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VIRGEN MILAGROSA UNIVERSITY FOUNDATION

COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY


Martin P. Posadas Avenue, San Carlos City, Pangasinan, 2420 Philippines

CHAPTER I

EXECUTIVE SUMMARY

INTRODUCTION

“Food is our common ground, a universal experience.” ─ James Beard.

Food is an important factor of life that fuels every individual across the globe.

Food is not just a necessity, it is one of our greatest sources of pleasure. It gives

the brain a big “pleasure hit” that keeps people coming back for more. The food

you choose to eat can have a direct impact on your ability to enjoy life to its

fullest. It is a pleasure that plays a significant role in understanding happiness.

Food industry is a high-risk business proposition, the proponents got a

lofty level of competition and a lot of details must be obtained to get ahead from

its competitors. One way to get ahead from the competitors is to choose wisely

the food which is going to offer. Asian people really love spicy food, since

Philippines is an Asian Country the proponents decided to put up a food

business that offers spicy products. Although spicy foods have some effects for

people who has health issues such as severe indigestions, nausea, vomiting,

abdominal pain, acid reflux, heartburn and diarrhea, it also contributes health

benefits such as weight loss, cancer prevention, lower blood pressure, heart

health and boost production of feel-good hormones such as serotonin which

help ease depression and stress. Spicy foods have a great demand in the

Philippines.

Some may not like the burning sensation of chili but many are willing to

try and enjoy the hotness it brings, besides not only Filipinos loves it but also

other Asian, South American and Caribbean people who stays in the Philippines.

According to a study of Michigan-based natural extracts specialist KalSec, 40%

of European people, 29% of Asian people (which includes the Filipinos) and

SPICY MANIA 1
VIRGEN MILAGROSA UNIVERSITY FOUNDATION
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Martin P. Posadas Avenue, San Carlos City, Pangasinan, 2420 Philippines

18% of the American people all around the world loves to eat hot and spicy

foods. Overall, there was a five percent increase in hot and spicy foods in 2017

versus 2016.

SPICY MANIA aims to provide people a restaurant that will only serve

spicy products that can challenge every customer to try foods with different level

of spiciness.

PROJECT BACKGROUND

This study is about catering spicy products as its main dish with eight (8)

options: main course, pasta, noodles, burgers, tacos, desserts, appetizers, and

salad. All these options are leveled into three; level 1- moderately hot, level 2-

hot, level 3 extremely hot. The proponents came up with this idea as remedy for

those people who do not have the same level of spicy tolerance. The business

wants to emphasize that SPICY MANIA is not just for spicy lovers but could also

be a place for those people who could not resist spiciness of the foods.

PROJECT PROFILE

The proposed business will be owned and managed in the form of sole

proprietorship by Ms.Jelly Joyce Gonzales. She is currently taking up Bachelor

of Science in Accountancy and desires to have her own business.

BUSINESS NAME

A good business name can make your customers remember you easily

specially when it is unique. However, if you are starting a small business, you

might have other priorities and a budget that doesn’t allow you to spend that

money on a name. The proposed name of the business is “Spicy Mania.” The

term “mania” was inspired by extreme desire of eating spicy foods. It can also be

interpreted as obsession in spicy foods, inspired by those who are fond of spicy

foods.

SPICY MANIA 2
VIRGEN MILAGROSA UNIVERSITY FOUNDATION
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Martin P. Posadas Avenue, San Carlos City, Pangasinan, 2420 Philippines

BUSINESS LOGO

BUSINESS

LOCATION

San Carlos City is located in the central part of Pangasinan. The cities

closest to San Carlos are Dagupan, and Urdaneta and the nearest municipalities

are Malasiqui and Calasiao. The proposed location of the business is located at

New Public Market (Roxas Boulevard, San Carlos City, Pangasinan). This is

an ideal location for the proposed business since it is near to schools, and

accessible.

VISION

To become the best restaurant locally that has and will to explore and

continue providing quality food products to satisfy its valuable consumers.

MISSION

To promote and maintain spice and food industries as a quality restaurant

offering different level of spicy foods that is welcomed into the hearts and mind

of valuable consumers locally.

