Upload
dexter-alonday
View
141
Download
1
Embed Size (px)
Citation preview
Epicurean Chocolates | 1
Ateneo de Davao University
A Project Feasibility Study in establishing a
Chocolate Patisserie in Davao City
“EPICUREAN CHOCOLATES”
In Partial Fulfilment of the requirements in
Accounting 12: Management Consultancy
Submitted to:
Ryan Morales, CPA
Submitted by:
Dexter Val Alonday
Jeanette Amabelle Ansing
Dawn Nicca Aryata
Joshua Rey Cosare
Jasper Nikko Estimada
Maricon Mamaclay
Sweetzel Dyne Morales
Shieldon Vic Pinoon
October 2016
EPICUREAN | i
Acknowledgement
We, the proponents of this feasibility study, would like to express our heartfelt gratitude to
the people who have contributed to the success and completion of this study:
To our Almighty Father, for without Him, everything will not be possible.
To our respective families, for the unfailing financial and moral support.
To Mr. Ryan Morales, CPA, subject professor, for the guidance and insights in our
revisions to make our study a good one.
To Mr. Charlon San Pedro, chef, for his insights regarding our proposed menu and sharing
his knowledge about the workings of a restaurant.
To Mr. Eric V. Mamaclay and Engr. Ely V. Mamaclay, for making the floor plan of our
proposed store.
To Rafski Pastry and Bakery Supplies, for accommodating us in our interviews regarding
the technical aspect of our study.
To Mr. Fernando Lagahit, Regional Head of DBP Davao, for sharing his knowledge
regarding the financial part of our study.
To Alonday Family, for their hospitality in offering their home and resources when we
needed it.
To the administrators of University of the Immaculate Conception, Holy Cross of Davao
College, and Mazda, for allowing us to enter their school and business premises in order to conduct
our survey.
To the respondents, who have willingly given their time to answer our survey questions.
To everyone, who have, in one way or another helped us in our journey.
EPICUREAN | ii
TABLE OF CONTENTS
Acknowledgment ............................................................................................................................ i
Table of Contents .......................................................................................................................... ii
List of Charts ................................................................................................................................ iv
List of Figures .................................................................................................................................v
List of Tables ..................................................................................................................................v
I. Summary of the Project ........................................................................................................1
A. Name of the Project .............................................................................................................1
B. Location ...............................................................................................................................2
C. Descriptive Definition of the Project ...................................................................................2
D. Long Range Objectives ........................................................................................................3
E. Feasibility Criteria ...............................................................................................................3
a. Market ............................................................................................................................3
b. Technical ........................................................................................................................3
c. Financial .........................................................................................................................3
d. Socio-economic..............................................................................................................4
e. Organization and Management ......................................................................................4
F. Highlights .............................................................................................................................4
a. History of the Project .....................................................................................................4
b. Nature of the Industry ....................................................................................................5
c. Problems faced by the industry ......................................................................................5
d. Mode of Financing .........................................................................................................5
e. Investment cost and initial working capital ...................................................................6
G. Major Assumptions and Summary of Findings and Conclusions .......................................6
a. Market ...........................................................................................................................6
b. Technical ........................................................................................................................7
c. Financial .........................................................................................................................7
d. Socio-economic..............................................................................................................8
e. Organization and Management ......................................................................................8
EPICUREAN | iii
II. Market Study .......................................................................................................................10
A. Product Description ...........................................................................................................10
B. Market Description ............................................................................................................11
C. Supply ................................................................................................................................13
D. Demand ..............................................................................................................................18
E. Price Study .........................................................................................................................32
F. Marketing Program ............................................................................................................35
III. Technical Feasibility ...........................................................................................................52
A. The Products ......................................................................................................................52
B. Production Process .............................................................................................................71
C. Production Scheme and Operations ...................................................................................76
D. Plant Location ....................................................................................................................78
E. Establishment Layout.........................................................................................................80
F. Machinery and Equipment .................................................................................................83
G. Building and Facilities .......................................................................................................96
H. Raw Materials and Supplies.............................................................................................102
I. Utilities .............................................................................................................................110
J. Waste Disposal.................................................................................................................111
K. Labor Requirements .........................................................................................................112
L. Production Cost ................................................................................................................114
IV. Financial Aspect ................................................................................................................115
A. Major Assumptions used in the preparation of Financial Statements..............................115
B. Total Project Cost ............................................................................................................117
C. Initial Working Capital Requirements .............................................................................118
D. Alternative Sources of Financing.....................................................................................119
E. Sources of Financing the Project .....................................................................................120
F. Pro-Forma Financial Statements ......................................................................................122
G. Financial Analyses ...........................................................................................................140
a. Financial Ratios .........................................................................................................140
b. Horizontal and Vertical Analyses ..............................................................................142
c. Capital Budget Analysis ............................................................................................148
EPICUREAN | iv
1. Payback .............................................................................................................148
2. Discounted Payback ..........................................................................................149
3. Net Present Value .............................................................................................149
4. Internal Rate of Return......................................................................................150
H. Accounting and Control Policies ..................................................................................151
a. Revenue Cycle ........................................................................................................151
b. Expenditure Cycle ...................................................................................................153
V. Socio Economic Aspect .....................................................................................................156
VI. Organization and Management Study ............................................................................158
A. Basic Considerations in Forming the Organization ......................................................158
B. Form of Ownership .......................................................................................................159
C. Key Personnel ...............................................................................................................160
D. Organizational Policy....................................................................................................162
Appendices ..................................................................................................................................164
Bibliography ..............................................................................................................................194
APPENDICES
Appendix 1.0. Articles of Partnership..........................................................................................164
Appendix 2.0. Lease Contract ......................................................................................................167
Appendix 2.1. Survey Questionnaire ...........................................................................................171
Appendix 3.0. Cost of Raw Materials ..........................................................................................172
Appendix 4.0. Credit and Debit Card Transaction Path ..............................................................177
Appendix 4.1. Lists of banks for future borrowings ....................................................................178
Appendix 4.2. Computation of WACC........................................................................................182
Appendix 4.3 Local Business Tax Matrix ..................................................................................183
Appendix 4.4 Basis for Inflation Rate .........................................................................................184
Appendix 4.5. DBP Credit Terms ................................................................................................185
EPICUREAN | v
LIST OF CHARTS
Chart 2.0. Epicurean’s Annual Share in the Overall Demand for Cakes in Units for the Years
2016-2021 ........................................................................................................................................2
Chart 2.1. Epicurean’s Annual Share in the Overall Demand for Cupcakes in Units for the Years
2016-2021 ......................................................................................................................................29
Chart 2.2 Epicurean’s Annual Share in the Overall Demand for Cookies in Units for the Years
2016-2021 ......................................................................................................................................30
Chart 2.3 Epicurean’s Annual Share in the Overall Demand for Ice Cream in Units for the Years
2016-2021 ......................................................................................................................................30
Chart 2.4. Epicurean’s Annual Share in the Overall Demand for Hot Chocolate Drinks in Units
for the Years 2016-2021 ................................................................................................................31
Chart 2.5. Epicurean’s Annual Share in the Overall Demand for Cold Chocolate Drinks in Units
for the Years 2016-2021 ................................................................................................................31
Chart 3.0. Order Processing Flow .................................................................................................70
Chart 3.1. Take-out process Flow ..................................................................................................71
Chart 3.2. Production Process ........................................................................................................72
Chart 3.3. Order Processing ..........................................................................................................73
Chart 3.4. Raw material Procurement Process...............................................................................74
Chart 3.5. Raw material Receipt Process .......................................................................................75
LIST OF TABLES
Table 2.0. Number of Pastry and Coffee Shops in Davao City for the past five years .................13
Table 2.1. Projected number of Pastry and Coffee Shops in Davao City for the next five years ..13
Table 2.2 Respondent’s Response on Whether They Have Health Issues with Chocolate Products
........................................................................................................................................................19
Table 2.3. Weighted Number of Responses for Respondents’ Preference of Premium Chocolate
House ............................................................................................................................................20
Table 2.4. Weighted Percentage of Frequency of Going to Hangout/Study Place/Cafe of
Respondents ...................................................................................................................................22
Table 2.5. Percentage of Respondents with Consumption of Products of 1-2 times and More
than 2 times Per Week ...................................................................................................................23
EPICUREAN | vi
Table 2.6 Computed Daily and Annual Demand for Each Product ...............................................24
Table 2.7 Estimates of market share for a new food business with different levels of competition
........................................................................................................................................................25
Table 2.8. Epicurean’s Share in the Computed Overall Annual Demand in Davao City for Each
Product in Units ............................................................................................................................26
Table 2.9. Computed Percentage of Prospective Customers of a Chocolate House and Target
Market per Week of the Current Year and the Next Five Years
........................................................................................................................................................27
Table 2.10. Overall Demand per Day per Product in Units for the Next Five Years. ..................27
Table 2.11. Epicurean’s Annual Share in the Overall Demand in Units for the Next Five Years 28
Table 2.12. Demand-Supply Ratio Based on Present and Forecasted Demand and Supply .........28
Table 2.13. Comparative presentation of competitor’s price range. .............................................32
Table 2.14. Computed average price floor and average price ceiling. .........................................33
Table 2.15. Changes in the prices of Malagos Chocolates; for the last two years, the prices
increased by 20%. ..........................................................................................................................34
Table 2.16. Computation of Advertising and Promotional Cost ...................................................51
Table 3.0. Summary of Epicurean’s Production Capacity .............................................................77
Table 3.1. List of Raw Materials with Corresponding Descriptions, Shelf Life, Prices, and
Suppliers ......................................................................................................................................110
Table 3.2 Water Rates Data .........................................................................................................110
Table 3.3. Computation of Estimated Monthly Water Bill ..........................................................110
Table 3.4. Computation of Total Estimated Monthly Electricity Bill .........................................110
LIST OF FIGURES
Figure 2.0. Market Positioning Map ..............................................................................................17
Figure 2.1. Products’ Packaging Layout ........................................................................................38
Figure 2.2. Social Media Account’s Layout ..................................................................................44
Figure 2.3. Promotional Poster Layouts ........................................................................................47
Figure 3.0. Suggested Arrangement of Items ................................................................................73
Figure 3.1 Day before opening day ...............................................................................................76
Figure 3.2 Regular Operating days ................................................................................................77
EPICUREAN | vii
Figure 3.3. Location Map...............................................................................................................78
Figure 3.4. Front View of Actual Location ....................................................................................78
Figure 3.5. Interior perspective of Actual Location ......................................................................79
Figure 3.6. Interior perspective of Actual Location ......................................................................79
Figure 3.7. Current Floor Plan of the building...............................................................................81
Figure 3.8. Epicurean’s Floor Plan ................................................................................................82
EPICUREAN | 1
CHAPTER I
SUMMARY OF THE PROJECT
A. Name of the Enterprise
The name of the enterprise will be Epicurean. Epicurean is rooted from the name of the ancient
philosopher, Epicurus. Epicurus advanced the philosophy Epicureanism, which teaches that the
greatest good is to seek modern pleasures in order to attain a state of tranquility, freedom from
fear, and absence from bodily pain. Epicurean as an adjective, means appreciation of good food
and drink. The proponents have chosen the name because Epicurean, as an enterprise, aims to serve
good food, drink, and service to its clientele.
Epicurean’s logo sports white chocolate bars which form the letters E and C. It symbolizes
Epicurean’s primary ingredient in all the food and drink that it will serve, which is chocolate. The
logo’s dominant color is brown which symbolizes the color of chocolates.
EPICUREAN | 2
B. Location
The proponents chose to establish Epicurean in a 150 sq.m. commercial space available
for lease situated at the ground floor of Fabie Building, Poblacion District, Davao City. It is located
in the downtown area – in front of UCCP Church’s Shalom Center, at the back of Gaisano South
Citimall, and few blocks away from Apo View Hotel and People’s Park.
The following are the factors considered in choosing the location. First, the initial capital
outlay in putting up the shop would be lesser. The cost of renovation and monthly rental fee would
be cheaper than the cost of buying a land and constructing a new building. Second, the shop would
be accessible to its customers since it would be situated in the downtown area where several
jeepneys pass. Lastly, the place would be conducive for study, business meetings, hang-out, and
the like because the location of the shop is not crowded nor busy.
C. Descriptive Definition of the Project
The project is proposed by a group of fifth year students of Ateneo de Davao University
enrolled in the course, Bachelor of Science in Accountancy. The proposition is due to the
proponent’s foreseen potential of establishing a chocolate house in Davao City i.e. the advantages
of entering an unsaturated industry.
Epicurean, the name of the business proposed, is a conceptual chocolate house in Davao
City that would be established through a contract of partnership. As a chocolate house, it will offer
products that have chocolate as the main ingredient such as chocolate cakes, cupcakes, cookies,
ice cream, and hot and cold chocolate drinks.
Epicurean would also adopt the concept of a patisserie which would have the products
displayed for easy selection. As a unique concept in Davao City, the business is expected to attract
college or senior high school students, young professionals, and other businessmen. Specifically,
the target market of Epicurean would be those with ages ranging between 15 and 34 and have an
income or allowance ranging between Php 1,001.00 and above.
In Davao City, there is only one known shop with the same concept with Epicurean i.e.
Chocolatier. However, the business would have many indirect competitors such as coffee shops
and pastry shops. The coffee shop industry, especially “homegrown” coffee shops, is continually
flourishing in Davao City (DavaoFoodTripper, 2014). Nonetheless, Epicurean, with something
EPICUREAN | 3
new to offer, is believed to have a huge potential of being a successful and profitable business
venture.
D. Long Range Objectives
Within ten years from its establishment, Epicurean aims to:
be widely known for its premium and quality product and service offering;
be a major player in the coffee and patisserie shop industry in Davao City;
create and maintain a loyal customer base;
be able to produce its chocolates (backward integration);
maintain if not increase a dominant market share despite potential entries of patisserie
shops in Davao City; and
have a considerable growth in Return on Assets of 20% per year.
E. Feasibility Criteria
Market
The main concern under this criterion is the capability of the business to introduce
itself to the market. This also concerns the determination of an existing demand for the
products offered by the business. This criterion determines the level of existing competition
in the same and related industries and the capacity of the business to compete.
Technical
Important considerations under technical feasibility are the availability of raw
materials needed for the production especially the seasonality of fruits to be used,
availability of technology relevant to Epicurean’s industry that are affordable and cost-
efficient, availability of spaces for Epicurean’s location, availability of manpower, and its
production capacity to meet demand.
Financial
The Internal Rate of Return (IRR), Net Present Value (NPV), and the Payback
Period are the measures that critically quantify the financial feasibility of the project. Ratios
such as liquidity, leverage and profitability are computed using the projected financial
statements prepared. These factors are affected by the (1) availability and mix of equity
EPICUREAN | 4
and debt sources of financing, (2) the computed Weighted Average Cost of Capital
(WACC) and (3) assumptions.
Socio-Economic
The primary considerations in this feasibility criteria are: how the project would be able
to help the people in the community, the government, and the economy of the country. In
line with this, specific activities are to be implemented to achieve the abovementioned
criterion.
Organization and Management
The primary considerations in choosing what type of organization and management
scheme to apply for Epicurean is the sufficiency of initial financing that it could provide to
the entity and how efficient and effective it will be in the implementation of the project. In
addition, the organizational chart used in the business, the policies and standards set are
also considered.
F. Highlights
History of the Project
The idea of a chocolate house emerged after the proponents read an online article
stating that in the present, one of the businesses with high potential for booming is a
chocolate house. The idea was then supported by the latest news about Malagos Chocolate
being awarded with Silver Awards in the 2015 International Chocolate Awards in
Germany. Given that Philippine chocolate is already internationally recognized as good
chocolate, the proponents were convinced of the great potential of establishing a chocolate
house.
The proponents then observed and researched on the popular chocolate houses in
Davao City and found only one which is Chocolatier. The said business is located at
Abreeza Mall, Davao City. The idea that the proponents had in mind for a chocolate house,
however, is in an independent location like most coffee shops and not attached to a mall
or any bigger entities. This made the idea unique and convinced the proponents to pursue
the project. Since there are no existing chocolate houses that positions itself the way the
proponents plan to position their conceptual chocolate house in terms of product
EPICUREAN | 5
presentation and offerings, the proponents pursued the project and named the conceptual
chocolate house, Epicurean.
Nature of the Industry
Description
A patisserie is a type of French or Belgian bakery that specializes in pastries
and sweets. Basically, a patisserie is a pastry shop with the distinction of its product
presentation.1 In Davao, the equivalent types of shop are coffee shops. The coffee and
pastry shop industries pose a tight competition in the market due to the many number
of shops littering the city.
Role in the economy
The Epicurean Chocolates belongs to the Hotel and Restaurant Industry. Based
on the census conducted by the Philippine Statistics Authority (PSA) on the year 2012,
the Restaurant and Mobile Food Service Activities, under the Hotel and Restaurant
Industry, garnered the highest number of establishments in the country which is
around 70% of the whole industry. With this, the Restaurant and Mobile Food Service
Activities give the highest percentage of employment and highest compensation to its
employees within its industry. It also ranked as the highest income earner and biggest
expenditure spender.
Products/product lines
A patisserie usually offers sweets such as cakes, cupcakes, cookies, pancakes,
ice cream, and hot and cold drinks. Epicurean will offer all of the mentioned products
with the exception of pancakes.
Problems Faced by the Industry
The chocolate house industry is not yet fully established in Davao City. Hence, it
faces the challenge of introduction to the market. There is no guarantee that businesses in
this industry would garner market acceptance. In addition, chocolate products are also
offered in most coffee and pastry shops which makes the industry prone to being
1 See Figure 3.0
EPICUREAN | 6
overmastered by the industry of coffee shops and pastry shops which are continually
thriving in Davao City.
Mode of Financing
Two modes of financing will be used. They are the following:
1. Long term borrowings from banks
2. Capital contributions from partners.
Specific capital structure is indicated in Chapter IV | Financial Aspect of this paper.
Investment Cost and Initial Working Capital
The project will be financed by the capital contributions of the partners and term
borrowings from local banks. The initial working capital will be used to pay for
Epicurean’s tax contributions and regulatory fees for partnership registration. These will
enable the business to operate and assure its customers that they are duly authorized to
open a patisserie.
Also, the initial investment will be used to fund the renovation of the store. It will
require a huge percentage of the initial investment. Moreover, in order for the store to
operate, it will require cash to fund its first two months of operation. These cash will come
from both the initial investment and the operation of the business for the first month.
G. Major Assumptions and Summary of Findings and Conclusion
Market
There is no data available about the historical demand level for Chocolate
Patisserie in Davao City. Hence, the current level of demand in Davao City for the
products offered by Epicurean is computed based on the survey conducted by the
proponents. There are 524 respondents of the survey with ages ranging from 15 to 34 years
old. The share of Epicurean in this overall demand is determined to be 5%. The projected
demand levels for all the products are at an increasing trend.
The projected data about the number of shops supplying similar products with
Epicurean shows no trend. This is made through moving average method.
EPICUREAN | 7
The target markets of the entity are senior high school and college students, and
young professionals with ages ranging from 15 to 34 years old having weekly allowance
or income of Php 1,001.00 or more. Chocolate, the main ingredient will be highlighted in
all of Epicureans products. The entity is a service-oriented establishment that provides
quality service to customers and offers chocolate products. The marketing strategy that
will be used to reach the market and secure a competitive position is mainly through the
use of Social Media namely Facebook, Twitter, and Instagram. Printed ads will also be
used by Epicurean for its advertising. The entity aims to attract customers and turn them
into patrons.
Technical
Raw materials of Epicurean needed for baking will come from Rafski Pastry and
Bakery Supplies. The chocolates that will be used as the main ingredient will also come
from the same supplier. Fruits that will be used as ingredients will come from the
Bankerohan wet market.
Orders for raw materials will be made every end of the week for the forecasted
demand of the next week. In cases where materials fall below critical level before the end
of the week, an order should be placed to replenish inventory levels enough for the
remaining days of the week. Shortages will be determined by checking the quantity of raw
materials in the storage room after every end of a work day. Product shelf life will also be
considered when buying raw materials.
Technology needed for Epicurean’s operation are primarily kitchen appliances and
tools such as ovens for baking, chillers for display of products, refrigerator for storage of
raw materials and other finished products not on display, freezer for ice cream display,
blenders for chocolate drinks, and other basic baking tools and equipment such as baking
pans, spatulas, and others.
Baked goods will undergo basic and specialized baking procedures. This process
will be done by the kitchen crews and the chef. Hot and cold chocolate drinks will undergo
heating, stirring, and blending by the front crews. Crews should always be courteous and
offer smiles to the clients.
EPICUREAN | 8
Epicurean’s staff will be composed of one chef, four kitchen crews, four front
crews/cashiers, and two shop cleaners. The chef will act as the store supervisor and in-
charge of the daily activities of the establishment as well as its employees.
Financial
Under financial feasibility, major assumptions include (1) all sales transactions are
made in cash, (2) purchases are made in cash and in credit, (3) sales are made evenly
throughout the year, (4) quantity of products sold increases by 2.3% per year based on
projected sales in the market study and (5) and an inflation rate of 4%.
Total capital requirements is P3,262,377.90. Paid-up capital of P660,000.00 will
be sourced from the partners on January 2017 which is 20% of the total capital
requirements. The remaining 80% amounting to P2,640,000.00 will be sourced out from
long-term debt.
For five years of operations, Epicurean has maintained a positive return. Payback
period is approximately 3 years and 5.25 months while return on equity for five years has
an average of 80.74%.
Socio-Economic
The main beneficiary of Epicurean will be the unemployed members of the
community. Epicurean targets to hire college students who are taking up Hotel and
Restaurant Management course and in need of financial help for their studies. Another
activity to help the community is distributing edible left-overs to beggars. Epicurean will
also provide additional revenue to the government through taxes. It will also promote the
locally produced chocolates.
Organization and Management
Epicurean’s form of business will be a partnership. Two partners will pool their
financial resources in order to realize the business. One partner will be a capitalist-
industrial partner and another will be a capitalist partner. They will share in the net profit
of the establishment in a 60:40 ratio with partner A receiving 60 and partner B receiving
40. They will hire a chef which will supervise the kitchen as well as other employees of
EPICUREAN | 9
the establishment such as the kitchen crews, front crews/cashier, and shop cleaner. The
Chef will then report to the partners. Also, policies will be established to manage the
business.
EPICUREAN | 10
CHAPTER II
MARKETING ASPECT
A. PRODUCT DESCRIPTION
Chocolate is one of the most famous desserts in the world. Every day, many people around
the world eat and crave for chocolate. The types of chocolate products made from cocoa bean
processing that will be used for our products are listed below.
Dark Chocolate: It is the type usually preferred when cooking because it has richer and
more intense flavor. The higher the cocoa solid content of a dark chocolate, the richer and more
intense the flavor you can get (Parragon, 2003). It has a minimum cocoa butter2 content of eighteen
percent (Notter, 2011).
Milk Chocolate: It is usually consumed as an ‘eating chocolate’ rather than used for
cooking. This is because of its creamy, mild, and sweet taste that the milk it contains produces. It
is used for decorations and when a recipe requires for a milder and creamier flavor (Parragon,
2003). Normally, it contains an estimate of 35% fat content. Its composition is 40% sugar, 30%
cocoa beans, 20% milk, and 10% extra cocoa butter (Notter, 2011).
White Chocolate: It is usually used to achieve color contrast when decorating cakes
(Parragon, 2003). It contains at least 20% cocoa butter and 14% milk solids. It also has 3.5% milk
fat and a maximum sugar content of 55% (Notter, 2011).
Chocolate Chips: They are usually used for baking and decorating. They are available in
dark, milk, and white variety (Parragon, 2003).
Cocoa Powder: It can be unsweetened and bitter in flavor or sweetened when mixed with
sugar. It is the powder residue after the cocoa butter has been pressed from the roasted and ground
cocoa beans. When cooking, unsweetened cocoa powder gives off a strong chocolate flavor
(Parragon, 2003).
Epicurean will make use of these types of chocolates to produce and serve a variety of
cakes, cupcakes, cookies, ice cream, hot and cold chocolate drinks.
As the leading producer of cacao in the world, the proponents will use Davao chocolates
in the store’s production. This is to increase Dabawenyo’s awareness about existing quality
chocolates in the region.
2 The natural fat present in cocoa beans. It is yielded by pressing the cocoa mass.
EPICUREAN | 11
The products offered will also be incorporated with fruits such as coconut, banana,
strawberry, durian, mango, and orange; nuts such as almond and pistachio; and other
complementary ingredients such as caramel, mocha, matcha, and whiskey.
As a service-oriented entity, Epicurean, will also offer quality customer service to its
customers. The staff will help the customers feel good about their day. From the moment a
customer enters the doors of the store to the time they will leave, Epicurean aims to give them a
comfortable dining experience. A heightened customer service is an important part in influencing
consumer decision whether to return or not.
B. MARKET DESCRIPTION
Epicurean’s general market will be the people of Davao and its tourists, since its location
will be in Pelayo Street, Poblacion District. As of 2010, Davao City has an estimated population
of 1.4 Million (Philippine Statistic Authority, 2013). It is ranked the 4th largest city in the
Philippines in terms of population (Worldatlas, n.d.). With regards to tourists, Davao City had
reached 680,000 visitors as counted by the Department of Tourism from accommodation
establishments in 2010 (Philippine Statistics Authority, 2012). This statistic shows that Davao City
can offer customers to current and potential establishments. Furthermore, the city has young
population. According to PSA, the median age of the population of the city is 24.0 years
(Philippine Statistic Authority, 2013). This suggests that the major customers of businesses in
Davao City will be in that age. Moreover, Davao City is a melting point of its neighboring cities
and municipalities. People from its neighboring cities and municipalities travel to Davao City to
work, to shop, and to do recreational activities.
Epicurean as a patisserie aims to attract college or senior high students, young professionals
and professionals. Due to this, the proponents decided to choose students, primarily senior high
and college students, young professionals and professionals with ages ranging between 15 – 34,
and have an income or allowance ranging between Php 1,001 and above as its target market. As to
the supply of student customers, Davao City provides a great number. Davao City has 20
College/Universities as per www.finduniversity.ph. The most popular colleges and universities in
Davao City are Ateneo de Davao University (AdDU), University of Southeastern Philippines
(USeP), Holy Cross of Davao College (HCDC), San Pedro College (SPC), University of Mindanao
(UM) and University of the Immaculate Conception (UIC). AdDU, SPC, and UIC are the schools
EPICUREAN | 12
which are in the high-tuition classification, with tuition ranging from Php 34,000 – 100,000 per
year. While HCDC, UM, and USeP are the schools which belongs to the low-tuition classification
with tuition ranging from Php 14,000 – 40,000 (Finduniversity.ph, n.d.). This data presents the
composition of students in Davao City in terms of allowance and buying power. Furthermore, the
result of the survey of the proponents shows that the usual student’s weekly allowance ranges from
Php 800 to Php 1000 and below Php 800. This represents 64.33% of the total students surveyed,
while the remaining 35.67% has an allowance of Php 1001 and above. This statistic shows that
most of the students have a low buying power. However, this statistic also shows that the 64.33%
is not the overwhelming majority thus allowing the proponents to implement a competitive pricing
strategy.
Davao City presents an impressive number of professional customers. According to the
article of Capon (2015), the employment rate of Davao Region remained stable at 94 percent in
April 2015 as per data from the Department of Labor and Employment (DOLE) 11. Furthermore,
based on the comparative employment status of the Davao Region for 2014 and 2015, employed
Dabawenyos reached 1,914 million of the 2,036 million total labor force. These employed
Dabawenyos are potential customers for every establishment and is a good indicator for businesses
like Epicurean.
As discussed earlier, Epicurean will serve pastries and sweets in Davao City. Consequently,
its major competitors would be pastry shops and coffee shops. In Davao City, pastry shops and
coffee shops are everywhere. Thus, the proponents decided that the point of comparison will be
Maitre Chocolatier, Starbucks, Green Coffee, Lachi’s Sans Rival Atbp. and Dulce Vida as these
are the shops that owns the bigger share of the market. First, Starbucks, a known international
coffee shop with international experience and popular name. Next, Green Coffee, a local coffee
shop which has a vast experience in the Davao City market due to its long years of existence in
the city. Another is Lachi’s San Rival Atbp, a known pastry shop in Davao City which offers cakes
at a low price. Finally, Dulce Vida, a sister shop of Tiny Kitchen, is a pastry shop which offers
premium cakes and delicacies. Despite of the advantages these shops have, the proponents believe
that Epicurean will have an edge against these competitors. According to Chef San Jose, in our
interview, a patisserie is a higher form of pastry of shop and currently there is no patisserie in
Davao City. This distinguishing feature would serve as a competitive advantage to Epicurean
because it would provide a first-mover advantage to the company.
EPICUREAN | 13
C. SUPPLY
Since Epicurean Chocolates (EC) is a type of business that is not yet common in Davao
City, we considered pastry shops and coffee shops as our competitors since these businesses offer
products similar in nature and could be substitutes to Epicurean’s products (e.g. cakes and other
pastries).
Presented below is the number of pastry and coffee shops (in total) which were able to
supply products (such as cakes, ice cream, chocolate drinks, etc.) to the Davao market for the past
five years.
Table 2.0. Number of Pastry and Coffee Shops in Davao City for the past five years
Using the average method of forecasting, we projected the probable number of pastry and
coffee shops in Davao for the next five years, presented below.
Pastry Shops Coffee Shops
2016 1 170
2017 1 171
2018 1 172
2019 1 171
2020 1 171 Table 2.1. Projected number of Pastry and Coffee Shops in Davao City for the next five years
As presented above, supply changes every year, with its number increasing and decreasing
from year to year. These fluctuations, however, do not follow a pattern; hence, the proponents
believe that the average method of forecasting is the most appropriate method in projecting the
supply for the next five years.
Among these establishments currently present in Davao City, the proponents identified five
businesses that they considered as major competitors of Epicurean. These are the following:
Maitre Chocolatier
Maitre Chocolatier is the first boutique cafe in the Philippines which offers a wide array of
High Quality, well known European Chocolate Brands. It has three branches – Manila, Cebu, and
Davao – and one of its branches is located in G/F, Abreeza Mall, J.P. Laurel Avenue, Bajada,
Davao City. The products the store serve to its clients include salads, sandwiches, soup, pasta, rice
Pastry Shops Coffee Shops
2011 2 164
2012 1 164
2013 1 169
2014 1 167
2015 1 175
EPICUREAN | 14
meals, desserts, cakes, drinks, and cocktails, all complemented with chocolates. Aside from
gourmet dishes and desserts, the store also offers chocolate gift baskets and bouquets to its
customers. The proponents considered this as a major competitor since Epicurean would offer
chocolates products, most likely similar to what Maitre Chocolatier offers.
Starbucks
Starbucks is an American coffeehouse chain. Its product offerings include pastries and
sandwiches, and coffee-based, tea, and juice drinks. Currently, it has three branches in Davao City
which have the following locations: (1) Abreeza Mall, J.P Laurel Avenue, (2) SM City, Ecoland,
Matina, Quimpo Boulevard, and (3) SM Lanang Premier, Lanang. The proponents considered
Starbucks as a major competitor since it offers products similar in nature to Epicurean’s products
(pastries, drinks), hence, could be substitutes to chocolate products.
Green Coffee
Green Coffee is a local coffee shop. Like Starbucks, its range of products include pastries
and pasta, and coffee-based, tea, and juice drinks. Currently, it has four branches: three of which
is in Davao City, located in the following areas: (1) F. Torres St., Poblacion District, (2) J.P. Laurel
Avenue, Bajada St., and (3) Ruby St., Marfori Heights; and one branch located along Apokon
Road, Tagum City. The proponents considered Green Coffee as one of the major competitors since
it offers products similar to Epicurean’s and could be considered substitutes to Epicurean’s
chocolate-based products.
Lachi’s Sans Rival Atbp.
Lachi’s Sans Rival Atbp. is a local dessert shop. Aside from the wide variety of pastries it
offers – particularly cakes – the store also offers sandwiches, rice meals, and pasta to its customers.
It has a single branch, located in Ruby St., Marfori Heights, Davao City. This store is considered
as a major competitor of Epicurean since it serves products similar to what Epicurean would be
offering (e.g. pastries and etc.)
Dulce Vida
Dulce Vida is a local dessert shop in Davao City. Aside from cakes and a variety of pastries,
the shop also offers pasta, rice meals, sandwiches, and coffee to its customers. This shop is located
at Tulip Drive Extension, Ecoland Subd., Matina, Davao City. The store also has a branch in Torres
St., Davao City under Tiny Kitchen’s management. The group considered Dulce Vida as a major
EPICUREAN | 15
competitor because of the products it offers, such as pastries, which would also be offered by
Epicurean.
Provided below are SWOT Analyses of Epicurean’s major competitors:
Strengths – Weaknesses
Strengths Weaknesses
Maitre Chocolatier
S1. Wide range of product
offerings
S2. First mover
W1. Popularity is not well
established
W2. Lack of advertisement
W3. Traditional Store Aesthetics
Starbucks
S1. The most well recognized
coffee brand internationally
S2. High quality products
S3. Established name in the
international market
S4. Competitive product prices
W1. Standardized products:
cultural differences
worldwide are not
considered
W2. Lacks product
differentiation
Green Coffee
S1. Established name in the
local market
S2. 24/7 service
S3. Established customer
loyalty: Green coffee is
considered a study hub by
most college students and
preferred among coffee
shops
S4. High quality products
S5. Competitive product prices
W1. Lacks product
differentiation
Lachi’s Sans Rival
Atbp.
S1. Established name in the
local market (Goodwill)
S2. Product variety
S3. Proper maximization of
their labor force
S4. Affordable product prices
W1. Very small and congested
store place: the place is
small to cater the number of
customers they have daily
W2. Lack some important
amenities such as comfort
rooms.
Dulce Vida
S1. Established name in the
local market
S2. High quality products
S3. Product variety
W1. Very small store place: the
store could only cater a
small number of customers.
EPICUREAN | 16
Opportunities Threats
Maitre Chocolatier
O1. One of its kind in Davao,
hence, they can monopolize
the market
O2. Davao’s increasing interest
in premium shops
O3. Increasing number of
suppliers i.e. cacao farms
T1. New entrants
Starbucks
O1. Strong brand image as
compared to other coffee
shops
T1. High and growing
competition within the
coffee industry
T2. Dependency in coffee price
fluctuations
Green Coffee
O1. Davao’s increasing interest
in premium shops
T1. High and growing
competition within the
coffee industry
T2. Dependency in coffee price
fluctuations
Lachi’s Sans Rival
Atbp.
O1. Store expansion: the store
could opt to expand to cater
its high number of
customers
O2. Davao’s increasing interest
in new products: venture to
new products
T1. High and increasing number
of competitors (both direct
and indirect)
Dulce Vida
O1. Increasing trend in desserts
and pastries
O2. Increasing interest for
premium products in Davao
T1. New entrants in the industry
T2. High number of competitors
in the market (both direct
and indirect)
EPICUREAN | 17
Figure 2.0. Market Positioning Map
Legend:
X Axis: Price
Y Axis: Quality
High Price: X > 130
Low Price: X < 130
High Quality: Frequently Visited by Customers
Low Quality: Not Frequently Visited by Customers
As presented by the market position map above, we position Epicurean in the first quadrant
(High Price, High Quality). We want to establish Epicurean as a Premium Chocolate Shop,
offering varied chocolate-inspired food products with prices competitive to that of the industry.
