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KFC Feasibility Report
KFC Feasibility Report
Introduction:
The 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.
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.
Multan 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
` Name
KFC
(Kentucky
Fried
Chicken)
` Project Site
Cantt. Locality,
Tipu Sultan Road.
` Total Area
2 Canal
` Operating Time
12:00AM 12:00PM
(Weekdays)
12:00AM 1: 00PM
(Sundays)
30 days a month,
12 months a year
` Project Capacity
` Main Utilities
drinks
(produced
by
Pepsi),
` End Project
Opening
number
of
more
O p e r a t i o n
S t r a t e g y
Structure of Management:
question
arises
that
what
is
uncountable
list
of
Government Policy:
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. Earning 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.
Number of Consumers:
This factor is also of vital importance. This business
only flourishes when the demand of that product or number of
place
is
located
where
one
could
fetch
the
Budget Of Partners:
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
Budget of Consumers:
The purchasing power and the real income of the
consumer should be kept in mind before choosing business.
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
future with respect and dignity. With our honest efforts, we are
positive that this project will be able to meet the success.
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.
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.
M a r k e t
S u r v e y
Consumer Research
Product Research
Market Research
Dealer Research
Price and Policy Research
Selling and Advertising Research
Ware Housing
Inventory Research,
Cost and Efficiency Studies
In order to conduct our market survey we aimed at:
Factual survey
The awareness information system
The opinion survey
The attitude survey
Upper Class:
It includes the elite class of the city. It includes people
living in cantonment area, Tipu Sultan Road, Officers Colony,
Nasheman Colony, and few sprinkled here and there.
The people living in these are mostly rich and can afford
to have a good and expensive food.
Middle Class:
It includes mostly the people living in areas such as
Gulgasht, New Multan, Shah Rukn-e-Alam and Bosan Road. Most
people living in these areas belong to middle class.
The survey report results are as follows:
In order to provide our customers with pleasant
atmosphere and good quality of food, we need different types of
machinery and equipment.
36%
Family
41%
Business Guests
23%
Quality of services
40%
=
Location
15%
Crowd
5%
10%
Price
Q.No.5:
30%
35%
New Multan
19%
Note: Future plans are to open KFC branches on Bosan Road and
in New Multan.
The following questions were asked from those who have
visited KFC.
(In Pakistan or Abroad)
Q.No.6:
Tec h n i c a l
An a l y s i s
Types of Machinery
The different machines, which we need, are:
Several machinery is going to be supplied by KFC (USA)
Cooking Range:
F i n a n c i a l
An a l y s i s
Ownership Of Business:
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.
Fixed Cost:
Following are the costs, which will incur only once.
Land:
The total land is 2 canal and the cost of land is in that
area is Rs. 180,000 per marla. So the total land cost is Rs.
7,200,000.
Construction:
Specifications:
Foundation
P.C.C. (1:4:8) in base.
Super Structure
B.B. in cement Mortar (1:5)
Walls
1 foot 1.5 inches thick, coated with hot bitumen, 2
coat and 2 sheets of polyethene to all external
walls.
Floors
Marble floors with 4 inches marble skirting.
Roof
R.C.C. roof slab (1:2:4) as per design.
Internal Finish
Cement mortar (1:2) ceilings;
Cement mortar (1:4) walls.
Internal & External Paint
Emulsion paints weather shield of off-white colour.
Wash Room:
Marble tiles for floors and glazed titles for walls.
Opening
Whole front will be of glass and wire gauze windows on
the inside.
40 marlas
29.6 marlas
Estimated cost
of construction
Rs. 6393600
150 persons
Air-conditioning Unit:
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.
Cost of 1 air-conditioning unit = Rs. 8000
Cost of 5 air-conditioning units = Rs. 400,000
Furniture:
We will place high quality furniture to match the
standard of our restaurant.
Tables:
Several
arrangements.
tables
are
required
for
proper
sitting
Cost of 1 table
Rs. 2000
Cost of 30 tables
Rs. 60,000
Chairs:
To make our customers comfortable, relaxed and
easy, we will buy specially designed chairs. Total 150 chairs will
be used.
Cost of 1 chair
Rs. 800
= Rs. 120000
Interior Decoration:
We have decided to decorate our restaurant with
beautiful scenery.
