Starting a Business: Pandesal

Investment Requirements: (All price are in Php based on 2007 market price.)

• Measuring cups/spoons (plastic or stainless steel) – 152.50
• Spatula – 61.00
• Stainless bowl #32 (2 pcs) – 427.00
• Dough cutter – 53.50
• Plancha – 64.75
• Cheesecloth – 25.50

Subtotal – P 784.25

Equipment:

• Weighing scale (for spices 0-1 kg) – 334.00
• Dough kneader – 83,853.00
• Oven (8 planza-thermostat) – 45,738.00
• Working table – 15,246.00

Subtotal – P 145,171.00

Raw Materials/Ingredients:

• Bread flour (50 kg) – 1,372.00
• Water (27.5 kg)
• Refined sugar (9 kg) – 383.75
• Vegetable shortening (2.5 kg) – 156.50
• Salt (0.86 kg) – 9.00
• Instant yeast (0.38 kg) – 133.50

Subtotal – P 2,054.75

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 175°C (350°F)
2. Mix all ingredients.
3. Knead the dough, place in bowl, cover with damp cheesecloth and leave for two hours.
4. Punch dough to remove air.
5. Divide the dough into 16 equal portions (about 550 grams per piece).
6. Form each dough piece with approximate length of 30 inches per piece.
7. Rest dough for 45 minutes.
8. Cut dough into 20 equal portions (about 27.5 grams per piece).
9. Roll in breadcrumbs and arrange on baking trays in cut side up manner.
10. Proof until double in size in warm and moist proofing cabinet (about 32-34°C with 85% relative humidity).
11. Bake for 12-15 minutes or until golden brown.

Product Costing (average produce of pandesal for 50 kg is 3,260 pcs)

a. Direct Cost:

• Raw materials (50kg flour) – 1,372.00
• Ingredients used for 50 kg – 682.75

Total: P 2,054.75

b. Indirect Cost:

• Labor cost (350.oo/day) – 350.00
• Transportation – 100.00
• Water & electricity – 55.00
• Contingency (10% of direct cost) – 205.47

Total – P 710.47

c. Production Cost:

• Total direct cost – 2,054.75
• Add: Total indirect cost – 710.47
• Total over the 3,260 pcs yield – 2,765.22/3,260.00

Production cost per piece – P 0.84

d. Product Pricing:

• Production cost per kg – 0.84
• Add: 10-20% markup of the production cost – 0.17

Selling price per piece – P0.98
Market price – P 1.00

Note:

• The higher the volume of production per day (i.e., more than 3,260 pcs.), the lower the production cost, thus increasing the markup to more than 50%.

• If price per kg is lower compared with the existing market price, increase the markup to 30% or more.

• Registration Requirements
• SME Loans and Financing Facility
• Training and Seminars Institutions

For more information, contact:

Bureau of Small and Medium Enterprise Development (BSMED)
3/F Oppen Bldg. 349 Sen. Gil Puyat Ave., Makati City
Tel: 890-4968; 897-7596; 897-1693
Fax: 896-7916
Email: bsmed@dti.gov.ph
Website: www.dti.gov.ph

Further reading:

• Commercial Baking Business
• Bakery Business
• Download CFC Pandesal Home Business

photo from houseofsilvanas.com