Sample PFS PDF
Sample PFS PDF
UNIVERSITY OF MINDANAO
Bolton St., Davao City
College of Accountancy
A Feasibility Study
On
Presented to:
Presented by:
APPROVAL SHEET
This feasibility study “Options Sports Grill” is prepared and submitted by Ricardo L.
Marcellones, Cedric Ian Carlo E. Petalcorin, Noel Fersan V. Bañes, Dwight John L. Atienza,
Ricardo L. Dagatan Jr., and Sarah Jane Beit, to the faculty of the College of Accountancy as
Accountancy.
CERTIFICATION
This is to certify that Ricardo L. Marcellones, Cedric Ian Carlo E. Petalcorin, Noel Fersan
V. Bañes, Dwight John L. Atienza, Ricardo L. Dagatan Jr., and Sarah Jane Beit, have conducted
their feasibility study under the supervision of Prof. Eduardo G. de Gracia. I hereby
recommended as their Adviser and Financial Analyst by this office to assist the group throughout
Certified by:
CERTIFICATION
This is to certify that Ricardo L. Marcellones, Cedric Ian Carlo E. Petalcorin, Noel Fersan
V. Bañes, Dwight John L. Atienza, Ricardo L. Dagatan Jr., and Sarah Jane Beit, have conducted
their feasibility study under the supervision of Prof. Eduardo G. de Gracia. I hereby
recommended as their Grammarian by this office to assist the group throughout its research
completion.
Certified by:
PANEL OF EXAMINERS
Accepted and approved for final defense on August 29, 2009 in partial fulfillment of the
Davao City.
ACKNOWLEDGEMENT
The researchers would like to express their heart felt gratitude to the following people
understand the different aspects of Project Feasibility Study and how it could help researchers as
entrepreneurs.
Mr. Sony H. Sailadin, researchers’ financial adviser and analyst, for the assistance and
Mrs. Ma. Cecilia Lea Bantilan, researchers’ grammarian, for the effort and time she had
To the parents of Noel Fersan V. Bañes and Cedric Ian Carlo E. Petalcorin for the stay
To the parents who always give their moral and financial support in the struggle of life.
To the Almighty GOD who gives wisdom, knowledge, strength, blessings and for leading
TABLE OF CONTENTS
Page
Title Page i
Acknowledgment vi
Executive Summary x
I. INTRODUCTION
Definition of Terms 3
Price Comparison 7
S.W.O.T. Analysis 8
Survey 9
Location Map 33
Floor Plan 34
Production Layout 35
Supplies 37
Gantt Chart 38
Production Procedures 41
Organizational Chart 45
Job Description 46
Operating Hours 53
V. FINANCIAL ASPECT
Start – Up Cost 55
EXECUTIVE SUMMARY
Options Sports Grill is a grill restaurant that offers various grilled food. The nature of this
restaurant is sports-themed and has amenities that the customer can enjoy either to play games,
watch games, or simply hang-out. This restaurant is located along F. Torres Street in Davao City,
The target market of the business is employed single individuals, 20 – 24 years old,
regardless of gender. The establishment also provides opportunities for employment. The
Finally, our Financial Aspect has information about Projected Income Statement, Balance
Sheet, Statement of Cash Flows, and Notes to the Financial Statements. The return on investment
for the first year is 32%, the accounting rate of return for the first year is 5.78%, the current ratio
for the first year is 2.95:1, and the payback period is just .98 years or 11 months and 23 days.
The proponents believe that this project will be feasible and profitable.
1
INTRODUCTION
Sports grills are restaurants that blend dining and sports together. These
restaurants offer their customers the ambience of the genuine sports experience that one
may enjoy while eating his favorite dishes – without the hassle of food preparation.
Sports grills are often places where people gather to watch sports games while
dining and drinking with their sports buddies. These restaurants also gather people
Sports grills are abundant in the United States because of the huge following of
the population over there in different sports, like American football, baseball, basketball,
and many more. Here in the Philippines, there is a notably popular one which is the
National Sports Grill, located in Metro Manila. Here in Davao City, there are restaurants
that attempt to give the customers that blend of dining and sports but are not really
dedicated sports grills such as the National Sports Grill in Manila. Basically speaking, the
industry is still very young here in our country, but very promising as well especially here
in Davao City.
2
The idea of putting up a sports-themed grill in Davao City is relatively young and
promising. Presently, there is no such kind of establishment that offers what the owners
are planning to feature their restaurant once it is established. It would definitely be one of
The market being targeted by the proponents of this study is based on socio-
demographic figures which include population, educational status, civil status, and
employment status.
industrial partners.
