small business plan
Content
La Trung kien
Lu Cam Ha
Group Business Project
Project description
The”Viet’s Restaurant”- Traditional Vietnamese
Restaurant will be a moderately priced with more than 50 seats restaurant offering family style food and
service. Noodle soup, steaks BBQ (Vietnamese style), spring rolls and salads are all on the menu. We will
offer specialty selections including a lighter options and smaller portions for a children’s menu.
Vietnam culinary diversity and unique capital. In it there are some foods that are considered proprietary
Vietnam, the Viet restaurant will be place you must to visit to try out all those things.
The idea of our business is the blending of space and ancient rustic of ancient Vietnamese people,
combined with dishes and taste combinations of Vietnam and the Philippines.
Our restaurant has a combination of architecture and Vietnamese cuisine make customers feel
comfortable, enjoy the space, ancient architecture, customers will enjoy dishes imbued with Vietnamese
nature, right in the heart of Manila, Robinson Place - Ermita.
The business intend to obtain finance from internal and external equity in the amount of more than
Php2,000,000, for which the application will be for commencing work on shop renovation, kitchen
equipment purchases and other equipment , also food materials and as operating cash flow. Preliminary
capital injection has already been secured by the initial owners, La Trung Kien and Lu cam Ha, in the
amounts of Php7,500,000 on each partner. And the rest will be Long-term bank loans from BPI
Mission:
-To sell delicious and remarkable food and drinks. That the food and drink we sell meets the highest
standards of quality, freshness and seasonality and combines both modern-creative and traditional
Vietnamese styles of cooking.
- To consistently provide our customers with impeccable service by demonstrating warmth, graciousness,
efficiency, knowledge, professionalism and integrity in our work.
-To have every customer who comes through our doors leave impressed by Viet's and excited to come
back again.
-To create and maintain a restaurant that is comprehensive and exceptional in its attention to every detail
of operation. Viet's is a great place to eat, combining an intriguing atmosphere with excellent, interesting
food.
-The mission is not only to have great tasting food, but have efficient and friendly service because
customer satisfaction is paramount. We want to be the restaurant choice for all families and singles, young
and old, male or female. Employee welfare will be equally important to our success. Everyone will be
treated fairly and with the utmost respect. We want our employees to feel a part of the success of Viet's
Restaurant. Happy employees make happy guests.
Vision:
The Vision of Viet’s Restaurant is to be in the top 3 of Vietnamese restaurant in Philippines. Not about the
number of the branches, it is about being the best means providing outstanding quality, service,
cleanliness, and value, so that we make every customer in Viet's restaurant enjoying of what they pay for.
Supplier:
- Vendor: robinson including supermarkets, meat and fresh ingredients will be imported at
slaughterhouses and farms gathered in Cubao if bought in bulk and often will get discounts and
delivery ... saving costs.
Objectives
Viet's Restaurant's objectives for the first three years of operation include:
First year:
-Keeping food cost fewer than 40% revenue.
Keeping employee labor cost between 24-29% of revenue.
Stay as a small restaurant with excellent food and service.
Averaging sales between Php3,500,000-3,800,000 per year.
Second year:
Promote and expand Leave it to Robinson Ermita
Achieve 10% return on investment to investors for the first two years
Averaging sales between Php4,500,000-5,800,000 in year.
Next three years:
Averaging sales between Php5,500,000-6,800,000 in year.
Expand our marketing and advertising in metro Manila
Competitors:
The restaurant has a long reputation in the market had a volume steady clientele.
Especially the restaurant business with various Vietnamese cuisine.
-Pho Hoa:
Founded nearly three decades ago on the principles of exceptional value, quality and service, Pho Hoa
Noodle Soup operates what is today the largest Vietnamese fast-casual dining chain in the world.
Grown into an internationally recognized brand with over 70 restaurants operating in 7 different countries
(more than 30 branches in Philippine). Pho Hoa Noodle Soup continues to differentiate their brand with
innovative products and a health conscious menu.
