ShawarMaize

A Feasibility Study
Presented to the Faculty Members of the
School of Hospitality Management
Divine Word College of Legazpi
Legazpi City

In Partial Fulfillment of the Requirements for the

Degree of Bachelor of Science in
Hospitality Management

By:

Arevalo, Emmanuel Louis

Jaucian, Charles Ivan

Decemeber 2020
 Section 1
MARKET STUDY

This portion shows the product, the target market, historical data, projected

demand and projected supply, the market competition, the sales forecast and the

marketing programs on how to promote the business to feasible and doable. This

document should be used as a framework to guide the development of a business.

Product Description

Shawarma  is a dish in Middle Eastern cuisine consisting of meat cut into thin

slices, stacked in a cone-like shape, and roasted on a slowly-turning vertical rotisserie

or spit. Originally made of lamb or mutton, today's ShawarMaize will

offer chicken, turkey, beef, or veal. Thin slices are shaved off the cooked surface as it

continuously rotates. Shawarma is one of the world's most popular street foods,

especially in Egypt and the countries of the Levant and the Arabian Peninsula and

beyond.

ShawarMaize is prepared from thin cuts of seasoned marinated beef,. The slices

are stacked on a skewer about 60 cm (20 in) high. Chicken fat may be added to provide

extra fat for juiciness and flavor. A motorized spit slowly turns the stack of meat in front

of a heating element, continuously roasting the outer layer. Shavings are cut off the

rotating stack for serving, customarily with a long, sharp knife.

 Table 1

HISTORICAL POPULATION

Table 1

Historical Data

Grade Level School Year

2018 2019 2020
Grade 7 1,295 1,098 1,110
Grade 8 1,016 1,221 1,186
Grade 9 991 985 1,243
Grade 10 907 899 877
Grade 11 673 743 834
Grade 12 498 596 677
Total 5,380 5,542 5,927
Source: Principal’s Office, Daraga National High School

Table 1 shows the total population of Daraga National High School for the last 3 years.

These data was given by the school principal. It shows that in 2019 the population

increased by 3.0%, in 2020 by 5.15% or at an average of 4.075%

Demand Analysis

Demand is when the price of a good or product decreases, the relative price of

that product makes the buyer more eager to buy that good or product.

The proponents distributed 80 copies of survey questionnaires which were

distributed after their afternoon classes.

 Table 2

Projected Demand

Year Target Market % of Frequency Projected Demand

Willingness
90%
2021 6,169 5,769 80 461,520
2022 6,418 6,155 80 492,400
2023 6,660 6,638 80 531,040

Table 2 shows the projected demand for the next three years. It shows the

willingness to buy of the product that is 90% or 72 out of 80 respondents. The

frequency was based from the result; where majority of the respondents they will buy

the product twice a week.

Supply Analysis
Supply is also one important factor of the feasibility study in a business and it

refers to the existing product and service in the market.

Table 3

Competitor’s Supply

Competitors Daily Servings Weekly Monthly Yearly Serving

Shawarma 178 1246 5340 64,080
Shack
Leylam 102 714 3060 36,720
SHawarma
Turks 160 1120 4800 57,600
Shawarma
Total 158,400
 Table 3 shows the daily, weekly, monthly, and yearly servings of the competitors.

The proponents gathered the data through casual interview from the competitors.

Table 4

Projected Supply

Year Projected Supply

2021 161,568

2022 164,736

2023 167,904

Total 494,208

Table 4 explains the projected supply for the next three years. According to the

owner of competitor’s business, an average of 2% per year is the increase in their sales.

Demand and Supply Gap

Gap analysis involves analyzing current market offering to assess the extent to

which they meet customer demands.

Table 5

Demand and Supply Gap

Year Demand Supply Gap

2021 461,520 161,568 299,952
2022 492,400 164,736 327,664
2023 531,040 167,904 363,136

Table 5 shows that there is still a wide gap could be filled by the proposed, which means

that there is a great opportunity for the proposed business to be successful in the future.
 Table 6

Sales Forecast

Product Quantity Unit Price Daily Weekly Monthly Yearly

Shawarma 100 P 50.00 P 5,000.00 P30,000.00 P120,000.00 P1,440,000.00

Table 6 shows the daily, monthly,and annual sales of the business.