SPICY MANIA 3
VIRGEN MILAGROSA UNIVERSITY FOUNDATION
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Martin P. Posadas Avenue, San Carlos City, Pangasinan, 2420 Philippines

GENERAL OBJECTIVES OF THE PROJECT

This study aims to achieve the following objectives:

1.) To line up with the competitors using our unique approach in catering

spicy foods, and offer an affordable meals that satisfies the

consumers.

2.) To serve spicy foods that can eat by both spicy and non-spicy lovers.

3.) To promote the recycled materials by using paper as packaging for

take-outs.

4.) To offer an affordable, but delicious and satisfying spicy foods that can

make the customers come back.

SCOPE AND LIMITATION

This study will tackle the feasibility study of a spicy food restaurant

business that is located at Roxas Boulevard, also the acceptance of the

present and potential customers, on how they will respond to these foods served

in restaurants that are usually found in the streets. The respondents are those

who belong to the estimated age bracket 15-60 years old, male and female who

are residents of San Carlos City.

The competitors that the business will consider are those fast food

restaurants which are located within the vicinity of San Carlos City.

METHODOLOGY

This part of study presents and explains all data gathered and corresponding

analysis of methods applied to the study. It includes discussion of the sources of

data, methods used in acquiring data, and instruments used in data analysis.

SPICY MANIA 4
VIRGEN MILAGROSA UNIVERSITY FOUNDATION
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Martin P. Posadas Avenue, San Carlos City, Pangasinan, 2420 Philippines

This chapter also deals with the information of the research design that would

serve as basis of the study.

RESEARCH DESIGN

The proponents will be using Descriptive method of research using the

formulated Survey Questionnaire. In order to have access on pertinent

information and gather important data about customer’s taste and preferences

when it comes to spicy foods, the proponents agreed to use Questionnaires. In

this process, we find it very easy and reliable. The proponents will use checklist

format.

INSTRUMENTATION AND DATA COLLECTION

The descriptive analysis is said to be quantitative because it uses

descriptive statistics wherein the data come from survey. The proponents will

conduct survey among respondents to get their opinion regarding spicy food

business. The main tool used in data gathering of the study is survey

questionnaire. It is divided into three parts:

First is an introductory letter informing the respondents on what the study

is all about and assuring them that the data gathered will be highly confidential.

Second, is the profile of the respondents: (a) Name, (b) Age, (c) Gender,

and (d) Occupation.

Lastly, the Questions are made for the respondents to get their personal

choice when it comes to spicy foods. By these questions the proponents will be

able to determine the demand for the products.

SPICY MANIA 5
VIRGEN MILAGROSA UNIVERSITY FOUNDATION
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Martin P. Posadas Avenue, San Carlos City, Pangasinan, 2420 Philippines

RESEARCH INSTRUMENT

VALIDITY AND RELIABILITY OF RESEARCH INSTRUMENT

To establish validity and reliability, dependability and credibility are

planned and executed so that analysis and interpretations of data would be

reliable.

To ensure dependability, proponents will prolong the period of time in

reviewing and analyzing the data gathered from the respondents. Findings of

this study will be compared with the results on similar studies.

To ensure credibility, after gathering information from indirect competitors the

proponents will follow up an interview. This will allow the respondents the

freedom to express themselves without any restrictions. Thus, legitimacy and

accuracy of the procedures and decisions will make the research validated.

TOOLS FOR DATA ANALYSIS

For data analysis and interpretation, the proponents used Sloven’s

Formula to determine the needed number of respondents.

Formula:
n= N .

1 + Ne2

Where:

N = the number of people who qualify in the area of study

e = margin of error which is 5%

n = number of needed respondents

Solution:

SPICY MANIA 6
VIRGEN MILAGROSA UNIVERSITY FOUNDATION
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Martin P. Posadas Avenue, San Carlos City, Pangasinan, 2420 Philippines

n = 94,227 .
2
1+ (94,227) (0.05)

CHAPTER II

MARKET STUDY

THE PRODUCT

The proposed business is SPICY AVENUE, a restaurant that offers spicy

dishes with different level of spiciness. The proposed restaurant will offer

different spicy foods categorized into eight (8) options: main course, pasta,

noodles, burgers, tacos, desserts, appetizers, and salad.

