BUSINESS PLAN

ALLVINE'S FRUIT PARLOUR

P.O BOX 93291 - 80100

MOMBASA

0757130377

Allvinekyalo2@gmail.com

www.allvinefruitpalour.com

Allvine’s Fruit
Parlour
Taste every
momet

PRESENTED BY: ALLVINE NTHENYA KYALO

INDEX : 1061200972

PRESENTED TO : KENYA NATIONAL EXAMINATION COUNSIL

IN PARTIAL FULFILMENT FOR THE DIPLOMA IN FOOD

AND BEVERAGE MANAGEMENT

SUPERVISOR : MR OHASA AGGREY

NOVEMBER 2022

DECLARATION
This project is my original work and has not been presented for the award of a diploma in any
other institution.

NAME: ALLVINE NTHENYA KYALO

SIGN……….. Date……………….

SUPERVISOR NAME: MR. OHASA AGGREY

Sigh……………………. Date………………

ACKNOWLEGDEMENT

ii
I would like to acknowledge my supportive parents Mr and Mrs. kyalo, librarian and my
supervisor, Mr OHasa for the support and assistance he offered me throughout the completion
of this business plan.

DEDICATION

iii
This research project is dedicated to beloved parents for their encouragement and passion for
my studies and to my sister for their inspiration and continued support throughout my life.
Finally to my lecturer and friends who supported me throughout the course of the study to
attain my diploma. May God bless you all.

iv
 TABLE OF CONTENTS
DECLARATION.....................................................................................................................ii
ACKNOWLEGDEMENT.....................................................................................................iii
DEDICATION........................................................................................................................iv
EXUCUTIVE SUMMARY...................................................................................................viii
CHAPTER ONE.......................................................................................................................1
BUSINESSES DESCRIPTION................................................................................................1

1.1 Business Name...............................................................................................................1

1.2 Business Location and Address..................................................................................1

1.3 Forms of Ownership.....................................................................................................2

1.4 Type of Business............................................................................................................2

1.5 Product and Service......................................................................................................2

1.6 Justification.....................................................................................................................2

1.7 Goals of Business...........................................................................................................3

1.7.1 Short Term Goals....................................................................................................3

1.7.2 Long Term Goals....................................................................................................4

1.8 Entry and Growth Strategies.......................................................................................4

1.8.1 Entry Strategies.......................................................................................................4

1.8.2 Growth Strategies...................................................................................................6

CHAPTER TWO.....................................................................................................................7
MARKETING PLAN.............................................................................................................7

2.1 Customers.......................................................................................................................7

2.2 Marketing Share............................................................................................................8

2.2.1 Promotion and Advertising..................................................................................8

2.3 Completion.....................................................................................................................9

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 2.3.1 SWOT Analysis for the Competitors.................................................................10

2.4 Pricing Decision...........................................................................................................11

2.5 Sales Tactics..................................................................................................................12

2.6 Distribution Strategy...................................................................................................12

CHAPTER THREE...............................................................................................................16
ORGANIZATION AND MANAGEMENT....................................................................16

3.1 Organizational Plan....................................................................................................16

3.2 Management Team......................................................................................................16

3.3 Business Manager(S) And Qualifications................................................................16

3.4 Personnel, Number And Duties................................................................................16

3.5 Recruitment, Training And Promotion....................................................................18

3.5.1 Recruitment...........................................................................................................18

3.5.2 Training..................................................................................................................18

3.5.3 Promotion..............................................................................................................19

3.6 Remuniration And Incentives...................................................................................19

3.6.1 Remuneration.......................................................................................................19

3.6.2 Incentives...............................................................................................................20

3.7 Licenses, Permits, By-Laws........................................................................................20

3.7.1 Licenses..................................................................................................................20

3.7.2 Permits...................................................................................................................20

3.7.3 By-Laws.................................................................................................................20

3.8 Support Service............................................................................................................21

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CHAPTER FOUR.................................................................................................................22
OPERATIONAL/PRODUCTION PLAN.........................................................................22

4.1 Production Facilities And Capacity..........................................................................22

4.2 Production Startegy....................................................................................................23

4.3 Production Process......................................................................................................24

4.4 Regulations Affecting Operations.............................................................................24

CHAPTER FIVE....................................................................................................................26
FINANCIAL PLAN..............................................................................................................26

5.1 Pre- Operational Cost.................................................................................................26

5.2 Estimation Working Capital......................................................................................27

5.3 PROFORMA INCOME STATEMENT.....................................................................28

5.3.1 proforma income Statement For The Year Ended 2019.................................28

5.3.2 proforma income Statement For The Year Ended 2020..................................29

5.4 Quaterly proforma income Statement For The Year Ended 2021........................30

5.5 Proforma Income Statement for years ended 2019, 2020, 2021.............................31

5.6 Performa Balance Sheet..............................................................................................31

5.7 Calculation of Break Even Point..............................Error! Bookmark not defined.

5.8 Calculation of Profitability Ratios.............................................................................32

5.9 Designed Financing....................................................................................................32

Proposed Capitalization...................................................................................................33

APPENDIX: MAP..............................................................................................................34

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 EXUCUTIVE SUMMARY

The trade mark name of the business will be ALLVINE’S FRUIT PARLOUR and will
operate under the license of sole proprietorship business whereby it will be owned and run by
one person called ALVINE NTHENYA KYALO. The Fruit Parlour business will fall under
hospitality industry offering fruits, salads, cocktails, alcoholic and non-alcoholic beverages.
The products and services offered will be of high quality, unique, reliable, cheap and
affordable which will meet the customer’s expectations, demands and satisfaction. The Fruit
Parlour owner aspires to expand the business to other parts of the area for a period of one
year and also will be the best fruit parlour in the area and also in the whole country.

