unincorporated business that has just one owner who pays personal income tax on profits earned

from the business. Due to a lack of government regulation, a sole proprietorship is the easiest type

of business to establish or take apart. As such, these types of businesses are very popular among

sole owners of businesses, individual self-contractors, and consultants. Many sole proprietors do

business under their own names because creating a separate business or trade name isn't necessary.

The sole owner of BoruRamen Restaurant is Ms. Angela C. Gonzales.

 CHAPTER II

BACKGROUND OF THE ENTERPRISE

Business Background

The restaurant industry has been severely affected by the new coronavirus COVID-19 that

has been raging since the beginning of 2020. However, there are big opportunities for those looking

to enter the restaurant industry. This is because there are many stores for sale, making it possible

to develop a business in some of the best locations and with a low initial investment.

The Philippines has a lucrative food service industry where dining at restaurants is

considered a family-bonding activity or a time for celebration. However, the once vibrant sector

suffered immensely due to the outbreak of the COVID-19 pandemic. The pandemic not only

transformed the dining habits of Filipino consumers but shrank the revenue of the foodservice

sector. To cope, food establishments were forced to innovate to continue serving their patrons,

maintain their workforce, and support their businesses as well as the industry.

On the other hand, the restaurant business is booming thanks to our consumer-driven

economy. OFW remittances, IT-BPO earnings, and significant increases in infrastructure spending

have all contributed to the rise of the middle class and their capacity to consume the 4Fs—food,

fashion, furnishings, and fun. Filipinos are eating out now more than ever, given more disposable

income. In fact, a recent marketing survey reveals that supermarkets sell fewer grocery items since

members of households eat out more often. This has made the restaurant industry one of the most

attractive businesses to get into for both fledgling entrepreneurs and established businesses. Some

succeed—but many fail. Obviously, there is more to it than meets the eye.
Product Description

According to Shopify (2019), a product description is the marketing copy that explains

what a product is and why it's worth purchasing. The purpose of a product description is to supply

customers with important information about the features and benefits of the product, so they're

compelled to buy. It typically includes the product features and benefits, highlighting why a visitor

should consider making a purchase. A good product description also includes specifications like

shape, size, dimensions, and other relevant parameters that can help the online shoppers visualize

the product better.

Product Name Description Price Description

Tonkatsu 22 Japanese pork cutlet
deeply coated with
Nama Panko to
achieve flaky coating,
served with cabbage,
rice and sweet and
tangy katsu sauce.
Spicy Chicken P 230.00 Our roasted chicken
Ramen broth delivers rich
flavor so no need to
simmer for
hours. This
comforting noodle
bowl is full of
delicious aromas and
flavors, with chicken
cooked with garlic
and ginger and the
 ramen noodles
soaking up the broth.
Spicy Beef Ramen P 250.00 Mild spicy, nutty,
tonkotsu based ramen
topped with ground
pork, bokchoy and
our own blend spicy
oil.
Tempura Ramen P 350.00 Shrimp tempura is
baked until crunchy,
while the ramen
noodles boil until soft
and chewy. Tossed in
with ramen spice,
added with a few
handfuls of baby
spinach for a pop of
color. Serve noodle
bowls with shrimp
tempura on top, and
garnish with green
onions and a drizzle
of sweet soy sauce.
Teriyaki P 168.00 A sweet and tangy
sticky sauce,
authentic teriyaki
delivers a big hit of
salty umami from its
simple base of soy
sauce and mirin, a
low-alcohol, sweeter
 version of sake, a
traditional Japanese
rice wine. Shredded
chicken with teriyaki
sauce, perfect for any
time meal.
Karage Curry P 220.00 A winter favorite,
Ramen cold noodle served
alongside a hot pork
bone broth infused
with fish flakes. It
also comes with
sliced chasu, leeks
and egg. This is part
of our not-so-secret
menu, better ask our
friendly crew
members about it!
Ramen Beef P 230.00 Ramen is a brothy
noodle dish that
became popular in
Japan in the late
1800’s. The special
noodles used in this
dish are made using a
unique, rich mineral
water. The result is a
firm, flavorful, pale-
yellow noodle that
stands up to the
earthy enoki
 mushrooms, tender
flank steak and choy
sum in this classic
dish.
Tofu Ramen P 185.00 Tofu Ramen’s
uniquely sweet-salty-
spicy and umami
flavor. Crispy pan-
fried tofu and a slurp-
able miso broth! It’s
those fermented
soybeans that really
set this dish.
Spicy Mushroom P 210.00 Sautéed mushrooms
Ramen lend extreme and
surprising depth of
flavor to this clean,
spicy noodle soup,
which also happens
to be vegan. With the
addition of soy sauce,
the broth takes on an
almost beefy flavor;
the vinegar helps to
perk it right back up
for a nearly hot and
sour flavor profile.
For the best (and
most interesting)
results, try to seek out
a mix of mushrooms
 for a variety of
flavors and textures.

Vegetable Ramen P 210.00 I-Can’t-Believe-It’s-

Vegetarian Ramen is
here! It is light,
healthy, low in
calories and packed
with flavor. It is also
a terrific plant-based
option or for anyone
following a vegan or
vegetarian diet.
Coke P 45.00 Coca-Cola is a
carbonated,
sweetened soft drink
and is the world's
best-selling drink. A
popular nickname for
Coca-Cola is Coke.

Sola Iced Tea P 60.00 Sola is a simple

mixture of black tea
leaves, natural fruit
flavors, water, and
sugar. Sola is a ready
to drink, non-
carbonated and non-
alcoholic beverage.
Asahi Beer P 100.00 Asahi Super Dry
Beer is a Japanese
rice lager. Like
American lagers,
these beers are made
with rice and malted
barley. The result is a
light-colored beer
with a light flavor
profile. There is also
higher carbonation
present that calls for a
drier finish.

Sapporo Beer P 120.00 Light, refreshing, and

subtle. Sapporo
Premium Beer has a
hoppier aroma with a
sweeter taste which
makes it best among
all beers in
Japan. It is a
refreshing lager with
a crisp, refined flavor
and a clean finish.
The perfect beer to
pair with any meal.
Target Market

Ramen is a rapidly developing concept, and younger people are more eager to try unique

dishes. Boruramen Restaurant's target market is people aged 30 and younger, with a focus on

customers who like a variety of flavors. It also includes people who have a particular interest in

fresh and healthy foods. Boruramen Restaurant does not also exclude customers based on gender,

wealth, culture, or location. Furthermore, by continually concentrating on fulfilling or exceeding

our customers' expectations, we will be able to enhance customer loyalty, trust, and word-of-mouth

advertising, all of which will help the company develop.