MENU

Main Course

SpiMa Baked Salmon SpiMa Chicken Posole SpiMa Chicken BBQ

SpiMa Pigar-Pigar Big Bang Shrimp SpiMa Sisig

SpiMa Bicol Express SpiMa Chicken 65 SpiMa Kare-kare

SPICY MANIA 7
VIRGEN MILAGROSA UNIVERSITY FOUNDATION
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Martin P. Posadas Avenue, San Carlos City, Pangasinan, 2420 Philippines

Pasta and Noodles

Green Spaghetti Chicken RollUps Shrimp-topped Spaghetti

SpiMa Carbonara SpiMa Chicken Lasagna SpiMa DragonNoodles

Burger and Tacos

SPCY Burger Filled-Shrimp Taco Sausage Quesadillas

Desserts

Chilli’nPeanutCookie Chilli’n Ice Cream Luscious Brownies

Pinya-spicy Cake Angry Apple-Pie

SPICY MANIA 8
VIRGEN MILAGROSA UNIVERSITY FOUNDATION
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Martin P. Posadas Avenue, San Carlos City, Pangasinan, 2420 Philippines

Appetizers

Chicken kabobs Dynamite Poppers Mini-corn Muffins

Sweetn’SpicyCallienteWing SpiMa Chicken Skewers

Salad

CrispN’Spicy cucumber salad Chicken Lettuce Wraps

Drinks

Milk Milk Chocolate Lemon and Orange Juice

SPICY MANIA 9
VIRGEN MILAGROSA UNIVERSITY FOUNDATION
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Martin P. Posadas Avenue, San Carlos City, Pangasinan, 2420 Philippines

PRODUCT DESCRIPTION

MAIN COURSE

1.) SpiMania Baked Salmon ─ is a sweet, spicy and smoky honey oven

baked salmon recipe you won’t be able to stop eating.

2.) SpiMa Chicken Posole ─ is the best kind of soup for this in-between “not

quite cold, but not quite warm” weather we’ve been having. It’s fresh and

light, spicy and cool, crunchy and chewy all in one bowl.

3.) SpiMa Barbeque ─ is everyone’s favorite where skewers are grilled. It is a

marinated slice of pork thread on a skewer and grilled to perfection.

4.) SpiMa Pigar-Pigar ─ is a very popular street food in Dagupan, Pangasinan

made out really thin slices of beef served with fresh slices of onions.

5.) Big bang Shrimp ─ is topped with sweet and spicy bang bang sauce. They

are the perfect lightened up meal.

6.) SpiMa Sisig ─ is made with chopped pork, onions, citrus juice, and chili

peppers. Crispy, spicy and absolutely tasty, it makes a appetizer or dinner

entrée.

7.) SpiMa Bicol Express ─ is a mixture of pork meat and shrimp paste

(bagoong) cooked in coconut cream. This is one of the favorites not only

in Bicol but all over the Philippines.

8.) SpiMa Chicken 65 ─ is a punchy meal recipe from South India that consist

of spicy deep fried chicken pieces sautéed in sauces, ginger garlic and

lots of green chilies.

SPICY MANIA 10
VIRGEN MILAGROSA UNIVERSITY FOUNDATION
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Martin P. Posadas Avenue, San Carlos City, Pangasinan, 2420 Philippines

9.) SpiMa Kare-kare ─ this savory stew is packed with flavor thanks to the

peanut butter and is hearty enough to satisfy anyone.

PASTA AND NOODLES

1.) Green spaghetti ─ this green spaghetti is a delightfully spicy dish with

poblano peppers cilatro cream cheese and more.

2.) Chicken Roll-ups ─ we usually use chicken and cheese and milk chicken

soup and crescent rolls there are only 5 ingredients for a delicious

weeknight meal.

3.) Shrimp-topped Spaghetti ─ is a mixture of garlic and then the shrimp

topping with the apices it is easy spicy shrimp spaghetti recipe. guys the

seafood pasta.

4.) SpiMa Carbonara ─ is made with garlic and red pepper flakes that the

carbonara pasta is spicier than normal super tasty.

5.) SpiMa Chicken Lasagna ─ this unique chicken lasagna is made with

layeta of lasagna. we use cilandro and mexican cheese spinach diced

tomatoes and cooked chicken.