EPICUREAN
Dulce Vida
Lachi’s Sans Rival Atbp. Green Coffee
Starbucks
Maitre Chocolatier
Low Price High Price
High Quality
Low Quality
EPICUREAN | 18
DEMAND
I. Current Demand
Due to the lack of availability of historical data to determine the overall demand for
the products offered by Epicurean, a survey has been made to 524 respondents. The number
of respondents is 140 more than the recommended sample size by the Sample Size
Calculator. They are composed of randomly selected students and young professionals
aging from 15 to 34 years old in Davao City.
The following factors are taken into consideration in computing for the demand:
1. Health Issues Regarding Chocolate Products
There are people who cannot eat products with chocolates due to their health
implications. Some of these implications may be allergies and tonsillitis among
others. Those whose bodies react negatively to chocolates are those that are least
likely to buy the products involving chocolates.
2. Customer Preference
Varying human preferences challenge businesses to be able to increase
demand. The idea behind this is to find the group of people sharing the same
preferences that the business wants to cater. For a concept like a chocolate house,
only those who like the idea would possibly go in that place. If the chocolate house
offers chocolate cakes but not chocolate ice creams, only those preferring cakes
among those that like the idea of a chocolate house would determine the possible
customers of the chocolate house.
3. Frequency of Patronage and/or Consumption
The number of times a person consumes a product certainly affects the
product’s demand. The more a person consumes it in a day for example increases
the demand for that product in a day as well.
4. Income or Allowance
A person’s income and/or allowance would define that person’s capacity to
purchase the products available.
After taking into consideration the factors stated, a formula was derived to estimate
the overall demand of the products offered by Epicurean in Davao City. The procedure in
arriving at the estimated demand is as follows:
EPICUREAN | 19
1. Determining the Percentage of Prospective Customers of a Chocolate House (X)
Formula:
X = (p-e) hli
Where:
X = Prospective customers of a chocolate house in percentage
p = Survey population in percentage
e = Margin of error in percentage
h = Percentage of respondents who do not have health issues with
chocolate products
l = Weighted percentage of respondents’ preference to go to a
chocolate house
i = Percentage of respondents’ whose weekly income or allowance
is P1001 or more
Application:
Before applying the formula, the following variables to the formula
are obtained first:
1. PERCENTAGE OF RESPONDENTS WHO DO NOT HAVE HEALTH
ISSUES WITH CHOCOLATE PRODUCTS (h):
Response Number of Respondents
Yes 29
No 495
TOTAL 524
Table 2.2. Respondent’s Response on Whether They Have Health Issues with
Chocolate Products
h = No. of Respondents with No Health Issues with Chocolate Products / Total
Respondents
= 495/524
= 94.46%
EPICUREAN | 20
2. WEIGHTED PERCENTAGE OF RESPONDENTS’ PREFERENCE TO
GO TO A CHOCOLATE HOUSE (l):
Table 2.3. Weighted Number of Responses for Respondents’ Preference to Go to a
Chocolate House
l = Weighted No. of Responses / Total Respondents
= 286.50 / 524
= 54.67%
3. PERCENTAGE OF RESPONDENTS’ WHOSE INCOME OR
ALLOWANCE IS MORE THAN P1000
Based on the survey, 185 out of 524 respondents have income or
allowance of P1001 or more. This is 35.31% of the sample population.
4. MARGIN OF ERROR (e):
e = z ∗ √𝜌(1 − 𝜌)
n
where:
e = margin of error
z*= value at 95% level of confidence (from table of Z*-values of
Selected Confidence Levels)
𝜌 = hli = sample portion
n = sample size
No. of
Responses
Assigned
Weight
Weighted No. of
Responses
Very Likely 223 1 223
Somewhat Likely 160 0.50 80
Neutral 122 0 0
Somewhat Unlikely 5 -0.50 -2.50
Very Unlikely 14 -1 -14
TOTAL 524 286.50
EPICUREAN | 21
Computation:
e = 1.96 ∗ √[(0.9446 𝑋 0.5467 𝑋 0.3531)][1 − (0.9446 𝑋 0.5467 𝑋 0.3531)]
524
e = 0.0331 ≈ 3%
Hence,
X = (100% - 3%)(94.46%)(54.67%)(35.31%)
= 17.69%
The result shows that 17.69% of the sample constitutes the potential
customers of chocolate house.
2. Solving the Target Market (per Week) in the Population (n)
Target Market (n) represents the group that the business would be aimed.
The target market for Epicurean is obtained by applying the percentage of
prospective customers to the actual population and the product to be defined by the
frequency of going to a chocolate house.
Formula:
n = N x ( X ) x F
where
n = Target market
N = Actual population
X = Percentage of prospective customers of chocolate house
F = Frequency of going to a chocolate house
The following variables to the formula are obtained first:
1. ACTUAL POPULATION (N):
According to results of 2010 Census of Population and Housing,
Davao City has a total population of 1,449,296 with household population
EPICUREAN | 22
of 1,443,890. Out of that, the household population of people aging from 15
to 34 years old is 540,076.
Hence, N = 540,076.
2. FREQUENCY OF GOING TO A CHOCOLATE HOUSE (F):
Respondents
(in %)
Assigned Weight
F
Never 0.1145 0 0
Rarely 0.6546 0.125 0.0818
Regularly-Once a month 0.0496 0.25 0.0124
Regularly-Once a week 0.0897 1 0.0897
Regularly-More than once a
week 0.0916 2 0.1832
Table 2.4. Weighted Percentage of Frequency of Going to Chocolate House of
Respondents
Applying the formula target market (TM), the following are the results:
nRarely = 540,076 x 17.69% x 0.0818
= 7,815
nRegularly-OAM = 540,076 x 17.69% x 0.0124
= 1,185
nRegularly-OAW = 540,076 x 17.69% x 0.0897
= 8,570
nRegularly-MTOAW = 540,076 x 17.69% x 0.1832
= 17,503
nTotal = nRarely + nRegularly-OAM + negularly-OAW + nRegularly-MTOAW
EPICUREAN | 23
= 7,815 + 1,185 + 8,570 + 17,503
= 35,073
The total target market (per week) is 35,073.
3. Determining the Total Demand per Day per product in units (Q)
The formula for the total demand (Q) is:
Q = [(nq1-2times)/7](𝑓
7) + [(nq>2times)/7](
𝑓
7)
Where
Q = Daily demand per product
n = Target market
q1-2times = Percentage of respondents with “1-2 times" weekly
frequency of buying the product
q >2times = Percentage of respondents with “More than 2 times"
weekly frequency of buying the product
f = mean of range of frequency of consumption or minimum of
range of frequency of consumption
This formula is derived from Wiley’s demand formula, Q = nqp.
The following information are obtained for the application of the formula:
Table 2.5. Percentage of Respondents with Frequency of Buying of Products of 1-
2 times and More than 2 times Per Week
Respondents in %
(q1-2times)
Respondents in %
(q>2times)
Cake 53.05 3.63
Cupcake 45.61 7.25
Cookies 49.62 17.94
Ice Cream 59.73 20.23
Hot Chocolate Drink 50.19 19.85
Cold Chocolate Drink 47.71 17.37
EPICUREAN | 24
The total demand (Q) in units for each product per day is shown below. The units
of measure referred for the products are “slices” for cake, “servings” for cupcakes, cookies
and ice creams, and “glasses/cups” for hot and cold chocolate drinks.
Qcake = [(35,073 x 53.05%)/7][(1+2
2)/7] + [(35,073 x 3.63%)/7](3/7)
= 647 units
Qcupcake = [(35,073 x 45.61%)/7][(1+2
2)/7] + [(35,073 x 7.25%)/7](3/7)
= 645 units
Qcookies = [(35,073 x 49.62%)/7][(1+2
2)/7] + [(35,073 x 17.94%)/7](3/7)
= 918 units
Qice cream = [(35,073 x 59.73%)/7][(1+2
2)/7] + [(35,073 x 20.23%)/7](3/7)
= 1076 units
QHCD = [(35,073 x 50.19%)/7][(1+2
2)/7] + [(35,073 x 19.85%)/7](3/7)
= 965 units
QCCD = [(35,073 x 47.71%)/7][(1+2
2)/7] + [(35,073 x 17.37%)/7](3/7)
= 885 units
In tabular form, the computed overall daily and annual demand in Davao
City for each product offered by Epicurean is shown below.
Product
Computed Demand per
Day in units
(Q)
Annual
Demand
in units
(Q x 360)
Cake 647 232,920
Cupcake 645 232,200
Cookies 918 330,480
Ice Cream 1,076 387,360
Hot Chocolate Drink 965 347,400
Cold Chocolate Drink 885 318,600
Table 2.6. Computed Overall Daily and Annual Demand in Davao City for Each Product
Offered by Epicurean in Units
EPICUREAN | 25
To determine Epicurean’s share in the overall annual demand in Davao City, the
percentage of the market share of Epicurean is estimated through the table provided by
Food and Agriculture Organization of the United Nations (see Table 2.7) where ranges of
estimates are provided for every combination of the factors: number of other producers of
the product, size of competitors and product range.
All products offered by Epicurean belong to the same combination – “Many” other
producers, “Small” sizes of competitors, and “Similar (S)” product range. Thus, the market
share is estimated between 5-10% from which the proponents selected the smallest of the
range, 5%, as the estimate to be applied.
No. of other
producers
Many Few One None
Size of
competitors
Large Small Large Small Large Small
Product range S D S D S D S D S D S D
Market share (%) 0-2.5 0-5 5-10 10-15 0-2.5 5-10 10-15 20-30 0-5 10-15 30-50 40-80 100
Legend: S = similar products, D = dissimilar products Source: www.fao.org
Table 2.7. Estimates of market share for a new food business with different levels of competition
EPICUREAN | 26
Epicurean’s share on the overall annual demand in units per products is as shown
on the table below.
Product
Annual Demand
in units
(a)
Epicurean’s
Annual Share in the Demand
in units
(a x 5%)
Cake 232,920 11,646
Cupcake 232,200 11,610
Cookies 330,480 16,524
Ice Cream 387,360 19,368
Hot Chocolate Drink 347,400 17,370
Cold Chocolate Drink 318,600 15,930
Table 2.8. Epicurean’s Share in the Computed Overall Annual Demand in Davao City for Each Product in
Units
II. Five-year Demand Projection
The demand computed in Part 1 was for the current year, 2016. However, the
operations will start within the year 2017.
To project Epicurean’s share in the overall demand for the first five years of
operations, the same formula is used and with the following assumptions:
1. The actual population (N) is determined by multiplying the immediately
preceding year’s population with the average population growth rate of Davao City
for 2010-2015 of 2.30% and adding the product to the immediately preceding year’s
population;
2. All other percentages and variables are constant.
Given that the current population (N0) is 540,076, the projected populations for the
next five years (N1, N2, N3, N4 and N5) are computed as follow:
N0 = 540,076
N1 = (540,076 X 0.023) + 540,076 = 552,498
EPICUREAN | 27
N2 = (552,498 X 0.023) + 552,498 = 565,205
N3 = (565,205 X 0.023) + 565,205 = 578,205
N4 = (578,205 X 0.023) + 578,205 = 591,504
N5 = (591,504 X 0.023) + 591,504 = 605,109
Now that the populations for the next five years are determined, by applying the
same formula the overall daily and annual demands for the next five years can be computed.
Table 2.9. Computed Percentage of Prospective Customers of a Chocolate House and Target
Market per Week of the Current Year and the Next Five Years
The projection of total overall demand per day per product in units for the next
five years is shown on the table below.
2016 2017 2018 2019 2020 2021
Cake 647 662 677 693 709 725
Cupcake 645 660 675 691 707 723
Cookies 918 939 961 983 1,005 1,028
Ice Cream 1,076 1,100 1,126 1,152 1,178 1,205
Hot Chocolate
Drink 965 987 1,010 1,033 1,057 1,081
Cold Chocolate
Drink 885 906 926 948 970 992
Table 2.10. Overall Demand per Day per Product in Units for the Next Five Years
Percentage of Prospective
Customers of a Chocolate House
(X)
Target Market
(per Week) in the
Population
(n)
Current Year (Y0) 17.69% 35,073
Year 1 17.69% 35,879
Year 2 17.69% 36,705
Year 3 17.69% 37,549
Year 4 17.69% 38,412
Year 5 17.69% 39,295
EPICUREAN | 28
The overall annual demand for each product in units for the next five years is shown
below.
Table 2.11. Overall Annual Demand per Product in Units for the Next Five Years
Out of the computed overall demand of each product in Davao City for the next
five years, Epicurean’s annual share in the overall demand in units is computed.
2016 2017 2018 2019 2020 2021
Cake 11,646 11,916 12,186 12,474 12,762 13,050
Cupcake 11,610 11,880 12,150 12,438 12,726 13,014
Cookies 16,524 16,902 17,298 17,694 18,090 18,504
Ice Cream 19,368 19,800 20,268 20,736 21,204 21,690
Hot Chocolate
Drink 17,370 17,766 18,180 18,594 19,026 19,458
Cold Chocolate
Drink 15,930 16,308 16,668 17,064 17,460 17,856
Table 2.12. Epicurean’s Annual Share in the Overall Demand in Units for the Next Five Years
2016 2017 2018 2019 2020 2021
Cake 232,920 238,320 243,720 249,480 255,240 261,000
Cupcake 235,440 237,600 243,000 248,760 254,520 260,280
Cookies 330,480 338,040 345,960 353,880 361,800 370,080
Ice Cream 387,360 396,000 405,360 414,720 424,080 433,800
Hot Chocolate
Drink 347,400 355,320 363,600 371,880 380,520 389,160
Cold Chocolate
Drink 318,600 326,160 333,360 341,280 349,200 357,120
EPICUREAN | 29
Chart 2.0 Epicurean’s Annual Share in the Overall Demand for Cakes in Units for the Years 2016-
2021
Chart 2.1. Epicurean’s Annual Share in the Overall Demand for Cupcakes in Units for the Years
2016-2021
10,500
11,000
11,500
12,000
12,500
13,000
13,500
2016 2017 2018 2019 2020 2021
10,500
11,000
11,500
12,000
12,500
13,000
13,500
2016 2017 2018 2019 2020 2021
EPICUREAN | 30
Chart 2.2. Epicurean’s Annual Share in the Overall Demand for Cookies in Units for the Years
2016-2021
Chart 2.3. Epicurean’s Annual Share in the Overall Demand for Ice Cream
in Units for the Years 2016-2021
15,500
16,000
16,500
17,000
17,500
18,000
18,500
19,000
2016 2017 2018 2019 2020 2021
18,000
18,500
19,000
19,500
20,000
20,500
21,000
21,500
22,000
2016 2017 2018 2019 2020 2021
EPICUREAN | 31
Chart 2.4. Epicurean’s Annual Share in the Overall Demand for Hot Chocolate Drinks
in Units for the Years 2016-2021.
Chart 2.5. Epicurean’s Annual Share in the Overall Demand for Cold Chocolate Drinks
in Units for the Years 2016-2021
16,000
16,500
17,000
17,500
18,000
18,500
19,000
19,500
20,000
2016 2017 2018 2019 2020 2021
14,500
15,000
15,500
16,000
16,500
17,000
17,500
18,000
18,500
2016 2017 2018 2019 2020 2021
EPICUREAN | 32
D. PRICE STUDY
The researchers have decided to use competitive pricing as the pricing strategy of Epicurean.
This means that Epicurean will be setting its prices largely based on what the competition is
charging. As of the moment, the only direct competitor, in terms of concept, the group has
identified is Chocolatier. Both Epicurean and Chocolatier are essentially selling the same products
– chocolate-themed. For the indirect competitors, the researchers identified that coffee shops fit
the criteria of satisfying the same customer need Epicurean offers. In Davao City, the two widely
known coffee shops are Starbucks and Green Coffee. The group also identified Dulce Vida as a
competitor as it offers substitute products (in terms of pastries) for Epicurean.
Below is the comparison of competitors’ prices:
Chocolatier Starbucks
(with large size) Green Coffee
Espresso Beverages 100-170 70-140
Tea 100-160 160
Chocolate Drinks:
Hot 155-165 125-150 140
Cold 150-160 160-180 145-150
Frappuccino 135-190 130-160
Coffee-Free / Fruit Drinks 140-160 140-170
Freshly Brewed 100-120 90-125
Ice Cream
Cupcakes
Cakes (slice) 176-360 120 95-100
Wines / Cocktails 120-170
Products with chocolate:
Salad 115-188
Pizza and Sandwiches 186-168
Rice meals and Pasta 180-250
Snacks (panini, waffles,
crepe) 128-188
Table 2.13. Comparative presentation of competitor’s price range.
EPICUREAN | 33
Consideration in setting the price
1. Competitors Price Range
Since the group decided to use competitive pricing strategy, the first priority the researchers
consider in setting the price is the competitors’ price range. Computed average price floor and
price ceiling will bear a large percentage on price setting (see Table 2.14). However, it does
not necessarily mean that the price should not go above the price ceiling or go below the price
floor. The proponents will adjust the pricing if necessary.
Table 2.14. Computed average price floor and average price ceiling.
2. Product Cost
After considering the standing of the competitors and the demand of the consumers, it is
important that the selling price remains profitable. An increase in profit margin is possible if
the product is still inside the competitors’ price range and customers’ price range.
Price Setting
Step 1: Price = Cost + Profit margin
Step 2: Compare computed price to competitors’ price range.
Decide if acceptable or not.
Remedy.
Step 3: Final Price
Products Average Price Floor Average Price Ceiling
Chocolate Drinks 145 157.5
Frappuccino 132 165
Coffee-Free / Fruit Drinks 133 175
Cakes 130 193
Wines / Cocktails 120 170
Products with chocolate:
Salad 115 188
Pizza and Sandwiches 132 210
Rice meals and Pasta 180 250
EPICUREAN | 34
Factors Affecting Change in Selling Price
1. Cost
In fixing the price, Epicurean should consider the cost involved in producing and
selling its products. This includes the product costs and period costs. The substantial
increase and decrease of these costs affects the profitability of the company and arises
the need for change in selling price. Presented below are the changes in the prices of
Epicurean’s main ingredient, chocolates. The price of chocolates increased roughly by
20%.
Chocolate
Weight
YEAR 2014 YEAR 2016
Price per Php Price per Kilo Price per Php Price per Kilo
100-gram bar 120.00 - 150.00 -
504 grams 264.00 - 330.00 -
1000 grams 440.00 440.00 550.00 550.00
2000 grams 840.00 420.00 1050.00 525.00
750-gram block 336.00 448.00 420.00 560.00
1600-gram block 640.00 400.00 800.00 500.00
Table 2.15. Changes in the prices of Malagos Chocolates; for the last two years, the prices increased by
20%.
2. Availability of substitute / similar products
Availability of substitute products increases competition in the market. New
entrants in the industry may offer more innovative products or there may be a product
development by the existing competitors. In order for the company to remain
competitive, it should also make product innovations which may directly affect the
product pricing.
3. Change in predetermined objectives
Epicurean should consider the objectives of the firm in fixing its prices. For
example, if the firm plans to have an increase to its return, then it may charge a higher
price and if the firm plans to capture a large market share, then it may charge a lower
price. (Chand, n.d.)
EPICUREAN | 35
4. Image of the firm
The change of price of the product may also be determined on the basis of the image
of the firm in the market. In the long run, if Epicurean will be able to establish its name,
it can demand to increase its price as it enjoys goodwill in the market. (Chand, n.d.)
5. Economic Conditions
In establishing the price, the prevailing economic conditions should also be
considered. For instance, during period of prosperity, people are much willing to buy
because they have more money and so, marketers can take advantage of the price setting.
While during recession, consumers have lesser money to spend, and so, prices are also
expected to go down.
E. MARKETING PROGRAM
Marketing is a form of communication between the entity and its customers. It includes
advertising, selling and distributing the products to the people. Moreover, it can be conducted in
various types and techniques.
i. Marketing Practices of Major Competitors
1. Maitre Chocolatier Boutique and Cafe (Davao Branch)
Maitre Chocolatier makes use of social media advertising in promoting their
store. They have a Facebook account which they update from time to time. They are
also featured in different food blogs in Davao. They created a website, www.m-
chocolatier.com, which highlights the products they are selling.
2. Lachi’s Sans Rival Atbp.
Lachi’s rely mostly on word-of-mouth advertising. This advertising scheme
involves the customers of Lachi’s and their sharing of their dining experience in the
store. It is an effective marketing tool because people put more credibility on the
comments of their friends and acquaintances. Lachi’s incurs zero cost with this
advertising. Lachi’s also have a Facebook page.
EPICUREAN | 36
Lachi’s is also featured in food blogs and food reviews. When you search
Google for the top pastries in Davao, Lachi’s is usually on the list. Tourists mostly rely
on this method when they are looking for an establishment to visit.
3. Green Coffee
Green Coffee employs social media advertising in promoting their store and
their products. They have a Facebook page that they update once in a while. Word-of-
mouth advertising is also utilized by Green Coffee.
4. Starbucks
Starbucks uses social media advertising in promoting their store and their
products. They have a Facebook page that they update every now and then.
They publicize promos such as “Buy 1, Take 1” schemes and other creatively
thought gimmicks to spice up their customer relations. They also make use of word-of-
mouth advertising.
5. Dulce Vida Bakery + Resto
Dulce Vida rely on word-of-mouth advertising. They have a Facebook page,
although unofficial, in which customers may rate and leave a comment. They received
a 4.8 out of 5-star rating in Facebook. They rely on their customers as they post pictures
of their cakes which attracts new customers to try their products.
They are also advertised in different blogs which highlight their menu like the
davaofoodtrips.com and libotero.com.
ii. Proposed Marketing Program
1. Marketing Mix
PRODUCT STRATEGY
Epicurean will offer a mixture of product and service to its clientele. It will
serve chocolate products highlighting Davao chocolates. At the same time, it will
also offer quality customer service.
DISTRIBUTION STRATEGY
This strategy includes decisions about modes of transportation,
warehousing, inventory control, order processing, and selection of marketing
channels (Kurtz, 2012).
EPICUREAN | 37
Modes of transportation: Epicurean will make use of motor carriers for the
transportation of supplies. This is done because Epicurean’s suppliers will be
around Davao Region.
Warehousing: Epicurean’s warehouse will be located at the back of the
store3.
Inventory control: Epicurean applies the JIT (Just-in-Time) Inventory
control Strategy. Just-in-time (JIT) is an inventory strategy companies employ to
increase efficiency and decrease waste by receiving goods only as they are needed
in the production process, thereby reducing inventory costs. This method requires
the Epicurean Management to forecast demand accurately and timely to avoid
supplier dilemmas. (Kurtz, 2012).
This method will allow lowering the inventory costs and at the same time
ensuring that raw materials are available when needed.
Order processing: Orders from Epicurean to the suppliers will be made via
phone calls and through online. Other orders particularly for fruits will be made
directly in the stall of the supplier. Orders from consumers to Epicurean will be
made in the store premises where buyers order directly to the store staff.
Marketing channels: Epicurean will make use of direct selling. The
chocolate products will be made by Epicurean and will move directly to the
consumers of the products.
Packaging: The store highlights the premium quality of their products
through its packaging. They will use materials that are of high quality but with a
reasonable cost. (Please refer to the pictures in the next page to see how the products
are packaged)
3 See floor-plan.
EPICUREAN | 38
These cake boxes are
for take-out orders of
cake slices and other
pastries.
This is the standard-
size cake box for a
whole cake
Figure 2.1. Products’ Packaging Layout
EPICUREAN | 39
This smoothie cup is
used for take-out orders
of cold beverages. It is
served with a straw and
a cover.
This smoothie cup is
used for take-out orders
of Hot Beverages. It is
served with a cover.
Figure 2.1. Products’ Packaging Layout
EPICUREAN | 40
This cupcake box is
used for take-out orders
of cupcakes. A group of
six cupcakes is placed
inside and in a circular
holder for it to be held
safe while being
carried.
This paper bag is used
instead of plastic
cellophanes when
packaging take-out
orders.
Figure 2.1. Products’ Packaging Layout
EPICUREAN | 41
This pastry bag is used
when serving cookies.
Every package will be imprinted with this label highlighting the name, the address and
the contact number of Epicurean Chocolates.
Figure 2.1. Products’ Packaging Layout
EPICUREAN | 42
PROMOTION STRATEGY
Epicurean Chocolates will make use of Social Media Advertising
particularly Facebook, Twitter, and Instagram to promote the store. The store will
intensify their social media presence by incorporating promos such as a 50%
discount, Birthday Promos, Graduation Promos and etc.
PRICING STRATEGY
Epicurean Chocolates will apply the competitive pricing strategy.
Competitive pricing is setting a price in comparison with competitors. They will
base their prices on the prices of their major competitors. They may price lower,
equal or higher than their market opponents.
2. Marketing Goal
The proponents aim to make known Epicurean Chocolates to our target market
through effective and cost-efficient methods.
3. Marketing Objectives
Attract and encourage potential customers to go to the store and become
patrons.
Create a hype for the store.
Keep customers and potential customers up-to-date on the activities and promos
of the store.
Make the store trending in social media sites such as Facebook, Twitter and
Instagram.
4. Marketing Strategies
SOCIAL MEDIA ADVERTISING
Using social media as an advertising tool creates a high public relations
value for the store with little to no cost incurred. Today, the younger
generations, including students and young professionals, pore over their
gadgets scrolling through Facebook, Twitter, Instagram, Pinterest, and other
EPICUREAN | 43
social media sites. The proponents aim to use this to their advantage in creating
a hype for the store.
The proponents will make a Facebook page for the store and post
quirky, witty, and eye-catching posters in the page. They will also post Promos
that could attract customers such as Graduation Promos, Birthday Promos and
etc. The posters made should be consistent with the theme of the store. The
proponents aim to gather as much as 200,000 hits i.e. people reached, likes and
shares for every post made. The proponents will also make use of the app Social
Media Analytics to locate audience and viewers of the store’s Facebook page.
The proponents will also make a Twitter account where various witty
and quirky chocolate quotes will be posted. Posters that were posted in
Facebook will be posted in twitter as very to cover a larger scope of people.
The proponents will also make an Instagram account for the store.
Photos of cakes, other chocolate products, and Chef Specials will be regularly
posted here.
EPICUREAN | 44
Facebook Account (Desktop View)
Facebook Account
(Mobile View)
Figure 2.2. Social Media Account’s Layout
EPICUREAN | 45
Twitter Account (Desktop View)
Twitter Account
(Mobile View)
Figure 2.2. Social Media Account’s Layout
EPICUREAN | 46
Instagram Account (Desktop View)
Instagram Account
(Mobile View)
Figure 2.2. Social Media Account’s Layout
EPICUREAN | 47
Promotional Poster- Pre-Opening Poster
This poster will be posted 2 weeks before the opening of the store. This will give
customers a 50% discount for all cake purchases if they will like the store’s Facebook,
Twitter, and Instagram accounts. This strategy will give the store more attention and will
make customers get updated by any updates and announcements of the store through
Facebook, Twitter, and Instagram.
Figure 2.3. Promotional Poster Layouts
EPICUREAN | 48
Promotional Poster Sample 1.0: Birthday Promo
This Promo will allow customers who are celebrating their birthday to get 50%
discount if they are accompanied by at least 2 other paying customers. The celebrant must
present a valid ID or a birth certificate to be qualified for the discount.
Figure 2.3. Promotional Poster Layouts
EPICUREAN | 49
Promotional Poster Sample 2.0: Graduation Promo
This Promo will allow customers who have recently graduated to be given a 50%
percent discount on all products if they are accompanied by at least 2 other paying customers.
They must present their graduation photo or any evidence that they have graduated for the
recent year.
Figure 2.3. Promotional Poster Layouts
EPICUREAN | 50
PRINTED ADVERTISEMENTS
The proponents will be posting tarpaulins in different areas of Davao, most
especially in the downtown area so that the passersby would be aware of the store
and of its promos time to time. The proponents will produce at least 50 posters
annually.
5. Content Management Plan
Social Media Promotions
Time Frame Action
Two to three months before store
opening
Launch Social Media Page i.e. Facebook,
Twitter, and Instagram
Every two weeks after Social Media
Page launch
Post promotional posters i.e. what is the
store all about, opening date
One week before store opening Post promotional posters i.e. promos to be
offered on the opening date
Every month after store opening Post promotional posters i.e. promos and
sale during the month and on certain events
Printed Advertisements
Two to Three Months before the store
opening
Post tarpaulins within the Davao’s
downtown area, schools, and
establishments.
Every time the store has promos
Post tarpaulins highlighting the promos
near the areas where the bulk of its target
market stays specifically in the downtown
area.
EPICUREAN | 51
6. Advertising and Promotion Costs
Medium Unit Cost Total Annual Cost
Social Media PHP 165/ Boost Annual Number of Posts’
Boost: 50*
50 boost X PHP 165
=PHP 8,250
Tarpaulins PHP 10/ Square Feet Annual Number of
Tarpaulins: 50
50 Tarpaulins X 10 X 3 X 5
= PHP 7,500
TOTAL ANNUAL ADVERTISING COST PHP 15,750
Table 2.16. Computation of Advertising and Promotional Cost
*The number of boost (these are posts that will appear regularly in the news feed
allowing a better chance that people will see the post) will vary every year but a
maximum of 50 boosts is set by the proponents allowing 4-5 boosts monthly.
EPICUREAN | 52
CHAPTER III
TECHNICAL ASPECT
A. THE PRODUCT
Epicurean is a Chocolate Patisserie House located at Fabie Building, Pelayo Street,
Poblacion District, Davao City. It has an inviting atmosphere that will make customers feel
that they are in their own homes. It will also offer attentive and courteous service to its
clientele. It will be open for seven days a week from 10AM-10PM. The customer service policy
of Epicurean is to make sure that every customer will leave the store happy through serving
quality products and crew’s fast response to customer needs.
Epicurean will offer a variety of chocolate products to its clientele. The following are
the product lines of the store:
a) PRODUCT LINES
a.1. Cakes
Cake is an item of soft, sweet food made from a mixture of flour, eggs, sugar, and
other ingredients, baked and often decorated. Cakes can be moist, dense, small, or big. It
can be mixed with dried fruits and nuts or filled with fresh fruit and flavored creams.
Epicurean will offer the following cake products:
White Chocolate Mocha Mousse Mini
Cake
EPICUREAN | 53
Black Forest Mini Cake
Chocolate-Covered Strawberry Cake
Banana Bread Tiramisu Mini Cake
S’mores Mini Cheesecakes
EPICUREAN | 54
Triple Chocolate Mousse Mini Cake
Chocolate Whiskey Cake
Almond Joy Cake
Chocolate Espresso Bundt Cake with
Dark Chocolate Cinnamon Glaze
EPICUREAN | 56
Mango Mousse Cake
Salted Chocolate Caramel Ice Cream
Cake
Strawberry Chocolate Mousse
Mudslide Cake
EPICUREAN | 57
Triple Chocolate Cheesecake
Salted Caramel Milk Chocolate Cake
a.2. Ice Cream
Ice Cream is a sweet, frozen dessert typically made with milk and cream. Deriving
from its name, this cold treat is literally, iced cream. Ice creams are usually French-style or
Philadelphia-style (Arias, 2013). French-style ice cream means that ingredients, which
include egg yolks, are cooked until you have a thick custard before you freeze the mixture.
Philadelphia-style means that there are no eggs and cooking. Due to the egg yolks and
cooking process, French-style ice cream is richer, creamier, and smoother. Ice cream
sandwiches are two cookies with a scoop of ice cream in between.
Epicurean will offer the following ice cream products:
Matcha Avocado
EPICUREAN | 58
S’mores Waffle Sundae
Caramel Brownie
Chocolate Waffle Ice Cream Sandwiches
Chocolate Almond Coconut
EPICUREAN | 59
Blueberry and Coconut Ice Cream
Sandwich
Salted Caramel Chocolate
Grasshopper Ice Cream Sandwich
Boston Cream Pie
EPICUREAN | 60
a.3. Cupcakes
Cupcake is a variation of cake baked in cup-shaped tins. Cupcakes are bite-sized
and does not usually require plate and fork when served.
Epicurean will offer the following cupcake products:
Chocolate Espresso Cupcake
Salted Caramel Cupcake
Chocolate Pistachio Cupcake
EPICUREAN | 61
Matcha Cocoa Cupcake
Salted Caramel Chocolate Cupcake
Mint Chocolate Cupcake
Red Devil’s Food Cupcake
EPICUREAN | 62
Chocolate Sponge Cupcakes with
Chocolate Espresso Buttercream
Coffee Chocolate Cupcakes with
Bailey’s Irish Frosting
Espresso Fudge Cupcakes with
Chocolate Cream Cheese Icing
Chocolate Banana Cupcakes with Dulce
de Leche Filling
EPICUREAN | 63
Double chocolate Cupcakes with White
Chocolate Cream Cheese
Maple Buttercream and Bacon Cupcake
a.4. Hot Chocolate Drinks
Hot chocolate drinks are made from chocolates, milk, and hot water. It could be
added with sweeteners such as brown sugar, honey, or maple syrup if you want to
additional sweetness. Additional spices could be included in the mix to add texture to the
drink. Alcoholic beverages like whiskey or rum could also be added before serving.
Epicurean will offer the following hot chocolate products:
Chocolate Buttered Rum
EPICUREAN | 64
S’mores Hot Chocolate
White Chocolate
Melted Hot Chocolate with Sea Salt
Whipped Cream
Coconut Hot Chocolate
EPICUREAN | 65
Mocha Latte
a.5. Cold Chocolate Drinks
Similar with hot chocolate drink, cold chocolate drinks are usually made of
chocolate and milk. Chocolate drinks could be smoothies, shakes, lattes, or just plain milk
and melted chocolate mixed with cold water.
Epicurean will offer the following cold chocolate drink products:
Black Forest Smoothie
Chocolate Strawberry Smoothie
EPICUREAN | 66
White Chocolate Latte
Salted Caramel Mocha Smoothie
White Chocolate Mango Smoothie
Chocolate Avocado Smoothie
EPICUREAN | 67
a.6. Cookies
A cookie is a small, flat, sweet, baked good, usually containing flour, eggs, sugar,
and either butter, cooking oil or another oil or fat. It may include other ingredients such
as raisins, oats, chocolate chips or nuts.
Epicurean will offer the following cookie products:
Chocolate Peanut Butter Chip Cookies
Chocolate Sugar Cookies
Chocolate Orange Cookies
EPICUREAN | 69
Hot Chocolate Thumbprint
Salted Caramel Dark Chocolate
Cookies
White Chocolate Green Tea Cookies
White Chocolate Lemon Sugar Cookies
EPICUREAN | 70
B. PRODUCTION PROCESS
As a patisserie, Epicurean would have various processes for each for its operation. In the
case of Epicurean, there are four major processes. Under each major processes are sub processes,
which are the activities under each major process. The major processes, together with its sub
processes, are explained in this section.
1. Order Processing
The first major process is the order processing. This major process would provide the
general procedure for processing a customer order. Under this major process are two sub
processes, the dine-in process and the take-out process. The dine-in process is illustrated in
Chart 3.0, which is shown below.
Customer
Counter
Cashier
Front
Crew (FC)
Customer
Shop
Cleaner
1. The customer picks his/her choice of food and gives it to the cashier.
1. The cashier takes the order.
2. The cashier asks the customer whether it would be dine-in or take-out.
3. The cashier repeats the order and confirms it with the customer.
4. The cashier takes the payment.
5. The cashier takes the name of the customer and writes it in both receipts.
6. The cashier gives the receipt to the customer and the other receipt to a front
crew.
