Marielle Lopez
San Leandro DECA Chapter
San Leandro High School
2200 Bancroft Ave.
San Leandro, CA 94577
February 28, 2015
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Table of Contents
I. EXECUTIVE SUMMARY
Page 1
II. DESCRIPTION AND ANALYSIS OF THE BUSINESS SITUATION
Pages 2- 4
Page 2
B. Introduction: type of business, brief description of major product(s)/service(s) involved Page 2
A. Rationale and marketing research
C. Self-analysis: actual personal experience and/or training in proposed field
Page 3
D. Analysis of the business opportunity, customer and location: geographic, demographic
and economic analysis of trading area, customer and locale of proposed business
Page 3
E. Proposed organization: type of ownership, steps in starting to form business,
planned personnel,
management knowledge and skills
Page 4
III. PROPOSED MARKETING/PROMOTION PLAN
Pages 4 - 7
A. Proposed product or service: details of product(s) or service(s) to be offered;
potential suppliers or manufacturing plans
B. Proposed pricing policy: costs, markups, relationship to competitors
C. Personal promotion: non-media sales plan, staffing and merchandising appeal
D. Non-personal promotion: media, basic appeal and initial promotion plan
E. Place: channel of distribution from manufacturer or service provided to consumer
IV. PROPOSED FINANCING PLAN
Page
Page
Page
Page
4-5
5
6
6
Page 7
Pages 7 - 11
A. Projected income/cash flow statement: projected budget describing income
and expenditures for the first year
B. Projected three-year plan: describe planned growth, including financial resources and
Page 7-8
needs
Page
C. Capital and repayment plan: earnings, short-term and/or long-term borrowing, long-term
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equity, plan to repay borrowed funds or provide return on investment to equity funds
Page 10
V. BIBLIOGRAPHY
Page 10
VI. APPENDIX
Page 11
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I. EXECUTIVE SUMMARY
Description and Analysis of Business
Jollibee is a Filipino-based franchise that originated in
the Philippines. Having opened more than 200 locations
worldwide, Jollibee has made a name in countries like the USA,
Kong, Dubai, and much more. These restaurants have been
strategically placed to attract the opportunity of Filipinos in that
area. In the USA, almost all of the most Filipino concentrated
areas have a Jollibee, except for Chicago, Illinois.
Jollibee’s menu ranges from traditional Filipino foods
like pancit canton and Halo-Halo, to fast food with a filipino
twist, like Chicken Joy and Jolly Spaghetti.
Business Opportunity
● Filipinos are the fourth largest ethnic group in Chicago, more concentrated in Northwestern Chicago.
● Approximately 83% of the US consumers dine at food restaurants at least once a week.
Business Situation
There is an open restaurant space for lease in the Rogers Park community of Chicago, Illinois. This
space is within close proximity to downtown Chicago, and is relatively close to the Filipino communities that
have Filipino organizations, grocery stores, and restaurants.
Proposed Promotion Plan
● Partnerships with local stores
● Involvement of local Filipino organizations
● Use of a globally-known Filipino television channel
Proposed Financing Plan
The proposed business will require a start-up capital of $402,766. This start-up will cover all onetime costs including renovation of the restaurant, appliances, and licensing. It will also cover the monthly
expenses for the first three months. The funds will be achieved through a loan from an investor. The loan
will be repaid throughout a 10-year period with 5% interest.
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II. DESCRIPTION AND ANALYSIS OF THE BUSINESS SITUATION
A. Rationale and marketing research
Filipino-Americans make up the fourth largest ethnic group in Chicago, Illinois. Approximately 5.81
percent of the 2,702,471 inhabitants are of Filipino descent. Moreover, the immigration of Filipinos in
Chicago is still increasing and nationwide, this ethnic group is making up more than eight percent.
Jollibee is a thriving, internationally recognized Filipino fast food chain. The fast food chain industry
is rising up in its percentages as the lives of people are getting busier. While heavily populated in the United
States, especially in California, there is no Jollibee yet in Chicago, the fourth highest populated area of
Filipinos.
Curiosity over this phenomenon of foreign foods has been increasing along with the percentages in
the country. Especially with its 750 recognized restaurants worldwide, there is no doubt that one has not
heard about Jollibee.
