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³The pleasures of the table belong to all times and all ages,
to every country and ever day, they go hand in hand with all
other pleasures, outset them and remain to console us for
their loss.´ Ê

Restaurant business is one of the oldest known to man and to a


large extent is still an art and will remain so in future. System and practices
make the job of managing a hotel or restaurant much similar, but the human
element is difficult to systemize. The field of restaurant business is
interdisciplinary. It draws up economics, psychology, management, food
technology, architecture and marketing clustered together. It is a business of
hospitality.Ê

¦  is one of the oldest cities of Pakistan and is expanding


everyday. The trend of the people of Multan is drifting extensively towards
modern means of socializing and relaxation. Therefore, while starting our
business, we want to introduction a revolution in the business of restaurant. We
plan to introduce a restaurant of international standard, KFC, the name require
no explanation. It is a chain of restaurants operating in more than 80 countries
around the world ±from Shanghai to Sao Polo; from the sand of Saudi Arabia to
the side walks of New York and now in Pakistan. Therefore, while starting our
business we have decided to open a restaurant in the posh locality of Multan,
and then extended to other parts. Ê

£   
  

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Tipu Sultan Road. Ê

- ÊTotal Area : 2 CanalÊ

- ÊÑ  ¦½¦ Ê

  Ê

 2:00AM ±  : 00PM Ê

(Sundays)Ê

30 days a month, Ê

 2 months a year Ê

- ʽ    ½  Ê

-ʦÑ      Ê


KFC Special Chicken, Zinger
Burger, Ê
Fillet Burger, Ê
Soft drinks (produced by Pepsi), Ê
-Ê *nd Project : Opening a number of more restaurants after success of
project. Ê

Ñ      
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The operation strategy of our restaurant will be designed around


the concepts of five senses. From our description research of the industry we
found out that restaurant business is one of those rare services which touch all
the five senses of human being.Ê

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Our business is a partnership which includes 6 partners investing


capital. Ê

Once it is decided that we are getting into business the question


arises that what is uncountable list of occupations the point is what kind of
business to be done. The answer to this question may be found while
considering following factors:Ê

X ½ Ê

The factor of government policy plays a major role in the success of


any business. Before deciding to get into the business. One must also keep in
mind the advantages and disadvantages of any business for the country.
*arning money by keeping the interest of the country at stake should not be even
thought of. The business must be chosen considering its benefit to the country,
in the shape of taxes, revenues and over coming unemployment.Ê

u  

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This factor is also of vital importance. This business only flourishes


when the demand of that product or number of consumers is more. Thus, while
choosing any business we must see the field which provides maximum number of
consumers, so that the invested capital is not blocked or wasted. Ê

º
  
! Ê

ºemand of the product by the user is also a key feature before


choosing any business. If the chosen business in competition with others then
one should not forget that profit is divided. However, by producing quality
product, this factor could be dealt with properly and in our favour. One could
fetch more business if demand of the product increases.Ê

X

  
 
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Before getting into business, the spirit should be high, but always
keeping in mind that it should be planed within the available budget. It is an art
to get maximum benefits by spending minimum resources. However, the element
of risk and luck always becomes the major cause of success of business.
Therefore, always plan business by keeping budget in mind.Ê

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By giving thorough study and elaborate discussions on above-


mentioned factors, we now have to choose business out of unlimited jobs one
could get into. After loads of thinking and vast study, we all partners concluded
that the business of opening an outlet of an International Franchise Restaurant
could be the best for us. So we all decided to open a restaurant where the full
range of eatables of international standard are provided on competitive rates.
Since the occupants of the area, which is selected for this restaurant, have a lot
of trend for hoteling, therefore, we sincerely hope and pray that this business
would meet the required success.Ê




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We strongly believe that if success has to be met, then we will have


to put in our best and honest efforts to provide our food to the entire satisfaction
of consumers. We believe that we can make a difference, we will demonstrate
personal pride and commitment in everything we do. We have a passion for
making things better and we have a positive outlook. We know working as team
always gets the best results. We will by the grace of God work with all our zeal
and enthusiasm.Ê

By considering all above-mentioned factors of our project, it is


quite evident that we will compete in the market. The scope of our project is
good and the results will be prolific. The location of business spot is already
been mentioned which appears to be the best in Multan. We intend covering our
clients from all part of the city mainly from cantonment area. The rest from
Gulgasht, Bosan Road, New Multan and Railway Colony. In future we plan to
introduce more outlets of KFC in different areas of Multan.Ê

¦
   
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The market survey was carried out with express intention of its
being factual and maximum possible care has been exerted to use the best
sources of information.Ê

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ë Ware Housing Ê
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ë Inventory Research, Ê
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ë Cost and *fficiency Studies Ê
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In order to conduct our market survey we aimed at:Ê

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ë The opinion survey Ê


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To conduct a proper and a good survey, we divided the city in to closes


i.e. Upper Class and Middle Class.Ê

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Results of Market ResearchÊ


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By this question we wanted to know what kind of entertainment and


atmosphere we should provide.Ê

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We wanted to know in which field should we advertise more. The results were
that 30 come to now from reviews of Mag. 29 TV, 2 
Recommendation,   by banners and  by Personal discovery.Ê

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Õuality of food = 40 Ê

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rocation =   Ê

Crowd =  Ê

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90 people ranked KFC No. 2 and  0 ranked it as No.  . Ê


