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ROLL CLUB

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Executive Summary
This report is Feasibility analysis of a business for Chicken Mayo Rolls that includes 10 different ingredients. The report has been designed to facilitate the financer’s investment in the proposed small eating outlet project. It puts forward various quantitative and qualitative aspects of the project that assist the financers to thoroughly analyze the profitability and viability of the outlet. The proposed selling price is RS 55 and cost price per unit is 42.88 and we are expecting sale of 86400 units of Chicken Garlic Mayo Rolls in the first year of our business which costs Rs.3704977. The purpose of our report is to open a new business with five partners who will work and share profits and loss equally and give their best shots to maximize the profitability of the business. For the purpose of new opening a new business the finance requirements are RS.600000 and this amount will be borrowed by the financial institute. On the bases of the data we gathered, long-hour calculation of all the Costing and pricing of Physical Raw material, initial investment Expected sales, Data and Schedule of fixed Assets on daily, monthly and yearly basis and we found out whether our business is feasible for us to start or not and discovered the different aspects of finance. Further we calculated the Cost of goods sold, Overhead cost, Operating expenses Administration Expenses, cash budget and monthly basis salaries to our employees. Forecasting for the whole report is a main asset of our feasibility report. Our profit and Loss account would clearly state our profit margin

ROLL CLUB including the tax rate, balance sheet would state what are our fixed assets, Current assets i.e. Cash, Accounts Receivables, inventories. And also the Liabilities side which will reflect the debts on our business we will be taking loan from the financial institute and the loan will be amortize it will have that information also other current liabilities and it will also have the equity and capital information of our business the report will also show the amortization table which will clearly show that how the loan from taken by our business will be amortize. We have tried our level best to make this feasibility report a feasible report. If you require any further assistance please do not hesitate to contact us.

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Target Market
The target market of Chicken Mayo Rolls will be everyone who wants quick snack .The consumers will include teenagers, adults and individuals of all ages and groups. We will be serving people on take away basis so we will be catering anyone who wants to have a quick snack. The set price is quite affordable and it will appeal to every one.

Location
The place proposed for the operation is “North Nazimabad Block F” near HOBNOB and Bundoo Khan, a place near to hyderi market and the residential area of North Nazimabad where the people want quality food. The location has several advantages; most prominent of them is that being closed to the business centers of Karachi like Hyderi, the area gets customers during the days as well as nights. Hence business wise, the place is the most effective for the purpose.

It will help us in penetrating the market. so we are restricting our.ROLL CLUB However. We will work extra ordinary hard on taste factor as we strongly believe in the fact that no taste. no food.55 in the first year. 3 Business Strategy Price Leadership: The competitive strategy is Price leadership because the current market prices are quite higher on it. Competitive Advantage In a food business. Differentiation: The market analysis of mayo garlic unveiled that the market growth for our product is very high and there are very few that are providing quality rolls. Ultimately it’s a sustainable competitive advantage for our business. per unit price to Rs. the most important factor of success is the taste factor. . Service quality and hygiene would be our top most priority through quick cleaning and servicing of the kitchen. from the point of consumer’s convenience in reaching the place. it is most suitable in this respect as it is among the densely populated places of Karachi.

88 and we are expecting sale of 86400 units of Chicken Garlic Mayo Rolls on which the cost is Rs. We will work extra ordinary hard on taste factor as we strongly believe in the fact that no taste. 3704977. the most important factor of success is the taste factor. . the place is the most effective for the purpose. Service quality and hygiene would be our top most priority through quick cleaning and servicing of the kitchen. no food. It’s a shop of 80 square yard and the rent is RS. The location has several advantages. Hence business wise. Place The place proposed for the operation is “North Nazimabad Block F” near HOBNOB and Bundoo Khan. a place near to hyderi market and the residential area of North Nazimabad where the people want quality food.42.ROLL CLUB 4 Marketing Mix (4P’s of marketing) Product Since our aim is to provide quality and hygienic stuff. Price The proposed selling price after determining various factors and doing thorough evaluation is RS 55 and cost price per unit is RS. from the point of consumer’s convenience in reaching the place. most prominent of them is that being closed to the business centers of Karachi like Hyderi.25000 with a six months security. However. In a food business. the area gets customers during the days as well as nights. it is most suitable in this respect as it is among the densely populated places of Karachi.

