Pre-Feasibility Study

FAST FOOD RESTAURANT

Small and Medium Enterprise Development Authority
Government of Pakistan
www.smeda.org.pk
HEAD OFFICE Waheed Trade Complex, 1 Floor , 36-Commercial Zone, Phase III, Sector XX, Khayaban-e-Iqbal, DHA Lahore Tel: (042) 111-111-456, Fax: (042) 5896619, 5899756
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REGIONAL OFFICE PUNJAB Waheed Trade Complex, 1st Floor, 36-Commercial Zone, Phase III, Sector XX, Khayaban-e-Iqbal, DHA Lahore. Tel: (042) 111-111-456 Fax: (042) 5896619, 5899756 helpdesk@smeda.org.pk REGIONAL OFFICE SINDH 5TH Floor, Bahria Complex II, M.T. Khan Road, Karachi. Tel: (021) 111-111-456 Fax: (021) 5610572 helpdesk-khi@smeda.org.pk REGIONAL OFFICE NWFP Ground Floor State Life Building The Mall, Peshawar. Tel: (091) 9213046-47 Fax: (091) 286908 Helpdesk-pew@smeda.org.pk REGIONAL OFFICE BALOCHISTAN Bungalow No. 15-A Chaman Housing Scheme Airport Road, Quetta. Tel: (081) 831623, 831702 Fax: (081) 831922 helpdesk-qta@smeda.org.pk

December, 2006

Pre-Feasibility Study

Fast Food Restaurant

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The purpose and scope of this information memorandum is to introduce the subject matter and provide a general idea and information on the said area. All the material included in this document is based on data/information gathered from various sources and is based on certain assumptions. Although, due care and diligence has been taken to compile this document, the contained information may vary due to any change in any of the concerned factors, and the actual results may differ substantially from the presented information. SMEDA does not assume any liability for any financial or other loss resulting from this memorandum in consequence of undertaking this activity. Therefore, the content of this memorandum should not be relied upon for making any decision, investment or otherwise. The prospective user of this memorandum is encouraged to carry out his/her own due diligence and gather any information he/she considers necessary for making an informed decision.

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DOCUMENT CONTROL
Document No. Revision Prepared by Approved by Issue Date Issued by PREF-11 1 SMEDA-Sindh Provincial Chief – Sindh December, 2006 Library Officer

PREF-11/December, 2006/

Pre-Feasibility Study

Fast Food Restaurant

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PROJECT PROFILE
Purpose of the Documents

This document is developed to provide the entrepreneur with potential investment opportunity in setting up and operating a medium sized fast food restaurant offering a variety of food items to the general public. This pre-feasibility gives an insight into various aspects of planning, setting up and operating a fast food restaurant for the general populace. The document is designed to provide relevant details (including technical) to facilitate the entrepreneur in making the decision by providing various technological as well as business alternatives. The document also allows flexibility to change various project parameters to suit the needs of the entrepreneur. 1. 2 Project Brief

Fast food is food which is prepared and served quickly at outlets called fast-food restaurants. It is a multi-billion dollar industry which continues to grow rapidly in many countries. A fast-food restaurant is a restaurant characterized both by food which is supplied quickly after ordering, and by minimal service. The food in these restaurants is often cooked in bulk in advance and kept warm, or reheated to order. Many fast-food restaurants are part of restaurant chains or franchise operations, and standardized foodstuffs are shipped to each restaurant from central locations. There are also simpler fast-food outlets, such as stands or kiosks, which may or may not provide shelter or chairs for customers. Because the capital requirements to start a fast-food restaurant are relatively small, particularly in areas with non-existent or medium income population, small individually-owned fast-food restaurants have become common throughout Pakistan. Generally restaurants, where the customers sit down and have their food orders brought to them, are also considered fast food. 1. 3 Opportunity Rationale

The Fast Food Restaurant Market is a growing industry in Pakistan relying heavily on the changing lifestyle patterns, population growth of the target age group and the related increase in employment of women. With today's hectic lifestyles, time-saving products are increasingly in demand the most obvious being the fast food. The rate of growth in consumer expenditures on fast food has led most other segments of the food-away-fromhome market for much of the last one decade. Demand for convenience has driven expenditures where people want quick and convenient meals; they do not want to spend a lot of time preparing meals, traveling to pick up meals, or waiting for meals in restaurants. As a result, consumers rely on fast food. Knowing this, fast food providers are coming up with new ways to market their products that save time for consumers.

PREF-11/December, 2006/

or travel. Pizza Express. with little or no seating capacity. ethnic. 2006/ . it can be reassuring to a hungry person in a hurry or far from home. Expanding the number of outlets increases accessibility. 4 The Fast Food Industry The fast-food industry is popular in Pakistan. have somewhat catered to the high income segment therefore developing a niche as upscale fastfood restaurants. therefore allocating less time for food. multinational chains are considerably more expensive. department stores. 1.2 Consumer Appeal Fast-food outlets have become popular with consumers for several reasons. KFC. and community values are taken care of. PREF-11/December.Pre-Feasibility Study Fast Food Restaurant Consumers want to combine meal-time with time engaged in other activities. airports. these companies can deliver food to consumers at a very low cost. 1. Multinational corporations such as these typically modify their menus to cater to local Pakistan tastes and most overseas outlets are owned by native franchisees to ensure that cultural. 1. and many major international chains are based there. In Pakistan. However much of the middle-income segment (which forms a major chunk of fastfood goers) prefers visiting local outlets that offer low cost fast food. Pizza Hut.4. they usually are frequented because they are considered chic and somewhat glamorous and because they usually are much cleaner than local eateries. thus making it more convenient for consumers to purchase fast food. although some people dislike fast food for its predictability. the source of most of its innovation. hence the growing need for fast food.1 Increasing Number of Fast Food Outlets The rapid rate at which the fast food industry continues to add outlets is as much a reflection of consumer demand for convenience as it is a reflection of demand for fast food itself. locations chosen specifically to maximize convenience and consumer accessibility. The presence of multinational fast food chains like McDonalds.4. One is that through economies of scale in purchasing and producing food. hence more frequent visits. Many regional and local chains have developed around the main cities of Pakistan (for example Khan Broast in Karachi) to compete with international chains and provide menu items that appeal to the unique regional tastes and habits at comparatively low costs. Especially in recent years. multinational fast-food chains are not the only or even the primary source of fast food in most cities of Pakistan. Additionally. such as shopping. such as office buildings. work. and gasoline stations. much of the expansion has been in the form of "satellite" outlets. In addition. Subway etc. These tend to be smaller in size. and are often in nontraditional locations.