1. A FC prepares the order.
2. After the FC finished preparing the order, the FC will look for the customer by
calling out the name that is in the receipt.
3. When the FC finds the customer he/she will check the details of the receipt
(e.g. name, and items ordered) and match it with his/her copy and if it match
the FC will give the order.
1. The customer receives the order and consumes it.
2. The shop cleaner cleans the table and arranges the chairs and gets the plates
and utensils after the customer leave.
EPICUREAN | 71
The chart above specifies the general procedures when processing a dine-in order.
There will be several exemptions that might happen between these procedures. Two sample
exemptions would be: first, the Front Crew finds a wrong customer. In this case the Front
Crew would just continue to find the right customer. But if the front crew cannot find the
customer, he/she will place the ordered items in the counter area until a customer asks for
such order. Second, the order received by the customer does not match what he/she ordered.
In this case, the front crew will attend to the concerned customer and replace or add items
that are inconsistent with receipt of the customer.
The next process will be the Take-out process. The Take-out process will be
illustrated by Chart 3.1 below.
The take-out process is similar to the dine-in process except that the front crew, in
preparing the order of the customer, places the order in a packaging and that the customer
does not consume the order in the shop. For this reason, the exemptions stated in the dine-
in process is also applicable in this process.
Customer
Counter
Cashier
Front
Crew (FC)
Customer
1. The customer picks his/her choice of food and gives it to the cashier.
1. The cashier takes the order.
2. The cashier asks the customer whether it would be dine-in or take-out.
3. The cashier repeats the order and confirms it with the customer.
4. The cashier takes the payment.
5. The cashier takes the name of the customer and writes it in both receipts.
6. The cashier gives the receipt to the customer and the other receipt to a front
crew.
1. A FC prepares the order and places it in the take-out package.
2. After the FC finished preparing the order, the FC will look for the customer by
calling out the name that is in the receipt.
3. When the FC finds the customer he/she will check the details of the receipt
(e.g. name, and items ordered) and match it with his/her copy and if it match
the FC will give the order.
1. The customer receives the order and leaves Epicurean.
EPICUREAN | 72
2. Production process
The second major process is the production process. Under this major process are
processes with regards to preparation of display items, preparation of short-order items,
and the dishwashing operation. First is the preparation of display items. In this sub process,
items in the counter chillers are checked, replenished and arranged. The general procedure
in this sub process is shown Chart 3.2 below.
The suggested arrangement of the items in the counter chillers is shown in Figure
3.0. It is suggested that the counter chillers must always be filled up with items so that the
customers will be attracted to the display. For this reason, any missing item in the counter
chiller will then make such item be listed in the list of item/s for replenishment.
The second sub process under this major process, is the short-order process. Under
this process the chef together with the kitchen crews, prepare a short-order item for either
dine-in or take-out. For this sub-process to start the order processing should first take place.
The general procedures in this sub-process is shown in chart 3.3 below
Kitchen
Crew (KC)
1. A KC checks the counter chillers for items to be replenished.
2. The KC then makes a list of item/s for replenishment.
3. The list will then be submitted to the chef.
Chef 1. The chef checks the list of item/s for replenishment and makes a list of
ingredients needed for preparation.
2. The list of ingredients needed for preparation is then given to a KC.
Kitchen
Crew (KC)
1. The KC/s gets the ingredients from the store room based on the list of
ingredients needed for preparation.
2. The KC/s arranges the ingredients in the kitchen ready for cooking/assembly.
Chef 1. The chef will assign tasks to the KCs and supervise their work.
2. After the items are prepared, the chef checks the quality of the items before
putting them in the counter chillers.
Kitchen
Crew (KC)
1. The KC/s arranges the checked items into the counter chillers for display.
EPICUREAN | 73
Order
Processing
Chef 1. The chef receives the order from the front crew.
2. The chef makes a list of ingredients needed for preparation then gives it to a
kitchen crew.
Kitchen
Crew (KC)
1. The KC/s gets the ingredients from the store room based on the list of
ingredients needed for preparation.
2. The KC/s arranges the ingredients in the kitchen ready for cooking/assembly.
Chef 1. The chef will assign tasks to the KCs and supervise their work.
2. After the short-order is/are prepared, the chef checks the quality of the items
before giving it to the front crew.
Front
Crew (FC)
1. The FC receives the short-ordered item then serves it to the customer.
Figure 3.0. Suggested Arrangement of Items Source:https://media-cdn.tripadvisor.com/media/photo-s/07/99/9a/fb/patisserie-vaniye.jpg
EPICUREAN | 74
Instead of the front crew, the chef, together with the kitchen crews are the ones that
will prepare the short-ordered items. In case of a take-out, it is also the chef and the kitchen
crew that packs the short-ordered items.
The last sub-process is the dishwashing operation. This sub-process deals with the
collecting of the used dishes and utensils, washing of the dishes and utensils, and arranging
of the dishes and utensils in the plate rack.
The process would first start when the cleaning crew takes in the used dishes and
utensils to the kitchen. After that, the kitchen crew takes the dishes and utensils and washes
them. Any left overs that are not edible are disposed accordingly and any leftovers that are
still edible are kept in the store room for distribution to the needy. Lastly, the washed dishes
and utensils are arranged in the plate rack.
3. Raw materials procurement process
The third major process is the raw materials procurement process. It has two sub-
processes namely, raw materials ordering and raw materials receipt process.
In the raw materials ordering sub-process, a kitchen crew makes a list of raw
materials to be ordered which in turn will be submitted to the industrial partner who will
contact the suppliers of each raw material. The general procedures of this sub-process is
presented in chart 3.4.
There is an instance where the industrial partner does not contact the suppliers and
vendors to order the raw materials. It is when fruits are purchased directly in the market by
the chef and the kitchen crew.
Kitchen
Crew (KC)
1. A KC checks the level of inventory of raw materials in the store room.
2. The KC then makes a list of raw materials that are in their critical level.
3. The list will then be submitted to the industrial partner.
1. The IP receives the list of raw materials submitted by the KC.
2. The IP then contacts suppliers and vendors to order the raw materials in the
list.
Industrial
Partner
(IP)
EPICUREAN | 75
Epicurean will have an authorized list of suppliers for each raw material. However,
in case the supplier runs out of the said raw material/s, the industrial partner will be
responsible in finding a new supplier. For fruits, there is no list of suppliers.
The second sub-process is the raw materials receipt process. Under this sub-process
both the industrial partner and the chef will look unto the raw materials delivered. The
industrial partner will be responsible in checking whether the prices and the quantity
ordered is the same with what was ordered. Meanwhile, the chef will be responsible in
checking the quality of the raw materials. The general procedures of this process are
presented in Chart 3.5 below.
4. Equipment and Shop Maintenance Processes
This major process entails the maintenance of the shop, its furniture, and
equipment. For the maintenance of the shop, a shop cleaner will be hired. This shop cleaner
will be responsible for maintaining the cleanliness of the shop at all times. This includes
collecting the used dishes and utensils and taking it inside the kitchen.
The kitchen crew and the chef will be responsible for the maintenance of the
kitchen. Before leaving the shop, the kitchen crew and the chef should make sure that every
tool that they used had already been cleaned. Through this, the life of the tools will be
prolonged.
1. The supplier delivers the raw materials with the corresponding prices and
quantities.
Chef 1. The chef checks the quality of the raw materials.
2. The approved raw materials are separated from the rejected raw materials.
Industrial
Partner
(IP)
1. The IP counts the approved raw materials and checks the prices for each raw
material.
2. The IP then computes the total amount due to the supplier and pays the
supplier accordingly.
Kitchen
Crew (KC)
1. The approved raw materials are then carried by a KC inside the store room.
2. The KC then arranges the raw materials in the store room according to their
type and qualities.
Supplier
EPICUREAN | 76
Lastly, for the maintenance of the various equipment, a quarterly maintenance will
be done by an outside professional. This is done to prolong the life of the equipment and
to make sure that the quality of the product will be consistent.
C. PRODUCTION SCHEME AND OPERATIONS
Epicurean will operate for seven days a week, from 10:00 AM – 10:00 PM. The proponents
came up with this operating days and hours through a survey of the target market.
Epicurean will use Lean production in producing its products. The proponents proposed
this type of production scheme due to the fact that most of the products of Epicurean have a short
shelf life or is best served when freshly made. Through this, Epicurean will reduce the cost of
spoilage and at the same time give the customers quality products.
In applying Lean production, Epicurean will use batch processing. For example, 5 cakes
will be made every time the number of such type of cake in the counter chiller drops to 5. Through
this, the equipment used for making such cake will be used efficiently and effectively.
This type of production scheme depends heavily on demand of the product because a
product will only be produced if a demand arises. This is due to the pull inventory control system
principle. The pull inventory control system begins with a customer's order, which would then
trigger the production of a product to fulfill the next order. With this strategy, companies only
make enough product to fulfill customer's orders (Hunt, n.d.).
To further explain the production scheme of Epicurean, the proponents prepared a daily
production Gantt chart.
Figure 3.1 Day before opening day
*Includes delivery time, receipt of raw materials, quality check of raw materials, storage of raw materials.
**Please refer to chart 3.0 in the Operation Processes discussion.
***Includes cleaning of the shop, finalizing the setup, making sure everything is ready for opening day.
EPICUREAN | 77
A.
B.
Figure 3.2 Regular Operating days- (a) Sunday (b) Monday - Saturday *Includes delivery time, receipt of raw materials, quality check of raw materials, storage of raw materials. **Please refer to Chart 3.0 in the Operation Processes discussion. ***Includes preprocessing of raw materials for the next day ****Includes cleaning of the shop, checking the whole shop and closing. The continuous replenishment of display items throughout the operating hours of
Epicurean represents the pull inventory system of Epicurean. Also, time is allocated for the
preparation of pre-processed raw materials to facilitate ease of preparation of display items for the
next day.
Production Capacity
Table. 3.0. Summary of Epicurean’s Production Capacity
The table above presents the production capacity of Epicurean. This amounts are computed
by factoring in the capacity of equipment, operation hours, average preparation time of each
product, and production mix. The table shows that Epicurean can produce well above what is
demanded. This means that capacity at the moment is not a constraint in achieving the demand.
Products Daily Capacity (in
units)
Monthly Capacity (in
units)
Yearly Capacity (in
units)
Cake 202 6,063 72,752
Cupcake 462 13,869 166,425
Cookies 2,860 85,814 1,029,762
Ice Cream 2,811 84,322 1,011,863
Hot Chocolate Drink 121 3,631 43,574
Cold Chocolate Drink 153 4,590 55,080
EPICUREAN | 78
D. PLANT LOCATION
The site is located at the ground floor of Fabie Building, Pelayo Street, Poblacion
District, Davao City. It is situated in front of UCCP Church’s Shalom Center, at the back
of Gaisano South Citimall, and few blocks away from Apo View Hotel and People’s Park.
Figure 3.3. Location Map
Figure 3.4. Current front view of actual location
EPICUREAN | 79
Figure 3.5. Current interior perspective of actual location
Figure 3.6: Current interior perspective of actual location
Choice of Location
The main factor considered in planning and selecting the site for the establishment
of a new chocolate patisserie house is the cost of constructing the establishment. Instead of
looking for a vacant lot to put up a new building, the proponents decided to rent a free
EPICUREAN | 80
space that can be renovated according to the layout design. In this way, the capital outlay
of putting up the chocolate house would be lesser.
Proximity to the downtown area was also put into consideration in choosing the
site. The location is near to the universities and other working establishments in the city.
The site is very accessible since there are several jeepney routes passing by Pelayo Street.
To reach the site, students and young professionals can take a short ride from their
respective schools and offices.
Also, the proponents chose the location because of its surroundings. The area
around the rental space allows it to be conducive for study, hang-out, and the like. This is
because the street where the space is located is not busy nor crowded.
E. ESTABLISHMENT LAYOUT
Floor Plan
The Floor plan for Epicurean is Presented in the next 2 Pages.
EPICUREAN | 83
F. MACHINERY AND EQUIPMENT
The following are the machineries and equipment needed in the operation of Epicurean:
Basic Tools
Particulars Image Supplier Qty Unit Price Cost
1. Bowls
Baketech
Bakery
Equipment
and Stainless
Fabrication
5 pc 270 1,350
2. Cooling
Racks
Baketech
Bakery
Equipment
and Stainless
Fabrication
5 pc 650 3,250
3. Knives
Baketech
Bakery
Equipment
and Stainless
Fabrication
1 Set 879 879
4. Spatulas and
Pastry Brush
Baketech
Bakery
Equipment
and Stainless
Fabrication
2 set 809 1,618
EPICUREAN | 84
5. Rolling Pins
Baketech
Bakery
Equipment
and Stainless
Fabrication
3
701 2,103
6. Ruler
Baketech
Bakery
Equipment
and Stainless
Fabrication
3
20 60
7. Scissors
Baketech
Bakery
Equipment
and Stainless
Fabrication
3
40 120
8. Sifter and
Strainers
Baketech
Bakery
Equipment
and Stainless
Fabrication
3
745 2,235
9. Timers
Baketech
Bakery
Equipment
and Stainless
Fabrication
1
415 415
10. Peeler
Baketech
Bakery
Equipment
and Stainless
Fabrication
2
926 1,852
EPICUREAN | 85
11. Whisk
Baketech
Bakery
Equipment
and Stainless
Fabrication
3
180 540
12. Wooden
Spoons
Baketech
Bakery
Equipment
and Stainless
Fabrication
3
315 945
13. Zester
Baketech
Bakery
Equipment
and Stainless
Fabrication
2
453 906
14. Cake
Decorating Kit
Baketech
Bakery
Equipment
and Stainless
Fabrication
1 187.5 187.5
15. Heat
Resistant
Gloves
Baketech
Bakery
Equipment
and Stainless
Fabrication
3 350 1,050
16. Icing
Smoother
Baketech
Bakery
Equipment
and Stainless
Fabrication
2 736
1,472
Total 18,982.50
EPICUREAN | 86
Measuring Utensils
Particulars Image Supplier Qty Unit Price Cost
1. Measuring Cups and
Spoons
Baketech
Bakery
Equipment
and
Stainless
Fabrication
1
999
999
2. Weighing Scales
Baketech
Bakery
Equipment
and
Stainless
Fabrication
1
586 586
3. Measuring Jug
Baketech
Bakery
Equipment
and
Stainless
Fabrication
3 99.75
299.25
Total 1,884.25
Mixing Tools
Particulars Image Supplier Qty Unit Price Cost
1. Hand-Held Mixer
Baketech
Bakery
Equipment
and
Stainless
Fabrication
1
1,329 1,329
EPICUREAN | 87
2. Electric Stand Mixer
(10 quarts/ 2 kg)
Baketech
Bakery
Equipment
and
Stainless
Fabrication
1
23,000 23,000
Total 24,329
Specialty Tools
Particulars Image Supplier Qty Unit Price Cost
1. Ice Cream Scoop
Baketech
Bakery
Equipment
and
Stainless
Fabrication
2
1,019 2,038
2. Cake-decorating
Turntable
Baketech
Bakery
Equipment
and
Stainless
Fabrication
3
1,131 3,393
3. Cherry Pitter
SM
Ecoland
1
894 894
EPICUREAN | 88
4.Electric Coffee
Grinder
SM
Ecoland
1
2,680 2,680
5. Cream Butter
Whipper Foam Maker
SM
Ecoland
1 1,417 1,417
Total 10,422
Baking Pans
Particulars Image Supplier Qty Unit Price Cost
1. Baking Sheets / Cookie
Sheets
Baketech
Bakery
Equipment
and
Stainless
Fabrication
5
380 1,900
2. Cake Pans
Baketech
Bakery
Equipment
and
Stainless
Fabrication
8
696 5,568
3. Bundt Cake pan
Baketech
Bakery
Equipment
and
Stainless
Fabrication
3
1,084 3,252
4. Cup Cake Pans
Baketech
Bakery
4 57 228
EPICUREAN | 89
Equipment
and
Stainless
Fabrication
Total 10,948
Kitchen Supplies
Particulars Supplier Qty Unit Price Cost
1. Aluminum Foil Baketech
Bakery
Equipment
and
Stainless
Fabrication
10 Roll 105 1050
2. Cardboard Cake Rounds 100 Pc 20 2,000
3. Non-stick Pan Liners 100 pc 5 500
4. Parchment Paper 10 Roll 140 1,400
5. Plastic Wrap 10 Roll 150 1,500
8. Waxed Paper 10 Roll 150 1,500
Total 7950
Utensils
Particulars Supplier Qty Unit Price Cost
1. Spoon
SM
Ecoland
70 Pc 40 2,800
2. Fork 70 Pc 40 2,800
3. Table Knife 70 Pc 50 3,500
4. Glass 70 pc 60 4,200
5. Tall Glass 50 pc 60 3,000
5. Cup and Saucer 40 pc 95 3,800
6. Mug 40 pc 80 3,200
7. Plate 100 pc 70 7,000
8. Bowl 50 pc 40 2,000
Total
32.300
Office Supplies
Particulars Supplier Quantity Unit Price Cost
1. Short and Long Bond Paper
RicStar
Enterprises
3 rim 200 600
2. Filing steel Cabinet 2 pc 2800 5,600
3. Ballpen 10 pc 7 70
4. Stapler 2 pc 120 240
EPICUREAN | 90
5. Tape Dispenser 2 pc 160 320
6.Puncher 2 pc 200 400
Total 7,230
Furniture and Fixtures
Particulars Image Supplier Qty Unit Price Cost
Table Set
2 seaters
Coffee Table Set
M.Tanoy
Concepts
5 set
6,500 39,000
Wooden Dining
Table
M.Tanoy
Concepts
5 Set (1
chair
and
Table)
5980 29,900
4 seaters
Mariel Dining Set
M.Tanoy
Concepts
3 set 6,000 18,000
Sofa
Loveseat Sofa
M.Tanoy
Concepts
1 pc 10,500 10,500
Angelica Sofa
M.Tanoy
Concepts
2 pc 19,000 38,000
EPICUREAN | 91
Table
Coffee Table
M.Tanoy
Concepts
1 pc 4,500
4,500
Georgia Coffee
Table
M.Tanoy
Concepts
1 pc 6500 6500
Bar Stool
M.Tanoy
Concepts
8 pc 1,100 8,800
Wide Ceiling Light
Fixture (three 40
watts bulb)
M.Tanoy
Concepts
5 pc 4,000 20,000
Total 175,200
EPICUREAN | 92
Equipment
Particulars Image Specs Supplier Qty Unit Price Cost
1. Chillers
Curve glass
ref. cake case
Curved glass, four feet (4),
1200x810x1370mmH
, Danfoss SC15G,
385watts, R134a, Black
Marble, three (3) shelves
Brand: Maruko
Baketech
Bakery
Equipment
and
Stainless
Fabrication
2 pc 175,000 350,000
Glass Door
Merchandiser
22 cu.ft. Chiller
220V/210W
EER: 220
7-level electronic control
LCD temperature
display/Clean back design
Double glass door/ Fan-
cooled system
Internal lamp/Lighted
panel/Drain pan
6 adjustable coated wire
shelves
Baketech
Bakery
Equipment
and
Stainless
Fabrication
1 pc 74,548 74,548
2.Refrigerator
60 cubic feet model,
Combi-freezer/chiller
(-25 deg. and 0 to +15
deg.)1800x730x1950mmH,
Danfoss Compressor 850
watt, R404a,
1,520 liters, 220v/60Hz
Brand: Daiko
Merit
Stainless
Steel, J.P
Laurel
Avenue
1 pc 155,000 155,000
3. Stationary
Oven
Capacity: 12 trays
Gas powered Baketech
Bakery
Equipment
and
Stainless
Fabrication
1 pc 16,000 16,000
EPICUREAN | 93
4. Blender
Blades: High grade
stainless steel ever sharp
blades (2 IN 1 BLADES)
Control Panel Features:
Traditional / Work Top
Type
Design Feature: Radial
cooling fan and thermal
protection system
Motor: German original
motor technology
Pulse function for
crushing ice and solid
foods
Baketech
Bakery
Equipment
and
Stainless
Fabrication
2 pc 9,999 19,998
5. Rice
Cooker
Power Capacity: 220V
2-in-1 rice cooker and
Warmer
1.8-liter capacity
Equivalent to 10 full cups
of rice
Solid, durable glass cover
Merit
Stainless
Steel, J.P
Laurel
Avenue
1 Pc 1,399 1,399
6. Stove
Adjustable type switch,
strong fire,suit every kind
of cooking
The higher efficiency of
combustion,save time
and save gas
Imbedded stove,nice
shape,for embedded use
and can be platform use
Good quality firelighter,every durable and easy to
use
Merit
Stainless
Steel, J.P
Laurel
Avenue
1 pc 2,640 2,640
7. Spoon
Heater
4 holes
Baketech
Bakery
Equipment
and
Stainless
Fabrication
1 pc 8,500 8,500
EPICUREAN | 94
8. Freezer
25 cu.ft. curved glass
sliding door chest freezer
Capacity: 700 liters
LED internal Light
Temperature range: 4 to -
25°C
Adjustable
Temperature/Function:
Freezer to chiller
7 pcs. wire basket
Lock and keys
Merit
Stainless
Steel, J.P
Laurel
Avenue
1 pc 54,000 54,000
9. Work
Tables
Stainless
3feet x 6feet
Baketech
Bakery
Equipment
and
Stainless
Fabrication
1 Pc 19000 19,000
10. Sinks
Stainless
Single sink Baketech
Bakery
Equipment
and
Stainless
Fabrication
1 Pc 22,000 22,000
11. Chocolate
Fountain
Baketech
Bakery
Equipment
and
Stainless
Fabrication
1 Pc 1,950 1,950
Total 206,011
EPICUREAN | 95
Other Equipment
Particulars Specs Supplier Qty Unit Price Cost
1. Laptop Intel Core i5-6200u
2.3Ghz - 2.8Ghz / 3MB Cache
4 GB DDR3L 1600mhz Memory
Octagon,
Gaisano
mall of
Davao
Branch
1 Pc
27,510
27,510
2. Printer Color inkjet printer, copier, and
scanner
Octagon,
Gaisano
mall of
Davao
Branch
1 Pc 4,550 4,550
3. Telephone Phonebook
Memory: 1 redial memory
Gaisano
Mall of
Davao
Department
Store
1 Pc 699 699
4. Air conditioner
-Standing
-Split Type
-6.0HP Floor Standing Air
Conditioner
Non-Inverter
High Cooling Performance
Superior Air Distribution
1.5HP Split Type Air Conditioner
Non-Inverter
Inverter like savings
Turbo Function: fast room
cooling
Merit
Stainless
Steel, J.P
Laurel
Avenue
1
1
Pc
pc
93,795
28,299
93,795
28,299
5. Internet Router Interface:4 10/100Mbps LAN
Ports,1 10/100Mbps WAN Port
Button: WPS/Reset Button
External Power Supply:12VDC /
1A
Octagon,
Gaisano
mall of
Davao
Branch
1 Pc 6,308 6,308
6. Cash Register Freely programmable direct
keys for PLU's & Depts
Error correct, Void, Refund,
R/A & P/O
Internal Dot Matrix Printer
76mm w/manual cutter
Barcode Scanner
connectivity
Columbia
Business
Machines,
J.P. Laurel
Avenue
1 Pc 39,000 39,000
EPICUREAN | 96
128 flat keyboard
4mb RAM
7. Office Table -Material: MDF
-Colors available: Gray and Wenge
-Dimension: L46.1″ x W22.4″ x
H28.5″
Gaisano
Mall of
Davao
Department
Store
1 Pc 3,450 3,450
8. Office Chair Gaisano
Mall of
Davao
Department
Store
1 pc 2,400 2,400
Summary of Costs
G. BUILDING AND FACILITIES
The establishment is shaped like a capital letter “L” and has a total land area of one
hundred fifty square meters (150 sq.m.) located in a commercial building available for
lease. It also has a parking lot in front which occupants could freely use. Its monthly rental
fee is Php 100,000 with the terms of two-month advance and one-month security deposit.
The lessee is permitted by the owner to renovate the space.
The chocolate house has a homey ambiance where one area is themed like a dining
room, another like a living room and another like a study room. The counter has a design
like a kitchen where the products are displayed. At the back of the counter area is where
the kitchen and the dishwashing area are located which are connected to the storage room.
Particulars Amount
Basic Tools 18,982.50
Measuring Utensils 1,884.25
Mixing Tools 24,329.00
Specialty Tools 10,422.00
Baking Pans 10,948.00
Kitchen Supplies 7,950.00
Utensils 32,300.00
Office Supplies 7,230.00
Furniture and Fixtures 175,200.00
Equipment 725,035.00
Other Equipment 206,011.00
Grand Total 1,220,291.75
EPICUREAN | 97
It also has two comfort rooms, one for the customers and one for the personnel. There is
also one small office for administrative purposes.
ESTIMATED COST OF CONSTRUCTION
I.D. NO DESCRIPTION UNIT QTY UNIT COST TOTAL COST GRAND
TOTAL MATERIAL LABOR MATERIAL LABOR
GENERAL REQUIREMENTS
Mobilization/Temporary Structures, Utilities and Services/Demobilization / Standard Billboard /
Material Testing
lot 1.00 2,582.33 1,721.55 2,582.33 1,721.55 4,303.88
Safety and Health lot 1.00 4,303.88 0.00 4,303.88 0.00 4,303.88
Hauling cost lot 1.00 0.00 0.00 0.00 0.00 0.00
Sub-total 8,607.76
0.50 DEMOLITION WORKS
0.51 Removal of Flush Doors & Jambs sets 3.00 0.00 300.00 0.00
900.00
900.00
0.52 Removal of Sliding Glass Door and Fulll glass
partition
units 2.00 0.00 1,500.00 0.00
3,000.00
3,000.00
0.53 Demolition of existing counter units 2.00 0.00 2,000.00 0.00 4,000.00
4,000.00
0.54 Demolition of existing ceiling @ counter units 2.00 0.00 2,500.00 0.00
5,000.00
5,000.00
0.55 Demolition of wall for door provision sq.m. 4.20 0.00 800.00 0.00 3,360.00 3,360.00
0.56 Demolition of concrete floor for plumbing and
sanitary lines
lot 1.00 0.00 4,800.00 0.00
4,800.00
4,800.00
0.57 Demolition of floor tiles sq.m. 16.00 0.00 300.00 0.00 4,800.00 4,800.00
Sub-total 25,860.00
1.00 Earthworks
1.02 Structural Excavation cu.m 3.60 0.00 200.00 0.00 720.00 720.00
1.03 Backfilling and Compaction cu.m 2.16 0.00 150.00 0.00 324.00 324.00
1.04 Gravel Bedding G-1 cu.m 1.00 850.00 169.90 850.00 169.90 1,019.90
Sub-total 2,063.90
2.00 Concreting Works (3000 psi)
Wall Footng cu.m 1.42
2.01 Portland Cement bag 13.00 236.00 46.40 3,068.00 603.19 3,671.19
2.02 Crushed Gravel 3/4" cu.m 1.50 950.00 165.18 1,425.00 247.77 1,672.77
2.03 Washed Sand cu.m 0.75 850.00 141.92 637.50 106.44 743.94
Columns/Stiffiner cu.m 1.35
2.01 Portland Cement bag 13.00 236.00 46.40 3,068.00 603.19 3,671.19
2.02 Crushed Gravel 3/4" cu.m 1.50 950.00 165.18 1,425.00 247.77 1,672.77
2.03 Washed Sand cu.m 0.75 850.00 141.92 637.50 106.44 743.94
Beams cu.m 1.07
2.01 Portland Cement bag 10.00 236.00 46.40 2,360.00 463.99 2,823.99
2.02 Crushed Gravel 3/4" cu.m 1.25 950.00 165.18 1,187.50 206.47 1,393.97
2.03 Washed Sand cu.m 0.75 850.00 141.92 637.50 106.44 743.94
Slab on Grade cu.m 0.47
2.01 Portland Cement bag 5.00 236.00 46.40 1,180.00 232.00 1,412.00
2.05 Crushed Gravel 1" cu.m 0.50 950.00 141.58 475.00 70.79 545.79
2.03 Washed Sand cu.m 0.25 850.00 141.92 212.50 35.48 247.98
EPICUREAN | 98
Sub-total 19,343.45
3.00 Rebar Works
Wall footing kg 84.89
Columns/Stiffiner kg 60.36
Beams kg 130.19
Slab on Grade kg 0.00
3.01 Deformed Round Bars, Grade 40 kg 275.44 38.56 7.50 10,620.89 2,065.78 12,686.67
3.02 G.I. Tie Wire kg 6.00 55.00 9.00 330.00 54.00 384.00
Sub-total 13,070.67
4.00 Formworks
Columns/Stiffiner sq.m 8.40
4.01 Coco Lumber bd.ft 42.90 18.00 4.25 772.20 182.33 954.53
4.02 Plywood Ordinary, 1/4" x 4' x 8' pc 2.00 373.33 86.25 746.66 172.50 919.16
4.04 CWN, Assorted kg 1.00 55.00 15.00 55.00 15.00 70.00
Beams sq.m 14.23
4.01 Coco Lumber bd.ft 72.60 18.00 4.25 1,306.80 308.55 1,615.35
4.02 Plywood Ordinary, 1/4" x 4' x 8' pc 3.00 373.33 86.25 1,119.99 258.75 1,378.74
4.04 CWN, Assorted kg 2.00 55.00 15.00 110.00 30.00 140.00
Sub-total 5,077.78
5.00 Masonry Works
Masonry Wall sq.m 155.28
5.05 CHB 6" thk pc 1,941.00 12.50 2.64 24,262.50 5,124.24 29,386.74
5.02 Portland Cement bag 78.00 236.00 46.40 18,408.00 3,619.13 22,027.13
5.03 Washed Sand cu.m 7.00 850.00 141.92 5,950.00 993.42 6,943.42
5.06 10mm x 6m RSB kg 300.84 38.56 7.50 11,600.54 2,256.33 13,856.87
5.07 G.I. Tie Wire kg 7.00 55.00 9.00 385.00 63.00 448.00
Plastering sq.m 310.56
5.02 Portland Cement bag 103.00 236.00 46.40 24,308.00 4,779.11 29,087.11
5.03 Washed Sand cu.m 11.00 850.00 141.92 9,350.00 1,561.08 10,911.08
Sub-total 112,660.35
6.00 Doors and Windows
6.01 D-1, Flush Door 1.80m x 2.10m on 50mm x
150mm Wooden Jamb with keyed lever type lockset
set 1.00 7,500.00 1,500.00 7,500.00 1,500.00 9,000.00
6.02 D-2, Flush Door 0.80m x 2.10m on 50mm x 150mm Wooden Jamb with keyed lever type lockset
sq.m 4.00 4,500.00 900.00 18,000.00 3,600.00 21,600.00
6.03 D-3, Flush Door 0.90m x 2.10m on 50mm x
150mm Wooden Jamb with keyed lever type lockset
set 2.00 5,000.00 1,000.00 10,000.00 2,000.00 12,000.00
6.04 W -1, (2.6 x 1.83 m) Shutter Type Window
Jalousie Holder with Clear Glass Blades on Silver Colored Frame and Fixed Clear Glass Transom on
50 x 150 mm Wooden Jamb complete Accessories
set 2.00 4,667.50 592.61 9,335.00 1,185.21 10,520.21
Sub-total 53,120.21
9.00 Ceiling and Carpentry Works
Interior and Exterior Ceiling sq.m 147.13
9.17 Metal Carrying Channel (12mm x 38mm x 5m x .8mm thk
pc 28.00 125.00 61.38 3,500.00 1,718.64 5,218.64
EPICUREAN | 99
9.09 Fiber Cement Ceiling Board (4.5mm thk) pc 51.00 390.00 118.80 19,890.00 6,058.80 25,948.80
9.18 Metal Double Furring Channel (19mm x 50mm x 5mm x 0.5mm thk
pc 51.00 135.00 71.50 6,885.00 3,646.50 10,531.50
9.32 Wall Angle 1" x 1" x 10' pc 33.00 90.00 19.80 2,970.00
653.40
3,623.40
9.20 W Clip pc 236.00 5.00 1.50 1,180.00 354.00
1,534.00
9.21 Suspension Clip and Rod Joiner pc 121.00 135.00 40.50 16,335.00
4,900.50
21,235.50
9.26 Steel Angle pc 79.00 46.00 4.40 3,634.00 347.60
3,981.60
9.33 Suspension Rod #8 kg 133.00 30.00 31.90 3,990.00
4,242.70
8,232.70
8.37 Blind Rivets pc 495.00 1.35 0.27 668.25 133.65
801.90
9.16 Concrete Nail #3 kg 2.00 70.00 7.92 140.00
15.84
155.84
Sub-total 81,263.88
10.00 Electrical Works
Roughing-ins
10.01 Electrical Conduit uPVC, 15mmØ pc 40.00 50.00 10.00 2,000.00 400.00 2,400.00
10.06 RSC 20mmØ pc 1.00 112.50 22.50 112.50 22.50 135.00
10.34 Entrance Cap 20mm dia. pc 1.00 50.00 10.00 50.00 10.00 60.00
10.16 Junction Box, 4" x 4" G.I. pc 12.00 15.00 3.00 180.00 36.00 216.00
10.17 Utility Box, 2" x 4" G.I. pc 16.00 17.00 6.00 272.00 96.00 368.00
Wires & Fixtures
10.11 3.5 mm2 THW Wire, Stranded m 360.00 25.00 6.60 9,000.00 2,376.00 11,376.00
10.12 5.5 mm2 THW Wire, Stranded m 10.00 36.00 10.10 360.00 101.00 461.00
10.28 Duplex C.O. with Plate pc 12.00 263.80 52.76 3,165.60 633.12 3,798.72
10.25 2-Gang Switch with Plate pc 8.00 208.00 41.60 1,664.00 332.80 1,996.80
10.23 Single Switch with Plate pc 4.00 64.00 19.54 256.00 78.14 334.14
10.18 FL 2 x 36W Fluorescent Lighting Fixture (Box
Type - Surfaced Ceiling Mounted)
set 16.00 2,600.00 520.00 41,600.00 8,320.00 49,920.00
10.19 18W Compact Fluorescent Lighting Fixture with Medium keyless type Porcelain Receptacle (surfaced
Ceiling Mounted)
set 11.00 215.00 236.90 2,365.00 2,605.90 4,970.90
10.48 Panel Box, Flush Type, 4 Branches set 1.00 1,202.75 180.41 1,202.75 180.41 1,383.16
10.40 Circuit Breaker, 40A 2P set 3.00 310.00 62.60 930.00 187.80 1,117.80
10.38 Circuit Breaker, 20A 2P set 5.00 310.00 62.60 1,550.00 313.00 1,863.00
10.59 Wall Fan (Standard/Any Equivalent) set 10.00 1,500.00 150.00 15,000.00 1,500.00 16,500.00
10.58 Electrical Tape pc 6.00 37.50 5.63 225.00 33.75 258.75
Sub-total 97,159.28
13.00 Painting Works
Ceiling sq.m 133.17
13.18 Neutralizer gal 2.00 132.00 39.60 264.00 79.20 343.20
13.01 Latex, Flat gal 6.00 550.00 165.00 3,300.00 990.00 4,290.00
13.14 Masonry Putty gal 6.00 319.00 95.70 1,914.00 574.20 2,488.20
13.02 Latex, Semi Gloss gal 6.00 490.00 147.00 2,940.00 882.00 3,822.00
13.20 Acri Color qrt 2.00 165.00 49.50 330.00 99.00 429.00
Walls sq.m 240.91
13.18 Neutralizer gal 4.00 132.00 39.60 528.00 158.40 686.40
13.01 Latex, Flat gal 10.00 550.00 165.00 5,500.00 1,650.00 7,150.00
13.14 Masonry Putty gal 10.00 319.00 95.70 3,190.00 957.00 4,147.00
EPICUREAN | 100
13.02 Latex, Semi Gloss gal 10.00 490.00 147.00 4,900.00 1,470.00 6,370.00
13.20 Acri Color qrt 3.00 165.00 49.50 495.00 148.50 643.50
Wood surfaces sq.m 115.20
13.04 Enamel, Flatwall gal 6.00 525.00 157.50 3,150.00 945.00 4,095.00
13.15 Glazing Putty gal 6.00 492.00 147.60 2,952.00 885.60 3,837.60
13.05 Enamel, Semi Gloss gal 6.00 490.00 147.00 2,940.00 882.00 3,822.00
13.16 Paint Thinner gal 3.00 260.00 78.00 780.00 234.00 1,014.00
Steel Surfaces sq.m 100.00
13.12 Primer, Zinc Chromate gal 5.00 537.00 161.10 2,685.00 805.50 3,490.50
Sub-total 46,628.40
16.00 Tileworks
16.01 400mm x 400mm unglazed floor tiles pcs 217.00 61.00 18.30 13,237.00 3,971.10 17,208.10
16.02 200mm x 400mm unglazed floor tiles pcs 200.00 42.00 12.60 8,400.00 2,520.00 10,920.00
16.03 200mm x 400mm glazed wall tiles pcs 360.00 43.00 12.90 15,480.00 4,644.00 20,124.00
16.04 200mm x 200mm Tiles pcs 120.00 22.00 6.60 2,640.00 792.00 3,432.00
16.05 Tile adhesives bags 20.00 224.00 67.20 4,480.00 1,344.00 5,824.00
16.06 Tile grouts kg 6.00 68.00 20.40 408.00 122.40 530.40
Sub-total 58,038.50
Plumbing Works
Plumbing fixtures
Water closet unit 4.00 6,500.00 1,300.00 26,000.00 5,200.00 31,200.00
Lavatory unit 4.00 4,100.00 820.00 16,400.00 3,280.00 19,680.00
Urinal unit 2.00 3,800.00 760.00 7,600.00 1,520.00 9,120.00
Faucet set 2.00 320.00 64.00 640.00 128.00 768.00
Goose neck faucet set 8.00 380.00 76.00 3,040.00 608.00 3,648.00
Facial Mirror (.90m x 1.20m) set 3.00 2,000.00 400.00 6,000.00 1,200.00 7,200.00
Hand Dryer set 3.00 4,500.00 900.00 13,500.00 2,700.00 16,200.00
Kitchen sink set 3.00 6,000.00 1,200.00 18,000.00 3,600.00 21,600.00
Tissue holder set 3.00 250.00 50.00 750.00 150.00 900.00
Gate valve set 6.00 280.00 56.00 1,680.00 336.00 2,016.00
Soap holder set 3.00 200.00 40.00 600.00 120.00 720.00
Pipes and Fittings
PP-R Pipe 3/4"Ø pc 10.00 345.00 103.50
3,450.00 1,035.00 4,485.00
PP-R Pipe 1/2"Ø pc 12.00 217.00
65.10
2,604.00 781.20 3,385.20
PP-R Coupling, 1/2"Ø pc 9.00 9.00
2.70
81.00 24.30 105.30
PP-R Coupling, 3/4"Ø pc 11.00 15.00
4.50
165.00 49.50 214.50
PP-R Tee, 1/2"Ø pc 6.00 17.00
5.10
102.00 30.60 132.60
PP-R Tee, 3/4"Ø pc 8.00 31.00
9.30
248.00 74.40 322.40
PP-R Tee, 3/4" x 1/2"Ø pc 4.00 25.00
7.50
100.00 30.00 130.00
PP-R Elbow 90o x 1/2"Ø pc 4.00 14.00
4.20
56.00 16.80 72.80
PP-R Elbow 90o x 3/4"Ø pc 5.00 23.00
6.90
115.00 34.50 149.50
PP-R Coupling Reducer, 1/2" x 3/4"Ø pc 2.00 11.00
3.30
22.00 6.60 28.60
PP-R Plug, 1/2"Ø pc 2.00 8.00
2.40
16.00 4.80 20.80
EPICUREAN | 101
PP-R Plug, 3/4"Ø pc 2.00 12.00
3.60
24.00 7.20 31.20
Sub-total 122,129.90
12.00 Sanitary Works
12.01 Catch Basin unit 2.00 1,500.00
450.00
3,000.00 900.00 3,900.00
12.02 Concrete Pipe 150mmØ pc 4.00 200.00
60.00
800.00 240.00 1,040.00
12.04 PVC Pipe 2"Ø pc 8.00 168.50
50.55
1,348.00 404.40 1,752.40
12.06 PVC Pipe 4"Ø pc 10.00 451.50
135.45
4,515.00 1,354.50 5,869.50
12.11 uPVC Elbow 90o x 2"Ø pc 8.00 25.00
7.50
200.00 60.00 260.00
12.13 uPVC Elbow 90o x 4"Ø pc 4.00 96.00
28.80
384.00 115.20 499.20
12.14 uPVC Elbow 1/8 x 2"Ø pc 3.00 20.50
6.15
61.50 18.45 79.95
12.16 uPVC Elbow 1/8 x 4"Ø pc 5.00 82.50
24.75
412.50 123.75 536.25
12.17 uPVC Tee 2" x 2" pc 6.00 36.00
10.80
216.00 64.80 280.80
12.19 uPVC Tee 4" x 2" pc 2.00 89.00
26.70
178.00 53.40 231.40
12.21 uPVC Tee 4" x 4" pc 2.00 138.00
41.40
276.00 82.80 358.80
12.22 uPVC Wye 2" x 2" pc 5.00 38.00
11.40
190.00 57.00 247.00
12.25 uPVC Wye 4" x 2" pc 4.00 97.00
29.10
388.00 116.40 504.40
12.27 uPVC Wye 4" x 4" pc 2.00 165.00 49.50
330.00 99.00 429.00
12.30 uPVC P-Trap 2" pc 8.00 66.00
19.80
528.00 158.40 686.40
Sub-total 16,675.10
I. MATERIALS (VAT inclusive) 511,868.39
II. LABOR 149,830.79
III. DIRECT COST (I + II) 661,699.18
IV. INDIRECT COST 22% of (III) 145,573.82
V. TAX 5% of (III + IV) 40,363.65
VI. TOTAL CONSTRUCTION COST (III + IV + V) 847,636.65
EPICUREAN | 102
F. RAW MATERIALS AND SUPPLIES
i. List of Raw Materials
Almond Extract
Almond Flour
Almonds
Anzac Biscuits
Avocado
Bacon
Baking Soda
Banana
Bicarbonate of Soda
Blueberry
Bourbon
Buttermilk
Caramel
Caramel Sauce
Cardamom Seeds
Cashews
Cherries
Chia Seeds
Chocolate Chips
Chocolate Jimmies / Chocolate
Sprinkles
Chocolate Sandwich Cookies
Chocolate Sauce
Chocolate Syrup
Chocolate Wafer Cookies
Chocolate Waffles
Cinnamon
Cocoa Powder
Coconut Cream
Coconut Ice Cream
Coconut Ice Cream
Coconut Milk
Coconut Milk
Coconut Oil
Coffee Ice Cream
Confectioner's Sugar
Corn Syrup
Cornstarch
Cornstarch
Cream
Cream Cheese
Crushed Graham
Dark Chocolate
Dark Rum
Dates
Durian
Eggs
Evaporated Milk
Flour
Fresh-Brewed Coffee
Honey
Instant Chocolate Pudding
Instant Chocolate Pudding
Instant Pudding
Lemon Juice
Mango
Mango
Mango Puree
Maple Syrup
Marshmallow Cream
Marshmallows
Matcha Powder
Matcha Powder
Milk
Mint Leaves
Mint Leaves
Oats
Oreo Cookies
Peppermint Extract
Pink Gel Food Coloring
EPICUREAN | 103
Pistachio Pudding Mix
Pistachios
Puff Pastry
Raspberry
Red Food Coloring
Red Velvet Cake Mix
Rocky Road Ice Cream
Salt
Salted Butter
Salted Caramel
Semi-Sweet Chocolate
Shortening
Sour Cream
Strawberry
Strawberry
Strawberry Jam
Strawberry Puree
Sugar
Tapioca Starch
Vanilla Extract
Vanilla Ice Cream
Vanilla Ice Cream
Vegetable Cream
Vegetable Oil
Vodka
Waffle Mix
Whipping Cream
White Chocolate
Yogurt
EPICUREAN | 104
ii. List of Suppliers
In business, one of the key components for an effective and efficient operations is
finding good and reliable suppliers who can meet its client’s demands and set prices within
the reasonable range.