The proposed business targets people from all genders and age groups, backgrounds, religion
and all level of education who appreciate the value of food and beverage and the entire
hospitality industry, thus the fruit parlour will win much anticipated 50% of the markets in
the stiff competition parlour region in Mombasa Town. The main competitors are Classic
Fruit Parlour, Baraka Fruit Parlour, and Utumishi Parlour. Therefore, I believe that the high
quality, unique, reliable, cheap and affordable product services, good customer relationship
and good marketing and advertisings methods will keep and uphold ALLVINE’S FRUIT
POARLOUR reputation in the industry.

The management team will comprise of the General Manager Assistance, General Manager,
Marketing Manager, Cashiers and customer care. The subordinate staff will be waiters,
security officers, cleaners and electrician. To ensure and safeguard the employees wellbeing
for optimum performance all the employees will be covered by the insurance of the various
insurance companies such as liberty and AAR insurance companies with other monthly
incentives and remunerations. The trade license and permits will be sought from the county
and National Governments and other support services such as banking and legal consultations
in order to operate and run smoothly and efficiently as possible. To meet its expected
efficiency in operations, the management team will be composed of skilled professionals
whom will oversee the performance of its operations in the fruit parlor business.

viii
The products and services offered are of high quality, unique and reliable, cheap and
affordable which will meet the customer’s demands, expectations and satisfaction. The
technology used is simple, efficient and cost effective which is readily available. Allvine’s
Fruit Parlour and computer services will adapt to the changes in the technology used in the
hospitality industry and also the future. The Allvine’s Fruit and Parlour space will be enough
for the machines and equipments, customers and all the workers. All the machinery and
equipment will be located in the fruit parlour premises. Allvine's fruit parlour will only need
10 workers who are highly skilled and qualified and the total cost of labour per month will be
Ksh45, 000 per month.

The cost of rent, electricity and water will be ksh8, 000 per month. The All vine’s Fruit
Parlour owner expects to earn ksh45, 000 per month.

The business financial accounts will be monitored to protect the future potential and growth
of the enterprise. The initial working capital will be largely contributed from its two
properties as well as contributions from friends, family and partially on loans and grants. The
profit obtained from the business will thus run the enterprise, pay the employees and be
ploughed back to expand the enterprise.

ix
 CHAPTER ONE

BUSINESSES DESCRIPTION

1.1 Business Name

The name of the business will be ALLVINE’S FRUIT PARLOUR. The name has been
derived from the owners name. The fruits parlour will offer fruits, salads, cocktails, alcoholic
and non-alcoholic beverages.

1.2 Business Location and Address.

Allvine’s Fruit Parlour will be at Mikindani in Mombasa County. It will be located around
Mikindani Medical Health Centre opposite Kajembe High School. I have decided to locate it
there due to availability of market, i.e. high number of customers from both the hospital and
school. It’s also located near a busy road where the passer-by nay decide to quench their
thirst with fruit salads or the juice being offered due to the high temperature of Mombasa.

CHIEF’S CAMP KAJEMBE HIGH SCHOOL

NAIROBI HIGH WAY

MIKINDANI MEDICAL ALLVINE’S

FRUIT
PARLOUR

HEALTH CENTER

1
1.3 Forms of Ownership

This type of business is a sole proprietary, that is, it is owned and managed by an individual.
The benefit of using this type of ownership is that, the capital contributed may not be large.
The owner is the one who makes decisions for himself/herself; no one makes decision for
him/her. The profit attained, he/she is the one who benefits from it. A sole proprietors in a
position to create employment to others that is if the business has grown. Few legal
formalities are required to start the business. No corporate tax payments and also can take
place in the discretion of the sole proprietor.

1.4 Type of Business

The activities that may be included in this business may include purchasing all the fruits that
are required in the nearby market, wash them if necessary, peel them if required. One of them
may be cut to make salad while others may be blended to make different types of juices.
Since most of the fruits are perishable, you refrigerate them so that they do not go bad easily.
The sole proprietor may sell the product to the passers- by or he/she may come into contract
of agreement with the owner of the hospital or the principal of the nearby school so that he
can supply the product to the patients and students respectively.

1.5 Product and Service

All fruits and other products that are offered in ALLVINE’S Fruit Parlour are of good
quality. The salads, cocktails and juices are sold at affordable price, that is, they are cheap.
The unique of my business is that no other fruit salad around me sells all types of goods at the
same time and most of them do not offer self-service to their customers and that is a big
advantage over the competitor.