Population Reference Bureau.3 Focusing on Consumer Convenience Fast Food outlets tend to focus on the “work while you eat” philosophy similar to the McDonald Outlet at Quaid e Azam Internation Aiport (Karachi) wherein seating space is also available for passengers in transition or the KFC outlets in large shopping malls like the Millenium Shopping Mall in Karachi promoting the concept of “Shop While You Eat. particularly among younger people with more varied tastes. Parents can have a few minutes of peace while children played or amused themselves with the toys included in the premsises. 1 2 2005 World Population Data Sheet. 2005 Population Projections 1998-2023. currently ranked as 6th in terms of total population. Prior to the rise of the fast food chain restaurant. 2006/ .9% (Pakistan Economic Survey 2005) and is set to take the top three positions in terms of total population with already 153.” 1. people generally had a choice between greasy-spoon diners (kiosk) where the quality of the food was often questionable and service lacking. technology and innovation. designed to appeal to younger customers.4 Increasing Market for Fast Food – The Population Boom Pakistan. or highend restaurants that were expensive and impractical for families with young children.1 With this. is characterized by a high population growth rate of 1. Many consumers see multinational fast food restaurants as symbols of the wealth. with many featuring child-size menu combos. NIPS PREF-11/December. 1.4. fast service and a child-friendly atmosphere where families on the road could grab a quick meal. Planning Commission. Fast food restaurants have rapidly become the eatery "everyone can agree on". play areas and whimsical branding campaigns.4 Million people registered in 2005.4. Modern.Pre-Feasibility Study Fast Food Restaurant Multinational Fast food chains like McDonald's rapidly gained a reputation for their cleanliness. or seek a break from the routine of home cooking. Washington. progress and well-ordered openness of Western society and therefore become trendy attractions in many cities around Pakistan. stream-lined convenience of the fast food restaurant provides a new alternative and appealed to consumers' instinct for ideas and products associated with progress. 2 The growth rate in food consumption is also augmented by the rapid increase in the employment rate for males / female population aging between 20 to 29 years (fast food goers) hence the greater income contribution to the overall income generated is expected to be higher. the per capita income has increased to US$ 736 while the productive age group (15 to 64) years is said to take the major chunk of population (67% of total population) by 2020.

In the face of rising population. NIPS 1. high-quality food products. for family or other reasons. and over the past several decades. as well as the demand for consistent.5 The Future of the Industry The Pakistani economy is becoming increasingly service-oriented. Many more table service restaurants. The role of convenience in this dietary shift cannot be over-emphasized. Even if incomes stagnate or attitudes change. much of the meal preparation will still occur elsewhere. which traditionally focus on full-service in house dining. has become an increasingly significant part of the young generation’s diet. 2006/ . This suggests that even if consumers choose to spend more time at home. Fast Food Outlets will strive to find ways to make their products even more accessible. The value of consumer time. Planning Commission. and possibly experimenting with home delivery. and the future growth PREF-11/December. Fast food. incomes and increasingly hectic work schedules.Pre-Feasibility Study Fast Food Restaurant Population Pyramid 1998 & 2020* *Population Census Organization. consumers are unlikely to return to meal preparation at home on a large scale. the foodservice industries that offer the highest levels of convenience have been rewarded with strong sales growth. a nearly insatiable demand for convenience will continue to drive fast food sales. once considered a novelty. will likely try to capture part of this market by offering take-out.4. will continue to shape the fast food industry. Population Projections 1998-2023.

5 Key Success Factors / Practical Tips for Success Whether you are opening a one-of-a-kind restaurant or trying to grow your existing restaurant into a multi-unit chain. iv) Market Appeal All restaurants want to be busy but winning concepts seem to have a broad appeal and well developed “points of difference” that enable them to dominate their market niche.Pre-Feasibility Study Fast Food Restaurant of the rest of the foodservice industry will be driven in large part by its ability to find new ways to save consumers’ time. it is wise to first set specific goals and decide on the ways you will measure your restaurants success. vi) Menu Pricing One of the most important factors in the strategic planning of a restaurant is in the development of the menu. and operating systems and management procedures established in the first unit can result in more expandable opportunities where all systems are already developed and waiting to be implemented. but to truly develop a winning concept requires implementing systems and procedures to ensure consistency of your operation. 2006/ .” iii) Consistency To not simply open a restaurant. there are winning principles that can help shape your restaurant and improve its chances of succeeding. v) Expandability Consistency of quality and service. 1. To be the first place the customer thinks of going when choosing to dine out is the goal of the winning concept. It involves designing an appealing selection of menu PREF-11/December. but to maintain that success over a long period of time is “winning. To start. i) Conceive the “Winning” Concept A well-defined concept stands a much better chance of long term success than some vague notion. ii) Longetivity This can be described as the art of being able to maintain success over time while adjusting to meet the changing demands and buying habits of the customer. To open a restaurant successfully and become profitable is one thing.

In high scale urban areas (like PECHS. If the restaurant is right off of a major freeway heavily traveled by truckers and road trippers you may be highly successful despite a remote location. Tastes are subject to location preference and more often target market. some detailed meetings with restaurant managers / owners over dinner would do the trick in obtaining best practices and critical information that otherwise could have been overlooked. 2006/ . Menu pricing is a very tricky task because you need to price items so that you can operate profitably and. 6 Proposed Business Legal Status Although the legal status of business tends to play an important role in any setup. viii) Market Research This is probably the most critical factor for running a successful fast food restaurant. If your market is saturated with similar restaurants and the population may not be large enough to support more restaurants.) you are more likely to be successful with a niche concept than in a dense middle income areas (like Gulistan e Jauhar). You need to visit fast food outlets. Even if you are the only outlet in town you must gauge the likelihood of outsiders visiting your restaurant. offer your targeted guests a good price/value relationship. franchises and other chains to see how your ‘concept’ would fit into the neighborhood you are planning to target. Talk to customers to know their preferences. If you are situated in an infrequently traveled area no where near complimentary businesses or at the back of a mall. KDA etc. Keep in mind that because a concept works in one area does not mean it will be well-received by customers in your location. Another thing to consider is competition. the proposed fast food business is assumed to operate on a sole proprietorship basis which may extend to partnership in case of addition of new products that might add significant business to the existing setup. 1. PREF-11/December.Pre-Feasibility Study Fast Food Restaurant items that are competitively priced in the marketplace. you limit your earning potential. vii) Selecting Prime Location The specific location within your target area also is critical. just as important. you may want to rethink your concept.

