Starting a Business: Home Baked Pandesal

Pandesal is a Spanish word for “salt bread”. It is a rounded bread usually eaten by Filipinos during breakfast. It is made of flour, eggs, lard, yeast, sugar, and salt. It has a soft, powdery texture, and is eaten in several ways combined with sandwich spreads. Despite the literal meaning of its name, the taste of pandesal varies from bland to slightly sweet.

  1. ESTIMATED INVESTMENT COSTS
    1. Cost of Utensils
      • Measuring cups/spoons (plastic or stainless steel – P70.00
      • Spatula – P49.00
      • Stainless bowl #32 (2pcs) – P260.00
      • Dough cutter – P53.50
      • Plancha – P64.75
      • Subtotal = P522.75
    2. Equipment
      • Weighing scale – P379.00
      • Dough kneader – P83,853.00
      • Oven (8 planza thermostat) – P45,738.00
      • Working table – P15,246.00
    3. Raw Materials/Ingredients
      • Bread Flour 100/30kg – P1,128.00
      • Water 55/500g –
      • Refined Sugar 18/120g – P186.00
      • Vegetable shortening 5/50g – P84.00
      • Salt 1/10g – P60.00
      • Instant Yeast 19/7g – P45.00
      • Bread Crumbs .25g – P45.00
      • Sub-Total = P1,572.00
      • Estimated Total Investment Cost – P147,310.75
  2. PROCEDURE

    One of the methods in bread making is the straight-dough method. The procedures are simple and can be done in your own home.

    1. Preheat oven at 175C.
    2. Mix all ingredients.
    3. Knead the dough, place in a bowl, cover with damp cheesecloth and leave for two hours.
    4. Punch the dough to remove air.
    5. Divide the dough into 16 equal portions (about 550g per piece)
    6. Form each dough piece with an approximate length of 30 inches and roll in breadcrumbs
    7. Rest the dough for 45 minutes.
    8. Cut dough into 20 equal portions (about 27.5 per piece)
    9. Roll in breadcrumbs and arrange on baking trays in cut side manner.
    10. Proof until double in size in warm and moist proofing cabinet (about 32-34C with 85% relative humidity).
    11. Bake for 12-15 minutes or until golden brown.
  3. ESTIMATED COST AND PRICING
    1. PRODUCT COSTING
      • Direct Cost
        • Raw Materials (30kg flour) – P1,128.00
        • Ingredients used – P444.00
        • Total Direct Cost per Kg = P1,572.00
      • Indirect Cost
        • Labor Cost (382/day) – P382.00
        • Transportation Cost – P100.00
        • Water and Electricity – P100.00
        • Contingency Cost 10% – P157.00
        • Total Indirect Cost per Kg = P739.00
      • Production Cost
        • Total Direct Cost – P1,572.00
        • Add: Total Indirect Cost – P739.00
        • Total over the 2,700 pcs yield – P2,311.00/2,700
        • Production Cost per Kg – P0.86
      • *Finished product will result in 2,700 pcs of pandesal.
    2. PRODUCT PRICING
      • Production cost per kg – P0.86
      • Add: 10% markup of the production cost – P0.09
      • Selling Price per piece – P0.95
      • Market Price per Piece – P1.00

*The higher the volume of production per day (i.e more than 2,700 pcs.) the lower the production cost, thus increasing the markup to more than 10%.

If the price per kg is lower compared with the existing market place, increase the markup to more than 10%.

Source: www.DTI.gov.ph

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