The group considered several factors in selecting Epicurean's prospective suppliers.
The first consideration is the reputation of the supplier in selling high quality products. Also,
a supplier should contribute to product development by offering and suggesting raw materials
that are of higher quality. Secondly, the supplier should meet the quantity/volume demanded
of its clients to avoid circumstances of shortage and inefficiencies. Next, the price of the raw
materials should be reasonable and may give the company a competitive edge in the bottom
line by providing discounts and rebates. Then, the timeliness of the supplier is also an essential
criterion. The supplier should make timely delivery of the items ordered so that there are no
inefficiencies in operations. Lastly, a supplier should be willing to extend some financial credit
to accommodate its clients in times of growth and cash shortage.
The following are the list of suppliers:
1. RAFSKI PASTRY AND BAKERY SUPPLIES
Rafski sells wide variety of baking products under different brand names within
reasonable wholesale and retail price range. The company is known for its respected
reputation in selling high quality and fresh bakery products. It currently serves as
supplier to known bakery establishments in the city such as BreadTalk.
Rafski offers trade discounts, and other classes of price deductions which helps
the company to cut costs and gain financial advantage. It also delivers ordered items
within the day or a day after the time of order and gives no delivery charges. This cuts
the delivery costs of Epicurean. It also extends financial credit to its valued customers
by giving 15 days and up to two months of payment terms. This accommodates
customers who do not have available cash at the time of purchase. Lastly, in case of
product unavailability, Rafski is willing to refer its customers to another supplier if
there is a need on the part of the latter to get the items before Rafski can restock. This
assures Epicurean that product shortage is reduced to a very low level.
EPICUREAN | 105
2. BANKEROHAN MARKET
Ingredients such as fresh fruits are bought directly from the market. The
proponents decided not to specify suppliers since these items are accessible in the
market due to its large supply. Another reason for this is that the following items, when
taken individually, are not critical items in the production process. However, the
proponents identified a number of fruit suppliers who are known for its good quality
products.
· Senorita Fruit Supplier
Address: Door 81, Virgo St., GSIS Heights, Davao City
Telephone: 082-241-0094
·Angel Prince Fruits and Vegetables
Address: Bankerohan Public Market ,Marfori Road, Davao City
Telephone:082-225-8040
3. ABREEZA MALL OF DAVAO / GAISANO MALL OF DAVAO
A number of product ingredients (e.g. raspberry, cherries, pistachio nuts, dates,
etc.) in the menu of Epicurean are available only in the following stores because such
items are either imported or not immediately available in the public market. The
Abreeza Mall and Gaisano Mall are the preferred stores where Epicurean will buy these
product ingredients because of the short distance between the store location and these
establishments. Also, the proponents are certain that both establishments sell high
quality and fresh products to its customers.
iii. List of Ingredients
INGREDIENTS DESCRIPTION SHELF LIFE
(when opened)
PRICE/UNIT SUPPLIER
Peppermint Extract 2-4 years P40 /20 ml Rafski Pastry and
Bakery Supplies
Cornstarch Indefinite P 38/ pack Rafski Pastry and
Bakery Supplies
Matcha Powder Indefinite Price unavailable Rafski Pastry and
Bakery Supplies
Salted Butter 5 months under normal
refrigeration
P98/ 1 KG Rafski Pastry and
Bakery Supplies
Sugar 2 years P51/1 KG Rafski Pastry and
Bakery Supplies
Confectioner's Sugar Indefinite p55/1 kg Rafski Pastry and
Bakery Supplies
EPICUREAN | 106
Cinnamon 6 to 12 months P600/ 1 kg Rafski Pastry and
Bakery Supplies
Cocoa Powder 12 months 250 / 1 KLG. Rafski Pastry and
Bakery Supplies
Marshmallows 2-4 months P150/ 1 BAG Rafski Pastry and
Bakery Supplies
Coconut Cream refrigerator - 5-7 days ;
Freezer - 1-2months
Price unavailable Rafski Pastry and
Bakery Supplies
Cream 2 weeks P45.50 / 250 ml Rafski Pastry and
Bakery Supplies
Sourcream a dairy product
obtained by fermenting
regular cream with
certain kinds of lactic
acid bacteria
7-10 days P89.57 / 8oz Rafski Pastry and
Bakery Supplies
Milk 5-7 days P65 / 500 ml Rafski Pastry and
Bakery Supplies
Buttermilk 7-10 days P185/1 KG Rafski Pastry and
Bakery Supplies
Evaporated Milk 3-4 days P38.20/300ML Rafski Pastry and
Bakery Supplies
Coconut Oil 2-3 months P42.35 / 1 Ltr Rafski Pastry and
Bakery Supplies
Vegetable Oil 1 year P60/1 ltr Rafski Pastry and
Bakery Supplies
Lemon Juice 1 week P45/150 ML Rafski Pastry and
Bakery Supplies
Maple Syrup Indefinite P149/50 ml Rafski Pastry and
Bakery Supplies
Corn Syrup Indefinite P93.3/24 oz Rafski Pastry and
Bakery Supplies
Almond Extract 4 years P34.20/ 20 ml Rafski Pastry and
Bakery Supplies
Vanilla Extract 2-4 years P33.27/20ml Rafski Pastry and
Bakery Supplies
Cream Cheese 1-2 weeks P380/1KG Rafski Pastry and
Bakery Supplies
Whipping Cream 1-2 weeks, unopened 3-4
months from past printed
date
P220/1 KG Rafski Pastry and
Bakery Supplies
Yogurt 7-10 days P119.89/18oz Rafski Pastry and
Bakery Supplies
Salt Indefinite P15/ 1 KG Rafski Pastry and
Bakery Supplies
Dark Chocolate 6-8 months P380/ 550g Rafski Pastry and
Bakery Supplies
White Chocolate 6-8 months P505.55/500g Rafski Pastry and
Bakery Supplies
Semi-Sweet Chocolate 6-8 months P380/ 550g Rafski Pastry and
Bakery Supplies
Chocolate Chips 6-8 months P220/1 KG Rafski Pastry and
Bakery Supplies
Salted Caramel 2-3 months P180/500G Rafski Pastry and
Bakery Supplies
EPICUREAN | 107
Caramel Sauce 2-3 months P180/500G Rafski Pastry and
Bakery Supplies
Caramel 2-3 months P200/500g Rafski Pastry and
Bakery Supplies
Chocolate Sauce 1-2 years 210/500G Rafski Pastry and
Bakery Supplies
Honey Forever P300/8 oz Rafski Pastry and
Bakery Supplies
Chocolate Syrup 1-2 years 210 / 500 ml Rafski Pastry and
Bakery Supplies
Crushed Graham 1 month- pantry ; 3-4
months -Freezer
P 45.62 / Pack Rafski Pastry and
Bakery Supplies
Vegetable Cream 5-7 days Price unavailable Rafski Pastry and
Bakery Supplies
Oats 5-7 days - refrigerator ;
freezer -not recommended
166/1.2 kg Rafski Pastry and
Bakery Supplies
Flour 6-8 months P43/kg Rafski Pastry and
Bakery Supplies
Cornstarch Indefinite P39 / 500g Rafski Pastry and
Bakery Supplies
Tapioca Starch 6 months Price unavailable Rafski Pastry and
Bakery Supplies
Baking Soda Indefinite P40 / 500 g Rafski Pastry and
Bakery Supplies
Matcha Powder is finely ground
powder of specially
grown and
processed green tea.
2 months in fridge 375/50 g Rafski Pastry and
Bakery Supplies
Marshmallow Cream 2-4 months 350/198g Rafski Pastry and
Bakery Supplies
Waffle Mix 1 year P220 / 325 ml Rafski Pastry and
Bakery Supplies
Chocolate Waffles 1 year P 250/ 325 ml Rafski Pastry and
Bakery Supplies
Instant Chocolate Pudding 3-4 weeks Price unavailable Rafski Pastry and
Bakery Supplies
Chocolate Jimmies /
Chocolate Sprinkles
3-5 years P38.74 / pack Rafski Pastry and
Bakery Supplies
Pink Gel Food Coloring 12 months P30-40/20 ml Rafski Pastry and
Bakery Supplies
Puff Pastry 12 months P108/ PACK Rafski Pastry and
Bakery Supplies
Almond Flour 6-8 months P48 / kg Rafski Pastry and
Bakery Supplies
Bicarbonate of Soda is an alkali which is
used to
raise soda breads and
full-flavoured cakes
Indefinite P 15 / pack Rafski Pastry and
Bakery Supplies
Shortening 6 months P 373 / 453 g Rafski Pastry and
Bakery Supplies
Red Food Coloring 12 months P30-40/20 ml Rafski Pastry and
Bakery Supplies
Mint Leaves Indefinite Price unavailable Rafski Pastry and
Bakery Supplies
EPICUREAN | 108
Red Velvel Cake Mix 4-5 months P 220/250 g Rafski Pastry and
Bakery Supplies
Chocolate Sandwich
Cookies
2-3 weeks P 148 / Pack Rafski Pastry and
Bakery Supplies
Oreo Cookies 2-3 months(opened) P 63 / pack Rafski Pastry and
Bakery Supplies
Chocolate Wafer Cookies 2-3 months(opened) P 57 /Pack Rafski Pastry and
Bakery Supplies
Pistachio Pudding Mix 4-5 weeks P 70 / Pack Rafski Pastry and
Bakery Supplies
Instant Chocolate Pudding 4-5 weeks P 70 / Pack Rafski Pastry and
Bakery Supplies
Instant Pudding 4-5 weeks P 70 / Pack Rafski Pastry and
Bakery Supplies
Fresh-Brewed Coffee 2 days Price unavailable In-house
Coconut Milk Refrigerator - 4-6 days;
Freezer - 2-3 months
Price unavailable Bankerohan Market
Avocado 7-10 days 60 /1 kg Bankerohan Market
Coconut Milk 1 week 20/piece Bankerohan Market
Mango 5-7 days once riped P60 / 1 kg Bankerohan Market
Eggs 3-4 weeks 100/30 pieces Bankerohan Market
Mango 5-7 days P 60 /KG Bankerohan Market
Durian 3 Weeks P 40 / KG Bankerohan Market
Raspberry 2-3 days -refrigerator ,
freezer- 10-12 months
Price unavailable Abreeza Mall or
Gaisano Mall of
Davao
Rocky Road Ice Cream 1-2 months -freezer P220/ 1.5 ltr Abreeza Mall or
Gaisano Mall of
Davao
Mint Leaves 7-10 days-refrigerator ;
freezer -4-6 months
Price unavailable Abreeza Mall or
Gaisano Mall of
Davao
Coconut Ice Cream 1-2 months -freezer P220/ 1.5 ltr Abreeza Mall or
Gaisano Mall of
Davao
Anzac Biscuits is a sweet biscuit,
made using rolled oats,
flour, sugar, butter,
golden syrup, baking
soda, boiling water and
optionally desiccated
coconut.
4-5 months Price unavailable Abreeza Mall or
Gaisano Mall of
Davao
Dark Rum Indefinite P1200.40/1 LTR Abreeza Mall or
Gaisano Mall of
Davao
Bourbon Indefinite P1791.29/1 LTR Abreeza Mall or
Gaisano Mall of
Davao
Cardamom Seeds a spice made from
the seeds of several
plants
3-4 years Price unavailable Abreeza Mall or
Gaisano Mall of
Davao
EPICUREAN | 109
Cashews 6-9 months 400 per kg Retail
Price
Abreeza Mall or
Gaisano Mall of
Davao
Pistachios 3 months Price unavailable Abreeza Mall or
Gaisano Mall of
Davao
Dates 6-12 months 300/454kg Abreeza Mall or
Gaisano Mall of
Davao
Cherries 2-3 days- pantry 5-10 days
-refrigerated
340/kg Abreeza Mall or
Gaisano Mall of
Davao
Chia Seeds are tiny, like a sesame
seed – and part of the
mint family.
2 years Price unavailable Abreeza Mall or
Gaisano Mall of
Davao
Strawberry 5-7 days 500/kg Abreeza Mall or
Gaisano Mall of
Davao
Blueberry 5-10 days 1250/kg Abreeza Mall or
Gaisano Mall of
Davao
Almonds 9-12 months 170/1kg Abreeza Mall or
Gaisano Mall of
Davao
Coffee Ice Cream 1-2 months -freezer P220/ 1.5 ltr Abreeza Mall or
Gaisano Mall of
Davao
Vodka Indefinite P650/700 ml Abreeza Mall or
Gaisano Mall of
Davao
Vanilla Ice Cream 1-2 months -freezer P220/ 1.5 ltr Abreeza Mall or
Gaisano Mall of
Davao
Bacon 1 week 278/500g Abreeza Mall or
Gaisano Mall of
Davao
Strawberry 5-7 days P250-350/kg Abreeza Mall or
Gaisano Mall of
Davao
Strawberry Jam 6-12 months P190-200/Kg Abreeza Mall or
Gaisano Mall of
Davao
Strawberry Puree 6 months P200 Abreeza Mall or
Gaisano Mall of
Davao
Mango Puree 6 months P75/ kg Abreeza Mall or
Gaisano Mall of
Davao
Vanilla Ice Cream 1-2 months P 200 / 1.5 ltr Abreeza Mall or
Gaisano Mall of
Davao
Coconut Ice Cream 1-2 months P 200 / 1.5 ltr Abreeza Mall or
Gaisano Mall of
Davao
EPICUREAN | 110
Banana 2-7 days -pantry/
refrigerator 2-9 days
lakatan banana --
P30 per kg;
latundan banana --
P15 per kg
Bankerohan Market
Table 3.1. List of Raw Materials with Corresponding Descriptions, Shelf Life, Prices, and Suppliers
G. UTILITIES
The Davao City Water District will be Epicurean’s water source. The water rate in the city
is presented in table 3.1. The estimated unit consumption per month for commercial space
according to Davao City Water District Data is 70.91 cubic meter.
Table 3.2. Water Rates Data
To get the estimated monthly water bill:
Table 3.3. Computation of Estimated Monthly Water Bill
Davao Light & Power Company will be Epicurean’s electricity source. The per kilowatt-
hour rate in the city is Php. 7.51. The table below shows the breakdown of the monthly kilowatt
consumption of each of the appliances and machinery that the proposed project will be consuming.
Table 3.4. Computation of Total Estimated Monthly Electricity Bill
Minimum Charge 11-20 m3 21-30 m3 31-40 m3 41-50 m3 51-up m3
137.3 14.4 18.6 24.7 36 36
Minimum Charge 137.30
11-20 cubic meter 144.00
21-30 cubic meter 186.00
31-40 cubic meter 247.00
41-50 cubic meter 360.00
51-up cubic meter ((70.91-50)*36) 752.76
Estimated Monthly Water Bill 1827.06
Equipment kW Hrs/Day 30 days Peso/kWhr Peso/Month
Airconditioning Unit (1.5 HP) 1.25 12 30 7.51
3384.907
Airconditioning Unit (6 HP)
12 30 7.51
0
Flourescent Lamp (15bulbs, 40watts/bulb) 0.6 12 30 7.51
1622.16
Blender/Grinder/Mixer/Grinder 0.7 3 30 7.51
473.13
Rice Cooker, 1.8 liter 0.65 3 30 7.51
439.335
Spoon Heater 1.5 4 30 7.51
1351.8
Glass Door Chiller 0.2 24 30 7.51
1081.44
Freezer 0.15 24 30 7.51
811.08
Laptop and Printer 0.1 4 30 7.51
90.12
Refrigerator 0.15 24 30 7.51
811.08
Total Estimated Monthly Electricity Bill
10065.05
EPICUREAN | 111
H. WASTE DISPOSAL
Proper waste management is one of the most important aspect to consider in running
a food business such as a patisserie. Epicurean Chocolates considers waste management as
an integral part of its day to day operations. The proponents should follow these guidelines
in standardizing the management of their waste materials:
1. Waste materials such as paper, cardboard, plastics, food wastes and other special
wastes must be properly collected by the waiters after the customers have left their
table. They will deliver the waste materials together with the plates and other dishes
to a small opening behind the counter which leads to the dishwashing area inside the
kitchen. The dishwasher will then gather the waste materials and segregate them in
the trash bins in accordance to its nature (e.g. Biodegradable, Non-Biodegradable,
Recyclable and etc.).
2. Following the City Ordinance No. 0361-10 or the Mandatory Segregation of Solid
Waste, before closing the store, a person will be assigned to gather the waste materials
from the different trash bins and bring them out from the kitchen to the local garbage
bins outside of the store. These wastes will then be collected by the local garbage
collector.
3. Regarding the spoilage of products and inventories, the proponents will have to
dispose the spoiled goods upon inspection during daily check-ups before closing the
store.
4. To dispose wastewaters, a septic tank will be constructed. Its purpose is to separate
solids from the wastewater, store and partially decompose as much solid material as
possible, while allowing the liquid (or effluent) to go to the drainage. Wastewater
from the toilet and the kitchen flows into the tank and remains there for up to 24 hours
(known as the retention time) before it passes to the drainage. This helps prevent
clogging of the drainage, which can lead to failure and costly repairs.
5. Monthly waste audit will be conducted to reduce the amount of waste the store
produces per day and to ensure environmental responsibility is considered. Examples
of which is the avoidance of using Polystyrene (Styro) materials in the store’s
packaging.
EPICUREAN | 112
Strict implementation on these guidelines will be observed. Epicurean Chocolates
fosters respect and care for the environment through responsible waste management and
waste reduction standards.
I. LABOR REQUIREMENTS
Direct Labor
Employee Qualifications Number Salary/Wage Rate
Chef/Store Supervisor ● Must have a degree in
pastry arts
● Graduate of an HRM
course
● Knows how to bake and
cook
● Possess leadership skills
● Possess organizational and
management skills
● Must be creative
● Must be manually
dexterous
● Possess good
communication skills
● Availability to work on
flexible schedules
1 Php 50,000/month
Kitchen Crew ● Knows how to bake and
cook
● Has organizational and
management skills
● Must be attentive to detail
● Must be manually
dexterous
● Ability to follow written
and oral instructions
● Able to handle work well
during rush hours
● Availability to work on
flexible schedules
4 Php 15,000/month
Presented here are the officers and employees that will be needed for Epicurean’s
operations. Along with the list are their qualifications and the suggested salary/wage rate.
EPICUREAN | 113
Indirect Labor
Employee Qualifications Number Salary/Wage Rate
Front Crew/ Cashier ● Knows how to use
equipment such as blender
● Able to multitask
● Has the ability to prepare
and pack food in
conformance with the
orders
● Able to handle work well
during rush hours
● Willing to learn
● Has bright personality
● Ability to work efficiently
with other crew workers
● Dedicated and meticulous
● Possess general math skills
● Possess skill in handling
and counting cash
● Able to maintain a high
energy level
● Has bright personality
● Possess good interpersonal
skills (Able to provide
prompt and friendly
customer service)
● Able to converse using the
English language
2 Php 400/day
Shop Cleaner ● Ability to work efficiently
with other crew workers
● Enthusiastic to perform all
physical aspects of the
cleaning job duties
● Highly skilled in cleaning
2 Php 317/day
EPICUREAN | 114
J. PRODUCTION COST
Production cost is a cost incurred by a business when manufacturing a good or producing a
service. Production costs combine raw material and labor. To figure out the cost of production per
unit, the cost of production is divided by the number of units produced. A company that knows
how much it will cost to produce an item, or produce a service, will have a clearer picture of how
to better price the item or service and what will be the total cost to the company (Investopedia,
n.d.). Presented here is a rough estimate of the production cost of Epicurean per year.
2017 2018 2019 2020 2021
Variable Cost
Raw Materials 4,470,039.77 7,654,144.65 8,145,148.50 8,664,875.27 9,214,610.38
Total Variable Cost 4,470,039.77 7,654,144.65 8,145,148.50 8,664,875.27 9,214,610.38
Fixed Cost
Direct Labor 770,000.00 1,372,800.00 1,427,712.00 1,484,820.48 1,544,213.30
Depreciation
Basic Tools and measuring
utensils
2,173.62 3,726.21 3,726.21 3,726.21 3,726.21
Mixing Tools 1,267.14 2,172.23 2,172.23 2,172.23 2,172.23
Specialty Tools 542.81 930.54 930.54 930.54 930.54
Baking Pans 1,140.42 1,955.00 1,955.00 1,955.00 1,955.00
Kitchen
Supplies 828.13 1,419.64 1,419.64 1,419.64 1,419.64
Utensils 3,364.58 5,767.86 5,767.86 5,767.86 5,767.86
Equipments 37,762.24 64,735.27 64,735.27 64,735.27 64,735.27
Other
Equipment 10,729.74 57,808.68 18,393.84 99,100.58 18,393.84 99,100.58 18,393.84 99,100.58 18,393.84 99,100.58
Utilities 111,198.91 198,251.82 206,181.89 214,429.17 223,006.34
Total Fixed Cost 939,007.59 1,670,152.40 1,732,994.47 1,798,350.23 1,866,320.22
Total Production Cost 5,409,047.36 9,324,297.05 9,878,142.97 10,463,225.50 11,080,930.60
EPICUREAN | 115
CHAPTER IV
FINANCIAL ASPECT
A. Major Assumptions used in the preparation of Financial Statements
1. Depreciable assets are depreciated using the straight-line method with no salvage value.
2. Fully depreciated property, plant and equipment are retired when fully depreciated.
3. The same kind of the PPE retired are purchased at the same cost, at the same time that it
was fully depreciated.
4. Interest on short-term borrowing is accrued and paid every month.
5. Interest on long-term borrowing is paid at year-end.
6. Loans are received at face value to be paid in installments for 10 years with an interest rate
of 6%.
7. Interest expense is based on the interest rate of 6% which is the mean of 4%-8% interest
rate range on loans given by DBP.
8. The withholding tax payable is for the following: salaries and wages, payroll sheet, 2% of
the rental payment, and 2% of professional fees.
9. The accounts payable at the end of the year is equal to the ending raw materials inventory.
10. Inflation rate per year is 4%.4
11. All of the sales transactions are made in cash.
12. Sales are made evenly throughout the year.
13. Quantity of products sold increases by 2.3% per year based on projected sales in the market
study.
14. Purchases are made in cash and in credit.
15. Purchases are made evenly throughout the year.
16. Price of raw materials increases per year at inflation rate.
17. Product price increases by 4% every two years.
18. The supply of raw materials in the stockroom is good for one week. Thus, purchases of raw
materials are done once a week.
19. The finished goods inventory at the end of the year is equal to the demand of the following
day.
4 http://www.tradingeconomics.com/philippines/inflation-cpi/forecast
EPICUREAN | 116
20. Salaries and wages, employee benefits (e.g. thirteenth month pay), communication, gas,
oil, and lubricants, power light, and water increase per year at inflation rate.
21. Contract on operating lease is Php 100,000 per month and is good for five years.
22. Repairs and maintenance are incurred evenly throughout the year.
23. Repairs and maintenance increase 4% per year.
24. Utilities are paid at the end of the month.
25. Lessors and outsourced auditing firms are non-VAT registered.
26. Petty cash fund and payroll fund are replenished every end of the month.
27. The amount of annual petty cash fund remains constant for the next five years.
28. The monthly payroll fund for the salaries and wages and for the SSS, PhilHealth and
HDMF contributions pertain to the following month.
29. The employee benefits account is only composed of the 13th month pay of the employees.
30. There is a day off of one day per week for each employee. Such day off is assumed to be
paid.
31. Holiday pay implications are ignored.
32. Cost of equity and cost of debt remain constant for simplicity.
33. Work-in-process inventory was assumed to be zero (0) due to the difficulty of computation.
EPICUREAN | 117
B. Total Project Cost
The project cost is computed as follows:
Taxes and Licences
Business Name Registration 500.00
Regulatory Fees and Charges
Local Business Tax 750.00
Permit Fee 1,000.00
Garbage Fee 400.00
City Environment and Natural Resources
Solid Waste Management Certificate 300.00 300.00
Office of the City Building Official
Electrical Annual Inspection Fee 296.00
Mechanical Annual Inspection Fee 110.00
Plumbing Annual Inspection Fee 60.00
Sign and Signboard Structure Inspection Fee 500.00 966.00
City Health Office
Health Certificate Fee 50.00
Laboratory Fee 60.00
Sanitary Inspection Fee 300.00
Sanitary Permit Fee 200.00 610.00
City Planning and Development Office
Zoning Fee 300.00 300.00
Bureau of Fire Protection (10% of Total Regulatory Fees) 480.67
Licensing and Registration
Verification and reservation of the company with SEC 40.00
Notarization of articles of partnership 500.00
Registration of the company with SEC 2,500.00
Annual Community Tax 500.00
Barangay Clearance 100.00
Notarization of encoded business permit application form at the City Legal
Office 50.00
Temporary Authority to Operate and Compliance Form from the BBLP 3,000.00
Special Books of Account 400.00
Certificate of Registration and Taxpayer Identification Number (TIN) at
the BIR 15.00
Registration fee and Documentary Stamp Taxes 1,000.00
Printing receipts and invoices at print shops 1,750.00
Processing Costs 1,500.00 16,661.67
Property, Plant and Equipment
Machineries, Tools and Equipment (MTE) 1,083,090.85
Leasehold Improvement 756,818.44 2,060,698.40
EPICUREAN | 118
Input VAT 220,789.11
Initial Working Capital Requirements for the first two (2) months
Raw Materials Purchases 1,204,196.90
Salaries and Wages Expenses 354,040.00
SSS Premium Contribution 7,808.78
PhilHealth Premium Contribution 1,775.00
HDMF Premium Contribution 3,460.40
Rent Expense 300,000.00
Advertising and Promotion Expenses 2,625.00
Office Supplies Expenses 4,303.57
Communications Expenses 6,000.00
Meetings and Conferences 2,000.00
Repairs and Maintenance Expenses 1,500.00
Insurance Expenses 15,230.88
Miscellaneous Expenses 1,666.67
Utilities Expenses 19,092.33
Training Expenses 46,493.24
Input VAT 145,020.06 2,115,212.83
Total Project Cost 4,192,572.90
Less: Sales for 1st month 930,195.00
Capital and Loan Requirements 3,262,377.90
C. Initial Working Capital Requirements
1. Cash Management
As the most liquid and vulnerable of all assets, cash must be handled carefully.
Epicurean will maintain cash on hand, cash in bank, payroll fund, and petty cash fund as
cash accounts.
The amount of Cash on Hand must be enough to pay current obligations for the
month. Replenishment of Petty Cash Fund will be made from Cash on Hand. Payroll Fund
will also be made out of this account. Epicurean will require and hold a petty cash fund of
15,000 every month. The petty cash fund will be accounted through the Imprest Fund
System and will be under the custody of the cashier.
Cash in bank account includes deposits of customer payments from Epicurean.
