Festi Fries - Simplified Business Plan - v0

AFRICAN LEADERSHIP UNIVERSITY
Student Ventures Programme

Festi Fries Business Plan
Confidentiality
Agreement
This agreement is to
acknowledge that the
information provided
by Festi Fries in this
business plan is unique
to this business and
confidential;
therefore, anyone
reading this plan
agrees not to disclose
any of the
information in this
business plan without
the express written
permission of Festi
Fries.
It is also acknowledged by the reader of this business plan that the information furnished in this
business plan, other than information that is in the public domain, may cause serious harm or
damage to Festi Fries and will be kept in the strictest confidence.
Upon request, this document is to be immediately returned to Festi Fries.
This is the business plan for Festi Fries. The presentation of this business plan does not imply an
offering of securities.

Section 1: Executive Summary 5

Mission 6
Start-up Summary 6
Section 2: Business/Industry 8
Section 3: Product 9
What are Festi Fries? 9
Product Description 9
Section 4: Market Analysis and Competition 10

Market Analysis Summary 10
Market Segmentation 10
Target Market Segment Strategy 12
Market Needs 12
Competition and Buying Patterns 13
Main Competitors 13
SWOT Analysis (nxt page) 13
Competitive Edge 14
Section 5: Sales and Marketing Plan 14

Pricing Strategy 15
Payment Options 15
Brand Challenges 15
Marketing Programs 16
Positional Statement 17
Sales Forecast 17
Strategic Alliances 20
Milestones 20
Section 6: Ownership and Management 21

Management Summary 21
Management Team 21
Organization Structure 21
Personnel Plan 22
Section 7: Operation Plan 23

Current stage of Development 23
Facilities (Cooking Station) 24
Staffing 25
Roles and Responsibilities 26

Start-up Funding 27
Projected Profit and Loss 28
Section 8: Appendices 32
Section 1: Executive Summary


Festi Fries is a standard and registered chain of fast food restaurant that with strong bias in the
production of fresh potato French fries that will be located on Rwanda ALU Campus but also has
the hopes to spread out via franchising to key universities in the Special Economic Zone within the
first 5 years of operations.
Festi Fries will provide a combination of excellent food at value pricing, with fun packaging and
atmosphere. Festi is the answer to an increasing demand for snack-type fast food, to be consumed
while strolling around inside the school campus.
In today's highly competitive environment, it is becoming increasingly difficult to differentiate one

fast food outlet from another. We are still at the initial stage of sourcing equipment for the
business and also leasing some food outlet space from the ALU Student Ventures Life and Student
Life team to fit into the design of the kind of fast food restaurant that we intend launching.
Festi Fries will be involved in the sale of French fries / potato chips and sodas et al in our
moveable stall and when customers order for it to be delivered to them in any location around us.
We are aware that there are several large and small scale food ventures that will be scattered all
around the ALU Rwanda campus , which is why we spent time and resources to conduct our
feasibility studies and market survey so as to offer much more than our competitors will be
offering.
We have delivery service options for our customers (students and stuff) around the campus, and
our outlet is well secured with the various payment options. Festi Fries will ensure that all our
customers are given first class treatment whenever they visit fast food outlet.
We also plan to have a CRM software that will enable us to manage a one on one relationship with
our customers no matter how large the numbers of our customers’ base may grow to. We will
ensure that we get our customers involved when making some business decisions that directly
affect them.
We are aware of the trend in the snacks food production / fast food industry and we are not only
going to operate a system where our customers would have to come to post to make purchase or
whatever they want but we also want to provide an exceptional packaging experience for the ALU
family with flavors capturing the first bite, succulent and lip smacking that would satisfy the
palatial taste of our customer.
Festi Fries is a student venture that is co-owned by Kudakwashe , Nathan Kuchena and Comfort
Sibanda. Kudakwashe Mavuru will serve as the point person of communication.
This plan is prepared to obtain a location for the initial launch of this concept. Additional financing
will need to be secured for the first outlet. The financing, in addition to the capital contributions
from shareholders, will allow Festi Fries to successfully open and expand through year two. The
initial capital investment will allow Festi Fries to provide its customers with a value-driven,
entertaining experience through the creativity of its founders.
Mission
Our main goal is to be one of the most successful fast food outlets in universities, starting with one
retail outlet located inside the new ALU Rwanda Campus as a "market tester."

Festi Fries 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, all with our official brand attached to them.
Our main focus will be serving high-quality food at a great value.
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 funds to open more than one outlet, we
want to be on the safe side of the business.
❏ Sell the products that are of the highest quality, as well as keeping the customers happy
with all of our product categories from food to store merchandising.
❏ Provide 100% satisfaction to our customers and maintain the level of excellent services
among other competitors.
❏ Encourage the two most important values in fast food business: brand and image, as these
two ingredients are a couple of main drivers in marketing communications.
❏ Get access to high-traffic near the target market.
❏ Promote good values of company culture and business philosophy.
Start-up Summary
The retail outlet will be rented at one of the target location school campuses. Our preference is
[the space located to us by the Student Ventures Program) , for the main reason of reaching larger
traffic.
Startup requirements will be financed through owner investments and other investment sources.