Marketing Program

. The marketing program is a coordinated and well-designed set of activities to

achieve marketing objectives. Marketing objectives are strategic sales goals that fit the

products' strengths and are based on various characteristics of the product. It

represents the 4 P’s marketing. Product, Price, Place, and Promotion that are vital for

the success of the proposed business venture.

Figure 1

Product
Price

The product will be sold in cash basis. The business will see to it that the

price of the food would be made affordable to all kinds of people, specially to the

students.

Costing

Beef Shawarma

ITEM QUANTITY UNIT TOTAL COST

Beef 6kg P220.00 P1320.00
Cucumber 1kg 60.00 60.00
Cheese 5packs 45.00 225.00
Ground All Spice 6packs 30.00 180.00
Onion 1kg 100.00 100.00
Oil 1kg 50.00 50.00
tomatoes 1kg 60.00 60.00
Pita Bread 100pcs 2.50 250.00
Lettuce 1kg 120.00 120.00
Mayonnaise 1galon 110.00 135.00
Total: P2500.00
Yield: 100 serving
Total Cost: P2500.00
Total Price: P 25.00
Mark Up: 100% = P 25.00
Selling Price = Total Price + Mark Up Price
P 25.00 + P 25.00 = P 50.00
Selling Price = P 50.00
.
Place

A good location is always a factor for generating good profit. The proposed kiosk

will be placed at Brgy Sagpon, Daraga, Albay infront of Daraga National High

School. The proponents will pay a rent worth P5,000.00 monthly.

Figure 2

Location Map
Figure 3

Location
Promotion

The proponents of this study will use tarpaulin and through social media to

promote the proposed business.

Figure 4

Business Logo
 Table 7
Promotional Cost
Items Quantity Cost Total Cost
Tarpaulin 3 pcs 100.00 300.00
Total     300.00
Source: Lumenario Design Decal & Tarpaulin Printing

Table 8 shows the total cost of the promotion approaches of the proposed business.
 Section 2

Production Study

This section presents the product description. It includes the production and

service process, production schedule, raw materials, tools, and equipment,quality

control, improvements, utilities and the cost of the rendering of the services of the

proposed business.

Product Description

ShawarMaize is prepared from thin cuts of seasoned marinatedbeef,. The slices

are stacked on a skewer about 60 cm (20 in) high. Chicken fat may be added to provide

extra fat for juiciness and flavor. A motorized spit slowly turns the stack of meat in front

of a heating element, continuously roasting the outer layer. Shavings are cut off the

rotating stack for serving, customarily with a long, sharp knife.

Shawarma is not only tasty but provides a great source of vitamin A. It is known that this

vitamin for eye health, and in strengthening the immune system. Shawarma is

recommended with more than one source of vitamin A such as turnip, carrots next to

lettuce, tomatoes and onions. Another healthy benefit of shawarma contains a good

proportion of vitamin B6. This vital vitamin is important for maintaining the health of the

nervous system, protecting the immune system, and supporting brain function. Several

studies have confirmed that vitamin B6 deficiency can lead to stress, depression and

muscle pain.
Production Process

Production process means a process, line, method, activity or technique, or a

series or combination of processes, lines, method or techniques, used to produce a

product or reach a planned result.

MISE EN PLACE

PREPARATION OF
INGREDIENTS

COOKING

FINISHED PRODUCT

Figure 5

Production Process Flow Chart

Service Process
The proposed business kiosk will be open from 7:30 in the morning to 5:00 in
the afternoon, Monday to Saturday.

TAKING OF ORDERS

PAYMENT

PREPARATION

SERVING

Figure 6

Service Process Flow Chart

 Table 8
Raw Materials
Qty Unit Total Total Cost Total Cost Total Cost
Item Cost Weekly Monthly Yearly
Daily
Beef 6kg P220.00 P1320.00 P31,680.00 P380,160.00
P7,920.00
Cucumber 1kg 60.00 60.00 360.00 1,440.00 17,280.00
Cheese 5pcks 45.00 225.00 1,350.00 5,400.00 64,800.00
Ground All 6pcks 30.00 180.00 1,080.00 4,320.00 51,840.00
Spice
Onion 1kg 100.00 100.00 600.00 2,400.00 16,800.00
Oil 1kg 50.00 50.00 300.00 1,200.00 14,400.00
tomatoes 1kg 60.00 60.00 360.00 1,440.00 17,280.00
Pita Bread 100pcs 2.50 250.00 1,500.00 6,000.00 72,000.00
Lettuce 1kg 120.00 120.00 720.00 2,880.00 34,560.00
Mayonnaise 1galon 135.00 135.00 810.00 3,240.00 38,880.00
Total: P2500.00 P 15,000.00 P60,000.00 P720,000.00
Source: Daraga Public Market

