A MARKETING PLAN OF

In partial fulfillment of the requirements in:

Principles of Marketing

Submitted to:

Anna Marie A. Reyes

Submitted by:
 MAY 2021

EXECUTIVE SUMMARY

Four Bella’s Spaghetti House Co. will reinvent the pasta experience for individuals,
families, and customers with discretionary income by selling delicious, innovative products at a
reasonable price, designing tasteful, convenient locations, and providing the best customer
service.  As the business is a put together by a strong conviction to promote healthy food
options to its customers, it will transcend to beauty and sophistication.

The business will focus on following objectives:

 To introduce a new a face of pasta dish in the market that people will surely patronize
for its uniqueness.
 To explain the healthy benefits derived from carrot pasta.
 To be a profitable business as the entity goes into market and get a good deal of market
share.
 To provide excellent service to the people it serves.
 To provide employment.

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 I. MARKETING ASPECTS
COMPETITOR ANALYSIS
This competitive analysis gives knowledge of rivals and offers source of competitive
advantage. This determine who are your customers and to enhance the success factor of Four
Bella’s Spaghetti House, Co.
Among the restaurants that surrounded the area, two of them offers the same product
or in line with Four Bella’s Spaghetti House Co.’s main dish and services.
 Mama Lou’s Italian Kitchen

The competitor is located on  Block 1 Lot 36 Tropical Avenue corner Palace Street BF
International, Las Pinas, 1700 Metro Manila. The restaurant offers good number of choices,
premium food quality of oil based pasta dishes. The business is known as one of the best casual
Italian dining places. The business are taking bookings, walk-ins, parties, takeaway, catering,
table service and outdoor seating. They are open every 11:00 A.M. to 10 P.M. during Monday to
Thursday and until 12 A.M. every Friday and Saturday.
 Borgo Café

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 The competitor is located on 312 Aguirre Ave, Paranaque, 1720 Metro Manila. The
Italian restaurant offers cuisine among Italian, Spanish/Basque and Steakhouses and famous for
its BORGO Butcher's Steak. They are open between 10:00 A.M. to 11:30 P.M.
 Other competitors
Some small and minor competitors of the business are listed based on the type of food
they offer, should also take into consideration.
 Japanese restaurants
Little Rio Japanese Restaurant
Rustico Sushi Bar & Restaurant
Hotaru Japanese Restaurant
Mensakaba Geishu

 Korean Restaurant
Cham Maru - Aguirre Avenue, BF Homes, Parañaque, 1720 Metro Manila
 Bar & Grill
Charcool – Allrice
Backyard Tapa Grill and Beer
 Hamburger Restaurant
Knuckle Sandwich Station

SWOT ANALYSIS
The following SWOT analysis captures the key strengths and weaknesses within the
company, and describes the opportunities and threats facing Four Bella’s Spaghetti House
Strengths
 Unique product being new to the market.
 Availability of ingredients
 Affordability of the product.

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Weakness
 Duration of the product
 Product still not known on the market due to lack of advertisements

Opportunities
 Growing market with a significant percentage of the target market still not aware that
carrot pasta exists.
 To establish branches outside Parañaque City and even outside of Metro Manila
 Increasing sales opportunities in takeout business.
Threats
 Increase of competitors
 Price Inflation
 Threats of new entrants
 Bargaining power of buyers and suppliers

MARKETING STRATEGY
Major Customers
Target customer are hungry individuals between the ages of 25 and 30, male and female
making up 53% of Barangay BF. Age is not the most defined demographic of this customer base;
since all age groups enjoy pasta.  The most defined characteristic of the target market is
income. Sophisticated families who live nearby and young professionals who work close to the
location that eat out several times a week. Individuals that are cognizant about their health.
And tend to patronize higher quality restaurants.

Market Trends
The market trend for restaurants is headed toward a more sophisticated customer.  The
restaurant patron today relative to yesterday is more sophisticated in a number of different
ways.