Start-Up Expenses Amount (RWF)

Double Burner Portable Outdoor Propane Gas Grill 467,500
Premium Weatherproof Outdoor Heavy-Duty
Griddle Cover, Black 46,750
Gas & Cylinder (20kg) 75000
Fixtures 20000
Furniture 50000
Kitchen Utensils 45000
Rent 100000
Legal 300000
Packaging (30,000) + Customized logo 2805000
Contingencies 60000
Total Start-Up Expenses 3,969,250
Start-up Assets
Cash Required 1,000,000
Other Current Assets
Long-term Assets
Total Assets 1,000,000
Total Requirements 4,969,250
Section 2: Business/Industry

French fries food business belongs to the Snacks Food Production industry and operators in this
industry primarily produce snack foods such as potato and corn chips, pretzels, roasted and salted
nuts, nut butters, popcorn and other related snacks.
Most players in this industry do not produce cookies, crackers, bakery products, cereal or granola
bars et al. French fries are generally served hot, either soft or crispy, and are usually eaten as part
of lunch or dinner or by themselves as a snack, and they generally appear on the menus of fast
food restaurants.
If you are a close observer of happenings in the Snack Food Production industry, you will agree
that the industry has profited from increased demand over the last half a decade. As the economy
has continued to experience growth, discretionary income levels have ascended.
Hence, renewed consumer spending has increased sales of potato and tortilla chips, along with
nuts and seeds. With improvement in the economic conditions, the industry is expected to take
more revenue. Expected increases in per capita disposable income will aid some consumers to
trade up to premium brands and product segments, helping drive revenue growth.
In addition, as consumers demand more healthy versions of existing snacks, players in the industry
are expected to introduce a wider variety of products. The Snack Food Production industry is an
uprising and thriving sector of the economy of East African countries 1, particularly in Rwanda.
The industry is responsible for the employment of well over 53,204 people. Experts project The
Fast Food Restaurants industry to grow at a 3.6 percent annual rate from 2016 to 2021. Over and
above, the French fries food production line of business is a profitable industry and it is open for
any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a
small scale in a street corner like the average mom and pop business or you can chose to start on a
large scale with several outlets in key cities with particular focus on specific customer segment.
Our Market Objectives
❏ To establish a presence as a successful local fast food outlet and gain a market share in
universities’ food supply industry specifically the African Leadership University.
❏ To make Fresh Fries a destination spot for all students and staff.
❏ To expand into a number of outlets by year three,
Section 3: Product
What are Festi Fries?

FestiFries sells fries in Oil-proof packaging boxes with a choice of sauce. We use the concept of
Belgian Fries, where the fries are all made from fresh potatoes and fried twice. Our outlet also
provides excellent and friendly customer service to support the ambience of a fun, energetic and
youthful lifestyle.
1 "Interview: Running a snack food business in East Africa." 23 Apr. 2013,

https://www.howwemadeitinafrica.com/interview-running-a-snack-food-business-in-east-africa/25954/.
Accessed 8 Jun. 2020.

We want to focus only on selling fries. Alcoholic drinks will not be sold in our outlet, as Festi Fries
promotes a healthy and positive ALU lifestyle. Instead, we will offer ordinary sodas to
complement the fries. In promoting the Festi Fries lifestyle, we will offer various merchandise with
our logo and colors, from hats to t-shirts to potato cutters to our signature sauces, so that our
customers can enjoy Festi Fries even in the comfort of their home. Our signature sauce is
exclusively manufactured by Company Q. They can be also purchased at selected retailers.
Product Description
Festi Fries primarily sells fries and our unique dipping sauces. Main products sold are : Belgian
fries (with onion rings) , sodas and corporate merchandise at a later stage .
Belgian-style fries are available in large (choose 2 dips) and small (choose 1 dip).
2
Whether you eat your potato baked or fried, having the

perfect dipping sauce just adds enjoyment to your eating
experience. There are many delicious dipping sauces at your
option that are served by Festi Fries. Three of the common
ones that will be mainly served at our outlet are :
1. Mixed Mayonnaise , Ketchup , and white vinegar.

2. Lemon Aioli.
3. Barbecue Sauce for French Fries
Section 4: Market Analysis and

Competition
Market Analysis Summary
Consumer expenditures for fast food at the African Leadership University rose during the end of
the year 2019, followed by the increase in the number of students and stuff. The increasing
number of new establishments such as food franchises around the campus has shown a significant
growth in this sector. Food spending is around 70% of total consumer expenditures for ALU
students, and consumer spending on leisure and recreation is 13% of total consumer spending
according to a customer survey that we carried out.
2 "Crispy French Fries w/ Homemade Dipping Sauces | Life is ...." 9 Aug. 2016,
https://www.lifeisbutadish.com/crispy-french-fries-w-homemade-dipping-sauces/. Accessed 8 Jun. 2020.

