Fast food restaurant

Golden Apple
Feasibility Report
 Executive Summary
• I have prepared feasibility on fast food restaurant Golden Apple on the basis of
• The fast food restaurant is proposed to be established at a location that has a continuous
stream of traffic, convenient parking, and is in proximity to other businesses, preferably near
densely populated middle income areas or apartments. Major cities like Karachi, Hyderabad,
Sukkur, Larkana, Multan, Lahore, Gujranwala, Faisalabad, Sialkot, Gujrat, Rawalpindi,
Peshawar, Hub and Quetta etc. are suitable to house the project.
In addition to disclaimer, project cost can vary depending on a number of factors including
monthly rental payments, cost of assets (kitchen, furniture and crockery) and hence will also
reflects on menu prices.
Proposed Product Mix include: Broast, Burgers, Sandwiches, Chinese, French Fries, Cole Slaw
and Soft drinks.
Restaurant capacity is for 72 persons and initial capacity utilization is 42 %.
Total Cost Estimates is Rs.6.1 million with fixed investment Rs.4.6 million and working capital
Rs.1.5 million.
Given the cost assumptions IRR and payback are 39 % and 2.55 years respectively
The most critical considerations or factors for success of the project are:
 Choosing the right location for the fast food outlet
 Creating the right menu and menu pricing
 Hiring of experienced cooks and staff
 Knowing the competition
 Good Fast Food Restaurant
• Measuring good service is subjective, but generally what is expected from a server when
reviewing restaurants.
• The server should greet diners within 3 minutes of their being seated.
• The server should neat and clean.
• The server should not be too chatty or familiar.
• The server should know the menu and be able to answer questions.
• The server should bring drinks within 3 minutes of being ordered.
• The appetizer (if any) should be served within 5 minutes of ordering.
• Entrees should be served within 20 minutes of ordering.
• Water or beverage glasses should be refilled regularly.
• The server should silently survey the table and assess our needs without constantly
interrupting to ask, "Do you need anything else?"
• The bill should be brought promptly when requested, and change should be returned
promptly.
• Plates should be removed at the proper time, and the table should be cleared of bread
and butter before dessert is served.
 Legal Requirement
• The Pakistan Hotels and Restaurant Acts Act 1976 is the law which requires the owners of all
types of restaurants to register and obtain a license with the government. The restaurant
owner is required to apply to the controller for registration of the restaurant.
Application for registration and determination of fair rates shall be made to the controller in
Form “G” together with a certificate of medical fitness in Form “I” from a registered medical
officer of the civil hospital in respect of the staff of the restaurant.
For registration of a restaurant, the owner of the restaurant is required to conform to the
standard of health, hygiene and comfort which standards have been set out in Schedule II of
the act.
On receipt of application, the controller will carry out inspection of the aforementioned
premises and once satisfied will initiate the registration process. Once registered the owner of
the restaurant will apply to the controller for license as per the Act which needs to be renewed
on a yearly basis for the prescribed fee.
Project Investment
AMOUNT
DESCRIPTION
(Rs.)

Capital Cost

Renovation 1,500,000
Machinery & Equipment 1,312,500
Furniture & Fixtures 970,000
Office Equipment 135,000
Pre-operating Costs 665,000
Total Capital Cost 4,582,500

Working Capital

Equipment Spare Part

43,546
Inventory
Raw Material Inventory 174,182
Upfront Building Rent 1,260,000
Cash 50,000
Total Working Capital 1,527,728
TOTAL PROJECT COST 6,110,228
 Proposed Product Mix
Broast Price Chinese Price
Chicken Broast (Qtr.) 200 Hot & Sour Soup (2 Servings) 300
Chicken Broast (Half) 400 Hot & Sour Soup (4 Servings) 600
Chicken Corn Soup (2
Chicken Broast (Full) 800 250
Servings)
Chicken Corn Soup (4
500
Servings)
Burgers Price Plain Rice 100
Chicken Burger 180 Chicken Fried Rice 200
Chicken Cheese Burger 200 Vegetable Fried Rice 120
Beef Burger 180 Egg Fried Rice 150
Beef Cheese Burger 200 Beef Fried Rice 200
Zinger Burger 220 Beef Chilli (w/o rice) 300