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  Food quality. The preference for high-quality ingredients is increasing as customers are
learning to appreciate the qualitative differences.
 Presentation/appearance. As presentation of an element of the culinary experience
becomes more pervasive, patrons are learning to appreciate this aspect of the industry.
 Health consciousness. People are more cognizant of their health, evidenced by the
increase in individuals exercising and health club memberships, patrons are requesting
more healthy alternatives when they eat out.  They recognize that an entree can be
quite tasty, and reasonably good for you.
 Selection. People are demanding a larger selection of foods, they are no longer
accepting a limited menu.
Restaurant patrons no longer need to accept a limited number of options.  With more
choices, patrons have become more sophisticated.  This trend is intuitive as you can observe a
more sophisticated restaurant patron in larger city in the Philippines.

Advertising and Promotion

Aggressive advertising will be observed by the company. Posters and fliers will be
distributed to various location and posted beside major roads of Paranaque City.

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 Figure 1: Sample banner of the business

Figure 2: Sample flyers of the business

Viral marketing will greatly help in induces Web sites or users to pass on a marketing
message to other sites or users. Since nowadays, almost all business is done through e-
commerce; this will contribute much in gaining publicity to business.

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 Figure 3: Promotion thru internet

II. TECHNICAL ASPECTS

PERSONNEL PLAN
The personnel plan calls for hiring 5 full-time salaried employees at start-up. Baristas /
bartenders, dishwashers or bussers, servers will be part time and devoted to the expansion of
any catering function, as well as increased capacity/operation of a private party function.
Employee salaries are as follows:

SSS PhilHealth PAG-IBIG

Position Salary
ER / EE ER / EE ER / EE
Finance Admin Officer PHP30,000 1060 / 500 350 / 350 300 / 600
Marketing Officer PHP30,000 1060 / 500 350 / 350 300 / 600
Purchasing Officer / 1060 / 500 437.50 / 437.50 700 / 700
PHP35,000
General Manager
Operations Officer PHP30,000 1060 / 500 350 / 350 300 / 600
Chef PHP25,000 1060 / 500 312.50 / 312.50 250 / 500
Sous-chef/Line Cook PHP16,000 1060 / 500 200 / 200 160 / 320
Cook (2) PHP12,000 848 / 400 150 / 150 120 / 240
Floor Officer / Cashier PHP16,000 1060 / 500 200 / 200 160 / 320
Servers / Bartender (3) PHP11,000 + Tips 918.70 / 433.30 162.50 / 162.50 130 / 260
Computations where acquired from following:
 SSS computation from SSS.gov.ph
 Philhealth computation from Philhealth.gov.ph
 Pag ibig fund computation from Pagibig.gov.ph
 Wages and salaries computation from payscale.com, salaryexplorer.com, psa.gov.ph,
glassdoor.com/Salaries/, dole..gov.ph

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FLOOR PLAN

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EXTERIOR DESIGN OF THE BUILDING

INTERIOR DESIGN OF THE BUILDING

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LOCATION MAP
The business proposed location will be on Teheran Street Brgy BF Homes Paranaque
nearby Aguirre Street (Latitude,Longtitude: 14.45604,121.0083908)

Figure 4: Site Pictures

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 III. MANAGEMENT ASPECT

ORGANIZATIONAL STRUCTURE
The Four Bella’s Spaghetti House is owned by Cer Lemuel Pascual, Liezl Clapis, Roselee
Basilio and Karen Uchio with shares of 25% each. While building the restaurant, we have
decided that each of us will assume position as officers, to maintain and oversee the business
flow.
A chef (to be hired) will manage kitchen operations and be crucial to maintaining food
inventory stability and assistance in menu development. A floor officer / cashier (to be hired)
who will be a salaried employee, will provide regular table service as well as assistance to the
officers and the general manager.
A sous-chef/line cook (to be hired) will perform secondary management functions in the
kitchen as well as provide assistance to the chef in main kitchen/cooking functions. Part-time
personnel will be hired to handle bartending, serving, and dishwashing functions.
The business adapts the life and staff management whereas managers are responsible
for achieving the organization’s main objectives by executing key functions and the staff who
are responsible for activities in a day-to-day basis.

