The Business Plan

I. Executive Summary
II. Mission Statement
III. Business Environment
IV. Marketing Plan
V. Management and Personnel
vi. Financial Projections
vii. Assumptions / Conclusions
 I. The Executive Summary

Solomon Guest House will be the best casual dining

restaurant operated and managed by a HRIM school. Run
by students undergoing training under the direct supervision
of a faculty for food service and a chef faculty who functions
as a mentor in sharing their expertise to systemize and
organize the kitchen brigade and F & B faciltily
 Best known feature of Solomon Guest House are the
inexpensive and innovative line of dishes in the menu
that is changed every 3 months or each new term while
maintaining it’s well-loved dishes like Tiramisu (for
dessert), and Cajun Chicken Fingers.

Solomon Guest House shall offer only the best value

for money from service, food, beverages, ambiance,
security and safety.
 Equipped with state-of-the art facilities and latest in
hotel equipment and utensils plus competent, industry-
practitioners and instructors who has had experienced
working overseas and trained for advancement in the line
of work they are in. L
Lessons and laboratory requirements needed are
global in standard and practices to better help aid the
students in achieving competency in training in culinary,
hotel and restaurant management tracks. Not only locally
but global as well.
 Sharing of resources, time and talents among the DLSU
schools through it’s qualified faculty, students, and staff just to
name a few is the premier highlight on the One La Salle
system for 2010.

Therefore this study is a business proposal for the

restaurant expansion. Thus there will be a need to branch out
to other La Salle campuses most specially with HRIM
programs to facilitate, support and have a continuing effort to
share the knowledge and resources for their financial benefits
the restaurant can achieve for their program and school.
 Solomon Guest House sales target is 4.6M
by the end of 2010 (23% increase every School
Year calendar). This is the percentage gross
revenue generated from the initial data of SY
2007-2008
 II. The Mission
Statement

The Solomon Guest House will be the standard and benchmark to

all future branches and outlets as it expands it’s horizon and vision to be
the first of it’s kind in the HRIM program in the Philippines.

We will continue to develop our unique brand positioning, to

maintain and grow our solid brand recognition, and to adhere to high
quality in the hospitality industry standards.
III. The Business Environment

a) National trends

b) Industry trends

c) Local trends
a) NATIONAL TRENDS
Growing Appetite

for Food Service

b) INDUSTRY TREND
c) LOCAL TRENDS
 The Competition
There are 4 main direct competitors of
SGH, their food offerings and prices :

1. Animo
1. Animo canteen
canteen (Formerly
(Formerly Aristocrat)
Aristocrat)

2. SPS building canteen

3. La Casita (Sports Complex)

4. Z2 (Zaide) Cafeteria
 2 Types of classifications
of a dining service

Taken from the book Management of F&B Operation by Jack D. Ninemier

 Presently SGH functions falls
under the non commerial type facility.
Future plan is eventually grow it to a
commercial direction.
 THE ADVANTAGE OF SGH IN
COMPARISON TO IT’S COMPETITORS

SGH offers dishes that are examples of true gourmet dishes

at very affordable prices. They offered dishes like: Scaloppini
Parmigiana, Special grilled Pork Belly, Gourmet burger, Beef
Rendang, among others. For beverage: Specials like Jakarta
breeze, Beijing Spring, Tokyo sunrise among others. SGH
maintains there best seller dishes like Tiramisu (for dessert), and
Cajun Chicken Fingers.
Our Product or Service
 SGH is a non-commercial restaurant selling casual
semi fine dining dishes using an a la carte menu all under
P100.00.

Our service will be personalized wherein total

interaction be exercised by the students trainee and the
customers.

Our services includes a sit down type of dining

wherein a waiter or waitress would come to take your
order and would be served in 10-15 minutes.
 Solomon guest House is equipped with state-of-the
art facilities plus competent, industry-practitioner instructors
that aid students in achieving competency in training in
culinary, hotel and restaurant management tracks.

SGH maintains a survey form that are collated as

customers are asked to answer survey questions regarding
price, service, ambiance and suggestions. Facts from these
data forms were used to validate that the innovativeness,
cheap prices are the primary reason they come back.
 SGH will be known as a sit down dining
restaurant inside the campus. Service is personalized
and a menu of dishes and drinks are given and
served to the customers rather than a turo-turo or
cafeteria style like all the other canteens in-campus.