Pho Hoa targeting to the middle to high-income customer, with the average price for each item in the
main menu from Php 250 - 400. Although the price is high but also go with pretty good quality copper, as
service, food quality and location make quite satisfied customers. Under evaluation, raw material prices
have accounted for 35-45% of the price of dish
-Pho Bac: Following not far behind in terms of popularity is Pho Bac. Pho Bac has often been compared
with Pho Hoa. Even if a lot of customers still prefer Pho Hoa, Pho Bac has its own unique offers.
Noticeably, the Pho Bac restaurant interior feels a little homier than most Pho Hoa branches. Pho Hoa has
a casual air, while Pho Bac feels cozier. A lot of pho lovers seem to prefer the casual atmosphere for
eating pho because it livens up the experience, but the Pho Bac locations have their own appeal.
With 27 branches and still growing up, they have a stable customer base, pho bac is one opponent rather
heavyweight.
The other competitors also include others local restaurants around the place. Including the Filipino
traditional-style restaurant and restaurants from others country like Korea, Japan , China, etc.
Target Customers:
- In kind of selling food service we’re welcome to all diners who want to have nice and quality meal , to
try out the Vietnamese food and new kind of taste and culture.
- The restaurant focuses more on young client components of the middle class students and officer,
because young people will be more interested in trying new dishes from land but other countries and new
taste
- Domestic customers and clients locally:
+ People who shopping in the Mall
+ Student and teacher come from schools around
- Vietnamese tourist and the Vietnamese around the location (small part)
The restaurant will be located at 2nd Floor Robinsons Ermita, metro Manila.
So in This location we're focusing to offices and schools surrounding, like Philippines General hospital,
UP, st Paul, PCU, PWU ...etc.
- Surrounding this Place also concentrated a large number of Vietnamese in the area as Quirino, Vito
Cruz, as well as the Embassy of Viet nam located in Vito Cruz not far from restaurant location.
Menu
main:
- Steamed sticky rice
- Rice noodle soup (Best ever!)
+ Half done beef
+ Chicken
- Chicken ,shrimp and pork BBQ Viet's style (Best ever!)
- Spring roll (Best ever!)
- Grilled fish ball
- Mixed Fried rice
- Rice gruel
+ Fish
+ Chicken
+ Eel
+ oysters
- Cooked with sauce
+ Chicken
+ Pork
Soup:
- Sweet and sour fish broth
- Sour lean pork soup
- Lean pork & mustard soup
- Beef & onion soup
- Crab soup
Salad:
- Shrimp salad
- Special Mix salad
- Chicken salad spicy
Drink:
- Juices
- Beer
- Ice tea
- Hot Green tea (Viet's style)
- Cola
- Viet's Coffee
The restaurant will be open 7 days a week with hours as follows:
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
Sunday
10:00
10:00
10:00
10:00
10:00
10:00
10:00
am – 9:00 pm
am – 9:00 pm
am – 9:00 pm
am – 9:00 pm
am – 9:00 pm
am – 9:00 pm
am– 5:00 pm
Pricing structure:
- Menu changing seasonal.
- By the time.
- According to our customers.
EXPECTED RISKS:
- The volatility of market prices affects the cost of output.
- The number of customers is not as originally envisaged.
- The risk of unintended such as fire, malfunction.
INVESTMENT PROJECTS
Number
1
Explain
Space rental (5 year contract)
Amount (Php)
2,200,000
Depreciation period (year)
5
2
Interior decoration
400,000
4
3
Buy equipment for restaurants
480,000
5
4
Business registration, employee training
120,000
2
5
Marketing
60,000
6
Total
3,260,000
The amount of this initial investment is amortized using the straight line method.
In particular, interior decoration after the depreciation period is still in use until the end of the project
cycle (5 years)
The space will be rent at Robinson Manila 2nd Floor, 132 m2 area, the average price of Php280 / m2/mo
for rent. Then the rent rates will increase 4% per year to offset inflation.
