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ABC is a locally owned fast food outlet that will be positioned as an international franchise through our creative approach to the company's image and detail presentation. ABC will provide a combination of excellent food at value pricing, with fun packaging and atmosphere. ABC is the answer to an increasing demand for snack-type fast food, to be consumed while shopping and walking around. In today's highly competitive environment, it is becoming increasingly difficult to differentiate one fast food outlet from another. Bahrain, a city state, is now becoming the model metropolis for Asia's new economic boom. With more than 8 million visitors yearly, mainly from neighboring countries (Saudi Arabia, UAE, Iran and the Kuwait), Bahrain retail sector is the strongest in the region. Our main priority is to establish one outlet in a crowded area, preferably in one of prominent High Street or Mall in Bahrain. Later, our effort will be a further development of more retail outlets in the surrounding area. This plan is prepared to obtain a location for the initial launch of this concept. Additional financing will need to be secured for the two subsequent outlets, anticipated in some months or in years. The financing, in addition to the capital contributions from shareholders, will allow ABC to successfully open and expand through the span of two years. The initial capital investment will allow ABC to provide its customers with a value-driven, entertaining experience through the creativity of its founders. ABC will attract youngsters to bring their friends and family by establishing innovative environment, introducing new recipes, and selection of unique signature food.
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To establish a successful local fast food outlets and gain a market share in Bahrains fast food industry. To make ABC a destination spot for shopping lovers. To expand into a number of outlets within three years, by franchising or opening self set up neighboring metropolitan cities, such as Jeddah, Riyadh, Muscat, Qatar and Dubai.
Our main goal is to be one of the most successful fast food outlets in Bahrain, starting with one retail outlet located at a major populated area as a "market tester." ABC will strive to be a premier local fast food brand in the local marketplace. We want our customers to have the total experience when visiting our outlet(s) and website as they will learn about this fascinating new "pop culture." We will sell merchandise from pre-packaged sauces and t-shirts to potato cutters, all with our official brand attached to them. Our main focus will be serving high-quality food at a great value.
1.3 Keys to Success
To succeed in this business we must:
Create a unique, innovative, entertaining menu that will differentiate us from the rest of the competition. Control costs at all times, in all areas and implement a conservative approach to growth policy. Although, we provide more than enough fund to open more than one outlet, we want to be on the safe side of the business.
for the main reason of reaching larger traffic. Our preference is high end shopping street. Start-up Requirements (BHD) Start-up Expenses Kitchen and Fixtures 1500 Furniture and Interior 1500 Legal 3500 Rent advance 2400 Packaging and Stationary 300 emergency 2000 Total Start-up Expenses 11200 Start-up Assets Cash Required Other Current Assets Long-term Assets Total Assets Total Requirements 2800 0 0 1600 14000 All above rates from difffernt classified sites of Bahrain. Provide 100% satisfaction to our customers and maintaining the level of excellent services among other competitors. The space selection will be chosen based upon the following criteria: . Get access to high-traffic shopping malls near the target market. high end shopping street or shopping mall. coupled with main drivers in marketing communications. Can be vary 5 to 10 % 2.• • • • • Sell the products that are of the highest quality. Our first location will be on the larger end of this range. We will equip the outlet with modern furniture and aim for cleanliness and an open feeling.1 Start-up Summary The retail outlet will be rented at one of the target location.3 Company Locations and Facilities ABC’s locations will range in size from 50 – 70 meter square and will seat from 15 – 25 guests. as well as keeping the customers happy with all of our product categories from food to store merchandising. Encourage the two most important values in fast food business: brand and image. The location will feature its own originality in merchandise display and other brand building attributes. Promote good values of company culture and business philosophy 2.