The students on duty will always be in uniforms

and service is at par to a 5 star hotel standard.
 Customers won’t be tired of going back since
every term the menu changes and the staff are new
students each term, thus new faces for the
customers.

The best feature of Solomon Guest House is

the innovative line of dishes in the menu every 3
months while maintaining it’s best sellers.
Other BIG indirect competitors of SGH is
located outside the school campus:

Mc Donald’s Yellow Cab

Chow King Tapa King

Red Ribbon Tropical Hut

Kenny Rogers Starbucks Café

 Distance between SGH and it’s indirect competitors’
is just a walk away from each other because they are
located outside the school campus, while SGH is located
inside DLSU campus.

The disadvantage of SGH’s competitors is the

proximity factor. This means more time and energy for the
customers to be able to go to the competitors that is
located ff-campus.

Note: The inconvenience of short breaks between classes, and during the
rainy season is a big contributing factor in increasing restaurant
revenue for the target market to patronize the establishment. (see map
for reference to distances of the indirect competitors)
 Yuchengco Bldg.

Visual map of indirect competitors outside DLSU campus

IV. Marketing
Plan
 Competitive Analysis

Product selection

Market share

Product quality

Advertising & Promotion

 Marketing Strategy

The advertising budget of Solomon is very

limited. So the restaurant will create banner
ads for internet, intranet, and websites.
 Alternatively, they can offer daily or weekly menu
specials, to practice the menu cycle development they have
learned and add variety to the menu offered for the whole term.

To develop a website - By creating a website you will

very quickly give an identity to your restaurant, and give
clients a place to go to find out information (hours of
operation, new menu items, special events, etc.) Plus, when
Solomon is not open, they can: accept reservation inquiries,
group inquiries, sell products, provide special event and
menu information.
 The website would include :
Include the student’s bio-data. This is a good way
to introduce them and their expertise for future
opportunities after they graduate.

A map of where you are located and how to get there.

Menus and daily or weekly specials

Testimonials from guest

Upcoming events at the restaurant

 • Announcement of contests/competitions among the CSB
student’s for the best marketing proposal project.

• Create a series of events/promotions like seasonal

special occasions (e.g. Valentine’s special etc). This
will generate publicity

• Create a series of events- this will generate publicity

• Set up special events to co-ordinate with events

happening in local area.
• SGH will provide service to the general public as long as
there is advance reservation. They will go thru the standard
procedure when entering the campus by leaving an ID for a
visitors pass.

• Coordinate with different DLSU school organizations to

promote the SGH. Invite the organizations to have their
meetings in SGH with special package rates.

• Provide discount coupons to people attending the

event. The restaurant can take advantage of the
crowds attracted to the events. This is a subject also
included in the HRIM curriculum.
Workforce

Equipment/Technology

Capacity
 SGH Pricing Scheme
Pricing method

Objective

Pricing Strategies

All-one-price principle
Competitive Advantage

Quality

Location
.

Safety and Security

 Geographic’s
Our immediate geographic targets are the students,
faculty, graduate school and friends. DLSU with a
population of 14,500. (3X population of DLS-CSB)

The total target market population is not less

than 13,000 individuals which comprises:

•DLSU students
•Faculty and staff
 Demographics
Male and female.
Yuppies (new graduates working within the area 20-25
years of age) and students in their 3rd to 4th year high school
year to college level (15-19 years of age).

Attending college or have attended college

and/or graduate school.

An income of above the minimum wage law

(for working professionals) or allowance of P150.00
per day (for students)
 Target Market
OTHERS – 1% Faculty and Staff (DLSU)3%

DLSU STUDENTS-96%

Source came from my personal observation and forecasted

traffic wherein the SGH will be located inside the campus, with the
student, staff, and visitors. Observed for 2 weeks. 3X per week. First
week MWF and 2nd week T,TH,S

Based on observation that faculty populuation ratio to students

popuation is 30 students for each faculty.
 Target Marketing

Dine-in Market Segment compose of Students and

young and old professionals who work in the vicinity.

Students in their 3rd to 4th year high school year to

college level (15-19 years of age). Enjoy a high quality meal
without the mess of making it themselves. The customers
are happy with the prices (P100 and below).
 Retail or Service Location

Our business address will be located at an

allocated space in the Yuchengco Building,
inside the campus of De La Salle University
campus, with an estimated seating capacity of
50-75 persons.
 Promotion Strategies

 Sales and direct marketing

 Advertising
 Publicity and public relations
 Sales promotion
 DIRECT MARKETING STRATEGIES:

Room to room promotion and personal invitation

Thru Flyers given at different student entrance of the

campus.