But rest assured. there are ways to reduce the risk of becoming another statistic. which offers food types that range from burgers. all of those advantages come at a price .4 Develop a Business Plan Like any other type of company. hopefully in an eatery similar to one you'd like to open. 2. Many successful restaurateurs have said that the best way to prepare for owning a restaurant is by working in one. You'll learn more than just how to serve food with a smile. you can learn restaurant marketing. and other significant components of the restaurant world. may not appeal to seniors. people must enjoy running them. Following are some of the handy tips that can help run a successful fast food establishment.1 Work in a Restaurant One of the best ways to reduce the risk of owning a failed restaurant is to have some restaurant experience before you start. and the reality is that many restaurants fail in their first year of business due to improper planning. in turn. higher prices. quiet restaurant offering a two-hour dining experience wouldn't be appealing to teenagers or families with small children. 2. an upscale. A family-style restaurant. Working in the restaurant industry and learning the basics is an important first step to becoming an owner. a restaurant will need a concise business plan. or upscale.1. mid-scale. specific PREF-11/December. it will help determine your location. Is there a particular type of cuisine that you see yourself serving? Do you prefer pizza or soup? Sandwiches or Chinese? Choosing your food concept goes handin-hand with your choice in service style. soups and sandwiches. 2006/ . payroll. offering full service meals with high-class ambiance and. fries. It is a hard and expensive process. teenagers or seniors? Knowing your target market before you start planning will not only help you solidify your menu.3 Select a Service Style & Food Concept What type of restaurant do you see yourself owning? Typically. which caters to parents and their kids. which has full course meals at value prices. After narrowing your establishment to one of these three options.1.1. On the other hand. you can narrow your style of food choices. décor and the overall atmosphere of your restaurant. This plan should include but is not limited to: the overall concept and goal of the restaurant.Pre-Feasibility Study Fast Food Restaurant 2 OPENING A SUCCESSFUL RESTAURANT From burger stands to barbeque steakhouses more and more restaurants are popping up in cities every day. Since restaurants are such a common business venture. your service style will either be fast-food. 2. menu development. 2.2 Know Your Target Market Who do you see eating at your restaurant? Are you targeting the family crowd.1. 1 How to Start a Restaurant? 2. However.building a restaurant from scratch is not an easy task.

1.8 Be Familiar With Safety Regulations Restaurants are regulated and subject to inspection. make sure that the monthly rent is in-line with the business plan's projected profit so that you do not become building-poor. it may not be the best idea to open it in the vicinity of upscale homes but preferably near flats. and should be in accordance with the overall concept of the restaurant. 2. If you are opening a fast food restaurant. convenient parking. and a potential exit strategy. a lot of thought will have to go into the dessert list.1. Therefore it is necessary to consult with old restaurateurs to become familiar with what one must do to meet the necessary legal requirements. When designing your kitchen area. advertising and marketing plan.7 Getting the Appropriate Funding The business plan will help you recognize how much money you will need to start your restaurant. For example. you will need a kids menu. It is necessary to revisit the business plan to make sure you are close to your target market. 2. If it is supposed to be an upscale establishment. is affordable within specified budget. 2006/ . If you are unsure about how much money you will need upfront. 2. 2. and failing to be up to speed with these regulations could be detrimental to the fast food outlet. or encouraging a family or friend to become the creditor. talking to other restaurant owners can help you project your expected start-up costs. the layout and design of the interior should be taken into account. 2. There are numerous ways restaurateurs raise capital to start their business. In order to get and retain qualified employees.5 Create ‘the Menu” and not “a menu” The menu can make or break a restaurant. the menu and pricing. You should already have a concept of your restaurant in your business plan. including taking advantage of government programs that cater to upstart small business owners.1.6 Choose a Location & Layout It is important to find a location that has a continuous stream of traffic. Once you find your location. bring this concept into the design of the dining room. make sure your pay scales relate clearly to the job's duties PREF-11/December. a description of the target market.1. Revisit the business plan to make sure the menu is attractive to the target market. and complements the restaurant's design concept.1. In addition. equipment and employee details. and is in proximity to other businesses (especially if you're catering to the lunch crowd).9 Hiring Employees One of the biggest challenges restaurants face is a lack of qualified labor. liquidating assets or using them as collateral for a loan. think about what's on your menu in order to determine what is needed for the food preparation area.Pre-Feasibility Study Fast Food Restaurant financial information and projections. if the restaurant is family-friendly.

without spending too much on payroll. and local cable TV advertising. Visibility is a location’s ability to be seen and recognized. but for those that do depend on retail traffic like fast food outlets.10 Advertise & Market Every business needs a comprehensive marketing plan. PREF-11/December. here are some factors to consider when deciding on a location:         Anticipated sales volume. After determining your marketing budget. Opening up food stalls and setting up tasting booths at local neighborhood events or having an event at the restaurant benefiting a students / event. In case you allow for parking the site should provide convenient. consider whether or not nearby businesses will generate foot traffic for you. Ask your customers how they found out about you. and restaurants are no exception. 2. flyers in newspapers. Traffic density. Proximity to other businesses. The rent-paying capacity of your business. 2. With careful examination of food traffic. and you can use that information to decide how much rent you can afford to pay. You may encounter unusually restrictive ordinances that make an otherwise strong site less than ideal. price out billboard advertising.1. can be an inexpensive way to achieve positive word-of-mouth. adequate parking as well as easy access for customers.Pre-Feasibility Study Fast Food Restaurant and responsibilities. so that you can record where your advertising and marketing money are best spent. 2 Choosing a Location Not every food-service operation needs to be in a retail location. find out what other restaurants are paying their employees so that you can be competitive in the job market. Good visibility can create opportunities for the impulse eating decision that is critical for fast food operators. Two factors are especially important in this analysis: total pedestrian traffic during business hours and the percentage of it that is likely to patronize your food service business. you will know approximately how much revenue you can expect to generate. Restrictive ordinances. In addition. and it allows the exposure full-service restaurants require. Customer parking facilities. If you've done a sales-and-profit projection for your first year of operation. and their presence can work for you or against you. 2006/ . However try linking your payroll with the bottom line and see how much money can be squeezed out for the employees. Neighboring businesses may influence your store's volume. Consider how easy it will be for customers to get into your outlet. How will the location contribute to your sales volume? Accessibility to potential customers. you can determine the approximate sales potential of each pedestrian passing a given location. If you are relying on strong pedestrian traffic.