Project exploit duration: 5 years.
Corporate income tax rates: 30%
Inflation rate: 4%.
Amortization spreadsheet (in Php)
Year
Ground
Interior
Equipment
Business registration, training
Total
Liquidation value
Corporate income tax
Liquidation value (after tax)
1
440,00
100,000
96,000
100,000
816,000
2
440,00
100,000
96,000
100,000
816,000
3
440,00
100,000
96,000
0
716,000
4
440,00
100,000
96,000
0
716,000
5
440,00
0
96,000
0
616,000
360,000
108,000
252,000
The location requires some build-out and renovation totally Php 480,000 and will require approximately
30 days to complete. The Wrights will sub-contract the work themselves.
Investment loan needs (in Php):
Investment demand
1 Equity (= 30% investment demand)
2 Loans (= 70% investment demand)
So loan demand:
3,260,000
1,000,000
2,260,000
2,260,000
The Long-term loans will be lend from BPI with 9% rate annual
Table repayment debt plan
Year
Early Debt
Interest
Repayment of
1
2,260,000
-203,400
-452,000
2
1,808,000
-162,720
-452,000
3
1,356,000
-122,040
-452,000
4
904,000
-81,360
-452,000
5
452,000
-40,680
-452,000
principal
Interest and principal
payment payable
Last year outstanding
debts
-655,400
-614,720
-574,040
-533,360
-492,680
1,808,000
1,356,000
904,000
452,000
0,000
To finance the project, the company had 2,260,000 loan with an interest rate of 9%. The repayment period
of 3 years. Repayment amortization method with fixed period clause. Use the IPMT function to calculate
the interest payable and PPMT function to calculate the original debt payable in the period (in Excel).
ASSESSMENT RESULTS OF OPERATIONS (TENTATIVE):
Progress of business (Unit: person)
#
Year
1
2
3
4
5
1
Number of visits to the
restaurant in a day
Number of people come to the
restaurant in a month
Number of people come to the
restaurant in a year
Growth.
80
100
120
125
130
2400
3000
3600
3,750
3900
28,800
36,000
43,200
45,000
46,800
20%
16.7%
4%
3.8%
2
3
4
Spreadsheet operating expenses (including depreciation)
Explain (in Php)
Year
2.1 Management Fee
Wages
Bonus
Advertising, Reception
Insurances
Electricity, water,
association fee, others
2.2 Maintenance fee (2%
of total revenue)
2.3 Expenses Depreciation
2.4 The cost of tools and
supplies
2.5 Raw material
2.6 Workers,
Wages
Bonus
Insurance
Operating expenses
1
2
3
4
5
252,000
12,000
60,000
2,200
252,000
12,000
70,000
2,200
252,000
12,000
75,000
2,200
252,000
13,200
80,000
2,200
380,000
14,000
80,000
2,200
120,000
151,578
189,473
202,105
208,421
72,000
72,000
72,000
72,000
72,000
553,000
150,000
553,000
150,000
522,500
150,000
522,500
150,000
511,000
150,000
1,200,000
1,500,000
1,750,000
1,888,000
2,000,000
1,380,000
26,000
14,400
3,889,600
1,380,000
26,000
14,400
4,231,178
1,380,000
26,000
14,400
4,493,573
1,464,000
27,800
14,400
4,776,205
1,584,000
29,000
14,400
5,045,021
Yearly revenue spreadsheet:
Analyze price and cost:
160
For one set combo of Spring roll (6pcs) with Rice and drink priced of Php
Following the anticipated number of customers there will be:
Sales: 160x80 = Php 12,800/day – Php 384,000/Month - Php 4,608,000/year
Cost:
+ Rental: Php 37,000/month
+ Raw material – Pork meat, vegetables, spices, rice, vermicelli, etc.: Php
60/dish– Php 144,000/month
+ Others expenses – Gas, electricity, water, association fee, etc.: Php 22,000
+Wages: Php 139,000
-Manager: Php 25,000
- 2 Main chef: Php 18,000/each
- 2 scullion: Php 15,000/each
- 2 accountant: Php12,000/each
- 2 waiter: Php12,000/each
- 1 Delivery: Php10,000
Total: Php352,000
Gross Income: Php32,000
Taxes:Php9,600
Net income:Php22,400
Base on the anticipated number of customers (in Php)
Year
Food
Drink
Total revenues by year
Growth
1
4,032,000
576,000
4,608,000
2
5,040,000
720,000
5,760,000
20%
3
6,048,000
864,000
6,912,000
16.7%
4
6,552,000
936,000
7,488,000
7.7%
5
6,814,080
973,440
7,787,520
4%
We have an average unit price in the first 3 years will be Php160 average for orders of each customer
come, in which food is Php140 and Php20 of drinks. Then, the unit price will increase year by year until
the end of the cycle at the rate of 4% to cover inflation.