Chicken Chilli (w/o rice) 300

Sandwiches Price Price

Chicken Sandwich 200 French Fries (per plate) 100

Egg Sandwich 150 Cole Slaw 100
Beef Sandwich 200 Soft Drinks (Large) 100
Club Sandwich 250 Soft Drinks (Regular) 30
 Proposed Location and Target Market
• The fast food restaurant is proposed to be established at
a location that has a continuous
stream of traffic, convenient parking, and is in proximity
to other businesses, preferably near
densely populated middle income areas or flat
complexes. Major cities like Karachi, Hyderabad,
Sukkur, Larkana, Multan, Lahore, Gujranwala, Faisalabad,
Sialkot, Gujrat, Rawalpindi,
Peshawar, Hub and Quetta etc. are suitable to house the
project.
 Machinery and Equipment
UNIT PRICE TOTAL
ITEM DETAILS QUANTITY
(RS.) PRICE(RS)
Freezers (12 cf) 03 45,000 135,000
New Broast Machine (15
Pound 01 200,000 200,000
Capacity)*
Deep Well Frier (Single
Valve With 2 02 80,000 160,000
Baskets)
Hot Plate for Burgers,
Kebab,
01 50,000 50,000
Sandwiches
(30” x 22”)
Bin Marry Soup Container
(2 Valve 01 120,000 120,000
With Steel Cabinet)
Potato Cutter (8mm) 01 5,000 5,000
Pillar (4.5 Kg Potato
01 30,000 30,000
Peeling Capacity)
Microwave 01 15,000 15,000
Working Tables 02 25,000 50,000
Keg Racks & Shelves 02 20,000 40,000
Crockery / Cutlery 108 1,000 150,000
Generator 15 KVA 01 322,500 322,500
Water Geyser 01 35,000 35,000
Total 1,312,500
 Furniture Fixture

The restaurant is expected to entertain a minimum of 288 customers at 04 table rotation in a

day, which requires a good seating layout to avoid any confusion and problems during rush
hours. The following table gives the details of the dining tables and chairs that would serve
approximately 72 customers (maximum capacity) at a time:

ITEM DETAILS QUANTITY UNIT PRICE (RS.) TOTAL PRICE (RS.)

Dining Table – Square plus

18 36,000 648,000
04 chairs.

Lights 50 800 40,000

Counter Chairs 02 6,000 12,000
Office Table and Chair 01 25,000 25,000
Waiting Area for Take
Away 05 4,000 20,000
Customers
Air Conditioner Split Units
05 45,000 225,000
(02 Ton)
Total 970,000
 Office Equipment

ITEM DETAILS QUANTITY UNIT PRICE (RS.) TOTAL PRICE (RS.)

Laptop 01 45,000 45,000
Printer 01 25,000 25,000
Telephones 02 2,500 5,000
Cash Register 01 60,000 60,000
Total 135,000
 Land and Building Requirement
• The land requirement is around 1,500 sq.ft. in
densely populated area where all utilities and
facilities are properly available. It is
recommended that the fast food outlet be
opened on the
ground floor of flats or in the shopping mall
where the consumer traffic will be maximum.
Dedicated area requirement

% SIZE
DETAILS
(SQ. FEET) (SQ. FEET)
Dining 60 % 900
Waiting 5% 80
Kitchen & Preparation 30 % 450
Stores 5% 70
 Human Resource Requirement
TOTAL MONTHLY
MONTHLY SALARY
DESIGNATION / TYPE NUMBER SALARY
(RS.)
(RS.)
Manager* 01 25,000 25,000
Chef / Kitchen Supervisor 01 25,000 25,000
Supervisor (including
01 15,000 15,000
reliever)
Cook 03 15,000 45,000
Helper 01 13,000 13,000
Dishwasher 01 13,000 13,000
Waiters / Servers 06 13,000 78,000
Cleaner 01 13,000 13,000
Guard 01 13,000 13,000
Total 16 240,000
Fixed assets
Balance Sheet
Income Statement