1.6 Justification

My service provides a statement of intent details on how I as an enterprise am going to

develop the business. T The business will be started in order to fulfill the needs of the people

2
in the area and where it will be operating. The fruit parlour will offer fruits, salads, cocktails,
alcoholic and non-alcoholic beverages. The products and services offered will be of high
quality, unique, reliable, cheap and affordable which will meet customers’ expectations,
demand and satisfaction than our competitors. The location of the business is of high demand
of new well established fruit parlour that is going to satisfy the people’s needs of high quality
products and services since the competitor’s product and services have been termed as of low
quality according to the arch and feedback from the customers in the area.

The degree of competition is higher due to the larger population doing the same fruit parlour
business in the area. The hospitality industry is developing rapidly as days go both regionally
and internationally considering that most people are well educated about the technology
which is hospitality and tourism and also have graduated from various colleges and
universities with a diploma or a degree in food and beverage and are looking for jobs hence
the business will offer employment to the people living around there.

The kind of technology applied in the fruit parlour industry is modernized due to the rapid
change in the level of technology. The machines and equipment used in the fruit and parlour
industry are modernized to meet the requirements of the customers. In the fruit parlour
industry the employees are required to be graduates from various colleges and universities
with a diploma or degree in hospitality and tourism. The basic capital required is ksh
300,000.

1.7 Goals of Business

1.7.1 Short Term Goals

To develop a start-up fruit parlour that business will provide cheap and affordable reliable
services to the customers in the area within the shortest period.

To provide high quality, unique, reliable, cheap and affordable products and services to our
customers compared to our competitors in the area with the shortest period.

To develop a fruit parlour whose primary goals is to exceed or meet customers’ expectations
within a short period.

3
To create employment opportunities to the local community within a short period.

To ensure we market our products and services via social media such as Facebook, whatsapp,
integral etc. Media such as televisions, radios, advertisements, internet and website and many
others to ensure our fruit parlour business is known to our customers and the product and
services we offer within a short period.

To make sure we maintain a good relationship with our customers in the area compared to
our customers within the shortest period.

1.7.2 Long Term Goals

To be the best and leading fruit parlour business in the area in the whole Mombasa County
compared to our competitors within a period of one year.

To grow and expand and expand the fruit parlour business to other parts in the area within
Mombasa county within a period of one year.

To attract and maintain our customers by providing them with a high, unique, reliable, cheap
and affordable products and services to our customers in the area compared to our
competitor.

To make sure we maintain good relationship with our customers within a period of one year.

1.8 Entry and Growth Strategies

1.8.1 Entry Strategies

Competitive advantage of my fruit parlour business

Allvines Fruit Parlour will mainly focus on providing high quality, cheap and affordable,
reliable products and services to our customers in the area compared to our competitors.

Weakness in the competition

4
The fact that the products and services we will offer will be of high quality, unique, reliable,
cheap and affordable that will target people from different places and different business will
give high advantage over our competitors.

The products and services that we will offer will meet and exceed the customer’s expectation
to our competitors in the area.

Pricing decisions

Allvine’s fruit parlour will establish the best pricing strategy system to guide our customers
on the nature of the products and services and their corresponding prices that will meet or
exceed customers expectations, local demands and expectations.

The prices and products and services that will offer will be cheap and affordable to our
customers in the area compared to our competitors.

Plans to attract and retain customers

Allvines fruit parlour will use a direct approach in marketing our products and services,
therefore we will develop a small simple website named www.allvinekyalo2@gmail.com that
will be used to market our products and services to our customers then will gradually
improve in both the market and online market

Social media such as facebook, whatsap, twitter, instagram and many other will also be used
to market our products and services.

Internet services, advertisments, bronchures will also be used to market our products and
services.

We will also offer discounts on the prices of the products of the products and services that we
will offer to our customers.

We will also market our products and services by ourselves by moving around the area
informing our customers on the products and services we offer.

5
All these plans and strategies will assist us to attract and retain our customers .This will give
us more advantages over our competitors.

The owner of the fruit parlour business will earn more profits and earn high level income.

1.8.2 Growth Strategies

Allvine’s fruit parlour will offer high quality, reliable, unique, cheap and affordable products
and services to our customers. This will help in the development and the growth of the fruit
business.

The owner of the fruit parlour business will open a bank account in order to deposit,
withdraw, save money, borrow loans so as to grow and expand the fruit parlour business.

The owner will also open new branches of the fruit parlour business to other parts in the area
where there is limited or no fruit parlour and also country wide.

The owner will also collaborate with other fruit parlour business owner in order to share and
exchange new ideas for the purpose of growth and the expansion of the fruit parlour business
in the hospitality industry.

The owner will maintain a good relationship with the customers and also carry out more
research and surveys after 6 months to understand the customers wish and depends and
competitors progress in order to improve the services offered to the customers and to identify
the weakness of the competitors.

6
 CHAPTER TWO

MARKETING PLAN

It’s a comprehensive document that describes how the business intends to advertise, market,
sell, offer its products and services to their customers. It is also describes the business
activities to their customers involved in accomplishing specific objectives within a set time
frame.

A customer is an individual that purchases the products and services offered by a certain
business.

Domestic customers are those products and services from the various business within their
country or county.

Allivine’s Fruit parlour is a small business that has developed plans and strategies that will
assist advertising, marketing, selling or offering its products and services.