A much broader appeal exists nearly on every weekday slot because students come to school
everyday.
❏ Age - Currently enrolled in the university.

❏ Friends unit - We will also appeal to groups of friends since students always reside in
influential clusters.
❏ Gender - We will target both sexes, with a slight skew for males due to their lower
attention to dietary concerns.
❏ Income - We will appeal to the medium income individuals and to all in the lower
medium income bracket.
Our concept will have very broad appeal. It is our goal to be the hip destination for fast food
cravings.
According to a recent survey of current students, 80% of those interviewed like fast food. 90% of
them like fast food on a regular basis, and 10% of them claimed that they like fast food "very
much," or "love" fast food. The survey also provided the following particular reasons for the
increasing popularity of fast food:
❏ Eating out still remains as ALU students' common habit of life.

❏ Most students love to walk around the campus to enjoy the scenery and fresh air, and
when they are strolling around, they need a quick bite to accommodate their activities.
Market Segmentation
We are targeting ALU students (over 1200) as our primary market. The new African Leadership
University Rwanda campus is renowned for its unusual and extraordinary workspace designs as
part of its model of motivation. At the school we believe that there is an energy of diversity in the
city itself and that is reflected in the workspace. As like the Google headquarters, 3 No part of the
campus is more than “150 feet from food”. Whether there is a restaurant, coffee lounge or
cafeteria, employees are encouraged to snack more, chat more and, most importantly, inspire
more. And also due to heavy extra-curricular activities amongst the students and tight time
schedules, it is common for university to have lunch inside on campus, and not at home. They tend
to flock to food joints inside the school.
3 "What can we learn from Google's offices about workplace ...." http://www.workspacedesign.co.uk/what-
can-we-learn-from-googles-offices-about-workplace-design/. Accessed 8 Jun. 2020.

Our secondary market segment is the "ALU staff." With about 12 food outlets in the vicinity, the
new ALU Rwanda campus is the haven for busy and hungry workers alike. In the new campus,
there will be more than 150 workers working around the clock.
Lastly, the new ALU Rwanda campus is also the destination for visitors in the Kigali Special
Economic Zone area. Festi Fries is the alternative for a quick bite while on exchange programs or a
pass by in the area.
Market Analysis
1 2 3 4 5
Potential
Customers Growth CARG
Students 25.00% 1200 1500 1875 2350 2950 19.54%
Staff 10.00% 150 165 181.5 200 220 7.92%
Visitors 20.00% 50 60 72 86 105 15.70%
Total 45.00% 1401 1607 1844 211 2427 35.46%

Target Market Segment Strategy

Festi Fries intends to cater to the bulk of students on the ALU Rwanda Campus. We have chosen
this group for several important reasons. 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. They are on limited or fixed incomes and seek a value/price relationship that will
not stretch their budgets.
Our secondary target is between the ages of 25 and 37, which are a heavy lounge/restaurant user
group. They are more flexible in budgets and seek more than a value/price relationship. Our lunch
strategy is dual purpose. First, we are featuring fresh fries to fill the campus's craving for fast food
as most ideas of lunch is a quick bite not a heavy meal. Second, we want to keep the price point at
lunch as fair as possible to keep us in competition with other fast food outlets. At 1000 Rwandan
francs for a medium size fries, we are only slightly above the segment, but we offer much more
excitement than the rest of the competition.
Market Needs
Festi Fries sees our targeted market group as having many "kurya" (eating) Rwandan Franc needs.
A recent Consumer Trend and Analysis done by a team member identified the following needs
among our target markets. Our core group:
❏ Wants variety and flavor in its food, preferably something fried

❏ Looks for speed of service
❏ Wants an entertaining and fun experience
❏ Insists upon a clean, friendly, and attractive environment
❏ Adopts a global lifestyle
❏ Is computer literate
❏ Enjoys eating out
❏ Has an active lifestyle
❏ Comes from various ethnic backgrounds
According to Potato Pro , annual consumption is a very high 125 kg per person, making potato the
country's second most important source of calorie intake after cassava. Currently, Rwanda has
over 70,000 potato farmers grouped in 30 cooperatives that produce over 19, 000 tonnes
monthly during the harvesting season.4
4 "Rwanda - PotatoPro." https://www.potatopro.com/rwanda/potato-statistics. Accessed 8 Jun.

2020.