Company ABC McDonald's KFC Cleanliness Value of food Yes Yes Yes Yes Yes Yes Merchandising Hang Out Simple Yes Yes No Yes Yes Yes Yes Yes No Fresh Yes No No Cool Yes Yes Yes Pop Culture Yes Yes No 3. All of these qualities are consistent with ABC' goal of providing a top quality fast food experience.000 people within a radius of 14 kilometers. We want "word-ofmouth" to be our best form of marketing.3 Sales Literature . Our innovative packaging will be more entertaining than our competitors. ABC will directly compete with several fast food giants. Our food will be made from 100% fresh ingredients. we will offer various merchandise with our logo and colors. Supporting merchandise items that support the company's brand building. Products We want to focus only on selling fast food. We expect a high degree of enthusiasm and offer a fun store with friendly staff that reflects the company's youthful and energetic culture. As there is a huge community of Indian and Pakistani in Bahrain so we will focus on promoting the fast food with Indian and Pakistani touch with some Western fast food. 3.• • • • Community size: minimum of 800.1 Product Description • TBD 3. where our customers will value our brand as something exciting and cannot wait to tell their friends and neighbors. Easy access. Large percentage of teenagers in the community.2 Competitive Comparison ABC will have several advantages over its leading competitors: • • • • • Unique "fusion" concept of Pakistani and Indian food as fast food with Western food. Tourist destination. so that our customers can enjoy our food. from hats to t-shirts to potato cutters to our signature sauces.
more or less. Consumer expenditures for fast food in Bahrain rose during the end of the year 2006. announce future job openings and mention the possible franchise opportunities.6 Future Products TBA Value Meal TBA Private Parties Brochures and handouts will explain that we can handle banquets and private parties.4 Sourcing TBA 3. Half page magazine reviews in Bahrain’s lifestyle magazines that advertise the presence of the outlet. • • 2. Grand Opening Each new outlet will have outdoor signage as soon as possible. 3. the same marketing mix as the others. Direct Mail Piece A stand-alone folded piece will be produced in full color on heavy weight paper. Inside will be all the important details of ABC. Point of Purchase We will use "tray toppers" to explain the concept and philosophy of ABC. fancy restaurants and gourmet bakeries around Bahrain has shown a significant growth in this sector. in addition to our brochure that will list our daily entrees. and consumer spending on leisure and recreation made up of 13% of total consumer spending. explanation of our menu. Food spending is around 56% of total consumer expenditures in Bahrain. prices. We want the signage to be supported by banners before the opening. The increasing number of new establishments such as fast food franchises. .5 Sales Programs Each opening of ABC will have. followed by the recovery of Bahrain economy.ABC will use advertising and sales programs to get the word out to customers.000 color brochures will be distributed throughout the city. 3. Below are the programs that we will develop to open each location. house of operation and a locator map. We will also sell gift certificates. A much broader appeal exists for weekend slots because those are the days when most of our core target market enjoys the mall going activities.
1 Market Needs A recent Consumer Trend and Analysis by Euro monitor identified the following needs among our target markets. Our concept will have very broad appeal. It is our goal to be "the extraordinary fast food place" and we believe that the age group from 15 to 25 is the primary age where brand building efforts could take place. At 1. Family unit . we are featuring to fill Bahrain’s craving for fast food as for a lunch it is a quick bite not a heavy meal. hamburger. 4. with a slight skew for males due to their lower attention to dietary concerns. 90% of them like fast food on a regular basis and 10% of them claimed that they like fast food "very much. preferably something fried .• • • • Age . Market 4. they need a quick bite to accommodate their activities. pizza or other fast food giants in the vicinity. First.We will target both sexes. and enjoy chicken. single.1 Market Segmentation We are targeting young community in Bahrain as our primary market.Youngsters. and when they do strolling around the shopping. People do not perceive that fast food is a luxury and they enjoy it by bringing their family. Income . Our core group: • Wants variety and flavor in its food. Second.We will appeal to the medium income individuals and to all in the lower medium income bracket. Gender . Most of Bahrainis love to shop. Fast food is naturally their first choice because of the brand building effort that heavily targets their age group. which are a heavy lounge/restaurant user group. The survey also provided the following particular reasons for the increasing popularity of fast food: • • • • People have 52 weekends and three long holidays a year.2. currently enrolled in college and high school. They are on limited or fixed incomes and seek a value/price relationship that will not stretch their budgets. Our lunch strategy is dual purposed. we want to keep the price point at lunch as fair as possible to keep us in competition with other fast food outlets." or "love" fast food. It is our goal to be the trendy destination for fast food cravings. According to a recent public survey of people 15 . We have chosen this group for several important reasons. but we offer much more excitement than the rest of the competition.We will also appeal to families (young families) with children. White-collar workers in offices have stopped bringing lunch. Parents give more money to kids and students to buy lunch. Our secondary market segment is the "Working Class. we are only slightly above the segment.45 years old. especially if they have smaller kids." and “tourists”. 80% of those interviewed. They are more flexible in budgets and seek more than a value/price relationship. in the environment of the western-style fast food outlets. 4.2 Target Market Segment Strategy ABC intends to cater to the bulk of teenagers and youngsters in Bahrain. like fast food. Our secondary target is between the ages of 25 and 37. Eating out still remains as common habit of life.5 BHD for a medium size food.