6.) SpiMa Dragon Noodles ─ spice up dinner with these fiery and delicious

Dragon noodles it is super spicy and a little Goes a long way.

BURGERS AND TACOS

1.) SPCY Burger ─ These burgers are chock full of spicy peppers. It is a

mixture together the beef, garlic, jalapeno peppers, poblano pepper,

habanero pepper, and red pepper flakes.

2.) Shrimp filled Taco ─ Grilled shrimp tacos just might be your new

summertime favorite, we love serving them during patio parties alongside

some sangria.

SPICY MANIA 11
VIRGEN MILAGROSA UNIVERSITY FOUNDATION
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Martin P. Posadas Avenue, San Carlos City, Pangasinan, 2420 Philippines

3.) Sausage Quesadillas ─ are filled with caramelized onions, cheese and

tons of sausage. There’s nothing better for dinner or appetizers than

quesadillas.

DESSERTS

1.) Chilli’n Peanut Cookie ─ This is one versatile cookie when it comes to

spicy seasonings.

2.) Chilli’n Ice Cream ─ It's a given that we offer vanilla, chocolate, and

strawberry flavors to add your base (either ice cream, yogurt, coconut

milk, or tart yogurt).

3.) Luscious Brownies ─ It is so easy to make, you can mix it up in almost 15

minutes and put it in the oven to bake while you finish getting ready.

4.) Pinya-spicy Cakes ─ This cake was so easy to make and it looks great.

It's moist and very good with this spicy orange cream cheese.

5.) Angry Apple-Pie ─ the mixture of apples should create a combined sweet-

tart flavor balance. Serve slightly warm with vanilla ice cream or with a

wedge of cheddar cheese.

APPETIZERS

1.) Chicken kabobs ─ These grilled chicken kabobs are made with marinated

chicken and colorful vegetables, all threaded onto skewers and cooked to

perfection.

2.) Dynamite Poppers ─ Dynamite Lumpia are a must for any party! Made

with finger chili peppers and meat filling, they’re crispy, crunchy, slightly

spicy,

3.) Mini-corn Muffins ─ These Mini Cornbread Muffins are fluffy and flavorful!

Enjoy them with a big bowl of soup or chili or on their own for a tasty

snack!

SPICY MANIA 12
VIRGEN MILAGROSA UNIVERSITY FOUNDATION
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Martin P. Posadas Avenue, San Carlos City, Pangasinan, 2420 Philippines

4.) Sweet n’ Spicy Calliente Wings ─ The meat literally falls off the bones of

these wings! Spice lovers will get a kick out of the big sprinkling of red

pepper flakes.

5.) SpiMa Chicken Skewers ─ They are super-fast to prep and to cook,

there’s very little cleanup, and you can mix up the flavors really easily so

you don’t get bored

SALAD

1.) CrispN’Spicy cucumber salad ─ Rice vinegar, sesame oil and cayenne

create a sweet-hot Asian flavor that will light up your taste buds!

2.) Chicken Lettuce Wraps ─ These chicken lettuce wraps contain ground

chicken and veggies cooked in a savory sauce and served in cool lettuce

leaves.

DRINKS

1.) Milk ─ The milk of cows, goats, or other animals, used as food by humans.

2.) Milk chocolate ─ Milk chocolate is chocolate that has been made with

milk. It is lighter in colour and has a creamier taste than plain chocolate.

3.) Lemon and orange juice—is a great addition to a beautiful day. Serve this

refreshing treat with orange and lemon slices on ice.

SPICY MANIA 13
VIRGEN MILAGROSA UNIVERSITY FOUNDATION
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Martin P. Posadas Avenue, San Carlos City, Pangasinan, 2420 Philippines

