Philippine E-Journals

Establishment of an Asian Street Food Restaurant in Nuvali Sta. Rosa, Laguna

Marvin Pajutan | Harlene Ambe | Patricia Anne Marie Rallang

 

Abstract:

This study determined the feasibility of the establishment of an Asian Street Food Restaurant in Nuvali Sta. Rosa Laguna. The project's long-range objective is to promote Philippine's street food and provide it to those in other Asian countries. Marketing Aspect. The target market of this study were the workers and employees around Nuvali. The researchers conducted a survey with 395 respondents computed using the Slovin's formula based on the foot traffic at Ayala Malls with 45,000 population. Results established an 84.01% willingness of the respondents to visit the place with the frequency of 38.73% to go occasionally. The study also showed that the projected demand for the first year was 1,199,158 while the projected supply was 796,685, resulting in an unsatisfied demand of 402,473 and 3.32% of market share. Technical Aspect. The proposed business is a buffet style restaurant that will offer a variety of street food in Asia in the categories of buns, snacks, rice meals, pork, beef, and desserts. It will operate for eight hours on weekdays and nine hours on weekends. The prices of the needed machines and equipment as well as the service process were identified and the prices of the products were determined using cost-plus pricing. Organization and Management Aspect. The proposed business is a partnership named Asian Streets. It will have two department officers under a general manager, a kitchen/dining head and a finance officer. A total of 15 employees will support the daily operation of the business; their duties, responsibilities and qualifications were identified. Its normal operation begins four months after the project feasibility study. Financial Aspect. The project cost needed, including a contingency of 10%, was 2,909,584 and will be funded equally by the three partners. The projected financial statements were prepared with the income statement showing a net income of P413,513, with an average increase of 65% per annum. The financial position with a balance of 3,205,672 will yield an average increase of 22% per annum while the statement of cash flow with a cash ending of 2,320,370 will have an expected increase of 30% per annum. The financial analysis provided a payback period of 2.48 years, net present value of 2807,789, profitability index of 1.97, internal rate of return of 36.97%, and return on investment of 13% on the first year. Socio-Economic Aspect. The proposed business will increase the employment rate in Sta. Rosa and in nearby cities like Calamba and Cabuyao; promote Filipino street food; increase the source of funds for the projects of the local government through the taxes and other fees to be paid by the business. Environmental aspect. The proposed business is environmentally-friendly. It will provide its customers with safe and fresh food and drinks and ensure that proper waste management is regularly observed. Conclusions and Recommendations. The establishment of an Asian Street Food Restaurant in Nuvali Sta. Rosa, Laguna is feasible. However, it was recommended that this study be further improved so that it can be used more effectively and efficiently, to increase the number of customers and implement different strategies for the business to last longer and be attractive to investors.