2.1 Customers

Most of our potential customers who will come to purchase our products and services will be
students from nearby learning institutions such as universities, colleges, secondary schools,
primary schools and other people from different business considering that most of our
products and services are of high demand by our customers.

The other categories of people or customers that purchase our products and purchases from
our fruit parlour business come from government’s institutions, individuals, office, youths
and teenagers, religion centers and many others.

The people also receive a good income.

7
Our customers or people are well educated from different learning institutions such as
universities, colleges, technical schools, secondary schools and primary schools and have
attained diploma, masters, certificate PHD, who have the knowledge, ideas and skills about
the technology of the fruit parlour.

The purchasing patterns of the fruit parlour business will vary depending on the number of
customers who will come to purchase our products and services.

The approximate number of customers who will come purchase our products and services
will be approximate 150 people per day. Compared to our competitors, considering the
business will be located in a business center which is always busy.

There is a limited number of fruit parlour’s business around the area which will be of high
advantages over competitors.

2.2 Marketing Share

2.2.1 Promotion and Advertising

Allvine’s fruit parlour will promote and market its products and services on the following
ways:

Social media such as Facebook, whatsapp, twitter, integral will be used as a platform in
advertising, marketing and promoting our products and services.

Many people used social media for communication, selling and advertising their products and
services.

This will enable our products and services to be known to a wide range of people.

This will assist in attracting new customers to the fruit parlour ensuring that we maintain a
good relationship with our customers.

This will be the most cost effective way of promoting and advertising with our products and
services.

8
This will assist in portraying a good image of our fruit parlour to our customers regarding on
the products and services we offer.

The frequency of our advertisement will be thrice per month.

We will also move around the area advertising and marketing our products and services we
offer on a car like twice per month. This will cost us ksh 5,000.

All these method of marketing and advertising our products and services will help us in
providing high quality, unique, reliable, cheap and affordable products and services to our
customers.

The owner will earn a high level of income and get more products from the parlour business.

We will also portray a good of our fruit parlour to our customers and also help us maintain a
good relationship with customers.

Mass media such as TV and radio stations will be used in marketing and advertising our
products and services.

We will use TV stations such as citizen, KTN, NTV to advertise our products and
services .Radio stations such as radio citizen, Baraka FM, Radio Maisha and Pwani FM will
also be used for advertisement.

Mass media was chosen because many people watch television and listen to radios today.

This will make sure our products and services are known to a wide range of people.

This will also assist in attracting new customers to the fruit parlour and also ensuring we
maintain a good relation with the customers.

The frequency of advertisement will be twice per month and will be charged for a fee of ksh
500 which is cheap and affordable.

We will also use internet and create a website known as www.allvinekyalo@2.com that will
be used to market and advertise our products and services.

9
2.3 Completion

In any business that a person runs or starts a certain place, there must be competition from the
competitors.

The owner of the fruit parlour business must develop plans and strategies in order to
overcome the competitors and also know their weakness.

These are the list of competitors that Allvine’s fruit parlour has;

Class fruit parlour

It is located around kwa mwanzia region 3km from the main road .It is a small business
which has been operating in the area for 3years since it was started.it is owned by James
Omondi a business man. It has 15 employeers, its main products are fruits salads and juices.

Baraka fruit parlour

It’s located at Amani region 2km from the main road. It’s a small business which has been
operating in the area for 2years since it was started. It’s owned by Margaret Wanjeri an
entrepreneur. It has 10 employees. Its main products and services are fruit salads and juices.

Utumishi fruit parlour

It’s located at Kibokoni area 2km from the main road .it is a small business which has been
operating in the area for 2years since it was opened. It’s owned by Karisa Kahindi a business
man It has only and employees. Its main products and services are fruit salads and juices.

It is a sale proprietorship business

Allvine’s fruit parlour being a small business gives the owner a further level of control over
his or her own business .The owner is the boss of his/her own business.

2.3.1 SWOT Analysis for the Competitors.

S/no Competitors strength weakness

10
 1. Classic fruit -high sale volume -Has fewer number of employees who are
parlour -It uses modern poorly trained
technology. -Its products and services are very
-It has a good expensive compared to ours.
management system. -It’s products and services are not of high
quality, unique and reliable which don’t
-Its equipped with meet the customer demand.
modern facilities.
It has a good location
suitable for
customers.
2. Baraka fruit -High sales volume -It’s not registered with the local
parlour -uses a modern authorities.
technology.
-it is equipped with -Have poo relationship with their
modern facilities. customers.
-It has a good location -Doesn’t operate fulltime.
suitable for the -Has a poor management system.
customers. -Has a poor number of employees who are
poorly trained.
3. Utumishi fruit -high sales volume -Has fewer number of employees who are
parlour -Existing loyal poorly trained.
customer base - It’s products and services are not of high
-It’s equipped with quality, unique, and reliable which don’t
modern facilities meet the customer’s needs and
-Has a good location satisfaction.
for customers -Has poor management system.

2.4 Pricing Decision.

11
Allvine’s fruit parlour has established a packaged pricing system, which is suitable,
convenient, cheap and affordable and also will met the customers’ expectations, local
demands and satisfaction compared to our competitors.

The actual prices of our products are.

1. The customers will have access to high quality, reliable, and high speed WIFI
connections.
2. There will also be a swimming pool only for those customers who will be interested
in swimming. The swimming cost will be ksh 250 per day.