Competition and Buying Patterns

ALU Rwanda campus is compact space , but has a lot to offer. At the moment there will be a
maximum of 10 food outlets plus 2 restaurants within a radius of less than 500 meters.
Main Competitors
At the moment the main competitors that will be on the new campus are not known due to the
new set up. Little information is known about the other food outlets that already existed on the
old campus that include :
1. Coffee shop
2. Ice Cream parlor
3. Pre-packaged jollof rice , potato chips , meat etc.
4. Pie and samosa outlets
5. Plantain chips by Victorien
6. Fruit salad lunch boxes.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position
our business to maximize our strength, leverage on the opportunities that will be available to us,
mitigate our risks and be well equipped to confront our threats.
SWOT Analysis
Strengths Weaknesses Opportunities Threats
The business model we A major weakness that may The fact that we are going to be Just like any other business,
will be operating on count against us is the fact operating our fast food outlet in one of the major threats
varieties of payment that we are a new French one of the busiest campuses that we are likely going to
options, pricing of the fries food – business and we provides us with unlimited face is economic downturn.
French fries, and soft don’t have the financial opportunities to sell our French It is a fact that the economic
drinks and our excellent capacity and credibility to fries / potato chips, water, juice, downturn affects
customer service culture compete with already and sodas et al to a large number purchasing / spending
will definitely count as a established food outlets. of people. power. Another threat that
strong strength for Festi may likely confront us is the
Fries. So also, we have a We have been able to conduct arrival of a new French fries

management team that thorough feasibility studies and food production business or
has what it takes to grow market surveys and we know fast food restaurant in the
a startup business from what our potential clients will be same location where ours is
survival to profitability looking for when they visit our located.
within the shortest time – fast food restaurant; we are well
frame. positioned to take on the
opportunities that will come our
way.
Competitive Edge
❏ Our unique dipping sauces blend local taste and international into one fusion recipe for the
signature sauce.
❏ Enthusiastic and friendly staff
❏ Our fries are made of 100% fresh potatoes, unlike the frozen fries that might be used by
competitors.
❏ Innovative packaging will position us at the same level with other fast food franchises.
Section 5: Sales and Marketing Plan

One thing about French fries / potato chips is that you can hardly find someone who doesn't
patronize them. As a matter of fact, most fast food restaurants now have a menu designed
specifically for veg and others depending on their food preferences.
Our strategy is based on serving our markets well. We will start our first outlet as a "market
tester" that could become a model of the expanding number of outlets in the future.
Concentration will be on maintaining quality and establishing a strong identity in the local market.
A combination of local media and local marketing programs will be utilized at our mini-station .
Local food stall marketing is most effective, followed by print ads. As soon as a concentration of
stores is established in a market, then broader media will be explored. We believe, however, that
the best form of advertising is still via "instagram." By providing a fun and energetic environment,
with unbeatable quality at an acceptable price in a clean and friendly outlet, we will be the talk of
the school. Therefore, the execution of our concept is the most critical element of our plan. We will
actively build our brand, through the selling of supporting materials, such as merchandise,
promotional items and other marketing gimmicks similar to those of other fast food franchises.
Pricing Strategy
Our pricing strategy is positioned as "generic", meaning that 1000 Rwandan Francs is the average
consumer spending for a snack or light lunch on campus. Leveraging the volume of fries, sodas, and
signature style sauces to be sold, we are serving the majority of the ALU family.

1000 RWF (dip included) Cheese Onion rings

400 RWF
Payment Options
The payment policy adopted by Festi Fries is all inclusive
because we are quite aware that different customers
prefer different payment options as it suits them but at
the same time, we will ensure that we abide by the financial
rules and regulation of Rwanda.
Here are the payment options that
Festi Fries will make available to
her clients;
1. Payment with cash.
2. Payment via mobile money
transfer.
Brand Challenges
Festi Fries must establish a distinct
brand to stand out from the other
fast food competitors.
Our logo is distinct as fresh, energetic and playful with color

elements that are eye-catching.
Our packaging is designed to enhance customer experience (by

putting dip right on the side ) and plump up our margins. Logo will
also be on the packaging
Promotional names geared toward the target market (students),

with items such as "Frenzy Festi" or “Festi Fridays" or “Fries
before Guys” which are fun and easy to remember.

Marketing Programs
We will deploy three different marketing tactics to increase customer awareness of Festi Fries.
Our most important tactic will be "word-of-mouth" and in-store marketing. This will be by far the
cheapest and most effective of our marketing programs because of the high traffic in targeted
shopping locations.
The second tactic will be local store marketing. These will be low-budget plans that will provide
community support and awareness of our facility. The last marketing effort will be utilizing local
media. Although, this will be the most costly, this tactic will be used sparingly as a supplement
where necessary.
❏ In-Store Marketing
❏ Brochures containing our concept and philosophy.

❏ Wall posters.
❏ Design concept.
❏ In-store viewing of making fries process from cutting to frying.
❏ Standing signage inside campus.
❏ Outdoor signage (if possible).
❏ Grand opening promotion.
❏ Party catering.
❏ Merchandising items.
❏ Local Store Marketing

❏ Brochures.
❏ Free occasional t-shirts at local stores events.
❏ Local Media
❏ Direct email marketing – via Student Life , SRC .

