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I. INTRODUCTION

Breakfast is the most important meal of the day, according to doctors

and nutritionists. It is also the meal that many families neglect due to lack of

time, lack of cooking creativity or interest. Starting the day with breakfast

can enhance a person to work more effectively.

One of the most popular businesses that can offer breakfast for target

customers is a Pancake House. A pancake house is a restaurant that

specializes in breakfast items such as pancakes, waffles and omelettes.

Pancakes serve a similar function to waffles.

In the Philippines, a pancake or hotcake is a flat cake, often thin and

round, prepared from a starch-based batter that may contain eggs, milk

and butter and cooked on a hot surface such as a griddle or frying pan,

often frying with oil or butter. It may be served at any time of the day with a

variety of toppings or fillings including jam, syrup or chocolate chips.

In recent years, a major food consumption trend is that more people

particularly students are eating more meals like breakfast and snacks

outside their homes. This was based on the surveys conducted by some

food establishments and was verified lately by customers themselves on

the interviews conducted to them by some researchers. It is predicted that

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this trend will accelerate in the future. As a result fast food markets will offer

greater growth opportunities for marketers. A growing number of fast food

franchisers are expanding operations to different markets. This trend only

shows the increase need of many people for this kind of business.

The province of Cavite tends to become a highly industrialized and

modernized province. Many establishments have been built in order to

sustain the needs of increasing population. One of the establishments that

have been brought up in Cavite is the Fast Food Chain, wherein they serve

some alternative foods like pancakes. The need for this type of industry will

tend to increase for as long as there are people who really love to eat.

At present pancakes in Fast Food Chains are offered only during

breakfast. This situation has given the researcher an idea and interest in

engaging on a pancake and waffle business that will serve the target

customers not only during breakfast but for the whole day. Pancakes

and waffles are basically within the heart of Cavitenos. Indeed, the demand

for pancakes and waffles like burgers will always be there.

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II. COMPANY SUMMARY

The proposed project will be a pancake and waffle business. It

will operate under the name BREAKY-BREKKY PanCake and

Waffle House (See Exhibit I-Business Logo). The business name

came from “brekky”, a word for breakfast which has been used in

American slang. According to Urban dictionary, it is synonymous to

late night breakfast meal which is not only limited to a morning meal.

It will have a capital requirement of Php 500,000.00 which is just

enough for the acquisition of the needed machines, cooking

equipment and raw materials.

The entrepreneur/owner will rent a space area of 80 square meters,

just enough to occupy the production area, a dining area, a small office

and the dispatch area (See Exhibit II-Floor Plan). It will be located at P.

Burgos Avenue, San Roque, Cavite City, just beside the former Mini Stop

(See Exhibit III-Vicinity Map). The chosen site is located near the schools,

like St. Joseph College and Manuel Roxas Elementary School and just in-

front of San Roque Parish Church.

Breaky-Brekky will be both a dine-in and take-out pancake and waffle

house. Business operations will be from 7:00 am to 7:00 pm, Monday to

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Saturday. Sunday will be considered day-off for all workers and this will be

considered the day for the owner/entrepreneur to purchase the weekly

needed materials and supplies.

III. TYPE OF BUSINESS ORGANIZATION

This pancake and waffle house is to be managed by a single

proprietor. Being an entrepreneur, the business owner takes care of

the most pivotal areas in the company which include sales,

management, and finance. The owner shall also employ personalized

attention and will be hands-on in the creation of pancakes and

waffles.

To ensure the efficient start-up of the business, the entrepreneur shall

be responsible for the following initial preparations:

 Secure start-up capital

 Register company name

 Secure all necessary licenses and business permits

 Hire the best employees for the job

 Acquire the best available suppliers of raw materials, equipment and

utensils
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In the short-run perspective, preferably within three years of

operation, the business will focus on potential customers in Cavite

City. On the succeeding years, the entrepreneur will enlarge the

business reach by targeting the neighboring towns like Noveleta and

Kawit.

