ABSTRACT

Due to rapid changes brought by globalization and modern technology, people are seen
to forget their cultures and traditions thats why there is always a need to have things
which cultivate in people patriotism and sense of ownership for cultural values by
showing likeness to traditional fast food products. Keeping in view, this situation this
business plan have been designed. The plan is aimed to carry on the basic framework for
starting a new business of traditional fast foods. Paratha roll,samosa chaat and shwarma
are the most famous foods in traditional food items. The business plan provides basic
information which might be helpful for future investors in this sector. Our Fast food
business is a new addition in the fast food industry with high aims to facilitate people
with healthy foods, which have marvelous health full ingredients. Our promise is to give
your body healthful products. Due to increasing the needs, wants and demand of foreign
cuisine we decided to launched our fast food center on a small scale. Its a partnership
based business. And we provided self purchasing services and free home delivery. We
also make our contract with schools and colleges that we deliver our products at the time
of recess (break) in schools and collages.

EXECUTIVE SUMMARY
The business project is based on personal observation and real experiences. The
project has been conducted to determine the taste, demands, and wishes of peoples
likings through marketing, communications and traditional foods branding on teenagers,
and families in Mumbai. The business project shows that students can tend to get
influenced by traditional foods. This result into a big demand for local traditional foods.
The company estimates to earn Rs.60,000 thousands in a month and near about 10,000 of
its profit on monthly basis its cash flow is mostly uses in production matters and return
on investment is 20%.Near about Rs... Rs.50000, has been invested so approximately
10,000 capitals is more required to expand the business activities and for more earning
this amount is necessary due to a huge competition in traditional food items.Our company
is a new born company and is launched in response to huge opportunities in fast food
industry. We aim to provide these Paratha rolls, shwarma, samoosa chaat and soft drinks
at our stall in chirabazaar. The company is owned by 2 partners.

FAST FOOD INDUSTRY

Introduction
Fast food is the term given to food that can be prepared and served very quickly.
While any meal with low preparation time can be considered to be fast food,
typically the term refers to food sold in a restaurant or store with low quality
preparation and served to the customer in a packaged form for take-out/takeaway.
Outlets may be stands or kiosks, which may provide no shelter or seating, or fast
food restaurants (also known as quick service restaurants). Franchise operations
which are part of restaurant chains have standardized foodstuffs shipped to each
restaurant from central locations.
The capital requirements involved in opening up a fast food restaurant are
relatively low. Restaurants with much higher sit-in ratios, where customers tend
to sit and have their orders brought to them in a seemingly more upscale
atmosphere may be known in some areas as fast casual restaurants
Globalization
In 2006, the global fast food market grew by 4.8% and reached a value of 102.4
billion and a volume of 80.3 billion transactions. In India alone the fast food
industry is growing by 40% a year. McDonald's is located in 120 countries and on
6 continents and operates over 31,000 restaurants worldwide.
KFC is located in 25 countries. Subway has 29,186 restaurants located in 86
countries, Pizza Hut is located in 26 countries, Taco Bell has 278 restaurants
located in 12 countries besides the United States.
FAST FOOD INDUSTRY IN INDIA
INDIA EMERGING MARKET FOR GLOBAL PLAYERS
The percentage share held by foodservice of total consumer expenditure
on food has increased from a very low base to stand at 2.6% in 2001.
Eating at home remains very much ingrained in Indian culture and
changes in eating habits are very slow moving with barriers to eating out
entrenched in certain sectors of Indian society.. The growth in nuclear
families, particularly in urban India, exposure to global media and Western
cuisine and an increasing number of women joining the workforce have
had an impact on eating out trends.

FACTS AND FIGURES

Fast food is one of the worlds largest growing food type. Indias fast food
industry is growing by 40% a year and is expected to generate a billion
dollars in sales by 2005.The multinational segment of Indian fast food
industry is up to Rs. 6 billion, a figure expected to zoom to Rs.70 billion by
2005. By 2005, the value of Indian dairy products is expected to be Rs.1,
00,000 million. In last 6 years, foreign investment in this sector stood at
Rs. 3600 million which is about one-fourth of total investment made in this
sector. Because of the availability of raw material for fast food, Global
chains are flooding into the country.
MARKET SIZE & MAJOR PLAYERS
a) Dominated by McDonalds having as many as 75 outlets.
b) Dominos pizza is present in around 100 locations.
c) Pizza hut is also catching up and it has planned to establish 125
outlets at the end of 2005.
d) Subways have established around 40 outlets.
e) Nirulas is established at Delhi and Noida only. However, it claims
to cater 50,000 guests every day.
Major players in fast food are:

MCDONALDS
KFC
PIZZA HUT
DOMINOS PIZZA.
COFFEE DAY
BARISTA.