Be sure you understand all the details of the lease. Who were the previous tenants. Visit restaurants in your area and analyze the décor. food preparation. You'll need to take into account the size and layout of the dining room. Deciding on the Layout 2. the production area in a restaurant is inefficiently designed--the result is a poorly organized kitchen and less than top-notch service. storage space and counter. and why are they no longer there? Terms of the lease. approximately 30 percent to the kitchen and prep area. production aisles.  Dining area. kitchen space. trash storage. 2006/ . baking. 3 Layout and design are major factors in your restaurant's success. employee facilities and an area for a small office where you can perform daily management duties. Find out the recent history of each site under consideration before you make a final selection. 30 percent come alone or in parties of three. and the remainder to storage and office space. do they react positively to the décor? Is it comfortable or are people shifting in their seats throughout their meals? Note what works well and what doesn't. Keep your menu in mind as you determine each element in the production area. To accommodate the different groups of customers. Watch the diners. such as additional buildings nearby or road construction. You'll need to include space for receiving. Check with the local planning board to see if anything is planned for the future that could affect your business. restaurants allot 40 to 60 percent of their space to the dining area. Place booths for four to six people along the walls.  Production area. storage. Much of your dining room design will depend on your concept. Future development. Your design should also allow for two or more cooks to be able to work side by side during your busiest hours. cooking. It will help you to know that 40 to 50 percent of all sit-down customers arrive in pairs. dishwashing. PREF-11/December. Typically. This is where you'll be making the bulk of your money. so don't cut corners when designing your dining room. Too often. This gives you flexibility in accommodating both small and large parties. Arrange your food production area so that everything is just a few steps away from the cook. because it's possible that an excellent site may have unacceptable leasing terms. use tables for four that can be pushed together in areas where there is ample floor space. and 20 percent come in groups of four or more.Pre-Feasibility Study Fast Food Restaurant    History of the site.

the cook-line. refrigerated any dry storage areas. to-go area. the food preparation areas. office and the dishwashing area. dining out is a recreational activity. sodium and cholesterol should also be marked as such. restroom. architectural preferences and lighting concerns. furniture placement. the restaurant designer’s process includes budget considerations. PREF-11/December. so they're in the restaurant to relax. The front-house functions are typically dining areas (interior and exterior). More than just a design powwow. foliage and artwork. Creating a Menu   2. menus themselves are growing shorter. a restaurant can be understood in two parts. but do you know what kinds of restaurant design ideas create an atmosphere that will welcome them time and time again?  Step One: The restaurant designer’s process begins with a thorough understanding of the eatery’s menu.Pre-Feasibility Study Fast Food Restaurant 2. Sketches may depict color schemes. window treatments. Successful restaurant design ideas are bred with an understanding of the types of experiences your customers are looking for and the promise your brand has made to them. customers. artistic lighting and other aspects of the ambiance. The restaurant designer’s process contemplates the overall circulation within the restaurant for maximum efficiency Step Three: With the floor plan in hand and a concept in mind. wallpapers. the fronthouse component and the back-house component. timelines and coordination with city officials to secure necessary building permits. the next stage in the restaurant designer’s process is interior design. and private dining areas. This is also the part of the restaurant designer’s process where we consider paints. 4 Designing & Decor Since customers ultimately drive restaurant design trends. location. Step Two: The most effective restaurant design considers the flow of waiter staff from the kitchen to the dining area or from the dining area to the restrooms. You may know what types of menu items they crave. 5 Though menu variety has increased over the years. 2006/ . Items low in fat. For the sake of discussion. Busy consumers don't want to read a lengthy menu before dinner. many of your restaurant design ideas will come from your clientele. which we will call the engine. Keep your number of items in check and menu descriptions simple and straightforward. 6 Restaurant Size That depends to some extent on how you answered the fundamental question mentioned above. waiting area. providing customers with a variety of choices in a concise format. 2. Your menu should also indicate what dishes can be prepared to meet special dietary requirements. The backhouse areas include.

you'll probably need three cooks . servers.m. The best candidate is you or a person who has already managed a restaurant or restaurants in the area and will be familiar with local buying sources. The part-time cook will help during peak hours. Restaurants are often slow again until the dinner crowd arrives around 6:30 to 7 p. Chefs and cooks. suppliers and methods. 2. One full-time cook should work days. provided they are properly trained. When your restaurant is still new. Schedule your employees accordingly. Customers will become regulars only if they can expect the best every time they dine at your restaurant.two full time and one part time. For example. and continues until 1:30 or 2 p. Servers. To provide that.m. dishwashers and cleaners. Be sure to hire people who are willing to be flexible in their duties. so they need to make a favorable impression and work well under pressure. the size of the engine.m. The lunch rush. you'll need top-notch cooks and chefs. out of the smallest most efficient back-house possible. meeting the demands of customers at several tables while maintaining a pleasant demeanor. There are two times of day for wait staff: very slow and very busy. your servers may double as the cleaners. a casual or formal atmosphere. cooks. busboys. and numbers of patrons you want to accommodate will all factor in to the amount of space you need for your restaurant. starts around 11:30 a.  Manager / Owner. The most important employee in most restaurants is the manager. doing simple preparation. such as weekend rushes. and the other evenings. The servers will have the most interaction with customers. But one lead cook may need to arrive early in the morning to begin preparing soups.Pre-Feasibility Study Fast Food Restaurant The speed of product delivery. for example. Cooking schools can usually provide you with leads to the best in the business. bread and other items to be served that day. 2006/ . but look around and place newspaper ads before you hire. 7 Hiring the Right Employees Choosing employees who will do a good job is not only important to the success of your business. The goal is trying to maximize the number of patrons one can serve. There are several categories of personnel in the restaurant business: manager. but will also contribute to the image of your establishment.   PREF-11/December. When you start out. The manager should have leadership skills and the ability to supervise personnel while reflecting the style and character of the restaurant. some employees' duties may cross over from one category to another. and can work as a line cook during slower periods.