The study would be of help to people who may one day be interested in putting up
a new business that is unique in nature. This study would also be very helpful to the
economy as it gives job opportunities to the unemployed and also the success of this
endeavor would bring a positive impact to the economy as a whole. There is a growing
need for putting up this kind of business because of the fact that more people are now
inclined in sports, due to the revival of the love of sports of the Filipino people because of
Definition of Terms:
1. Sports Grill – a grill restaurant that is furnished and design sportily, and its
amenities may include sports equipments for the customers to play while drinking
and dining.
1. Inflation Rate
= 3.8% is the inflation rate assumed by the proponents for the prices of sales,
= 2.41% is the current population growth rate of Davao City from 2000-2007
3. Socio-Demographic Figures
MARKETING
ASPECT
5
Product
Product is anything that can be offered to a market that might satisfy a want or
need.
Options Sports Grill features grilled dining that Davao City has never
experienced. Davao city has never had a sports themed grill house to be put up as a
business. From this fact, the partners owning Options Sports Grill thought up of a
This establishment features one of the most promising services here in Davao
City. Customers can enjoy their favourite grilled food while watching their favourite
sports game. Another feature in this establishment is that customers can also choose to
play some indoor games while enjoying their beers and snacks.
Price
Options Sports Grill uses the penetration pricing strategy. Penetration pricing
strategy is the pricing technique of setting a relatively low initial entry price, often lower
Placement
Placement refers to how the products get to the customers. This third P has also
been called place, referring to the channel by which a product or service is sold.
families, business people), etc. It also refers to how the environment in which the product
Promotion
brand or company. The partnership decided to use the following methods as a mean to
• Print ads
7
Price Comparisons
Idol Grill
S.W.O.T Analysis
Strengths:
5. Friendly environment.
Weaknesses:
Opportunity:
Threats:
Survey:
1. Gender
Gender
45% Male
55% Female
Figure 1.1 shows that there is a little difference in the distribution of the market as to
gender.
Age
Age
6%
8% 17 below
18-25
26-32
24%
61% 33-40
41 above
Figure 1.2 shows the majority of the respondent age from 18 – 25 years.
10
2. Civil Status
Civil Status
0% 0%
21%
Single
Married
Separated
Widow / Widower
79%
3. Educational Attainment
Figure 1.4 shows that there is an even distribution among the respondents that graduated
4. Occupation
Figure 1.5 shows that majority of the respondents who took the survey are
employed individuals.
Figure 1.6 show that majority of the respondents earn P10, 000 and below.
12
Figure 2.1 shows the almost all of the respondents like to eat at grill restaurants.
Figure 2.2 shows that 66% of the respondents eat at grill restaurants 1 – 2 times a
week, 22% at 3 – 4 times a week, the remaining are relatively the same.
13
Figure 2.3 shows that most of the respondents like to eat chicken and pork
barbeque.
Figure 2.4 shows that majority of the proponents prefer to drink soft drinks
Figure 2.5 shows that there is almost an even distribution among the respondents
Type
Typeofof Chart Title Type of
Liquor
Liquor Liquor
Beer
Usually
Usually Usually
Gin
Taken,
Taken, Taken,
Type of
Brandy,
Others,
Whisky, Cocktails
Rhum
Liquor
0%,
7%,
4%,0%
7%
4% , 14%,…
Usually Tequila
Taken,
Type of Vodka
Type of Beer, Type Type of
Liquor
Liquor 44%,… of Brandy
Liquor
Usually
Usually
Taken, LiquorWhisky
Usually
Taken,
Vodka, Usually Taken,
Tequila,
6%, 6% Taken,Cocktails
Gin,
8%, 7% Rhu… 11%,…
Figure 2.6 shows that most of the respondents like to drink beer.
15
Figure 2.7 show that most of the respondents find F. Torres St. very accessible.
III.
1. The proponents if this study is planning to put up a sport – themed grill here in
Davao City. Would you be interested to come and try it with your family and
friends?
Figure 3 shows that majority of the respondents like the idea of the proponents of this
study.