Number and Type of Employees

BoruRamen Restaurant will initially employ a total of 12 employees. There is also a chance

that BoruRamen Restaurant will add more employees if the business expands. Meanwhile, the

following are the roles of each employee:

Executive Chef (1) An executive chef should have at least four

to five years of culinary experience and a

bachelor's degree in culinary arts. All of the

food that comes out of the kitchen is under

the supervision of an executive chef. They

are in charge of making sure the food leaves

the kitchen in a timely manner. They must

 also employ and train new kitchen

personnel.

General Manager (1) A general manager is in charge of all or part

of operations, including revenue generation

and expense control. A general manager

boost efficiency and profits while overseeing

the restaurant's entire operations. This

position oversees lower-level managers and

delivers detailed instructions.

Line Cook (1) A line cook is in charge of storing food and

other essential supplies. They prepare vital

components and make a final product for

restaurants using specialized culinary gear.

Before they begin working, they must

double-check that everything is in order.

Kitchen Manager (1) A kitchen manager is responsible for

managing and supervising the culinary staff

of a restaurant under food safety

requirements.

Sous Chef (1) The sous chef is in charge of food

preparation, planning, and delegation to

anybody they select from the kitchen crew.

As an influential employee, the executive

chef will assist with menu selections and

inventory management, which may need

oversight.
Assistant Manager (1) The assistant manager maintains operating

efficiencies by doing administrative

activities like scheduling, monitoring

inventories, and reviewing staff

performance.

Cashier (1) A restaurant cashier is responsible for

operating the cash register, communicating

with customers, and assisting other

restaurant employees. Processing credit card

payments, taking cash payments, and

making change are all possible

responsibilities in this field.

Dishwasher (2) All goods, including dishes, pans, flatware,

and glasses, are washed by hand or in

dishwashers.
Server (3) A restaurant server takes orders, answers

questions about the menu and food, sells the

restaurant's food and beverages, collects

payment, relays orders to the kitchen staff,

seats guests, and assists with customer care

and cleaning.

Financial Secretary (1) The financial secretary handles and is

charged with handling and overseeing the

financial responsibilities of a business. The

qualifications for financial secretary must

be a graduate of Bachelor in Science in

Accountancy or Finance. He/she must not

have any police records or any other

records that could hinder his/her work.

Security Personnel (1) The hired security personnel are required to

inspect and patrol the premises regularly,

monitor the property entrance, and monitor

the surveillance cameras. The

qualifications for security personnel must

have a height not lower than 5 feet and 5

inches. He/she must also have proper

training in times of natural disasters, acts of

terrorism, and criminal occurrences and

must have at least 2 years of experience in

the field. The hired security personnel must

also be knowledgeable in applying first aid,

and fire emergency equipment in the case

of emergencies. They are also required to

reside near the business location.

 CHAPTER III

Strategic Plan

Mission

Our delicious menus can satisfy your cravings because we chose a professional chef team.

The health and safety of our guests will be a priority. Moreover, it provides an opportunity to

expand services, start in new locations, and achieve long-term profitable growth for our company's

employees and investors. Our main goal is to provide delicious ramen and good service to our

customers. Furthermore, by understanding and anticipating our clients' evolving demands, we want

to constantly improve our customer experience.

Vision

The long-term goal of Bōru Ramen is to become one of Bulacan's most well-known ramen

establishments. We emphasize the quality of our products and we strive to surpass customer

expectations, one order at a time. To also delight our visitors with exquisite, high-quality meals

and an outstanding dining experience, all while working for the betterment of our staff, city, and

environment.

Goals

The BoruRamen Restaurant will strive to achieve the following company goals listed below:

● Increase overall brand awareness.

● Strengthen customer service.

● Promote better cost control and budgeting.

● Reduce employee turnover.

● Maintain or increase profits.

● Ensure better and higher-quality products.

 CHAPTER IV

ENVIRONMENTAL ANALYSIS

SWOT ANALYSIS

STRENGTHS WEAKNESSES

- No same business established within the - The location is in a quiet place, so it may

location not get attention.

- Location is easy to be located - Alternatives to competitive business

- Offers a wide range of tastes - Poor promotions

- Easy to adapt and learn with other - The menu may not cater to everyone’s

existing business liking or preferences.

- Offers high-quality meats, vegetables, - Contains a high amount of sodium,

and sauces carbohydrates, and gluten

OPPORTUNITIES THREATS
 - Adding beverages and desserts to satisfy - Public and media scrutiny about health

customers’ appetite impacts

- Developing our menu with international - High competition with the instant noodle

tastes industry

- Expanding our product range for new - Customers might switch to a more quick-

customers dining business

- Recognizable brands to attract customers - Key customers targeted by competitors

- New technologies to offer customers - Local brands and restaurants

high-quality products and services

Porter’s Five forces Analysis

The threat of New Entrants – Low

New entrants in restaurants bring innovation, and new ways of doing things and put

pressure on Boru Ramen Restaurant through lower pricing strategies, reducing costs, and

providing new value propositions to the customers. The business has to manage all these

challenges and build effective barriers to safeguard its competitive edge. Building

capacities and spending money on research and development. New entrants are less likely

to enter a dynamic industry where established players, such as a Ramen business keep
defining the standards regularly. It significantly reduces the window of extraordinary

profits for the new firms, thus discouraging new players in the industry.

Supplier Bargaining Power – High

Almost every company in the restaurant sector obtains its raw materials from a variety of

sources. Suppliers with a strong position in the market can reduce Boru Ramen Restaurant's

profit margins. Suppliers with clout in the services industry utilize their clout to extort

higher costs from restaurant businesses. The overall impact of increased supplier

bargaining power on restaurant profitability is negative.

Customer Bargaining Power- High

Customers are often a demanding lot. They want to buy the best offerings available by

paying the minimum price possible. This put pressure on the business’s profitability in the

long run. The smaller and more powerful the customer base is of Boru Ramen Restaurant

the greater the bargaining power of the customers and the greater their ability to seek

increasing discounts and offers. Customers often seek discounts and offerings on
established products, so if the business keeps on coming up with new products, it can limit

the bargaining power of buyers.