we will try to build our image as an exclusive Rolls outlet. and full of taste with quality.  Attractive business and product name. taste).. SWOT ANALYSIS Strengths  Location: ROLL CLUB is an easily approachable area and many people prefer to visit this area therefore it will increase our customers  The product we are going to offer will be different. advertising plays a very rare role. This will be our prime competitive strategy and distinguishes us from others.e. Once a higher standard is set.  As people are becoming health conscious therefore we are emphasizing on providing healthy white meat with low calories. In such situation. attractive. keeping in consideration in advance various factors along with the most dominant factor (i.  We will also make a nice layout and presentation that will become our strength. and the business is bound to succeed. . where one can find taste and quality under one roof. if one plans in the right way. Thus.ROLL CLUB 5 Promotion In food business. There is a high competition for ‘Rolls’ in the area. the news spread like wind through mouth-to-mouth and the brand gains popularity without investing a single penny.

Economic Environment • • Tax rate imposed by the government is very high. and will need very experienced staff. The government is not paying us any facilities. Threats:  Strong competitors around our restaurant.  Expand product line and features: we will plan to introduce a variety in rolls in the coming future. Opportunities  Audience.  Slow market growth. 6 PEST ANALYSIS Political Environment • • • The policies keep on changing.  Cultural item: roll is our cultural item usually preferred by a lot of people.ROLL CLUB Weaknesses  We will be new in food business with no experience.  We are not offering a variety of rolls in the initial stage. per capita income is very low . Changes in the tax rate imposed by the government. The economic conditions of the country are not stable because there is a lot of corruption.

Then the spices and ingredients are mixed with them minced chicken which will take 30 minutes and then it is kept for marinating for 2 hours. • People working in offices prefer ready made food and our restaurant is accomplishing their requirement by providing them a complete healthy meal. The washing time required is 1 hour. After washing the entire stock is refrigerated. We purchase19kg of boneless chicken per day.ROLL CLUB 7 Social Environment • Being a part of Muslim country our objective is to provide halal food to our customers. The cooking process takes almost 20 minutes depending on the amount of CHICKEN being placed on the grills. The food is then served. The boneless chicken is first minced which requires around 1 hour. Activity Timing We keep 3 days inventory in advance. • Specially designed bar-b-que grill enables us to make more kababs in less time as well as in good taste. For this reason our procedure of slaughtering is fulfilling the religious requirement rather than shocks. . The daily consumption of chicken is 19kg. Technological Environment • Due to the availability of refrigerator and freezers in large sizes we are able to keep our ingredients of food safe.

It is estimated that if in an hour we are serving in five cars and the average persons in a car is three so three plates are being served and our potential car sales for a day has come out to be 120 rolls. The cooking time of each roll is 20 minutes. Therefore the total potential sale in a day is estimated to be 240 rolls. 8 Sales Forecast We are working on take away basis and our working hours are from 6pm to 2am i. We are getting our Parathas made on contract from a person working in the premises of our restaurant. it will make our take away sales of 120 rolls per day. Production Plan Our maximum production capability is 60 rolls per hour.ROLL CLUB We have two chefs for making the chicken. If we serve 15 people in one hour on take away basis. We are working on a take away basis and we have observed in different places that the take away service is equal to the car sales service. Therefore the maximum production capability has come out to be 480 rolls a day. The grill being used has the capacity of grilling 20 rods at a time.e. Our working hours are 8 hours a day. . 8 hours.

