1.

Business Description:
We started our business with the name of “2 Ways RESTURANT”. We are four Partners and
each partner invests equal amount of money in business. We are starting this business at
Gujranwala because people of Gujranwala are fast food lovers and we are sure that we will
fulfill the desire of people.

We have a good taste and also we love to cook food that’s why we choose this business. We
provide two main types of food in our restaurant.

In our restaurant we provide best digital services like we provide digital menu tablet on every
table and every customer use it to take order. We mention the time of order that is after 20 to
25 minutes we serve the order. Everyone has its own order number and they also pay bill via
debit Card or Cash.

2. Product and Project Description:

Fast food is a name given to food which is prepared with preheated or precooked ingredients
and served to customers. Market growth largely depends on demographics, urbanization,
changing lifestyle patterns and demand for convenience. Thus all these variables determine the
potential of fast food business.

Firstly we know the taste of our customers. We provide best quality to our customers. They are
taste conscious that’s why we have focused on our food quality and taste.

In our restaurant we provide two types of meal one is fast food and other is Chinese. In fast
food we provide Chicken Burger, Chicken Cheese Burger, Zinger Burger, Chicken Sandwich,
Egg Sandwich, Club Sandwich etc. In Chinese provide hot and sour soup, chicken corn soup,
Chinese rice, Egg fried rice, chicken Chilli, Chicken 65 etc.

1. Technology: In the proposed cooking setup we will used the fryers, grilling machine,
soup containers and all the equipment are required during the cooking and one more thing that
we will add in our setup is about to all the equipment which are the basic requirement of
our restaurant.
2. Location: The business is predicted to be established as a fast food outlet, with limited
seating capacity on rented premises/shop of around 500sqft, at GT Road Gujranwala.
3. Product: Four popular fast food items, including fried chicken, burgers, sandwiches,
Chinese fried rice and soups, have been selected to be served separately or as combo meals
through the outlet.
4. Target Market: Our geographic include people from the local Long Branch
area, restaurant patrons from neighboring cities, and tourists from other cities. People come
to our Restaurant because we provide best facilities to our customer and give 2 different
types of food which is not available in other restaurants.
5. Employment Generation: The proposed project will provide direct employment to 20
people.
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3. Mission Statement:
Our mission is to provide digital efficient service to our customer and to use best quality
ingredients in our food on fair prices in order to satisfy our customers.

4. Slogan: Our slogan is 2 ways “Let Your Taste Grow”…

5. SWOT Analysis:
As any firm plans to move next it has to consider all those things which are harmful for it or
useful for it. This analysis refers that our restaurant can regards to provide information they
can achieve their goals or not.

1. Strengths:
We are starting a new business that’s why our available capital is strength for us. Our location
and physical presence and as we mentioned above we are giving the best digital services to our
customers and we are the only one who are giving Chinese and fast food at one place.

2. Weakness:
Where we are introducing this new facility of Digital Menu Board. The great loss we bear is
that the people have no knowledge and not at all how to use it, this is difficult to use for them.
Because this technology is not used anywhere people first have to know then is should be good
for our restaurant.

3. Opportunities:
Opportunities are the same that we discuss above about our technology the Menu Board that
we can attracts our people by this new way. Because now everyone wants the new thing and
still happy to have new technologies. Fast food is the biggest way to attracts everyone
especially youth. This will be the great way to get more profit.

4. Threats:
Threats are the problems , troubles which every firm faces when it was working or starts to
work in future this way that can predict how we deals with different things and what is good
for our firm and all those things which are not good for us. Our threats include our competitors.
Change tastes of our customers. Lack of knowledge about new features.

6. PEST analysis:

1. Political:
Government stability and rights to run firm in a good way where it cannot restricted or
any flaws to stop firm. If government impose tax on different food things than we will increase
the price of our menu. We focus Environmental and labor polices to increase to expand our
setup.

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2. Economic:
Increase in inflation rate Interest rate effect our business. Change in Exchange rate,
Climate and Higher productivity effect our business. Level increase of income distribution.
Labor and productivity cost. Great impact on globalization.

3. Social:
We focus the 20 to 60 years old people. We know about the population growth rate and
we also know about the people eating habits which are changing day by day that’s why we
provide quality and hygienic products.