Internal Competition (Rivalry) – Medium

If the rivalry among the existing players in an industry is intense, it will drive down prices

and decrease the overall profitability of the industry. Boru Ramen Restaurant operates in a

very competitive restaurant industry. This competition does take a toll on the overall long-

term profitability of the organization. Collaborating with competitors to increase the market

size rather than just competing for a small market.

The threat of New Substitutes – High

Industry profitability decreases when a new product or service meets comparable client

wants in different ways. Services like Dropbox and Google Drive, for example, can be used

to replace storage hardware drives. If a substitute product or service offers a value

proposition that is significantly different from the industry's current offerings, it poses a

significant threat. Boru Ramen Restaurant and other existing players face a difficult

competitive climate due to the availability of substitute products or services. Customers

can use alternative products/services from other industries to suit their needs, indicating a
 high substitution threat. The severity of this threat to Boru Ramen is determined by several

factors.

Competitors Analysis

In the business world, competition is inevitable. It's critical to know what the other players

on the field are doing to keep our present clients and move forward. Research is one of the most

practical, easiest, and quickest ways to discover more about our competitors. It is important to

conduct this extensive study to comprehend where the company stands in the marketplace. This

evaluation involves comparing the pricing points, capabilities, limitations, and features of

competing products or services to our own. In addition, the basis would be financial resources,

staff, market share, brand recognition, location, marketing methods, and logistics.

One of the essential aspects of mapping competition is recognizing the two types of

competition: direct and indirect.

Figure 1
 Direct Competitors Indirect Competitors

1. GanChan Japanese Restaurant 1. Mcdonalds

2. Keigo Ramen & Katsu 2. Jollibee

3. Shonjou Ramen 3. KFC

4. Tokyo Tokyo 4. Chowking

5. Shin'Yuu Japanese Cuisine 5. Kenny Rogers Roasters

6. Orenji De Ramen 6. Starbucks

7. La Men Café 7. Steak and Wine Unlimited Malolos

Branch

8. Señora Carmen Resto Garden

9. HapChan

10. Other Non-ramen serving food

businesses

Direct Competitors
Ganchan Japanese Restaurant (2011 – Present)

On Mc Arthur Highway, Barangay Tikay, Malolos, Bulacan, GanChan Authentic Japanese

Cuisine offers a comfortable environment for a Japanese dining experience. Fresh noodles, fish,

and other Japanese dishes are available at the restaurant. In addition, they have indoor and outdoor

dining, delivery (Php. 1,000 minimum in Malolos & Guiginto), take-out, and walk-ins. The brand

has a sizable social media presence, which may be part of its marketing and promotion plan.

Pricing

· Salads (Php 265 – 320) · Soup Noodles (Php 250 – 750)

· Sushi (Php 205 – 550) · Main Course (Php 80 – 325)

· Maki (Php 190 – 395) · Bento Meals (Php 275 – 415)

· Sashimi (Php 220 – 1490) · Rice (Php 60 – 230)

· Grilled Seafood (Php 250 – 380) · Dry Noodles (Php 260)

· Cold Noodles (Php 270 – 315) · Rice Toppings (Php 60 – 325)

· Shakes (Php 100 – 145) · Ala Carte (Php 100 – 390)

· Drinks (Php 60 – 70)

Keigo Ramen & Katsu

Keigo Ramen & Katsu is located in Barangay Catmon, Malolos, Bulacan, at 24 Paseo del

Congreso St. The restaurant is a ramen shop that serves customers on a first-come, first-served

basis. Tonkatsu, noodles, soups, and katsudon are among the Japanese dishes served.

Pricing

· Ramen (Php 288-298)

· Rice Meal (Php 198 – 238)

· Sides (Php 28 – 128)

Shoujo Ramen

The ramen store is at 24 Paseo del Congreso St., Malolos, Bulacan, near Keigo Ramen &

Katsu. Ramen, miso, sashimi, nigiri, tempura, maki, and other Japanese rolls are available.

Puregold Jr. is the closest landmark. Right next to Amelito's Sizzling.

Pricing
 · Ramen (Php 188 – 198)

· Miso (Php 188- 198)

· Fish Rolls (Php 169 – 199)

· Nigiri (Php 169 – 199)

· Sashimi (Php 219)

· Tempura (Php 219)

· Other Rolls (Php 105 – 189)

Tokyo-Tokyo (1985 – Present)

On April 22, 1985, the first Tokyo-Tokyo restaurant began in the Quad car park in Makati,

and it was the first Japanese fast-food restaurant to provide unlimited rice with its meals at the

time. Tempura, tonkatsu, yakisoba, sushi, and sashimi were among the first Japanese foods served

by the brand. It’s owned by Hansbury Incorporated, and the primary headquarters is located at

RCC Building, Barangay Obrero, Diliman, Quezon City. It presently has over 80 sites around the

country. Tokyo-Tokyo has been offering high-quality Japanese food to Filipinos for more than 30

years. Part of its mission is to bring Japan closer to the Philippines. Tokyo-Tokyo has firmly

established itself as the country's pioneer Japanese fast-food chain. Tokyo-Tokyo is now a well-

known brand in Filipino dining, having established itself as the country's first and most prominent
Japanese restaurant. Although the Tokyo-Tokyo in Barangay Tikay, Malolos, Bulacan is only a

small stand, the brand makes it a direct rival.

Pricing

· Donburi (Php 115 – 205) · Burgers (Php 150 – 559)

· Bento Meals (Php 215 – 325) · Ala Carte Bento (Php 140 – 250)

· Sumo & Group Meals (Php 375 – · Ala Carte Donburi (Php 75 – 165)

850)
· Best Seller Trays (Php 300 – 1400)

· Platters for Sharing (Php 160 – 520)

· Maki & Sides (Php 30 – 375)

· Ramen (Php 190 – 290)

· Dessert & Drinks (Php 40 – 100)

· Ready-to-Cook (Php 200 – 700)

· Deals (Php 37 – 370)

Shin Yuu Japanese Cuisine

Shinjuku Japanese Cuisine is on Mc Arthur Highway, Barangay Tikay, Malolos, Bulacan,

close to GanChan Japanese Restaurant, and a small Tokyo-Tokyo kiosk. They mention that its

cuisine includes excellent tempura, shrimp, and meat. As they say, the crew works hard, stays
optimistic, and keeps the place productive. In addition, they offer dine-in, take-out, and delivery.