Analyzes the financial performance of investment projects (in Php)
Year
Revenue
Revenue from main activities
Revenue for secondary operations
Operating expenses
profit before tax and interest (EBIT)
Accrued Interest and Principal
Earnings before tax (EBT)
CIT
Net profit (OEAT)
1
4,608,000
4,032,000
576,000
3,889,600
718,400
-655,400
63,000
-18,900
44,100
2
5,760,000
5,040,000
720,000
4,231,178
1,528,822
-614,720
914,102
-274,230
639,872
This is an investment project to be effective.
Payback period (PP) 2.25 years or 2 years 3 months 5 days
3
6,912,000
6,048,000
864,000
4,493,573
2,418,427
-574,040
1,844,387
-553,316
1,291,071
4
7,488,000
6,552,000
936,000
4,776,205
2,711,795
-533,360
2,178,435
-653,530
1,524,905
5
7,787,520
6,814,080
973,440
-5,045,021
2,742,499
-492,680
2,249,819
-674,945
1,574,873
Lu Cam Ha
Group Business Project
Project description
The”Viet’s Restaurant”- Traditional Vietnamese
Restaurant will be a moderately priced with more than 50 seats restaurant offering family style food and
service. Noodle soup, steaks BBQ (Vietnamese style), spring rolls and salads are all on the menu. We will
offer specialty selections including a lighter options and smaller portions for a children’s menu.
Vietnam culinary diversity and unique capital. In it there are some foods that are considered proprietary
Vietnam, the Viet restaurant will be place you must to visit to try out all those things.
The idea of our business is the blending of space and ancient rustic of ancient Vietnamese people,
combined with dishes and taste combinations of Vietnam and the Philippines.
Our restaurant has a combination of architecture and Vietnamese cuisine make customers feel
comfortable, enjoy the space, ancient architecture, customers will enjoy dishes imbued with Vietnamese
nature, right in the heart of Manila, Robinson Place - Ermita.
The business intend to obtain finance from internal and external equity in the amount of more than
Php2,000,000, for which the application will be for commencing work on shop renovation, kitchen
equipment purchases and other equipment , also food materials and as operating cash flow. Preliminary
capital injection has already been secured by the initial owners, La Trung Kien and Lu cam Ha, in the
amounts of Php7,500,000 on each partner. And the rest will be Long-term bank loans from BPI
Mission:
-To sell delicious and remarkable food and drinks. That the food and drink we sell meets the highest
standards of quality, freshness and seasonality and combines both modern-creative and traditional
Vietnamese styles of cooking.
- To consistently provide our customers with impeccable service by demonstrating warmth, graciousness,
efficiency, knowledge, professionalism and integrity in our work.
-To have every customer who comes through our doors leave impressed by Viet's and excited to come
back again.
-To create and maintain a restaurant that is comprehensive and exceptional in its attention to every detail
of operation. Viet's is a great place to eat, combining an intriguing atmosphere with excellent, interesting
food.