and a food retail sector. Middle eastern preferred Western chain restaurants. This stimulated the rise in the number of fast food units. and attractive environment Adopts a global lifestyle Is computer literate Enjoys eating out Has an active lifestyle Comes from various ethnic backgrounds 4. for whom time is of a premium.2 Market Trends In the past. 4. Over the past 5 years. 4. Hardees and Pizza Hut were dominating most of the chains. particularly during 2008 and 2009. such as eating out as part of trendy lifestyle. fast food. Younger middle and upper income group families and individuals are also frequent users of the full service restaurants.S.3. Spending on cooked food as a percentage of total average food-spend reached 55% in 2009. Franchising became popular in the food service industry through the introduction and entry of multi-national food service brands. the food service industry recovered faster than others. As the numbers and variety of food service outlets has increased in Bahrain. modern-style coffee shops and cafés that now exist all across Bahrain. such as KFC. there has been a general upgrading in the food service sector which has seen the establishment of more air conditioned food centers (food courts) that are considerably cleaner than the traditional hawker markets. Increases in the number of expatriate residents.-owned enterprises. with the success of the locally grown brands. locals have adopted the convenient products of other food service outlets. as alternative sources of convenient cooked food. Entry of major multi-national food service operators into major shopping destination in the late 1980s until the 1990s led to growth in competition in the marketplace. This growth is underpinned by market demand and lifestyle changes. mainly from fast food chains.• • • • • • • • Looks for speed of service Wants an entertaining and fun experience Insists upon a clean. Many of these local brands grew to become giant franchises that dominate the Middle East region. primarily U. there are many local chains that have also experienced growth by applying this system to their operations. Bahrains food service industry witnessed growth over 2005/2006 at 4 . Bahrain spending on "eating out" is continuing to increase. Al-safadi and Al-Smadi. Although there was a slowdown during the economic crisis. At the . which started in the early 1990s. Currently. which has more than doubled since 1988.5% in terms of units and transaction (Euro monitor). Pizza Hut and McDonald's.1 Trends in Food Service Retail According to government surveys. Increased convenience-seeking amongst younger Bharins who live in a hectic city today compared to the much slower pace of life that existed 20 years ago. especially the fast food outlets. friendly.2. Chicken Tikka. The growth in spending in the food service sector arises from a number of factors: • • • Increased wealth amongst Bahrain.3 Industry Analysis Despite the prolonged effects of the Asian Economic Crisis followed by political turmoil up to mid 2000s. such as Al baik. Much of this growth was contributed by the cafes/bars. McDonald's. its wide appeal is amongst a young population. This was the time when KFC. But the trend seems to have shifted in the last decade. especially those under the age of 40 years. both of international and local chains.