IV. PERSONNEL ASPECT

In any type of business organization, it is said that the people are one

of the company’s greatest assets. How they act in their job, what they say

and do, their habits and work ethics, passion and dedication all impact on

the company’s image, level of service and customer satisfaction. It is

therefore imperative for the management to select people who are fit for the

job, teach them well, provide them with a healthy, competitive environment

and most importantly, hone their skills to be able to serve the company well

in achieving its goals and objectives. For a sole proprietor, this is not an

easy task. However, with persistence and determination, the entrepreneur

can make it work.

To serve as key personnel will be the following:

 Manager
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 Service Crews (3)

 Cashier/Secretary

A part-time accountant will also be hired on a retainer’s basis.

A. QUALIFICATIONS OF KEY PERSONNEL

Manager

 A graduate of a four-year course in Business Administration

 Honest, hardworking and self-motivated

 Has the interest and knowledge about a pancake and waffle business

 With good oral and written communication skills

 Able to work under pressure

 Able to deal with all types of people

Service Crew (3)

 At least high school graduates

 In good physical condition

 With at least one (1) year work experience

 Able to handle multiple orders

 Male or female
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Cashier/Secretary

 At least a college level

 Honest and trustworthy

 Preferably female

 At least 20 to 30 years old

 With at least one (1) year work experience

 Computer literate

B. JOB DESCRIPTION

Manager

 Supervises the daily operations of the business

 Serves as the purchaser of materials for the pancake and waffle

house

 Sets revenue expectations and map out plans for reaching them

 Ensures customer satisfaction in relation to the quality of pancakes

and waffles

 Plans, organizes, directs and controls all the activities of the business

 Accepts suggestions and feedbacks from customers

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 Develops strategies for the continuous development of the business

Service Crews (3)

 In-charge of the actual preparation and cooking of pancakes and

waffles

 Ensures the proper usage of materials, equipment and utensils

 Performs inventory of raw materials

 Ensures that the target volume of sales will be achieved

 In-charge of cleaning the surroundings after store hours

Cashier/Secretary

 Performs both the cashiering and secretarial functions

 Receives comments and suggestions from customers

 Performs other duties as may be required by the manager

COMPENSATION PLAN

The following will be the compensation package that will provided by

BREAKY-BREKKY to its workers:

1. Monthly Salaries
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Manager – Php 12,000

Service Crews (3) – Php 8,000 each

Secretary/Cashier – Php 9,000

2. An annual increase of 10% in the monthly salary will also be given

3. Free lunch to workers will also be provided

4. A 13th month pay will also be given

V. MARKET ANALYSIS

Before starting a business, the first necessary step is to study the

attractiveness and dynamics of a special market within the target territory.

This is usually done by seeking the general opinion of potential customers,

analyze the climate of demand versus supply and determine the possible

challenges that may affect business operations.

The information derived from this endeavor is used by a company to

decide whether to push through with the project or not. It specifies if the

opportunity and timing is right. Indeed, timing is everything especially now

in a market that continuous to shift from one trend to another. Business

owners should also be marketers, cautious of these changes because that

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is the only way they can analyze, plan and implement programs destined to

put the company in the summit of success.

To reiterate, during the first three years of operation, the business will

focus on potential customers in Cavite City. On the succeeding years, the

entrepreneur will enlarge its business reach by targeting the neighboring

towns of Noveleta and Kawit.

DEMAND ANALYSIS

By definition, demand is an economic principle that describes a

consumer’s desire and willingness to pay a price for a specific good or

service.

Pancakes and waffles have now become a food demand for students

and kids and it will continue to increase as the number of potential

customers increase.

To compute for the demand of consumers for pancakes and waffles,

the researcher was able to get the existing population of Cavite City.

TABLE 1
Projected Population
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(Cavite City w/ 1.51% Growth Rate)

YEAR PROJECTED POPULATION
2018 118,640
2019 120,431
2020 122,250

Table 1 shows the projected population of Cavite City from 2018 to 2020.

The basis of the projection is the 2017 population coming from the NSO

which is 116,875 multiplied by the growth of 1.51%. This will determine if

there will be a market for the product in the area.