-The mission is not only to have great tasting food, but have efficient and friendly service because
customer satisfaction is paramount. We want to be the restaurant choice for all families and singles, young
and old, male or female. Employee welfare will be equally important to our success. Everyone will be
treated fairly and with the utmost respect. We want our employees to feel a part of the success of Viet's
Restaurant. Happy employees make happy guests.
Vision:
The Vision of Viet’s Restaurant is to be in the top 3 of Vietnamese restaurant in Philippines. Not about the
number of the branches, it is about being the best means providing outstanding quality, service,
cleanliness, and value, so that we make every customer in Viet's restaurant enjoying of what they pay for.
Supplier:
- Vendor: robinson including supermarkets, meat and fresh ingredients will be imported at
slaughterhouses and farms gathered in Cubao if bought in bulk and often will get discounts and
delivery ... saving costs.
Objectives
Viet's Restaurant's objectives for the first three years of operation include:
First year:
-Keeping food cost fewer than 40% revenue.
Keeping employee labor cost between 24-29% of revenue.
Stay as a small restaurant with excellent food and service.
Averaging sales between Php3,500,000-3,800,000 per year.
Second year:
Promote and expand Leave it to Robinson Ermita
Achieve 10% return on investment to investors for the first two years
Averaging sales between Php4,500,000-5,800,000 in year.
Next three years:
Averaging sales between Php5,500,000-6,800,000 in year.
Expand our marketing and advertising in metro Manila
Competitors:
The restaurant has a long reputation in the market had a volume steady clientele.
Especially the restaurant business with various Vietnamese cuisine.
-Pho Hoa:
Founded nearly three decades ago on the principles of exceptional value, quality and service, Pho Hoa
Noodle Soup operates what is today the largest Vietnamese fast-casual dining chain in the world.
Grown into an internationally recognized brand with over 70 restaurants operating in 7 different countries
(more than 30 branches in Philippine). Pho Hoa Noodle Soup continues to differentiate their brand with
innovative products and a health conscious menu.
Pho Hoa targeting to the middle to high-income customer, with the average price for each item in the
main menu from Php 250 - 400. Although the price is high but also go with pretty good quality copper, as
service, food quality and location make quite satisfied customers. Under evaluation, raw material prices
have accounted for 35-45% of the price of dish
-Pho Bac: Following not far behind in terms of popularity is Pho Bac. Pho Bac has often been compared
with Pho Hoa. Even if a lot of customers still prefer Pho Hoa, Pho Bac has its own unique offers.
Noticeably, the Pho Bac restaurant interior feels a little homier than most Pho Hoa branches. Pho Hoa has
a casual air, while Pho Bac feels cozier. A lot of pho lovers seem to prefer the casual atmosphere for
eating pho because it livens up the experience, but the Pho Bac locations have their own appeal.
With 27 branches and still growing up, they have a stable customer base, pho bac is one opponent rather
heavyweight.
The other competitors also include others local restaurants around the place. Including the Filipino
traditional-style restaurant and restaurants from others country like Korea, Japan , China, etc.
Target Customers:
- In kind of selling food service we’re welcome to all diners who want to have nice and quality meal , to
try out the Vietnamese food and new kind of taste and culture.
- The restaurant focuses more on young client components of the middle class students and officer,
because young people will be more interested in trying new dishes from land but other countries and new
taste
- Domestic customers and clients locally:
+ People who shopping in the Mall
+ Student and teacher come from schools around
- Vietnamese tourist and the Vietnamese around the location (small part)
The restaurant will be located at 2nd Floor Robinsons Ermita, metro Manila.
So in This location we're focusing to offices and schools surrounding, like Philippines General hospital,
UP, st Paul, PCU, PWU ...etc.
- Surrounding this Place also concentrated a large number of Vietnamese in the area as Quirino, Vito
Cruz, as well as the Embassy of Viet nam located in Vito Cruz not far from restaurant location.