Liezl Clapis
General Manager

Karen Uchio Cer Lemuel Liezl Clapis

Roselee Basilio
Operations Pascual Purchasing
Finance Officer
Officer Marketing Officer Officer

Head Waiter /
Chef
Cashier

F&B Server Cook

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JOB DESCRIPTIONS
The Four Bella’s Spaghetti House Co. will be composed of various positions, well
delegated for the success of the business.
Restaurant General Manager
 Establishes restaurant business plan by surveying restaurant demand; conferring with
people in the community; identifying and evaluating competitors; preparing financial,
marketing, and sales projections, analyses, and estimates.
 Controls purchases and inventory by meeting with account manager; negotiating prices
and contracts; developing preferred supplier lists; reviewing and evaluating usage
reports; analyzing variances; taking corrective actions.
 Accomplishes restaurant and bar human resource objectives by recruiting, selecting,
orienting, training, assigning, scheduling, coaching, counseling, and disciplining
management staff; communicating job expectations; planning, monitoring, appraising,
and reviewing job contributions; planning and reviewing compensation actions;
enforcing policies and procedures.
 Maintains professional and technical knowledge by tracking emerging trends in the
restaurant industry; attending educational workshops; reviewing professional
publications; establishing personal networks; benchmarking state-of-the-art practices;
participating in professional societies.

Operations Officer
 Maintains operations by preparing policies and standard operating procedures;
implementing production, productivity, quality, and patron-service standards;
determining and implementing system improvements.
 Day to day running of the operation of the restaurant.
 Identifying customer needs with attention and marketing alterations to the clients.
 Approval of alterations and ensure invoicing.
 Provide weekly reports to management for KPI.

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  Supervises, schedules, and trains F&B Controller A.R.M.
 Provides information for payroll, tax and financial statement. Designs cash security and
disbursement systems. Review reports, solves problem.
 Meets with clients; plans and prices events.
 Responsible for billing the guest.
 Consults with Chef, Staff and other officers.

Marketing Officer
 Oversees the company marketing campaign both internally and externally. Plays a key
part in communicating the organizations marketing message.
 Preparing planning and project managing the publication of all publicity material to
maximize brand promotion.
 Creating marketing campaign and developing new innovative ways to communicate the
company’s message to their customer.
 Contributing to the annual sales and marketing plan.
 Planning and project, managing marketing events and evaluating their success.

Finance Officer
 Maintaining and further developing Four Bella’s financial record keeping and reporting
systems and for assisting with the maintenance of administrative systems.
 Meets restaurant financial objectives by developing financing; establishing banking
relationships; preparing strategic and annual forecasts and budgets; analyzing variances;
initiating corrective actions; establishing and monitoring financial controls; developing
and implementing strategies to increase average meal checks.
 Assist in the day to day operations of the company, participating within the company
team.
 In conjuction with the management team, the position also assist with the development
and maintenance of organisational and human resource, policies and procedures.
 Maintains responsibility and accountability of the company’s budget.

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Purchasing Officer
 Ensure competent quality execution of all regular purchasing duties and administrative
work.
 Maintain complete updated purchasing records / data and pricing in the system.
 Prepare reports and summarize data including sales report and book value
 Schedule store visits and conduct competitor survey.
 Execution and monitoring of all regular purchasing duties.
 Coordinate with user departments and suppliers to ensure that all items are delivered to
the site on time.
 Plan and manage inventory levels of material or products.
 Source for new supplies or sub-contractors when need arises.

Chef (Executive and Sous)

 Expected to modify and create / plan menus as needed.
 Recipe standardization. Food purchase specification.
 Prepare daily entrees. Develop procedure for food production.
 Charged with maximizing the productivity of the kitchen staff, as well as managing the
sous chef.
 Ensure that quality culinary dishes are served on schedule and to see that any problems
that arise are rectified. Responsible for approving all prepared food items that leaves his
or her kitchen. Overall food quality.