However, being directly next to its direct and indirect competitors is its main obstacle.

Pricing

· Teppanyaki (Php 199 – 395) · Ramen (Php 289 – 345)

· Rice (Php 45 – 209) · Tempura (Php 139 – 445)

· Rice Toppings (Php 195 – 275) · Salmon (Php 299)

· Bento (Php 299 – 349) · Sushi (Php 125 – 395)

· Dessert (Php 59 – 199) · Appetizer (Php 45 – 235)

· Beverage (Php 55 – 125) · Salad (Php 179 – 299)

· Grilled Meals (Php 149 – 359) · Noodles (Php 175 – 255)

Orenji De Ramen Food House

Orenji De Ramen Food House provides a selection of Japanese-style rice bowls. Felicisima

Village, 112 Orange Street, Malolos, Bulacan. Tonkotsu, tantanmen, and Miso ramen are their

specialties.

Pricing
 · Ramen (Php 140 – 150)

· Rice Meals (Php 120 – 160)

· Arakaruto (Php 70 – 80)

· Drinks (Php 8 – 50)

La Men Café (2021 – Present)

La Men Café is a Japanese restaurant on MacArthur Highway, Unit A2, Malolos, Bulacan.

It is a place to enjoy ramen, donburi, snacks, and coffee.

Pricing

· Donburi (Php 140)

· Ala Carte (Php 89 – 157)

· Snacks (Php 75 – 126)

· Coffee (Php 50 – 67)

Indirect Competitors
 A customer will decide based on a set of criteria. Surprisingly, indirect competition will

take precedence over direct competition because clients will first think if they want ramen or

something else.

As a result, what counts is whether certain types of brands, such as those that sell chicken

or those that offer ramen, appeal to them the most. They will choose a product that meets their

needs based on this. Another distinct characteristic of indirect competition is that it can serve the

same requirement; customers simply need to decide.

Any competition that is not based on the same product yet takes away prospective

customers from that product is indirect. Entrepreneurs can employ a variety of techniques to

counteract direct competition. Indirect competition is difficult to challenge since customers, not

the business, possess the responsibility.

Although vendors and suppliers have direct client contact, indirect competition is most

prominent among them. As a result, by directly promoting the product, they help with branding as

well. Depending on the scenario, vendors would either make deals or encourage clients to sample

their goods. The most difficult aspect of acquiring clients occurs at the level of indirect

competition. Large food corporations, for example, properly place their products in customers'

thoughts, but in the spur of the moment, indirect competitors grab the stage. As a result, our

objective is to position items and appeal to audiences in a manner that they outperform the indirect

competition and draw people to the brand's offering.

On occasion, McDonald's will launch a range of Japanese-style meals for a limited time.

This type of meal generally satisfies the cooking, prepping, and serving needs of fast-food

restaurants, thus it's common for them to sell it to the general public.
 For instance, Chinese cuisines, such as HapChan, Señora Carmen's Resto Garden, and

Chowking, fall into an indirect competition. Consumers must choose if they would rather have a

Japanese dish, a sample of Chinese food, or something else entirely. All of these different cuisines

are competitors in a roundabout way.

Furthermore, fast-food franchises like Jollibee, KFC, McDonald's, and others pride

themselves on having goods that can be consumed on the move. It's usually cheaper than eating at

a classic sit-down restaurant like ours.

PESTEL Analysis

Under the elements that are now affecting the business, Bōru Ramen, which is in the food

industry, recognized the Political, Economic, Socio-cultural, and Technological Analysis. This

research can aid in identifying external elements that have a significant impact on how the business

will operate as a community business.

Political

The Food Safety Act of 2013 is also known as Republic Act (RA) No. 10611. The

Department of Agriculture is one of the programs covered under Republic Act (RA) No. 10611.

(DA). The Department of Health and Human Services (DOH). The Interior and Local Government

Department (DILG). Units of Local Government (LGUs). Under the law, the safety and hygiene

of food, packages, and facilities must be rigorously adhered to. If the business does not prioritize

the cleanliness and safety of its food, packages, and premises, the Bōru Ramen may face a penalty

for breaking the law. Receiving a penalty, of course, will result in negative feedback and
background from customers. The Bōru Ramen will clean and examine the food and packages to

prevent incurring a penalty and unfavorable remarks about the business. facilities, and so forth.

During day shifts, the standard time is noon. If an employer forces a worker to work at

night, between the hours of 10:00 p.m. He must be paid a minimum of 10% more than his regular

rate for each hour worked. Under-time work on a business day has no bearing on overtime work

on any given day. This means that if a person leaves work early, he cannot be forced to work

overtime the next day to compensate. The Bōru Ramen must provide labor protection, encourage

full employment, offer equitable job opportunities regardless of sex, color, or creed, and regulate

worker-employer relations.

Economic

According to Trading Economics (2020), the rate of inflation climbed by 2.5 percent in

December of 2019. Because of the high demand for the seasonal effect of Christmas and because

of typhoons that disrupted other businesses to make the product, the heavily-weighted food, and

non-alcoholic drinks index increased by 1.7 percent. Housing, water, electricity, gas, and other

fuels accounted for 1.9 percent of total spending. In December, the restaurant, miscellaneous

products, and services sector increased by 2.7 percent. The rate of inflation may have an impact

on the cost of the products that Silogan on Wheels will sell, therefore it is critical to keep watch

on economic developments in the surroundings.

According to pig development (2019), African swine fever was detected in the Philippines

in September of this year. According to the World Organization for Animal Health (2018), African

swine fever is a viral illness that infects farmed and wild pigs and causes substantial production

and economic losses in the countries impacted. Furthermore, according to Tom Miles, edited by
Andrew Cawthorne (2019), the Department of Health certified that African swine fever cannot be

transmitted to humans, therefore the pig's meat was safe to eat, but finding a safer meat supplier is

more ethical. Boru Ramen Restaurant, as a business that sells ready-to-eat cuisine that includes

any meat dish, will make sure to buy from reputable vendors. Garlic and onion are being closely

monitored by the government.

Socio-cultural

Without a doubt, Filipinos in the Philippines follow the same habits as their neighbors in

adjacent Asian countries, which is to make and eat rice-based meals to fill their stomachs. Ramen

has been one of the most popular cuisine fads around the country, according to eCompareMo

(2019), with nearly every strip of eateries in the city featuring one famous Japanese noodle eatery.