TABLE 2
Projected Demand
(No. of Potential Customers)
YEAR Projected % of Potential Projected
Population Customers Demand
2018 118,640 25% 29,660
2019 120,431 27% 32,516
2020 122,250 29% 35,453

From the interviews conducted to existing customers of the two known fast

food chains in Cavite City, it was found out that there will be a 25%

potential customers who would want to consume pancakes and waffles. A

projection was made that there will be a 2% increase on the succeeding

years.
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TABLE 2.1
Projected Demand
(For Pancakes)
YEAR Projected % of Demand Demand for
Demand Pancakes
2018 29,660 60% 17,796
2019 32,516 60% 19,510
2020 35,453 60% 21,272

TABLE 2.2
Projected Demand
(For Waffles)
YEAR Projected % of Demand Demand for
Demand Waffles
2018 29,660 40% 11,864
2019 32,516 40% 13,006
2020 35,453 40% 14,181

TABLE 2.3
Summary of Projected Demand
YEAR Demand for Demand for Projected
Pancakes Waffles Demand
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2018 17,796 11,864 29,660

2019 19,510 13,006 32,516
2020 21,272 14,181 35,453

The breakdown of the projected demand for pancakes and waffles was

presented in Tables 2.1 and 2.2. The demand for pancakes is 60% and

40% for waffles. The summary of projected demand was shown in Table

2.3.

Table 3
Annual Demand
(in pcs. of pancakes)
YEAR Demand for In pieces Annual
Pancakes(Population) Demand
2018 17,796 48 854,208
2019 19,510 48 936,480
2020 21,272 48 1,021,056

Table 3 presents the annual demand for pancakes of the projected

population in Cavite City. From this population, an interview was conducted

and the findings show that each individual is consuming an average of 4

pieces of pancakes per month (4 x 12 = 48 pcs.)

TABLE 4
Annual Demand
(in pcs. of waffles)
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YEAR Demand for In pieces Annual Demand

Waffles
(Population)
2018 11,864 24 284,736
2019 13,006 24 312,144
2020 14,181 24 340,344
An average of 2 pieces of waffles per month is consumed by each target

individual in Cavite City and multiplied it with the projected population in

order to come up with the annual demand.

SUPPLY ANALYSIS

In order to compute for the supply of pancakes and waffles, the

proponent used the survey and interview methods on the present

competitors of pancakes and waffles in Cavite City.

TABLE 5
Present Competitors in Cavite City
(As of 2017)
Name of Location Products Sold Prices
Competitors
Jollibee San Roque Pancakes Php 50 to Php 90
McDonald’s Caridad Pancakes Php 50 to Php 90
Rolling Store San Roque Waffles Php 12 to Php 20

There are three existing competitors in Cavite City who are selling

pancakes; McDonald’s and Jollibee. For waffles, there is only one which is

located in-front of a grocery store in P. Burgos Avenue.

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TABLE 6
Projected Supply of Competitors for Pancakes
YEAR Jollibee McDonald’s Projected
Supply
20% of 854,208 = 170,842 25% of 854,208 = 213,552
2018 384,394
22% of 936,480 = 206,026 27% of 936,480 = 252,850
2019 458,876
24% of 1,021,056 = 29% of 1,021,056 =
2020 245,053 296,106
541,159

The percentage of supply for the existing competitors for pancakes was

presented in Table 6. In Year 1, 20% goes to Jollibee and 25% for

McDonald’s which were based on the existing sales of the 2 establishments

for pancakes. A 2% increase on the projected supply was made for each

establishment.

TABLE 7
Projected Supply of a Competitor for Waffles
YEAR Waffle Rolling Store Projected Supply
2018 15% of 284,736 42,710
2019 17% of 312,144 53,064
2020 19% of 340,344 64,665

As of 2017, there is only one competitor in Cavite City who is selling waffles

(a rolling store located in-front of a grocery store in P. Burgos Ave.). The

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percentage of supply was the actual sales or the capacity that it can

provide to customers.

DEMAND AND SUPPLY ANALYSIS

The unfilled demand for pancakes and waffles can really affect the

operation of the business. Jollibee and McDonald’s are only offering

pancakes from 6:30 am to 10:00 am while the rolling store has a limited

number of waffles that it can offer to customers. These unfilled demand

should be given an immediate remedy by a future entrepreneur who can

really supply the needs and wants of the target customers in Cavite City.