SPICY MANIA

MENU AND PRICES

PRODUCTS PRICES

Baked Salmon ₱103.00


Chicken Pasole ₱ 77.00
Chicken Barbeque ₱ 78.00
Spicy Pigar Pigar ₱ 93.00
Big Bang Shrimp ₱ 87.00
Sisig ₱ 79.00
Bicol Express ₱ 76.00
Chicken 65 ₱ 76.00
Kare-kare ₱ 77.00
Green Spaghetti ₱ 79.00
Chicken Roll Ups ₱112.00
Shrimp-topped Spaghetti ₱ 88.00
Carbonara ₱ 71.00
Chicken Lasagna ₱ 93.00
Dragon Noodles ₱ 72.00
Spicy Burger ₱ 81.00
Shrimp Filled Taco ₱ 79.00
Sausage Quesadillas ₱ 77.00
Peanut Cookie ₱ 41.00
Chilli'n Ice Cream ₱ 60.00
Luscious Brownies ₱ 48.00
Pinya-spicy Cake ₱ 51.00
Angry Apple-Pie ₱ 54.00
Chicken Kabobs ₱ 63.00
Sweet N' Spicy Dynamite Poppers ₱ 40.00
Mini-corn Muffins ₱ 41.00
Sweet n Spicy Calliente Wings ₱ 88.00
Chicken Skewers ₱ 62.00
CrispN'Spicy Cucumber Salad ₱ 89.00
Chicken Lettuce Wraps ₱ 73.00
Milk ₱ 45.00
Milk Chocolate ₱ 46.00
Lemon and Orange Juice ₱ 43.00
Plain Rice ₱ 20.00
Corned Rice ₱ 32.00
Fried Rice ₱ 38.00

SPICY MANIA 14
VIRGEN MILAGROSA UNIVERSITY FOUNDATION
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Martin P. Posadas Avenue, San Carlos City, Pangasinan, 2420 Philippines

Chili Rice ₱ 39.00

LOCATION

The proponents decided to put the proposed business at Town center. It is

located at Rizal Avenue, San Carlos City Pangasinan. (2 nd floor of town center)

This location was chosen because it is accessible and near the schools. It will be

a perfect location for the business since it near the national road and is easy to

find.

SPICY MANIA 15
VIRGEN MILAGROSA UNIVERSITY FOUNDATION
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Martin P. Posadas Avenue, San Carlos City, Pangasinan, 2420 Philippines

MARKET AREA

The market area of the proposed business covers the entire San Carlos

City in Pangasinan. The main focus of the business is attracting picky eaters to

try the product served in different spicy level. The number of people who qualify

in the area of study from ages 15 – 60 years old is estimated to be 94,227. The

proponents obtained 398 respondents with the use of Sloven’s Formula.

MARKET SHARE

Market Share refers to a company’s portion of sales within the entire market in

which it operates. The metric indicates a company’s size within its market. The

market share computed is based on the Part I of the survey where the 398

respondents are asked on their preferred eating place and Part II question

number 10 of the survey. There are two existing competitors in San Carlos

City. The survey resulted into the following:

Competitor number 1(Canteen who does not offer spicy foods) ─

16%

Competitor number 2(Restaurants who does not offer spicy foods) ─

26%

SPICY MANIA (The Proposed Business) ─ 58%

SPICY MANIA 16
VIRGEN MILAGROSA UNIVERSITY FOUNDATION
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Martin P. Posadas Avenue, San Carlos City, Pangasinan, 2420 Philippines

Market Shares
1st Qtr 2nd Qtr 3rd Qtr

16%

58% 26%

SALES FORECAST

The Sales is based on the results of the survey questionnaire. It is

assumed that sales will increase 8% every year.

YEAR GROWTH RATE ANNUAL SALES MONTHLY DAILY


2021 - 6,840,192.00 570,016.00 20,582.00
2022 8% 7,387,407.36 615,617.28 22,228.56
2023 8% 7,978,399.95 664,866.66 24,006.84
2024 8% 8,616,671.94 718,056.00 25,927.39
2025 8% 9,306,005.70 775,500.48 28,001.58

MARKETING STRATEGY

Marketing Program is used to introduce new product in the market and to

know viability. Marketing Program Plan includes specific actions for each part of

the Marketing Strategy. It identifies strategies for conducting Market Research,

identifying market, reaching prospective consumers by promotion and turning

them into customers of the products or services the business provides by right

pricing strategy. It consists the following: Product, Price, Placement, Promotion,

and People.

A. Product Strategy

SPICY MANIA 17
VIRGEN MILAGROSA UNIVERSITY FOUNDATION
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Martin P. Posadas Avenue, San Carlos City, Pangasinan, 2420 Philippines

Product is what you sell and offer to the market to satisfy their

wants and needs. The management will assure that the customers will be

satisfied with the products that the proposed business will provide.