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Our business is on partnership basis and we have six partners, each
one investing his/her own capital, which is near about Rs. 643,000 as franchise
will cost us Rs. 20,000,000.Ê

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Total estimated commercialization cost of 2 canal Ê

= Rs  ,600,000Ê

r  Ê
              
   
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2  
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The basic aim to open a KFC restaurant is to given an ideal eating
place with pleasant atmosphere. So we will construct our restaurant in a way
that it would catch the attention of our customers.Ê

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P.C.C. ( :4:8) in base.Ê


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B.B. in cement Mortar ( :) Ê

Ô Ê

  foot  . inches thick, coated with hot bitumen, 2 coat and 2
sheets of polyethene to all external walls.Ê

Ê

Marble floors with 4 inches marble skirting.Ê

Ê

R.C.C. roof slab ( :2:4) as per design.Ê

÷ 
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Cement mortar ( :2) ceilings;Ê

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*mulsion paints weather shield of off-white colour.Ê


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Marble tiles for floors and glazed titles for walls.Ê


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Total area =  0800 squares feetÊ

= 40 marlasÊ

Total covered area = 8000 square feetÊ

= 29.6 marlasÊ

*stimated cost Ê

of construction = Rs. 800/sq. footÊ

Total estimated cost Ê

of construction = 29.6 x 270 x 800Ê

= Rs. 6393600Ê

The total cost includes cost of construction of building, glass &


lighting.Ê

Total sitting capacity =  0 personsÊ

" $ %Ê

Five air-conditioner units will be installed to keep our customers


safe from the blazing heat of Multan and give them a cool and relaxing
atmosphere.Ê

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Cost of 30 tables = Rs. 60,000Ê

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Cost of   chair = Rs. 800Ê

Cost of  0 chairs ( 0x800) = Rs.  20000Ê

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Cost of one moving scenery = Rs.  ,000Ê

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ºishesÊ Ê 0Ê 
Ê
 Ê 300Ê +Ê Rs. 2400Ê
ºisposable Glasses (of
7 Ê 3Ê 
(Ê
KFC)Ê
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Salary of the Manager (Per month) = Rs.  8000Ê

Salary of  Chefs (4000 x ) = Rs. 20,000Ê


Salary of 3 receptionists = Rs. ,200Ê

Salary of Waiters ( 0x 200) = Rs.  2000Ê

Salary of Security Guard = Rs. 2,000Ê

Salary of 4 Sweepers( 200 x 4) = Rs. 4800Ê

Charges of Waste Buster Van = Rs. 400Ê

Monthly Utilities Bill = Rs.80,000Ê


 

Total accrued cost of ingredients per month Ê

#   #      Ê

vegetables, soft drinks, Monthly Tax Ê

5
62 (28+  Ê

+234)3+Ê

Total variable cost ( 42400 + 07,67) = Rs. 6007Ê

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The main daily newspapers published in Multan are:Ê

ë Nawa-I-WaqtÊ
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Nawa-i-Waqt and ºin = Rs.  ,700 per ad on 2nd page Size = 3 col x  0 cmÊ

Khabrain = Rs.  ,200 per ad.Ê

ºimensions of ad. = 3 col x  0 cm on 2nd pageÊ

*xpenditure of Nawa-i-waqt ( ,700 x 40) = Rs.68,000Ê

*xpenditure of ºin ( ,700 x 40) = Rs.68,000Ê

*xpenditure of Khabrain ( ,200 x 40) = Rs.48,000Ê

Total expenditure = Rs. 84,000Ê

Ads. will be given in *nglish Newspaper ³The News´.Ê

We will advertise KFC Restaurant in ³The News´ for complete one month.Ê


 Ê
The News = Rs.  .800 per ad.Ê

ºimension = 3 col x  0 cm on 2nd pageÊ

*xpenditure = ( ,800 x 30) Ê

= Rs. 4,000Ê

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3 ads. will be displayed during ³ºrama Hour´Ê

2 ads. will be displayed after ³Khabarnama´.Ê

These ads will start one week before the inauguration of our restaurant and will
last till the end of next three weeks.Ê

 
Ê

º º  $356!4 


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After Khabarnama (9PM ±  2 AM), Ê

 
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ºaily Cost (  ,400 + 6.600) = Rs.  8000Ê

Total Adv. *xp. (8000 x 30) = Rs. 40000Ê


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Cost:Ê

30 banners @ Rs. 300 = Rs. 9,000Ê

4 signboards @ Rs. 8,000 = Rs. 32,000 Ê

 ,000 handbills @ Rs. I. = Rs. 22,00Ê

 ,000 stickers @ Rs.   = Rs.  ,000Ê

Total Cost = Rs. 78,00Ê

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Newspapers = 7'84222Ê

TV Media =+92222Ê

Printed Media =38+4222Ê

Total =#+)'222Ê

Revenues:Ê
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Break-even point : C(x) = R(x)Ê

Cost = Fixed Cost + Variable Cost Ê

=  872 00 + 6007 (x)Ê

where x = months Ê

 872 00 + 6007x =  690000 (x) Ê

 690000x ± 6007x =  872 00Ê

4335+2 Ê

x =  7.9Ê

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There may be a variation in the price of the ingredients, which we will
be using with respect to taxes.Ê

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