TABLE 8
Projected Unfilled Demand
(in pcs. of pancakes)
YEAR Projected Projected Projected
Demand Supply Unfilled
Demand
2018 854,208 384,394 469,814
2019 936,480 458,876 477,604
2020 1,021,056 541,159 479,897

TABLE 9
Projected Unfilled Demand
(in pcs. of waffles)
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YEAR Projected Projected Projected

Demand Supply Unfilled
Demand
2018 284,736 42,710 242,026
2019 312,144 53,064 259,080
2020 340,344 64,665 275,679

Tables 8 and 9 present a wide gap between the projected demand and

projected supply for pancakes and waffles. With this unfilled demand, the

proposal of putting up a pancake and waffle business in Cavite City is really

viable and feasible.

TABLE 10
Summary of Projected Unfilled Demand
(in pieces)
YEAR Pancakes Waffles Summary of
Projected
Unfilled
Demand
2018 469,814 242,026 711,840
2019 477,604 259,080 736,684
2020 479,897 275,679 755,576

Table 10 is the summary of projected unfilled demand for the 2 products.

This unfilled demand is very important especially for a future investor.

Since BREAKY-BREKKY is a food business, its capacity to provide

delicious and affordable pancakes and waffles must be provided to future

customers in Cavite City.

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TABLE 11
Projected Market Share
YEAR Projected % of Market Projected
Unfilled Share Market Share
Demand
2018 711,840 50% 355,920
2019 736,684 55% 405,176
2020 755,576 60% 453,346

Based on the demand gap between the projected demand and the

projected supply, the entrepreneur/owner forecasted to have a 50% of the

market share on its first year of operation and it will increase by 5%

annually.

TABLE 11.1
Projected Market Share
(For Pancakes)
YEAR Projected % of Market Market Share
Market Share Share for Pancakes
2018 355,920 60% 213,552
2019 405,176 60% 243,106
2020 453,346 60% 272,008
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TABLE 11.2
Projected Market Share
(For Waffles)
YEAR Projected % of Market Market Share
Market Share Share for Waffles
2018 355,920 40% 142,368
2019 405,176 40% 162,070
2020 453,346 40% 181,338

TABLE 11.3
Summary of Projected Market Share
YEAR Market Share Market Share Projected
for Pancakes for Waffles Market Share
2018 213,552 142,368 355,920
2029 243,106 162,070 405,176
2020 272,008 181,338 453,346

VI. PRICE STUDY

Pricing is the most burdersome stage in any type of business, be it

a product or service. It has a very big impact on the buying capacity of

customers particularly students. It sometimes influences the product

choices of the target market.

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There are different types of pancake products and waffles that can be

offered by BREAKY-BREKKY for customers in Cavite City with different

prices for their options.

TABLE 12
BREAKY-BREKKY Selling Price
(For Dine-In and Take-Out)

PANCAKES w/ butter & w/ butter, syrup w/ butter, syrup w/ butter,

syrup = P25 (2 & fries = P 40 & hotdog = P 45 syrup, fries &
pcs.) hotdog = P 55
WAFFLES w/ cheese = P w/ hotdog = w/ cheese & w/ ham &
10 P13 hotdog = P 15 cheese = P 15

(An additional Php 10 will be paid by customers if it will be served

with coffee, regular softdrinks or orange juice). These prices will be

fixed for its 3 years of business operations.

VII. RAW MATERIALS, MACHINERIES, TOOLS AND EQUIPMENT

The quality of pancakes and waffles is dependent upon the quality of

raw materials that are put together to create it. Hence, BREAKY-BREKKY

will ensure that the finished products are made from the finest ingredients

provided by the firm’s regular suppliers. Only the best cooking equipment

and tools will be used in order to avoid future problems in service

customers.
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TABLE 13

Machineries, Equipment and Tools

Item Unit Cost Quantity Total Cost

Cooking Equipment For Php 3,000 2 Php 6,000
Pan Cake
Cooking Equipment for Php 1,500 1 Php 1,500
Waffle
Refrigerator Php 10,000 1 Php 10,000
LPG Tank Php 1,500 2 Php 3,000
Pan Cake Turner Php 200 2 Php 400
Non-stick Frying Pan Php 500 2 Php 1,000
Kitchen utensils Php 1,000 1 set Php 1,000
Cash Register Php 1,500 1 Php 1,500
-Customer Tables -Php 500 8 Php 4,000
-Customer Chairs -Php 300 15 Php 4,500
-Office Table -Php 1,000 1 Php 1,000
-Office Chair -Php 500 2 Php 1,000
-Office supplies -Php 1,000 1 set Php 1,000

TOTAL Php 35,900

VIII. FACTORS AFFECTING THE MARKET

Every business enterprise is susceptible to problems brought about

by several forces, most of which is beyond the control of the business

owner. It is therefore imperative for the management to take a proactive

stance and anticipate possible situations that may challenge the

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competitive standing of the enterprise and from there, create the best

possible actions to mitigate its unfavorable impact on the company.