❏ Local school magazines.
Positional Statement

Our main focus in marketing will be to increase customer awareness in the surrounding
community. We will direct all of our tactics and programs toward the goal of explaining who we
are and what we are all about. We will price our products fairly, keep our standards high, and
execute the concept so that “word-of-mouth” will be our main marketing force.
Sales Forecast
One thing is certain when it comes to fast food restaurant business, if your fast food restaurant is
centrally positioned, you will always attract customers cum sales and that will surely translate to
an increase in revenue generation for the business.
We are well positioned to take on the available market at the new ALU Rwanda campus and we
are quite optimistic that we will meet our set target of generating enough income / profits from
the first six month of operations and grow the business and our clientele base.
We have been able to critically examine the snack food production / fast food industry and we
have analyzed our chances in the industry and we have been able to come up with the following
sales forecast. The sales projections are based on information gathered on the field and some
assumptions that are peculiar to similar startups doing french fries on a small scale.
As each individual location will continue to build its local customer base over the first three years
of operation, the goal of our food outlet is RWF 14, 000, 000 in annual sales
We anticipate the highest peak in the months of February to April in our sales forecast, due to the
arrival of the new first years. In December and January, there is a general holiday break meaning
we only operate for 2 weeks in those months. In the last month of the first year of operation, we
plan to introduce our first merchandise.

Year 1 Year 2 Year 3 Year 4 Year 5

Unit Sales

Fries 14250 17100 20520 25650 32063

Sodas 2800 3220 3703 4444 2133
Merchandising 12 12 13 14 15
Signature Packaged Sauces 10773 11312
Total Unit Sales 17062 20332 24236 30107 34210
Unit Sales Year 1 Year 2 Year 3 Year 4 Year 5

Fries 1000 1000 1000 1000 1000
Sodas 400 400 400 400 400
Merchandising 10000 10000 10000 10000 10000
Sales
Fries 14250000 17100000 20520000 25650000 32062500
Sodas 1120000 1288000 1481200 1777440 853171.2
Merchandising 115000 120750 126787.5 136930.5 147884.94
Total Sales 15485000 18508750 22127987.5 29718970.5 35325886.14
Direct Unit Costs Year 1 Year 2 Year 3 Year 4 Year 5

Fries 600 600 600 500 500
Sodas 300 300 300 300 300
Merchandising 8000 8000 8000 8000 8000
Direct Cost of Sales
Fries 8550000 10260000 12312000 12825000 16031250
Sodas 840000 966000 1110900 1333080 639878.4
Merchandising 92000 96600 101430 109544.4 118307.952
Subtotal Direct Cost of
Sales 9482000 11322600 13524330 15344924.4 17920601.35
Strategic Alliances
Our business requires a long relationship with raw suppliers as well as partner vendors.

Milestones
During the initial set up of the company, the 3 founders (Kudakwashe Mavuru, Nathan Kuchena ,
and Comfort Sibanda) will conduct the planning and implementation in building the brand and the
procurement of our first outlet. The planning and procurement will take approximately 3 months,
in addition to the revision and refinement process that will take the rest of the 3rd month period
before our opening in early September 2020.
Milestones
Milestone Start Date End Date Budget Manager Department
Presentation materials for 01/06/2020 30/06/2020 Kudakwashe Business Dev

all stakeholders
Follow up with suppliers 30/06/2020 20/07/2020 Kudakwashe Business Dev
Follow up with developers 30/06/2020 20/07/2020 Kudakwashe Business Dev
Printing materials 20/08/2020 30/08/2020 Nathan Marketing
Marketing communication 01/08/2020 20/08/2020 Nathan Marketing

program
Procurement 20/07/2020 30/08/2020 Kudakwashe Business Dev
In store signage, POP 20/08/2020 30/08/2020 Nathan Marketing
Grand opening materials 20/08/2020 30/08/2020 Nathan Marketing
Hiring staff 20/07/2020 30/07/2020 Comfort Human

Resources
Training staff 30/07/2020 30/08/2020 Comfort Human

Resources
Totals
Section 6: Ownership and Management
Management Summary
The initial management team depends on the founders themselves, with little back-up. As we
grow, we will take on additional help in certain key areas. Part of our basic philosophy will be able
to run our executive management as a "knowledge sharing" fellowship. We will not add additional

overhead until absolutely necessary. This will mean that the initial staff support team will have to
work extra. By doing this, we will keep our overhead as low as possible, allowing us to adequately
staff our outlets. This will also allow us and future business partners to recoup investments as
quickly as possible and enjoy a higher return.
At present time, Festi Fries is being owned by its 3 founders. Others that have helped in the
development of this business venture will be offered an opportunity to grow together with the
company at the appropriate time, and when the time comes, the 3 founders’ shares will be
consolidated as one entity.
Management Team
Festi Fries is currently the creative idea of its three founders. As the company is small in nature, it
only requires a simple organizational structure. Implementation of this organization form calls for
all three individuals to make all major management decisions in addition to monitoring all other
business activities.
Organization Structure
Future organizational structure will include a director of store operations when the locations
exceed four units. We hope that this individual will come out of the ranks of our stores’
management. This will provide a supervisory level between the executive level and the store
management level.
Current plan is to have our accounting and payroll functions done by an in-house bookkeeping.
Mr. Kudakwashe Mavuru will be responsible for accounting and business development of Festi
Fries, helped by Mr. Comfort Sibanda, acting Head of Human Resources Division. Possible
positions might be added at a later date include marketing manager, purchasing manager,
controller, human resources, R&D and administrative support team.
Personnel Plan
Our initial employees will include one cashier and two cooks, with one of each on the premises
during open hours. This is considered an ideal personnel number for a food outlet the size of our
own. Each employee will work for 38-40 hours per week.
In the long run, as we expand our product category and retail outlets, we will employ more people
in the middle management to ensure the focus of our work, including site managers.