The server should not be too chatty or familiar. The server should bring drinks within 3 minutes of being ordered.            The server should greet diners within 3 minutes of their being seated. Time factor. 2006/ . dessert menus presented). PREF-11/December. Plates should be removed at the proper time. "Do you need anything else?" The bill should be brought promptly when requested. The server should know the menu and be able to answer questions. Water or beverage glasses should be refilled regularly. The server should neat and clean. Entrees should be served within 20 minutes of ordering. lighting).Pre-Feasibility Study Fast Food Restaurant 2. Measuring good service is subjective. The server should silently survey the table and assess our needs without constantly interrupting to ask. The restaurant owner is required to apply to the controller for registration of the restaurant. and change should be returned promptly. The appetizer (if any) should be served within 5 minutes of ordering. 9 The Pakistan Hotels and Restaurant Acts Act 1976 is the law which requires the owners of all types of restaurants to register and obtain a license with the government. Legal Requirements 2. but generally what is expected from a server when reviewing restaurants. Profit factor (beverages offered. 8 A Good Fast Food Restaurant Experience Based on some surveys conducted with fast food goers following are some of the factors that contribute to a good fast food experience:           Location Characteristics Welcome Food server Food. Environment (parking. restrooms. and the table should be cleared of bread and butter before dessert is served. Dessert Variety Smile factor.

the owner of the restaurant is required to conform to the standard of health. 2.000 1.000 1. Item Construction Cost (all inclusive) Dining & Office Furniture Equipment & Machinery Advance Rent Preliminary Expenses Working Capital Total Cost (Rs.000 5.000 50.307.000 542.250 PREF-11/December.Pre-Feasibility Study Fast Food Restaurant Application for registration and determination of fair rates shall be made to the controller in Form “G” together with a certificate of medical fitness in Form “I” from a registered medical officer of the civil hospital in respect of the staff of the restaurant. hygiene and comfort which standards have been set out in Schedule II of the act.102. 2006/ .) 1. 10 Project Investment This section will provide the total cost of the project. On receipt of application. For registration of a restaurant. Once registered the owner of the restaurant will apply to the controller for license as per the Act which needs to be renewed on a yearly basis for the prescribed fee.200.036.250 967. the controller will carryout inspection of the aforementioned premises and once satisfied will initiate the registration process.

2006/ . French Fries. 1.Pre-Feasibility Study Fast Food Restaurant 2. Broast (Qtr.) Chicken Broast (Half) Chicken Broast (Full) Burgers Chicken Burger Chicken Cheese Burger Beef Burger Beef Cheese Burger Zinger Burger Sandwiches Chicken Sandwich Egg Sandwich Beef Sandwich Club Sandwich Price 65 125 250 Price 50 55 40 45 80 Price 55 40 45 80 Chinese Hot & Sour Soup (2 Servings) Hot & Sour Soup (4 Servings) Chicken Corn Soup (2 Servings) Chicken Corn Soup (4 Servings) Plain Rice Chicken Fried Rice Vegetable Fried Rice Egg Fried Rice Beef Fried Rice Beef Chilli (w/o rice) Chicken Chilli (w/o rice) French Fries (per plate) Cole Slaw Soft Drinks (Large) Soft Drinks (Regular) Price 75 140 75 140 40 80 60 70 80 75 85 Price 25 15 50 15 Based on the above the fast food restaurant can offer low cost combo meals to its customers for increased value. Once the fast food restaurant achieves a steady sales pattern further food items like Barbeque can be added and similarly for desserts ice cream would be the best potential.). Following are the proposed combo deals that can be further modified to meet increasing demand: Combos Combo Deal 1 Combo Deal 2 Combo Deal 3 Combo Deal 4 Family Deal 1 Family Deal 2 Jumbo Deal Items Zinger Burger / French Fries / Regular Drink Chicken Broast (Qtr. PREF-11/December. In case circumstances demand items other than the proposed menu the entrepreneur should make immediate changes to the menu before he starts loosing out customers.) / French Fries / Regular Drink Chicken Burger. 11 Proposed Product Mix The proposed project is assumed to provide customers with a variety of fast food items as outlined in the following menu: Broast Chicken Broast (Qtr. Regular Drink Club Sandwich / French Fries / Regular Drink Full Broast / Zinger Burger / Club Sandwich / French Fries (4) / Large Drink Zinger Burger (2) / Club Sandwich (2) / Broast (Half) / Large Drink / Fries (2) 5% discount on purchase above Rs.000/Price 105 90 135 105 535 515 It desirable to have a vast variety of food items to capture a larger target audience but initially the entrepreneur needs to be careful in choosing the right product mix that has the greatest acceptability such that the sales volume generated are able to cover the initial setup costs and desired profit margins.

5 Years Proposed Location The recommended area for the proposed business setup will be in a densely populated middle income area (for example Gulistan-e-Jauhar.102. The typical fast food restaurant as outlined above would require the following machine / equipment for its operations: PREF-11/December. Karachi). CARPIGIANI. MIRROR. 12 Recommended Project Parameters Human Resource 21 Equipment Local / American / Chinese Location Middle Income Level Area Cost of Capital (WACC) 17.076. 2. KEATING. 13 IRR 57% NPV Rs. Pizza) or add a new item to the existing product line both of which might require the purchase of additional kitchen equipment. Fast Food Machines are easily available in the market wherein the owner has to choose between expensive brands and cheaper ones depending on how much he can afford to give quality to his customers. MORRETTI. 5. Hence the experience of the entrepreneur will play an important role in determining the course of action. Secondhand equipment of world leading brands such as SPINZER. LINCOLN.676 Payback Period 2.5% Capacity 300 Customers per day Financial Summary Project Cost Rs. 13. HENNY PENNY. ROUND-UP. ELETTROBAR are available while cheaper Chinese brands have gained popularity over the years. SANYO. Some outlets closing their business also tend to sell their machinery at low prices but the durability and reliability factor must be taken into consideration while buying such machines. ILSA.250 2. FRYMASTER. The main reason for such a location is the presence of target market and customer traffic which are the prerequisites for the success of the restaurant. 2006/ . This is in turn dependent on the machinery and equipment used to produce good quality fast food. LINCAT. 3 MACHINERY & EQUIPMENT Understanding the customer’s individual needs and the capability to satisfy these completely is a vital part of the restaurant’s success.Pre-Feasibility Study Fast Food Restaurant One important factor to consider here is that the entrepreneur must have the requisite skills to decide on whether to introduce a new product line (like Barbeque. The machines can be ordered through international vendors with a minimum delivery period of 3 months while refurbished / reconditioned machines are also available. AYRKING.

000 * Available from Spinzer USA.000 3. 2006/ .000 40.Pre-Feasibility Study Fast Food Restaurant Item Details Freezers (12 cf) New Broast Machine (15 Pound Capacity)* Deep Well Frier (Single Valve With 2 Baskets) Hot Plate for Burgers.000 33. We have assumed an average of 2.000 967. which requires a good seating layout to avoid any confusion and problems during rush hours.000 650. 2 Dining Furniture & General Fixtures The restaurant is expected to entertain a minimum of 300 customers in a day.000 20.000 33.000 6. 1 Machinery Maintenance All machines require routine cleaning and maintenance after every three months and an annual service which costs around 1% to 5% of the total cost depending upon the use of the machine and operator's skill.000 with the same specs and Delivery Time 3. 200.5 Kg Potato Peeling Capacity) Microwave Working Tables Keg Racks & Shelves Total Quantity 3 1 2 1 1 1 1 1 2 2 15 Unit Price (Rs.000 10.000 3.000 - Total Price(Rs) 75.000 40.000 10. Sandwiches (30” x 22”) Bin Marry Soup Container (2 Valve With Steel Cabinet) Potato Cutter (8mm) Pillar (4.000 50.5% of the depreciated cost as the annual maintenance cost.000 50.000 650.) 25. Delivery Time Three Months. The following table gives the details of the dining tables and chairs that would serve approximately 100 customers (maximum capacity) at a time: PREF-11/December. Kebab.000 10. Reconditioned Available at Rs. 3.000 20.000 80.000 6.