Cost of one moving scenery
Cost of 4 moving scenery
= Rs. 15,000
= Rs. 60,000
Deep Frier:
As French fries are the ever favorite of all
people of all ages, so deep frier will be bought.
Cost of 1 deep frier
= Rs. 2500
= Rs. 100,000
= Rs. 40,000
Stove:
A special stove with eight terminals will be installed.
Cost of one stove
= Rs. 10,000
Number of Utensils
Number of
units
Cost of each
(unit) (Rs.)
Total cost
Dishes
200
50
Rs. 10000
Forks
300
Rs. 2400
Disposable Glasses
(of KFC)
200/day
Rs. 600
Total
Total fixed cost =
Rs. 13000
Rs. 170,09,100
Variable Costs:
These are the costs, which are subject to change,
these costs are taken
= Rs. 18000
= Rs. 20,000
Salary of 3 receptionists
= Rs. 5,200
= Rs. 12000
= Rs. 2,000
Salary of 4 Sweepers(1200 x 4)
= Rs. 4800
= Rs. 400
= Rs.80,000
= Rs. 142400
Advertisement Expense:
We are entering in the market with the large advertisements. So, for this reason,
we would have a large advertisement expense.
Nawa-I-Waqt
Din
Khabrain
Among English newspapers, important one is This News our ads. Will be given in
Urdu newspapers, 10 days before the opening ceremony of Restaurant and then 30 days
after it.
Rates:
Nawa-i-Waqt and Din
= 3 col x 10 cm
Khabrain
Size
= Rs.68,000
= Rs.68,000
= Rs.48,000
Total expenditure
= Rs.184,000
Dimension
3 col x 10 cm on 2 nd page
Expenditure
(1,800 x 30)
Rs. 54,000
In Pakistan, we have three TV channels that are PTV, Channel-3 PTV World.
But we have chosen PTV for the advertisement of our KFC Restaurant, because it is the
most popular TV channel in Multan.
= Rs. 11,400
= Rs. 6,600
= Rs. 18000
= Rs. 540000
materials almost cover the whole city. Those people who miss ads. on TV or those who
cannot read newspaper, will certainly see this material.
Cost:
30 banners @ Rs. 300
= Rs. 9,000
= Rs. 32,000
= Rs. 22,500
= Rs. 15,000
Total Cost
= Rs. 78,500
= Rs 238,000
TV Media
= Rs. 540000
Printed Media
= Rs. 785,000
Total
Revenues:
= Rs. 1563000
Rate
Quantity Sold
Revenue
KFC Zinger
100
6000
600000
Fillet Burger
80
4500
360000
Masala Burger
50
6000
240000
1200000
Total
Note: These Burgers are specialty of KFC
Rate
Quantity Sold
Revenue
Pepsi
15
2000
30,000
Marinda
15
15000
22500
7 up
15
1000
15000
67500
Total
Note: Pepsi is sponsoring KFC all around the world.
Rate
Quantity Sold
Revenue
10 PCS Plate
450
150
67500
8 PCS Plate
400
250
100000
5 PCS Plate
325
400
130000
3 PCS Plate
250
500
125000
422500
Total
Break-even Point:
The break-even point is the point where the total revenue is equal to the total
cost. This point shows that after how much time we can get our profit.
Break-even point :
Cost
C(x) = R(x)
= 18572100
= 17.9
A s s u m p t i o n s
While considering our project, we have taken the following assumptions:
Q u e s t i o n n a i r e
(Feasibility of Opening KFC in Multan)
[___________]
Dinner
[___________]
Other
[___________]
[___________]
[___________]
Family
[___________]
[___________]
Chinese Food
Fast Food
[___________]
[___________]
Others
[___________]
[___________]
[___________]
[___________]
Personal Discovery
[___________]
[___________]
Quality of Service
[___________]
Location
[___________]
Crowd
[___________]
Price
[___________]
[___________]
The following questions are for those who have visited KFC
only (In Pakistan or Abroad)
8. On the scale of (15) how would you rate KFC?
[___________]
[___________]
[___________]
[___________]
11. Would you prefer any other thing at KFC (Please Specify).-
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________
Kindly provide the following information about yourself. It will be kept secret and is
required for data analysis only.
1. Gender
Male
[___________]
Female
[___________].