Payments from customers will be collected by the cashier upon order of the goods. At the
end of the day, the cashier will remit the collections to the manager. The manager will be
the one to place the collections to the safety deposit box. After three days, the manager will
EPICUREAN | 119
deposit the collections to the bank. Cash in bank also includes credit and debit card sales5
payments from customers.
2. Inventory Management
Epicurean should employ a balance between having enough raw materials to make
its products and limiting the amount of raw materials stored to ensure freshness and avoid
waste and spoilage. With this, Epicurean will employ a First-In, First-Out basis of raw
material management. In addition, it will employ Periodic Accounting System in
monitoring its inventory.
In deciding for the order schedule of Epicurean, the proponents took into account
certain factors such as a raw materials’ shelf life and relative demand of the product. Raw
material procurement will not be uniform for every product because other materials spoil
faster. Orders are made every end of the week for the forecasted demand of the next week.
The reorder point for each raw material will happen when the amount of materials in the
storage room will not be enough for the forecasted demand. The inventory count should be
taken every night after Epicurean closes to determine whether a material has reached its
safety stock level.
Normal waste and spoilage of raw materials will be embedded in the Cost of Goods
Sold. Abnormal waste and spoilage of raw materials will be treated as expense.
3. Receivables/ Credit Policy Management
Payments to suppliers will be made after the receipt of goods depending upon the
agreed-upon credit terms. Epicurean will have no accounts receivables even if credit and
debit card payments are accepted. This is because credit and debit card payments are
immediately credited to the current and savings account6.
D. Alternative Sources of Financing
To cover the needed costs to start the business, the proponents decided to use both the
internal and external sources of financing. A part of the initial project cost will be financed using
the total contribution of the parties and a part will come from the proceeds from a long-term debt
acquired from the Development Bank of the Philippines (DBP). The terms of loan with DBP was
discussed during the interview of Mr. Fernando Lagahit, Regional Head of DBP Davao, It will
5 See Appendix 4.0 6 https://www.bdo.com.ph/mobile/personal/credit-debit-cards/merchant-accreditation
EPICUREAN | 120
also enter in short-term debt engagement with its suppliers when purchasing inventories, raw
materials and other basic items in order to sustain its operational activities. Moreover, in the event
of business expansion, additional short-term and/or long-term financing will be considered. (The
lists of banks, where Epicurean could transact its future borrowings, together with their respective
loan and credit terms and conditions, are attached in the Appendix 4.1.)
E. Sources of financing the Project
Capital Structure Policy
As already mentioned above, the initial project cost will be financed using the partners’
investment and a long-term borrowing from a bank. The capital structure of the business will
be composed of 20% equity and 80% debt. The terms of the loan with DBP was discussed
during the interview of Mr. Fernando Lagahit, Regional Head of DBP Davao. According to
him, the collateral of the loan could be the equipment, the machineries, and the furniture of
Epicurean. (See Appendix 4.5.)
The project will be financed as follows:
Long-term Debt (80%) 2,640,000.00
Equity (20%) 660,000.00
Total Capital and Loan
Requirements 3,300,000.00
Cost of Capital Determination
The following is Epicurean’s weighted average cost of capital:
*See Appendix C for computation of the weighted average cost of capital.
Long-term debt financing costs 6% per year. Financing through the partners’ capital costs
6.83% which is based on industry average7. As Epicurean’s long-term debt decreases annually
7 http://people.stern.nyu.edu/adamodar/New_Home_Page/datafile/wacc.htm
2017 2018 2019 2020 2021
*WACC 4.7740%
4.9787%
5.2091%
5.4208%
5.6544%
EPICUREAN | 121
due to the proportional principal amount of the loan being paid, its WACC also increases since
the cost of equity is higher by .83% than the cost of debt.
Profit/Loss Sharing Policy
The profit/loss sharing policy of Epicurean will depend upon the agreement of the partners.
It may be based on the investment (i.e. capital, labor, etc.) contributed by each partner or any
other terms. For the purpose of this study, the profit sharing would be 60:40 for partner A and
B, respectively. Since partner A is the industrial partner which is responsible for the
management of the patisserie, he will have a greater amount of share in the profit.
EPICUREAN | 122
F. PRO FORMA FINANCIAL STATEMENTS
Epicurean Chocolates
Fabie Building, Pelayo Street, Poblacion District
Davao City, Philippines
STATEMENT OF FINANCIAL POSITION
As of December 31, 2017-2021
ASSET
Notes 2017 2018 2019 2020 2021
CURRENT ASSETS: Cash & Cash Equivalents 3 1,128,422.55 1,384,224.00 1,579,045.01 1,691,980.09 1,888,226.70
Other Current Assets 4 277,277.65 287,844.48 299,723.63 312,314.40 325,811.58
Total 1,405,700.20 1,672,068.48 1,878,768.64 2,004,294.49 2,214,038.28
NON-CURRENT ASSETS: Property & Equipment, net 5 1,830,830.18 1,659,577.63 1,488,325.08 1,317,072.54 1,145,819.99
TOTAL ASSETS 3,236,530.38 3,331,646.11 3,367,093.72 3,321,367.03 3,359,858.27
LIABILITIES & STOCKHOLDERS EQUITY
LIABILITIES: Current Liabilities Accrued and other payables 6 195,473.69 207,245.28 222,615.93 238,606.84 256,962.06
Income Tax Payable 8 1,763.96 121,781.90 141,578.67 119,951.53 140,960.77
Loans Payable 7.a 264,000.00 264,000.00 264,000.00 264,000.00 264,000.00
TOTAL 461,237.65 593,027.17 628,194.60 622,558.37 661,922.83
Non-Current Liabilities Loans Payable 7.b 2,112,000.00 1,848,000.00 1,584,000.00 1,320,000.00 1,056,000.00
TOTAL LIABILITIES 2,573,237.65 2,441,027.17 2,212,194.60 1,942,558.37 1,717,922.83
STOCKHOLDER'S EQUITY: Partners' Capital 9 663,292.73 890,618.94 1,154,899.12 1,378,808.65 1,641,935.43
TOTAL LIABILITES & STOCKHOLDER'S EQUITY 3,236,530.38 3,331,646.11 3,367,093.72 3,321,367.03 3,359,858.27
EPICUREAN | 123
Epicurean Chocolates
Fabie Building, Pelayo Street, Poblacion District
Davao City, Philippines
STATEMENT OF COMPREHENSIVE INCOME
For the year ended December 31, 2017-2021
Notes 2017 2018 2019 2020 2021
REVENUE : Sales 10 7,744,524.45 13,828,950.00 14,716,634.40 15,053,781.60 16,012,114.56
LESS: COST OF GOODS SOLD 11 5,383,471.62 9,323,464.06 9,876,565.20 10,461,571.35 11,079,159.97
GROSS PROFIT 2,361,052.83 4,505,485.94 4,840,069.20 4,592,210.25 4,932,954.59
EXPENSES Salaries & Wages 469,140.00 836,409.60 869,865.98 904,660.62 940,847.05
SSS Premium Contribution 74,773.02 130,834.32 137,022.00 138,774.00 142,328.40
PhilHealth Premium Contribution 14,087.50 24,150.00 25,050.00 25,650.00 27,150.00
HDMF Premium Contribution 24,782.80 44,184.00 45,950.88 47,789.77 62,126.53
Taxes and Licenses 16,661.67 525.80 8,327.55 6,939.35 8,327.55
Employee Benefits 177,020.00 184,100.80 191,464.83 199,123.43 207,088.36
Depreciation Expense 38,556.83 66,097.42 66,097.42 66,097.42 66,097.42
Rent Expense 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00
Professional Fees 20,000.00 20,800.00 21,632.00 22,497.28 23,397.17
Advertising and Promotion 9,187.50 16,380.00 17,035.20 17,716.61 18,425.27
Office Supplies 16,870.00 30,076.80 31,279.87 32,531.07 33,832.31
Communication 21,000.00 37,440.00 38,937.60 40,495.10 42,114.91
Meetings and Conferences 7,000.00 12,480.00 12,979.20 13,498.37 14,038.30
Repairs and Maintenance 3,000.00 6,240.00 6,489.60 6,749.18 7,019.15
Insurance 15,230.88 15,840.12 16,473.72 17,132.67 17,817.98
Miscellaneous Expense 5,000.00 10,400.00 10,816.00 11,248.64 11,698.59
Utilities 66,823.16 119,048.43 142,051.74 146,912.95 151,968.60
Interest Expense 158,400.00 126,720.00 110,880.00 95,040.00 79,200.00
Training Expense 39,922.19 - - - -
Total Expenses 2,337,533.36 2,881,727.29 2,952,353.60 2,992,856.45 3,053,477.59
NET INCOME/(LOSS) BEFORE
TAX 23,519.47 1,623,758.66 1,887,715.60 1,599,353.79 1,879,477.00
Provision for Income Tax 30% 7,055.84 487,127.60 566,314.68 479,806.14 563,843.10
NET INCOME/(LOSS) AFTER
TAX 16,463.63 1,136,631.06 1,321,400.92 1,119,547.66 1,315,633.90
EPICUREAN | 124
Epicurean Chocolates Fabie Building, Pelayo Street, Poblacion District
Davao City, Philippines
CASH FLOW STATEMENT
For the year ended December 31, 2017-2021
2017 2018 2019 2020 2021
Cash Flows from Operating Activities:
Net Income/(loss) 16,463.63 1,136,631.06 1,321,400.92 1,119,547.66 1,315,633.90
Adjustment to reconcile net income to net
cash provided by operating activities:
Depreciation 99,897.32 171,252.55 171,252.55 171,252.55 171,252.55
Changes in Assets & Liabilities:
(Increase)/Decrease in Other Current Assets (476,378.45) (10,566.82) (19,243.18) (20,249.37) (29,745.66)
Increase/(Decrease) in Income Tax Payable 1,763.96 120,017.94 19,796.77 (21,627.14) 21,009.24
Increase/(Decrease) in Accrued and Other
Payables 195,473.69 11,771.58 15,370.65 15,990.91 18,355.22
Increase/(Decrease) in Current Loans Payable 264,000.00 - - - -
Cash Flows from Investing Activities:
(Increase)/Decrease in Non-Current Assets (1,930,727.50) - - - -
Cash Flows from Financing Activities
Increase/(Decrease ) in Paid-in Capital 660,000.00 - - - -
Increase/(Decrease ) in Non-current
Liabilities 2,112,000.00 (264,000.00) (264,000.00) (264,000.00) (264,000.00)
Drawings (13,170.90) (909,304.85) (1,057,120.74) (895,638.12) (1,052,507.12)
Net Increase in Cash and cash equivalents
929,321.75 255,801.46 187,456.97 105,276.49 179,998.13
Add: Cash balance at beginning of the year
- 929,321.75 1,185,123.20 1,372,580.18 1,477,856.66
Cash balance at end of year 929,321.75 1,185,123.20 1,372,580.18 1,477,856.66 1,657,854.79
Cash Accounted as follows:
Cash on hand 13,276.02 9,876.03 11,438.17 12,315.47 13,815.46
Cash in bank 916,045.72 1,175,247.18 1,361,142.01 1,465,541.19 1,644,039.34
Total Cash Accounted 929,321.75 1,185,123.20 1,372,580.18 1,477,856.66 1,657,854.79
EPICUREAN | 125
Epicurean Chocolates
Fabie Building, Pelayo Street, Poblacion District
Davao City, Philippines
STATEMENT OF CHANGES IN PARTNERSHIP EQUITY
For the year ended December 31, 2017-2021
2017 2018 2019 2020 2021
Partner's Capital, Beginning - 663,292.73 890,618.94 1,154,899.12 1,378,808.65
Add: Partners
Contribution
Partner A 330,000.00 - - - -
Partner B 330,000.00 - - - -
Net Income 16,463.63 1,136,631.06 1,321,400.92 1,119,547.66 1,315,633.90
Less: Drawings
Partner A 8,231.81 568,315.53 660,700.46 559,773.83 657,816.95
Partner B 4,939.09 340,989.32 396,420.28 335,864.30 394,690.17
Net Loss
Partnership Equity, End 663,292.73 890,618.94 1,154,899.12 1,378,808.65 1,641,935.43
EPICUREAN | 126
Epicurean Chocolates Fabie Building, Pelayo Street, Poblacion District Davao City, Philippines NOTES TO FINANCIAL STATEMENTS As of December 31, 2021, 2020, 2019, 2018 and 2017 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Preparation The financial statements of the Company have been prepared in accordance with the Philippine Reporting Standards for Small and Medium-sized entities (PFRS for SMEs). The financial statements have been prepared on the historical cost basis and are presented in Philippine peso,
which is the entity's functional currency. All values represent absolute amounts except when otherwise indicated.
Cash and Cash Equivalents The Cash and Cash Equivalents account are made up of Cash on Hand, Cash in Bank (Demand Deposit Account), Petty Cash and Payroll Fund. The accounts under Cash and Cash equivalents are immediately available without restriction for use. Cash on Hand - includes undeposited cash receipts from sales and proceeds from bank loan. Cash in Bank - The amount deposited in the bank and credited to the account of the company. It is unrestricted as to withdrawal.
Petty Cash Fund - represents money set aside to pay small expenses which cannot be paid conveniently by issuance of checks.
Payroll Fund - The amount in this fund is exclusively for the distribution of salaries to employees. Inventories Inventories are assets held for sale in the normal course of business (PAS 2). It includes Raw Materials Inventory, Goods in Process
Inventory, and Finished Goods Inventory. The Periodic Inventory System is used in accounting for the inventories. The FIFO method is
used in inventory valuation. Property, Plant and Equipment (PPE) The management evaluates the PPE at the time they are incurred. The useful life of the asset is estimated based on the probable future
economic benefits associated with the asset that will flow to the entity. The asset items under Property, Plant, and Equipment account are tested for impairment annually or if material circumstances arise
that require the remeasurement of these items (e.g. flood, fire, damage, technology advancement) such that there is an indication
that the carrying amount of the item is not fully recoverable. Trade and Other Payables Trade payables are non-interest bearing and on normal credit terms. Accrued Expenses and Other Obligations are obligations that
will be settled within a year. Revenue Recognition The revenue recognition is in accordance with the accrual system. It only includes the gross inflow of economic benefits received by the entity (PAS 18). 2 MANAGEMENT'S SIGNIFICANT ACCOUNTING JUDGEMENT AND ESTIMATES 3.1 Judgments The preparation of the company's financial statements in conformity with Financial Reporting Framework (in reference to
the Generally Accepted Accounting Principles of the Philippines) requires management to make estimates and assumptions
EPICUREAN | 127
that affect the amounts reported in the company's financial statements and accompanying notes. The estimates and
assumption used in the company's financial statements are based upon management's evaluation of relevant facts and
circumstances as of the date of the company's financial statements. Actual results could differ from such estimates,
judgments and estimates are continually evaluated and are based on historical experience and other factors, including
expectation of future events that are believed to be reasonable under the circumstances. 3.2 Estimates In the application of the company's accounting policies, management is required to make judgment, estimates and
assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources.
The estimates and associated assumptions are based on historical experience and other factors that are considered
to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates
are recognized in the period in which the estimates are revised if the revision affects only that period, or in the
revision and future periods if the revision affects both current and future periods. The following represents a summary of the significant estimates and judgment and related impact and associated risks in the
company's financial statements. Estimated Useful Lives of Property, Plant and Equipment The company estimates the useful lives of property, plant and equipment based on the period over which the property, plant
and equipment are expected to be available for use. The estimated useful lives of the property, plant and equipment are
reviewed periodically and are updated if expectations differ from previous estimates due to physical wear and tear, technical
or commercial obsolescence and legal or other on the use of the property, plant and equipment. Depreciation is composed on a straight-line method over the estimated useful lives of the assets as follows: Basic Tools and measuring utensils 5 Mixing Tools 10 Specialty Tools 10 Baking Pans 5 Kitchen Supplies 5 Utensils 5 Furniture and Fixtures 10 Equipment 10 Other Equipment 10 Leasehold Improvements 15 3 CASH AND CASH EQUIVALENTS This account consists of the following: 2017 2018 2019 2020 2021
Cash on Hand 16,120.32 11,535.20 13,158.71 14,099.83 15,735.22
Cash in Bank 1,112,302.22 1,372,688.80 1,565,886.30 1,677,880.26 1,872,491.47
Payroll Fund 184,100.80 191,464.83 199123.43 207,088.37 215,371.90
Petty Cash Fund 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00
Total Cash and Cash Equivalents 1,327,523.35 1,590,688.83 1,793,168.44 1,914,068.46 2,118,598.60
Cash on hand at the end of the year is cash not yet deposited in the bank. This is determined by dividing the cash and cash equivalents at the
end of the year by the number of days of operations for the year and multiply by 3 to represent the last three days that cash is not yet
deposited at year-end. The remaining amount represents the cash in bank. 4 OTHER CURRENT ASSETS 2017 2018 2019 2020 2021
Finished Goods Inventory (Note 21) 25,575.74 26,408.73 27,986.50 29,640.65 31,411.28
Raw Materials Inventory (Note 18) 151,701.92 161,435.75 171,737.13 182,673.75 194,400.30
Rent Deposit 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00
Total 277,277.65 287,844.48 299,723.63 312,314.40 325,811.58
EPICUREAN | 128
5 PROPERTY AND EQUIPMENT, NET 2017 2018 2019 2020 2021
Machineries, Tools and Equipment
Basic Tools and Measuring Utensils 18,631.03 18,631.03 18,631.03 18,631.03 18,631.03
Mixing Tools 21,722.32 21,722.32 21,722.32 21,722.32 21,722.32
Specialty Tools 9,305.36 9,305.36 9,305.36 9,305.36 9,305.36
Baking Pans 9,775.00 9,775.00 9,775.00 9,775.00 9,775.00
Kitchen Supplies 7,098.21 7,098.21 7,098.21 7,098.21 7,098.21
Utensils 28,839.29 28,839.29 28,839.29 28,839.29 28,839.29
Furniture and Fixtures 156,428.57 156,428.57 156,428.57 156,428.57 156,428.57
Equipment 647,352.68 647,352.68 647,352.68 647,352.68 647,352.68
Other Equipment 183,938.39 183,938.39 183,938.39 183,938.39 183,938.39
TOTAL Machineries, Tools and Equipment 1,083,090.85 1,083,090.85 1,083,090.85 1,083,090.85 1,083,090.85
Leasehold Improvements 847,637 847,637 847,637 847,637 847,637
TOTAL NON-CURRENT ASSET 1,930,727.50 1,930,727.50 1,930,727.50 1,930,727.50 1,930,727.50
Less: Accumulated Depreciation Basic Tools and measuring utensils 2,173.62 5,899.83 9,626.03 13,352.24 17,078.44
Mixing Tools 1,267.14 3,439.37 5,611.60 7,783.83 9,956.06
Specialty Tools 542.81 1,473.35 2,403.88 3,334.42 4,264.96
Baking Pans 1,140.42 3,095.42 5,050.42 7,005.42 8,960.42
Kitchen Supplies 828.12 2,247.77 3,667.41 5,087.05 6,506.69
Utensils 3,364.58 9,132.44 14,900.30 20,668.16 26,436.02
Furniture and Fixtures 9,125.00 24,767.86 40,410.71 56,053.57 71,696.43
Equipment 37,762.24 102,497.51 167,232.78 231,968.04 296,703.31
Other Equipment 10,729.74 29,123.58 47,517.42 65,911.26 84,305.10
Leasehold Improvements 32,963.65 89,472.76 145,981.87 202,490.98 259,000.09
TOTAL Accumulated Depreciation 99,897.32 271,149.87 442,402.42 613,654.96 784,907.51
PROPERTY AND EQUIPMENT, NET 1,830,830.18 1,659,577.63 1,488,325.08 1,317,072.54 1,145,819.99
6 ACCRUED AND OTHER PAYABLES 2017 2018 2019 2020 2021
Accounts Payable 151,701.92 161,435.75 171,737.13 182,673.75 194,400.30
Withholding tax payable (Note 16) 27,365.86 28,758.50 30,157.14 32,253.02 34,395.06
VAT Payable (Note 20) 16,405.92 17,051.03 20,721.66 23,680.08 28,166.69
TOTAL 195,473.69 207,245.28 222,615.93 238,606.84 256,962.06
7 LOANS PAYABLE 2017 2018 2019 2020 2021
7.a Current Portion
Loans to Development Bank of the Philippines (DBP) 264,000.00 264,000.00 264,000.00 264,000.00 264,000.00
7.b Non-Current portion
Loans to Development Bank of the Philippines
(DBP) 2,112,000.00 1,848,000.00 1,584,000.00 1,320,000.00 1,056,000.00
The face value of the loans to DBP is Php 2,640,000 to be paid in installments for ten (10) years with an annual interest rate of 6%.
8 INCOME TAX PAYABLE 2017 2018 2019 2020 2021
Gross Income 23,519.47 1,623,758.66 1,887,715.60 1,599,353.79 1,879,477.00
Income Tax Rate Applicable 30% 30% 30% 30% 30%
Income tax payable before prepayments 7,055.84 487,127.60 566,314.68 479,806.14 563,843.10
Prepaid Income Tax 5,291.88 365,345.70 424,736.01 359,854.60 422,882.32
Income tax Payable, Net 1,763.96 121,781.90 141,578.67 119,951.53 140,960.77
EPICUREAN | 129
9 PARTNER'S CAPITAL 2017 2018 2019 2020 2021
Partner's Capital Beginning 0.00 663,292.73 890,618.94 1,154,899.12 1,378,808.65
Add:Partner A, Capital 330,000.00 Partner B, Capital 330,000.00 Income/(Loss) 16,463.63 1,136,631.06 1,321,400.92 1,119,547.66 1,315,633.90
Less:Partner A, Drawing 8,231.81 568,315.53 660,700.46 559,773.83 657,816.95
Partner B, Drawing 4,939.09 340,989.32 396,420.28 335,864.30 394,690.17
Partner's Capital End 663,292.73 890,618.94 1,154,899.12 1,378,808.65 1,641,935.43
10 REVENUE Revenue for Cakes Demand in Units for First Week 248 Multiplied by: Discounted Price per unit 75
Sales for First Week 18,619
Demand in Units for the Rest of the Year 6,703 12,186 12,474 12,762 13,050
Multiplied by: Price per unit 150.00 150.00 156.00 156.00 162.24
Sales for the Rest of the Year 1,005,450.00 1,827,900.00 1,945,944.00 1,990,872.00 2,117,232.00
Total Sales for Cakes 1,024,068.75 1,827,900.00 1,945,944.00 1,990,872.00 2,117,232.00
Revenue for Cupcakes Demand in Units for First Week of Operations 248 Multiplied by: Discounted Price per unit 72.5
Sales for First Week 17,944
Demand in Units for the Rest of the Year 6683 12150 12438 12726 13014
Multiplied by: Price per unit 145.00 145.00 150.80 150.80 156.83
Sales for the Rest of the Year 969,035.00 1,761,750.00 1,875,650.40 1,919,080.80 2,041,011.65
Total Sales for CupCakes 986,978.75 1,761,750.00 1,875,650.40 1,919,080.80 2,041,011.65
Revenue for Cookies Demand in Units for First Week of Operations 352 Multiplied by: Discounted Price per unit 70
Sales for First Week 24,649
Demand in Units for the Rest of the Year 9507 17298 17694 18090 18504
Multiplied by: Price per unit 140.00 140.00 145.60 145.60 151.42
Sales for the Rest of the Year 1,330,980.00 2,421,720.00 2,576,246.40 2,633,904.00 2,801,949.70
Total Sales for Cookies 1,355,629.10 2,421,720.00 2,576,246.40 2,633,904.00 2,801,949.70
Revenue for Ice Cream Demand in Units for First Week of Operations 413 Multiplied by: Discounted Price per unit 72.5
Sales for First Week 29,906
Demand in Units for the Rest of the Year 11138 20268 20736 21204 21690
Multiplied by: Price per unit 145.00 145.00 150.80 150.80 156.83
Sales for the Rest of the Year 1,615,010.00 2,938,860.00 3,126,988.80 3,197,563.20 3,401,686.08
Total Sales for Ice Cream 1,644,916.25 2,938,860.00 3,126,988.80 3,197,563.20 3,401,686.08
Revenue for Hot Chocolate Drinks Demand in Units for First Week of Operations 370 Multiplied by: Discounted Price per unit 70
Sales for First Week 25,909
Demand in Units for the Rest of the Year 9993 18180 18594 19026 19458
Multiplied by: Price per unit 140.00 140.00 145.60 145.60 151.42
Sales for the Rest of the Year 1,399,020.00 2,545,200.00 2,707,286.40 2,770,185.60 2,946,408.19
Total Sales for Hot Chocolate Drinks 1,424,929.10 2,545,200.00 2,707,286.40 2,770,185.60 2,946,408.19
EPICUREAN | 130
Revenue for Cold Chocolate Drinks Demand in Units for First Week of Operations 340 Multiplied by: Discounted Price per unit 70
Sales for First Week 23,783
Demand in Units for the Rest of the Year 9173 16668 17064 17460 17856
Multiplied by: Price per unit 140.00 140.00 145.60 145.60 151.42
Sales for the Rest of the Year 1,284,220.00 2,333,520.00 2,484,518.40 2,542,176.00 2,703,826.94
Total Sales for Cold Chocolate Drinks 1,308,002.50 2,333,520.00 2,484,518.40 2,542,176.00 2,703,826.94
Total Sales 7,744,524.45 13,828,950.00 14,716,634.40 15,053,781.60 16,012,114.56
Sales for the first year represents sales for the first seven (7) months of operations since there are no operations yet in the first five (5) months of
the first year. Hence, the demand in units for each product the first year is multiplied by the fraction of 7/12 (7 months of operations out of 12) to
determine the sales in uinits for the first year for each product. 11 COST OF SALES 2017 2018 2019 2020 2021
Raw Materials Inventory, Beginning - 151,701.92 161,435.75 171,737.13 182,673.75
Add: Purchases of Raw Materials 4,621,741.69 7,663,878.48 8,155,449.88 8,675,811.89 9,226,336.94
Total Raw Materials 4,621,741.69 7,815,580.40 8,316,885.63 8,847,549.02 9,409,010.69
Less: Raw Materials Inventory, End 151,701.92 161,435.75 171,737.13 182,673.75 194,400.30
Raw Materials Inventory Used 4,470,039.77 7,654,144.65 8,145,148.50 8,664,875.27 9,214,610.38
Direct Labor 770,000.00 1,372,800.00 1,427,712.00 1,484,820.48 1,544,213.30
Manufacturing Overhead 169,007.58 297,352.40 305,282.47 313,529.75 322,106.92
Total Manufacturing Cost 5,409,047.36 9,324,297.05 9,878,142.97 10,463,225.50 11,080,930.60
Add: Work in Process, Beginning - - - 0 -
Total Cost of Goods put in production 5,409,047.36 9,324,297.05 9,878,142.97 10,463,225.50 11,080,930.60
Less: Work in Process, End - - - 0 -
Cost of Goods Manufactured 5,409,047.36 9,324,297.05 9,878,142.97 10,463,225.50 11,080,930.60
Add: Finished Goods Inventory, Beginning - 25,575.74 26,408.73 27,986.50 29,640.65
Goods Available for Sale 5,409,047.36 9,349,872.78 9,904,551.70 10,491,212.00 11,110,571.25
Less: Finished Goods Inventory, End 25,575.74 26,408.73 27,986.50 29,640.65 31,411.28
Cost of Goods Sold 5,383,471.62 9,323,464.06 9,876,565.20 10,461,571.35 11,079,159.97
. 12 EXPENSES 2017 2018 2019 2020 2021
Salaries & Wages 469,140.00 836,409.60 869,865.98 904,660.62 940,847.05
SSS Premium Contribution 74,773.02 130,834.32 137,022.00 138,774.00 142,328.40
PhilHeath Premium Contribution 14,087.50 24,150.00 25,050.00 25,650.00 27,150.00
HDMF Premium Contribution 24,782.80 44,184.00 45,950.88 47,789.77 62,126.53
Taxes and Licenses 16,661.67 525.80 8,327.55 6,939.35 8,327.55
Employee Benefits 177,020.00 184,100.80 191,464.83 199,123.43 207,088.36
Depreciation Expense 38,556.83 66,097.42 66,097.42 66,097.42 66,097.42
Rent Expense 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00
Professional Fees 20,000.00 20,800.00 21,632.00 22,497.28 23,397.17
Advertising and Promotion 9,187.50 16,380.00 17,035.20 17,716.61 18,425.27
Office Supplies 16,870.00 30,076.80 31,279.87 32,531.07 33,832.31
Communication 21,000.00 37,440.00 38,937.60 40,495.10 42,114.91
Meetings and Conferences 7,000.00 12,480.00 12,979.20 13,498.37 14,038.30
Repairs and Maintenance 3,000.00 6,240.00 6,489.60 6,749.18 7,019.15
Insurance 15,230.88 15,840.12 16,473.72 17,132.67 17,817.98
Miscellaneous Expense 5,000.00 10,400.00 10,816.00 11,248.64 11,698.59
Utilities 66,823.16 119,048.43 142,051.74 146,912.95 151,968.60
Interest Expense 158,400.00 126,720.00 110,880.00 95,040.00 79,200.00
Training Expense 39,922.19 0.00 0.00 0.00 0.00
TOTAL 2,337,533.36 2,881,727.29 2,952,353.60 2,992,856.45 3,053,477.59
EPICUREAN | 131
13 PAYROLL FUND Number
Salary/Wage
Rate
Months/Days Cost 2017 2018 2019 2020
2021
per year
DIRECT LABOR
Chef/Store Manager 1 50,000.00 12 600,000.00 350,000.00 624,000.00 648,960.00 674,918.40 701,915.14
Kitchen Crew 4 15,000.00 12 720,000.00 420,000.00 748,800.00 778,752.00 809,902.08 842,298.16
Total Direct 110,000.00 1,320,000.00 770,000.00 1,372,800.00 1,427,712.00 1,484,820.48 1,544,213.30
INDIRECT LABOR
Front Crew/Cashier 4 400.00 360 576,000.00 336,000.00 599,040.00 623,001.60 647,921.66 673,838.53
Shop Cleaner 2 317.00 360 228,240.00 133,140.00 237,369.60 246,864.38 256,738.96 267,008.52
Total Indirect Labor 67,020.00 469,140.00 836,409.60 869,865.98 904,660.62 940,847.05
Total 1,239,140.00 2,209,209.60 2,297,577.98 2,389,481.10 2,485,060.35
14 EMPLOYER CONTRIBUTIONS
SSS/ PhilHealth/ HDMF Premium Contributions (Monthly for 2017) N A B C (A+B+C)*N
Employer Classification No.
SSS (ER) HDMF (ER)
Philhealth
(ER) Total SSS (ER) HDMF (ER)
Chef/Store Manager 1.00 1,178.70 1,000.00 437.50 2,616.20 1178.7 1000
Kitchen Crew 4.00 1,141.89 300.00 187.50 6,517.56 4567.56 1200
Front Crew/Cashier 4.00 884.00 240.00 150.00 5,096.00 3536 960
Shop Cleaner 2.00 699.80 190.2 112.50 2,005.00 1399.6 380.4
Total 3,904.39 1,730.20 887.50 16,234.76 10681.86 3540.4
74773.02 24782.8
SSS/ PhilHealth/ HDMF Premium Contributions (Monthly for 2018) N A B C (A+B+C)*N
No.
SSS (ER) HDMF (ER)
Philhealth
(ER) Total SSS (ER) HDMF (ER)
Chef/Store Manager 1.00 1,178.70 1,040.00 437.50 2,656.20 1178.7 1040
Kitchen Crew 4.00 1,141.89 312.00 187.50 6,565.56 4567.56 1248
Front Crew/Cashier 4.00 920.80 249.60 150.00 5,281.60 3683.2 998.4
Shop Cleaner 2.00 736.70 197.8 112.50 2,094.00 1473.4 395.6
Total 3,978.09 1,799.40 887.50 16,597.36 10902.86 3682
130834.32 44184
SSS/ PhilHealth/ HDMF Premium Contributions (Monthly for 2019) N A B C (A+B+C)*N
No.
SSS (ER) HDMF (ER)
Philhealth
(ER) Total SSS (ER) HDMF (ER)
Chef/Store Manager 1.00 1,178.70 1,081.60 437.50 2,697.80 1178.7 1081.6
Kitchen Crew 4.00 1,178.70 324.48 200.00 6,812.72 4714.8 1297.92
Front Crew/Cashier 4.00 994.50 259.58 150.00 5,616.32 3978 1038.32
Shop Cleaner 2.00 773.50 205.7 125.00 2,208.40 1547 411.4
Total 4,125.40 1,871.36 912.50 17,335.24 11418.5 3829.24
137022 45950.88
SSS/ PhilHealth/ HDMF Premium Contributions (Monthly for 2020) N A B C (A+B+C)*N
No.
SSS (ER) HDMF (ER) Philhealth
(ER) Total SSS (ER) HDMF (ER)
EPICUREAN | 132
Chef/Store Manager 1.00 1,178.70 1,124.86 437.50 2,741.06 1178.7 1124.864
Kitchen Crew 4.00 1,178.70 337.46 200.00 6,864.64 4714.8 1349.8368
Front Crew/Cashier 4.00 1,031.00 269.97 162.50 5,853.88 4124 1079.88
Shop Cleaner 2.00 773.50 213.95 125.00 2,224.90 1547 427.9
Total 4,161.90 1,946.24 925.00 17,684.48 11564.5 3982.4808
138774 47789.7696
SSS/ PhilHealth/ HDMF Premium Contributions (Monthly for 2021) N A B C (A+B+C)*N
No.