Cook
 Clean food preparation areas, cooking surfaces, and utensils.
 Cook and package batches of food, which are prepared to order or kept warm until sold.
 Maintain sanitation, health, and safety standards in work areas.

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  Measure ingredients required for specific food items being prepared. Read food order
slips or receive verbal instructions as to food required by patron, and prepare and cook
food according to instructions.
 Wash, cut, and prepare foods designated for cooking.

Head Waiter / Cashier

 Has overall charge of the staff team and is responsible for seeing that all the duties for
the preparation for service are efficiently carried out.
 Helps with the compilation of duty rosters and holiday lists and may relieve the officers
on their days off.
 Has good knowledge of food and beverage items. Can prepare and concoct alcohol
mixes
 Responsible for billing the guest.
 Ensures the cash float and sales are always balance.

Food and Beverage Servers

 Has adequate knowledge of food and beverage items.
 Prepares the tables, laying out napkins and utensils, making sure the condiments are
refilled, performing all other preparation tasks.
 Handle the table bookings, direct customers to their tables, presenting menus,
suggesting dishes, assisting in drink selection, informing customers about food
preparation details, communicating specific customer needs to the cooks.
 Maintaining proper dining experience, delivering items, fulfilling customer needs,
offering desserts and drinks, removing courses, replenishing utensils, refilling glasses.
 Prepare mixed drinks for service to customers table.
 Obtaining revenues, issuing receipts, accepting payments, returning the change.

MANAGEMENT TEAM GAPS

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 The management team will have to partially rely upon outside contractors/consultants
for both the marketing and accounting functions. The management team is still in the early
stages of formation.

GANTT CHART
Process July- October November December January
September 2015 2015 2015 2016
2015
Preparation of Marketing
Research and Business Plan
Time allocated for sourcing
of capital.
Site selection &
Improvement.
Improvement of leasehold.
Time allocated for securing
licenses and permits.
Time allotted for hiring
personnel.
Time allotted for buying
furniture’s and equipment.

Start of normal operation

IV. FINANCIAL ASPECT

This section will cover the capital need for proposed business, types of partner, profit
and loss ratio, of the proposed business. This study also includes a financial overview of Four
Bella’s Spaghetti House Co. as it relates to the marketing activities.  This will address Break-even
Analysis, sales forecasts, expense forecasts, and how those link to the marketing strategy.
Project Financing

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 Four Bella’s Spaghetti House is a general form of partnership, that will start with a total
capital contribution of Two Million Pesos (P2,000,000.00). Each partner shall invest P
500,000.00 (Five Hundred Thousand Pesos). The proponents will give their time, skill and
attention in the operation of the business as an employee.

FOUR BELLA’S SPAGHETTI HOUSE

PARTNERS' CAPITAL CONTRIBUTION

% ON TOTAL
DESCRIPTION CONTRIBUTION AMOUNT
DOCTOR, MARY GRACE ROSELEE 25% P 500,000.00
CLAPIZ, LIEZEL 25% 500,000.00
PASCUAL, CER LEMUEL 25% 500,000.00
UCHIO, KAREN LADY 25% 500,000.00
TOTAL 100% P 2,000,000.00

The source of capital that the partner’s uses are taken from their personal savings,
family member’s property and personal loans. The project initial investment is amounting to
Two Million Pesos (P2,000,000.00). This will be allocated to 4 partners. The partners’ equity and
their share in the profit and loss would be based on the partners’ contribution which is equally
distributed.

Break-even Analysis
Break-even point is the sales level at which Revenue equals Total Costs. As the term
“break-even” implies, Profit is zero after you subtract all of your variable and fixed costs.
The Break-even Analysis indicates that P525,883.84 will be needed in monthly revenue
to reach the break-even point.

