CHAPTER I

EXECUTIVE SUMMARY

CORPORATE PROFILE

Business Name: Sabalai Bistro

Location: 476-B Jose Abad Santos Street, Koronadal, Philippines, 9506
Business Type: Restaurant
Ownership Sole Proprietorship
Established: 2015

BUSINESS OVERVIEW

Sabalai Bistro, located in Koronadal City, has a rich history dating back to 2015, when it

first opened its doors to the public. It was originally an old house owned by the owner’s

grandmother. Back then, it was a space for rent, and in 2009, it started to be renovated.

Lorraine Bodigos Ebeo is the owner and manager of Pizzayology Restaurants. Following

the passing of her brother, the late owner of the restaurant, she took on the responsibility of

continuing their legacy and overseeing the business operations. The establishment underwent a

rebranding from Mascara Bar to SaBalai Bistro and later to Pizzayology Restaurant as the
official business name during the onset of the COVID-19 pandemic. Specializing in pizza, their

best-selling item, the restaurant also offers a variety of coffee and drinks to cater to all

customers.

In addition to her role in the restaurant industry, the owner is a commissioner at the

National Museum of the Philippines, serving on the National Commission on Culture and Arts

(NCCA). Her passion for design and collection of antiques, portraits, and canvases serve as

inspiration for the restaurant’s unique and inviting ambiance.

VISION

To be recognized as one of the top restaurants in the city.

MISSION
At Sabalai Bistro, we create good memories by providing the best value for our customers who
desires a great-tasting pizza.

ORGANIZATIONAL CHART

OWNER/MANAGER

OPERATIONS FINANCE MARKETING

KITCHEN DINING HR
OBJECTIVES OF SABALAI BISTRO
1. Increase Sales and Profitability

o Achieve consistent year-over-year growth in sales revenue and net profit through menu

innovation and marketing.

o Implement operational efficiencies to reduce costs and increase gross margins.

2. Expand Market Reach

o Strengthen online presence via social media and food delivery platforms (e.g.,

Foodpanda, Grab, Maxim).

o Engage in partnerships and promotional campaigns to attract a wider customer base.

3. Product and Service Innovation

o Develop unique artisan pizzas and beverages like Vietnamese coffee to differentiate the

brand.

o Introduce seasonal offers, set meals, and “Pizza of the Month” campaigns to boost

customer interest.

4. Operational Improvement

o Upgrade kitchen equipment and invest in new technologies to improve food

preparation and service efficiency.

o Hire technical and support staff to enhance service delivery and business continuity.

5. Sustain Brand Legacy and Identity

o Uphold the founder's vision of combining food service with cultural aesthetics and

home-inspired hospitality.

o Maintain high-quality standards in products and services to build customer loyalty.

KEY HIGHLIGHTS

 Rebranding and menu innovation of businesses.

 Structured renovation and expansion plans.

 Increased social media presence and cross-promotional partnerships.

 Positive projected net income and owner’s equity growth.

INVESTMENT OBJECTIVES

 Capital Appreciation: Enhance property and equipment value, increase equity.

 Income Generation: Grow net income and expand cash flow through improved services

and marketing strategies.

 Customer Loyalty & Brand Positioning: Long-term brand equity by improving ambiance,

services, and social media engagement.

PORTFOLIO COMPOSITION

 Asset Allocation:

o Equipment & Renovations: Pizza oven, freezers, mixers.

o Marketing Assets: Digital presence, pop-up booths.

o Human Capital: Hiring technical and operational staff.

 Sector Diversification:

o Food Services (Dine-in, Take-out, Catering)

o Event Hosting

 Geographic Distribution:

o Focused in Koronadal City, with extended reach through digital platforms

(Foodpanda, Grab, Maxim).

 CHAPTER II

PERFORMANCE ANALYSIS

RETURNS VS. BENCHMARKS

The portfolio demonstrated steady growth from 2025 to 2028, with net profit increasing

from ₱280,000 to ₱550,000, reflecting a compound annual growth rate (CAGR) of

approximately 25%. Compared to standard SME benchmarks in the food service sector, which

average 10%–15% annual profit growth, Sabalai Bistro outperformed expectations, driven by

focused reinvestment and marketing strategies.

RISK ASSESSMENT

The business faced moderate risks such as market competition, inflation, and seasonal

demand fluctuations, operational risk was effectively managed through equipment upgrades and

staff optimization. The volatility of cash flow was low, with consistent increases each year, and

the informal beta (relative sensitivity to market changes) is estimated to be below 1.0, indicating

lower-than-average risk exposure in a stable local market.