B. Introduction
Worldwide, Jollibee owns and franchises 750 restaurants. With a majority of their stores in the
Philippines, they have expanded their franchises to the USA, Vietnam, Hong Kong, Saudi Arabia, with much
more. The restaurant offers a variety of typical American fast foods tailored with a Filipino twist. Their most
popular products are the Chickenjoy, spaghetti, and bucket treats. They also sell classic Filipino merienda, or
midday meals - a meal between lunch and dinner. Their brand is mainly represented by their mascot,
Jollibee, who is a happy red bumblebee that has legs. Each restaurant generally has the same style: red and
orange colorways, modern looking chairs, and decor and pictures of happy children and families enjoying
Jollibee on the wall. A well-known part of Jollibee’s brand is the birthday party services. Most stores have a
reservable area in the store which is used for children’s parties, allowing Jollibee to become a part of a
Filipino family’s tradition.
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C. Self-analysis
Investing with me, you invest in a young entrepreneur with experience in creating her own business
plans, marketing proposals, and evaluating business law, financial records, and ethics. As a Filipina, I’ve
been exposed to Jollibee from a young age. I’m familiar with its products, marketing, and business ventures.
I have connections with people who have opened similar franchises in the Filipino market. The Filipino
community in Chicago is very closely-knitted, having many Filipino associations and organizations within
one city. I plan to start university in Chicago this upcoming school year and I will be able to own and operate
this franchise starting in the beginning of 2016.
I have studied restaurant and food service management while participating DECA. Because of this, I
have knowledge and already know the possible issues that can arise while trying to maintain a fast food
restaurant. In addition, I’ve taken part in opening the very first student store at my high school, working as
the manager. I can maintain cash flow and supervise areas and I am passionate about running a profitable
and unique business.
D. Analysis of the business opportunity, customer and location
The target market of Jollibee is Filipino-American families with middle-class income that live in or
travel daily to the Northwest sides of metropolitan Chicago. The median income for a Filipino household in
Chicago is $73,000. The best place to open a Filipino franchise is to open it in a very-known Filipino area,
where there are groups of Filipinos have formed their own culture based community. In Chicago, that area
would be in the North and Northwest areas, in a plaza where another Filipino restaurant is located. There
would be no competition between the current Filipino restaurants and Jollibee because they are entirely
different businesses. This area is easily accessed by the Chicago Metro. The demographics of the average
Filipino family would consist of at least four family members. Ranging from ages 3 to 65, this family eats
Filipino meals at least two times a week because they like having close ties with their cultural background.
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E. Proposed organization
I’d like to open this Jollibee franchise as a sole proprietor . The reason why I’ve decided on opening a
sole proprietorship is because it allows me to have full custody of my franchise, as well as holding 90-100%
of its stocks. In addition to this ownership, I am waived from special taxes. I understand that I will have
unlimited liability and I plan to take full responsibility of the profits of the franchise.
A few years after Jollibee Chicago’s opening, I plan to convert the sole proprietorship into a limited
liability company with master ownership. If it’s a successful franchise, then I will be able to distribute the
shares and the business will be protected from any possible blunders.
Opening a Jollibee requires a lot of patience as it is a long process. An application is to be first filled
out and submitted to the Jollibee corporation. The franchisee must have the power to fund approximately
$450,000 - $800,000 for the initial investment, while paying 5% of royalty fees.
III. PROPOSED MARKETING/PROMOTION PLAN
A. Proposed product or service
As a franchiser of Jollibee, it’s important that I implement all of the trademarks to fulfill its
international legacy. Their menu for their international franchises are extensive, but I’d like to highlight the
main aspects of Jollibee’s menu.
Most Popular Food
Beverages
Desserts
Chicken Joy w/ 2 sides
Fountain Drinks
Halo Halo (Shaved ice with
condensed milk, and toppings)
Jolly Spaghetti
Iced Tea
Fruit Pies (Small hand pies with
two flavors: mango and banana)
Bucket Treats (10 pieces & sides)
Jollibee Chicago will also keep Jollibee’s birthday party services. This will show the
community of Chicago that the restaurant wants to be apart of their family traditions and memories.
Jollibee’s brand will be kept throughout birthday party services as the mascot Jollibee will be taking part as
well.
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B. Proposed pricing policy
Jollibee has a reputation for serving high quality food at a reasonable and very convenient price. The
table below shows just a few examples of Jollibee’s menu prices compared to mainstream competitors.