 Prices of Raw Materials

In the Philippines, increasing prices of basic commodities and raw

materials is a common occurrence. Clearly, this has tremendous

impact on the business and almost always compels owners to adjust

their price levels. In any event that price increases, the firm will try its

best to continuously serve its pancakes and waffles at a price

favorable to its target market. The firm will exercise diligence in

securing a long list of credible suppliers to increase the options when

selecting the most budget friendly raw materials provider.

 Competition

The curse of the competitive market theory dictates that any business

venture that clicks will most likely be duplicated by individuals looking

for business opportunities. As new entrants come in and excite

customers, lower profit and a reduced market share can be expected.

The company will anticipate this by continuously providing quality

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pancakes and waffles plus good services in order to attract more

customers.

 Demand

Economic conditions such as unemployment, price increases on

products and stagnant salaries and wages may discourage

customers from making a purchase. Uninterested consumers mean

lower demand and non-purchases mean lower or no income to a

businessman. The best thing to do to keep customers interested is to

offer exciting promotional packages like no price increases for three

years.

IX. MARKETING PROGRAM

The aim of marketing is to identify customer’s needs and wants and

meet these needs so well that the product almost “sell itself”. Thus, market

study is the lifeblood of the entire product study.

It is essential for the proposed project to give emphasis on the

efficiency and effectiveness of the marketing program to be implemented. It

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must be created to sell the product effectively to the target market and in

attaining the project’s objective and goal. It is expected that the proposed

activities will establish good relationship with customers because

awareness in the existence of the product can achieve projected sales.

The following marketing activities that will be undertaken are as

follows:

1. Free 100 waffles on its first day of operation.

2. Displaying of attractive tarpaulins in strategic places in Cavite City

as a form of advertising tool.

3. Give-aways like wallet calendars during Christmas season

X. FINANCIAL ASPECT

According to the owner’s estimate, BREAKY-BREKKY is expected to

maintain a healthy financial position over the next three years of business

operations. The following sections lay out the details of the financial plan

for the next 3 years.

Major Assumptions

1. The sales mix of pancakes and waffles is 60% and 40% respectively.

2. The average price of pancakes used was P41.25.

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3. The average price of waffles used was P13.25.

4. Economic useful life of equipment and tools were 3 to 5 years. The

straight line method was used to compute annual depreciation.

5. Prepaid rent represents one-month advance rental and deposit.

Financial Statements

BREAKY-BREKKY PanCake and Waffle House

Income Statement
For the 3-year ended December 31, 2020
Sales Revenue 2018 2019 2020
Sales Revenue 10,677,600.00 12,171,180.00 13,600,380.00
Less: Expenses
Organization Cost 30,000.00 - -
Salaries 585,000.00 643,500.00 707,850.00
Benefits 12,750.00 12,900.00 13,650.00
Professional fees 60,000.00 60,000.00 60,000.00
Utilities 320,328.00 365,135.40 408,011.40
Representation (meals) 90,000.00 99,000.00 108,900.00
Rental 360,000.00 360,000.00 360,000.00
Advertising & Marketing 50,000.00 35,000.00 20,000.00
Repairs and Maintenance 50,000.00 55,000.00 60,500.00
Direct Materials 6,406,560.00 7,302,708.00 8,160,228.00
Supplies and Overhead 2,135,520.00 2,434,236.00 2,720,076.00
Depreciation 6,980.00 6,980.00 6,980.00
Total Expenses 10,107,138.00 11,374,459.40 12,626,195.40
Net Income 570,462.00 796,720.60 974,184.60