SSS (ER) HDMF (ER)
Philhealth
(ER) Total SSS (ER) HDMF (ER)
Chef/Store Manager 1.00 1,178.70 1,169.86 437.50 2,786.06 1178.7 1169.85856
Kitchen Crew 4.00 1,178.70 350.96 212.50 6,968.63 4714.8 1403.830272
Front Crew/Cashier 4.00 1,068.20 280.77 175.00 6,095.88 4272.8 1123.08
Shop Cleaner 2.00 847.20 222.5 137.50 2,414.40 1694.4 445
Total 4,272.80 2,024.09 962.50 18,264.97 11860.7 4141.768832
142328.4 62126.53248
EPICUREAN | 133
15 RENT EXPENSES MONTH (Year 2017 )
January February March April May June July August September October November December
Store Rental 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000
Total Rentals 1,200,000
YEAR 2018 2019 2020 2021 Store Rental 1,200,000 1,200,000 1,200,000 1,200,000 Total Rentals 1,200,000 1,200,000 1,200,000 1,200,000
16 WITHHOLDING TAX PAYABLE MONTH (Year 2017)
January February March April May June July August September October November December
On Salary 24765.86 24765.86 24765.86 24765.86 24765.86 24765.86 24765.86
On Store Rental 2400 2400 2400 2400 2400 2400 2400
On Professional Fees 200 200
Total Withholding
tax payable 0 0 0 0 0 27365.86 27165.86 27165.86 27165.86 27165.86 27165.86 27365.86
Year 2018 2019 2020 2021
On Salary
26,150.50
27,540.82 29,628.04
31,761.09
On Store Rental
2,400.00
2,400.00 2,400.00
2,400.00
On Professional Fees
208.00
216.32 224.98
233.97
Total Withholding
tax payable
28,758.50
30,157.14 32,253.02 34395.06
17 ACCRUED EXPENSES
MONTH (Year 2017)
January February March April May June July August September October November December
13th month pay 177,020.00
Interest Expenses 13200 13200 13200 13200 13200 13200 13200 13200 13200 13200 13200 13200
Power and Light-Manufacturing
Overhead 14241.205 14241.205 14241.205 14241.205 14241.205 14241.205 14241.205
Power and Light-Periodic 9363.46 9363.46 9363.46 9363.46 9363.46 9363.46 9363.46
Water- Manufacturing Overhead 1644.354 1644.354 1644.354 1644.354 1644.354 1644.354 1644.354
Water- Periodic 182.706 182.706 182.706 182.706 182.706 182.706 182.706
Total 13200 13200 13200 13200 13200 38631.725 38631.725 38631.725 38631.725 38631.725 38631.725 215651.725
Year 2018 2019 2020 2021 13th month pay 184,100.80 191,464.83 199,123.43 207,088.36
Interest Expenses -
126,720.00
110,880.00 95,040.00
79,200.00
Power and Light-
Manufacturing Overhead 177730.28 184839.4912 192233.071 199922.3937
EPICUREAN | 134
Power and Light-Periodic 116855.96 121530.1984 126391.406 131447.0626
Water- Manufacturing
Overhead 20521.54 21342.4016 22196.0977 23083.94157
Water- Periodic 2192.472 20521.54 20521.54 20521.54 Total 488551.08 487184.3232 486396.496 486210.756
18 RAW MATERIALS INVENTORY
MONTH (Year 2017)
January February March April May June July August September October November December
Beginning Balance 0.00 148,278.94 148,278.94 148,278.94 148,278.94 148,278.94 148,278.94
RM Purchases 804,942.79 635,481.15 635,481.15 635,481.15 635,481.15 635,481.15 639,393.13
Used in Production 656,663.86 635,481.15 635,481.15 635,481.15 635,481.15 635,481.15 635,970.15
Ending Balance 148,278.94 148,278.94 148,278.94 148,278.94 148,278.94 148,278.94 151,701.92
Year 2018 2019 2020 2021 Beginning Balance 151,701.92 161,435.75 171,737.13 182,673.75 RM Purchases 8,140,613.43 8,662,884.24 9,215,646.45 9,802,626.91 Used in Production 8,130,879.60 8,652,582.86 9,204,709.83 9,790,900.35 Ending Balance 161,435.75 171,737.13 182,673.75 194,400.30
19 TRAINING EXPENSE
Employees No. Salary/Wage
Rate No. of Days Chef/Store Manager 1.00 50,000.00 4 6,666.67 Kitchen Crew 4.00 15,000.00 3 6,000.00 Front Crew/Cashier 4.00 400.00 3 4,800.00 17,466.67 Estimated Raw Materials Used 21,182.71 Cost/month No. of Days Utilities Expense 9,546.17 4 1,272.82
Total Training
Expense 39,922.19
20 VAT PAYABLE 2017
January February March April May June July August September October November December
Output VAT
Sales
132,763.28
132,763.28 132,763.28 132,763.28 132,763.28 132,763.28 132,763.28
Input VAT Equipment Basic Tools and Measuring Utensils 37.26 37.26 37.26 37.26 37.26 37.26 37.26
Mixing Tools 43.44 43.44 43.44 43.44 43.44 43.44 43.44
Specialty Tools 18.61 18.61 18.61 18.61 18.61 18.61 18.61
Baking Pans 19.55 19.55 19.55 19.55 19.55 19.55 19.55
Kitchen Supplies 14.20 14.20 14.20 14.20 14.20 14.20 14.20
Utensils 57.68 57.68 57.68 57.68 57.68 57.68 57.68
Furniture and Fixtures 312.86 312.86 312.86 312.86 312.86 312.86 312.86
Equipment 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71
Other Equipment 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68
EPICUREAN | 135
Total Equipment 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98
Leasehold
Improvement 1,514 1,514 1,514 1,514 1,514 1,514 1,514
Raw Materials 76,257.74 76,257.74 76,257.74 76,257.74 76,257.74 76,257.74 76,257.74
Total Input VAT 116,357.36 116,357.36 116,357.36 116,357.36 116,357.36 116,357.36 116,357.36
VAT PAYABLE
16,405.92
16,405.92 16,405.92 16,405.92 16,405.92 16,405.92 16,405.92
2018
January February March April May June July August September October November December
Output VAT Sales 138,289.50 138,289.50 138,289.50 138,289.50 138,289.50 138,289.50 138,289.50 138,289.50 138,289.50 138,289.50 138,289.50 138,289.50
Input VAT Equipment
Basic Tools and
Measuring Utensils 37.26 37.26 37.26 37.26 37.26 37.26 37.26 37.26 37.26 37.26 37.26 37.26
Mixing Tools 43.44 43.44 43.44 43.44 43.44 43.44 43.44 43.44 43.44 43.44 43.44 43.44
Specialty Tools 18.61 18.61 18.61 18.61 18.61 18.61 18.61 18.61 18.61 18.61 18.61 18.61
Baking Pans 19.55 19.55 19.55 19.55 19.55 19.55 19.55 19.55 19.55 19.55 19.55 19.55
Kitchen Supplies 14.20 14.20 14.20 14.20 14.20 14.20 14.20 14.20 14.20 14.20 14.20 14.20
Utensils 57.68 57.68 57.68 57.68 57.68 57.68 57.68 57.68 57.68 57.68 57.68 57.68
Furniture and
Fixtures 312.86 312.86 312.86 312.86 312.86 312.86 312.86 312.86 312.86 312.86 312.86 312.86
Equipment 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71
Other Equipment 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68
Total Equipment 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98
Leasehold Improvement 1,514 1,514 1,514 1,514 1,514 1,514 1,514 1,514 1,514 1,514 1,514 1,514
Raw Materials 81,138.85 81,138.85 81,138.85 81,138.85 81,138.85 81,138.85 81,138.85 81,138.85 81,138.85 81,138.85 81,138.85 81,138.85
Total Input VAT 121,238.47 121,238.47 121,238.47 121,238.47 121,238.47 121,238.47 121,238.47 121,238.47 121,238.47 121,238.47 121,238.47 121,238.47
VAT PAYABLE 17,051.03 17,051.03 17,051.03 17,051.03 17,051.03 17,051.03 17,051.03 17,051.03 17,051.03 17,051.03 17,051.03 17,051.03
2019
January February March April May June July August September October November December
Output VAT Sales 147,166.34 147,166.34 147,166.34 147,166.34 147,166.34 147,166.34 147,166.34 147,166.34 147,166.34 147,166.34 147,166.34 147,166.34
Input VAT Equipment
Basic Tools and
Measuring Utensils 37.26 37.26 37.26 37.26 37.26 37.26 37.26 37.26 37.26 37.26 37.26 37.26
Mixing Tools 43.44 43.44 43.44 43.44 43.44 43.44 43.44 43.44 43.44 43.44 43.44 43.44
Specialty Tools 18.61 18.61 18.61 18.61 18.61 18.61 18.61 18.61 18.61 18.61 18.61 18.61
Baking Pans 19.55 19.55 19.55 19.55 19.55 19.55 19.55 19.55 19.55 19.55 19.55 19.55
Kitchen Supplies 14.20 14.20 14.20 14.20 14.20 14.20 14.20 14.20 14.20 14.20 14.20 14.20
Utensils 57.68 57.68 57.68 57.68 57.68 57.68 57.68 57.68 57.68 57.68 57.68 57.68
Furniture and Fixtures 312.86 312.86 312.86 312.86 312.86 312.86 312.86 312.86 312.86 312.86 312.86 312.86
Equipment 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71
Other Equipment 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68
Total Equipment 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98
Leasehold
Improvement 1,514 1,514 1,514 1,514 1,514 1,514 1,514 1,514 1,514 1,514 1,514 1,514
Raw Materials 86,345.06 86,345.06 86,345.06 86,345.06 86,345.06 86,345.06 86,345.06 86,345.06 86,345.06 86,345.06 86,345.06 86,345.06
Total Input VAT 126,444.68 126,444.68 126,444.68 126,444.68 126,444.68 126,444.68 126,444.68 126,444.68 126,444.68 126,444.68 126,444.68 126,444.68
EPICUREAN | 136
VAT PAYABLE 20,721.66 20,721.66 20,721.66 20,721.66 20,721.66 20,721.66 20,721.66 20,721.66 20,721.66 20,721.66 20,721.66 20,721.66
2020
January February March April May June July August September October November December
Output VAT Sales 150,537.82 150,537.82 150,537.82 150,537.82 150,537.82 150,537.82 150,537.82 150,537.82 150,537.82 150,537.82 150,537.82 150,537.82
Input VAT Equipment
Basic Tools and
Measuring Utensils 37.26 37.26 37.26 37.26 37.26 37.26 37.26 37.26 37.26 37.26 37.26 37.26
Mixing Tools 43.44 43.44 43.44 43.44 43.44 43.44 43.44 43.44 43.44 43.44 43.44 43.44
Specialty Tools 18.61 18.61 18.61 18.61 18.61 18.61 18.61 18.61 18.61 18.61 18.61 18.61
Baking Pans 19.55 19.55 19.55 19.55 19.55 19.55 19.55 19.55 19.55 19.55 19.55 19.55
Kitchen Supplies 14.20 14.20 14.20 14.20 14.20 14.20 14.20 14.20 14.20 14.20 14.20 14.20
Utensils 57.68 57.68 57.68 57.68 57.68 57.68 57.68 57.68 57.68 57.68 57.68 57.68
Furniture and
Fixtures 312.86 312.86 312.86 312.86 312.86 312.86 312.86 312.86 312.86 312.86 312.86 312.86
Equipment 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71
Other Equipment 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68
Total Equipment 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98
Leasehold
Improvement 1,514 1,514 1,514 1,514 1,514 1,514 1,514 1,514 1,514 1,514 1,514 1,514
Raw Materials 86,758.12 86,758.12 86,758.12 86,758.12 86,758.12 86,758.12 86,758.12 86,758.12 86,758.12 86,758.12 86,758.12 86,758.12
Total Input VAT 126,857.74 126,857.74 126,857.74 126,857.74 126,857.74 126,857.74 126,857.74 126,857.74 126,857.74 126,857.74 126,857.74 126,857.74
VAT PAYABLE 23,680.08 23,680.08 23,680.08 23,680.08 23,680.08 23,680.08 23,680.08 23,680.08 23,680.08 23,680.08 23,680.08 23,680.08
2021
January February March April May June July August September October November December
Output VAT
Sales
160,121.15
160,121.15 160,121.15
160,121.15 160,121.15
160,121.15
160,121.15 160,121.15 160,121.15 160,121.15 160,121.15 160,121.15
Input VAT Equipment
Basic Tools and
Measuring Utensils 37.26 37.26 37.26 37.26 37.26 37.26 37.26 37.26 37.26 37.26 37.26 37.26
Mixing Tools 43.44 43.44 43.44 43.44 43.44 43.44 43.44 43.44 43.44 43.44 43.44 43.44
Specialty Tools 18.61 18.61 18.61 18.61 18.61 18.61 18.61 18.61 18.61 18.61 18.61 18.61
Baking Pans 19.55 19.55 19.55 19.55 19.55 19.55 19.55 19.55 19.55 19.55 19.55 19.55
Kitchen Supplies 14.20 14.20 14.20 14.20 14.20 14.20 14.20 14.20 14.20 14.20 14.20 14.20
Utensils 57.68 57.68 57.68 57.68 57.68 57.68 57.68 57.68 57.68 57.68 57.68 57.68
Furniture and
Fixtures 312.86 312.86 312.86 312.86 312.86 312.86 312.86 312.86 312.86 312.86 312.86 312.86
Equipment 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71 1,294.71
Other Equipment 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68 36,787.68
Total Equipment 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98 38,585.98
Leasehold Improvement 1,514 1,514 1,514 1,514 1,514 1,514 1,514 1,514 1,514 1,514 1,514 1,514
Raw Materials 91,854.83 91,854.83 91,854.83 91,854.83 91,854.83 91,854.83 91,854.83 91,854.83 91,854.83 91,854.83 91,854.83 91,854.83
Total Input VAT 131,954.45 131,954.45 131,954.45 131,954.45 131,954.45 131,954.45 131,954.45 131,954.45 131,954.45 131,954.45 131,954.45 131,954.45
VAT PAYABLE 28,166.69
28,166.69 28,166.69
28,166.69 28,166.69
28,166.69
28,166.69 28,166.69 28,166.69 28,166.69 28,166.69 28,166.69
EPICUREAN | 137
21 COMPUTATION OF FINISHED GOODS INVENTORY
a b a + b = c d c x d
Product 2017 Total Demand
2018 Daily Demand
Production in Units*
RM Cost/Unit Total RM
Product Mix
Cake 6951 33.85 6984.85 56.3681581 393723.129 8.81%
Cupcake 6930 33.75 6963.75 60.44484374 420922.781 9.42%
Cookies 9859.5 48.05 9907.55 53.66147941 531653.79 11.89%
Ice Cream 11550 56.3 11606.3 122.6744414 1423796.37 31.85%
Hot Chocolate Drink 10363.5 50.5 10414 83.378334 868301.97 19.42%
Cold Chocolate
Drink 9513 46.3 9559.3 86.99818345 831641.735 18.60% TOTAL 4470039.77 100.00%
2017
Product
Product Share in COGM
(Product Mix) x
(COGM)
Finished Goods, end
(Daily
Demand Succeeding
Year ÷
Production)
Cake
464,650.09
2,251.79
Cupcake
496,749.60
2,407.51
Cookies
627,428.16
3,042.92
Ice Cream
1,680,285.10
8,150.75
Hot Chocolate Drink
1,024,721.58
4,696.12
Cold Chocolate Drink
981,457.21
4,753.64
TOTAL
25,302.74
2018
Product
Product Share
in COGM (Product Mix) x
(COGM)
Finished
Goods, end (Daily
Demand
Succeeding Year ÷
Production)
Cake
820,365.28
2,326.03
Cupcake
877,097.50
2,487.06
EPICUREAN | 138
Cookies
1,108,587.29
3,140.98
Ice Cream
2,969,453.88
8,415.03
Hot Chocolate Drink
1,810,332.33
5,128.65
Cold Chocolate
Drink
1,731,833.27
4,910.97
TOTAL
26,408.73
2019
Product
Product Share in COGM
(Product Mix) x
(COGM)
Finished Goods, end
(Daily
Demand Succeeding
Year ÷
Production)
Cake
870,003.86
2,465.47
Cupcake
930,232.45
2,636.32
Cookies
1,174,814.80
3,326.96
Ice Cream
3,147,458.73
8,914.94
Hot Chocolate Drink
1,918,261.49
5,436.85
Cold Chocolate
Drink
1,836,846.07
5,205.96
TOTAL
27,986.50
2020
Product
Product Share
in COGM
(Product Mix) x (COGM)
Finished
Goods, end
(Daily Demand
Succeeding
Year ÷ Production)
Cake
921,706.68
2,610.66
Cupcake
985,578.92
2,791.75
Cookies
1,243,774.77
3,523.99
Ice Cream
3,332,824.62
9,443.21
Hot Chocolate Drink
2,032,549.00
5,757.81
EPICUREAN | 139
Cold Chocolate Drink
1,946,232.46
5,513.15
TOTAL
29,640.56
2021
Product
Product Share in COGM
(Product Mix) x
(COGM)
Finished Goods, end
(Daily
Demand Succeeding
Year ÷
Production)
Cake
976,110.44
2,767.13
Cupcake
1,043,817.91
2,959.26
Cookies
1,317,597.44
3,734.82
Ice Cream
3,530,758.31
10,007.11
Hot Chocolate Drink
2,152,809.64
6,100.99
Cold Chocolate
Drink
2,061,335.34
5,842.09
TOTAL
31,411.40
EPICUREAN | 140
G. FINANCIAL ANALYSES
1. Financial Ratios
LIQUIDITY RATIO 2017 2018 2019 2020 2021
Current Ratio 3.048 2.814 2.982 3.207 3.330
Quick Ratio 2.447 2.328 2.505 2.705 2.837
Net Working Capital 944,462.55 1,075,635.70 1,244,950.84 1,373,895.32 1,542,057.04
Current ratio, quick ratio, and net working capital measure the firm’s ability to pay its short-
term liabilities. As we can see above, Epicurean’s high liquidity ratios for 5 years means that paying
its short-term liabilities would not pose a big problem. That is because the company has a current
asset of Php 3.048 in every peso of their current liability; they have Php 2.447 of quick asset (i.e. cash
and AR) for every peso of the current liability; and they have current assets in excess of current
liability of almost one million. Although there’s a decrease in current and quick ratio in 2018, the
company still has ample current assets to pay its current liabilities. Although this might be the case,
it could also mean that the establishment employs inefficient cash management.
PROFITABILITY RATIO 2017 2018 2019 2020 2021
Gross profit margin 0.3049 0.3258 0.3289 0.3051 0.3081
Net profit margin 0.0021 0.0814 0.0890 0.0736 0.0815
Return on Assets 0.0051 0.3382 0.3898 0.3345 0.3894
Return on Equity 0.0248 1.2669 1.1389 0.8078 0.7988
Total Asset Turnover 2.3928 4.1550 4.3780 4.5431 4.7800
Fixed Asset Turnover 4.2301 8.3328 9.8881 11.4297 13.9744
Profitability ratios measure the business’ capability to generate earnings compared to its
expenses and other relevant costs incurred during a specific period of time. The gross profit margin
of Epicurean, though not that high, is enough to cover the period cost to generate a net income.
However, the net profit margin of the establishment is noticeably low. This means that Epicurean’s
period costs do not offer a leeway for any excessive increase because such increases could lead to a
net loss. The considerably low return on net assets in the first year is largely due to the incurrence of
one-year rent expense with only seven months of operation. It has substantially grown in the
EPICUREAN | 141
succeeding years because of full year operations. This positive return on net assets is a good indication
that the establishment need not incur additional debt in the future. The return on equity of more than
100% in the second and third years of operations show how well the investment of the partners is
earning. However, the decrease in this ratio in the fourth and fifth years are the result of the higher
growth in equity than the growth in net income. Lastly, total asset turnover and fixed asset turnover
is increasing. This implies efficient use of company’s assets.
LEVERAGE 2017 2018 2019 2020 2021
Total debt to assets ratio 0.7951 0.7331 0.6577 0.5859 0.5125
Total debt to equity ratio 3.8795 2.7463 1.9218 1.4148 1.0512
According to Loth, “the debt ratio compares a company's total debt to its total assets, which
is used to gain a general idea as to the amount of leverage being used by a company. A low percentage
means that the company is less dependent on leverage, i.e., money borrowed from and/or owed to
others. The lower the percentage, the less leverage a company is using and the stronger its equity
position. In general, the higher the ratio, the more risk that company is considered to have taken
on.” In the table presented above, it can be observed that the company is largely dependent on debt.
In 2017, the company is financed by 80% debt. And by the end of 2021, its debt decreased to 51%.
This means that through the years, the establishment’s equity is gaining strength.
“The D/E ratio indicates how much debt a company is using to finance its assets relative to
the amount of value represented in shareholders’ equity (Investopedia).” In financing for the initial
project cost of Epicurean, the partners took a huge risk by largely leaning on debt which is four times
larger than its equity. Nevertheless, this risk was greatly reduced in the fifth year of operations when
total debt became roughly equivalent to equity.
EPICUREAN | 142
2. Horizontal and Vertical Analysis
2.1. Horizontal Analysis
Statement of Financial Operations
2017 2018 2019 2020 2021
SALES 100.00% 178.56% 190.03% 194.38% 206.75%
COGS 100.00% 173.19% 183.46% 194.33% 205.80%
GROSS PROFIT 100.00% 190.83% 205.00% 194.50% 208.93%
EXPENSES
Salaries & Wages 100.00% 178.29% 185.42% 192.83% 200.55%
SSS Premium
Contribution 100.00% 174.98% 183.25% 185.59% 190.35%
PhilHealth
Premium
Contribution 100.00% 171.43% 177.82% 182.08% 192.72%
HDMF Premium
Contribution 100.00% 178.28% 185.41% 192.83% 250.68%
Taxes and
Licenses 100.00% 3.16% 49.98% 41.65% 49.98%
Employee Benefits 100.00% 104.00% 108.16% 112.49% 116.99%
Depreciation
Expense 100.00% 171.43% 171.43% 171.43% 171.43%
Rent Expense 100.00% 100.00% 100.00% 100.00% 100.00%
Professional Fees 100.00% 104.00% 108.16% 112.49% 116.99%
Advertising and
Promotion 100.00% 178.29% 185.42% 192.83% 200.55%
Office Supplies 100.00% 178.29% 185.42% 192.83% 200.55%
Communication 100.00% 178.29% 185.42% 192.83% 200.55%
Meetings and
Conferences 100.00% 178.29% 185.42% 192.83% 200.55%
Repairs and
Maintenance 100.00% 208.00% 216.32% 224.97% 233.97%
Insurance 100.00% 104.00% 108.16% 112.49% 116.99%
Miscellaneous
Expense 100.00% 208.00% 216.32% 224.97% 233.97%
Utilities 100.00% 178.15% 212.58% 219.85% 227.42%
Interest Expense 100.00% 90.00% 80.00% 70.00% 60.00%
Training Expense 100.00% 0.00% 0.00% 0.00% 0.00%
Total Expenses 100.00% 123.96% 126.98% 128.71% 131.31%
NET
INCOME/(LOSS)
BEFORE TAX 100.00% 6836.54% 7958.84% 6732.78% 7923.81%
EPICUREAN | 143
Provision for
Income Tax (0.3) 100.00% 6836.54% 7958.84% 6732.78% 7923.81%
NET
INCOME/(LOSS)
AFTER TAX 100.00% 6836.54% 7958.84% 6732.78% 7923.81%
* with 2017 as base year
From year 2017 to year 2021, the sales increase in an average of 27% yearly. This increasing
sales trend is due to the increasing number of units sold every year and also due to the increasing
price of the products sold. The prices are increased by 4% every two years. Compared to sales, the
increase in cost of goods sold is a slightly lower with an average increase of 26% annually. Given
the higher annual increase in sales compared to cost of goods sold, with an average of 32% increase
in gross profit. Thus, it follows that gross profit is at increasing trend.
The operation in the first year is only for seven months thus resulting to a relatively higher
percentage, increase in expenses in next period. The increasing percentage in the selling and
administrative expenses yearly is due to the reflected inflation rate considered by the proponents. The
remaining five months are allotted for the renovation of the establishment. The rental rate for the next
five years is fixed; this is based on the agreement of Epicurean and its lessee. The company pays its
creditors interest incurred and principal repayments annually for five years. This is the reason why
the interest expenses decrease every year. There are no additional training expenses in the latter years
because employee trainings are conducted only in the first year.
All in all, the operations of Epicurean will result to an increase of its income which is an
indicator that it has a very satisfactory financial operation. The increase in net income means more
profit to be shared by the partners and more benefits, in terms of taxes paid to the government, it
would contribute to the community. Also, it would attract more customers and creditors since it has
good financial operations as evidenced by its financial statements.
Statement of Financial Condition
ASSET
2017 2018 2019 2020 2021
CURRENT ASSETS:
Cash & Cash Equivalents 100.00% 122.67% 139.93% 149.94% 167.33% Other Current Assets 100.00% 103.81% 108.10% 112.64% 117.50%
EPICUREAN | 144
Total 100.00% 118.95% 133.65% 142.58% 157.50%
NON-CURRENT ASSETS:
Property & Equipment, net 100.00% 90.65% 81.29% 71.94% 62.58%
TOTAL ASSETS 100.00% 102.83% 103.86% 102.38% 103.50%
LIABILITIES & PARTNERS’ EQUITY
LIABILITIES:
Current Liabilities
Accrued and other payables 100.00% 106.02% 113.89% 122.07% 131.46% Income Tax Payable 100.00% 6903.89% 8026.18% 6800.13% 7991.15% Loans Payable 100.00% 100.00% 100.00% 100.00% 100.00% TOTAL 100.00% 128.57% 136.20% 134.98% 143.51% Non-Current Liabilities Loans Payable 100.00% 87.50% 75.00% 62.50% 50.00% TOTAL LIABILITIES 100.00% 94.86% 85.97% 75.49% 66.76%
PARTNERS' EQUITY:
Partners' Capital 100.00% 134.27% 174.12% 207.87% 247.54%
TOTAL LIABILITES & PARTNERS’
EQUITY 100.00% 100.00% 102.94% 104.03% 102.62%
* with 2017 as base year
The increase in Cash and Cash Equivalents is due to the increasing cash receipts from the
sales of the company. The salaries and wages increases annually and so, the amount allotted to payroll
fund also increases which is reflected on the increasing trend of Other Current Assets. With the
increase in cash availability, some amounts should be put in an investment account if such is more
than the necessary cash reserves. On the other hand, the increase in percentages of the Other Current
Assets is affected by the increase in cost of inventory purchased. The cost of inventoriable items
increases annually based on the inflation rate which is 4%. Moreover, there is a constant decrease on
the Property, Plant, and Equipment because of the annual depreciation and also there is no additional
acquisition of PPE during the first five years of the operations.
As a result of the decreasing trend in Non-Current Assets, the overall Total Assets is
decreasing despite the increasing trend in the Current Assets. The annual decrease in percentage of
Property, Plant, and Equipment is much higher than the yearly increase in Total Current Assets, thus
resulting in a decreasing trend in Total Assets for the first four years. However, on the third year, the
EPICUREAN | 145
percentage increase in Total Current Assets is much higher than the percentage decrease in PPE due
to the increase in the product price and quantity sold.
The accrued and other payables account composes only of the purchases on account of
inventories. The prices of the inventories increase by 4% every year because of the inflation. And
because of this, the increase in purchases is reflected on the payables of the company. Furthermore,
the amount paid to the creditors every year includes the interest incurred for the period and a parcel
of the loan which is payable for five years. This relative decrease in Loans Payable, which is greatly
higher than the total amount of current liabilities, drives the decreasing drift of the annual percentages
of the Total Liabilities.
Another thing, there is an observable spike increase in the income tax payable on the
subsequent operating years because the net income in the first year is substantially lower than the
next periods.
The Total Liability and Partners’ Equity is decreased by the declining Loans Payable and
increased by the distribution of net income to the partners. There is a good indicator that the partners
are earning well out of their investments given that the account Partners’ Capital under the
Stockholder Equity increases every year.
With the increasing percentage movement of the total assets, decreasing total liabilities trend,
and increasing drift in stockholders’ equity, it can be concluded that Epicurean is having a good
financial status. It shows that it has enough assets to cover its liabilities making itself safe from
bankruptcy. Also, it signifies that it could devote more in some fixed assets and other kinds of
investments. And if the business will constantly retain such healthy financial condition, it could go
venture into business expansion in the future.
2.2. Vertical Analysis
STATEMENT OF FINANCIAL POSITION
ASSET 2017 2018 2019 2020 2021
CURRENT ASSETS:
Cash & Cash Equivalents 34.87% 41.55% 46.90% 50.94% 56.20% Other Current Assets 8.57% 8.64% 8.90% 9.40% 9.70% Total 43.43% 50.19% 55.80% 60.35% 65.90%
EPICUREAN | 146
NON-CURRENT ASSETS:
Property & Equipment, net 56.57% 49.81% 44.20% 39.65% 34.10%
TOTAL ASSETS 100.00% 100.00% 100.00% 100.00% 100.00%
LIABILITIES & PARTNERS’ EQUITY
LIABILITIES:
Current Liabilities
Accrued and other payables 6.04% 6.22% 6.61% 7.18% 7.65% Income Tax Payable 0.05% 3.66% 4.20% 3.61% 4.20% Loans Payable 8.16% 7.92% 7.84% 7.95% 7.86% TOTAL 14.25% 17.80% 18.66% 18.74% 19.70% Non-Current Liabilities Loans Payable 65.26% 55.47% 47.04% 39.74% 31.43% TOTAL LIABILITIES 79.51% 73.27% 65.70% 58.49% 51.13%
PARTNERS’ EQUITY:
Partners' Capital 20.49% 26.73% 34.30% 41.51% 48.87%
TOTAL LIABILITES &
PARTNERS' EQUITY 100.00% 100.00% 100.00% 100.00% 100.00%
In Epicurean’s Financial Position for the first three years, Property and Equipment comprises
the highest percentage in relation to Total Assets. On the fourth and fifth year, Cash and Cash
Equivalents have the highest percentage in relation to Total Assets. This change is caused by the
decreasing amount of Property and Equipment due to depreciation while Cash and Cash Equivalents
increases.
Epicurean’s current liabilities as percentage of Total Liabilities and Partners’ Equity increase
throughout the years because of the increase in demand. However, non-current liabilities have the
highest share in Total Liabilities and Partners’ Equity.
The current assets having higher percentage than the current liabilities mean that the
company’s working capital position is strong. The company, therefore, has the ability to meet its
short-term obligations.
The partners’ capital percentage, on the other hand, increases every year because each year
produces net income to be added to the capital of the partners less withdrawals of the partners which
are of constant percentage of the net income very year. This means that the drawings of the partners
EPICUREAN | 147
would not exceed the net income added to the capital of the partners resulting to continuous increase
in capital.
STATEMENT OF FINANCIAL PERFORMANCE
2017 2018 2019 2020 2021
REVENUE :
Sales 100.00% 100.00% 100.00% 100.00% 100.00%
LESS: COST OF
GOODS SOLD
69.51% 67.42% 67.11% 69.49% 69.19%
GROSS PROFIT
30.49% 32.58% 32.89% 30.51% 30.81%
EXPENSES
Salaries & Wages 6.06% 6.05% 5.91% 6.01% 5.88%
SSS Premium Contribution 0.97% 0.95% 0.93% 0.92% 0.89%
PhilHealth Premium Contribution 0.18% 0.17% 0.17% 0.17% 0.17%
HDMF Premium Contribution 0.32% 0.32% 0.31% 0.32% 0.39%
Taxes and Licenses 0.22% 0.00% 0.06% 0.05% 0.05%
Employee Benefits 2.29% 1.33% 1.30% 1.32% 1.29%
Depreciation Expense 0.50% 0.48% 0.45% 0.44% 0.41%
Rent Expense 15.49% 8.68% 8.15% 7.97% 7.49%
Professional Fees 0.26% 0.15% 0.15% 0.15% 0.15%
Advertising and Promotion 0.12% 0.12% 0.12% 0.12% 0.12%
Office Supplies 0.22% 0.22% 0.21% 0.22% 0.21%
Communication 0.27% 0.27% 0.26% 0.27% 0.26%
Meetings and Conferences 0.09% 0.09% 0.09% 0.09% 0.09%
Repairs and Maintenance 0.04% 0.05% 0.04% 0.04% 0.04%
Insurance 0.20% 0.11% 0.11% 0.11% 0.11%
Miscellaneous Expense 0.06% 0.08% 0.07% 0.07% 0.07%
Utilities 0.86% 0.86% 0.97% 0.98% 0.95%
Interest Expense 2.05% 1.03% 0.86% 0.74% 0.59%
Training Expense 0.52% 0.00% 0.00% 0.00% 0.00%
Total Expenses 30.18% 20.95% 20.17% 19.99% 19.17%
NET INCOME/(LOSS) BEFORE
TAX 0.30% 11.63% 12.72% 10.52% 11.64%
Provision for Income Tax 0.09% 3.49% 3.82% 3.16% 3.49%
NET INCOME/(LOSS) AFTER TAX 0.21% 8.14% 8.90% 7.36% 8.15%
EPICUREAN | 148
There is an increase in the gross profit margin from year 2017 to 2018 because the fixed cost
is spread more in 2018 given that in 2017, the number of units sold is only for seven months as
compared in 2018 where operations is for one year. There is also an increase of the gross profit margin
from year 2018 to 2019 because in addition to the increase in units sold, the price also increases to
cope with the increase of the amount of costs to be incurred due to inflation. The gross profit margin
from 2019 to 2020 decreases despite the continuous increase in demand because the price remains
the same with that of 2019 while the costs incurred continue to increase due to inflation. Lastly, the
gross profit margin from 2020 to 2021 increased because in addition to increase in units sold, the
price is also increase to cope with the increase of the amount of costs to be incurred due to inflation.
Total expenses as a percentage of sales in the second, third, fourth, and fifth year of operations
is decreasing. This is because the sales continually increase while some other expenses are constant
in amount such as rent expense and there are expenses which are incurred in 2017 but no longer
incurred in the next years such as training expense.
Rent Expense and Salaries and Wages are the expense accounts that have the two highest
percentage shares in the Total Expenses as a percentage of sales every year for five years. The high
share of Salaries and Wages is due to the fact that the average salary of workers in Epicurean’s
industry is high. This is due to specialization needed in performing work in Epicurean. Rent expense
is the highest expense because the current market value of the rented space is high due to its location
in the downtown area of the city. The significant decrease of percentage of rent expense from 2017
to 2018 is due to the significant increase in demand because for 2017, the units sold is only for seven
months while for 2018, the units sold is for one year. Interest expenses, on the other hand, are also
decreasing as a percentage of sales. This decrease is due to the yearly payment of the loan principal.
3. Capital Budget Analysis
3.1 Payback
Year
(a)
Cash Flow
(b)
Investment
(c)
Unrecovered Investment
(c-b)
1 (162,779.85) 3,300,000.00 3,462,779.85
2 1,416,830.30
2,045,949.55
3 1,497,489.71 548,469.84
4 1,253,826.61 0
EPICUREAN | 149
Cash Flow1
1+r Cash Flow2
(1+r)2 Cash Flowt
(1+r)t
Payback Period = 3 +
= 3.4374 approximately 3 years and 5.25 months
As presented by the payback period computation above, the capital
invested in Epicurean is expected to be recovered in 3 years and 5.25 months.
3.1 Discounted Payback
Payback Period = 3 +
= 3.8293 approximately 3 years and 9.95 months
For the discounted payback period, we used Epicurean’s computed
WACC as the discount rate, which is 4.774% in computing for the present values
of the estimated annual cash flows. As presented above, capital investment in
Epicurean is expected to be recovered in approximately 3 years and 9.95 months.
3.3 Net Present Value
The formula in solving for the Net Present Value is:
NPV = Initial Investment + + . . .
Where:
r = discount rate used to discount the cash flow which is equal to
the WACC computed in Appendix 4.2.
Year
(a)
PV
Factor
(b)
Cash Flow
(c)
Present Value
of Cash flows
(d)
Investment
(e)
Unrecovered
Investment
(e-d)
1 0.9544 (162,779.85) (155,357.09) 3,300,000.00 3,455,357.09
2 0.9109 1,416,830.30 1,290,590.72
2,164,766.37
3 0.8694 1,497,489.71 1,301,917.55 862,848.82
4 0.8298 1,253,826.61 1,040,425.32 0
5 0.7920 1,485,417.25 1,176,450.46 0
EPICUREAN | 150
*the PV factors presented are only limited to 4 decimals but its actual value was used in
the computation of NPV.
Epicurean yields an NPV equal to 1,354,196.05 which implies that the
value for Epicurean Chocolates’ revenue exceeds its costs. A positive NPV
means that the investment adds value to the investor therefor it is expected to
produce more income than what could be gained by earning the discount rate.
However, there are limitations to the NPV method. It is limited by
assumptions and guesses about what might occur in the future. The usefulness
of this method relies on the accuracy of the expected income of the project
and the discount rate.
3.3 Internal Rate of Return
The Internal Rate of Return or the IRR is the interest rate where the
NPV is nil or 0. The rate of return that would yield a nil or 0 NPV is
15.70722250270620% or 15.71%.
*the PV factors presented are only limited to 4 decimals but its actual value was used in
the computation of NPV.