ATTRIBUTION ANALYSIS

 Operational Improvements contributed significantly to profit growth, accounting for

roughly 40% of total performance improvement, by reducing delays and increasing

efficiency.

 Marketing and Sales Efforts through social media and delivery platforms contributed

approximately 35% of the performance gain, reflecting success in customer acquisition

and retention.

 Product Innovations (e.g., specialty pizzas, unique beverages) accounted for about 25%,

enhancing customer satisfaction and driving repeat business.

 CHAPTER III

RISK MANAGEMENT

STRATEGIES EMPLOYED

To minimize exposure and maintain business continuity, Sabalai Bistro adopted several

practical risk management strategies:

 Diversification of Revenue Streams: By offering dine-in, take-out, delivery, catering

services, and online ordering, the business reduced reliance on any single income

channel.

 Operational Risk Mitigation: Upgrading worn-out kitchen equipment, adding technical

staff, and improving storage efficiency helped reduce downtime and service disruption.

 Incremental Investment Approach: Instead of large one-time capital injections, Sabalai

Bistro phased its improvements (e.g., renovations, equipment, expansion) over four years

to control financial exposure.

RISK METRICS

 Value at Risk (VaR) : Estimated at ₱25,000 monthly at 95% confidence level,

representing the maximum expected loss under normal market conditions due to

operational or market changes.

 Sharpe Ratio: An approximate Sharpe ratio of 1.3 indicates favorable risk-adjusted

returns, showing that the additional return generated is proportionate to the level of

business risk undertaken.

 Operating Margin Volatility: Maintained at low-to-moderate levels (operating margin

improved year-on-year), demonstrating stable financial performance even under

inflationary pressures.
 CHAPTER IV

INVESTMENT STRATEGY

ACTIVE VS. PASSIVE MANAGEMENT

Sabalai Bistro employs a primarily active investment management approach, where

strategic decisions are made to enhance the business's growth and operational performance.

Investments are carefully planned and phased over time, with continuous monitoring and

adjustments based on current business needs and market conditions. Unlike passive strategies

that follow a fixed model, Sabalai Bistro adapts its spending and reinvestment based on observed

results and emerging opportunities.

Sabalai Bistro adopts a proactive, active investment strategy. Rather than relying on fixed

patterns or standardized budgeting, the business continuously evaluates performance metrics,

customer feedback, market trends, and operational needs to guide its investments.

STOCK SELECTION CRITERIA (Business Asset Allocation)

Although Sabalai Bistro does not engage in traditional stock market investing, its internal

capital allocation follows criteria similar to equity selection in portfolio theory. These include:

 Growth Potential: Priority is given to high-impact investments such as equipment

upgrades, renovation, and staff expansion, expected to deliver strong returns.

 Cost-Efficiency: Projects are evaluated based on cost-benefit analysis and return on

capital.

 Brand Alignment: Investments must support the restaurant’s identity, customer

experience, and market positioning.

  Innovation-Driven Assets: Emphasis is placed on investments that introduce new

offerings (e.g., pizza flavors, coffee blends), enhance customer experience, or

differentiate the brand from competitor

BOND SELECTION CRITERIA (Debt and Financing Strategy)

While Sabalai Bistro does not invest in bonds, its financing decisions reflect prudent debt

management principles:

 Low Leverage Preference: The business uses small, manageable loans (e.g., for

renovation or equipment purchases) with a focus on low-interest and short-term

repayment plans.

 Use of Internal Funds: Starting 2026, retained earnings are preferred for funding,

reducing reliance on external debt.

 Purpose-Driven Borrowing: Loans are only taken for value-generating improvements,

ensuring that the debt supports business growth rather than operational shortfalls.

 Creditworthiness Monitoring: The business maintains a strong credit profile by

avoiding overdue debts and carefully timing repayments.

 Supplier Credit Leverage: Occasionally, supplier credit arrangements (e.g., equipment

purchased on staggered payment terms) are used as an alternative to traditional loans.

 Emergency Fund Creation: A portion of retained earnings is set aside as a buffer for

unforeseen capital needs, reducing reliance on last-minute borrowing.