4. Technological:
Have a great impact for introducing the technologies in this field of work. Also used by
the internet reduction in the communications costs and increased the remote working. Research
and development technology that produced products in the finer way and effectively in less
time and more production, and with this the technology also transfers easily.

7. Marketing Mix (4P’s)

Marketing mix include 4P’s

1. Price
2. Place
3. Product
4. Promotion
1. Price:
There are different types of pricing but in our restaurant we use Penetration Price because we
started new business with new technology and the price is being used to attract customers to
our business. We also compare our prices with competitor’s prices to attract the customers. We
also provide different types of deals in our restaurant in fair prices for customers.

2. Place:
The place of our restaurant is at GT road Gujranwala. Because it the place where 70% of
population daily cross for their work. We choose that place for our customer because people
can reach easily that place. We have enough seating during busy periods.

3. Product:
In products include two types of product Chinese and fast-food. We provide these things
according to our customers demand. The special dish of our restaurant is Chicken65 because
we are the only one who make that dish.

We know that we serve food to many customers that’s why we maintain quality of our product.
We also provide the new and seasonal variants.

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4. Promotion:
We promote our business (restaurant) by different ideas. To expand our business we must
promote our idea. It’s a biggest tool of any business. We promote our business through different
advertisements like.

 Through TV ad
 By giving ad in newspaper
 By Facebook page (https://www.facebook.com/2WaysRestaurant/)
 Through magazine
 Through radio ad

Critical Factors:
We are going to start fast food restaurant its new business and we are trying to expand our
business by few factors we can get more success. Some key factors are as follow:

 Select a right location

 Hire experience staff and cooks
 Hygienic quality
 Creating right menu
 Digital menu board system
 Fair price of menu
 Know how about competitors

8. Installed and Operational Capacities:

In our restaurant business installed capacity are mainly dependent on the location and lay out
of outlet, style of our service, food concept and our target market.

The restaurant is expected to serve 335 customers in a day. At startup the operational capacity
are estimated to around 150 to 160 customers in a day. Once our restaurant gains popularity
and acceptance, sales are expected increase with the same installed capacity.

9. Geographical Potential for Investment:

According to our business requirement it is important to find location that has a continuous
stream of traffic, convenient parking and is in proximity to other businesses or densely
populated middle income areas where target market is available.
Here are some factors to consider when deciding on a location to establish a fast food outlet:
 Anticipate sales volume
 The rent paying capacity of the business
 Traffic density Customer parking facility
 Terms of the leave
 Future Development
1. Estimate the sales prospective of location

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 2. Due to having sales and getting profit from our business we firstly look after that how
much revenue must be generated from this and paid the rent.
3. Factors are important for running our business that there was not over loading or density
that make problem for our customers in the working hours.
4. Our customers face no problem in any case of parking. Due to that we should not lose
them.
5. The terms and detail of lease must be clarified and acceptable for case.
 We should know better that if there was such the development or by the
government that damage our site should be carefully confirmed for future and
take no risk.

10. Potential Target Market/ Customers:

Fast food chain is divided into many segments in Pakistan relying on population employment,
age group meanwhile gender and the awareness to un-educated people that to apply for job by
women in special segments that they like work hard result development and decrease the
unemployment.

Due to increase in population the idea of people also change instead of past thinking they want
fresh and healthy meal in short time and easily picking delivery service that attract the middle-
class segment and they spend more than upper which they want new taste and reasonable prices.
However, it would at shopping or working time.

As that result they rely on fast food and in other way we easily attract our customer by our
amazing offers.

Offers are attracting the customers but we also attract their children by giving gifts and also
attract the Younger by our style and design.

11. Project Cost Summary:

Project full detail about the cost, revenue, profit and all those which are involve to start and run
this business various to this cost also related the cash flow statement, balance sheet attachments.

12. Project Economics

The following table shows internal rates of return and payback period for fast-food restaurant
starting operations with 150-160 clients.

Table 1 - Project Economics

Description Details
Internal Rate of Return (IRR) 27.64%
Payback Period 2years and 8 months
Net Present Value (NPV) Rs/- 3,156,042
Returns on the project and its profitability are highly dependent on the location, quality of food
and service, efficiency of the service team, interest of the owner manager and competition.