The rivalry to be known as one of Manila's best ramen joints is strong, but that hasn't stopped new

ramen joints from popping up all over Metro Manila. It isn't just a passing craze; it is a culinary

classic with museums dedicated to it, and it has infiltrated even the most upscale restaurant menus.

Momofuku's David Chang is best known for it, but restaurants like Yuji have converted ramen

ingredients into pasta-like dishes. This demonstrates how far Japan's basic cuisine has progressed

and how quickly it is currently evolving. International companies have staked their place in the

Philippines, most notably Ramen Nagi, known for their outrageously laden bowls, and shortly,

Ippudo, rated by some as one of the best in the world. This may sound unusual in a country where

cupfuls of rice are consumed daily, but we have our noodle meals, and pants, that make this rapid

trend easily adaptable.

 As a result, Filipinos are accustomed to eating with their families, friends, and partners at

night to socialize and just enjoy the cuisine. Boru Ramen is a business that serves a wide range of

customers who want to enjoy and eat Japanese cuisine, notably ramen.

Technological

The Bōru Ramen employs solar panels to generate electricity for machinery that requires

it to function. There is a distinct advantage to employing on-hand technology over other

competitors for any business. Furthermore, because the Boru Ramen is a food business featuring

ramen and many other kinds of Japanese cuisine, it is a low-cost and convenient approach to offer

a modern form of business that can easily market and sell by traveling around as a business. There

is a distinct benefit over brick-and-mortar restaurants that are fixed in a certain area. So, for the

Bōru Ramen, every day is essentially a business day while still generating profit and money.
 Chapter V

MARKETING PLAN

Before Phase

The initial business marketing aim is to generate awareness of the existence of this brand-

new entity. The primary purpose of marketing is to communicate ideas. It's how our company

would communicate with the general population. Marketing encompasses everything from product

design to pricing, distribution, and advertising. People are hesitant to visit areas or businesses that

they are unfamiliar with. Many individuals also overlook the fact that marketing is responsible for

determining ways to develop products to fulfill client demands and requirements. When done

effectively, marketing aids in the education of customers and the development of better goods. Our

target market are the people who are driving off the highway and also Malolenos that crave a

noodle soup dish Our business's initial objective is to place 16x10cm billboards produced by the

owner along McArthur Highway. We are willing and open to new ways of doing things, new ways

of thinking, and new ideas because of our creativity.

Basic designs, location, business name, and so forth will be included. It is assumed that

after the city government has approved our business permit, we will be permitted to produce the

requisite billboard ads. Advertisements assist keep our business relevant by providing a reminder

to individuals that the business or a promotion exists.

A 16x10 physical billboard would cost between Php 35,000 and Php 75,000, depending on

design, materials, and other factors. To maximize its potential, it would be positioned in a location

where a large number of people pass through. We will deploy loudspeakers and play pleasant
music to grab the attention of any pedestrian or potential consumer. It no longer matters how

excellent our music is if we lack marketing abilities. We need marketing if we want to transform

our music passion into a vocation, and the great thing about marketing is that there isn't a limit.

With at least acceptable quality music, the better our promotion, the more successful we'll be. A

loudspeaker would cost around a minimum of Php 20,000 to Php 40,000. It would be placed in a

convenient area preferably in the parking area.

During phase

The business's operations are first carried out at this stage. This comprises marketing,

promotion, and advertising, which continues until the sales are completed. If the company has

sufficient funds, it might be prudent to construct a second or more 2x2 billboards in a more

strategic area. Other designs will be made, if possible, to cut material costs and boost our creativity.

It's critical to learn everything we can about our customers. It will be easy to target the

correct individuals because our focus is our business. We'd only obtain a general idea of our buyer

persona (e.g., age, gender, tastes, etc.) to help us figure out how to sell our products. At this point,

it might be beneficial to establish a Facebook page or other social media platform for our company

to increase awareness of our products. This is why we must seek out and publish in all of the

locations where we are likely to discover individuals interested in our items.When posting on

Facebook groups, the most essential thing is to discover relevant groups where we can reach our

target audience. Another option is to go live and share it with a group. We will raise awareness of

our product and gain views as a result of this and interested individuals will watch our live stream

and like our page. We may also leave useful comments on relevant posts. There are lots of ways

of promoting Facebook without annoying the members of its community.

After Phase

We must pay attention to what our customers are saying if we want to boost client lifetime

value and income. We will alter our company's approaches appropriately if we follow their

recommendations.Constantly improving depending on analytics and metrics we obtain from our

data is critical. But if we're making these modifications to keep our consumers loyal, there's no

better way to do it than to find out exactly how they're feeling or acting when using our products.

We'd follow their advice and send them surveys and polls via social media, our blog, and

emails. They can tell us what they think of new features we're going to introduce or existing

features we're considering enhancing in this way. It's not only about receiving user input for us.

We should also go out of our way to make them feel important by connecting with them. If a user

responds to our survey, we will express our gratitude. If we introduced a new feature in response

to their demands, let them know. We would respond immediately if they reached us through our

social media discussions. Making our consumers feel acknowledged and valued is the bottom line.

Allowing community organizations to utilize our facility would tap into their network and

would very certainly handle all of the promotion for us. This plan, on the other hand, would be

extensively debated among the owners first. We're thinking about conducting a profit share for the

charity. For example, donating a portion or all of our revenues over a set period. If a certain meal

isn't selling well, we'll try to combine it with one of the more popular dishes at a reduced price.

When something is on sale, people tend to buy more.

Marketing Ads
The following designs will be used for the marketing advertisements and posters of Boru

RamenRestaurant:

Restaurant:

Flyer 1 Front

Flyer `1 Back
Flyer 2 Front

Flyer 2 Back
 Chapter VI

OPERATIONAL PLAN

Evaluation of Suppliers

In every business, constantly satisfying customers’ demands is a constant search for the

finest suppliers. Every company must be allowed to select the option that provides an advantage

to them. To have a successful supplier evaluation, BoruRamen Restaurant and any firm should

consider the following aspects. The cost and cash of the suppliers would be requested by

BoruRamen Restaurant. If the given products and services are cost-effective and financially self-

sufficient. Another factor is the suppliers' management and consistency. Is the supplier able to

regularly deliver high-quality goods and services while maintaining total control over their

methods and processes?

