Pizzarma Balance Sheet

Business plan

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Pizzarma Balance Sheet

Introduction
The purpose and scope of this information memorandum is to introduce the subject matter and provide a general idea and information on the said area. All the material included in this document is based on data/information gathered from various sources and is based on certain assumptions. Although, due care and diligence has been taken to compile this document, the contained information may vary due to any change in any of the concerned factors, and the actual results may differ substantially from the presented information.

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Pizzarma Balance Sheet

Pizzarma restaurant main choburji chowk lahore

Prepared by: Section: Phone #: Email:

BILAL ALI
B +92-345-6601991 Ali_aiz2010@yahoo.com

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Pizzarma Balance Sheet

Vision:
to make the people know that for all the eating items they desire to eat can be made available in minimum time without our effort excluding money.

Mission statement:
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Pizzarma Balance Sheet

We take pride in making a perfect pizza and providing courteous and helpful service on time all the time. Every customer says, "I'll be back!" We are the employer of choice offering team members opportunities for growth, advancement, and rewarding careers in a fun, safe working environment.

Opportunity rationale
The Fast Food Restaurant Market is a growing industry in Pakistan relying heavily on the changing lifestyle patterns, population growth of the target age group and the related increase in employment of women. With today's hectic lifestyles, time-saving products are increasingly in demand the most obvious being the fast food. The rate of growth in consumer expenditures on fast food has led most other

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Pizzarma Balance Sheet

segments of the food-away-from home market for much of the last one decade.

Environmental and Industrial analysis

We need to environmental analysis to identify the trends and changes occurring on particular geographical level that may impact the new venture.

Economy:
This business not only provide the save and healthy food but employment opportunity as well. And also increase the standard of living of people. Fast-food outlets have become popular with consumers for several reasons. One is that through economies of scale in purchasing and producing
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Pizzarma Balance Sheet

food, these companies can deliver food to consumers at a very low cost. In addition, although some people dislike fast food for its predictability, it can be reassuring to a hungry person in a hurry or far from home.

Culture:
As well as the culture is concern. The culture is favorable for business of that particular area. Because the people of that area likes trend in safety health and nutrition. As well as the environment is concern. It is the professional area and peoples like to eat fast food then savor food.

Technology:
We constantly invest time and money in the management information systems that help our
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Pizzarma Balance Sheet

stores forecast and monitor performance, labour usage, food ordering and inventory management. These systems will supported by a skilled internal team to make sure you get the best use from them.

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.

Industrial demand:
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Pizzarma Balance Sheet

The demand of fast food is persistently increasing because people want only eat food while working because the people have short time. At this location there is no other venture of doing this type of business. Like pizza hut and Domino.s

Description of venture:
This is business providing the fast food to full fill the need of hunger people for their temporary need. Whether are doing the work in office of the baby boomer for their need of food at afternoon. Following factors are to be considered. Space. We need the 2000 sqr feet area for this business. It the total cost is Rs20,000,000 then the cost per sqr feet is 20000.

Buy or lease.
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Pizzarma Balance Sheet

We should have to buy the building because the location of the building is fit for the business but if we lease the building then the expenses will be more which put the bad impact on balance sheet and increase the liability of the business. The location is the official area .

Manu pricing:
One of the most important factors in the strategic planning of a restaurant is in the development of the menu. It involves designing an appealing selection of menu items that are competitively priced in the marketplace. Menu pricing is a very tricky task because you need to price items so that you can operate profitably and ,just as important, offer your targeted guests a good price/value relationship.

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Pizzarma Balance Sheet

Broast
Chicken Broast (Q Chicken broast(half) Chicken broast(full)

price
125 250 250

Burgers
Chicken Burger Chicken Cheese Burger Beef Burger Beef Cheese Burger Zinger Burger

price
50 55 40 45 80

Sandwiches
Chicken Sandwich Egg Sandwich Beef Sandwich Club Sandwich French Fries (per plate) Cole Slaw Soft Drinks (Large) Soft Drinks (Regular)

price
55 40 45 80 25 15 50 15

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Pizzarma Balance Sheet

Operational Plan:
Understanding the customers individual needs and the capability to satisfy these completely is a vital part of the restaurants success. This is in turn dependent on the machinery and equipment used to produce good quality fast food.

Location:
Main Chouburgi chowk Lahore is the location at which the business is going to start. Because it is very easy to accessible for the customers (like students and other employed person) suppliers as well an other edge is parking lot.
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Pizzarma Balance Sheet

Labour skills:
There are several categories of personnel in the restaurant business: manager, cooks, servers, busboys, dishwashers and cleaners. employees' duties may cross over from one category to another. For example, your servers may double as the cleaners. Be sure to hire people who are willing to be flexible in their duties.

Space:
The space is required for this purpose is 2000 sqr ft. which we have to purpose in order to reduce the liability.

Raw material:
Our Raw material is mostly chicken and vegetable. which will we obtain from K&Ns and Bilal Chicken point as well who is situated at National town Lahore.
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Pizzarma Balance Sheet

Marketing Plan:
As well as the marketing concern there is no other restaurant except Lahore broast, but it only providing the fried chicken. but we will provide the fast food as well. So we can chase the number of customer by providing them this facility. An other reason is the size of market which cannot be chase easily by Lahore broast. An other reason is the trend that the people feel happy to take lunch and dinner out side.because of the working women.