Personnel Plan
Cashier 560,000 640,000 720,000 800,000 800,000
Cook 1,600,000 1,760,000 2,000,000 2,400,000 2,400,000
Sales and Marketing 560,000 640,000 640,000
Admin Support 800,000 1,200,000
Total 2,160,000 2,400,000 3,280,000 4,640,000 5,040,000
Section 7: Operation Plan
Current stage of Development

This business plan is the one of the initial steps in our operating plan. One the most vital step that
we have also taken is launching continuous market and feasibility studies to make sure our idea is
feasible
Production Process
The production process of making french fries(small line):

Research papers referring to the quality of French fries generally discuss appearance, colour,
flavour, texture, and oil uptake. Also, the oil used for frying is important for the quality and,
recently, the formation and amount of acrylamide have become a quality issue.5
The production stages of Festi French Fries will follow the following processings (some of which
will be done onsite)
1. Potato Size Grading

2. Peeling and Washing
3. Cutting
4. Sorting Defects
5. Branching
6. Dewater
7. Frying
8. Deoil
9. Seasoning
Facilities (Cooking Station)

Youthful and fresh surroundings
We will imitate successful establishments, such as
Starbucks, which represent the majority of our core
target market, between 18 to 35 years of age. Our
food outlet will feature display cooking of our
featured Belgian Fries from cutting to frying. Our
customers will also be able to read our in-house
5 "Process innovation and quality aspects of French fries." https://edepot.wur.nl/121683. Accessed 9 Jun.
2020.

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drop-down side tables made to be compact and
portable for a diverse selection of outdoor & in-
door cooking applications. Add-on the flat top
griddle and deep fryer to the cook station for
teppanyaki-style grilling or deep frying all kinds
of foods. This outdoor cooking stove is perfect for
on-the-go cooking.. Easily transport the double
burner stove on and off the cooking site using it
built in. swivel caster wheels for quick mobility and easy transport. The stove is constructed with a
heavy-duty cast-iron metal frame and finished with heat resistant coating to ensure long-lasting
durability and corrosion resistance. It has cookware hanging racks to hold all your cooking pots,
cooking utensils and kitchenware effortlessly onto the rack. The mounted propane burner design
is safe and efficient for securing propane gas tanks safely beneath the stove top.
Specifications
Cost 467500 RWF
Supplier The Home Depot/Amazon/Simba
Assembled Depth (cm) 144.78


Assembled Height (cm) 48.26
Assembled Width (cm) 114.3
Primary Cooking Space (sq. (cm)) 1259.84
Number Of Main Burners 2
Other Items needed :

1. Potato Peelers
2. Spiders or skimmers
3. Splatter screen
4. Rack and sheet pan
5. Frying thermometer
6. Knives and Potato Chip Slicer
7. 4 big dishes
8. Paper towels
The space selection will be chosen based upon the following criteria:
❏ Community size: minimum of 500 people within a radius of 800 meters.
❏ Near the Food Court.
❏ Easy access.
❏ Large percentage of teenagers in the community.
All of these qualities are consistent with Festi Fries' goal of providing a top quality fast food
experience. We want "word-of-mouth" to be our best form of marketing, where our customers
value our brand as something exciting and cannot wait to tell their friends and neighbors.
Open every week day

Our outlet is open everyday from 9 am to 8 pm.
Staffing
We will ensure that we hire people that are qualified, honest, customer centric and are ready to
work to help us build a prosperous business that will benefit all the stakeholders (the owners,
workforce, and customers). As a matter of fact, a profit-sharing arrangement will be made
available to all our senior management staff and it will be based on their performance for a period
of ten years or more.
In view of that, we have decided to hire qualified and competent hands to occupy the following
full-time positions;

❏ Chef / Kitchen Workers

❏ Accountant / Cashier
❏ Sales and Marketing Manager (Year 3 or Year 4)
Roles and Responsibilities
Chef / Kitchen Staff
❏ Responsible for producing French fries/potato chips.