2.5 Sales Tactics

The following tactics will be used.

Allvine’s fruit parlour will offer its products and services through the direct selling method
that is direct contact with the customers at the fruit parlour.
Allvine’s fruit parlour will serve a small geographical are possibly within the Mikindani area.

2.6 Distribution Strategy

 Our products and services will be offered to our customers at the fruit parlour.
 This will be the most lost effective method.

SALES
Allvine’s Fruit Parlour targets to get ksh 30,000 saless in the first year. The other
competitions in the area and the targets sales are;
Classic fluit parlour= 50,000
Baraka fruit parlour= 40,000
Utumishi fruit parlour= 30,000

Total sales= 50,000+40,000+30,000=150,000

Allvine’s Fruit Parlor= Target sales/Total salesx100%

= 30,000/150,000X100

12
 =20%
Classic Fruit Parlour = 50,000/150,000X100
=31.5%
Baraka Fruit Parlour = 40,000/150,000x100
=21%
Utumishi Fruit Parlour =30,000/150,000x100
=21%

SALES TARGET FIRST YEAR

21.00% 20.00%

31.50% Allvine’s Fruit Parlor

Classic Fluit Parlour
Baraka Fruit Parlour
Utumishi Fruit Parlour

211.00%

Allvine’s Fruit Parlour targets to get ksh 50,000 sales in the second year. The other
competitions in the area and the targets sales are;
Classic fluit
Allvine’s fruit parlour = 50,000
Classic fluit parlour= 60,000
Baraka fruit parlour= 40,000
Utumishi fruit parlour= 40,000
Total sales= 50,000+60,000+40,000+40,000=190,000

Allvine’s Fruit Parlour= 50000/190,000x100

=26%

13
Classic Fluit Parlour= 60,000/190,000X100
=31.5%
Baraka Fruit Parlour= 40,000/190,000x100
=21%
Utumishi Fruit Parlour =40,000/190,000x100
=21%

SALES TARGET SECOND YEAR

2.00%

Classic Fruit Parlour

22.73% Baraka Fruit Parlour
31.80% Utumishi Fruit Parlour
Allvine's Fruit Parlour

18.80%

Allvine’s Fruit Parlour targets to get 70,000 in the third year.

Allvine’s Fruit Parlour= 70,000

Classic Fluit Parlour= 60,000
Baraka Fruit Parlour= 50,000
Utumishi Fruit Parlour =40,000
Total sales= 70,000+60,000+50,000+40,000
=2,220,000

Allvine’s Fruit Parlour= 70,000/220,000x100

=31.81%

Classic fluid parlour= 60,000/220,000x100

14
 = 2%

Baraka fruit parlour= 50,000/220,000x100

= 22.73%

Utumishi fruit parlour= 40,000/220,000x100

=18.18%

TARGET SALES IN THREE YEARS

26.00% 31.
50
%
Allvine’s Fruit Par-
21. lour
00
% Classic Fluit Parlour
Baraka Fruit Parlour
Utumishi Fruit Par-
21.00% lour

15
 CHAPTER THREE

ORGANIZATION AND MANAGEMENT

3.1 Organizational Plan

The organization plan explains how the business will be co-ordinated to accomplish it’s
objectives and shows the organizational structure.

3.2 Management Team

Allvine’s fruit parlour will be owned by Allvine Nthenya Kyalo who is the general manager.
The owner will be incharge of all activities carried out in the fruit parlour. The owners to
draw a salary of ksh45,000 per month. The first fruit parlour business will employ different
people to make up management team and will have task to contract the business activities
that include;

General manager

Assistant manager

Marketing manager

3.3 Business Manager(S) And Qualifications

S/NO TITLE QUALIFICATIONS

1. General manager Business owner, masters in hospitality and
management.

16
 2. Assistant manager Degree holder in business management.
3. Marketing manager Degree holder in sales and marketing.

3.4 Personnel, Number And Duties

S/ TITLE NUMBER DUTIES

NO
1. General 1 To provide capital to run and operate the fruit parlour.
manager Fire and hire workers
Make decisions for the fruit parlour business
Supervise all the activities carried out in the fruit
parlour
Assign law and duties.
2. Assistant 1 Direct and control the work and the business
manager Provide assistant and advice to the general manager
Develop and maintain effective marketing and public
relations
Provide assistance to the workers.
3. Marketing 1 Managing all activities.
manager Developing the marketing strategy for the fruit parlour
in line with the fruit parlour activities.
Overseeing the marketing budget
Planning and implementing promotional campaigns
4. Cashier 1 Collect, count and disburse money, a basic book
keeping and complete bank transactions.
Management of business cash
Monitor financial detail
Help management make financial decision
File record of business activities
5. Waiter 10 Welcome the guests
Take orders
Serve the guests

17
 Present the bills to the guests
Informs the guests on the services being offered
6. Customer 1 Oversees customer needs and complaints and also
care enquire
Answer direct phone calls for the business
Keep records of the fruit parlour business
7. Security 2 Monitor and authorize entrance and departure of
officers employees, customers, visitors and other persons to
guard against that and maintain security of the fruit
parlour.
Write reports of daily activities and irregularities such
as property damage, theft and unauthorized personnel
etc.
Call police or fire departments in case of emergencies.
Answer alarms and investigate disturbances.
8 Electrician 1 Help create, maintain and repair the electronic
components and equipments components and
equipment that involves electricity.
Do wiring in the fruit parlour business.
Install electricity in the fruit parlour.
Pay the electric bill.
Use specialized measuring and diagnostic devices to
evaluate how the electrical equipment is working in
fruit parlour.
9 Cleaners 3 Maintaining hygiene and cleanliness in the business
surrounding.
Purchasing of the cleaning equipments that will be
used in the cleaning of the fruit parlour business.