250 *Cutlery to be 1.e.500 2.400 Total Price(Rs) 150. in densely populated area where all utilities and facilities are properly available.Pre-Feasibility Study Fast Food Restaurant Item Details Dining Table – Square (2X2) Chairs (Standard 14”) Kitchen Cutlery Set Dining Cutlery* (Plate.000 250 1.000 10. The more the shop is near the main road the better sales potential it will have.000 sq. Glass) Air Conditioner Split Units (6 Ton) Hot Water Geyser Large Halogen Lights Wall Lights (Large) Portable Emergency Light Generator (1.ft. PREF-11/December.000 20. Fork.5 KVA) Counter Chairs Office Table & Chair Set Waiting Chairs for Take Away Customers Total Quantity 25 100 2 150 2 1 25 4 4 1 2 1 5 322 Unit Price (Rs.500 10.000 3. Spoon.500 150 31.000 7.000 10.000 1. Knife.500 168.500 2.500 90.500 542.500 62.5 times the maximum capacity (i.000 22.000 90.000 1. 2006/ .) 6.000 1.000 6.000 20.250 6. 100 customers) 4 4.000 150. 1 LAND & BUILDING REQUIREMENT Land Requirement The land requirement is around 2.000 5. It is recommended that the fast food outlet be opened on the ground floor of flats or shopping mall wherein the consumer traffic will be a maximum.

000 Civil Works & Décor* (Cost in Rs / square feet) 700 700 800 450 450 450 3. 5 HUMAN RESOURCE REQUIREMENT The human resource requirement for the general and management staff are as follows: PREF-11/December.000 Details Dining Waiting Kids Play Kitchen & Preparation Office Stores Total * Includes interior decoration as well as fancy fittings.000 56. 2 Dedicated Area Requirement The floor space needs to be carefully allocated to allow for maximum dining space for customers in rush hours. 4. Feet) 1. 100. 50/ Sq Feet for the ground floor which would amount to Rs. The monthly rent is approximately Rs. hangings etc.000 56.257.5% 3% 100 % Size (Sq. 50.Pre-Feasibility Study Fast Food Restaurant 4.) 4.500 1. Feet) 63 % 4% 3% 25 % 1.000 per month for the proposed fast food outlet (2.250 80 70 500 30 70 2. The Office Furniture & Equipment will be depreciated at the rate of 10% per annum according to the diminishing balance method for the projected period. lightings. 3 Recommended Mode The proposed premises will be acquired on a rental basis with 6 month deposit and 6 months advance rent after which rent will be payable on a monthly basis.500 31. 2006/ .000 Sq Ft.000 would be required to erect the reception and cash counter along with the take-away order taking booth.550 Total Construction Cost (Rs) 875. The allocation of space between different sections would be as follows: % (Sq.000 225.000 13. 4 Reception & Owner Office To allow for maximum space for dining and security concerns (Cash control) it is recommended that the owner should manage the reception counter as well as all cash handling emanating from the tables. Therefore a total of Rs.

2006/ .000 18.000 8. receivables management. maintain accounts.000 Total Salary (Rs.500 6.000 2. inventory.500 Considering the size of the proposed establishment it is assumed that the owner would be managing the overall affairs of the fast food setup.000 3. 1 Revenue & Cost Projections The Sales are expected to increase by 15% every year while the cost of raw materials is assumed to increase by 10%.000 38. for record. He will be required to process and check bills. etc.) 6. The cost projections cover the cost of land.000 4. PREF-11/December. 6 FINANCIAL ANALYSIS & KEY ASSUMPTIONS The project cost estimates for the proposed fast food outlet have been formulated on the basis of discussions with relevant stakeholders and experts.000 16. The cashier will only be responsible for receiving payment and handing over change while the owner would be managing the cash drawer for control purposes.500 6. The specific assumptions relating to individual cost components are given as under: 6.000 6.000 2. invoices. equipment including office furniture etc. It is important to note that many food outlets tend to lose out due to inadequate cash control by the owners especially during rush hours where the counter staff can easily slip out one or two payments. The owner will also ensure safe custody of store keys.000 89.Pre-Feasibility Study Fast Food Restaurant Designation / Type Owner Kitchen Supervisor Shift Supervisor (including reliever) Cook Servers Take Away Order Taker / Cashier Dishwasher Cleaner Guard (12 Hour) Total Number 1 2 3 4 6 1 2 1 1 21 Monthly Salary (Rs. The 15% annual increase in revenue is expected to result from a part increase in population increase and part increase in product price. building.500 2.000 6.000 24.) 12.000 5.

Furthermore it is assumed that the following sales breakup will form the revenue streams for the fast food outlet Revenue Stream Dine In Take Away Home Delivery Total Revenue % of Total Sales 60% 20% 20% 100% The minimum delivery order size is assumed to be Rs. This will include 6 months deposit and 6 month advance rent. It is assumed that Rs. 2006/ .) 25.000 PREF-11/December. 2 Rent Cost The rent for the assumed premises will be Rs. For Take Away and Home Delivery another 1% of sales added cost due to packing is assumed. 6. 25 per delivery order wherein no transportation fuel is provided by the fast food outlet. 3 Utilities Requirement The following table presents the assumed breakup of utilities on a monthly basis: Utility Electricity Water Gas Telephone Total Monthly Charges (Rs. The rent would be payable on a monthly basis and is expected to increase at the rate of 10% per annum for the projected period.000 52. 250/.per order with 3 delivery riders being employed at the charge out rate of Rs.000 15.000 2.000 10.000/. The prices are also inclusive of the General Sales Tax.200. 1.000 will be given in advance before possession of premises.Pre-Feasibility Study Fast Food Restaurant The prices used to calculate the gross revenue earned are based on the billing rate at which the entrepreneur will charge the customer.per month. 100. 6.