Calculation of the Net Present Value
Period Cash Flow *PV Factor NPV
Initial Investment (3,300,000.00) 1 (3,300,000.00)
1 (162,779.85) 0.9566 (155,362.83)
2 1,416,830.30 0.9150 1,290,656.84
3 1,497,489.71 0.8753 1,301,976.89
4 1,253,826.61 0.8373 1,040,455.20
5 1,485,417.25 0.8009 1,176,469.96
Total NPV 1,354,196.05
Calculation of the Net Present Value (using 51.90745269% discount rate)
(Cost)/ Revenue *PV Factor NPV
Initial Investment (3,300,000.00) 1 (3,300,000.00)
1 (162,779.85) 0.8643 (140,682.53)
2 1,416,830.30 0.7469 1,058,271.01
3 1,497,489.71 0.6455 966,679.35
4 1,253,826.61 0.5579 699,512.71
5 1,485,417.25 0.4822 716,219.47
Total NPV 0
EPICUREAN | 151
An IRR of 15.71% is desirable for investors since it exceeds that
company’s required rate of return or WACC of 4.774% which means that the
net cash inflow of the project is high enough to cover its cash outflow.
H. Accounting and Control Policies
Revenue Cycle
The Process
Collection Officer / Cashier
All of the sales are made in cash. The cashier gets the order of the customer, and inputs into
the cashier register. The cashier receives the payment and issues a copy of sales invoice to customer.
At the end of the day, the cashier remits all the cash collected from sales together with the Summary
of Sales Transactions produced by the cash register to the managing/industrial partner.
Managing/Industrial Partner
Upon the receipt of the cash remitted by the cashier, the managing partner reconciles the cash
receipts with the cash sales transactions. The Cash Sales transactions are summarized in a summary
of sales transactions. The managing/industrial partner keeps it in a safety deposit box. The cash
receipts from sales for three operating days are kept in a safety deposit box and after the third day,
the managing/industrial partner deposits the cash kept in the safety deposit box to the company’s
demand deposit account.
Outsourced Auditor
The auditor monthly reconciles the copy of sales invoices issued with its summary and copy
of deposit slips. He then records sales and cash receipt. The auditor shall prepare the monthly bank
reconciliation.
EPICUREAN | 152
Revenue Cycle
Cashier
Managing Partner
Outsourced Accountant
Deposit Slip
Sales Invoice Deposit Slip
Sales Invoice
Customer
Receives orders,
inputs orders to
cash register,
receives payment
Prepares
Summary of
Sales
Transactions
Summary of
Sales Trans.
File
Summary of
Sales Trans.
Reconcile
File
Summary of
Sales Trans.
Reconcile
and
Record
File
A
Deposit Slip
Sales Invoice
Summary of
Sales Trans.
Deposit Slip
Sales Invoice
Sales Invoice
A
B
B
Bank
EPICUREAN | 153
Expenditure Cycle
The Process
Kitchen Crew 1
The kitchen crew 1 shall monitor raw materials inventory. When the level of inventory
reaches the reorder point, he shall issue 3 Purchase Orders (P.O.). He shall submit one copy of the
P.O. to the managing/industrial partner. One copy shall be kept by the kitchen crew 1 for
reconciliation and filing with the receiving report, and one is kept to be used later for reconciliation
and recording by the industrial/managing partner.
Kitchen Crew 2 (Receiving Personnel)
Upon the arrival of the raw materials purchased, the kitchen crew 2 shall prepare a
receiving report of the items received. Two copies are prepared, one for reconciliation and filing
by the kitchen crew 1, and one to be used by the industrial/managing partner. He shall indicate in
the report the items received and the quantity of each item. The receiving report shall be used by
the kitchen crew 1 to be matched with the purchase order and to close the open P.O. file.
Managing/Industrial Partner
The managing/industrial partner issues check for the purchase of the raw materials based
on the P.O. The issued check must be payable to the applicable supplier. Purchase transactions
with suppliers that are paid through checks should have a prior agreement. The official receipt and
purchase invoice received from the supplier shall be kept for the use of the industrial/managing
partner.
The managing/industrial partner shall make a summary of purchases invoices received and
file it. He shall also file the purchase orders received from the kitchen crew.
Outsourced Auditor
The purchase orders, supplier’s invoices, and receiving reports kept by the
industrial/managing partner for the use of the auditor shall be reconciled by the latter in making
reliable financial statements. The industrial/managing partner shall record the purchases and cash
disbursements. He shall prepare the monthly bank reconciliation.
EPICUREAN | 154
Records, Documents, and Physical Controls
The documents issued by the company such as purchase orders, receiving reports, and sales
invoices given to its customers should be pre numbered to assure completeness of occurrence of
transactions.
Also, physical control should be employed in handling cash and other monetary assets, raw
materials inventory, source documents and financial statements and non-financial reports to avoid
unauthorized access to these accounts. Implementation of physical controls reduces the risk of
fraud and other malicious activities.
Control of Payroll Fund
A payroll fund shall be established strictly for the disbursement of salaries and wages of
the company’s employees. The fund shall be under the control of managing/industrial partner. The
payroll would be prepared by the managing/industrial partner. Disbursements from payroll fund
shall be made only if correct and complete payroll documents are provided with proper
authorization to assure that no outflow is made without undergoing the required process. Before
the release of salaries, the pay slips must be signed by the employees. The industrial/managing
partner shall conduct unannounced cash count of the payroll fund every month. Any unclaimed
salary shall be reviewed and transferred back to the demand deposit account of company if no
employee is entitled to receive such money. However, in instances that there is a claimant for such
item, the same shall be retained in the payroll fund until disbursed.
Controls for Petty Cash Fund
The Petty Cash Fund shall be employed through the Imprest Fund System and shall be
under the custody of the Cashier. Disbursements out of this fund shall be supported with receipts
or, if unavailable, such as in cases of jeepney fares, the customary amount shall be applied and a
petty cash voucher shall be prepared by the personnel who incurred the expense. The receipts,
vouchers, and currency and coins of Petty Cash Fund shall be kept in a safety box. Inventories to
be stocked shall not be paid out of this fund. The managing/industrial partner shall conduct surprise
cash count and reconciliation every month. The Petty Cash Fund shall be replenished monthly.
EPICUREAN | 155
Expenditure Cycle
Kitchen Crew 1
Kitchen Crew 2
Managing Partner
Outsourced Accountant
C
B
Monitor Raw Mats.
Inventory
Purchase
Order
Open
P.O
File
Purchase
Order
Match P.O w/ R.R
Receiving
Report Purchase
Order
File Close
P.O
File
Check
Goods
Received
Receiving
Report
Purchase
Order
Verify supplier and issue check
Check
Purchase
Order
File
Supplier
O.R
Supplier’s
invoice
Prepare summar
y
Summary of Supplier’s
Invoice
File
Purchase
Order Supplier’s
invoice Receiving
Report
Reconcile and
Record
Purchase
Order Supplier’s
invoice Receiving
Report
File
A
B
A
C
Supplier’s
invoice
D
D
EPICUREAN | 156
CHAPTER V
SOCIO-ECONOMIC ASPECT
Aside from ascertaining the market, technical and financial viability of establishing a
Chocolate Patisserie Shop, the feasibility study is also conducted to determine its socio-economic
effects specifically the impact on its affected stakeholders – its employees, the community and the
government.
Employees
In putting up the business, there would be eleven (11) employees to be employed – one (1)
chef/store manager, four (4) kitchen crews, four (4) front crews/cashiers, and two (2) shop cleaners.
An outsourced accountant will be employed for the business’ financial reporting needs. The
employment of such persons means that additional jobs will be offered to those who are suited and
competent enough for the aforementioned positions.
Such job opportunities will give these people a stable source of income since they will be
receiving periodic salaries/wages including employee benefits like SSS, PhilHeath and Pag-IBIG.
In the future, when the business has grown and expanded, employee salaries/wages will
correspondingly increase. This means a higher income will be given to the employees.
In addition, the employees will be able to acquire new knowledge and harness their skills
as they will be undertaking seminars and trainings. Thus, human development linked to increase
of employees’ productivity and competitiveness will be promoted.
Aside from the full-time employees that Epicurean would be hiring, the entity would also
be open to working students who would like to apply for jobs. This would provide students the
opportunity to earn while studying, hence enabling them to provide for their studies. Also, the
working students will be able to acquire new knowledge and develop skills as they will be
undertaking seminars and trainings, just like the full-time employees.
Community
Epicurean’s employment of community members will contribute to the overall
employment growth in Davao City, even though such employees will only comprise a very small
fraction of the city’s whole population. The opening of the business will still help the community
in achieving its goal to lower the number of unemployed individuals. In this way, it will also help
EPICUREAN | 157
in reducing poverty. The newly-hired employees, having enough income, will be able to afford
and sustain the needs of their respective families. Also, edible leftovers will be distributed to less
fortunate people in an organized activity.
The establishment will also uphold productivity and competitiveness in the business
industry where it belongs. It will contribute to the supply of different chocolate products not only
here in Davao City but also to Mindanao as well as to the entire Philippines. On the other hand, it
will also help its various suppliers of raw materials and other basic items, particularly the
chocolate/cacao suppliers in Davao City, to increase the demand of their products and/or services
and the profit that they will earn.
Furthermore, the establishment of the business will provide students a new comfortable
place conducive for study. Also, it will provide an accessible venue for young professionals and
businessmen where they can conduct business meetings and other related transactions.
Government
Once the business will be established and employees will be hired, the government can
collect business income tax and personal income tax. This would mean additional income for the
government which it will use to conduct its operations.
In case of business expansion, the taxes that will be collected from the establishment will
increase since it will be earning more than its usual income. Moreover, additional taxes will also
be collected from the employees because of salary increase and the increase of number of
employees. In short, when the business and employees earns more, the government also earns
more.
Through taxes, the business will be able to help in the projects, activities and programs
implemented by the government for the development of our country. Through taxes, the business
will be able to contribute to the government fund used by the government to support the needs of
its people.
EPICUREAN | 158
VI. ORGANIZATION AND MANAGEMENT STUDY
A. Basic Consideration in Forming the Organization
There are various factors and corners to be taken into account when establishing an
organization. Presented below are several material factors to consider in forming an organization.
1. Number of Members
The number of members that will comprise an organization is an essential factor
because it determines the amount of capital that will support the operations of the organization
which will also determine the accounting standards and principles to be followed. Also, the
number of members will determine how the profit will be distributed among the members.
2. Financial Capacity of Members
The financial capacity of members determines the amount of money initially available
for the business and determines the remaining amount to be borrowed from financial
institutions to comply with its required capital to start the business.
3. Objective in forming the organization
The organization should identify its objectives to determine where it should position
itself in the market. The objectives set the direction of the organization on where to focus its
resources and efforts. It serves as the foundation and guide in formulating and actualizing the
organization’s strategies.
4. Knowledge and Skill of Management
One of the key factors in a successful business is the knowledge and skills of the
persons managing the entity because there are many aspects of the business that necessitates
professional judgment and proper estimation. If these persons are not equipped with the
required knowledge, there is a big probability that the business will be adversely affected by
the former’s erroneous decisions. The persons in the management should be skillful enough
because they are the one who lead the direction of the organization towards its goals.
5. Requirements of the Industry
The organization should identify requirements, common and specific, of the industry
where it will operate to determine whether it can satisfy such requirements. Also, the
organization should consider the legal government regulations governing the industry to
EPICUREAN | 159
resolve any incompatibilities and conflicting provisions of the government and the
organization.
6. Industry Performance
Industry performance depicts how the industry is adding value to its consumers, the
wider economy, government, and to its investors. It shows how the business organizations in
the industry are operating. It also shows an organization’s profit share in the industry, the
employment it provides, and its position in the entire business industry.
B. Form of Ownership
Epicurean is a partnership which, as defined by the Civil Code of the Philippines Article
1767, is a contract where two or more parties (in this case, two) bind themselves to contribute
money, property or industry to a common fund with the intention of dividing the profit among
themselves.
Since it is a partnership, Epicurean has the following characteristics:
1. There is no limit as to its existence and it is up to the partners when to end the
contract as compared to corporations which can only exist up to 50 years;
2. It has its own juridical personality whether or not it is registered to the Securities
and Exchange Commission (SEC);
3. The partners, even though having the ability to transfer his or her interest to
another person, the latter, which is the transferee, is not immediately considered a
partner without the consent of the other partner;
4. In case of liability to third persons, the partners can be held liable up to their
personal properties; and
5. It can be dissolved due to the insolvency, civil interdiction, death, insanity or
retirement of any of the partners.
To register to the SEC, Epicurean should submit the following requirements:
1. Name Verification Slip with the reservation of the partnership name
2. Articles of Partnership
3. Registration Data Sheet
4. Affidavit of a partner undertaking to change partnership name
5. Certificate of Bank Deposit
EPICUREAN | 160
These information are also needed:
1. Name of the partnership
2. Principal office address
3. Telephone number of the partnership
4. Name, citizenship, address, birthday and TIN of the partners
5. Capital contribution of the partners
6. Purpose of the partnership
In this research paper, the proponents have no actual investors for the project. In this regard,
the proponents opted to use 80% debt and 20% equity as the basis for computing the capital
investment needed by Epicurean. In the case of Epicurean, there will be two partners, wherein one
partner will invest cash and the other will invest both cash and skills. The partner who will invest
both cash and skills will become the managing partner of Epicurean. To reward the managing
partner, a 60:40 profit sharing ratio will be used.
C. Key Personnel
Organizational Chart
Personnel Responsibilities
● Managing Partner/Industrial Partner
The Managing Partner/Industrial Partner will be responsible for the keeping
of the books of Epicurean. Furthermore, he/she will be responsible for any
administrative works of Epicurean, like preparing the payroll, keeping the records
of the employees and etc.
Partners
Kitchen Crew Front Crew Cashier Shop Cleaner
Chef/Store Manager
EPICUREAN | 161
● Chef/Store Supervisor
The Chef/Store Supervisor will have the following tasks and responsibilities:
1. Make list of raw materials needed for the production process
2. Check quality of items to be served
3. Supervise the work of kitchen crews, front crews and cashiers.
4. Check the quality of raw materials bought
● Kitchen Crew
Kitchen Crews will have the following tasks and responsibilities:
1. Check inventory level in the store room
2. Ensure proper arrangement of raw materials in store room
3. Make list of raw materials that needed to be replenished
4. Assist the chef in preparing the products.
5. Prepares the ingredients ready for use and prepares the kitchen for use.
6. Check items in counter chiller
● Front Crew/Cashier
The Front Crew will have the following tasks and responsibilities:
1. Prepare customer orders
2. If assigned as cashier, process the payment of the customers
3. Check whether orders prepared match receipts
4. Serve customer orders
As a cashier, he/she will have the following tasks and responsibilities:
1. Take customer order
2. Issue receipts
3. Submit daily sales report to the managing partner
4. If assigned as front crew, prepare customer orders.
● Shop Cleaner
The Shop Cleaner will have the following tasks and responsibilities:
1. Ensure that the store is always clean.
2. Ensure that after the customers leave, tables are cleaned.
EPICUREAN | 162
D. Organizational Policy
The following are the major policies of Epicurean:
● Daily Operations
1. Epicurean will operate 7 days a week, from 10:00 AM to 10:00 PM.
2. Employees must log-in 1 hour before the opening of the store or by 9:00
am.
3. Every Sunday, the chef and the kitchen crew must log-in by 6:00 am for the
procurement of raw materials.
4. Cleanliness must be maintained always.
5. Highest quality of food and service must be given to the customers.
● Payroll
1. A list of employees will be maintained by the managing partner. This will
include the personal documents of the employees.
2. The managing partner will maintain a logbook for the attendance of the
employees. This logbook will contain login time and logout time of the
employees.
3. Each employee will have 1 day off each week.
4. Holidays will be allowed depending on the discretion of the managing
partner.
5. The managing partner will prepare the payroll of the employees every 2
weeks.
6. The payment of the salary will be made every after 2 weeks.
7. The payment of the employee benefits, which is their 13th month pay, will
be made together with their salary in December.
● Hiring
1. Child labor will not be allowed in epicurean.
2. Employees must satisfy the requirements that is stated in the Labor
Requirements section of this paper.
3. Working students will be allowed in Epicurean.
4. Any form of discrimination will be prohibited.
EPICUREAN | 163
● Other major policies
1. A monthly meeting with the employees will be implemented to show the
progress of the business and to discuss any important matters.
2. Any conflict with between employees must be reported directly to the chef,
or if the chef is involved, to the managing partner.
EPICUREAN | 164
APPENDICES
APPENDIX 1.0. Articles of Partnership
ARTICLES OF PARTNERSHIP
of
EPICUREAN CHOCOLATES
KNOW ALL MEN BY THESE PRESENTS:
That we, the undersigned, all of legal age and residents of the Republic of the Philippines have agreed to
amend a general partnership under the terms and conditions herein set forth and subject to the provisions of
existing laws of the Republic of the Philippines.
AND WE HEREBY CERTIFY:
ARTICLE I.
That the name of the partnership shall be: Epicurean Chocolates.
ARTICLE II.
That the principal office of the Partnership shall be located at Ground floor, Fabie Building, Poblacion District,
Davao City.
ARTICLE III.
That the names, citizenship, residence and designation of the partners of said partnership are as follows:
Name Citizenship Residence Designation
Partner A Filipino Davao City General/Industrial
Partner
Partner B Filipino Davao City General Partner
ARTICLE IV.
That the term for which said partnership is to exist is 30 years from the original recording of said partnership by the
Securities and Exchange Commission.
ARTICLE V.
That the purpose for which said partnership is formed are as follows:
1. To open the first Patisserie in Davao City that offers high quality chocolate pastry products.
2. To provide quality customer service to the entity’s patrons and prospective customers.
3. To highlight locally produced chocolates by offering products using chocolate as the main ingredient.
ARTICLE VI.
That the capital of the partnership shall be Php 660,000.00 Philippine Currency contributed in cash by the partners
as follows:
EPICUREAN | 165
Name Amount Contributed
Partner A P 330,000.00
Partner B P 330,000.00
That no transfer will reduce the ownership of Filipino citizens to less than the required percentage of capital shall
be recorded in the paper books of the partnership.
ARTICLE VII.
That the profits and losses shall be divided pro-rata among the partners. 60% of the profit/loss shall be given
to the managing partner (Partner A) and the remaining 40% shall be given to the general
capitalist partner (Partner B).
ARTICLE VIII.
That should there be additional contribution made by any of the partners, such must be agreed upon by all the
partners in writing and duly recorded at least two days after signing the same agreement. Such agreement shall
amend Article VI of the Articles of Partnership.
ARTICLE IX.
That a partner may admit an additional limited partner, provided that the other partners have been duly notified in
writing five (5) days before effectivity of admission and duly concurred by all the partners in writing.
ARTICLE X.
That the remaining general partner or partners shall have the right to continue the business in cases of death,
retirement, civil interdiction, insanity or insolvency of a general partner.
ARTICLE XI.
That the firm shall be under the management of Partner A, as the Managing Partner and as such he/she shall be in
charge of the management of the affairs of the partnership.
ARTICLE XII.
That the partners will willingly undertake to change the name of the partnership immediately upon receipt of
notice/directive from the Securities and Exchange Commission that another partnership, corporation, or person
has been declared misleading, deceptive, confusingly similar to a registered name or contrary to public morals,
good customs or public policy.
IN WITNESS WHEREOF, we have hereunto set our hands this DATE.
PARTNER A
TIN:
PARTNER B
EPICUREAN | 166
ACKNOWLEDGEMENT
Republic of the Philippines }
City of Davao } S. S.
BEFORE ME, a Notary Public, for and in Davao City, Philippines, DATE, personally came and personally
appeared the following persons with their Community Tax Certificates as follows:
Name CTC# Date Place Issued
Partner A Davao City
Partner B Davao City
Known to me to be the same persons who executed the FOREGOING ARTICLES OF
PARTNERSHIP, and they acknowledged to me that the same their voluntary act and need.
WITNESS MY HAND AND SEAL on the date first above written.
Name of Legal Counsel
Notary Public
Valid until December 31,2017
PTR No.
IBP No.
Roll of Attorney No.
TIN
Davao City
Doc. No.:
Page No.:
Book No.:
SERIES OF 2017
EPICUREAN | 167
APPENDIX 2.0. LEASE CONTRACT
KNOW ALL MEN BY THESE PRESENTS:
This CONTRACT OF LEASE is made and executed at the City of Davao, this day of
_______________, 20__, by and between:
(NAME OF LESSOR), of legal age, single/married to (Name of spouse if any), Filipino,
and with residence and postal address at (Address), hereinafter referred to as the LESSOR.
-AND-
Lea, Filipino and with residence and postal address at (Address), hereinafter referred to as the
LESSEE.
WITNESSES; That
WHEREAS, the LESSOR is the owner of THE LEASED PREMISES, a commercial property
situated at Ground Floor Fabie Building, Pelayo Street, Davao City, 8000 Davao del Sur;
WHEREAS, the LESSOR agrees to lease-out the property to the LESSEE and the LESSEE is
willing to lease the same;
NOW THEREFORE, for and in consideration of the foregoing premises, the LESSOR leases unto
the LESSEE and the LESSEE hereby accepts from the LESSOR the LEASED premises, subject
to the following:
TERMS AND CONDITIONS
1. PURPOSES: That premises hereby leased shall be used exclusively by the LESSEE for
commercial purposes only and shall not be diverted to other uses. It is hereby expressly agreed
that if at any time the premises are used for other purposes, the LESSOR shall have the right to
rescind this contract without prejudice to its other rights under the law.
2. TERM: This term of lease is for ONE (1) YEAR. from (Date) to (Date) inclusive. Upon its
expiration, this lease may be renewed under such terms and conditions as my be mutually agreed
upon by both parties, written notice of intention to renew the lease shall be served to the LESSOR
not later than seven (7) days prior to the expiry date of the period herein agreed upon.
3. RENTAL RATE: The monthly rental rate for the leased premises shall be in PESOS: ONE
HUNDRED THOUSAND PESOS (P100,000.00), Philippine Currency. All rental payments shall
be payable to the LESSOR.
EPICUREAN | 168
4. DEPOSIT: That the LESSEE shall deposit to the LESSOR upon signing of this contract and
prior to move-in an amount equivalent to the rent for THREE (3) MONTHS or the sum of PESOS:
THREE HUNDRED THOUSAND PESOS (P 300,000.00), Philippine Currency. wherein the two
(2) months deposit shall be applied as rent for the 11th and 12th months and the remaining one (1)
month deposit shall answer partially for damages and any other obligations, for utilities such as
Water, Electricity, CATV, Telephone, Association Dues or resulting from violation(s) of any of
the provision of this contract.
5. DEFAULT PAYMENT: In case of default by the LESSEE in the payment of the rent, such as
when the checks are dishonored, the LESSOR at its option may terminate this contract and eject
the LESSEE. The LESSOR has the right to padlock the premises when the LESSEE is in default
of payment for One (1) month and may forfeit whatever rental deposit or advances have been given
by the LESSEE.
6. SUB-LEASE: The LESSEE shall not directly or indirectly sublet, allow or permit the leased
premises to be occupied in whole or in part by any person, form or corporation, neither shall the
LESSEE assign its rights hereunder to any other person or entity and no right of interest thereto or
therein shall be conferred on or vested in anyone by the LESSEE without the LESSOR'S written
approval.
7. PUBLIC UTILITIES: The LESSEE shall pay for its telephone, electric, cable TV, water,
Internet, association dues and other public services and utilities during the duration of the lease.
8. FORCE MAJEURE: If whole or any part of the leased premises shall be destroyed or damaged
by fire, flood, lightning, typhoon, earthquake, storm, riot or any other unforeseen disabling cause
of acts of God, as to render the leased premises during the term substantially unfit for use and
occupation of the LESSEE, then this lease contract may be terminated without compensation by
the LESSOR or by the LESSEE by notice in writing to the other.
9. LESSOR'S RIGHT OF ENTRY: The LESSOR or its authorized agent shall after giving due
notice to the LESSEE shall have the right to enter the premises in the presence of the LESSEE or
its representative at any reasonable hour to examine the same or make repairs therein or for the
operation and maintenance of the building or to exhibit the leased premises to prospective
LESSEE, or for any other lawful purposes which it may deem necessary.
10. EXPIRATION OF LEASE: At the expiration of the term of this lease or cancellation thereof,
as herein provided, the LESSEE will promptly deliver to the LESSOR the leased premises with
all corresponding keys and in as good and tenable condition as the same is now, ordinary wear and
tear expected devoid of all occupants, movable furniture, articles and effects of any kind. Non-
compliance with the terms of this clause by the LESSEE will give the LESSOR the right, at the
latter's option, to refuse to accept the delivery of the premises and compel the LESSEE to pay rent
therefrom at the same rate plus Twenty Five (25) % thereof as penalty until the LESSEE shall have
complied with the terms hereof. The same penalty shall be imposed in case the LESSEE fails to
EPICUREAN | 169
leave the premises after the expiration of this Contract of Lease or termination for any reason
whatsoever.
11. JUDICIAL RELIEF: Should any one of the parties herein be compelled to seek judicial relief
against the other, the losing party shall pay an amount of One Hundred (100) % of the amount
clamed in the complaint as attorney's fees which shall in no case be less than P50,000.00 pesos in
addition to other cost and damages which the said party may be entitled to under the law.
12. This CONTRACT OF LEASE shall be valid and binding between the parties, their successors-
in-interest and assigns.
IN WITNESS WHEREOF, parties herein affixed their signatures on the date and place above
written.
(Name of Lessor) Leah
LESSOR LESSEE
Signed in the presence of:
_____________________________ ______________________________
ACKNOWLEDGEMENT
Republic of the Philippines)
_________________________) S.S
BEFORE ME, personally appeared:
Name CTC Number Date/Place Issued
(Name of Lessor) 10000000 February 24, 20__ / Cavite City
(Name of Lessee) 10000000 January 07, 20__ / Makati
Known to me and to me known to be the same persons who executed the foregoing instrument and
acknowledged to me that the same is their free and voluntary act and deed.
EPICUREAN | 170
This instrument consisting of ____ page/s, including the page on which this acknowledgement is
written, has been signed on each and every page thereof by the concerned parties and their
witnesses, and and sealed with my notarial seal.
WITNESS MY HAND AND SEAL, on the date and place first above written.
Notary Public
Doc. No.______;
Page No. ______;
Book No.______;
Series of 20___.
EPICUREAN | 172
APPENDIX 3.0. Cost of Raw Materials
Products
Total
Serving Serving
Cost
Average
serving
cost per
product
Demand
(yearly)
Raw Mats cost per year
(in Php) 0 1 2 3 4 5
Hot Chocolate Drinks
Choc-buttered rum 206.26 2 103.13 10,363.50
Mocha Latte 148.88 2 74.44 18,180.00
Melted Hot Chocolate
with Sea Salt Whipped
Cream
188.74 2 94.37 18,594.00
S'mores Hot Chocolate 98.36 2 49.18 19,026.00
White Hot Chocolate 321.49 4 80.37 19,458.00
Bourbon Spiked Hot
Chocolate 351.06 4 87.76 19,908.00
Coconut Hot Chocolate 283.17 3 94.39 83.38 864,091.36 1,576,450.84 1,676,844.22 1,784,434.96 1,897,950.01 2,019,517.13
Input Vat 103690.9637 189174.1004 201221.3065 214132.1953 227754.0012 242342.0558
Total Cost 967782.3282 1765624.937 1878065.527 1998567.156 2125704.011 2261859.188
Cold Chocolate Drinks
Salted caramel Mocha
Smoothie 74.81 1 74.81 9,513.00
Black Forest Smoothie 229.52 1 229.52 16,668.00
Strawberry Chocolate
Smoothie 214.38 2 107.19 17,064.00
White Chocolate Latte 131.93 4 32.98 17,460.00
Chocolate Avocado
Smoothie 23.28 1 23.28 17,856.00
White Chocolate Mango
Smoothie 162.62 3 54.21 87.00 18,270.00 827,613.72 1,508,089.15 1,605,675.22 1,708,655.24 1,817,304.57 1,933,817.24
Input Vat 99,313.65 180,970.70 192,681.03 205,038.63 218,076.55 232,058.07
Total Cost 926,927.37 1,689,059.85 1,798,356.25 1,913,693.86 2,035,381.12 2,165,875.31
Ice cream
Matcha avocado Mint
Chocolate Mousse Swirl
Ice Cream
661.96 25 26.48 11,550.00
EPICUREAN | 173
Salted Caramel
Chocolate Vegan Ice
Cream
266.62 25 10.66 20,268.00
Caramel Brownie ice
Cream Sundae 234.99 25 9.40 20,736.00
Rocky Road Ice Cream 468.02 25 18.72 21,204.00
Chocolate Chip Ice
Cream Cookies 164.90 18 9.16 21,690.00
Rocky road ice cream
sandwich 537.67 14 38.40 22,194.00
Grasshopper Ice Cream
Sandwich 265.20 9 29.47
Chocolate Coconut Ice
Cream Sandwich 183.45 7 26.21
Boston Cream Pie Ice
Cream Sandwich 352.43 14 25.17
Chocolate Waffle Ice
Cream Sandwiches 350.51 2 175.26
S'mores waffle sundaes 399.38 8 49.92
Blueberry and Coconut
Ice Cream Sandwich 574.75 8 71.84 122.67 1,416,889.80 2,585,820.20 2,751,349.44 2,925,983.70 3,112,769.76 3,312,503.66
Input Vat 170,026.78 310,298.42 330,161.93 351,118.04 373,532.37 397,500.44
Total Cost 1,586,916.57 2,896,118.63 3,081,511.37 3,277,101.74 3,486,302.13 3,710,004.10
Cupcakes
Chocolate Pistachio
Cupcakes 530.28 28 18.94 6,930.00
Matcha Cocoa Cupcakes 417.20 28 14.90 12,150.00
Mint Hot Chocolate 515.26 32 16.10 12,438.00
Double chocolate
cupcakes with white
chocolate cream cheese
frosting
521.28 20 26.06 12,726.00
Double Chocolate
cupcakes with salted
caramel buttercream
371.09 28 13.25 13,014.00
Salted Caramel
chocolate cupcakes 632.40 8 79.05 13,320.00
Chocolate Espresso
Cupcakes 233.26 27 8.64
EPICUREAN | 174
Maple Buttercream and
Bacon Cupcakes 504.26 24 21.01
Chocolate Banana
Cupcakes with Dulce de
Leche Filling
258.21 18 14.35
Coconut sponge cake
with chocolate espresso
buttercream
124.97 15 8.33
Coffee Chocolate
Cupcakes with Baileys
Irish Cream Frosting
206.24 20 10.31
Espresso Fudge
Cupcakes with
Chocolate Cream Cheese
Icing
189.80 20 9.49
Red Devil's Food
Cupcakes with Sour
Cream Chocolate
Frosting
580.28 27 21.49 60.44 418,882.77 763,781.05 813,160.90 865,269.10 920,244.90 979,558.06
Input Vat 50,265.93 91,653.73 97,579.31 103,832.29 110,429.39 117,546.97
Total Cost 469,148.70 855,434.77 910,740.21 969,101.39 1,030,674.29 1,097,105.02
Cakes
White Chocolate Mocha
Mousse Mini Cake 333.93 12 27.83 6,951.00
Black Forest Mini Cake 962.24 7 137.46 12,186.00
Chocolate-Covered
Strawberry Cake 585.14 10 58.51 12,474.00
Banana Bread Tiramisu
Mini Cake 895.46 6 149.24 12,762.00
S'mores Mini
Cheesecakes 227.59 12 18.97 13,050.00
Triple Chocolate Mousse
Mini Cake 74.13 8 9.27 13,356.00
Almond Joy Cake 917.95 12 76.50
Chocolate Espresso
Bundt Cake with Dark
Chocolate Cinnamon
Glaze
280.30 12 23.36
Chocolate Whiskey Cake 734.80 12 61.23
EPICUREAN | 175
Nutella CheeseCake 739.41 10 73.94
Chocolate Chocolate
Cake 699.51 12 58.29
Mango Mousse Cake 162.40 10 16.24
Mint Cookies and Cream
Cake 328.75 10 32.88
Salted Chocolate
Caramel Ice Cream Cake 725.17 10 72.52
Strawberry Chocolate
Mousse 648.94 10 64.89
Mudslide Cake 478.04 10 47.80
Triple Chocolate
Cheesecake 535.18 10 53.52
Salted Caramel Milk
Chocolate Cake 634.74 12 52.89
Red Velvet Oreo Truffle
Cake 545.81 8 68.23
Mini Chocolate Mud
Cakes with Salted
Caramel Chocolate Icing
285.48 12 23.79 56.37 391,815.07 714,378.47 760,512.33 809,193.90 860,553.18 915,960.93
Input Vat 47,017.81 85,725.42 91,261.48 97,103.27 103,266.38 109,915.31
Total Cost 438,832.87 800,103.89 851,773.81 906,297.17 963,819.56 1,025,876.24
Cookies
Double Chocolate Chip
Cookies 102.19 18 5.68 9,859.50
Chocolate Peanut Butter
Chip Cookies 218.35 24 9.10 17,298.00
coconut oatmeal
chocolate chip cookies 238.51 36 6.63 17,694.00
mint oreo cookies 175.19 16 10.95 18,090.00
chocolate sugar cookies 78.01 24 3.25 18,504.00
salted caramel dark
chocolate cookies 216.05 115 1.88 18,936.00
matcha green tea white
chocolate cookies 501.35 24 20.89
white chocolate lemon
sugar cookies 239.80 40 6.00
hot chocolate thumbprint
cookies 173.03 18 9.61
EPICUREAN | 176
Chocolate orange
cookies 64.38 24 2.68 53.66 529,075.36 965,365.72 1,026,964.29 1,091,946.16 1,161,613.41 1,236,282.11
Input Vat 63,489.04 115,843.89 123,235.72 131,033.54 139,393.61 148,353.85
Total Cost 592,564.40 1,081,209.61 1,150,200.01 1,222,979.70 1,301,007.02 1,384,635.96
Total
Input
VAT
533,804.17 973,666.25 1,036,140.77 1,102,257.97 1,172,452.30 1,247,716.70
Raw Mats
Cost x
Demand
4,448,368.07 8,113,885.43 8,634,506.41 9,185,483.07 9,770,435.83 10,397,639.13
EPICUREAN | 177
APPENDIX 4.0. Credit and Debit Card Transaction Path
Credit Card Transaction Path
https://www.firstdata.com/downloads/thought-leadership/payments101wp.pdf
EPICUREAN | 178
APPENDIX 4.1. List of Banks for Future Borrowings
1. Landbank of the Philippines
ASENSO Program
Description A program jointly implemented by different GFIs in support of the
National SME Development Plan. The Program adopts a unified
procedure and terms and conditions in lending to SMEs.
Eligible Borrowers Sole Proprietorship
Partnership
Corporation (at least 60% Filipino-owned)
Cooperatives
Eligible Projects Manufacturing
Agri-business (except direct farm level agricultural production)
Services
Trading (except enterprises engaged in purely trading of imported
commodities, in extractive industries, in vice generating activities
and in real estate development
Loan Purpose Working Capital
Fixed Asset Acquisition
Amount of Loan Maximum of P5 M
Term of Loan Short Term – 1 year
Long Term – maximum of 5 years inclusive of maximum of 1
year grace period on principal payment
Loan Security REM
Chattel on machinery & equipment
Hold-out on deposit
Deed of Assignment on inventory & receivable
JSS of principal stockholders/officers
Guarantee cover from SBGFC, PhilEXIM, etc.