The competency and commitment of the suppliers would come next. Do they have the

ability and capability to satisfy our demands and preferences, as well as a commitment to supplying

high-quality products? Another factor is the cleanliness of the suppliers. Is there a legal license,

are their production methods sustainable, and are their procedures ethical and environmentally
friendly? Lastly and most importantly is the suppliers' communication. Do they are capable of

effectively communicating our requests and modifications?

The following factors are the criteria of Boru Ramen Restaurant for their supplier evaluation:

1. Quality, Cost, and Delivery (QCD)

The most important criteria in the food industry are material quality, delivery dependability, and

cost. The most important factor in supplier selection should be the quality level of the procurement

items. Product quality should consistently meet specified requirements since it can directly affect

the quality of the finished goods. Not only product quality reliability but supplier characteristics

like delivery lead time shall also be considered carefully.

2. Long term relationships

 Some companies will develop long-term relationships with potential suppliers. This applies

to the supplier which falls under the category of the high volume of spending and plays critically

to the company’s business. With this approach, both parties need to share their mutual goals,

establish metrics to guide the relationship, and develop a series of ongoing discussions on how

issues and conflicts can be resolved in a mutually beneficial manner over the times. These

relationships may also involve joint cost-savings projects and new product development efforts.

3. Financial Stability

The financial status of the supplier should be carefully evaluated as to whether it directly affects

its ability to serve the customer. Analysis of Credit Reports plays an important role in financial

evaluation. Credit Reports contain information about supplier financial status. Credit reports

contain information on the experience, management, and facilities of the potential supplier. A

related supplementary procedure is an independent analysis of the supplier’s financial statement.

4. Total Performance

Supplier quality capabilities can be evaluated by using supplier certification programs.

Certification is about the setting of criteria regarding quality levels as demonstrated through the

use of statistical process control and such elements as process capability studies of a supplier’s

equipment, record-keeping abilities, and others. If a supplier meets some but not all of the criteria,

it may reach a “preferred” status and will remain on the construction organization’s bidders list.

5. E-commerce capability

The exponential growth of internet use has made the dream of E-commerce more realistic. The

expanding market for E-commerce is too huge to ignore for all businesses. Rapid developments in
technology are improving and providing online services very quickly. E-commerce adoption has

its organizational and business implications. It is not a magical solution to revolutionize a business.

Purchasing Procedures

Like individuals, businesses and organizations need to purchase goods and services to meet their

needs regularly. Like individuals, businesses need a formalized purchasing process if they want to

extract maximum value from every dollar they spend. How your company develops and

implements its purchasing plan can have a major influence on not just expenses, but your business’

overall competitive performance, profitability, and efficiency (Vecchio, 2021). According to

Bhasin (2021), the purchasing process is defined as a process used for the purchase requisition of

goods and services via a supply chain. It usually begins after the procurement team has defined

the needs or demands. It can be a physical service or inventory. In Boru Ramen, we will use

industrial purchase. The company will buy products or services to convert the item into a finished
product and good, which will be our products. It includes buying raw materials like spare parts or

tools, machines, supplies and consumer stores, components, office appliances, and equipment.

Traditionally, the purchasing process is a cycle, with each step requiring the exchange of

information and various approvals to move forward. Every business will have its unique touches

to add, but the purchasing process follows a well-established pattern of events. Firstly, the

company recognizes and documents a need for goods or services to solve a particular problem.

These are the ingredients, transportation fees, employees’ wages, electric bills, rent, and other

miscellaneous fees. Next is the purchasing of requisition to purchase order. The purchase

requisition comprises all the information needed to procure the commodities or services. Purchase

requests that fall below budget thresholds are converted into purchase orders and sent to the chosen

supplier for that item or service.

Before being moved to a purchase order, more expensive items, or unexpected

expenditures not in the budget will be submitted to the relevant persons for assessment and

approval. Purchase requisitions that have been rejected are returned to the originating party for

examination and, if necessary, modification or clarification. The third will be the purchase order

review and approval. Purchase orders that have been approved are forwarded to accounting to

ensure that funds are available in the proper budget to cover the required products and services.

Now, those who are in charge will request for proposal to get budget approval is returned to

acquisition and, when needed, utilized to construct a request for proposal documents.

There will also be contracting in negotiation and approval, shipping and receiving,

comparison of shipping documents or packing slips, invoice approval and payment, and

accounting record update. Implementation of manual, paper-based workflows, recordkeeping, and

storage is eliminated, and saving time and money will be included. Also, integration with vendor

systems and transparency into vendor performance, compliance, and contract information

improved supply chain management and supplier relationship management.

Storage & Inventory Control

Inventory management, at its foundation, assists businesses in determining how much

stock to purchase and when to order it. The business will need enough to fulfill client demand but

without taking up too much room. Restaurants also face the additional issue of selling perishable

food items that must be sold promptly before they deteriorate. Restaurant inventory management

keeps track of the food that arrives from suppliers and is utilized, misplaced, or leftover. Inventory

management assists restaurants in keeping the proper amount of food and materials on hand to

satisfy all customers while avoiding spoilage and loss.

Restaurants that adopt excellent inventory management are more likely to achieve long-

term success. Inventory management is critical to both day-to-day operations and long-term goals.

It has a direct influence on a restaurant's food expenditures and, as a result, its profit. And, because

food accounts for the majority of a restaurant's inventory, how well a restaurant manages inventory

is essential to its success.

Order by the Requirements

It is understood that calculating stock daily is a time-consuming task. The price of raw

materials in the Philippines is skyrocketing, therefore ordering on demand has become a must. If

the business owners wish to prevent such scenarios, it is strongly suggested that they invest in

powerful restaurant management software.

An effective restaurant management software is frequently capable of sending you real-time alerts

once an item hits its restore limit, allowing you to order items as needed. Such a strategy will save

you from ordering things that are currently in stock and will eventually go unused and expire in

your inventory. The inventory management software, which is integrated with the POS, offers you

the count of the opening and closing inventory, as well as automatically calculating the balance

stock and tallying it with the available physical stock.

Reduce Waste

In the Philippines, raw material prices are rising, emphasizing the importance of reducing

waste output. One of the first steps in reducing kitchen waste is to manage supplies effectively.