And by posting at the intranet for student and

faculty announcements
Promotional Goals will be
focused on:
 Sales Force

 Sales Promotion

 Increase in awareness
 Sales Force
Our sales force will be the students taking their
Practicum hours who will be assigned for the outlet
of the Solomon Guest House in DLSU campus.

Since SGH will be a new food establishment

offered in the campus, assigned sales force will be
3-5 staff per shift. There are qualified for marketing
SGH as they have taken sales and marketing as a
major subject in the classroom and have passed.
 Sales Promotions
Consumer-oriented

Quarterly features in DLSU school newsletter,

banner ads in the DLSU website (intranet), flyers,
tarpaulins, publication magazines

Direct Marketing
During significant events SGH will ensure it’s
presence felt by setting up booths around the
campus.

 We will make it known that every term we have

new dishes to offer

 We will ask and invite celebrity alumnus to

grace the opening day to attract attention
Publicity Strategies: Grand Opening
-For the opening day, the establishment we will have
balloons, invite the DLSU president, Deans, board
directors.

-We will offer sample tasting on plates outside the

restaurant for the people passing by the restaurant.

-Spread the word Campaign:

•Thru the students by inviting their parents and friends

•Parade of chefs and service team
•Give away free meals
•Have a cooking competition with DLSU students
vi. SGH Management and
Personnel
Management Organization Chart proposal for DSLU SGH branch
 DLSU-SGH will directly be under the DLS-CSB
school of Hotel, Restaurant, and Institution
Management. Full Time Faculties (with a master
degree in education for their field of track, one for
the kitchen and another for the service will be
present during peak hours of operation.

Staff will be the DLS-CSB students of HRIM

taking specialization in Culinary and Hospitality
management. The screening of the student staff is
done by the Faculty coordinators of each
restaurant department.
vi. Financial Projections
Projected Financial Statements
 Opening day balance sheet

 Projected income statement

 Projected cash flow

 Forecasting of Expenditures

The previous trimester % base on sales plus prevailing inflation rate) for
each variable expense are first determined.

EXAMPLE: Electricity for a month is 34,000 and sales for

That period is P400,000.

Therefore the corresponding % is P34,000 / P400,000 X 100 is equal

to
8.5 %. We would multiply this percentage to the projection for that
period to get the budget for that particular variable expense. Variable
expenses are expenses which would be behave directly proportional to
sales. If sales increase variable expenses also increase.
 Opening Day Balance Sheet
Assets Liabilities
Current Assets Current Liabilities
Cash (working capital) 916,300.00 Current portion of long-term debt
Supplies Total Current Liabilities
Prepaid Expenses 9,000.00
Long-Term Liabilities
Inventory 257,450.00
Note Payable
Total Current Assets Less: Current Portion
1,082,750.00 Total Long-term
Fixed Assets
Total Liabilities
Furniture / Fixtures 80,000.00
Machinery / Equipment 492,000.00
Renovation 40,000.00
Equity 1,694,750.00
Total Fixed Assets 612,000.00
Total Liabilities & Equity

Total Assets 1,694,750.00

 Projected Income Statement
Sales For planning purposes, compute the
Cost of Goods Sold following:
Beginning Inventory
Purchases Net Profit
Freight Less: Income Taxes
Ending Inventory
Less: Loan Principal
Cost of Goods Sold
Add: Depreciation
Gross Margin
Net Cash
Expenses
Officer’s Salary
Employee Wages
Accounting / Legal
Advertising
Rent
Depreciation
Supplies
utilities
Telephone
Interest
Repairs
Texas
Insurance
Miscellaneous
Credit card fees
Dues / Subscriptions
Total Expenses 1,695,250.00
Net Profit
Income Taxes
Net Profit after Taxes
PROJECTED CASH FLOW
 Forecasted Future Sales
SY 2007-2008, 2008-2009, and 2009 2010