BREAKY-BREKKY PanCake and Waffle House

Statement of Changes in Equity
For the 3-year ended December 31, 2020
2018 2019 2020
Capital Beginning - 1,070,462.00 1,367,182.60
Investment of Owner 500,000.00
Withdrawal by Owner (500,000.00) (500,000.00)
Add Net Income 570,462.00 796,720.60 974,184.60
Capital End 1,070,462.00 1,367,182.60 1,841,367.20
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BREAKY-BREKKY PanCake and Waffle House

Statement of Financial Position
For the 3-year ended December 31, 2020
2018 2019 2020
ASSETS
CURRENT ASSETS
Cash in Bank 640,858.80 969,791.92 1,427,397.70
Accounts Receivables 106,776.00 121,711.80 136,003.80
Raw Materials Inventory 192,196.80 146,054.16 163,204.56
Supplies Inventories 42,710.40 48,684.72 40,801.14
Prepaid Rent 60,000.00 60,000.00 60,000.00
Total Current Assets 1,042,542.00 1,346,242.60 1,827,407.20

LONG TERM ASSETS

Equipment (Net) 27,920.00 20,940.00 13,960.00
Total Non Current Assets 27,920.00 20,940.00 13,960.00
TOTAL ASSETS 1,070,462.00 1,367,182.60 1,841,367.20
OWNER'S EQUITY
Owner's Capital 1,070,462.00 1,367,182.60 1,841,367.20
 
TOTAL LIABILITIES & EQUITY 1,070,462.00 1,367,182.60 1,841,367.20

BREAKY-BREKKY PanCake and Waffle

House
Cash Flow Statement
For the 3-year ended December 31, 2020
2018 2019 2020
Cash Inflow from Operations
Collection from Customers 10,570,824.00 12,156,244.20 13,586,088.00
Cash Outflow from Operations

Cash Outflow from Operating Expenses (10,395,065.20) (11,327,311.08) (12,628,482.22)

Net Cash Inflow from Operations 175,758.80 828,933.12 957,605.78
Cash Outflow from Investing Activities

Cash Outflow from Purchase of Equipment (34,900.00) - -

Cash Inflow from Financing Activities
Owner's Withdrawal (500,000.00) (500,000.00)
Investment by Owner 500,000.00    
Net Cash Inflow from Financing Activities 500,000.00 (500,000.00) (500,000.00)
Net Cash Inflow 640,858.80 328,933.12 457,605.78
Add Prior Year's Cash Balance   640,858.80 969,791.92
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Ending Cash Balance 640,858.80 969,791.92 1,427,397.70

Supporting Schedules

Schedule 1      
Cash Outflow from Operating Activities 2018 2019 2020
Organization Cost 30,000.00 - -
Advertising & Marketing 50,000.00 35,000.00 20,000.00
Benefits 12,750.00 12,900.00 13,650.00
Direct Materials 6,598,756.80 7,256,565.36 8,177,378.40
Professional fees 60,000.00 60,000.00 60,000.00
Rental 420,000.00 360,000.00 360,000.00
Repairs and Maintenance 50,000.00 55,000.00 60,500.00
Representation (meals) 90,000.00 99,000.00 108,900.00
Salaries 585,000.00 643,500.00 707,850.00
Supplies and Overhead 2,178,230.40 2,440,210.32 2,712,192.42
Utilities 320,328.00 365,135.40 408,011.40
Total Cash Outflow from Operating Activities 10,395,065.20 11,327,311.08 12,628,482.22

Schedule 2 Depreciation Expenses

Name of Tools/Equipment Cost Useful Life Depreciation
Cooking Equipment For Pan 6,000.00
Cake 5 1,200.00
Cooking Equipment for Waffle 1,500.00 5 300.00
Refrigerator 10,000.00 5 2,000.00
LPG Tank 3,000.00 5 600.00
Pan Cake Turner 400.00 5 80.00
Non-stick Frying Pan 1,000.00 5 200.00
Kitchen utensils 1,000.00 5 200.00
Cash Register 1,500.00 5 300.00
Customer Tables 4,000.00 5 800.00
Customer Chairs 4,500.00 5 900.00
Office Table 1,000.00 5 200.00
Office Chair 1,000.00 5 200.00
Total 34,900.00   6,980.00
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