The following are the measures to minimize stock waste in the restaurant:

· Check your inventory frequently and order just what is needed. - Examine the sales record

to determine how much stock the business will need for the following period, which will save the

business money on unnecessary shopping visits.

· Set stock item reorder levels. - Installing a powerful restaurant management software will

prevent you from ordering when the supply is still available. It will also ensure that your kitchen

never runs out of supplies on a busy schedule.

· First in, first-out (FIFO) - Take the required procedures to guarantee that the products are

utilized in the order listed. This will prevent you from causing kitchen waste by leaving products

unused after their expiration date.

Have Standardized Recipes

 Inventory control will not be possible unless your kitchen follows a consistent recipe. It

will become difficult to order the precise or approximate amount unless a uniform formula for all

menu items is followed. A typical recipe includes the amount of each item used to make the meal.

Even the garnishing and display pieces must be included. A typical recipe includes the ingredients

and amounts, as well as the cooking technique and time necessary for each step. As a result,

following a standard recipe decreases the possibility of a meal being overcooked or undercooked,

resulting in less waste. A logical recipe management function is useful. It aids in food supply

control by only utilizing what is needed and in the appropriate quantities.

Shelf-Life Management

Customers are highly health concerned and pay close attention to health and hygiene,

making it important for restaurants to maintain a high level of food quality. To maintain maximum

quality, one must manage inventories and keep track of the shelf-life of the raw materials.

Diverse materials in the company's inventory will require different storage temperatures

and, as a result, have a different shelf life. Some things, like fruits and meat, must be used quickly,

whilst others, such as nuts and honey, can be held in the inventory for an extended period. Here

enters the need of maintaining the shelf life of the goods, this will help avoid the perishable items

rotting in the business' inventory and increase the restaurant's expenditures.

Reporting Analytics

It is necessary to develop frequent reports and analyze the inventory. However, manually

managing reports becomes very tough, and so a powerful POS will enable you to obtain detailed

sales and raw material consumption information that will help you estimate future raw material
demand and buy inventories accordingly. An overall sales report can assist the business to discover

their best and worst selling items, allowing them to fine-tune their menu engineering process.

Apart from the sales report, if they can get the daily report, they will be able to compare it to the

sales report and point out any internal differences in their restaurant.

Sales Procedure

Starting any business carries a number of risks. We will research our potential competitors.

Spend time in your customer’s shoes who can be the potential customers of your ramen business.

Skim your business’ knowledge base and dig deeper into what you could have those other

businesses could not have that can make you unique even though there might be or there are

competitors. Do outreach to find prospects fitting your ideal customer profile. Starting something

new always carries certain degrees of risk for failure though it seems promising on the surface.

Since our target customers are those people of age above 3yrs old who like ramen and who love

to eat Japanese cuisine. Our aim is to add some different flavors to our food items. Indeed, it has

brought a very wide range of stakeholders into close cooperation. Valuable lessons have been

learned about the challenge of collaboration in and across the fields of taste, health flavor, and

nutrients. To manage our sales, we must gather a useful data set, you must also apply the same

process to quieter evenings.

We will sales forecast for nights when the restaurant is half-full, or when one seating is

busier than the other. We can use this method to forecast restaurant sales for any period from a

single evening shift to a full year. By looking at the estimated highs and lows, we’ll establish our

restaurant’s weekly baseline, and get a clear vision of what your best-case and worst-case scenarios

could be on a daily, weekly, and monthly basis. Since we’re working with scenarios and estimates,
at the close of each night, we can compare actual sales to your estimated sales. Sometimes your

original estimate will be spot on, sometimes reality will fall short of your predictions, and on other

occasions, you’ll exceed your expectations beyond belief.

 CHAPTER VII

FINANCIAL PLAN

A. Machinery and Equipment Expenses

ITEM QUANTITY PRICE

3 P20,400

Noodle Maker Cooking

Machine

2 P11,200

Set of different sized pots

2 P1,700

Set of renge spoon

2 P1,900

Set of serving bowls

 2 P1,400

Set of ladles

2 P1,300

Set of strainers

2 P2,400

Stainless shelves
 2 P9,600

Stainless steel sink

2 P16,400

Hot water dispenser

1 P10,200

Kitchen freezer
 1 P11,000

Kitchen refrigerator

2 P46,400

Air conditioner

5 P8,500

Rice Cooker
 4 P9,000

Gas Stove

10 P9,200.00

LPG Gas

Subtotal P160, 600.00

B. Marketing Expenses

A marketing expense is “an amount of money the company spends on marketing,” according

to Cambridge Dictionaries Online. Marketing expenses are an important consideration for all

businesses because marketing is a primary business function that creates a customer for the

business. It's critical for business owners to understand the significance of marketing expenses,

their accounting definition, marketing expense management, and tax treatment. Typically, some

common marketing expenses include marketing salaries, marketing research, promotions, public

relations, and advertising costs.

Products/ Services Prices

 Flyers Php 900.00

(100 pieces 9 pesos each)

Tarpaulins Php 1,800.00

(10 pieces 180 pesos each)

Customer Loyalty Card Php 500.00

(50 pieces 10 pesos each)

Television Php 30,000

(2 40” inch tvs)

SubTotal PHP 33,200.00

C. Compensation Scheme

Incentive compensation programs are primarily used to promote the efficiency and

productivity of the workforce, but organizations can also use them to enhance employee

recruitment, engagement, retention, and employer branding.

The following amounts will be the designated proposed basic pay for each employee per month:

General Manager (1) P 35,000.00

Executive Chef (1) P 30,000.00

Beverage Manager (1) P 25,000.00

Assistant Manager (1) P 25,000.00

Kitchen Manager (1) P 25,000.00

 Sous Chef (1) P 20,000.00

Line Cook (2) P 15,000.00

Cashier (1) P 17,000.00

Dishwasher (2) P 10,000.00

Server (3) P 10,000.00

Subtotal P212,000.00

Incentive compensation programs stem from the theory that rewards drive behavior.

Applied to the corporate setting, incentive compensation programs enable organizations to produce

targeted results by rewarding employees who are responsible for those results. That is why, we at

BoruRame Restaurant will give bonuses to those people who help out in our advertising process,

before the opening of our business.

Particulars Price

Advertising Bonus Php 300 x 5 persons

= Php 1,500.00

Subtotal P 1,500.00

D. Miscellaneous Expenses

Miscellaneous Expenses mean expenses directly related to the conduct of official business,

such as official telephone calls, office supplies, parking fees, and local transportation.