The main reason behind the success of the multinational chains is their
expertise in product development, sourcing practices, quality standards,
service levels and standardized operating procedures in their restaurants,
a strength that they have developed over years of experience around the
world. The home grown chains have in the past few years of competition
with the MNCs, learnt a few things but there is still a lot of scope for
improvement.

REASON FOR EMERGENCE

Gender Roles: gender roles are now changing. Females have started
working outside. So, they have no time for their home and cooking food.
Fast food is an easy way out because these can be prepared easily.
Customer Sophistication and Confidence: consumers are becoming
more sophisticated now. They do not want to prepare food and spend their
time and energy in house hold works. They are building their confidence
more on ready to eat and easy to serve kind of foods
Paucity of Time: people have no time for cooking. Because of
emergence of working women and also number of other entertainment
items. Most of the time either people work or want to enjoy with their
family.
Double Income Group: emergence of double income group leads to
increase in disposable income. Now people have more disposable income
so they can spend easily in fast food and other activities.
Working Women: working women have no time for cooking, and if they
have then also they dont want to cook. Because they want to come out of
the traditionally defined gender roles. They do not want to confine
themselves to household work and upbringing of childrens.
Large population: India being a second largest country in terms of
population possesses large potential market for all the products/services.
This results into entry of large number of fast food players in the country.
Relaxation in rules and regulations: with the economic liberalization
of 1991, most of the tariff and non tariff barriers from the Indian
boundaries are either removed or minimized. This helped significantly the
MNCs to enter in the country.
Menu diversification: increase in consumption of pizzas, burgers and
other type of fast foods.

PROBLEMS OF INDUSTRY
Environmental friendly products cost high: government is legislating
laws in order to keep check on the fast food industry and it is emphasizing
more on the usage of bio-degradable and environment friendly products.
But associated with this issue is the problem that fast food player faces the cost associated with the environment friendly product. They cost
much higher than the normal products that companies uses for packaging
or wrapping their products.
Balance between societal expectation and companies economic
objectives: To balance a societys expectation regarding environment
with the economic burden of protecting the environment. Thus, one can
see that one side pushes for higher standards and other side tries to beat
the standard back, thereby making it a arm wrestling and mind boggling
exercise.
Health related issues: obesity:
I.

Studies have shown that a typical fast food has very high density
and food with high density causes people to eat more then they

II.

usually need. \
Low calories food: Emphasis is now more on low calorie food. In this
line McDonald has a plan to introduce all white meat chicken
Mcnuugget with less fat and fewer calories.

TRENDS IN INDIAN MARKET

Marketing to children's: fast food outlets in India target childrens as
their major customers. They introduce varieties of things that will
attract the childrens attention and by targeting childrens they
automatically target their parents because Childrens are always
accompanied by their parents.

Low level customer commitment: Because of the large number of

food retail outlets and also because of the tendency of customer to
switch from one product to other, this industry faces low level
customer commitment.
Value

added

technology

services:

There

is

continuous

improvement in the technology as far as fast food market in India is

considered. The reason behind that is food is a perishable item and in
order to ensure that it remain fresh for a longer period of time. Earlier,
Indian people prefer eating at home but now with the change in trend
there is also need for improvement and up gradation of technology in
food sector.
Attracting different segments of the market: Fast food outlets are
introducing varieties of products in order to cater the demands of each
and every segment of the market. They are introducing all categories
of product so that people of all age, sex, class, income group etc can
come and become a customer of their food line.

The success of fast foods arose from the changes in our living conditions:
1.
2.
3.
4.
5.

Many women or both parents now work

There are increased numbers of single-parent households
Long distances to school and work are common
Usually, lunch times are short
There's often not enough time or opportunity to shop carefully
for groceries, or to cook and eat with one's family. Especially on
weekdays, fast food outside the home is the only solution.