B. Pricing Strategy

Pricing is considered to be the most critical factor which most

affects the marketability of products and services offered. The price is one

of the first things that a consumer notices about a product and is one of

the deciding factors when it comes to their decision to buy it or not.

Pricing a product involves numerous things to be taken into

consideration such as: cost, customers, position in the market,

competitors and profit. The proponents used Cost plus strategy in

setting the price of the products. The formula used is:

Purchase Cost + Operating Cost + Mark-up = Selling Cost

C. Place

The right choice of location provides the proposed business an easy

access to the target customers. The proponents look for a space for rent

inside the town center, because it is accessible.

D. Promotion

One way of introducing the business to the market is through

promotions. The business use promotions to provide information to the

potential customers and to increase brand awareness. More people tend to

learn about the business if they frequently see or hear about them. In order

to reach the potential customers, the proponents come-up with their

marketing strategies which are: Social Media Promotion, Posters, Flyers, Gift

Certificates.

D.1 SOCIAL MEDIA PROMOTION

SPICY MANIA 18
VIRGEN MILAGROSA UNIVERSITY FOUNDATION
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Martin P. Posadas Avenue, San Carlos City, Pangasinan, 2420 Philippines

People are now living in the modern world where surfing to the

internet is one of the easiest ways to have quick access. The proponents will

be using Social media marketing like Facebook, Twitter, and Instagram to

reach wider range of possible customer.  It will also provide good

communication relationship in ways that, owner will be giving information and

customers will be giving comments and suggestions for product improvement

and other concerns.

D.2 POSTERS

The poster should be designed Poster will be placed outside the

store.  Food design and Menu design makes the business stand out and are

more visually interesting. Three posters will be produced.

The computation would be:

Number of pieces x Unit Price x Number of times per month

4 x 250 x 1 = ₱ 1,000.00

D.3 FLYERS

SPICY MANIA 19
VIRGEN MILAGROSA UNIVERSITY FOUNDATION
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Martin P. Posadas Avenue, San Carlos City, Pangasinan, 2420 Philippines

A flyer is a form of paper advertisement intended for wide

distribution handed out to individuals for possible buyers. The restaurant

will produce 100 flyers per day and will be distributed twice a week or

eight (8) times a month. Flyers will be given in the first two (2) months of

the business until it gets loyal customers.

The computation would be:

Number of pieces x Unit Price x Number of times per month

100 x 10 x 8 = ₱ 1,000.00

D.4 GIFT CERTIFICATE

The restaurant will distribute gift certificates worth seventy five pesos

(₱75.00) on the first day of business operation. The recipients of these

certificates will be the first 50 customers of the restaurant.

E. People

It is important to find the right people to serve your customer,

because the management believes that a happy customer is a satisfied

customer. The more satisfied they are, the more they patronize the

business. Employees must be treated as Asset, not an expense.

Qualifications and job description will be discussed in the next chapter:

Management and Organization Study.

SPICY MANIA 20
VIRGEN MILAGROSA UNIVERSITY FOUNDATION
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Martin P. Posadas Avenue, San Carlos City, Pangasinan, 2420 Philippines

DEMAND SUPPLY ANALYSIS

A. Demand

In every business, it is essential to know the demand of the products in

order to answer the customer needs and wants. Knowing the demand will

help the proponents to determine the product trends, and how the product.

Analyzing the demand thoroughly gives the projection of total number of

quantity of each product that the business is to produce daily, weekly,

monthly and annually.

Question: If there will be a new restaurant in San Carlos City, Pangasinan

offering Spicy dishes, would you patronize it?

No. of respondents Percentage (%)

YES 356 89.45%


NO 42 10.55%
TOTAL 398 100.00%

Total Demand
400

350

300

250
RESPONDENTS

200

150

100

50

0
Yes No

SPICY MANIA 21
VIRGEN MILAGROSA UNIVERSITY FOUNDATION
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Martin P. Posadas Avenue, San Carlos City, Pangasinan, 2420 Philippines

A.1 PROJECTED TOTAL DEMAND

The proponents used the percentage of market acceptability from the

data gathered which is 89%. The daily market acceptability is obtained by

multiplying the market of acceptability by the percentage of respondents

who choose to eat daily outside (based on survey). It is then multiplied by

market share to get percentage of demand. The growth rate is set as 8%

per year.