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 13. Project Financing
Following table provides details of the equity required and variables related to bank loan

Table 2 - Project Financing

Description Details
Total Equity (50%) 1,866,911
Bank Loan (50%) 1,866,911
Markup to the Borrower 8%
Tenure of the Loan (Years) 5 years
Grace Period (Year) 1 year

14. Project Cost

Following requirements have been identified for operations of the proposed business.

Table 3: Capital Investment for the Project

Capital Investment Details
Renovation Cost 540,000
Furniture & Fixtures 832,500
Machinery & Equipment 1,139,000
Advance Rent & Gas Security Deposit (GSD) 600,000
Preliminary Expenses 40,000
Total Capital Cost 3,151,500
Initial Working Capital 582,322
Total Project Cost 3,733,822

15. Space Requirement

The land requirement is around 500sqft. It is recommended that the fast food outlet be opened
on the ground floor of flat complexes or shopping malls or any other area with high retail
consumer traffic. As per the proposed service style, the floor space needs to be carefully
allocated to allow for maximum space for food preparation and store. The allocation of space
between different sections would be as follows:

Table 4: Space Requirement

Space Requirement (in ft.) Area (sqft.) Cost of Renovation Amount
(Rs.)
Kitchen and preparation 350 250,000
Store 100 65,000
Front desk/reception 25 25,000
Waiting area 25 200000

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 Total Area 500 540,000

16. Machinery and Equipment:

Fast food machines are easily available in the market for the businessmen or entrepreneurs also.
It may be having the choice of the international brands which use more effectively.

The machines are mostly famous by the development machinery parts from china a year ago,
in all over the world which is frustrated from their reliability and unconditioned. The time
period was about 2 to 3 months in which they deliver the machine uses following Equipment.

Table-5 Machinery and Equipment

Description Quantity Cost Rs/Unit Total Rs.
Freezers 3 40000 120000
Broast Machine 2 175000 350000
Deep Well Fryer 2 50000 100000
Hot Plate for Burgers, 2 40000 80000
Kebab, Sandwiches
Bin Marry Soup 1 60000 60000
Container
Potato Cutter 1 4000 4000
Peeler 1 10000 10000
Microwave 2 15000 30000
Generator 1 200000 200000
Keg racks and Others 3 15000 45000
Website & Software 1 100000 100000
Tablets 8 50000 40000
Total 1139000

17. Furniture and Fixture:

Detail about furniture from which we easily attract our customers and fulfil their demands
about which they want. Furniture we design and sitting all the arrangement we done about 100
to 120 people at a time.

Table-6 Furniture and Fixtures Costs:

Description Quantity Cost (Rs) Amount (Rs)
Dining Table-Square 30 4000 120000
Chairs 150 2000 300000
Kitchen Cutlery Set 5 2000 10000
Dining Cutlery (Plate,
Fork, Knife, Spoon, 150 1500 225000
Glass)
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 Hot Water Geyser 1 22000 22000
Large
Lights / CFLs 20 400 8000
Wall Lights (Large)/ 10 950 9500
Tube lights
Portable Emergency 4 30000 12000
Light
Working 2 30000 60000
tables/counter
Counter Chairs 3 2000 6000
Office Counter & 1 20000 20000
Chair Set
Waiting Chairs for 20 2000 40000
Customers
Total 832,500

18. Raw Material Requirements

It is assumed that material inventory for 5-6 days would be kept at the restaurant. The cost of
material required is as under.

Table 7: Cost of Raw Material

Description Cost (Rs)
Material for fried Chicken 30000
Material for fried Burgers 10000
Material for Sandwiches 9000
Material for Chinese food 20000
Soft drinks and fries etc 11322
Packaging material 10000
Total Raw Material Cost 90322

The raw material cost is estimated to increase by 3% annually.

19. Human resource requirement (HRR):

Head of human resource requirement which consider only the establishments of business. Look
after all the affairs of the management and managed and operate in a proper way and teach
them how to conduct and response to customers. Owner looks after all the affairs of
management as well as the process of checking bills and invoice etc.

Have a right to hire or fire the cooked. Check and balance on the machinery and make a team
to work hard and accept their decisions.

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 Making different projects and for those projects make teams of several people look after that
order salaries are increase 3% annually.