with big players such as KFC.3.3 Main Competitors • • • • • Starbucks Mc Donald’s KFC Pizza Hut Gloria Jeans 4. In attracting customers to try our food. account for 65% of foreign brands.1 Competitive Edge • Our unique idea. increased investment from foreign and local businesses in the sector has also produced an increase in the numbers of: • • • Foreign chains. . as they offer greater flexibility and lower franchise fees to operate. 4. etc. we will provide a see-through kitchen.3. 4. Starbucks. Usually there are a minimum of two of the same outlets within a radius of less than 300 meters." and as we go further. This will become our "market testing area. recipes and taste. we will open one outlet In one busy shopping street. as the competitors are offering substitutions and similar product categories. Local Franchising Around 70% of the franchises operating in Bahrain are foreign. Modern retail bakery/café outlets such as French connection.S.same time. Modern coffee shops such as Starbucks. ABC will to open another in nearby shopping malls.2 Competition and Buying Patterns The competition in this arena is the fiercest in all other metropolitan areas in Middle East Bahrain is a compact city. including chains such as Outback Steakhouse. Strategy and Implementation Summary At first. Home grown franchises are still in their maturing stages as they start to expand globally. but has a lot to offer. so that people will see how we are committed to freshness in our products. Another reason is because many retailers do not want to lose sales opportunity. Home grown franchises are more often sought more by young entrepreneurs than are their Western counterparts. Pizza Hut. home grown franchises are more efficient in the overall supply chain management as the basic raw ingredients are commonly found anywhere in the region.3. Franchises from the U. 5. Unlike Western license holders. The kitchen will also let out an aroma of our freshly make food into the surroundings area. so that people will come and try our products.4 Foreign Vs.
Product names are geared toward the target market (teens). meaning that 1. • In-Store Marketing o o o o o o o o o In-store brochures containing our concept and philosophy. then broader media will be explored." By providing a fun and energetic environment. Although. Standing signage inside malls’ lobby/aisle. • • Our logo is distinct as fresh. Party catering. such as merchandise.1 Pricing Strategy Our pricing strategy is positioned as "generic". Our most important tactic will be "word-of-mouth" and in-store marketing. Outdoor signage (if possible). followed by print ad. Therefore. As soon as a concentration of stores is established in a market. however. 100% fresh products Innovative packaging will position us at the same level with foreign fast food franchises. energetic and playful with color elements that are eye catching. The last marketing effort will be utilizing local media. . through the selling of supporting materials. Grand opening promotion.2. with unbeatable quality at an acceptable price in a clean and friendly outlet. Design concept. Concentration will be on maintaining quality and establishing a strong identity in the local market. that the best form of advertising is still "buzz. We believe.3 Marketing Programs We will deploy three different marketing tactics to increase customer awareness of ABC.2 Brand Challenges ABC must establish a distinct brand to stand out from the other Western-style fast food competitors. Wall posters. 5. Local store marketing is most effective. this tactic will be used sparingly as a supplement where necessary. We will start our first outlet as a "market tester" that could become a model of the expanding number of outlets in the future. 5. 5.2.2 Marketing Strategy Our strategy is based on serving our markets well. In-store viewing of making food from cutting to Cooking. we will be the talk of the town.• • • • Enthusiastic and friendly staff Supporting merchandise items that support company's brand building. The second tactic will be local store marketing.5BHD is the average consumer spending for a snack or light lunch in Bahrain. We will actively build our brand. This will be by far the cheapest and most effective of our marketing programs because of the high traffic in targeted shopping locations.2. this will be the most costly. the execution of our concept is the most critical element of our plan. Merchandising items. promotional items and other marketing gimmicks similar to those of other fast food franchises. 5. A combination of local media and local store marketing programs will be utilized at each location. These will be low-budget plans that will provide community support and awareness of our facility.