Introduction to Business
We are starting the business with the objective to provide fresh Pratha Rolls,
samosa chaat,Shwarma and Cold Drinks to the peoples as well as to increase
the economy through the launch of an aggressive business and for the growth
and development of fast food industry in Chirabazaar,Mumbai.
A few priority sectors were selected on the criterion of fast food industry. In
depth research was conducted and comprehensive development plans were
formulated after identification of impediments and retardants. The allencompassing sect oral development strategy involved recommending
changes in the regulatory environment by taking into consideration other
important aspects including financial aspects, niche marketing here as the
task of our company to serve peoples on the behalf of their wishes Along with
the sect oral focus a broad spectrum of business development services is also
offered to the company.
These services include identification of customers demands and taste about
food material. In order to facilitate these customers, company is trying to
provides good quality Paratha rolls, shwarma, samoosa chaat and soft drinks
and provide taste guidance through its help desk with information for the
development of project specific documents (Advertisement). These documents
consist of information required to make well-researched about fast food items
as mentioned before. They have Pre-feasibility studies, and business plan
developments are some of the services provided to enhance the capacity of
business to exploit viable business opportunities in a better way. This
document is in the continuation of this effort to enable potential investors to
make well informed investment decisions.

PURPOSE
The objective of the pre-feasibility study is primarily to facilitate potential
entrepreneurs in project identification for investment. The project pre-feasibility may
form the basis of an important investment decision and in order to serve this objective,
the document/study covers various aspects of project concept development, start-up, and
production, finance and business management.
Our objectives are summarized below:
Understand our customer, competitors and industry.
Provide the best product and services
Continue to grow our business in the selected fields of interest.
Balance our business goals with our financial objectives.
Refine the company values and culture by hiring the best people.

PROJECT PROFILE
Project Brief
This project is related to setting up an Traditional food products stalls to cater the
needs of the peoples especially for those who come from distant places and those
students who live in campus hostels. The proposed project will to provide Paratha rolls,
Shwarma, samosa chaat and soft drinks.

Projected investment
The total cost of the project is Rs. 50 thousands. This amount includes the land
rent, machinery, water and electricity connection and other requirements. Catering prices
can be varied.

Positioning of Brand
The main purpose of this business project is based on personal observation and
real experiences to find out the requirement and taste of Traditional fast food items.
Through making marketing, communications and creating brand awareness among
different categories of peoples like and families in Mumbai.

Target Customers
The target customers for flour mill can be divided into two categories:
Domestic users, such as general people, because of the fact that wheat is being an
indispensable item in our daily lives.
Second category is institutional and international buyers, who buy in bulks, such
as distribution agencies, factories, hotels, restaurants, and bakeries, etc.

Pricing
As the prices have direct effect on the success of your business. So we make our
pricing strategy as affordable as consumer can easily afford and so can satisfy about our
traditional fast food items.
1. We price our products separately, each item would having a separate price for
example: A sigle paratha roll is priced at 80 Rs,Samosa chaat is priced at 50Rs
and Shwarma is priced at 65Rs.
2. Our competitors always try to decrease their prices but we have stable prices of
our products due to high quality.
3. All costs of production and services are included in our final product.

Distribution
Our Distribution includes the entire process of moving the product from the
manufacturing area to the end user. Some of the more common distribution channels
include:
We manufacture our products in our own kitchen to satisfy our customers in
our own supervision for quality management.
After manufacturing we direct sale our products at our stall .

Promotion plan
As this is competitive era so we have many of our competitors who are competing us
against production and direct selling so we have following promotion strategies for the
growth and promote our business.
Advertising. We use Pamphlets, brochures and different banners at different
locations .
Packaging. As we are fresh traditional fast food makers so we use disposable
plates and wrappers which have more intensity to keep the our products hot and
good looking , neat and clean.

Sales Potential
As we are competing in a large market so our sale potential is high because we are
providing a good quality fresh traditional fast food products to our customers. So our
sales potential is mostly near about Rs.1, 50,000 per month.
As if we make the following equation we get

Total consumer
Revenue per consumer
Total sales

1500-2000
85-140
120,000-150,000 per month

Competitive Analysis of Market

As the traditional fast food industry in India has a large competition so we would be
facing a tough competition from the local sellers as well as renowned fast food seller.