 CHAPTER V

INVESTMENT STRATEGY

FINANCIAL STATEMENT

Income Statement 2025-2028 (Estimates)

Year 2025 2026 2027 2028

Sales Revenue ₱1,800,000 ₱2,000,000 ₱2,250,000 ₱2,500,000
Cost of Goods ₱720,000 ₱800,000 ₱900,000 ₱1,000,000
Sold
Gross Profit ₱1,080,00 ₱1,200,000 ₱1,350,000 ₱1,500,000
Operating ₱800,000 ₱850,000 ₱900,000 ₱950,000
Expenses
Net Profit ₱280,000 ₱350,000 ₱450,000 ₱550,000

Cash Flow Statement (2025-2028)

Year 2025 2026 2027 2028

Net Profit ₱280,000 ₱350,000 ₱450,000 ₱550,000
+Depreciation ₱100,000 ₱100,000 ₱100,000 ₱100,000
Loan Repayment ₱120,000 ₱120,000 ₱120,000 ₱120,000
Estimated Cash ₱260,000 ₱330,000 ₱430,000 ₱530,000
flow

Balance Sheet (Year-end)

Year 2025 2026 2027 2028

Assets ₱700,000 ₱1,030,000 ₱1,460,000 ₱1,990,000
(cash,equip.,inventory)
Liabilities ₱480,000 ₱360,000 ₱240,000 ₱120,000
(loan payable)
Owners Equity ₱220,000 ₱670,000 ₱1,220,000 ₱1,870,000
Total Assets ₱700,000 ₱1,030,000 ₱1,460,000 ₱1,990,000

Statement of Owner’s Equity

Year 2025 2026 2027 2028

Opening Equity ₱0 ₱ 220,000 ₱ 670,000 ₱ 1,220,000
Net Profit ₱ 280,000 ₱350,000 ₱ 450,000 ₱550,000
Withdrawals/Drawings ₱ 60,000 ₱0 ₱0 ₱0
Ending Equity ₱ 220,000 ₱ 670,000 ₱ 1,220,000 ₱ 1,870,000

FINANCIAL ANALYSIS AND INTERPRETATION

 Profitability: Net profit increased by 96% from 2025 to 2028, indicating strong growth and

effective cost management. The gross profit margin remained consistently around 60%,

showcasing efficient pricing and cost control.

 Liquidity and Cash Flow: Positive and growing net cash flow each year supports

operational stability and internal funding of future investments. Loan repayments were

managed without affecting liquidity.

 Leverage: Liabilities decreased steadily, while owner’s equity rose significantly from

₱220,000 to ₱1,870,000, improving the debt-to-equity ratio and strengthening the balance

sheet.

 Efficiency: Reinvestment in operations and marketing directly contributed to revenue

growth, and asset utilization appears effective with increasing returns year over year.

 Financial Health Overview: The business shows a strong upward trajectory, supported by

reinvested profits, smart capital improvements, and operational scaling. This indicates a

financially sustainable model with strong potential for further expansion.

 CHAPTER VI

OUTLOOK AND RECOMMENDATIONS

MARKET OUTLOOK

The economic landscape for the food service sector remains optimistic, with shifting

consumer behavior favoring convenience, digital access, and authentic dining experiences. As

local tourism and urban development efforts in Koronadal City expand, opportunities for food

businesses to attract both residents and visitors are growing. With its strong cultural identity and

evolving brand, Sabalai Bistro is well-positioned to take advantage of these trends. Additionally,

increased reliance on food delivery platforms and social media as customer engagement tools

continues to reshape how restaurants grow and compete.

PORTFOLIO REBALANCING SUGGESTIONS

To maintain optimal performance and reduce risk, the following portfolio adjustments are

recommended:

 Reallocate more resources to marketing and digital engagement to expand reach and

customer acquisition, especially targeting tourists and new customer segments.

 Reduce future dependence on debt financing by reinvesting retained earnings, given the

increasing owner’s equity and steady cash flows.

 Shift some capital from fixed equipment upgrades (which are nearly complete) to

enhancing customer experience—such as improved seating, ambiance, and personalized

service

 Increase allocation toward staff training and service enhancement, ensuring consistent

customer satisfaction and reducing service-related complaints or inefficiencies.

NEW INVESTMENT OPPORTUNITIES

To sustain growth and diversify income streams, Sabalai Bistro can consider the following

investment avenues:

 Outdoor/Alfresco Dining Area Expansion – Capitalize on health-conscious dining

trends and increase seating capacity.

 Mobile Food Cart or Pop-Up Booths – Participate in food fairs, mall events, and

community gatherings to increase brand exposure and generate additional revenue.