Jollibee’s'
Item
Price for
Item
Competition 1
Comp 1
Item
Difference +/-
Competition 2
Comp 2
Item
Difference
+/-
Chicken Joy
(2 pcs, 2
sides)
5.99
KFC (2 pcs 2
side)
$8.25
$2.26
Popeyes (2pc
2side)
$7.89
$1.90
Spaghetti
4.5
Olive Garden
12.49
7.99
Cheesecake
Factory
$13.49
$8.99
4.99
Loards (One
scoop)
$5.50
$0.51
$16.99
KFC (variety
bucket)
$17.99
$1.00
Halo Halo
Bucket
Treats
C. Personal promotion
Every time a customer enters the restaurant, an employee on duty will always be able to greet that
customer politely, and suggest that they will be happy to serve them once they are
ready to order. As soon as their order is placed, the customer may find a table to sit,
or can sit in a designated waiting area for takeout orders. All employees should
reflect hospitality. The employees are to enter the restaurant fully dressed in their
conservative uniform (an example of their work polo is shown to the right).
Other promotional activities will include partnerships with other Filipino
businesses in the area. The Uni-Mart One Stop Shopping grocery store is willing to partner with the
restaurant and will feature Jollibee advertisements in their weekly catalogs, as long as Jollibee Chicago
advertises their business as well. The grocery store will also give away Jollibee coupons to customers if they
purchase groceries at a certain amount. Discounts for birthday party rentals will be available upon using a
promo code featured on fliers that are posted around Northern Chicago.
D. Non-personal promotion:
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Since the main target market is people of Filipino background, then the best way to use media to
promote this new Jollibee in Chicago is to promote it on Filipino media. TFC (The Filipino Channel) is the
most common television channel watched by Filipinos around the globe. The latest updates of Filipino
happenings are constantly forecasted on this channel, and it’s the easiest way to broadcast the grand opening
of Jollibee Chicago. This location is predicted to have sponsors from not only local businesses, but from
international businesses as well.
The initial promotion plan for the grand opening will include guest speakers from the Jollibee
corporation. Also, members of FAN - The Filipino American Network of Chicago, will be welcomed to
speak about the integration of a highly demanded restaurant in their city. This group, along with the rest of
the Filipino community in Chicago, have been requesting a Jollibee in their city for many years.
E. Place
The distribution channel is limited to in-location purchases, mainly consisting of direct transactions
between the cashiers to the customer. However, customers do have the option of contacting the restaurant via
telephone, where they can have their order taken so it can be ready by the time they come to pick it up.
Another telephone option would be to inquire upon or reserve the party room.
Prior to serving the customers, the supplies and inventory for the food will come from local vendors,
to ensure freshness and healthiness through an exclusive distribution process. They will be delivered from
the agricultural site to the restaurant through freight trucks, and will then be converted into delicious meals
for the customers.
IV. PROPOSED FINANCING PLAN
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A. Projected income/cash flow statement:
The table below showcases the start-up costs for this business, which is estimated to be
approximately $400,000. This start-up covers the finances and supply for the first three months of opening
the restaurant, already including employee salary, insurance, and loan repayment. The initial one time-costs
cover the finished look of the restaurant, the grand opening, and restaurant licenses specifically for the city of
Chicago.
Monthly Costs
Salary of owner-manager
All other salaries and wages
Rent
Advertising
Delivery expense
Supplies
Telephone
Other utilities
Insurance
Taxes, including social security
Interest
Maintenance
Legal and other professional fees
Subtotal
One-Time Costs
Fixtures and equipment
Decorating and remodeling
Installation charges
Starting inventory
Deposits with public utilities
Legal and other professional fees
Licenses and permits
Advertising and promotion for opening
Other
Subtotal
Total Estimated Start-Up Capital
Monthly
Cash
Expenses Needed to Start
$5,000
$36,000
$5,000
$2,500
$1,000
$830
$200
$2,500
$84
$506
$7,548
$208
$100
$61,476
$15,000
$108,000
$15,000
$7,500
$3,000
$2,490
$600
$7,500
$84
$2,024
$22,644
$624
$300
$179,766
Cash
Needed to Start
$60,000
$100,000
$15,000
$10,000
$5,000
$6,000
$2,000
$15,000
$10,000
$223,000
$402,766
% of
Total
2.5%
26.8%
3.7%
1.9%
0.7%
0.6%
0.1%
1.9%
0.0%
0.5%
5.6%
0.2%
0.1%
44.6%
% of
Total
14.9%
24.8%
3.7%
2.5%
1.2%
1.5%
0.5%
3.7%
2.5%
55.4%
100%
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The projected income sales for the first year is $1,052,609. After subtracting the start-up costs and the
total amount of expenses, Jollibee Chicago is expected to reach a net profit of $186,878 within the first year.