Indirect Material The indirect material includes coal which is used in the bar-b-q to grill the kababs. Every partner will equally look after the management and cash collection. They are responsible for the entire process of making the chicken rolls from washing to cooking. Indirect Labor We have 3 waiters for the purpose of serving people in the car. The chicken masala is then applied on the minced chicken which also comes in our direct material as this is the main ingredient of our product. The fan is also our indirect material which gives air to the grill stand and helps in cooking. . For their assistance and helping we have one helper who will help them in various stages of the product development. The management and the cash handling will be on the risk of the partners.ROLL CLUB 9 Material Direct Material The basic direct material of our product is Boneless chicken which is minced in the later stage. Labor Direct Labor We have one griller who is the main cook of the rolls and another person is there to make paratha.

indirect labor. rent. 1 deep freezer.ROLL CLUB 10 Overheads The overheads include coal. exhaust fans. UPS. The total fixed assets cost given in calculations. table fans. electricity. 2 ceiling fans. pedestal fans. one sink. one cashier table. Depreciation (Overheads) The depreciation of overheads include items like mincing machine. deep freezer. 1 exhaust fans. utensils. energy saver.The total monthly depreciation has been calculated to be Rs. Fixed Asset Schedule The fixed assets acquired by our company include one UPS. depreciation. 3 tables. one grill. telephone. 100 bar-b-q sticks. 1 pedestal fan.20700. . grill. one crockery set and one board. bar-b-q sticks. The monthly and yearly depreciation is given in calculations. Depreciation (Fixed Assets) Every item has a different life time and therefore each has a different depreciation amount .1725 and the yearly depreciation to be Rs. 12 energy savers. The total cost of overheads varies tome to time depending upon sales. 12 chairs. gas. one mincing machine. large frying pan.

ROLL CLUB 11 Operating Expenses Rent and Utilities The area chosen is near “ROLL CLUB” outlet covering the dimensions of 80 square yards.1725 and the annual cost comes out to be Rs. tables. The total operating expense amount has come out to be Rs.1000 per month.2000 and the operating expenses are 60% i.e. maintenance expense. The rent is mentioned in calculations. Telephone Telephone bill is an operating expense which has been calculated to be almost Rs. Depreciation (Operating Expenses) The depreciation of operating expenses include items like UPS.e. Rs. taxes. chairs. The monthly depreciation cost is Rs.5. Rs. 000 per month. staff food cost and other miscellaneous expenses. sink. cashier table. Salaries Our total salaries expense is Rs.4000.29500. ceiling fans. .40200 including the salaries of all the people working in the restaurant. the total electricity bill has been calculated to be Rs. Electricity The overheads of the electricity is 40% i.20700. Further operating expenses include Depreciation. energy savers. crockery and board.

961 493279.7328 QTR2 1188000 926244.261 1246082.2534 21036.644 1246082.938 199373.6 88566.45 173189.17592 119081.4255 QTR4 1188000 926244.15 8421.45 173189.818 Particulars Sales Less: Cost of Good Sold Gross Profit Less: Operating Expenses Profit Before Tax Less: Interest Profit After Interest Less: 16 % Tax Net Profit 2010 4752000 3704977.668 1842972.3577 152839.6 88566.82248 138404.45 173189.80 692756.5505 141763.496313 which is a good return on the investment.6 88566.52054 110441.4 261755.3143 590849.4 261755.4 2011 6739200 5075083.938 2012 9331200 6994948.89661 131478.6 88566.6 101907.4 261755.36677 128385.265.5995 22682.418 1664116.261 294875.15 31425.7923 24454. For details see appendix Particulars Sales Less: Cost of Good Sold Gross Profit Less: Operating Expenses Profit before Tax Less: Interest Profit after Interest Less: 16% Tax Net Profit QTR1 1188000 926244.2701 1046709.ROLL CLUB 12 Financial Analysis PROFIT AND LOSS The statement show quarterly net profit of Rs.582 418033.699 .110441 and yearly net profit of Rs.88571 496313. According to which we can cover our initial investment in 3 months.4 354.6 1047022.15 20349.2857 94535.4 261755.15 41710.6405 26362.6999 1842972.5617 1548096.45 173189.039 2336251.4236 QTR3 1188000 926244.509506 164767.