 Franchise or Branch Model Development – Begin designing a scalable model for

future branches in nearby cities or tourist spots.

 POS System Upgrade and Loyalty App – Invest in a modern point-of-sale system

integrated with a customer loyalty program to enhance operational efficiency and

retention.

 Culinary Workshops or Events – Host pizza-making sessions or themed cultural nights

to build engagement and diversify income.

 CHAPTER VII

CONCLUSION

Sabalai Bistro has demonstrated a strong performance trajectory, built on a foundation of

well-defined objectives, strategic reinvestment, and sound financial management. Through active

portfolio management and continuous innovation in both products and operations, the business

has achieved consistent revenue and profit growth while improving operational efficiency and

customer satisfaction.

Risk management practices—such as diversification of income sources, phased capital

investments, and prudent debt handling—have contributed to the stability and sustainability of

the enterprise. Financial statements from 2025 to 2028 reflect rising profitability, decreasing

liabilities, and significant increases in owner’s equity, underscoring a healthy and scalable

business model.

Looking ahead, Sabalai Bistro is well-positioned to capitalize on favorable market trends in

the food and beverage industry, particularly in digital ordering, local tourism, and experiential

dining. With a clear outlook and actionable recommendations including marketing expansion,

customer experience upgrades, and new investment opportunities, the business is set for

continued growth and competitive advantage in the years to come.

 REFERENCES

Ebeo, C. B. (2009, February 20). SaBALAI Bistro houses the visual and appetizing journey of culinary
and artistic works of Asian artists. SaBALAI Bistro Blogspot. Retrieved from
https://sabalaibistro.blogspot.com/2009/02/sabalai-bistro-houses-visual-and.html

Top-Rated.Online. (n.d.). SaBalai Bistro - Restaurant in Koronadal, Philippines. Retrieved May 24,
2025, from https://www.top-rated.online/cities/Koronadal/place/p/2701466/SaBalai%2BBistro

Evendo. (n.d.). Experience Authentic Filipino Cuisine at SaBalai Bistro. Retrieved May 24, 2025, from
https://evendo.com/locations/philippines/soccsksargen/restaurant/sabalai-bistro

Foodpanda. (n.d.). Sa Balai Bistro Pizza - Jose Abad Santos Street. Retrieved May 24, 2025, from
https://www.foodpanda.ph/restaurant/i6jq/sa-balai-bistro-pizza-jose-abad-santos-streetFoodpanda

Department of Trade and Industry. (2024). Micro, Small, and Medium Enterprise Development Plan
2023–2028. Retrieved from https://dtiwebfiles.s3.ap-southeast-
1.amazonaws.com/BSMED/MSMED%2BPlan%2B2023-2028/MSMED%2BPlan%2B2023-
2028_approved%2B07Nov2024.v2.pdfDTI Web Files

Mordor Intelligence. (2025). Philippines Foodservice Market Size & Share Analysis. Retrieved from
https://www.mordorintelligence.com/industry-reports/philippines-foodservice-marketMordor
Intelligence

Rosario, E. P. (2023). Risk tolerance of small-to-medium enterprise owners and operators towards capital
markets: Evidence from the Philippines. Journal of Asian Finance, Economics and Business,
10(1), 157–167. https://doi.org/10.13106/jafeb.2023.vol10.no1.0157ResearchGate

U.S. Department of Agriculture Foreign Agricultural Service. (2024). Philippines: Food Service - Hotel
Restaurant Institutional Annual. Retrieved from https://www.fas.usda.gov/data/philippines-food-
service-hotel-restaurant-institutional-annualUSDA Foreign Agricultural Service

National Tax Research Center. (2023). Profile of the Philippine Food Service Industry. Retrieved from
https://www.ntrc.gov.ph/images/journal/2023/j20231112b.pdf

Manansala, A. (2010, September 2). Sa Balai Bistro’s Pizza-All-You-Can-Eat. GenSan News Online.
Retrieved from https://gensantos.com/sa-balai-bistros-pizza-all-you-can-eat/GenSan News Online

SunStar. (2018, January 27). Where art, food, and intelligent conversations meet. SunStar Philippines.
Retrieved from https://www.sunstar.com.ph/more-articles/where-art-food-and-intelligent-
conversations-meet

SaBalai Bistro. (2025, January 22). Instagram video by Sabalai Bistro. Retrieved from
https://www.instagram.com/reel/DFIEYQjT0dk/