One Year Plan
1st Quarter
2nd Quart
3rd Quart
4th Quart
Yearly Tot
Income Sales
$263,152
$263,152
$263,152
$263,152
$1,052,609
Net Sales
$263,152
$263,152
$263,152
$263,152
$1,052,609
Cost of Goods Sold
$75,000
$75,000
$75,000
$75,000
$300,000
Gross Profit
$188,152
$188,152
$188,152
$188,152
$752,609
Term Loans
start up
$22,644
$22,644
$22,644
$67,932
Salary/Owner&EE
start-up
$15,000
$15,000
$15,000
$45,000
Advertising
start-up
$7,500
$5,500
$2,500
$15,500
Telephone
start-up
$600
$600
$600
$18,000
Supplies
start-up
$2,500
$2,500
$2,500
$7,500
Insurance
start-up
$336
$336
$336
$1,008
Repairs
&Maintenance
start-up
$625
$625
$625
$1,875
Legal and Accounting start-up
$300
$300
$300
$900
Damage and Claims
start-up
$150
$150
$150
$450
Start Up cost
$402,766
$0
$0
$0
$402,766
Miscellaneous
start-up
$100
$100
$100
$300
Lease (water, electric) start-up
$1,500
$1,500
$1,500
$4,500
Total Expenses
$402,766
$51,255
$49,255
$46,255
$565,731
Net Profit Before
Taxes
-$214,614
$136,897
$138,897
$141,897
$186,878
Expenses
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B. Projected three-year plan
Over the course of three years, I hope to see Jollibee Chicago thrive as a business. It has a lot of
potential due to its precise organization. As the number of sales increase due to popular demand, the
overhead costs will also increase due an increase in productivity.
Yearly Plan
Year One
Year Two
Year Three
Income Sales
$1,052,609
$1,240,000
$1,640,000
Net Sales
$1,052,609
$1,240,000
$1,640,000
Cost of Goods Sold
$300,000
$400,000
$550,000
Start-Up Capital
$402,766
$0
$0
Gross Profit
$349,843
$840,000
$1,090,000
Term Loans
$67,932
$70,000
$70,000
Salary
$45,000
$50,000
$60,000
Advertising
$15,500
$15,500
$16,000
Telephone
$18,000
$18,000
$19,000
Supplies
$7,500
$14,000
$17,000
Insurance
$1,008
$2,500
$2,500
Repairs and Maintenance
$1,875
$2,500
$3,000
Legal and Accounting
$900
$3,000
$3,500
Damage and Claims
$450
$750
$1,000
Miscellaneous
$300
$700
$800
Lease (water, electric, etc.)
$4,500
$8,000
$10,000
Total Expenses
162,965
$187,950
$202,800
Net Profit Before Taxes
$186,878
$652,050
$887,200
Expenses
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C. Capital and repayment plan
As shown in Section 4A, opening Jollibee Chicago will require a start-up capital of $406,305. With a
limited credit history but a burning passion, I am requesting to borrow a loan of $600,000. From my
proposed three year plan, the restaurant would be able to break even during its second year of operation;
however, considering that the profit from one year will be implemented into the operation of the second year,
then the loan should be paid back within 10 years at maximum at 5% interest.
V. BIBLIOGRAPHY
Kudan, Jeremny. "1637 Howard St., Chicago, IL 60626." LoopNet. MarkMonitor Inc., Nov.-Dec. 2014. Web. 14 Jan.
2015. <http://www.loopnet.com/Listing/18982434/1637-Howard-St-Chicago-IL/>.
"Retail Food Service." City of Chicago. City of Chicago, n.d. Web. 14 Jan. 2015.
<http://www.cityofchicago.org/city/en/progs/inspectionspermitting/retailfood.html>.
Pace, Gina. "Can You Afford to Open a Restaurant?" Inc.com. Network Solutions, LLC, Nov.-Dec. 2011. Web. 4 Jan.
2015. <http://www.inc.com/articles/201111/business-start-up-costs-restaurant.html>.
Mullis, Stuart. "Running a Restaurant/Costs of Running a Fast Food Restaurant." Running a Restaurant: Costs of
Running a Fast Food Restaurant, Fast Food Restaurant, Gas Electricity. CSC Corporate Domains, INC, July-Aug.
2007. Web. 30 Dec. 2014. <http://en.allexperts.com/q/Running-Restaurant-2285/Costs-running-fast-food.htm>.
Jennings, Rob. "Can You Change a Sole Proprietorship to an LLC?"LegalZoom: Legal Info. Register.Com, INC, n.d.
Web. 15 Jan. 2015. <http://info.legalzoom.com/can-change-sole-proprietorship-llc-4341.html>.
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VI. APPENDIX
The area and proposed rent space for the restaurant.
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