Our sales are on cash basis therefore in 1st quarter we receive Rs.ROLL CLUB 13 CASH BUDGET Our firm required Rs. . We are paying all the amount in advance and thus making it an asset for ourselves. Balance Sheet The following balance sheet shows that we are not making any liabilities on ourselves.600000 in the beginning of the restaurant .1188000.

398 PKR 371.656 PKR 10.739 PKR 57.50% 30.492 PKR 58.991 PKR 54.485 PKR 9.176 PKR 2.508 PKR 511.ROLL CLUB 14 Amortization Table The following amortization table shows that we are paying off our loan in the first year of our business with handsome rate of 30% to the financer.492 PKR 58.046 PKR 167.066 (PKR 0) .694 PKR 46.492 PKR 58. Loan Amount Amortize Term Debt Term MIR APR PKR 600.055 PKR 112.492 INTEREST PKR 15.492 PKR 58.745 PKR 220.818 PKR 1.492 PKR 58.492 PKR 58.066 PRINCIPAL LEFT PKR 600.492 PKR 44.794 PKR 5.492 PKR 58.390 PKR 322.580 PKR 45.674 PKR 57.234 PKR 419.00% TIME PERIODS 0 1 2 3 4 5 6 7 8 9 10 11 12 INSTALLMENT PKR 58.000 PKR 556.492 PKR 58.208 PKR 50.798 PKR 11.913 PKR 12.501 PKR 4.055 PKR 6.183 PKR 271.285 PKR 8.492 PKR 58.007 PKR 49.492 PKR 58.699 PKR 52.000 12 12 2.438 PKR 51.000 PKR 13.836 PKR 48.316 PKR 55.427 PRINCIPAL PKR 43.928 PKR 466.492 PKR 58.

Therefore the maximum production capability has come out to be 480 rolls a day. The grill being used has the capacity of grilling 20 rods at a time. The cooking time of each roll is 20 minutes.ROLL CLUB 15 Material Cost The following table shows the ingredients and material cost of our product. Our working hours are 8 hours a day. . Production Capability Our maximum production capability is 60 rolls per hour.

4375 3 390 1170 35100 421200 3.38.ROLL CLUB 16 Labor Cost The labor cost for 2010 is Rs.3.5.5 3 330 990 29700 356400 3.43 and in 2012 it is Rs. Due to inflation the wage rate of the labor is increasing and in the same we assume that our sales will also increase by 20 percent which will decrease our per unit labor cost.385416667 . Per unit labor cost in 2011 is Rs3.3. Labor Cost for 2010 Number of Labors Wage Rate Labor Cost per Day Labor Cost per Month Labor Cost per year Labor cost per plate Labor Cost for 2011 Number of Labors Wage Rate Labor Cost per Day Labor Cost per Month Labor Cost per year Labor cost per plate Labor Cost for 2012 Number of Labors Wage Rate Labor Cost per Day Labor Cost per Month Labor Cost per year Labor cost per plate 3 280 840 25200 302400 3.

3. 2011. and 2. Total Cost per unit: Below is the year wise summary of total cost per unit. 3.55.22. and 2012 are Rs.ROLL CLUB 17 Overhead Cost: The overhead cost per unit for 2010. .94 respectively.

. We expect that our sales will increase by 20 percent in every year it will go to 103680 units in 2011 and 124416 in 2012.ROLL CLUB 18 Sales Forecast Our per year sales in 2010 will be 86400 units.

ROLL CLUB 19 Operating Expenses Given below are all operating expenses. .

.ROLL CLUB 20 Depreciation for Fixed Assets We are using straight line method for depreciating our fixed assets.

ROLL CLUB 21 Cost of Goods sold .

363.000 3.000 4.083 397.373 2012 1.790 1.000 70.352.035.193 6.932.694.803 6.403 2.739.200 7.363. Cash Balance Add: Receipts Total Collections Total Cash Available Less: Payments Total Payments Operating Expenses intrest Taxes Security Deposit Paid for Fixed Assets Total Payments Net Cash balance 2010 600.978 333.536 150.876 5.000 5.055.331.400 .820 5.762.ROLL CLUB 22 Cash Budget: 3 Years forecast: Particulars Op.075.752.193 2011 296.907 94.566 701.948 472.200 10.393 5.807 296.603 7.994.334 199.704.603 9.671.580 294.