Market Preferred Market Market Percentage


Year Acceptabilit Place to
Acceptability Share
y eat of Demand
(Daily) (Dail)y (%)

2021 89.45% 44.97% 40.23% 58% 23.33%


2022 89.45% 44.97% 40.23% 58% 23.33%
2023 89.45% 44.97% 40.23% 58% 23.33%
2024 89.45% 44.97% 40.23% 58% 23.33%
2025 89.45% 44.97% 40.23% 58% 23.33%

B. SUPPLY

The Raw Materials needed for making the products is always available in

the market. However, the spices used may not be available all the time.

The Supply for raw materials will depend on the demand. Schedule on

purchasing of raw materials will be 10% higher from the demand. With

this strategy, there will be no unmet demand.

SWOT ANALYSIS

STRENGTH

 The first restaurant in San Carlos City, Pangasinan to offer spicy foods

with different level of spiciness.

 The location of the business is accessible enough to meet our target

market.

SPICY MANIA 22
VIRGEN MILAGROSA UNIVERSITY FOUNDATION
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Martin P. Posadas Avenue, San Carlos City, Pangasinan, 2420 Philippines

 The business will easily catch the interest of the customers who are fond

of eating spicy foods.

 The restaurant provides variety of food choices.

WEAKNESS

 Food products are perishable

OPPORTUNITIES

 The business may attract more customers who want to try spicy foods.

 Spicy Mania is open for possible expansion in Dagupan City, Pangasinan.

 Spicy eaters may patronize the proposed business to non spicy eaters to

try the products.

THREATS

 Possible entry of new competitors.

 Rental payment increase

 Ingredients are prone to price fluctuations.

 Well-known restaurant within the vicinity will be the great competitors of

the business.

SWOT ANALYSIS

External Factors Weight Rating Weightened


Average

SPICY MANIA 23
VIRGEN MILAGROSA UNIVERSITY FOUNDATION
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Martin P. Posadas Avenue, San Carlos City, Pangasinan, 2420 Philippines

STRENGTH

1. First restaurant in San Carlos City


Pangasinan to offer spicy food with
different level of hotness.

2. The location of the business is


accessible enough to meet our target.

3. The business will easily catch the


interest of the customer who are fond of
eating spicy foods.

4. The restaurant provides variety of spicy


food.

WEAKNESSES

1.Food product are perishable.

2.Not everyone like spicy food.

TOTAL

Note: (1.) The rating values are as follows: 1 = WEAK 2 = AVERAGE 3

= STRONG

(2.) Result interpratation are as follows: 2.5 below is internally

weak and

2.5 above = internally strong.

(3.) Spicy mania has a weighted average score of () which is ().

SPICY MANIA 24
VIRGEN MILAGROSA UNIVERSITY FOUNDATION
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Martin P. Posadas Avenue, San Carlos City, Pangasinan, 2420 Philippines

OPPORTUNITIES

1.The business may attract more


customers who want to try spicy foods.
2. Spicy mania is open for possible
expansion in Dagupan city, Pangasinan.
3. Spicy eatery may patronize the proposed
business to non spicy eatery to try the product.
5. There is abig chance that many people
would patrionize the unique concept of
the restaurant.
6. High demand of spicy foods could
produce high incomes.

THREATS
1. Possible entry of new competitors.

2. Rental payment increase.

3. Ingredients are prone to price


fluctuations.
4. Well-known restaurant within the vicinity
will be the great competitors of the
business.
5. Different restaurants would try to imitate
what spicy mania offered.
TOTAL

Note: (1.) The rating values are as follows: 1 = POOR 2 = AVERAGE 3 =

SUPERIOR

(2.) Result interpratation are as follows: 2.5 below is externally

poor and

2.5 above = externally superior

(3.) Spicy mania has a weighted average score of () which

meand that the proposed business is externally () and indicates that

the business is responding in a way to existing opportunities and

threats in this industry.

SPICY MANIA 25
VIRGEN MILAGROSA UNIVERSITY FOUNDATION
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Martin P. Posadas Avenue, San Carlos City, Pangasinan, 2420 Philippines

SPICY MANIA 26

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