3.5 Recruitment, Training And Promotion

3.5.1 Recruitment

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Allvine’s fruit parlour will advertise the various vacancies through billboards, posters and
social media platforms, brochures, mass media eg radios and television stations and also via
websites.

The fruit parlour business will use the criteria of only those will be qualified for the various
advertise positions be contacted for the interviews before they are selected and employed.

3.5.2 Training

The fruit parlour business through the assistant manager who the head of workers activities
will carry out special training programs to workers after six month.

The training will equip workers with knowledge, skills and ideas emerging trends and issues
in the line of fruit parlour industry.

3.5.3 Promotion

Workers will be promoted yearly, which will be done to the most performed workers,
workers with added experience, committed and disciplined workers in the fruit parlour
business will all be considered during promotion.

Workers will promoted in order to help motivate and provide them with an incentive to keep
working harder for better performance of the fruit parlour business.

Workers will also be promoted in order to retain suitable and competent employees. Workers
will be promoted in order to utilize their knowledge and skills more efficiently.

3.6 Remuniration And Incentives

3.6.1 Remuneration

TITLE JOB MONTHLY TRANSPORT TOTAL

GROUP PAY ALLOWANCE AND
MEDICAL
ALLOWANCE

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 Assistant 1 35,000 10,000 45,000
manager
Marketing 1 25,000 5,000 30,000
manager
Cashier 1 20,000 3,000 23,000
waiters 10 15,000 1,000 16,000
Customer care 1 18,000 2,000 20,000
Security officer 1 11,000 1,000 12,000
1
Security officer 1 11,000 1,000 12,000
2
Electrician 1 18,000 2,000 20,000
Cleaner 1 1 10,000 500 10,500
Cleaner 2 1 10,000 500 10,500
Total 199,000

3.6.2 Incentives

Allvine’s fruit parlour will provide its staff with a tea break. Commissions will be given to
target sales made per month. The business will also give overtime allowances to workers in
order to show appreciation to committed workers in the business who will work extra hours
for better performance of the fruit parlour business.

Fruit parlour business will also provide gifts program yearly to award gifts to the most
hardworking and disciplined workers. It will also provide certificate of achievements to the
workers. The fruit business will provide team lunch twice per week in order to motivate the
workers to work extremely hard for better performance and productivity.

3.7 Licenses, Permits, By-Laws

3.7.1 Licenses

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This is a written statement normally issued by the government in order to carry on a business.
Allvine’s fruit parlour will acquire a licence from the County Government of Mombasa at
ksh7,000 per year.

3.7.2 Permits

Permits are issued for the smooth running of the business majorly to show that the business is
legal. Allvine’s fruit parlour will get a permit from County Government of Mombasa at a
renewable fee of ksh3,000.

3.7.3 By-Laws

These are laws created to provide statutory requirements of operating a business.

Trade description act cap305

The act prohibits traders from going beyond the customers’ purchasing power.

Employment act cap 226

The law ensures employees’ wages guidelines are followed and protected from any dismissal.

Health certificate

All Allvine’s fruit parlour employees will be required to bring the food handler certificate
from the hospital.

3.8 Support Service

ITEM BRANCH SERVICES

Bank Kenya Commercial Bank. Cash deposits and withdrawals, loans
(KCB) and savings

Mombasa branch.
Postal Mwembe Tayari Postal Sending/receiving letters and parcels
Office

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 Insurance Liberty Insurance company Covering the business for emergency
limited and accidental cases.
Legal Mombasa advocates Represent the fruit parlour business in
legal offices or courts

Allvine’s fruit parlour will be opened during weekend from Monday to Friday at 8.00am and
close at 8.00pm. during the weekend it will be opened from 8.00 am and close at 10.00pm
late hours.

CCTV will aslo be installed in the fruit parlour business for the purpose of security and
monitor all the activities carried out I the business.

The business will be decorated with different drawings, pictures, and graphics to make it look
more appealing, elegant and attractive.

The tables and chairs will clean the fruit parlour everyday morning and evening to make sure
there’s proper hygiene and cleanliness. This will also help a business run and operate
smoothly.

CHAPTER FOUR

OPERATIONAL/PRODUCTION PLAN

The operational plan describes how the product of the business will be manufactured. It
shows a breakdown of the equipment, materials and other costs which will be inquired during

22
the production process. For a service business, the plan indicates the requirements for
providing the service.

4.1 Production Facilities And Capacity

Allvines fruit parlour own variety of machines, offices, store rooms and vacant rooms that
will be used by workers who will store their belongings from the customers.