Table 8 presents all the raw material that will be needed in the proposed business. It
shows the total cost from daily to yearly.

Tools and Equipment

Table 9
Machineries and Equipment

Units Quantity Unit Total Useful Life Depreciation

Expenses
Food 1 P320.00 P320.00
Weighing
Scale
Gas tank 1 1000.00 1000.00
Cooler 1 600.00 600.00
Electric Fan 750.00 750.00
Shawarma 1 15,000.00 15,000.00 3years P5000.00
Machine
Total P17,670.00 P5,000.00
Source: Food Cart and Machineries, Co. Manila
 Table 9 shows the kitchen equipment that will be used in the proposed business
Table 10
Packaging Materials
(Consumable Weekly)
Items Unit Price Total Cost
Brown Paper 600pcs P600.00 P600.00
Paper Bag (M) 1 box/500pcs 600.00 600.00
Total     P1,200.00
Source: Unitex Legazpi

Table 9 shows the list of the packaging cost needed in the proposed business.

Table 11
Kitchen Utensils

Items Unit Price Total Cost

Casserole 2 P 685.00 P 1,370.00
Food Tong (Big) 1 80.00 80.00
Stainless Tray 1 250.00 250.00
Spatula 1 115.00 115.00
Food Wrapper 1000pcs 1100.00 1100.00
Total P 5165.00
Source: Yashano Mall

Table 11 shows the list of the kitchen utensils, unit, price, of each item and the

total cost of the cleaning supplies.

Table 12
 Office Supplies
Consumable Items Unit Price Total
Ballpen 4 P 5.00 P 20.00
Record Book 2 36.25 72.50
Total   P92.50
Non-Consumable Items Unit Price Total
Calculator 1 265.00 P 265.00
Total     P357.50
Source: Yashano Mall

Table 12 shows the lists of the office supplies, unit and price of each item. It also

shows the total cost of the office supplies consumable and non-consumable.

Table 13
Furniture and Fixtures
Items Quantity Unit Total
Tables 2 725.00 1,450.00
Chairs 8 155.00 1,240.00
Total 2,690.00
Source: Yashano Mall

Table 13 shows the lists of furniture and fixtures to be used in the proposed

business.
 Table 14
Cleaning Supplies
Total
Consumable Items Quantity Unit Cost Monthly Annually
Dishwashing Liquid 1L 120.00 P 120.00 P120.00 P1,440.00
Sponge 2 pcs 10.00 10.00 10.00 120.00
Rugs 4 pcs 12.00 48.00 48.00 576.00
Trash Bags 1 pack 55.00 55.00 55.00 660.00
Total     P 233.00 P 233.00 P 2,796.00
Non-Consumable Total Annually
Items Quantity Unit Cost
Trash Bins 2 pcs 72.75 P 145.50 P 145.50
Mop 1 pc 236.75 236.75 236.75
Soft Broom 1 pc 80.00 80.00 80.00
Dust pan 1 pc 50.00 50.00 50.00
Total   P 512.25 P 512.25
Source: Yashano Mall

Table 14 shows the lists of the cleaning supplies, unit, price of each items and

the total cost of the cleaning supplies. Consumable items will be bought monthly and

the non-consumable items will be bought annually.