16
Determining the Demand of the Target Market, and the Supply of the nearby
Competitors
Single
80517
in a year
in a year
17
Beer
Year 1 2,976,740
Year 2 3,048,479
Year 3 3,121,948
Year 4 3,197,187
Year 5 3,274,239
there are currently 10 restaurants within the area that serve grilled foods
Based on interview to the suppliers, each table orders an average of 3 buckets or 18 bottles of
2,088 x 18 = 37,584 bottles of beer a week
17
+ 2.41% 4,082,816
+ 2.41% 4,181,212
+ 2.41% 4,281,979
+ 2.41% 4,385,175
+ 2.41% 4,490,858
+ 2.41% 3,048,479
+ 2.41% 3,121,948
+ 2.41% 3,197,187
+ 2.41% 3,274,239
+ 2.41% 3,353,148
Totals
7,000
5,000
24,000
6,000
42,000
232 x5 1160
464 x2 928
2088
Food Beer
Tables Seats Total Seats Tables
38 4 152 38
Beer = in bottles
Year Demand Supply Demand Gap Share in Market
% in gap
gap% in total %
supply
in total demand
1 2,976,740 2,551,536 425,204 88,296 20.77% 3.34% 2.97%
2 3,048,479 2,613,028 435,451 97,126 22.30% 3.58% 3.19%
3 3,121,948 2,676,002 445,946 106,838 23.96% 3.84% 3.42%
4 3,197,187 2,740,494 456,693 117,522 25.73% 4.11% 3.68%
5 3,274,239 2,806,540 467,699 129,274 27.64% 4.40% 3.95%
20
Chicken Barbecue 62
Pork Barbecue 45
Grilled Pork Belly 15
122
Soft Drinks 57
Beer 6
Iced Tea 32
Juice 11
106
Total Orders
Soft Drinks 53.77%
Beer 5.66%
Iced Tea 30.19%
Juice 10.38%
20
50.82%
36.89%
12.30%
100.00%
124,418
62,376
45,519
15,173
53.77%
5.66%
30.19%
10.38%
124,418
66,904
7,043
37,560
12,911
21
Demand
Supply
Figure 4.1 shows the demand and supply of grilled foods orders for the next five years.
Demand
Supply
Figure 4.2 shows the demand and supply of beer for the next five years.
22
Forecasted Sales
Chart Title
1
2
3
4
5
Chart Title
1
2
3
4
5
24
Chart Title
1
2
3
4
5
25
26
4
4,210,159.10 2,460,505.76 1,002,428.27 7,673,093.12
Chart Title
1
2
3
4
5
27
Chart Title
1
2
3
4
5
28
Chart Title
1
2
3
4
5
29
Chart Title
1
2
3
4
5
30
Selling Total
Year Demand price
2
14,202 15.57 221,131.87
Chart Title
1
2
3
4
5
31
Chart Title
1
2
3
4
5
32
2
916,692.10 281,440.56 643,292.71 221,131.87 2,062,557.24
Chart Title
1
2
3
4
5
33
TECHNICAL
ASPECT
34
LOCATION MAP
35
FLOOR PLAN
36
PRODUCTION LAYOUT
37
Estimated Price
Quantity Equipment (each/set) Total Price
SUPPLIES:
Estimated Price
Quantity Equipment (each/set) Total Price
GANTT CHART
Renovation work
Hiring of Applicants
Orientation of workers
PRODUCTION PROCEDURE:
Pork Barbeque
1 head Garlic
Procedure:
2. Marinate it with soy sauce, calamansi, garlic, salt, pepper. Pour some of
Chicken Barbeque
1 head Garlic
Procedure:
2. Marinate it with soy sauce, calamansi, garlic, salt, pepper. Pour some of
8 pcs. Calamansi
Procedure:
2. Pour soy sauce and squeeze some calamansi. Sprinkle salt and pepper.
Mix well
3. Marinate overnight.
MANAGEMENT
ASPECT
46
47
- Assist in cooking
Qualifications:
- 18 – 23 yrs. Old
- Male or Female
- Single
Qualifications:
- 18 – 23 yrs. Old
- Male or Female
- Single
Qualifications:
- 18 – 23 yrs. Old
- Male or Female
- Single
- College level
Qualifications:
- 18 – 23 yrs. Old
49
- Male
- Single
at some level for buying or approving the acquisition of goods and services needed by the
company. The position responsibilities may be the same as that of a buyer or purchasing
Manager may oversee the acquisition of materials needed for production, general supplies
often supervises purchasing agents and buyers, but in small companies the Purchasing
4. Promotions/Transfer
5. Redundancy
The general areas of finance are business finance, personal finance, and public
finance. Finance includes saving money and often includes lending money. The field of
finance deals with the concepts of time, money and risk and how they are interrelated. It
- Receives and issues receipt in all money paid and received by the business
- Keep all reports and deposit all cash sales for the day.