The following is a list on production facilities and capabilities

ITEM QUANTITY COST CAPACITY

Manager office 3 rooms 40,000 3 management offices
Open office 1 large room 30,000 4 staff workers
Surbodinate 1 large room 25,000 3 surbodinate personnel
personnel
Store 2 rooms 30,000 Long term
Automatic generator 1 70,000 24 hours functional
Electricity 1 phase 40,000 1000 KW
Juice container 6 pieces 8,000 6 users
Juice dispenser 2 pieces 10,000 2 users
blender 2 4,000 2 users
Citrus squeezer 1 3,000 1 user
Disposable 100 240 1 per person
containers
Glass sundew 20 pieces 10,000 1 per user
Water turbler 20 pieces 10,000 1 per user
Disposable glass 20 pieces 8,000 1 per user

Take away glass

Cocktail glass 20 pieces 10,000 1 per user
Dessert bowls 20 pieces 10,000 1 per user
straws 100 pieces 1,000 1 per user
Desert spoon 20 pieces 5,000 1 per user

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 Dessert forks 20 pieces 5,000 1 per user
toilet 6 rooms 50,000 Workers ,one staff
computer 1 12,000 1 per user
Repair and 1 toolkit 5,000 All hardware
maintenance toolkit equipments
Router 2 routers 5,000 WIFI
water 30,000 10,000 Customers/workers
consumption
Total 401,120

4.2 Production Startegy

The product and services offered are for high quality, unique, reliable, cheap and affordable
which will meet the customers demand, exectations and satisfaction.

The technology used is simple, efficient and cost effective which is readily available.

Allvine’s fruit parlour will adopt to the changes in the technology used in fruit parlour.

The fruit space will be enough for the machines and equipments, customers and all the
workers.

All the machines and equipments will be located in the fruit parlour and the various
operations done in the fruit parlour premises.

The fruit parlour owner expects to earn ksh 45,000 per month.

4.3 Production Process

Allvine’s owner will need juice containers, juice dispenser, blenders, citrus squeezer,
disposable containers and glasses, water tumbler, sundew glasses, cocktail glass, dessert
bowls, straws, dessert spoon and forks, computer, repair and maintenance toolkits, routes and
airtime.

The manager will ensure that all the requirements needed are catered for in the industry.

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The hardware spare parts will be bought from Kavater computer company limited and the
cost will be ksh 8,000 and will be readily available.

4.4 Regulations Affecting Operations

Government regualtions

Trading licence and single business permit will be acquired form the County Government of
Mombasa and National Government of Kenya. Insurance cover of the business will be
acquired from liberty and AAR insurance company. Kenya Revenue Authority will be in
charge of all the taxes.

Health regulations

Allvine’s fruit parlour will handle its products inaccordance to the public health regulations,
the business will also adhere in general to public health laws.

The business will also make sure all staffs are registered under the NHIF cover.

Safety

The business will ensure safety for its workers by providing them with the safety equipments
such as gloves for cleaning, first aid kits in case of injury and fire extinguishers in case of fire
outbreak.

Environmental regulations

The business will make it operate in a conducive and effective environment by cleaning the
working area and the surrounding of the business. A llvine’s fruit parlour will also follow the
rules and regulations that are set by the government body of NEMA.

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 CHAPTER FIVE

FINANCIAL PLAN

The breakdown of the business financial plan will reflect the firm’s financial standing and
future potential as a measure of its stability as growth.

Allvine’s being a medium enterprise will be largely funded from savings from this two
proprietors, family and friend’s contribution and partially on loans and grants.

Savings 400,000

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Donations (friends and family) 200,000
Grants 100,000
Loans 200,000

5.1 Pre- Operational Cost

This will cater for all expenses to be incurred before commencement of the fruit parlour
business to facilitate its efficiency.

ITEM KSH
Equipment purchase 300,000
Equipment installattion 20,000
Premises rent 5,000
Services(utilities) 20,000
Licence and permits 10,000
Travelling cost 5,000
Insurance 20,000
Salaries 200,000
advertising 5,000
Support services 20,000
Total 605,000

5.2 Estimation Working Capital

These will include expenses during the operation of the business and will be worked as;

Working capital= Current Assets- Current Liabilities

ITEM 2019 2020 2021

Current assets 50,500 70,000 60,000
Cash in bank 60,000 100,000 15,000
Stock 70,000 90,000 50,000

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 Work in progress 130,000 115,000 100,000
Debtors 90,000 105,000 100,000
Service changes 75,000 100,000 90,000
Total current assets 475,000 540,000 365,000
Bank loan 40,000 40,000 40,000
Creditors 35,000 50,000 25,000
Licence and permits 10,000 10,000 10,000
Salaries 95,000 95,000 100,000
Advances 20,000 20,000 20,000
Insurance 25,000 30,000 35,000
Working capital 225,000 245,000 230,000

E.W.C= T.C.A – T.C.L

=250,500 295,000 342,000

Assumptions

Bank loan payment interests are constant

Stock is increased periodically not necessarily monthly.