❏ In the authority of carrying out all casual or unskilled jobs at the food outlet.
❏ Responsible for packaging French fries/potato chips.
❏ Responsible for cleaning the facility at all times.
❏ Handles any other duty as assigned by managers.
Accountant / Cashier:
❏ Responsible for preparing financial reports, budgets, and financial statements for the
organization
❏ Provides management with financial analyses, development budgets, and accounting
reports; analyzes financial feasibility for the most complex proposed projects;
conducts market research to forecast trends and business conditions.
❏ Responsible for financial forecasting and risk analysis.
❏ Performs cash management, general ledger accounting, and financial reporting
❏ Responsible for developing and managing financial systems and policies
❏ Responsible for administering payrolls
❏ Ensures compliance with taxation legislation
❏ Handles all financial transactions for the organization
❏ Serves as an internal auditor for the organization
N:B: Training of all staff will be contacted a month before the food outlet opens. Topics like
hygiene, responsibilities, recipes, and evaluations will all be covered in the sessions.
Section 7: Financial Plan

The company is now privately held by Kudakwashe Mavuru, Nathan Kuchena, Comfort Sibanda.
Future shares will be offered after four consecutive years of operating.
Start-up Funding
Currently, the company is owned by the original 3 founders, who each will contribute 450,000
RWF for the same amount of share, 25%. This amount is still very few to cover start-up
requirements and provide the business with a cash cushion to use for expansion over the first

three years. Therefore the remaining gap will be closed through investments from other parties
and a loan.
START-UP FUNDING
Start-up Expenses to Fund 3,969,250
Start-up Assets to Fund 1,000,000
Total Funding Required 4,969,250
Assets
Non-cash Assets from Start-up 0
Cash Requirements from Start-up 1,000,000
Additional Cash Raised 500000
Cash Balance on Starting Date 1,500,000
TOTAL ASSETS 1,500,000
Liabilities and Capital
Liabilities 0
Current Borrowing 1,000,000
Long-term Liabilities 0
Accounts Payable (Outstanding Bills) 0
Other Current Liabilities (interest-free) 0
Total Liabilities 1000000
Capital
Planned Investment
Kudakwashe Mavuru 450,000
Nathan Kuchena 450,000
Comfort Sibanda 450,000
Additional Investment Requirement 3,469,250
TOTAL PLANNED INVESTMENT 4,819,250
Loss at Start-up (Start-up Expenses) 3,969,250
TOTAL CAPITAL 850,000
TOTAL CAPITAL & Liabilities 1,850,000

Projected Profit and Loss


PRO FORMA PROFIT AND LOSS

Sales 15485000 18508750 22127987.5 29718970.5 35325886.14
Direct Cost of Sales 9482000 11322600 13524330 15344924.4 17920601.35
Other Costs of Sales 0 0 0 0 0
Total Cost of Sales 9482000 11322600 13524330 15344924.4 17920601.35
Gross Margin 6003000 7186150 8603657.5 14374046.1 17405284.79
Gross Margin % 38.77% 38.83% 38.88% 48.37% 49.27%
Expenses
Payroll include PAYE 2,160,000 2,160,000 3,160,000 4,400,000 4,400,000
Marketing/Promotion 80000 80000 80000 80000 80000
Depreciation 0 0 0 0 0
Maintenance and repairs 30000 50000 50000 50000 50000
Transport 160000 160000 160000 160000 160000
Rent 200000 200000 200000 200000 200000
Utilities & Supplies 300000 300000 300000 300000 300000
Total Operating Expenses 2,930,000 2,950,000 3,950,000 5,190,000 5,190,000
Profit Before Interest and
Taxes 3,073,000 4,236,150 4,653,658 9,184,046 12,215,285
EBITDA 3,073,000 4,236,150 4,653,658 9,184,046 12,215,285
Interest Expense 0 0 0 0 0
Taxes Incurred 921900 1270845 1396097.25 2755213.83 3664585.436
Net Profit 2,151,100 2,965,305 3,257,560 6,428,832 8,550,699
Net Profit/Sales 13.89% 16.02% 14.72% 21.63% 24.21%
PRO FORMA Cash Flow

Cash Received
Cash from Operations
Cash Sales 15485000 18508750 22127987.5 29718970.5 35325886.14
SUBTOTAL CASH FROM
OPERATIONS 15485000 18508750 22127987.5 29718970.5 35325886.14
Additional Cash Received

Sales Tax, VAT, HST/GST Received 0 0 0 0 0

New Current Borrowing 0 0 0 0 0
New Other Liabilities (interest-
free) 0 0 0 0 0
New Long-term Liabilities 0 0 0 0 0
Sales of Other Current Assets 0 0 0 0 0
Sales of Long-term Assets 0 0 0 0 0
New Investment Received 0 0 0 0 0
SUBTOTAL CASH RECEIVED 15485000 18508750 22127987.5 29718970.5 35325886.14
Expenditures Year 1 Year 2 Year 3 Year 4 Year 5
Expenditures from Operations
Cash Spending 2,160,000 2,160,000 3,160,000 4,400,000 4,400,000
Bill Payments 770000 790000 790000 790000 790000
SUBTOTAL SPENT ON
OPERATIONS 2,930,000 2,950,000 3,950,000 5,190,000 5,190,000
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out 0 0 0 0 0
Principal Repayment of Current
Borrowing 1000000 0 0 0 0
Other Liabilities Principal
Repayment 0 0 0 0 0
Long-term Liabilities Principal
Repayment 0 0 0 0 0
Purchase Other Current Assets 0 0 0 0 0
Purchase Long-term Assets 0 0 0 0 0
Dividends 0 0 0 0 0
SUBTOTAL CASH SPENT 3,930,000 2,950,000 3,950,000 5,190,000 5,190,000
Net Cash Flow 11,555,000 15,558,750 18,177,988 24,528,971 30,135,886
Cash Balance - - - - -