Miscellaneous Expenses

Legal (permits and certifications) ₱25,000.00

 Stationery etc. (paper, menu and pens) ₱5,000.00

Phone (Telephone in the office) ₱3,000.00

Insurance (Claims) ₱30,000.00

Transportation Allowance ₱10,000.00

Subtotal ₱73,000.00

E. Lease & Building Expenses

Since the land property is not ours, we will be paying the rent for the land and also since it

is a vacant lot, we are still going to establish our building in the lot. The expenses for these

particulars are the following:

Particulars Prices

Rent (Lease) P40,000.00

Building Expenses P200,000.00

Subtotal P240,000.00

F. Office Supplies

Office supplies are consumables and equipment regularly used in offices by businesses and

other organizations, by individuals engaged in written communications, recordkeeping or

bookkeeping, janitorial and cleaning, and for storage of supplies or data. The range of items

classified as office supplies varies, and typically includes small, expendable, daily use items,

consumable products, small machines, higher cost equipment such as chairs, as well as office

furniture and art.

Particulars Price Source

Computer Setup Php 50,000 Xaviery Computer Center

2MQJ+WC5, Plaza Cristina

(2 setups/Php 25,000 per Building, City of San

unit) Fernando, Pampanga, San

Fernando

KVM Switch Php 1,850 (1 unit) Shopee.com

Sound System Php 12,500 (1 setup) Shopee.com

CCTV Php 20,000 (2 setups/Php Shopee.com

10,000 per unit)

Wired Ethernet Php 2,500 per month (1 Converge ICT Solutions Inc

unit)

(Php 30,000 annual cost)

Shelf Php 1,500 Home Depot

Lamp Php 1,000 (2 units/Php Home Depot

500 per unit)

Night Light Php 600 (2 units/Php 300 Home Depot

per unit)

Chair Php 2,550 (3 units/Php Home Depot

850 per unit)

Couch Php 6,000 (1 unit) Home Depot

Wired Telephone/Landline Php 600 per month (1 unit) Globe Telecom

 (Php 7,200 annual cost)

Headset w/ Microphone Php 4,000 (2 units/Php Xaviery Computer Center

2,000 per unit) 2MQJ+WC5, Plaza Cristina

Building, City of San

Fernando, Pampanga, San

Fernando

White Board Php 900 (1 unit) Pandayan Bookshop

White Board Marker Box Php 750 (1 unit) Pandayan Bookshop

Ball Pen Box Php 150 (1 unit) Pandayan Bookshop

Pad Paper Php 200 (4 units/Php 50 Pandayan Bookshop

per unit)

Subtotal P143,200.00

G. Safety Expenses

Particulars Price

Alarm equipment P10,000.00

Fire Extinguisher P5,000.00

Subtotal P 15,000.00

H. Factory Overhead

Factory overheads are the aggregate of indirect materials, labor, and other costs that

cannot be identified conveniently with the articles produced or services rendered.

 Particulars Price

Professional fees 10,000.00

Inventory Tracking System 5,000.00

Depreciation Expenses 12,500.00

Renovation fees 30,000.00

Cleaning fees 10,000.00

Insurance Expense 20,000.00

Tax 20,000.00

Subtotal 107,500.00

I. Direct/Indirect Materials

Direct Materials

PARTICULARS QUANTITY PRICE SOURCE

Different Vegetables 50 Kilograms P5,000.00 Malolos Public Market

Cooking Oil 20 Liters P2,900.00 Malolos Public Market

Pork (Meat) 10 Kilograms P3,600.00 Malolos Public Market

Beef (Meat) 10 Kilograms P4,000.00 Malolos Public Market

Rice 100 Kilograms P7,000.00 Malolos Public Market

Seafood 5 Kilograms P4,500.00 Malolos Public Market

Flour 50 Kilograms P3,000.00 Malolos Public Market

Spices 5 Kilograms P5,000.00 Malolos Public Market

Other Commodities 3 Kilograms P2,500.00 Malolos Public Market

 Subtotal P37,500.00

Indirect Materials

PARTICULARS QUANTITY PRICE SOURCE

Disposable Gloves 10 Boxes P1,500.00 New Star Malolos

Trash Cans 5 pieces P5,000.00 New Star Malolos

Trash Bags 200 pieces P750.00 New Star Malolos

Hair Nets 40 pieces P800.00 New Star Malolos

Napkins 30 pieces P4,500.00 Malolos Public Market

Forks & Spoons 50 sets P1,000.00 New Star Malolos

Chairs 80 pieces P10,000.00 Local Supplier of Chairs

Tables 20 pieces P15,000.00 Local Supplier of Tables

LED Lights 20 pieces P5,000.00 JV Hardware Shop

Tissues 100 pieces P1,000.00 DAISO Japan Store

Glass 50 pieces P8,000.00 New Star Malolos

Subtotal 52,550.00

J. Monthly Utilities Expense

Particulars Prices

Electricity P 30,000.00

Water P 5,000.00

Internet P 2,5000.00
Subtotal P 37,000.00

K. Summary of Total Expenses

Particulars Price

Machineries & Equipment Expense P 160,600.00

Marketing Expense P 33,200.00

Compensation Scheme P 213,500.00

Miscellaneous Expense P 73,000.00

Lease Expense P 240,000.00

Office Supplies P 143,200.00

Safety Expenses P 15,000.00

Factory Overhead P 107,000.00

Direct/Indirect Materials P 90,050.00

Monthly Utilities Expense P 37,000.00

Total Expenses P 1,112,550.00

Particulars Price

Starting Funds P 1,500,000.00

Total Expenses P 1,162,550.00

Contingency Cost P 116, 255.00

Total Remaining Funds P 221,195.00
L. Yearly Projected Income

Specified in the table below is the yearly projected income of Boru Ramen Restaurant:

Boru Ramen Restaurant

Projected Income Statement
for the YEAR 2022-2023

Revenue 2,000,000.00
Cost of Goods Sold 800,000.00
1,200,000.00
Operating Expenses
Labor Costs 212,000.00
Marketing Expenses 3,200.00
Insurance Expenses 15,000.00
Miscellaneous Expenses 10,000.00
Other Utilities Expenses 20,000.00
Tax 45,000.00
Total Operating Expenses 305,200.00

Net Income 894,800.00

 CHAPTER VIII

APPENDICES

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