6. It is not advisable to operate a fast food restaurant on credit basis. 6.036.000 1.000 The provision for pre operating costs is assumed to be Rs. 1. 7 Miscellaneous Outlet Expenses A monthly figure of Rs.000 (200 per day) is assumed to be incurred for miscellaneous expenses which are expected to increase at the rate of 10% per annum for the projected period. 4 Depreciation on Building & Equipment Depreciation on Shop. The preheating procedure of the equipment before commencement of preparation also consumes considerable gas.000 400. Equipment. 50. It is assumed that utilities expenses will be increased by 10% every year.) 208. 6. The following table gives the break up. PREF-11/December.000 358. The requirement is based on the rent.000 will be required as cash in hand to meet the working capital requirements / contingency cash for the initial stages.036. 2006/ . Machinery and Fixtures is assumed to be at the rate of 10% per annum based on the diminishing balance method for the projected period. 5 Working Capital & Pre Operating Costs It is estimated that an additional amount of approximately Rs.Pre-Feasibility Study Fast Food Restaurant As depicted above the most of the fast food machines require considerable gas during the preparation process. Item Utilities Salaries Raw Material Inventory Rent Total 4 Months Cost (Rs.000 which will be amortized equally over a 5 year period. utilities and salaries expenses for at least four months and 3 days raw material inventory. 6. 6. 6 Account Receivables All sales will be made strictly on cash basis.000 70.

0 % 15. 11 Owner’s Withdrawal It is assumed that the owner with withdraw from the business once the desired profitability is reached from the start of operations. purchase of inventory etc. 9 Taxation The tax rate applicable to sole proprietorship is the same as that of the salaried individual. This facility would be required at a rate of 15% (including 1% insurance premium) per annum with 60 monthly installments over a period of five years. 6. PREF-11/December.Pre-Feasibility Study Fast Food Restaurant 6. The installments are assumed to be paid at the end of every month. The amount would depend on business sustainability and availability of funds for future growth.0 % 17. 6. 10 Cost of Capital The cost of capital is explained in the following table: Particulars Required return on equity Cost of finance Weighted average cost of capital Rate 20.5 % The weighted average cost of capital is based on the debt/equity ratio of 50:50. Therefore. we are assuming that the tax rate would be the same for the proposed fast food setup. 2006/ . Purchase of machinery & equipment. 8 Financial Charges It is assumed that long-term financing for 5 years will be obtained in order to finance the fast food setup which would mainly include construction & décor of Building. 6.

5% of Written Down Value Raw Food Inventory .Meat 3 Days Raw Food Inventory – Spices & Sauce 7 Days Lease Period 5 Years Lease Installments Monthly Financial Charges (Lease Rate) 15 % per annum Tax Rate Income Tax on Salaried Individuals PREF-11/December. 2006/ . 12 Key Assumptions Item Assumption(s) Sales Increase 15 % per year Increase in Cost of Raw Materials 10 % per year Increase in Staff Salaries 10 % per year Increase in Utilities (Electricity / Water / 10 % per year Gas) Increase in Rent 10 % per year Increase in Office Expenses 10 % per year Debt / Equity Ratio 50 : 50 Depreciation o Shop Building & Fixtures 10 % per annum (Diminishing Balance) o Kitchenware & Machinery 10 % per annum (Diminishing Balance) o Furniture 10 % per annum (Diminishing Balance) Equipment Annual Maintenance Cost 2.Pre-Feasibility Study Fast Food Restaurant 6.

425 272.955 0 7.631 30.738 2.533.145 23.235 4.354.636.435 9.139.487 1.244 2.642.231.501.337.614 9.044.873 127.612 115.165.471.516.861 1.000 228.241 3.867 17.729.475 10.235 10.000 205.107 10.059 4.133.840 3.873 201.165.955 1.215.936 566.359 13.233 1.401.623.348 16.573 1.525 5.700.995.860 3.577.454 1.489 5.414.200 11.625 21.924.120 10.274 2.386 2.359 13.713 7.105.598 1.403.000 72.272.461 2.418.647 20.897 1.232.941.429.650 3.494 1.407.210.015.285.304 696.270 6.563 2.463 19.400.097.359 6. 2006/ .932.631 30.261.584 1.245.614.188.181.386 0 9.338 169.Pre-Feasibility Study Fast Food Restaurant INCOME STATEMENT: FAST FOOD RESTAURANT Projected Income Statement (Rs.299.455.432 7.000 87.000 10.) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Revenue Net Sales Raw Material Cost Labor & Salaries Utilities Cost of Sales Gross Profit General Administrative & Selling Expenses Rent Expense Office & Miscellaneous Expenses Amortization Expenses Depreciation Expense Maintenance Expense Subtotal Operating Income Financial Charges (15% Per Annum) Earnings Before Taxes Tax Net Profit Monthly Profit After Tax 10.867 17.092.200 95.878 5.955 7.532.587 4.566.766 26.572.234 16.540 1.281 298.308 154.397 7.383 1.459.165.200 11.937 7.234 149.677 357.480 13.957 0 166.001 4.770.784.363.794.436 624.273.466 454.198 4.348 16.145 23.808 3.040 830.436.999 1.366 8.227.480 13.589 19.582 1.443 1.015.284 55.581.602 4.155 5.000 686.788 365.774 14.608.471.454.000 184.795.821.428.102 15.831 8.544 913.910.231.682.273.044.636.841 91.841.640.225.275 2.033.344 2.144.097 6.907.537 140.698.647 20.137 15.338.614.000 281.766 26.116 17.640.291 2.305 15.667 11.738 0 0 0 11.359 PREF-11/December.400 1.090.674.477 11.429 2.228 3.000 1.392 229.252 6.004.245.535.568.320.164 806.074.979 10.846 11.407 9.832 10.302.519 10.397 14.249.818.150 1.139.516.214 2.042 13.597.297 12.141 7.688 1.655 9.922 2.599 1.850 8.714.552 0 149.000 253.829.525.958 1.726 35.952 141.700 121.210 850.805 357.877.116.772 0 0 0 134.622 2.756.102 15.517.248.533.650.406 1.268.290 565.875 2.232.125.857.144.848 2.657 2.706.000 79.071.415 10.889 1.307 2.384 5.230 109.463.984 1.668 11.200.624 1.512.572.452.855 1.435 8.763.585.726 35.746 1.758 1.902.702 1.920 105.323 11.761 12.200 10.141 5.267.783.517.668 9.947 1.725 12.400 755.