Menu
main:
- Steamed sticky rice
- Rice noodle soup (Best ever!)
+ Half done beef
+ Chicken
- Chicken ,shrimp and pork BBQ Viet's style (Best ever!)
- Spring roll (Best ever!)
- Grilled fish ball
- Mixed Fried rice
- Rice gruel
+ Fish
+ Chicken
+ Eel
+ oysters
- Cooked with sauce
+ Chicken
+ Pork
Soup:
- Sweet and sour fish broth
- Sour lean pork soup
- Lean pork & mustard soup
- Beef & onion soup
- Crab soup
Salad:
- Shrimp salad
- Special Mix salad
- Chicken salad spicy
Drink:
- Juices
- Beer
- Ice tea
- Hot Green tea (Viet's style)
- Cola
- Viet's Coffee
The restaurant will be open 7 days a week with hours as follows:
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
Sunday
10:00
10:00
10:00
10:00
10:00
10:00
10:00
am – 9:00 pm
am – 9:00 pm
am – 9:00 pm
am – 9:00 pm
am – 9:00 pm
am – 9:00 pm
am– 5:00 pm
Pricing structure:
- Menu changing seasonal.
- By the time.
- According to our customers.
EXPECTED RISKS:
- The volatility of market prices affects the cost of output.
- The number of customers is not as originally envisaged.
- The risk of unintended such as fire, malfunction.
INVESTMENT PROJECTS
Number
1
Explain
Space rental (5 year contract)
Amount (Php)
2,200,000
Depreciation period (year)
5
2
Interior decoration
400,000
4
3
Buy equipment for restaurants
480,000
5
4
Business registration, employee training
120,000
2
5
Marketing
60,000
6
Total
3,260,000
The amount of this initial investment is amortized using the straight line method.
In particular, interior decoration after the depreciation period is still in use until the end of the project
cycle (5 years)
The space will be rent at Robinson Manila 2nd Floor, 132 m2 area, the average price of Php280 / m2/mo
for rent. Then the rent rates will increase 4% per year to offset inflation.
Project exploit duration: 5 years.
Corporate income tax rates: 30%
Inflation rate: 4%.
Amortization spreadsheet (in Php)
Year
Ground
Interior
Equipment
Business registration, training
Total
Liquidation value
Corporate income tax
Liquidation value (after tax)
1
440,00
100,000
96,000
100,000
816,000
2
440,00
100,000
96,000
100,000
816,000
3
440,00
100,000
96,000
0
716,000
4
440,00
100,000
96,000
0
716,000
5
440,00
0
96,000
0
616,000
360,000
108,000
252,000
The location requires some build-out and renovation totally Php 480,000 and will require approximately
30 days to complete. The Wrights will sub-contract the work themselves.
Investment loan needs (in Php):
Investment demand
1 Equity (= 30% investment demand)
2 Loans (= 70% investment demand)
So loan demand:
3,260,000
1,000,000
2,260,000
2,260,000
The Long-term loans will be lend from BPI with 9% rate annual
Table repayment debt plan
Year
Early Debt
Interest
Repayment of
1
2,260,000
-203,400
-452,000
2
1,808,000
-162,720
-452,000
3
1,356,000
-122,040
-452,000
4
904,000
-81,360
-452,000
5
452,000
-40,680
-452,000
principal
Interest and principal
payment payable
Last year outstanding
debts
-655,400
-614,720
-574,040
-533,360
-492,680
1,808,000
1,356,000
904,000
452,000
0,000
To finance the project, the company had 2,260,000 loan with an interest rate of 9%. The repayment period
of 3 years. Repayment amortization method with fixed period clause. Use the IPMT function to calculate
the interest payable and PPMT function to calculate the original debt payable in the period (in Excel).
ASSESSMENT RESULTS OF OPERATIONS (TENTATIVE):
Progress of business (Unit: person)
#
Year
1
2
3
4
5
1
Number of visits to the
restaurant in a day
Number of people come to the
restaurant in a month
Number of people come to the
restaurant in a year
Growth.