ROLL CLUB 23 Balance Sheet: .

ROLL CLUB 24 Net Present Value: .

ROLL CLUB 25 Sensitivity: .

ROLL CLUB 26 .

70 0 709.4552 (62.7692 474.400.17 2 284.760.48 0 20.5 0 38.92 8 285.68 Worst (10%) 3.0 0 2010 Particulars Base 4.05 Best (+10%) 5.00 0 3.800.99 9 20.70 0 616.512.45 8) Best (+10%) 60.0 0 Worst (10%) 49.849.1 7 348.480.491.749.97 8 316.12 0 20.0 0 Sales Variable cost Fixed Cost Depreciation Profit Tax 16 % NOPAT Depreciation OCF DF 30% DCF .92 0 3.80 0 20.752.70 0 1.8 8 316.667.70 0 (187.52 4 595.98 5 20.0 0 95.98 8) (30.5 0 47.92 8 348.36 5 5 5 0.07 8) (157.704.70 0 1.18 8 1.120.69 9 0.040.91 0) 20.12 0 3.ROLL CLUB 27 Scenario Analysis 2010 Particulars Base 55.0 0 77.776.0 0 86.21 0) 0.70 0 (137.5 9 285.52 2 113.667.5917 895.0 Selling Price Variable Cost Fixed Cost Sales in Units 0 42.

82 3 1.024.40 0 1.049.29 3 0.048.40 0 26.27 7) 41.20 6 41.36 1 2.353.6 0 114.248.024.44 2 41.33 3 411.392.7692 838.154.44 1 Best (+10%) 8.0 0 103.0 5 336.075.33 3 336.739.5 0 53.9 5 373.312.20 0 5.40 0 2.25 8 440.40 0 (18.8 4 411.91 0) (15.47 0 0.5 0 44.40 0 2.82 4 41.08 3 373.206.752.680.43 2 5.4552 11.89 3 199.441.0 0 2011 Particulars Base 6.311.12 Best (+10%) 71.5917 1.0 0 48.0 0 Sales Variable cost Fixed Cost Depreciation Profit Tax 16 % NOPAT Depreciation OCF DF 30% DCF .0 0 Worst (10%) 58.ROLL CLUB 28 2011 Particulars Selling Price Variable Cost Fixed Cost Sales in Units Base 65.89 7 41.75 2 5.4 0 93.090.824.458.40 0 1.07 0 41.18 7) (2.89 Worst (10%) 5.78 9 6 7 0.

00 1 62.28 6 1.10 0 1.22 4 62.20 0 6.10 0 134.601.ROLL CLUB 29 2012 Particulars Selling Price Variable Cost Fixed Cost Sales in Units Base 75.6 0 Worst (10%) 67.001.75 3 62.000 -589.994.6 0 397.10 0 85.06 4 3.0 0 Best (+10%) 82.5 0 61.000 3.343.04 0 293.961 600.281.665.10 0 3.290.10 0 3.0 0 56.416.112.857.5 5 111.558.223.300 600.4 0 2012 Particulars Base 9.331.13 Worst (10%) 7.545.300 Best 4.85 3 0.434 .4552 61.924.5 0 50.14 6 0 8 0.945.46 2 Best (+10%) 11.978.94 8 441.11 2 62.7692 1.75 2 72.232.265.95 0 13.10 0 1.68 8 0.961 Worst 10.99 9 485.974.27 2 6.906.566 600.58 8 62.539.19 8 62.8 4 485.2 2 441.5917 1.65 2 625.75 2 6.000 1.3 2 124.924.0 9 136.99 9 397.833.29 Sales Variable cost Fixed Cost Depreciation Profit Tax 16 % NOPAT Depreciation OCF DF 30% DCF Titles Total DCF Initial Investment NPV Base 2.