Table 15
Sanitary Supplies
Total Monthl
Consumable Items Quantity Unit Cost y Annually
Disposable Plastic Gloves 1 pack 50.00 50.00 200.00 2,400.00
Tissue 1 pack 55.00 55.00 220.00 2,640.00
Total     105.00 420.00 5,040.00
Total
Non-Consumable Items Quantity Unit Cost Annually
Hand Towel 3 pcs 12.00 36.00 72.00
Hairnet 2 pcs 10.00 20.00 40.00
Apron 2 pcs 45.00 90.00 180.00
Total 146.00 292.00
Source: Yashano Mall
 Table 15 shows the lists of the sanitary supplies, unit of each item, total

cost monthly and total cost annually of the sanitary supplies. Consumable items will be

bought monthly and the non-consumable items will be bought annually.

Table 16
Utilities Expense
Utilities Monthly Consumption
Gas 780.00
Water (25 L) 300.00
Electricity 1,000.00
Total P 2,080.00
Source: Petron Gasul, LCWD, APEC

Table 16 shows the possible water and electricity bill that the proponents need to

pay every month.

Table 17
Improvement Cost
Items Quantity Unit Total Cost
Paint 1 gal 515.00 515.00
Paint Brush 2 pcs 59.25 118.50
Roller Brush 1 pc 165.75 165.75
Total     799.25
Source

Table 17 shows the lists of the materials needed for the improvement cost.

Quality Control
 The proponents will provide supreme quality control. All the materials and

ingredients that will be used should be in a good quality. Teamwork will also be

executed in order to change and retain leaders who frequently raise the store, provide

directions and instructions, eliminate barriers and authorize people to successfully

accomplish goals.

Waste Disposal Scheme

Proper disposal of wastes can help in maintaining the environment clean and

safe. Proper disposal of wastes and segregation will be observed. Biodegradable will

dispose regularly to ensure cleanliness and orderliness in the production area.

Section 3
 ORGANIZATION AND MANAGEMENT STUDY

This section presents the discussion of the management aspect of the business,

it will show the form of ownership, organizational structure, duties and responsibilities,

job description and specifications, manpower requirements, salaries and wages,

business registration and permits, and the timeline as presented in the Gantt Chart.

FORM OF BUSINESS ORGANIZATION

The proposed business will be operated as a general partnership, associated

with two persons bind themselves to contribute money, property or industry, to a

common fund with the intention of dividing the profits among themselves.

The proponents, as the owners of the business, are the managers of the
organization.

CAPITALIZATION

The proposed business will need P130,023.08 to start the business operation of

ShawarMaize. The partners will equally share said amount as their capital contribution

to the business amounting to 65,011.54each as shown in Table 18.

TABLE 18

Capitalization

Partners Amount
Arevalo, Emmanuel P 65,011.54
Jaucian, Charles P 65,011.54
Total P 130,023.08
 Table 19

SALARY

Position Daily Monthly

Compensation Compensation
Partner 1 P 450.00 P 10,800.00
Partner 2 450.00 10,800.00
Total 900.00 P21,600.00

Table 19 shows the daily and monthly salary of the proponents.

LEGAL REQUIREMENTS

Table 20

PERMITS AND LICENCES

Registration Amount
Mayor’s Permit P 1,000.00
BIR 500.00
SEC 2,040.00
Barangay Clearance 66.00
TOTAL 1,566.00

Table 20 shows the list of legal requirements needed in the proposed business.

Gantt Chart
Items Aug Sept Oct Nov Dec Jan

Preparation of
Feasibility Study

Capital Sourcing

Purchasing of Materials

Business Registration

Promotion

Start of Operation
Business

Section 4

Financial Study
This section contains all the calculations of the projected cost. The importance of this

section is to provide the provide the proponents idea whether the business is feasible or

not

ShawarMaize
Project Cost

Property and Equipment

Equipment ₱ 17,670.00
Tools and Utensils 5,165.00
Furniture and Fixture 2,690.00 ₱ 25,525.00

Working Capital
Raw Materials ₱ 60,000.00
Office Supply 450.00
Cleaning Supply 745.25
Sanitary Supply 566.00
Utilities Expense 2,080.00
Salaries Expense 21,600.00
Packaging 1,200.00
Rent Expense 5,000.00 ₱ 95,641.25

Pre-Operating Expenses
Promotion ₱ 300.00
Permits and Licenses 1,566.00
Improvement Cost 799.25 ₱ 2,665.25

Tota
l ₱ 123,831.50
Contingency Cost (5%) ₱ 6,191.58
Total Project Cost ₱ 130,023.08