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 Profit Monthly Break-even Point

150,000

100,000

50,000

(50,000)

(100,000)

(150,000)
430,000.00 480,000.00 530,000.00 580,000.00 630,000.00

Sales
Amount in Peso
Break-even point = where line intersects with 0

Break-even Analysis
Monthly Revenue Break-even 525,883.84
   
Assumptions:  
1. Variable Costs  
a. Cost of Goods Sold 30%
b. Employees Payroll & Benefits 17%
c. Marketing/ Advertising Fees 5%
d. Office Supplies 2%
e. Permits and Licences 2%
Average Variable Cost Percentage 56%
   
2. Annual Fixed Cost  
a. Rental Fee 420,000.00
b. Utilities Expense 180,000.00
c. Management payroll & benefits 1,640,000.00
d. Depreciation Leasehold Improvement 170,000.00
e. Depreciation Furniture & Equipment 366,666.67
Total Annual Fixed Cost P 2,776,666.67
   
Estimated Monthly Fixed Cost P 231,388.89
Break-even Computation:  

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 Formula:  
BEP = Total Fixed Cost
  (Contribution Margin %)
= 231,388.89
  (100% -56%)
BEP = P 525,883.84

Sales Forecast
It’s assumed that Four Bella’s Spaghetti House will be open up restaurant that offers
lunch, snack and dinner, with a focus on the business professional dinner crowd.  In order to
develop sales projections the following are set of assumptions.

1. Sales Forecast
There are tenAssumptions:  
(10) tables with four (4) seats in the restaurant.
Tables 10
Seats per table 4
Meals at Capacity per serving 40
   
Full Capacity Servings:  
Lunches 30
Snacks 40
Dinners 30
Total Servings at full capacity 100
   
Average Price per servings PHP 350.00
   
At full capacity:  
(amount in peso)  
Revenue per day 35,000.00
Revenue per month 1,050,000.00
Revenue per year P 12,600,000.00

2. Average price per order is P350.00

3. At full capacity the restaurant will serve 30 for lunch, 40 for snacks and 30 for dinner.
4. It is assume that the first 2 months of sales will be below the ultimate capacity by 35%.
5. Sales are assumed to increase by 7% each year.

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 So each month we will project the number of meals sold.  At full capacity it would be 100
meals per day x 30 days = 3,000 meals per month, but during the first couple months we will
estimate a 65% capacity as sales ramp up.

Sales Forecast

Groups/Families
Individuals

2016 2017 2018 2019 2020

Sales Forecast          
(amount in peso)          
  2016 2017 2018 2019 2020

P3,750,692.4
Individuals P3,276,000.00 P3,505,320.00 0 P4,013,240.87 P4,294,167.73

P5,626,038.6
Groups/Families P4,914,000.00 P5,257,980.00 0 P6,019,861.30 P6,441,251.59

P9,376,731.0 P10,033,102.1 P10,735,419.3

Total Sales P8,190,000.00 P8,763,300.00 0 7 2
           
Direct Cost          

P1,762,825.4
Individuals P1,539,720.00 P1,647,500.40 3 P1,886,223.21 P2,018,258.83
Groups/Families

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 P2,644,238.1
P2,309,580.00 P2,471,250.60 4 P2,829,334.81 P3,027,388.25

P4,407,063.5
Total Direct Cost P3,849,300.00 P4,118,751.00 7 P4,715,558.02 P5,045,647.08
Four Bella’s Spaghetti House Co. target customers are young professionals’ individuals
who work close to the location individuals, and sophisticated families who live nearby.  40% of
the total sales are assumed to be come from Individual customers and the remaining share
from the group or families.

Expense Forecast
The marketing expenses are budgeted so that they are fairly high during the first quarter of
operation, a strategy to develop visibility for the start-up organization. After that the expenses
will ramp up during certain months.
Marketing Expense Budget          
(amount in peso) 2016 2017 2018 2019 2020

Website
P30,000.00 P29,100.00 P28,227.00 P 28,791.54 P29,367.37
Advertisement 90,000.00 87,300.00 84,681.00 86,374.62 88,102.11
Banners and Flyers 25,000.00 24,250.00 23,522.50 23,992.95 24,472.81
Daily Offers and Discounts 15,000.00 14,550.00 14,113.50 14,395.77 14,683.69
Others 5,000.00 4,850.00 4,704.50 4,798.59 4,894.56
Total Marketing Expenses P165,000.00 P160,050.00 P155,248.50 P158,353.47 P161,520.54
Percent of Sales 2.01% 1.83% 1.66% 1.58% 1.50%

The website will be utilized as a powerful communications tool, supplying

introductory information to prospective customers, providing an avenue for questions and
answers, as well as presenting more specialized information.