Qualifications:
- 18 – 23 yrs. Old
- Female
- Single
51
- College level
Wages: P 200
Accountant:
assurance about financial information that helps managers, investors, tax authorities and
organization.
Qualification:
- Single
- 24 – 35 yrs. old
- Male or female
- Computer literate
Fayol.
§ Planning is deciding in advance what to do, how to do it, when to do it, and who
should do it. It maps the path from where the organization is to where it wants to be.
The planning function involves establishing goals and arranging them in logical
relationships. The purpose is to achieve coordinated effort among all the elements in
the organization. Organizing must take into account delegation of authority and
§ Staffing means filling job positions with the right people at the right time. It
support system. Directing requires exceptional interpersonal skills and the ability to
motivate people. One of the crucial issues in directing is to find the correct balance
§ Controlling is the function that evaluates quality in all areas and detects potential
§ Budgeting, exempted from the list above, incorporates most of the administrative
functions, beginning with the implementation of a budget plan through the application
of budget controls.
Qualifications:
Operating Hours:
Options Sports Grill is open daily with the following operating hours:
5:00 PM – 10:00 PM
5:00 PM – 12:00 AM
55
FINANCIAL
ASPECT
55
PhP 581,804
300,000
200,000
423,700
300,000
15,717
106,350
15,389
41,540
2,000
5,000
8,500
PhP 2,000,000
Options Sports Grill
Projected Comprehensive Income Statement
for the year ended December 31
56
Options Sports Grill
Projected Statement of Financial Position
For Five Year Period as of December 31
Liabilities
Accounts Payable 18 500,000 500,000 500,000 500,000 500,000
Income Tax Payable 13 279,590 387,910 535,996 685,515 847,578
Value Added Tax Payable 14 621,311
Total Liabilities 779,590 887,910 1,035,996 1,185,515 1,968,888
Partners' Equity
Partners\ Capital 19 2,000,000 2,652,377 3,557,500 4,808,157 6,407,692
Add: Net Income after Tax CIS 652,377 905,124 1,250,657 1,599,535 1,356,370
Total Partners' Equity 2,652,377 3,557,500 4,808,157 6,407,692 7,764,063
Total Liabilities and Partners' Equity 3,431,967 4,445,412 5,844,154 7,593,208 9,732,952
57
Options Sports Grill
Projected Cash Flow Statement
For the year ended December 31
58
59
I. Payback Period
Period Net Cash Inflow Net Investment
0 2,000,000
2010 2,044,123 (44,123)
2011 1,216,904
2012 1,520,308
2013 1,841,586
2014 2,227,031
Payback Period = .98 years or 11 months and 23 days
Sports Grill
tements Analysis
Years
0.98
Rate of Return
5.78%
7.31%
9.19%
10.69%
8.23%
Return on Investment
32.62%
45.26%
62.53%
79.98%
67.82%
Current Ratio
2.95:1
3.35:1
3.38:1
4.36:1
4.93:1
63
SOCIO - ECONOMIC
ASPECT
64
Employment
The establishment of Options Sports Grill would contribute to the opportunity for
unemployed individuals to land a job. In line with this, the business will help in a way to
Taxes
government in its drive to raise funds for public welfare by paying taxes that is due from
them.
People
The establishment of Options Sports Grill would spark and allow people to
rekindle the sport buff within him. The grill would not only provide quality products and
services to its customers but also inspire them to be active in sports and say no to drugs.
The Options Sports Grill would definitely capture not only the hearts of sports lovers, but
also those who have not yet learn to appreciate sports as well.
65
Based on the information that the proponents have gathered, it has been analyzed
There are a number of individuals who frequent a certain area such as F. Torres
Street where they could satisfy their needs and wants of hanging-out and to party. A good
number to would want to eat grilled food and drink beer. A number also said that they
would definitely go to a sports grill that offers both grilled food and beer. There are
plenty of established competitors in our area, but what gives us the edge is the unique
nature of our business which blends into a perfect mix dining, drinking, and sports.
The business will be profitable based on the study that was made, yet there are
still some factors that must be taken into consideration so that the business may thrive. If
given a very dynamic, responsible, and innovative management the proponents believe
Quality of service that is given to the customers must be at its best. The prices
must also be competitive enough and reasonable to the customers given the many
competitors around the vicinity. Customer satisfaction must always be guaranteed and