80
100
120
125
130
2400
3000
3600
3,750
3900
28,800
36,000
43,200
45,000
46,800
20%
16.7%
4%
3.8%
2
3
4
Spreadsheet operating expenses (including depreciation)
Explain (in Php)
Year
2.1 Management Fee
Wages
Bonus
Advertising, Reception
Insurances
Electricity, water,
association fee, others
2.2 Maintenance fee (2%
of total revenue)
2.3 Expenses Depreciation
2.4 The cost of tools and
supplies
2.5 Raw material
2.6 Workers,
Wages
Bonus
Insurance
Operating expenses
1
2
3
4
5
252,000
12,000
60,000
2,200
252,000
12,000
70,000
2,200
252,000
12,000
75,000
2,200
252,000
13,200
80,000
2,200
380,000
14,000
80,000
2,200
120,000
151,578
189,473
202,105
208,421
72,000
72,000
72,000
72,000
72,000
553,000
150,000
553,000
150,000
522,500
150,000
522,500
150,000
511,000
150,000
1,200,000
1,500,000
1,750,000
1,888,000
2,000,000
1,380,000
26,000
14,400
3,889,600
1,380,000
26,000
14,400
4,231,178
1,380,000
26,000
14,400
4,493,573
1,464,000
27,800
14,400
4,776,205
1,584,000
29,000
14,400
5,045,021
Yearly revenue spreadsheet:
Analyze price and cost:
160
For one set combo of Spring roll (6pcs) with Rice and drink priced of Php
Following the anticipated number of customers there will be:
Sales: 160x80 = Php 12,800/day – Php 384,000/Month - Php 4,608,000/year
Cost:
+ Rental: Php 37,000/month
+ Raw material – Pork meat, vegetables, spices, rice, vermicelli, etc.: Php
60/dish– Php 144,000/month
+ Others expenses – Gas, electricity, water, association fee, etc.: Php 22,000
+Wages: Php 139,000
-Manager: Php 25,000
- 2 Main chef: Php 18,000/each
- 2 scullion: Php 15,000/each
- 2 accountant: Php12,000/each
- 2 waiter: Php12,000/each
- 1 Delivery: Php10,000
Total: Php352,000
Gross Income: Php32,000
Taxes:Php9,600
Net income:Php22,400
Base on the anticipated number of customers (in Php)
Year
Food
Drink
Total revenues by year
Growth
1
4,032,000
576,000
4,608,000
2
5,040,000
720,000
5,760,000
20%
3
6,048,000
864,000
6,912,000
16.7%
4
6,552,000
936,000
7,488,000
7.7%
5
6,814,080
973,440
7,787,520
4%
We have an average unit price in the first 3 years will be Php160 average for orders of each customer
come, in which food is Php140 and Php20 of drinks. Then, the unit price will increase year by year until
the end of the cycle at the rate of 4% to cover inflation.
Analyzes the financial performance of investment projects (in Php)
Year
Revenue
Revenue from main activities
Revenue for secondary operations
Operating expenses
profit before tax and interest (EBIT)
Accrued Interest and Principal
Earnings before tax (EBT)
CIT
Net profit (OEAT)
1
4,608,000
4,032,000
576,000
3,889,600
718,400
-655,400
63,000
-18,900
44,100
2
5,760,000
5,040,000
720,000
4,231,178
1,528,822
-614,720
914,102
-274,230
639,872
This is an investment project to be effective.
Payback period (PP) 2.25 years or 2 years 3 months 5 days
3
6,912,000
6,048,000
864,000
4,493,573
2,418,427
-574,040
1,844,387
-553,316
1,291,071
4
7,488,000
6,552,000
936,000
4,776,205
2,711,795
-533,360
2,178,435
-653,530
1,524,905
5
7,787,520
6,814,080
973,440
-5,045,021
2,742,499
-492,680
2,249,819
-674,945
1,574,873