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Projected Financial Statement
Financial Assumptions
The financial plan depends on important assumptions. The key underlying assumptions are:
A. We assume a slow-growth economy, without major recession.
B. We assume that there are no unforeseen changes in the expectancy in the popularity of
our restaurant.
C. Cost of goods sold was determined by using our pricing structure and guest counts; it
must be kept at or below 30% of sales.
D. Employees Salary & benefits is assumed at 17% of sales and will increase by 10%
annually.
E. The 13th month pay is equivalent to one month basic salary.
F. SSS, Philhealth and Pag-ibig contributions are computed on the form filed up by
employees.
G. Marketing or Advertising expense. These funds will be used for the production of
various marketing materials it will be used, to maintain our sales at projected levels. It is
estimated at 2% of sales and it is projected to decrease by 3% on the 2 nd to 3rd year and
increase at 5% starting 4th year.
H. Ending office supplies and other supplies is estimated to be 2% of sales and it is
projected to increase by 5% on the 3rd year and on the succeeding years.
I. Rental Fee is estimated as P35, 000.00 per month and it is projected to increase at 5%
every after 3 years.
J. The depreciation expense is computed using straight line method. The useful life of the
furniture & equipment is 3 years.
K. Leasehold improvement is to be depreciated using straight line method for 5 years.
L. Utilities expense is expected to increase at 5% on the 4 th year while it remains the same
on the 1st Three years; it includes water, electricity consumption, and PLDT with
internet.

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 M. Permit and Licenses are estimated at 2% of sales and expected to increase at 5% on the
2nd year, shall increase to 10% on the 3 rd and 4th then shall spike up to 20% on the 5 th
year.
N. Provision for income tax is 30%.
O. The business would distribute profit and its loss with the following amount:
 1st Year- P 692,673.00
 2nd Year-P 892,207.00
 3rd Year-P 1,098,958.00
 4th Year-P 1,292,992.00
 5th Year-P 1,478,819.00

P. Estimated startup costs that we will incur before we even open the restaurant.
amount in: Peso  
Estimated Project Cost
Capital Expenditure  
Leasehold Improvement P 600,000.00
Furniture and Fixtures 250,000.00
Kitchen Equipment 200,000.00
Office Equipment 75,000.00
TOTAL P1,125,000.00

 Projected Income Statement

It shows the revenue, expenses and net income or loss for the period of time. The charts
show our profit and loss projections. Projected Income Statement for five years are in the
appendix tables.

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 Gross Margin Yearly

The most important assumption in the Projected Profit and Loss statement is the gross
margin. Although it doesn't jump drastically in the first year, over time the restaurant will
develop its customer base and reputation and the growth will pick up more rapidly towards
the fourth and fifth years of business.

Benchmark

Gross
Margin

Operating
Expense

Net Income

 Projected Balance Sheet

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 It shows the assets, liabilities and equity at a particular time. It is useful in predicting the
ability of the entity to generate cash in the future to covers all the obligations and debt. The
accompanying table presents our yearend balance sheet estimates from our first five years
information is included in the appendix tables.

 Projected Cash Flow Statement

It shows how it is obtained during the period. It is useful in order to assess the operating,
investing and financing during the period. It is the cash flow less the cash outflow to get net annual
cash flow.