Table 8: Human Resource Requirement

Description No. of Salary per month Total monthly salary
Employees (Rs.) (Rs.)
Owner/Manager 2 30000 60000
Kitchen Supervisor 1 20000 20000
Cook 3 15000 45000
Servers 8 10000 89000
Dish washers 3 9000 27000
Cleaners 3 9000 27000
Total Staff 259,000

20. Revenue Generation:

It is accepted that every year sales must be increased by 10%. Sales increase and as the results
revenue increase the company gets more profit. With more profit company offers more things
which attract the customer’s traffic and the result development of business day by day.

Table-9Revenue

Item Description Unit Sale price First Year First Year

(Rs./Unit) Sales (No.) Sales Revenue
(Rs.)
Chicken Broast (Qtr.) 30 150 4500 675000
Chicken Broast (half) 20 200 4000 800000
Chicken Broast (full) 12 250 3750 937500
Chicken Burger 20 150 3000 450000
Chicken Cheese Burger 20 180 3600 648000
Zinger Burger 20 200 4000 800000
Chicken Sandwich 20 120 2400 288000
Club Sandwich 30 70 2100 147000
Hot & Sour Soup (2 Servings) 20 210 4200 882000
Hot & Sour Soup (4 Servings) 20 310 6200 1922000
Chicken Corn Soup (2 Servings) 15 230 3450 793500
Chicken Corn Soup (4 Servings) 10 330 3300 1089000
Plain Rice 15 180 2700 486000
Chicken Fried Rice 12 240 2880 691200
Vegetable Fried Rice 15 220 3300 726000
Egg Fried Rice 17 200 3740 748000
Chicken 65 15 250 3750 937500
Chicken Chilli 12 280 3360 940800
French Fries 30 100 3000 300000

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Cola Slaw 15 130 1950 253500
Soft Drinks (Large) 25 80 2000 160000
Soft Drinks (Regular 250ml) 80 25 2000 50000
Total Sales Revenue 13,068,100

21. Other Cost:

1. Machinery maintenance:
Every machine needs maintenance after 2 to 3 months and the cost are depending on the earning
of revenue but the imported things is that it depends upon the operator how he uses it and how
cost will apply for maintenance.

2. Rent and Deposit:

The important thing is our place and they want same rent which is give within 3 months and
after that give some deposit after the rent and acquires the land as you will have some detail
about land as following security amount, gas connection, utility agency etc.

3. Utilities Requirements:
The following table presents the estimated breakup of utilities on a monthly basis:

Table-10 Utilities
Description Monthly charges (Rs)
Electricity 50000
Gas 25000
Telephone 8000
Total 83000

22. Working Capital Requirements:

It is estimated that an additional amount of Rs/-582322 will be required as cash in hand to
meet the initial working capital requirements / contingency cash. The requirement is based on
the rent, utilities and salaries expenses for at least one month and 5-6 days’ raw material
inventory. The following table gives the break up.

Table 11: Working Capital

Description Days Charges (Rs)

Utilities 30 83000
Salaries 30 259000
Raw material 5-6 90322
Rent Total 30 100000
Total 582322

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1) Preliminary Expenses: The provision for preliminary expenses is assumed to be Rs.
25,000, which will be amortized equally over a 5 year period.
2) Miscellaneous Expenses: A monthly figure of Rs. 600000 (1,667 per day) is assumed to
be incurred for miscellaneous expenses which are expected to increase at the rate of 2% per
annum for the projected period.
3) Taxation: The business is assumed to be run as a Partnership. Charge general sales tax
GST is 17% in Pakistan.

24. Key Assumptions:

Particulars Assumptions
Sale Increase 10%
Increase in cost of Raw Materials 5%
Increase in Staff Salaries 5%
Increase in Utilities (Gas, Water, 3%
Electricity)
Increase in Rent 5%
Increase in Office Expenses 5%
Raw Material Inventory 5to 6 days
Loan Period 8 year
Loan Grace Period 1 year
Loan Installments Monthly
Financial Charges (Loan Rate) 8%
Tax Rate 35%

