Most cafeterias in the Philippines run inside a school, office or factory under a concession contract, so the plan has two audiences: your lender and the institution that grants the space. This sample covers both. A canteen needs a sanitary permit and staff health certificates from the LGU, not an FDA licence. DTI and BIR fees are filled in; your menu prices and sales are blanks.[3,4,6]
Executive summary
Example: [Canteen name] will run the canteen at [school, office building or plant] in [city] under a [number]-year concession from [institution]. It will serve breakfast, a set lunch with rice, merienda and drinks to about [number] students or staff on [days]. The owner, [name], will register as a sole proprietor and hire [number] staff.
Start-up needs are ₱____ for kitchen equipment, steam tables, utensils and the first stock, plus the concession deposit of ₱____ if the contract asks for one. The owner funds ₱____; ₱____ is requested from [lender]. A captive group of buyers is the strength of this plan, and the contract terms are its main risk, so both are spelled out below.
The concession and the space
Write down what the institution provides and what you provide. Typical items to settle: kitchen size [square metres], electricity and water [sub-metered or included], who pays for repairs, the menu approval process, price caps if any, operating hours, and the concession fee or rent of ₱____ per month or ____% of sales.
Water for cooking and dishwashing must be adequate and potable under the food establishment rules, whether from the building's supply or a private one. Ask the building administrator for its latest water test, and ask your city health office whether it also wants a monthly bacteriological test. Morong, Rizal lists that test for eateries and similar food establishments.[3,5]
The people you feed and your competition
Fill-in example. The [school or office] has [number] students or staff on site on a normal day, according to [the administrator]. [Number] bring baon, by our own lunchtime count on [dates]. Peak hours are [break times]. Buyers want [quick rice meals, cheap snacks, healthy options], based on [number] short interviews we did.
Competition. Inside: [vending machines, a second stall]. Outside: [carinderias, convenience store] at [distance], where a rice meal costs ₱____ by our check on [date]. Our edge is [no walk outside, a rotating menu, faster lines at break]. The target market guide shows how to write this without borrowed numbers.
Daily operations
A canteen is a timing problem. Plan the menu on a [weekly] cycle so the institution can approve it once. Buy rice, meat and vegetables from [market or supplier] on [days]. Cook lunch from [time] so food is hot at the first break and does not sit for hours.
Staff. [Number] cooks, [number] servers, one cashier. Every one of them needs a health certificate from the local health authority before working, renewed at least yearly or as often as local ordinance requires. Many institutions also ask to see these certificates during their own inspections.[4,3]
Records. Daily sales by meal period, food cost per meal, and leftovers. These records are what you will show when the concession comes up for renewal.
Permits and fees
Register the business itself first. DTI charges ₱200 for a barangay-scope business name, ₱500 for city or municipality scope, ₱1,000 for regional and ₱2,000 for national, plus a ₱30 documentary stamp tax on any of them.[1]
A canteen needs a sanitary permit from the city or municipal health office, with the fee set by ordinance. It does not need an FDA License to Operate: FDA's food establishment licensing under AO 2014-0029 excludes canteens and leaves them to the LGU.[3,6]
Financial plan
Start-up. Concession deposit ₱____; cooking range and LPG set ₱____; steam table ₱____; refrigerator ₱____; utensils, trays and food containers ₱____; first stock ₱____; DTI name ₱500 plus ₱30 stamp tax at city scope; barangay clearance ₱____; mayor's permit ₱____; sanitary permit ₱____; health certificates ₱____ × [number]; cash reserve ₱____.[1]
Monthly. Concession fee ₱____; LPG ₱____; ingredients ₱____ per meal × [meals]; wages ₱____; water test ₱____ if required; cleaning supplies ₱____.
School calendar. School canteens earn nothing during breaks. Build your cash flow with [number] low months and show how the reserve covers fixed costs then. Sales per month = buyers per day [number] × average spend ₱____ × [school days].
Risks
Concession not renewed. Plan: keep clean records, meet every menu and price rule, and ask for written feedback each term.
A food safety complaint. Plan: written cleaning schedule, health certificates on file, and a log of fridge temperatures.
Price caps against rising costs. Plan: agree a review clause in the contract so menu prices can be revisited every [period].
Permit and registration costs: cafeteria or canteen
| Registration or permit | Office | Fee | Source |
|---|---|---|---|
| DTI business name (sole proprietor) | DTI | ₱200–₱2,000 by scope, city scope for one concession | DTI BNRS FAQ |
| Documentary stamp tax on DTI fee | DTI | ₱30 | DTI BNRS FAQ |
| Barangay business clearance | Barangay hall | Set by the barangay | Ask the barangay |
| Mayor's permit and city fees | City or municipal hall | Assessed by the city | Ask the BPLO |
| BIR registration (Annual Registration Fee) | BIR | ₱0, not collected since 22 Jan 2024 | BIR RMC 14-2024 |
| Sanitary permit | City or municipal health office | Set by city ordinance, not published nationally | PD 856 food IRR |
| Health certificate, each cook, server and cashier | City or municipal health office | Set by the LGU, not published nationally | PD 856 |
| Monthly bacteriological water test (where the LGU asks) | DOH-accredited laboratory | Not published, ask the lab | Morong sanitary permit list |
| FDA License to Operate | FDA | Not needed: canteens are left to the LGU | FDA AO 2014-0029 |
| Concession or canteen contract fee | School, office or building owner | Not published, set by the contract | Your contract |
Questions people ask
- Does a school canteen need an FDA license?
- No. AO 2014-0029 excludes canteens from FDA licensing and leaves them to the LGU, which issues the sanitary permit.
- What does the institution want to see in my plan?
- Usually your menu, prices, staffing, hygiene routine and proof of permits. Ask the administrator for their concession requirements and answer each one in your plan.
- How much does it cost to register a canteen?
- DTI charges ₱200 to ₱2,000 depending on scope, plus ₱30 documentary stamp tax. BIR no longer collects the ₱500 annual registration fee. Barangay, city and sanitary permit fees are set locally.
Sources
Checked 14 November 2026. We link the agency's own page for every requirement. Rules change; confirm with the office before you pay.
- Frequently Asked Questions · DTI Business Name Registration System
- Digest of Revenue Memorandum Circular No. 14-2024 · Bureau of Internal Revenue · 24 January 2024
- Implementing Rules and Regulations of Chapter III, Food Establishments, of P.D. No. 856 · Department of Health (text via Supreme Court E-Library) · 29 December 1995
- Presidential Decree No. 856 (Code on Sanitation of the Philippines) · Lawphil (text of PD 856) · 23 December 1975
- Requirements for Application of Sanitary Permit · Municipality of Morong, Rizal
- Administrative Order No. 2014-0029: Rules and Regulations on the Licensing of Food Establishments and Registration of Processed Food, and Other Food Products · Department of Health / FDA (text via FAO FAOLEX) · 8 September 2014