FOUR BELLA'S SPAGHETTI HOUSE

CASH FLOW PROJECTION 31-Dec-16 31-Dec-17 31-Dec-18 31-Dec-19 31-Dec-20
(amount in peso)          
           
Cash Received from Operations:          
Cash Sales ₱8,190,000 ₱8,763,300 ₱9,376,731 ₱10,033,102 ₱10,735,419
Cash Received from Investment:          
2,000,0
Investment Capital 00        
10,190,0
SUBTOTAL CASH RECEIVED 00 8,763,300 9,376,731 10,033,102 10,735,419
           
Cash Disbursement          
For Capital Expenditures          
Leasehold Improvement 850,000        
1,466,6
Purchase of Equipment 1,100,000     67  
Dividends Payout 692,673 892,207 1,098,958 1,292,992 1,478,819
For Operating Expense 6,754,129 6,957,065 7,275,295 7,654,061 8,090,287
Income Tax Paid 296,860 382,374 470,982 554,139 633,780
9,693,6 8,231,6 8,845,2 10,967,8 10,202,8
TOTAL CASH DISBURSEMENT 63 46 34 60 85
496,3 1,027,9 1,559,4 624,7
Add: Cash Beg. Balance   37 91 88 30
Cash End Balance ₱ ₱ ₱ ₱ ₱

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 496,337 1,027,991 1,559,488 624,730 1,157,264

Financial Analysis
Business Ratios
These business ratios are future estimates based upon current assumptions. 

 Analysis of Liquidity
It shows how the company will cover or pay all of its maturing obligations.
Liquidity Ratios 31-Dec-16 31-Dec-17 31-Dec-18 31-Dec-19 31-Dec-20
Current Ratio 6.86:1 11.88:1 16.56:1 7.56:1 11.86:1
Net Working Capital 586,667 1,123,333 1,660,001 730,000 1,267,000
Acid-Test Ratio 4.96:1 9.96:1 14.62:1 5.62:1 9.92:1
Cash Conversion Cycle 5.62 5.69 5.74 5.78 2.79
Cash Asset Ratio 4.96:1 9.96:1 14.62:1 5.62:1 9.92:1

 Current Ratio
It will determine the ability to meet all the current obligations. The higher current asset than
current liabilities are preferably because it means that more asset available for paying obligations.
(Current Assets divided by current Liabilities).

 Quick Ratio
The quick ratio or acid test ratio is a liquidity ratio that measures the ability of a company to pay
its current liabilities when they come due with only quick assets. Quick assets are current assets that
can be converted to cash within 90 days or in the short-term.

Profitability Analysis
Profitability Ratios 31-Dec-16 31-Dec-17 31-Dec-18 31-Dec-19 31-Dec-20
Gross Revenue Growth 7.00% 7.00% 7.00% 7.00% 7.00%
Gross Profit Margin 53.00% 53.00% 53.00% 53.00% 53.00%

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Net Income Margin 8.46% 10.18% 11.72% 12.89% 13.78%
Return on Average Assets 32.96% 42.39% 52.11% 61.17% 139.73%
Return on Average Operating
Assets 39.26% 50.43% 61.92% 72.56% 124.10%
Return on Equity 9.74% 14.12% 20.65% 31.34% 85.02%

Net Income Margin

It measures the efficiency of earning net income from sales.
Return on Asset It measures the productivity of the asset to generate income.
Return on Equity It measures the rate of return for ownership interest. It measures the
efficiency of a firm at generating profits from each unit of capital, also known as net
assets or assets minus liabilities. 

Payback Period
Payback period is the length of time to recover all the initial investment from the annual
cash flow. Based on the data the business would be able to recover the investment within 2.31
years.

Year Cash Flow Cumulative Cash Flow PB

0 (2,000,000.00)    
1 496,337.33 (1,503,662.67)  
2 1,027,991.00 (475,671.67) 2.31
3 1,559,487.62 1,083,815.95  
4 624,730.09 1,708,546.05  
5 1,157,264.20 2,865,810.25  
Payback Period 2.31 years    

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VII. SOCIO ECONOMIC ASPECTS
The Four Bella’s Spaghetti House Co. will strive to provide a healthy food for the people..
This health benefits is an advantage for them to have a healthy lifestyle. Proper waste disposal
will be strictly implemented to maintain cleanliness at the working area and for environment as
well.
By putting up this business, in the future if there is a need of expansion people within
the area will be benefited by providing jobs and earn additional income for their family. Thus,
this may minimize the unemployment rate in the local area of Metro Manila.

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