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5.3 PROFORMA INCOME STATEMENT

5.3.1 Proforma income Statement for the Year Ended 2019

ITEM JAN FEB MARCH APRIL MAY JUNE JULY AUG SEP OCT NOV DEC
‘000’ ‘000’ ‘000’ ‘000’ ‘000’ ‘000’ ‘000’ ‘000’ ‘000’ ‘000’ ‘000’ ‘000’
Opening cash.(cash on hand 250 50 20 250 50 30 20.5 15 30 50.5 55 70
Cash sales 750 115 170 190 180 185 180 175 180 180 185 200
Credit sales 20 40 60 55 60 70 65 70 70.5 75 70 80

Debtors 20 30 35 40 35 45 40 45 45 45 50 50
Discounts 75 105.5 23 40 35 45 40 45 45 45 50 45
Loans 100 100
Total cash
Cash purchase 100 75 40 45 40 65 60 60 75 90 85 100
Credit purchasing 55 40 30 20 60 55 60 65 35 40 45 45
Salaries 75 80 95 95 95 95 95 95 95 95 95 100
Rent 5 5 5 5 5 5 5 5 5 5 5 5
Insurance 20, - - - - - - - - - - -
Loan repayment 40 40 40 40 40 40
Capital expenditure 37 85.5 31.5 46 38.5 34.6 37.8 38.25 42.5 43.9 44.5 47.2
Services changes 25.5 25.5 24.5 24.5 26 22.4 24.7 29.5 31.5 33.4 37.2 35
Total expenditure
Net cash flow

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5.3.2 Proforma income Statement for the Year Ended 2020

ITEM JAN FEB MAR APRIL MAY JUNE JULY AUG SEP OCT NOV DEC

‘000’ ‘000’ ‘000’ ‘000’ ‘000’ ‘000’ ‘000’ ‘000’ ‘000’ ‘000’ ‘000’ ‘000’
Opening (cash at hand) 75 80 85 85 70 60 100 120 130 110 110 140
Cash sales 170 175 180 180 185 190 190 195 200 215 130 230
Credit sales 85 86 87 82 87 78 84 81 67 72 53 50
Debtors 48 48 43 46 48 54 53 57 67 72 78 77
Discounts 37 38 33 39 42 53 54 52 52 64 63 73
Total cash flow
Cash purchases 88 98 100 125 96 93 98 115 145 135 125 140
Credit purchases 31 47 49 54 48 44 47 46 41 37 30 43
Salaries 96 96 95 95 95 95 95 95 95 95 95 95
Rent 6 6 5 5 5 5 5 5 5 5 5 5
Insurance 20 - - - - - - - - - - -
Capitals expenditure 37 38 31 46 38 34 37 38 42 43 44 47
Service changes 25 25 24 24 26 22 24 29 31 33 37 35
Total expenditure
Net cash flow
Net after tax (15%)

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31
5.4 Quarterly preform income Statement for the Year Ended 2021

PARTICULAR JANUARY - APRIL- JULY- SEPT -

S MARCH JUNE SEPTEMBER DECEMBER
Cash at hand 148,000 206,000 243,000 256,000
Cash sales 669,000 724,000 700,000 745,000
Credit sales 145,000 153,000 146,000 115,000
Debtors 216,000 223,000 256,000 225,000
Discounts 202,000 197,000 230,000 230,000
Total cash
Purchase 426,000 306,000 602,000 647,000
Salaries 306,000 306,000 306,000 306,000
Capital 142,000 148,000 152,000 164,000
expenditure
Rent and 123,000 123,000 123,000 123,000
service charges
Insurance 54,000 54,000 54,000 54,000
Others 87,000 87,000 75,000 87,000
Total cash flow
Net cash flow
Taxed net

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5.5 Preformat Income Statement for years ended 2019, 2020, 2021

ITEM 2019 2020 2021

Sales 2,750,000 3,210,000 3,390,000
Cost of goods sold 845,000 978,000 1,780,000
Gross profit 3,590,000 4,190,000 4,470,000
Purchases 1,406,000 1,884,000 2,240,000
Salaries 1,140,000 1,140,000 1,224,000
Capital expenditure 39,000 369,000 470,000
Others 420,000 537,000 461,000
Total expenses
Pre-tax profit
15% net profit pose tax

5.6 Performa Balance Sheet

FIXED ASSETS LIABILITIES

Building 100,000 Creditors 10,000
Land 100,000 Loans 50,000
Furniture 20,000 Bank overdrafts 10,000 70,000
160,000

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5.6 Calculation of Profitability Ratios

ITEM NO. RATIOS 2019 2020 2021

1. Currents ratio 213.80 225.92 216.05
2. Quick ratio 182.13 190.21 191.62
3. Assets turnover 425.23 396.08 460.28
4. Trading profit 24.55% 59.11% 42.22%
5. Expense ratio 189.50 79.94 232.41

Return on owners equity= Net profit/owners equity

Return on equity 2019= 493235/629625x100= 78.34%

Return of equity for 2020= 128940/1188877x100= 105.89%

Return of equity for 2021= 902642/846239x100= 106.678%

5.7 Designed Financing

The designed financing for All vine’s fruit parlor is as follows.

ITEM AMOUNTS
Pre-operational costs 442,500
Working capital 25,500
Fixed costs 534,050

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5.8 Proposed Capitalization

ITEM AMOUNTS
Owner capitalization 297,000
Borrowed 954,500
Bank loan 50,000
Totals 1,305,500

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APPENDIX: MAP

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