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PROJECT FEASIBILITY REPORT

FAST FOOD RESTAURANT

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BUSINESS PLAN
We are planning to set up a fast food restaurant in New Delhi which will provide variety of food at cheap rates. There is a huge market potential. The place will provide a unique taste with a good environment. The location of the restaurant is very much accessible to the customers.
Total estimated rent of land:- Rs. 9,60,000 per year( Rs.100/- per sq feet) Initial project cost- Rs. 20,00,000. Promoters:- Rs.10,00,000(50% by each promoters). Bank loan:- Rs. 10,00,000.(EMI-15%)

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SAKLEYS FAST FOOD RESTAURANT


OBJECTIVE
1. 2. 3. 4.

To To To To

provide good quality of food and services to the customer. maximize profit. provide value for money to the customers. build relationship with the customer.

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ORGANIZATIONAL HIERARCHY

Kitchen staff:- 4 member

1- head chef 1- cook 2- assistant

Sales team- 1 sales manager Administrative department:- 4 member


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TECHNICAL FEASIBILITY
The technical equipment used in the restaurant are the kitchen equipment which are user friendly and good quality. Good quality products are selected as it will give long term benefit and safe for the workers who are using.
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MARKET FEASIBILITY
OBJECTIVE
1. 2. 3. 4.

To achieve success in market. To become a market leader in the industry. To build loyalty program with the customer. To use direct marketing as a strategy.

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MARKET SEGMENTATION
AGE:- The target customer is of all the age groups. INCOME:- The focus is on the medium income group

MARKETING STRATEGY AND MARKETING MIX


PRODUCT:- Variety of fast food under one roof with standard services and rich environment PRICE:- The strategy being used in the value pricing strategy. Offering right Combination of quality and good services at fair prices. PLACE:- Main focus is to pull the crowd using various campaigns. The locations Which have been selected is where the less competitions. PROMOTIONS:- Integrated marketing communications will be used to develop a Consistent, clear compelling message to the customer. 8/1/12

PROMOTIONAL STRATEGIES
To ensure awareness and knowledge among the target customer through Various publicity. 2. Advertisement through local media network which include newspaper, banners. 3. Use direct marketing concept to reach the customers.
1.

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FINANCIAL FEASIBILITY

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PROFIT AND LOSS ACCOUNT


YEAR-1 INCOME Sales Total Sales 8,344,500 8,344,500 9,573,500 9,573,500 11,223,000 11,223,000 12,797,500 12,797,500 14,560,600 14,560,600 YEAR-2 YEAR-3 YEAR-4 YEAR-5

EXPENDITURE Material Cost Manufacturing Cost Advertisement Salary Administrative Cost Interest on loan Total Exp Net Profit / ( Loss ) before Dep % of Total Sales 2,942,280 90,000 2,50,335 1,320,000 1,116,689 150,000 5,869,304 2,273,506 30% 3,512,371 95,000 110,335 1,452,000 1,119,147 150,000 6,438,853 2,731,507 33% 3,764,400 100,000 110,335 1,597,200 1,122,446 150,000 6,844,381 3,893,004 39% 4,147,164 105,000 90,000 1,756,920 1,125,595 150,000 7,374,679 4,842,946 42% 4,544,635 105,000 80,000 1,932,612 1,139,121 7,801,368 6,091,202 46%

Depreciation Net Profit / ( Loss ) after

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256,000

211,650

176,423

148,233

125,500

BALANCE SHEET
YEAR-1 YEAR-2 YEAR-3 YEAR-4 YEAR-5 Shareholders` Fund Loans Tax payable Reserve & Surplus 1,000,000 1,000,000 754,305 1,464,891 1,000,000 500,000 993,527 3,394,362 1,000,000 500,000 1,428,327 6,168,232 1,000,000 1,792,832 1,000,000 2,254,805

9,649,987 14,028,913

Balance as per Profit & Loss Account after tax TOTAL 4,2149,196 5,887,888 9,096,558 12,442,819 17,283,719

Fixed Assets ( a ) Gross Block ( b ) Less: Depreciation ( c ) Net Block Current Assets, Loans and Advances ( a ) Inventories ( b ) Sundry Debtors ( c ) Cash and Bank balances 1,810,000 256,000 1,554,000 1,810,000 467,650 1,342,350 1,810,000 644,073 1,165,928 1,810,000 792,306 1,017,694 1,810,000 917,806 892,194

241,831 45,723 2,810,050 50,000

288,688 52,458 4,683,614 50,000

309,403 61,496 8,072,284 50,000

340,863 70,123 11,570,277 50,000

373,532 79,784 16,529,417 50,000

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( d ) Loans and Advances

PROFIT AFTER TAX


12 10 8 6 4 2 0 NUMBER OF YEARS 8/1/12

Sales
12 10 8 6 4 2 0 NUMBER OF YEARS

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RETURN ON INVESTMENT

FIRST YEAR:- 83.26% SECOND YEAR:- 64.30% THIRD YEAR:- 52.97% FOURTH YEAR:- 46.16% FIFTH YEAR:- 40.47%

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CONCLUSION

The fast food restaurant has lot of opportunity in the market. The main focus is on the medium income group. The strategy which have been taken up is the value for money which means good quality of food but not at high price.
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Technically, sufficient equipments are

THANK YOU

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