Income differentiation:
We have an idea for all income group people. We will create the segregation for high income as well low income group.

Target market:
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Pizzarma Balance Sheet

We will not only target the office people but also the students of colleges specially for hailey college evening student. We are also offering the lunch box for student in affordable package.

Factor should be considered while providing the supporting good and facilitating goods. 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. Water or beverage glasses should be refilled regularly. The server should silently survey the table and assess our needs without constantly
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Pizzarma Balance Sheet

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.

Financial Plan
Machinery and equipment:

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Pizzarma Balance Sheet

Item Details
Hot Plate for Burgers, Kebab, Sandwiches Working Tables Freezers New Broast Machine (15 Pound Deep Well Friseur (Single Valve With 2 Potato Cutter (8mm) Total

Quantity
1

Unit Price (Rs.)

33000

Total Price(Rs)
33000

2 3 1

20000 25000 650000

40000 75000 650000

40000

80000

1 10

3000

3000 881000

Dining Furniture & General Fixtures

Item Details Quantity Unit Price (Rs.) Total Price(Rs)

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Pizzarma Balance Sheet

Dining Table Square Chairs (Standard 14) Kitchen Cutlery Set Dining Cutlery* (Plate, Fork, Knife, Spoon, Glass) Air Conditioner Split Units (6 Ton) Hot Water Geyser Large Halogen Lights Wall Lights (Large) Portable Emergency Light Generator (1.5 KVA) Counter Chairs Office Table & Chair Set Waiting Chairs for Take Total 25 100 2 150 6,000 1,500 2500 150 150,000 150,000 5000 22500

31000

62000

1 25 4 4 1 2 1 5 322

20000 250 1500 2500 90000 1500 10000 1500 168400

20000 6250 6000 10000 90000 3000 10000 7500 542250

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Pizzarma Balance Sheet

Land Requirement
The land requirement is around 2,000 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 shopping mall wherein the consumer traffic will be a maximum. The more the shop is near the main road the better sales potential it will have.The cost of the land will be 20,00,000 Rs

Human resource requirement:

Designation / Type Owner Kitchen Supervisor Shift Supervisor (including reliever) Cook Servers Take Away Order Taker/ Cashier Number 1 2 3 4 6 1 6000 8000 4000 3000 6000 12000 24000 16000 18000 6000 Monthly Salary Total Salary

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Pizzarma Balance Sheet

Dishwasher Cleaner Total 2 1 20 2500 2500 38000 5000 2500 89500

Considering the size of the proposed establishment it is assumed that the owner would be managing the overall affairs of the fast food setup. He will be required to process and check bills, invoices, receivables management, maintain accounts, etc. for record. The owner will also ensure safe custody of store keys. Revenue & Cost Projections: The Sales are expected to increase by 15% every year while the cost of raw materials is assumed to increase by 10%. The 15% annual increase in revenue is expected to result from a part increase in population increase and part increase in product price. The prices used to calculate the gross revenue earned are based on the billing rate at which the entrepreneur will charge the customer. The prices are also inclusive of the General Sales Tax.
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Pizzarma Balance Sheet

Utility requirement:
Utility
Electricity Water Gas Telephone Total

Monthly Charges (Rs.)

25000 2000 15000 10000 52000

Working Capital & Pre Operating Costs:

Items
Utilities Salaries Raw material Rent Total

4 months cost
208000 358000 70000 400000 10,36,000

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Pizzarma Balance Sheet

Account Receivables
All sales will be made strictly on cash basis. It is not advisable to operate a fast food restaurant on credit basis.

Financial Charges
It is assumed that long-term financing for 5 years will be obtained in order to finance the fast food setup which would mainly include construction & dcor of Building, Purchase of machinery & equipment, purchase of inventory etc. This facility would be required at a rate of 15% (including 1% insurance premium) per annum with 60 monthly installments over a period of five years. The installments are assumed to be paid at the end of every month.

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Pizzarma Balance Sheet

Cost of Capital

The cost of capital is explained in the following table:

Particulars Required return on equity Cost of finance Weighted average cost of capital Rate 20.0 % 15.0 % 17.5 %

Income statement: Items

Sales Less Cost of goods sold Gross Profit Less Admin expense Rent exp Depreciation

Rupees
10015200 3407059 3,407,059 72000 120000 281,625
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Pizzarma Balance Sheet

Amortization Maintenance EBIT Less interest Tax Net profit
Assets Rupees

10000 21,758 1821677 357,889 365,947 1,097,841

Capital &liability Rupees

Assets
Current assets Cash and bank balance Prepaid rent

Owners equity
1,036,000 1,200,000

2,551,125

Fixed assets
Machinery Store Office fixture
Preliminary expenses
967,000 1,307,000 542,250 50,000

Long term liability

2,551,125

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Pizzarma Balance Sheet

5,102,250 5,102,250

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Pizzarma Balance Sheet

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