PRO FORMA BALANCE SHEET

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Assets
Current Assets
Cash - - - - -
Other Current Assets 0 0 0 0 0
TOTAL CURRENT ASSETS 0 0 0 0 0
Long-term Assets
Long-term Assets 0 0 0 0 0
Accumulated Depreciation 0 0 0 0 0
TOTAL LONG-TERM ASSETS 0 0 0 0 0
TOTAL ASSETS 0 0 0 0 0
Liabilities and Capital
Current Liabilities
Accounts Payable 870000 590000 590000 590000 590000
Current Borrowing 1000000
Other Current Liabilities
SUBTOTAL CURRENT 1870000 590000 590000 590000 590000
LIABILITIES
Long-term Liabilities 0 0 0 0 0
TOTAL LIABILITIES
Paid-in Capital 4,819,250 4,819,250 4,819,250 4,819,250 4,819,250
Retained Earnings 3,969,250
Earnings 3,073,000 4,236,150 4,653,658 9,184,046 12,215,285
TOTAL CAPITAL 3,923,000 9,055,400 9,472,908 14,003,296 17,034,535
TOTAL LIABILITIES AND - - - - -
CAPITAL
Net Worth 3,923,000 9,055,400 9,472,908 14,003,296 17,034,535

Section 8: Appendices
This section contains detailed information or support documents to backup claims made
in other sections of the business plan. It will contain information as the following
● Resumés of the owners and key employees.
● information about your products/services.
● Site/building/office plans.
● Copies of mortgage documents, equipment leases, etc. (or quotes on these).
● Marketing brochures and other materials.
● Links to your business website.
● Any other supporting material that may impress potential lenders or investors if
you are looking for financing.

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AFRICAN LEADERSHIP UNIVERSITY

Student Ventures Programme

Student Ventures Programme

Section 1: Executive Summary 5

Section 4: Market Analysis and Competition 10

Section 5: Sales and Marketing Plan 14

Section 6: Ownership and Management 21

Section 7: Operation Plan 23

Student Ventures Programme

Section 1: Executive Summary

Student Ventures Programme

In today's highly competitive environment, it is becoming increasingly difficult to differentiate one

Student Ventures Programme

Our main focus will be serving high-quality food at a great value.

Student Ventures Programme

Start-Up Expenses Amount (RWF)

Student Ventures Programme

❏ To expand into a number of outlets by year three,

What are Festi Fries?

1 "Interview: Running a snack food business in East Africa." 23 Apr. 2013,

Student Ventures Programme

Whether you eat your potato baked or fried, having the

1. Mixed Mayonnaise , Ketchup , and white vinegar.

Section 4: Market Analysis and

Market Analysis Summary

Student Ventures Programme

❏ Age - Currently enrolled in the university.

❏ Eating out still remains as ALU students' common habit of life.

Student Ventures Programme

Student Ventures Programme

Target Market Segment Strategy

❏ Wants variety and flavor in its food, preferably something fried

4 "Rwanda - PotatoPro." https://www.potatopro.com/rwanda/potato-statistics. Accessed 8 Jun.

Student Ventures Programme

Competition and Buying Patterns

Strengths Weaknesses Opportunities Threats

Student Ventures Programme

Section 5: Sales and Marketing Plan

Student Ventures Programme

1000 RWF (dip included) Cheese Onion rings

Our logo is distinct as fresh, energetic and playful with color

Our packaging is designed to enhance customer experience (by

Promotional names geared toward the target market (students),

Student Ventures Programme

❏ Brochures containing our concept and philosophy.

❏ Local Store Marketing

❏ Direct email marketing – via Student Life , SRC .

Student Ventures Programme

Student Ventures Programme

Year 1 Year 2 Year 3 Year 4 Year 5

Student Ventures Programme

Fries 14250 17100 20520 25650 32063

Unit Sales Year 1 Year 2 Year 3 Year 4 Year 5

Direct Unit Costs Year 1 Year 2 Year 3 Year 4 Year 5

Student Ventures Programme

Milestone Start Date End Date Budget Manager Department

Presentation materials for 01/06/2020 30/06/2020 Kudakwashe Business Dev

Follow up with suppliers 30/06/2020 20/07/2020 Kudakwashe Business Dev

Follow up with developers 30/06/2020 20/07/2020 Kudakwashe Business Dev

Printing materials 20/08/2020 30/08/2020 Nathan Marketing

Marketing communication 01/08/2020 20/08/2020 Nathan Marketing

Procurement 20/07/2020 30/08/2020 Kudakwashe Business Dev

In store signage, POP 20/08/2020 30/08/2020 Nathan Marketing