102.498 634.593 288.992 43.200.349.648.920.903 694.200.000 19.496.947.255.000 9.073 46.534.464.452 1.062 1.662.285.000 9.218.621 233.180.507.131.000 57.747.000 11.000 542.723 189.772 33.200.690 5.415 11.655.053 1.000 7.000 3.664.020 0 15.327.071 981.018.829.782.200.295 374.839.498 7.039.000 1.134 259.360 PREF-11/December.966 2.131.000 45.200.062 3.356 1.200.776 416.531.000 1.200.742 10.000 5.513 625.056 337.300 488.200.236.918 1.053 18.782.687 783.020.174 1.528 1.250 2.486 462.943 952.079 1.707 9.983 1.394 1.816.000 2.125 2.262 562.889 1.421 1.394 967.020.000 6.803 395.000 34.636 506.303 35.983 56.776 27.085.036.551.713.782.920.992 1.100.687 3.565.Pre-Feasibility Study Fast Food Restaurant BALANCE SHEET: FAST FOOD RESTAURANT Projected Balance Sheet (Rs.776 0 27.041.670 439.565.449 857.631 11.020 15.625 40.791 1.000 26.690 704.056 46.486 20.531. 2006/ .250 50.200.967 15.307.055.172 455.056 0 46.772 7.000 5.) Assets Current Assets Cash & Bank Balance Prepaid Rent Total Current Assets Fixed Assets Fast Food Machinery Shop Office Fixtures Total Fixed Assets Preliminary Expenses Total Assets Owner's Equity Long Term Liability Total Equity & Liabilities Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 1.025 2.004 27.889 12.523 355.768.966 58.486 0 20.531.216 672.721 5.250 870.300 1.549.713.847.100.770 1.671 20.347.452 8.551.589.270 1.193 1.528 5.707.295 35.349.300 2.163 30.770 320.020 513.327.750.000 2.131.091.829.250 2.200.327.360 0 58.920.102.212.295 0 35.281.176.360 58.251.816 1.004 771.855.200.789.223 2.816 25.058.359 210.046 20.000 13.565.772 1.631 571.000 4.125 5.053.

415) 0 0 0 0 0 (429.480.400.415 2.551.908.772 33.000) (967.000 1.466 0 2.528 5.116 10.307.519 134.589.) Cash Flow From Operating Activities Net Profit Add: Depreciation Expense Amortization Expense Net Cash Flow From Operations Cash Flow From Financing Activities Receipt of Long Term Debt Repayment of Long Term Debt Owner's Equity Net Cash Flow From Financing Activities Cash Flow From Investing Activities Construction Cost Office Furniture Equip & M/C Advance Rent Preliminary Expenses Net Cash Flow From Investing Activities NET CASH FLOW Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 0 0 0 0 1.747.873 228.924 0 2.000 0 1.700 0 8.889 12.230 0 10.763 0 6.331.062 0 1.761 121.621.534.292) (672.292) (672.667 0 6.000 1.000 3.097.331.774 10.304 109.805 184.983 PREF-11/December.700.452 8.816 25.841 281.404) 2.991 0 12. 2006/ .389.989 3.066.220 0 10.949) (499.000 2.354.Pre-Feasibility Study Fast Food Restaurant CASH FLOW STATEMENT: FAST FOOD RESTAURANT Projected Statement of Cash Flows (Rs.509.783.952 253.579 5.157.250) 1.065) (579.949) (499.250) (1.210.125 5.625 10.932.463 10.000 2.305 10.992 43.285.808.000) (542.164 0 5.551.418.065) (579.053 18.018.411 Cash at the Beginning of the Period 0 1.991 12.489.932.437 0 3.297 0 5.200.964.729 4.464.763 6.272.509.415) 0 0 0 0 0 (1.036.957 0 8.085.019.507.655.036.290 149.062 3.102.466 166.957 8.055.107 0 12.621.425 205.220 10.404) (429.000) (4.125 (370.411 2.487.839.656.000 4.455.000) (50.489.250 (370.466 1.

06 0.08 0.06 0.02 0.342 Monthly 834.08 0. 2006/ .07 0.760 166.338 Delivery Cost 25 / Order 1.600 404.04 0.820 13.669 1.509731129 Sales Break Down Daily Basis Dine In (60%) Take Away (20%) Delivery (20%) Total Orders Value (Rs) Packing Cost 1% of Sales 180 60 60 300 500.669 3.02 0.06 0.12 0.1 Total Sales (Rs) Total RM Cost (Rs.01 0.600 409.260 Additional 4.478 14.838 Final 834.01 0.) Gross Profit (Rs.178 425.169 4.340 430.) Daily 27.01 0.01 0.500 1.12 0.920 166.02 Total Cost 1260 1260 840 Total Cost 480 900 324 414 960 Total Cost 420 72 60 1050 8040 Total Sales 2340 2250 1500 Total Sales 1200 1980 720 810 1920 Total Sales 1155 240 135 2400 16650 Chinese Hot & Sour Soup (2 Servings) Hot & Sour Soup (4 Servings) Chicken Corn Soup (2 Servings) Chicken Corn Soup (4 Servings) Plain Rice Chicken Fried Rice Vegetable Fried Rice Egg Fried Rice Beef Fried Rice Beef Chilli (w/o rice) Chicken Chilli (w/o rice) French Fries (per plate) Cole Slaw Soft Drinks (Large) Soft Drinks (Regular 250ml) Cost Price Unit Sales 25 75 6 50 140 3 25 75 6 50 140 3 12 40 3 20 80 12 18 60 6 18 70 3 20 80 3 30 75 6 35 85 9 Cost Price Unit Sales 8 25 5 6 15 5 40 50 10 9 15 375 TOTAL 0.920 834.03 Total Cost Total Sales 150 450 150 420 150 450 150 420 36 120 240 960 108 360 54 210 60 240 180 450 315 765 Total Cost Total Sales 40 125 30 75 400 500 3375 5625 5438 11170 0.02 0.02 0.600 1.838 PREF-11/December.Pre-Feasibility Study Fast Food Restaurant FAST FOOD RESTAURANT Cost & Revenue Sheet Broast Chicken Broast (Qtr.500 Add Cost 1.01 0.02 0.) Chicken Broast (Half) Chicken Broast (Full) Burgers Chicken Burger Chicken Cheese Burger Beef Burger Beef Cheese Burger Zinger Burger Sandwiches Chicken Sandwich Egg Sandwich Beef Sandwich Club Sandwich Cost 35 70 140 Cost 20 25 18 23 40 Cost 20 12 20 35 Price 65 125 250 Price 50 55 40 45 80 Price 55 40 45 80 300 Unit Sales 36 18 6 Unit Sales 24 36 18 18 24 Unit Sales 21 6 3 30 TOTAL 0.669 3.422 0.01 0.

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