EPICUREAN | 179
*The prevailing market interest rate as of August 11, 2016 according to Bangko Sentral ng
Pilipinas is three percent (3%).
2. Development Bank of the Philippines
Sustainable Enterprises for Economic Development (SEED)
Retail Lending for
Micro and Small
Enterprises (RLM)
The RLM is a retail lending facility that aims to enhance micro and
small enterprises’ (MSE) access to credit through simplified loan
procedures and shorter turnaround time.
Eligible Projects
All types of projects of a qualified MSE borrower shall be eligible for
MSE financing, except those undertaken for unlawful purposes, or
those which may pose a risk to health, national security and the
environment.
Eligible Borrowers Single Proprietorship, Partnership, Corporation, Cooperative, and
other entities with legal personality to engage in a business enterprise
with asset size of not more than PhP15.0 million.
Loan Amount For term loans, the MSE loan amount shall be up to 90% of total
project cost.
For PO/LC financing, the MSE loan amount shall be up to 80% of
the amount of the instrument or based on the actual cost of the
goods purchased, whichever is lower.
Interest Rate Prevailing market rate (fixed or variable)
Loan Repayment
Term
Based on enterprise’s development period but not to exceed ten
(10) years, payable based in business cash cycle.
Maximum grace period of three (3) years on principal payment for
projects with short gestation period and five (5) years for projects
with long gestating period.
*The prevailing market interest rate as of August 11, 2016 according to Bangko Sentral ng
Pilipinas is three percent (3%).
3. Bank of the Philippines Islands
EPICUREAN | 181
KA-NEGOSYO CREDIT LINE: 4.50 % for 90 days
KA-NEGOSYO FRANCHISING LOAN (Secured)
Term Interest Rates
1 year 7.00%
2 - 3 years 8.00%
KA-NEGOSYO TERM LOAN (Secured)
1 year 5.50%
2 - 3 years 6.50 %
4 - 5 years 7.00%
6 - 10 years 9.00%
KA-NEGOSYO FRANCHISING LOAN (No Collateral)
Term Interest Rates
1 year 10.00%
2 years 12.00%
3 years 14.00%
EPICUREAN | 182
APPENDIX 4.2. Computation of WACC
WACC = * Re + * Rd * (1 – T)
Where:
Re = cost of equity
Rd = cost of debt
E = Total equity
D = Total long term debt
V = E + D
E/V = percentage of financing that is equity
D/V = percentage of financing that is debt
T = tax rate
2017 2018 2019 2020 2021
Re 0.0683 0.0683 0.0683 0.0683 0.0683
Rd 0.06 0.06 0.06 0.06 0.06
E 663,292.73 888,401.34 1,150,463.92 1,372,155.85 1,633,065.03
D 2,376,000.00 2,112,000.00 1,848,000.00 1,584,000.00 1,320,000.00
V 3,039,292.73 3,000,401.34 2,998,463.92 2,956,155.85 2,953,065.03
Tc 0.3 0.3 0.3 0.3 0.3
WACC 4.7740% 4.9787% 5.2091% 5.4208% 5.6544%
EPICUREAN | 183
APPENDIX 4.3. Local Business Tax Matrix
Davao City Treasurer’s Office
Restaurants, cafes, cafeterias, carenderias, eateries, food caterer, ice cream & other
refreshment parlors, & soda fountain bars, & places wherein customers thereof actively
participate without bets or wagers, including but not limited to night clubs, or day clubs, cocktail
lounges, cabarets or dance halls, karaoke bars, clubs such as country & sports club, resorts &
other similar places, billiard & pool tables, bowling alleys:
RANGE (based on net income) ANNUAL QUARTERLY
Less than 10,000 272.50 68.13
10,000 15,000 399.30 99.83
15,000 20,000 525.80 131.45
20,000 30,000 816.20 205.05
30,000 40,000 1,107.15 276.79
40,000 50,000 1,361.25 140.31
50,000 75,000 1,565.30 391.33
75,000 100,000 1,831.50 457.88
100,000 150,000 2,142.80 535.70
150,000 200,000 2,506.90 626.73
200,000 250,000 2,933.15 733.29
250,000 300,000 3,432.00 858.00
300,000 400,000 4,015.00 1,003.75
400,000 500,000 4,818.00 1,204.50
500,000 750,000 5,782.70 1,445.68
750,000 1,000,000 6,939.35 1,734.84
1,000,000 2,000,000 8,327.55 2,081.89
EPICUREAN | 184
APPENDIX 4.4. Basis for Inflation Rate
The inflation rate employed by the researchers for this feasibility study is based on the
forecasted and released rate by Trading Economics Global Macro Models and analysts’
expectations. Based on the forecast using econometric models, the Philippine Inflation Rate, in the
long-term, is projected to trend around 3.8 percent in 2020. The Philippines Inflation Rate
Forecasts are projected using an autoregressive integrated moving average (ARIMA) model
calibrated using the expectations of its analysts. The forecasted inflation rate is modeled using
great amounts of historical data and is adjusted by coefficients of the econometric model by taking
into account our analysts assessments and future expectations.
EPICUREAN | 186
CURRICULUM VITAE
ALONDAY, DEXTER VAL J. BACHELOR OF SCIENCE IN
ACCOUNTANCY 5th YEAR STUDENT
Mobile Number: 09234823566
Email Address: [email protected]
Address: Toril, Davao City, Philippines
Career Objectives
To gain experience in a progressive
company/firm that provides an opportunity to
capitalize my technical skills and abilities in the
field of accounting and finance.
Key Competencies
Knowledgeable in accounting standards
(IFRS, IAS and GAAP)
Proficient in financial statements preparation
and financial ratio analysis
Adept in Microsoft Office applications such
as Word, Excel, and PowerPoint
Excellent command in both spoken and
written English
Competent interpersonal skills and able to
work harmoniously with a team
Familiar with the basic features of SAP
Business One accounting software
Computer Savvy and adept in Photoshop and
video editing
Loyalty towards work and duties
Willingness to learn
Educational Background
High School Saint Peter’s
College of Toril
College (4th Year
Student) Ateneo de Davao
University
Achievements
Graduated Salutatorian in the High School
Level
Consistent Deans Lister in the College Level
Awarded the Most Outstanding Junior
Philippine Institute of Accountants (JPIA)
member of 2014
Awarded with a certificate of completion of
the SAP Business One Technical Proficiency
Grant-In-Aid scholar for 4 years and counting
Extra-curricular Involvements
Junior Philippine Institute of Accountants
(JPIA) Creative Pool Executive Committee
member (2015-2016)
Fourth Year Accountancy Students
Executive Council (FASEC) Creative Pool
Head (2015-2016)
Ateneo de Davao University Scholars
Society Creative Pool Head (2015-2016)
Ateneo Reaching Towards Excellence
(ARETE) exclusive club for honor students
member (2013-2015)
Accountancy Students Executive Council
(ASEC) Creative Pool Head (2016-2017)
EPICUREAN | 187
ANSING, JEANETTE AMABELLE E.
BACHELOR OF SCIENCE IN
ACCOUNTANCY 5th YEAR STUDENT
+639483265222
EDUCATION
Ateneo de Davao University
Bachelor of Science in Accountancy
President’s Lister S.Y. 2014-2015 2nd
semester
Dean’s Lister S.Y. 2014-2015 1st semester
Dean’s Lister S.Y. 2013-2014 2nd semester
President’s Lister S.Y. 2013-2014 1st
semester
President’s Lister S.Y. 2012-2013 1st & 2nd
semesters
St. Mary’s College of Tagum – Tagum City
Secondary Education
Graduated as Second Honorable Mention
President of Vocation Promoters’ Club
Secretary of Peer Counselors’ Club
Sports Writer of school paper Marian Voice
CLUBS
Junior Philippine Institute of Accountants-
AdDU Local Chapter
Logistics Committee Member
Campus Liturgical Ministry
Member
SEMINARS/WORKSHOPS
SAP Business One Training Course
Caveat Emptor Symposium
Summer SAPPHIREans Work Ethics and
Professionalism
Leadership and Development Conference
JPIA Summit: Seminar 3 with the theme
“Meet your future employers”
JPIA Summit: Seminar 2 with the theme
“Meet the Ateneo Alumni from SGV: A
career talk”
Civic Welfare Training Service I & II
Ateneo de Davao University’s National
WORK EXPERIENCE
2015 ANFLOCOR Summer Job Program
General Accounting Department
TADECO
Bo. Antonio Floirendo
SKILLS
Technical and creative writing
Microsoft Word, Excel, and Powerpoint,
SAP
CHARACTER REFERENCE
Dr. Belinda S. Villegas, CPA
Full-time Faculty, Accountancy Department
Part-time Professor, MBA and MPA Graduate
Programs
0922-832-0325
Ms. Joan Ang, CPA
Part-time Faculty, Accountancy Department
Assistant Manager, Bank of the Philippine
Islands
0917-716-2601
PERSONAL DETAILS
Date of Birth July 8, 1996
Age 20 years’ old
Address Doña Segunda Building, C.M.
Recto Street, Davao City 255
Purok 4-B, Barangay
Cambanogoy, Poblacion,
Asuncion, Davao del Norte
EPICUREAN | 188
ARYATA, DAWN NICCA D. BACHELOR OF SCIENCE IN
ACCOUNTANCY 5th YEAR STUDENT
EDUCATION
Ateneo de Davao University Course:
Bachelor of Science in Accountancy
Davao del Norte State College
Year Graduated: 2012
Honors/Awards Received: Second
Honorable Mention
ORGANIZATIONS
Ateneans Reaching Towards
Excellence (ARETE) – Vice President
for Spirituality
JPIA (AdDU Local Chapter) -Member
Junior Philippine Institute of Accountants
(Region 11) – Member
Junior Philippine Institute of Accountants
(National) – Member
Ateneans Reaching Towards Excellence
(ARETE) – Member
JPIA (AdDU Local Chapter) – Publicity
Comimittee-Member
Accountancy Student’s Executive Council –
Production Committee – Member
Accountancy Class Officer – Vice President
AWARDS AND RECOGNITIONS
Gawad: Gabi ng Parangal Awardee
President’s List First and Second
Quizbowl 2016 – Champion Team Category
PICPA Quizbowl 2016 – 8th place Individual
Category
JPIA Regional MidYear Convention –
Auditing Cup – 3rd place
Search for the Most Outstanding
Accountancy Student of the Philippines-
Participant
ARETE Grand Slam Award (Three-Peat
Honor Student)
Third Year Accounting Quiz Bowl –
Participant
English Speech Festival (Oratory Speech)-
Champion
First Year Accounting Quiz Bowl-
Participant
EMPLOYMENT BACKGROUND
2015 Tagum Agricultural Development
Company (TADECO)
Sapphireans Summer Job Program 2016
2013 Tagum Agricultural Development
Company (TADECO)
SEMINARS AND TRAININGS
SAP Business One Training Course
DTI and FDA Talks: Caveat Emptor
Symposium (Consumers’ Rights)
Board of Accountancy Talk
CRC Talk: Road to CPA
SGV TALK: Meet the Ateneo Alumni from
SGV: A Career Talk
SGV TALK: Meet Your Future Employers
Civic Welfare Training Service I & II
(Ateneo de Davao University’s National
Service Training Program)
SKILLS
Technical Skills and Creative Writing
Computer: Office (Microsoft Word, Excel &
PowerPoint); SAP
Sports: Basketball, Baseball
EPICUREAN | 189
JOSHUA REY B. COSARE BACHELOR OF SCIENCE IN
ACCOUNTANCY 5th YEAR STUDENT
EDUCATION
Ateneo de Davao University
Dean’s Lister
Topnotcher in the Advanced Accounting
2 Departmental Examination in the First
Semester S.Y. 2015-2016
President’s Lister S.Y. 2013-2014 1st
semester
St. Marry’s College of Bansalan –
Bansalan, Davao del Sur
Graduated as With Honor
Student Supreme Council Auditor
Peer Counselor’s PIO
Won3rd place in MathSciCom 2011 Quiz
Bee participated by different schools in
Davao del Sur
CLUBS
Junior Philippine Institute of Accountants
Logistic Committee Member
Christ Youth in Action
Accountancy Jaguars (Accountancy
Talents)
Art Company
SEMINARS/WORKSHOPS
SAP Business One Training Course
Caveat Emptor Symposium: A forum
raising awareness on consumers’ rights
SKILLS
Realistic drawing
Microsoft Word, Excel, and Powerpoint,
Access
SAP Business One
PERSONAL DETAILS
Date of Birth December 6, 1995
Age 20 years old
Status Single
Address Juan Luna Street , Bansalan,
Davao del Sur
CHARACTER REFERENCE
Joan Ang, CPA Faculty Member, Accountancy
Depertment
Ateneo de Davao University
+63 917 716 2601
Ma. Corazon Gabayan, CPA
Faculty Member, Accountancy
Depertment
Ateneo de Davao University
+63 942 638 2552
EPICUREAN | 190
JASPER NIKKO ESTIMADA BACHELOR OF SCIENCE IN
ACCOUNTANCY 5th YEAR STUDENT
PERSONAL INFORMATION
Age 21 years old
Civil Status Single
Sex Male
Date of Birth October 11, 1995
EDUCATION
Ateneo de Davao University
Bachelor of Science in Accountancy
Panabo National High School
Special Science Curriculum
High School
Valedictorian
Panabo Central Elementary School
Special Education - Fast Learners
Elementary
Valedictorian
AFFILIATIONS
Ateneans Reaching Towards
Academic Excellence (ARETE)
Auditor (2016-2017)
Auditor (2015-2016)
Creative Team Member (2014-2015)
Senior Member (2014-2017)
Junior Member (2013-2014)
Junior Philippine Institute of
Accountants
Member (2012-2017)
Art Company (ArtCo)
Member (2015-2017)
Classroom
Creative Head (2015-2017)
CONTEST/TRAINING
2nd Runner Up
Management Advisory Services Cup, 2016
Regional Mid-Year Conference
INTERNSHIP
Navales Accounting and Consultancy Firm,
Davao City
EPICUREAN | 191
MAMACLAY, MARICON M. BACHELOR OF SCIENCE IN
ACCOUNTANCY 5th YEAR STUDENT
EDUCATION
Atendeo de Davao University
Course: Bachelor of Science in Accountancy
Fatima College of Camiguin
Year Graduated: 2012
Honors/Awards Received:
Class Salutatorian, Subject Award in CLVE and
Makabayan, Girl Scout Leadership Awardee,
Service Award in Journalism, Rizal Quiz
Awardee, Athlete of the Year
ORGANIZATIONS
JPIA AdDU – Design Logistics Committee
Head
Ateneans Reaching Towards Excellence
(ARETE) – Member
Junior Philippine Institute of Accountants
(AdDU Local Chapter) – Member
Junior Philippine Institute of Accountants
(Region 11) – Member
Junior Philippine Institute of Accountants
(National) – Member
Girl Scouts of the Philippines - Venturer
Scout and School Camp-Aid
GSP Senior Planning Board - Chairman
Fatima College of Camiguin Sports Club -
President
AWARDS AND RECOGNITIONS
Slogan Making Contest – JPIA
Top 5 Most Outstanding Scholars – JSF
President’s List First and Second Semester
ARETE Grand Slam Award (Three-Peat
Honor Student)
Dean’s List First and Second Semester
Second Year Accounting Quiz Bowl -
Participant
President’s List First and Second Semester
First Year Basic Accounting League -
Participant
SEMINARS AND TRAININGS
SAP Business One Training Course
DTI and FDA Talks: Caveat Emptor
Symposium (Consumers’ Rights)
CRC Talk: Road to CPA
Junior Philippine Institute of Accountants
Mid-Year Regional Convention
SGV TALK: Meet the Ateneo Alumni from
SGV: A Career Talk
SGV TALK: Meet Your Future Employers
SGV TALKS: Glimpse into the Future: Learn
about the Corporate World
Civic Welfare Training Service I & II
(Ateneo de Davao University’s National
Service Training Program)
SKILLS
Drawing, Painting, Composing Filipino Poems
Computer: Office (Microsoft Word, Excel &
PowerPoint); SAP
Sports: Volleyball
CHARACTER REFERENCE
Name: Anthony Aguelo
Company: AdDU
Position: Faculty
Contact Number: 0947-547-4645
Name: Magdalena Solis
Company: AdDU
Position: Faculty
Contact Details: 0917-700-9463
EPICUREAN | 192
SWEETZEL DYNE L. MORALES BACHELOR OF SCIENCE IN
ACCOUNTANCY 5th YEAR STUDENT
+639332170957 / +639222805220
Filipino
CAREER OBJECTIVES
Obtain industry experience and wider
industry knowledge, particularly asset
management and control, accounting, business
management, commercial awareness and
increased responsibility by utilizing the rich
diversity of attained educational training.
EDUCATION
Ateneo de Davao University
Bachelor of Science in Accountancy
06/2012 – Present
Dean’s Lister S.Y. 2014-2015 2nd semester
Dean’s Lister S.Y. 2013-2014 2nd semester
President’s Lister S.Y. 2013-2014 1st
semester
President’s Lister S.Y. 2012-2013 1st and
2nd semesters
Lupon Vocational High School – Lupon, Davao
Oriental
Secondary Education
06/2008 – 03/2012
Graduated as Class Valedictorian – Batch
2012
Supreme Students’ Government (SSG)
Officer:
4th year representative – S.Y. 2011-2012
Vice President – S.Y. 2010-2011
School Publication “The Builders” - Editor
in Chief
Chief Girl Scout Medal Scheme Awardee
CLUBS
Junior Philippine Institute of Accountants-
AdDU Local Chapter Member
Subdominant 7 – Ateneo de Davao
University Chapel Choir Auditor for S.Y.
2014-2015 and 2015-2016
SEMINARS/WORKSHOPS
SAP Business One Training Course
Caveat Emptor Symposium
Civic Welfare Training Service I & II
SKILLS
Technical and creative writing
Office: Microsoft Word, Excel, and
Powerpoint
SAP Business One
CHARACTER REFERENCE
Ms. Joan Ang, CPA
Ateneo de Davao University
Faculty member, Accountancy Department
Bank of the Philippine Islands
Assistant Manager
0917-716-2601
PERSONAL DETAILS
Date of Birth July 31, 1995
Age 21 years old
Address
Home: Purok Pag-asa, Barangay
Ilangay, Lupon, Davao Oriental
Mailing: Room 205-1, PARS MKTG.,
Juan dela Cruz St., Davao City
EPICUREAN | 193
PINOON, SHIELDON VIC S. BACHELOR OF SCIENCE IN
ACCOUNTANCY 5th YEAR STUDENT
Prk. Sibuyas, Brgy. Gredu, Panabo City
+639309548991
ACHIEVEMENTS:
A Deans Lister from 1st year till 3rd year
college
Joined and won 1st Runner Up in the
Association of Science Educators in the
Philippines (ASEP) National Science Fair in
2012
Became a President of Red Cross Youth
Organization in Panabo National High
School in 2011
Member of Junior Philippine Institute of
Accountants (JPIA)
QUALIFICATIONS:
As a student I am always committed to do my
best in my studies and to any tasks or
responsibilities that is given to me in class.
I am able and willing to learn new stuffs, even
things which are not related to accounting,
like photo editing, video editing, simple
website design and etc.
A Youth Leader in our church.
When I am in a team, I always look to
contribute in any way to the team and if I am
voted as the team leader I always look unto
the capabilities of my teammates so that I
would be able to assign to them tasks which
suits their capabilities.
I had some experience working in a small
business and contributing to its accounting
department since my mother is the overall
director of such business.
CERTIFICATES:
SAP Business One 2016
SEMINARS:
SAP Business One Training
November 2, 2015 – March 9, 2016
Ateneo De davao University
4th Philosophers Rally
February 27, 2016
Participant
Bangsamoro Basic Law Forum
2013
Participant
SKILLS:
Trained in using SAP Business One ERP
Software.
Proficient in using Microsoft Office
applications:
o Microsoft Word 2013
o Microsoft Excel 2013
o Microsoft PowerPoint 2013
Basic skills in video editing using Adobe
Premiere Pro, Sony Vegas and Adobe After
effects.
Basic skills in editing pictures using Adobe
Photoshop.
Basic Computer Troubleshooting skills.
EDUCATIONAL BACKGROUND:
Tertiary: Ateneo de Davao University
Secondary: Panabo National High School
Elementary: Panabo Rizal Elementary School
PERSONAL INFORMATION:
Age: 20
Date of Birth: July 29, 1995
Gender: Male
Height: 5’7
Weight: 65 kg
EPICUREAN | 194
BIBLIOGRAPHY
A cupcake for everyday of the month. (n.d.). Retrieved from Milkshake:
http://mlkshk.com/p/MGG9
Allie. (2013, December 3). Simply perfect chocolate sugar cookies. Retrieved from Baking a
moment: http://bakingamoment.com/simply-perfect-chocolate-sugar-cookies/
Amanda. (2015, April 17). Black forest smoothie. Retrieved from Running with spoons:
http://www.runningwithspoons.com/2015/04/17/black-forest-smoothie/
Amber. (2015, March 10). Homemade mint oreos. Retrieved from Dessert now dinner later:
http://www.dessertnowdinnerlater.com/homemade-mint-oreos/
Arias, T. (2013, May 27). Boston cream pie ice cream sandwich recipe. Retrieved from Food
republic: http://www.foodrepublic.com/recipes/boston-cream-pie-ice-cream-sandwiches-
recipe/
Arias, T. (2013). Cookies & cream: Hundreds of ways to make the perfect ice cream sandwich.
Philadelphia: Running Press.
Arias, T. (2013, June 11). Grasshopper ice cream sandwich. Retrieved from Food republic:
http://www.foodrepublic.com/recipes/grasshopper-ice-cream-sandwich-recipe/
Ashlyn. (2016, March 25). White chocolate lemon sugar cookies. Retrieved from Belle of the
kitchen: http://belleofthekitchen.com/2016/03/25/white-chocolate-lemon-sugar-cookies/
Banana bread tiramisu. (2014, July 22). Retrieved from Sugar hero:
http://www.sugarhero.com/banana-bread-tiramisu
Berrett, A. (2014, May 6). Double chocolate chip cookies. Retrieved from Like mother like
daughter: http://lmld.org/2014/05/06/double-chocolate-chip-cookies/
Beth. (2015, November 30). Chocolate chocolate cake. Retrieved from The first year blog:
http://thefirstyearblog.com/chocolate-chocolate-cake/
Black forest mini cakes. (2015, July 14). Retrieved from Sugar hero:
http://www.sugarhero.com/black-forest-mini-cakes/
Brianne. (2014, August 21). Cupcakes & Kale chips. Retrieved from Chocolate almond coconut
ice cream sandwiches: http://cupcakesandkalechips.com/chocolate-almond-coconut-ice-
cream-sandwiches/?m
Cake with dark chocolate cinnamon glaze. (n.d.). Retrieved from Complete recipes:
http://completerecipes.com/Cake-with-Dark-Chocolate-Cinnamon-Glaze.html
EPICUREAN | 195
Caramel brownie ice cream sundae. (n.d.). Retrieved from What's Gaby cooking:
http://whatsgabycooking.com/caramel-brownie-ice-cream-sundae/
Chand, S. (n.d.). Retrieved from Your Article Library:
www.yourarticlelibrary.com/marketing/pricing/factors-affecting-pricing-product-internal-
factors-and-external-factors/32313/
Chocolate avocado smoothie (paleo, vegan, dairy-free options). (2013, April 9). Retrieved from
Texanerin baking: http://www.texanerin.com/chocolate-avocado-smoothie/
Chocolate chip ice cream. (n.d.). Retrieved from Grandmother's kitchen:
http://grandmotherskitchen.org/recipes/chocolate-chip-ice-cream-sandwich.html
Chocolate covered strawberry cakes. (2015, January 21). Retrieved from Sugar hero:
http://www.sugarhero.com/chocolate-covered-strawberry-cakes/#_a5y_p=3223575
Chocolate hot buttered rum. (n.d.). Retrieved from Food blogs: http://www.foodblogs.com/the-
cookie-rookie/2015/11/21/chocolate-hot-buttered-rum
Chocolate mudslide cake. (2016, May 16). Retrieved from Beyond frosting:
http://beyondfrosting.com/2016/05/16/chocolate-mudslide-cake/
Chocolate whiskey cake with salted caramel buttercream. (n.d.). Retrieved from Jet & Indigo:
http://www.jetandindigo.com/2015/06/chocolate-whiskey-cake-with-salted.html?m=1
Coley. (2015, August 18). Salted chocolate + caramel ice cream cake. Retrieved from Coley
cooks: http://coleycooks.com/salted-chocolate-caramel-ice-cream-cake/
Courtney. (2013, January 29). Red velvet oreo truffle brownie bars. Retrieved from Pizzazzerie:
http://pizzazzerie.com/recipes/valentines-day-red-velvet-oreo-truffle-brownie-bars/
Damodaran, A. (2016, January). Cost of capital by sector (US). Retrieved from
http://people.stern.nyu.edu/adamodar/New_Home_Page/datafile/wacc.htm
Double chocolate cupcakes with salted caramel buttercream. (n.d.). Retrieved from The little
kitchen: http://www.thelittlekitchen.net/double-chocolate-cupcakes-with-salted-caramel-
buttercream/
Double chocolate cupcakes with white chocolate cream cheese frosting. (2015, October 28).
Retrieved from Will cook for smiles: http://www.willcookforsmiles.com/2015/10/double-
chocolate-cupcakes-with-white-chocolate-cream-cheese-frosting.html#_a5y_p=4617176
Early, L. M. (2013, March 24). Chocolate pistachio cupcakes. Retrieved from Your cup of cake:
http://www.yourcupofcake.com/2013/03/chocolate-pistachio-cupcakes-2.html
EPICUREAN | 196
Eldredge, S. (2007, December 31). 52 weeks of baking. Retrieved from Pop sugar:
http://www.popsugar.com/food/Banana-Cupcakes-Dulce-de-Leche-Chocolate-
911919#photo-911919
Evink, J. (2015, October 21). White chocolate latte recipe. Retrieved from Julie's eats and treats:
http://www.julieseatsandtreats.com/white-chocolate-latte-recipe/
Featherby, L. (n.d.). Coconut ice cream sandwiches. Retrieved from Gourmet traveller:
http://www.gourmettraveller.com.au/recipes/recipe-search/fast/2016/1/blueberry-and-
coconut-ice-cream-sandwiches/
Finduniversity.ph. (n.d.). Universities and Colleges in Davao City. Retrieved from
Finduniversity.ph: http://www.finduniversity.ph/universities/r=davao-region/c=davao-
city/
Healthy salted caramel mocha smoothie. (2016, February 18). Retrieved from With salt and wit:
http://withsaltandwit.com/healthy-salted-caramel-mocha-smoothie/
Honeycomb cake. (2013, April 25). Retrieved from Let the baking begin:
http://letthebakingbeginblog.com/2013/04/honey-comb-cake/
Hot chocolate thumbprint cookies. (2014, December 3). Retrieved from A latte food:
http://www.alattefood.com/hot-chocolate-thumbprint-cookies/
Howell, M. (2015, December 16). Chocolate orange cookies and the great food blogger cookie
swap. Retrieved from Ice cream inspiration: http://icecreaminspiration.com/chocolate-
orange-cookies-and-the-great-food-blogger-cookie-swap/
Huff, T. (2015, July 28). Mint cookies n cream cake. Retrieved from The cake blog:
http://thecakeblog.com/2015/07/mint-cookies-n-cream-cake.html
Hunt, J. (n.d.). Push System Vs. Pull System Inventory Control. Retrieved from Small Business :
http://smallbusiness.chron.com/push-system-vs-pull-system-inventory-control-
12650.html
Investopedia. (n.d.). Investopedia. Retrieved from Production Cost:
http://www.investopedia.com/terms/p/production-cost.asp
Investopedia. (n.d.). Investopedia. Retrieved from Investopedia:
http://www.investopedia.com/terms/d/debtequityratio.asp
Jamie. (2015, July 1). S'mores waffle sundaes. Retrieved from My baking addiction:
http://www.mybakingaddiction.com/smores-waffle-sundaes/
EPICUREAN | 197
Jamie. (2015, August 3). Strawberry chocolate smoothie. Retrieved from My baking addiction:
http://www.mybakingaddiction.com/strawberry-chocolate-smoothie/
Jen. (2015, November 16). Salted caramel milk chocolate cake. Retrieved from Carlsbad
cravings: http://www.carlsbadcravings.com/salted-caramel-milk-chocolate-cake/
Johnson, A. (n.d.). Coconut milk hot chocolate. Retrieved from She wears many hats:
http://shewearsmanyhats.com/coconut-milk-hot-chocolate-recipe/
Kara. (2016, August 4). Coconut oatmeal chocolate chip cookies. Retrieved from Creations by
kara: http://www.creationsbykara.com/2016/08/coconut-oatmeal-chocolate-chip-
cookies.html/
Kayley. (2016, April 18). Matcha avocado mint chocolate mousse swirl ice creanm. Retrieved
from The kitchen mccabe: http://thekitchenmccabe.com/2016/04/18/matcha-avocado-
mint-chocolate-mousse-swirl-ice-cream/
Kurtz, D. &. (2012). Principles of contemporary marketing. South-Western Cengage Learning.
Kurtz, D. &. (2012). Principles of Contemporary Marketing. South-Western Cengage Learning.
Lane, C. (2015, Febuary 11). Chocolate waffle ice cream sandwiches. Retrieved from Dessert for
two: http://www.dessertfortwo.com/2015/02/chocolate-waffle-ice-cream-sandwiches/
Leeuwma, M. B. (n.d.). Strawberry chocolate mousse cake. Retrieved from Ciao:
http://www.ciaowinnipeg.com/strawberry-chocolate-mousse-cake/
Lindsay. (2015, December 28). Triple chocolate cheesecake. Retrieved from Love & Olive oil:
http://www.loveandoliveoil.com/2015/12/triple-chocolate-cheesecake.html#comment-
137387
Liza. (2014, November 25). Matcha green tea white chocolate cookies. Retrieved from Salu-salo
recipes: http://salu-salo.com/white-chocolate-green-tea-
cookies/?utm_content=buffer3b8b9&utm_medium=social&utm_source=pinterest.com&u
tm_campaign=buffer
Mango mousse cake. (2012, December 18). Retrieved from Whisk affair:
http://www.whiskaffair.com/2012/12/mango-mousse-cake.html
Maple buttercream bacon cupcakes. (n.d.). Retrieved from Wilton:
http://www.wilton.com/maple-buttercream-bacon-cupcakes/WLRECIP-
8530.html?crlt.pid=camp.bVDHYwuirQ5B#q=bacon&start=1
Matcha cocoa. (n.d.). Retrieved from https://www.pinterest.com/pin/489273947000408273/
EPICUREAN | 198
Melted hot chocolate with sea salt whipped cream. (2014, January 16). Retrieved from
Adventures cooking: http://adventuresincooking.com/2014/01/melted-hot-chocolate-
with-sea-salt.html
Merchant partnership. (n.d.). Retrieved from https://www.bdo.com.ph/mobile/personal/credit-
debit-cards/merchant-accreditation
Mini chocolate mudcakes with salted caramel icing. (n.d.). Retrieved from Lake land:
http://www.lakeland.co.uk/r80306/Mini-Chocolate-Mud-Cakes-with-Salted-Caramel-
Chocolate-Icing
Mint chocolate cupcakes. (2011, October 7). Retrieved from Annie's eats: http://www.annies-
eats.com/2011/10/07/mint-chocolate-cupcakes/
Mocha latte. (n.d.). Retrieved from A clean plate: http://www.acleanplate.com/recipe/mocha-
latte/
Murdoch Books. (2005). Bake it. Australia: Murdoch Books Pty Limited.
Notter, E. (2011). The art of the chocolatier. New Jersey: John Wiley & Sons.
Parragon. (2003). Chocolate & Baking. Bath, United Kingdon: Parragon.
Philippine Statistic Authority. (2013, June 21). Population of Davao City Reached 1.4 Million
(Results from the 2010 Census of Population and Housing). Retrieved from Philippine
Statistic Authority: https://psa.gov.ph/content/population-davao-city-reached-14-million-
results-2010-census-population-and-housing
Philippine Statistics Authority. (2012, May 10). Retrieved from Philippine Statistics Authority:
www.nscb.gov.ph/stats/ptsa/ppt/Davao%20Stat%20Conference_RAV.ppt
Robinson, N. (2010, September 18). White chocolate mocha mousse cake. Retrieved from
Bakers royale: http://www.bakersroyale.com/white-chocolate-mocha-mousse-cake/
Roxana. (2016, May 9). Soft chewy chocolate peanut butter chip cookies. Retrieved from A
treats affair: http://atreatsaffair.com/soft-chewy-chocolate-peanut-butter-chip-cookies/
Sally. (2013, March 1). Salted caramel dark chocolate cookies. Retrieved from Sally's baking
addiction: http://sallysbakingaddiction.com/2013/03/01/salted-caramel-dark-chocolate-
cookies/
Salted caramel chocolate cupcakes. (n.d.). Retrieved from Table for two blog:
http://www.tablefortwoblog.com/salted-caramel-chocolate-cupcakes/
EPICUREAN | 199
Salted caramel chocolate vegan ice cream. (2016, June 5). Retrieved from Earthyandy:
http://www.earthyandy.com/smoothie-bowl-recipes/salted-caramel-chocolate-vegan-
icecream
Sample Size Calculator. (n.d.). Retrieved from The Survey System:
www.surveysystem.com/sscalc.htm
S'mores hot chocolate. (n.d.). Retrieved from Minimalist baker:
http://minimalistbaker.com/smores-hot-chocolate-charity-water-e-cookbook/
S'mores mini cheesecakes. (2015, April 21). Retrieved from Mamas gotta bake:
http://mamasgottabake.com/2015/04/smores-mini-cheesecakes/
Stacy. (2014, January 24). Chocolate nutella cheesecake cake. Retrieved from Wicked good
kitchen: http://wickedgoodkitchen.com/chocolate-nutella-cheesecake-cake/
Stewart, M. (2006, January). Triple chocolate mousse cakes. Retrieved from
http://www.marthastewart.com/317890/triple-chocolate-mousse-cake
Traci. (n.d.). Perfect chocolate espresso cupcakes. Retrieved from Vanilla and bean:
http://vanillaandbean.com/perfect-chocolate-espresso-cupcakes/
Triple layer chocolate matcha cake. (n.d.). Retrieved from A cozy kitchen:
http://acozykitchen.com/chocolate-matcha-cake/
Tripper, D. F. (2014, September 11). 9 Homegrown coffee shops in Davao you must try.
Retrieved from http://insights.looloo.com/davao-coffee-shops/
Tullos, H. (2013, January 17). Bourbon hot chocolate. Retrieved from Sugar dish me:
http://www.sugardishme.com/bourbon-spiked-hot-chocolate/
White chocolate mango smoothie. (2014, January 21). Retrieved from Pretty simple sweet:
http://prettysimplesweet.com/white-chocolate-mango-smoothie/
White hot chocolate. (2014, December 12). Retrieved from Celebrating sweets:
http://celebratingsweets.com/homemade-white-hot-chocolate/
Wiley. (n.d.). Wiley. Retrieved from Wiley:
www.wiley.com/college/kaplan/0471203823/atools/market_research.ppt
Worldatlas. (n.d.). Philippine Facts. Retrieved from Worldatlas:
http://www.worldatlas.com/webimage/countrys/asia/philippines/phfacts.htm