Lutong Jort Business Plan

I. Executive Summary

This plan is about a new business which will be done during the Entre-fair. It
covers the core concepts that are involved in the development and implementation of
this new business. Taking the initiative and pulling it towards something unique and
different. This project guides about the business’ attributes, boosting its early phases to
penetrate through target market identification, planning for market positioning,
effective pricing strategy, how to promote it to clients through different mediums and
sources and most importantly, the environmental factors that are associated with the
early stages of business development and post variable factors that are major
challenges to the business.

II. Business Description

The Lutong Jort will be a moderately priced food stall offering ready to eat food
for Saint Joseph School (SJS) students who want to have other varieties of food aside
from what they usually buy in the canteen. Tempura, hotdog, lumpia shanghai,
sandwich (nutella and chicken spread) and pastil along with vegetable and chicken
dishes during lunch time are all on the menu.

The food stall will be owned and operated by the Gr.12 Students of Saint Joseph
School. The Gr.12 students will be asking permission to the school’s administration to
house the food stall inside the TLE Room. The location is advantageous since it has a
sofa set and other furniture where customers can stay. Moreover, the TLE room has its
own kitchen which could be a great relief to the operators especially in preparing the
food.

III. Product or Service Description

Basically, Lutong Jort will offer fast and ready to eat food which students can eat
during recess time. Also, there will be variety of dishes during lunch.

IV. Industry Analysis

Food Stall Industry

The food stall industry is hailed as today’s top small business to start in
the Philippines. The market trend in the Philippines now also demonstrates that
engaging in the food stall industry has now become on one of the top choices of
budding entrepreneurs.

Food stall can easily be spotted anywhere. From malls down to every corner of
the street in the local Barangays, one can instantly enjoy a serving of siomai, pizza,
empanada, hotdogs, waffles, and good old comfort foods like mami and rice porridge.
Schools and even the churches have now become the tiny hubs where these small and
sometimes moveable kiosks have flourished.

Our position in the industry

Saint Joseph School is an affluent area with a high density of students and parents, an
ideal market for a food stall such as Lutong Jort. Students can afford to spend money
on variety of snacks and are willing to do so.
V. Competition Analysis

It’s a fundamental of business where you have competition along your business.
If you want to overcome your competitor you must have knowledge of that business as
much you have your own. Similarly, Lutong Jort is facing considerable competitors in SJS
Campus like:

 Canteen A (Old Canteen)

 Canteen B (New Canteen)
 Street Vendor (Along the SJS Gate)

Competitor Best Selling Products/Advantages Disadvantage

Canteen A Siomai, BBQ, Products are priced a little higher

More variety of food,
Canteen B Combo Meal Crowded during break time

Street Vendor Fish ball, Located outside the campus,

Very cheap in terms of product Food preparation is not good.
price

VI. SWOT Analysis

Strength Weaknesses
 Excellent and strategic location  Single location means limited reach
 New and better product offered  No direct marketing experience
compared to competitors  Don’t have a detailed plan yet
 Quick service  Needs more customer service
 Limited budget
 Limited seating capacity
Opportunities Threats
 Have the ability to serve new  Rising cost of ingredients
products  Market demand can be seasonal
 Competitors have high-priced  Too many similar food stall outside
products the campus


VII. Marketing Plan

Product Offerings

Lutong Jort will offer ready to eat food for Saint Joseph School (SJS) students who
want to have other varieties of food aside from what they usually buy in the canteen.
Tempura, hotdog, lumpia shanghai, sandwich (nutella and chicken spread) and pastil
along with vegetable and chicken dishes during lunch time are all on the menu.

By focusing on quality, consistency, and great customer service we will build a

steady repeat customer base.

Pricing Strategy

We intend to mainly focus on ready to eat foods which are affordable for
students. Price of the products will range from Php 5.00 to Php 75.00. Our pricing will be
competitive with both canteens inside the campus.
Sales

We will be offering counter service inside the TLE Room. Seats will be a mix of sofa
and high chairs. We intend to be open from 9:30 AM to 2:00 PM during school days.

Advertising and Promotion

To minimize costs and connect with our customer demographic, most of our advertising
will be of the digital variety. We intend to aggressively promote our products using the
following methods:

Posters on the local campus bulletin boars

Social media: Daily specials will be announced on Facebook and Twitter

VIII. Operation Plan

Facilities

The location we have chosen is the TLE room. The space features:

 Huge indoor space in a well maintained building in an excellent location

 Utilities (water, electricity) are available
 There are existing kitchen, counter and sufficient washroom facilities already in
place. The school administrators have allowed the Gr.12 students to use the
kitchen equipment.

Equipment

Since there is already an existing kitchen in the TLE Room, only equipment for the
food products will be purchased such as Plastic cups, Styrofoam, plastic eating utensils
and sticks.

Supplies

Food products will be purchased from the local grocery stores which will be then
cooked and be ready for sale.

IX. Human Resource Plan

All Grade 12 students will share all regular duties, including taking orders,
cooking, clearing tables, restocking, dish washing, maintaining washroom facilities, etc.

X. The Budget

For the Combo meal, the budget will be Php 2110.00 which includes:

1800.00 – Ingredients for the meal dishes

310.00- Styrofoam
XI. Liquidity

Cash Received ___________

Cash from Operations ___________
Cash Sales ___________
Subtotal Cash from Operations ___________
Additional Cash Received ___________
New Current Borrowing ___________
New Other Liabilities (interest-free) ___________
New Long-term Liabilities ___________
Sales of Other Current Assets ___________
Sales of Long-term Assets ___________
New Investment Received ___________
Subtotal Cash Received ___________
Expenditures ___________
Expenditures from Operations ___________
Cash Spending ___________
Bill Payments ___________
Subtotal Spent on Operations ___________
Additional Cash Spent ___________
Sales Tax, VAT, HST/GST Paid Out ___________
Principal Repayment of Current
Borrowing ___________
Other Liabilities Principal Repayment ___________
Long-term Liabilities Principal Repayment ___________
Purchase Other Current Assets ___________
Purchase Long-term Assets ___________
Dividends ___________
Subtotal Cash Spent ___________
Net Cash Flow ___________
Cash Balance ___________

XII. Financial Plan

Income Statement

Sales ___________
Direct Cost of Sales ___________
Other Production Expenses ___________
Total Cost of Sales ___________
Gross Margin ___________
Gross Margin % ___________
Expenses ___________
Payroll ___________
Marketing & Other Expenses ___________
Depreciation ___________
Leased Equipment ___________
Utilities ___________
Insurance ___________
Rent ___________
Payroll Taxes ___________
Other ___________
Total Operating Expenses ___________
Profit Before Interest & Taxes ___________
Interest Expense ___________
Taxes Incurred ___________
Net Profit ___________
Net Profit/Sales ___________