such as Free! Magazine.5 Milestones TBA Web Plan Summary The website will.3 Sales Strategy The sales strategy is to build and open new locations in order to increase revenue. We will price our products fairly. or order the item like potato cutters for delivery. this plan will be implemented when the one "market tester" outlet showed potential growth. show the visitors everything about fast food culture including the history of fast food over time.3. 5. the goal of each store is to maximize its annual sales.1 Sales Forecast TBA… but we can forecast like 30000 BHD per month after seeing and studying about other fast food retail outlets. However. Visitors can also download ABC' theme song as ring tones. To make the website interactive. . Free occasional t-shirts at local stores events. Newspaper campaign – placing several large ads throughout the month to explain our concept to the local area. 5.4 Strategic Alliances Our business requires a long relationship with raw suppliers as well as partner vendors.000 per year. As each individual location will continue to build its local customer base over the first three years of operation. 5.2. 5. ABC will offer gift cards and promotions via the Internet. 5. We will direct all of our tactics and programs toward the goal of explaining who we are and what we are all about. of course. • Local Media o o o o Direct mail piece – containing brochures sent to surrounding addresses. So we will find the best vendors in the market for our supplies. with the original flagship store expected to earn almost BHD 200. keep our standards high. history and news. so our visitors can print the promotional coupon in PDF format and bring it when they visit ABC.4 Positioning Statement Our main focus in marketing will be to increase customer awareness in the surrounding community. and execute the concept so that “word-of-mouth” will be our main marketing force. Local magazines that target our core customers. Web page – containing company philosophy.• Local Store Marketing o o Brochures.
Others that have helped on the development of this business venture will be offered an opportunity to grow together with the company at the appropriate time. Management Summary The initial management team depends on the founders themselves. By doing this. This will also allow us and future business partners to recoup investments as quickly as possible and enjoy a higher return. Part of our basic philosophy will be able to run our executive management as a "knowledge sharing" fellowship. the website itself will act as the medium for communication between our company and our audience.Besides the traditional formats of customer service hotline and in-store form. we will take on additional help in certain key areas. In the future. we will keep our overhead as low as possible. 7. 6. As the company will be small in nature. allowing us to provide staff adequately to our outlets. As we grow. 6. each location will have a primary site manager. and when the time comes.1 Website Marketing Strategy We will post banners on different websites. customers can now write their comments and suggestions on our website. ABC is being owned by its founders. which will be directed to one of our staff. it only requires a simple organizational structure. 7.2 Development Requirements To adequately serve our audience.2 Organizational Structure Not applicable now 7. At present time. the front end strategy of our website should be parallel with our corporate color.1 Management Team ABC is currently the creative idea. We will not add additional overhead until absolutely necessary. with little back-up. our website will show information on franchising/licensing our brand name. the founders’ share will be consolidated as one entity.3 Personnel Plan . So. This will mean that the initial staff support team will have to work extra. As we expand into multiple locations.
In the long run. two cooks and two bus boys per location. including site managers. Payroll for one year for 12 hrs shift No of employees Salary(BHD) For one employee 0 2 7200 2 5760 2 4680 6 Total(BHD) Site Managers Cashiers Cook Busboy Total 14400 11520 9360 35280 Monthly Expenditures and profits: (BHD) Considering the double shifts each of 12 hrs Salaries: Rent: Merchandise: Misc: Labor accommodation: Total expenditures: 5880 800 5000 1000 200 12880 BHD . This is considered an ideal personnel number for a food outlet the size of our own.Our initial employees will include two cashiers. we will employ more people in the middle management to ensure the focus of our work. as we expand our product category and retail outlets. with one of each on the premises during open hours. Each employee will work for 70 to 84 hours per week.
5 BHD from one customer Then The total sale per day Total sale per month Total profit approximately 500X1. and Bahrain economy. These figures can be different 5 to 10 % from actual.If we take at the less 500 customers per day means 20.5 = 750 BHD 750X30 = 22500 BHD 22500-12880 = 9620 BHD/ month All the statistical figures used in this report are taken from different websites about Bahrain.83 customers per hours and approximately 1. ____________________ .