25. Estimated Income Statement of 5 Years:

Details Year 1 Year 2 Year 3 Year 4 Year 5
Revenues:
Net sales 13068100 13721505 14407580 15127959 15884357
Raw material cost 5419320 5581900 5637719 5694096 5751037
Utilities 996000 1025880 1036139 1046500 1056965
Labor & Salary 3108000 3201240 3265265 3330570 3397181
Cost of Sales 9523320 9809020 9939122 10071166 10205183
Gross Profit 3544780 3912485 4468458 5056793 5679174
Operating
Expenses:
Rent Expense 1200000 1224000 1248480 1273450 1298919
Office and MiscExp 600000 606000 612060 618181 624362

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 Depreciation Exp 473200 473200 473200 473200 473200
Maintenance Exp 25000 25500 25755 26013 26273
Sub total 2298200 2328700 2359495 2390843 2422754
EBIT 1246580 1583785 2108963 2665950 3256420
Interest Rate (8%) 99726 126703 168717 213276 260514
EBT 1146854 1457083 1940246 2452674 2995907
Tax (35%) 401399 509979 679086 858436 1048567
Net Profit 745455 947104 1261160 1594238 1947339

26. Estimated sales for five years:

Years Sales (Rs)
1 13068100
2 13721505
3 14407580
4 15127959
5 15884357

27.Estimated cash Flows for five years:

Cash flow= net profit+ depreciation

Cash
Years Flows(Rs)
0 (3733822)
1 1218655
2 1420304
3 1734360
4 2067438
5 2420539

28. Capital budgeting techniques:

1. Payback period:
Cash Sum ofCash
Years Flows(Rs) Flows(Rs)
0 (3733822) (3733822)
1 1218655 1218655
2 1420304 2638959
3 1734360 4373319
4 2067438 6440757

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 5 2420539 8861296

Payback period= beginning years+ (remaining CF/next year CF)*12

= 2 years + [(3733822-2638959)/6130359]*12

= 2 years+ 8 months

2. Discounted payback period (i=8%)

Cash PV of Cash Sum of cash

Years Flows(Rs) Flow flows
0 (3733822) (3733822) (3733822)
1 1218655 1128384 1128384
2 1420304 1217682 2346066
3 1734360 1376791 3722857
4 2067438 1519629 5242486
5 2420539 1647378 6889864
6889864 19329657

=2 years+ (remaining cash flow/next year CF)*12

=2 years+ [(3733822-2436336)/1376791]*12

=2 years+ 11 months

3. NPV (net present Value):

Cash PV of Cash
Years Flows(Rs) Flows
0 (3733822) (3733822)
1 1218655 1128384
2 1420304 1217682
3 1734360 1376791
4 2067438 1519629
5 2420539 1647378
6889864

NPV= PV of Cash inflow – PV of cash out flow

NPV= 6889864 - 3733822

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NPV= Rs 3156042

 The project will be accepted or started because the NPV is positive.

4. IRR (internal rate of return):

Cash PV of CF PV of CF
Years Flows(Rs) (i=30%) (i=25%)
0 (3733822) (3733822) (3733822)
1 1218655 937427 974924
2 1420304 840417 908995
3 1734360 786422 887992
4 2067438 723868 846823
5 2420539 651922 793162
3940056 4411896
IRR = low rate + (high rate – low rate)*NPV@ low rate / NPV @high rate + NPV @ low
rate

IRR =25 %+( 30%-25%)*4411896/3940056+441896

IRR=25 %+( 5%)*4411896/3940056+441896

IRR=25%+22059480/8351952

IRR=25%+2.64

IRR=27.64%

BIBLOGRAPHY:
https://www.smeda.org/index.php?option=com_users&view=login&return=aW5kZXguc
GhwP29wdGlvbj1jb21fcGhvY2Fkb3dubG9hZCZ2aWV3PWNhdGVnb3J5JmlkPTk5Om
Zvb2QtYmV2ZXJhZ2VzJkl0ZW1pZD0w

https://www.google.com.pk/search?q=pest+analysis+of+restaurants&espv=2&biw=1366
&bih=613&source=lnms&tbm=isch&sa=X&ved=0ahUKEwiH1672--
nRAhUGbSYKHdkxDysQ_AUIBigB#imgrc=qlMXSeEBDipTMM%3A

http://www.slideshare.net/PrudhviRaj12/study-of-marketing-mix-of-a

http://www.bplans.com/fine_dining_restaurant_business_plan/company_summary_fc.php

http://www.bplans.com/fine_dining_restaurant_business_plan/market_analysis_summary
_fc.php

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