Identification and analyze of competition

As we have much competition with our competitors in traditional fast food
industry, so we always provide different opportunities and incentive to our consumers so
that they can enjoy and satisfy with our products, our competitors provide a few flavors
in traditional fast foods and we provide a lot of flavors in our products so that our
costumer can be satisfied with our products. As well prices of our competitors are high ,
but we provide discounts and different incentives to our customers

The competitors of Our products(PARATHA ROLL,SAMOSA CHAAT AND

SWARMA).
1. GOL GHAPPY
2. CHANNA CHART
3. FRUIT CHART

Competitive Advantage strategies:

Business plan
Competitive advantage strategies are now playing a vital role in world wide
businesses.
These are very useful to contain or maintain a competitive edge.We follow
differentiation strategy, diversification strategy, marketing advantage strategy and
geographic expansion strategy.
Differentiation strategy:
We are providing high quality food
Marketing advantage strategy:
Strategy is providing some services for the first time and has got first mover
advantage.
Diversification strategy:
It implies that we will expand by new service and high quality food with the
passage of intervals.
Geographic expansion strategy:
Geographic expansion means to add new places and new disciplines.

Design and Development program

Goals for Product Development
Goals for product development should center on the technical as well as the
marketing aspects of the product so that you have a focused outline from which
the development team can work. As we know every type of customer need more
innovative things so we try to generate more and more good quality traditional
fast food products. so our goal is to serve people more and more to increase the
worth of our business.

Procedures

Gather ingredients.
Make paratha having fried beef/ grilled chicken/ boiled fish .
Serving to the customer

Scheduling and Costs

This is one of the most important elements in the development plan. Scheduling
includes all of the key work elements as well as the stages the product must pass through
before customer delivery. It should also be tied to the development budget so that
expenses can be tracked. But its main purpose is to establish time frames for completion
of all work assignments and provide, stages through which the product must pass. When
producing the schedule, provide a column for each procedural task, how long it takes,
start date and stop date. If you want to provide a number for each task, include a column
in the schedule for the task number.

Development budget

Material. All raw materials used in the development of the product.

Direct labor. All labor costs associated with the development of the product.
Overhead. All overhead expenses required to operate the business during the
development phase such as , rent, electricity, gas
Marketing & sales. The salaries of marketing personnel required to develop prepromotional materials and plan the marketing campaign that should begin prior to
delivery of the product in the university.
Professional services. Those costs associated with the services of chefs hired
from the outside renowned businesses.
Miscellaneous Costs. Costs that are related to product development.

Assessing Risks

As this is food item business so many types of risks are involve in this category so
we highly take care of our products and maintain their quality for customer satisfaction.
Our competitors always in the race to win and to keep competition so if our business
have to stop at a stage so it can be harmful for business growth and development.

Operations and Management Plan

The operations plan will highlight the logistics of the organization such as the
various responsibilities of the management team, the tasks assigned to each indivisual in
the company, expense requirements related to the operations of the business. In fact,
within the operations plan we will develop the next set of financial tables that will supply
the foundation for the "Financial Components" section

Projected Calculation of Overhead Expenses

Overhead expenses usually include the following:

Travel
Maintenance and repair
Equipment leases
Rent
Advertising & promotion
Supplies
Utilities
Packaging
Professional services

Projected Capital Requirement

We approximately need Rs.70,000 as a capital for joint venture of our group with the
future GROUP. Through this capital we will manage our expenses which will be incurred
on different works of installing a stall at a selected location.

Projected Cost of Goods Sold

The projected CGS for our projected business is.
Material
Labor
Overhead
Total

35,000
10,000
5,000
50,000

Financial components
Financial Statements to include
The three common statements are a cash flow statement, an income statement and a
balance sheet.
These three statements are interlinked, with changes in one necessarily altering the
others, but they measure quite different aspects of a company's financial health. It's hard
to say that one of these is more important than another. But of the three, the income
statement may be the best place to start.
As the financial statements are made for the partnership and for limited time of period
thats why some basic principles of accounting are superseded. For example going
concern, Materiality and legal entity.

Projected Income Statement

DESCRIPTION
Sales
CGS
Raw material
Labor
Over head expenses
Gross profit
Admn and selling expense
Maintenance Cost
Gas Expense
Transportation expenses

Net profit

AMOUNT AMOUNT
60,000
35,000
5,000
5,000

2,000
2,000
1,000

45,000
15,000

5000

10,000

Swot analysis
Strength
Friendly environment
Co facility for specific timings
High quality of products
Weakness
Less space for future project
Lack of Experience as a entrepreneur
Comparatively equivalent pricing
Opportunity
Attractive Future Projects
no direct competitor
demand of the fast food in this area gradually increase
Threats
there will competitor in future
Contingencies
Legal and Security Issues