SY 2006-2007-----P2,504,123.80 gross sales

SY 2007-2008-----P3,048,196.82 gross sales

SY 2008-2009-----P3,786,182.09 gross sales

SY 2009-2010-----P4,657,003.97 gross sales

 PROJECTED INCOME STATEMENT-CASH FLOW

SALES 4,657,003.97

Cost of Goods (40%) 1,867,801.59

Gross Margin P 2,794,202.30

EXPENSE
Working 916,300.00
Fixed 778,950.00

Total expense P 1,695,250.00

Net profit before taxes P 1,098,952.31

 Financing

Budget and Finance of forecasted expenses are

included in the forecasting and planning for the
activities and other needs for the program of
SHRIM CAPEX for the next school year. That
includes budget and expenses for the Solomon
Guest House Restaurant.
The Solomon Guest House history comparative
Sales for SY 2006-2007 and SY 2007-2008
 DE SALLE COLLEGE OF ST.BENILDE

THE SOLOMON GUEST HOUSE

COMPARATIVE SUMMARY OF
SALES
SY 2006-2007 VS. 2007-2008

(a) (b) (a-b)

MONTH SY 2006-2007 SY 2007-2008 DIFFERENCE

JUNE 243,685.00 269,994.00 26,309.00

JULY 175,017.00 317,609.00 142,592.00

AUGUST 175,973.00 196,122.00 20,149.00
SEPTEMBER 120,635.00 130,992.00 10,357.00

OCTOBER 290,705.00 307,231.00 16,526.00

NOVEMBER 200,780.00 212,204.00 11,424.00

DECEMBER 100,124.80 209,730.00 109,605.20

JANUARY 210,982.00 266,830.00 55,848.00

FEBRUARY 290,467.00 338,094.00 47,627.00

MARCH 300,067.00 358,455.15 58,388.15

APRIL 195,688.00 235,964.67 40,276.67

MAY

JUNE 200,000.00 234,971.00 34.791.00

2,680,123.80 2,905,726.60 225,602.80

profit
FINANCIAL COMPARISON AND
ADJUSTMENTS

COLLEGE OF SAINT BENILDE SGH

VS
DE LA SALLE UNIVERSITY
 I included the costs and profit history of DLS-
CSB SGH to give you an idea how I forecasted the
expense and sales profits for the DLSU-SGH branch.

I calculated the forecast for the DLSU-SGH

branch by an additional 20% increase per school
year at the minimum in all aspects for the reason
that the DLSU population is double of the DLS-
CSB.
The following financial figures from
DLS-CSB SGH are from the
accounting history records.
 The following forecasted budget and financial data for
the future DLSU-SGH were derived from the original
accounting history records of DLS-CSB SGH, but 20%
increase in sales are included in the summary.

The budget and financial forecast for the starting

operating expense to open DLSU-SGH are also included.
SGH will be granted an existing location therefore operating
expenses covered are for the internal and interior needs
and overhead costs for the restaurant operation.
DE LA SALLE UNIVERSITY
THE SOLOMON GUEST HOUSE
FORECAST OF SALES
SY 2009-2010 and 2010-2011

(a) (b) (a-b)

MONTH SY 2009-2010 SY 2010-2011 DIFFERENCE

JUNE 687,370.00 545,988.00

141,382.00
JULY 400,034.00 343,912.00 56,121.50

AUGUST 601,946.00 419,444.00 182,502.00

SEPTEMBER 281,270.00 678,564.00 397,294.00

OCTOBER 641,410.00 629,462.00 11,948.00

NOVEMBER 473,560.00 961,668.00 488,108.00

DECEMBER 238,249.60 419,460.00 181,210.40

JANUARY 473,964.00 533,660.00 59,696.00

FEBRUARY 678,934.00 685,389.56 6,455.56

MARCH 642,134.00 729,910.30 87,776.30

APRIL
241,376.00 471,929.34 230,553.34

5,360,247.60 6,419,387.70 1,059.140.10

profit
SEE ATTACHED EXCEL FINANCIAL

DATA SHEETS FOR DETAILS.

vii. CONCLUSION
• Solomon Guest House Outlet inside DLSU
campus will be very feasible as a restaurant
outlet inside the campus of DLSU.

• ROI could be achieved minimum of 1 ½ years

and maximum of 2 years in operation.

• Take-out delivery within the campus, was not

included in the forecast. However this will
contribute another 10% sales of the restaurant.
MARKETING PROPOSAL FOR THE
SOLOMO GUEST HOUSE

BY

FRANCISCO Q. LICHAUCO JR.

 A study submitted in partial
fulfillment of the
requirements for the degree of
Hotel, Restaurant and
Institutional Management

De La Salle-College of
St.Benilde
October 25,2008