SMEDA Fast Food Restaurant

Pre-Feasibility Study
FAST FOOD RESTAURANT

Small and Medium Enterprise Development Authority
Government of Pakistan
www.smeda.org.pk
HEAD OFFICE Waheed Trade Complex, 1 Floor , 36-Commercial Zone, Phase III, Secto
r XX, Khayaban-e-Iqbal, DHA Lahore Tel: (042) 111-111-456, Fax: (042) 5896619, 5
899756
st
helpdesk@smeda.org.pk
REGIONAL OFFICE PUNJAB Waheed Trade Complex, 1st Floor, 36-Commercial Zone, Phas
e III, Sector XX, Khayaban-e-Iqbal, DHA Lahore. Tel: (042) 111-111-456 Fax: (042
) 5896619, 5899756 helpdesk@smeda.org.pk REGIONAL OFFICE SINDH 5TH Floor, Bahria
Complex II, M.T. Khan Road, Karachi. Tel: (021) 111-111-456 Fax: (021) 5610572
helpdesk-khi@smeda.org.pk REGIONAL OFFICE NWFP Ground Floor State Life Building
The Mall, Peshawar. Tel: (091) 9213046-47 Fax: (091) 286908 Helpdesk-pew@smeda.o
rg.pk REGIONAL OFFICE BALOCHISTAN Bungalow No. 15-A Chaman Housing Scheme Airpor
t Road, Quetta. Tel: (081) 831623, 831702 Fax: (081) 831922 helpdesk-qta@smeda.o
rg.pk
December, 2006
Fast Food Restaurant
DISCLAIMER
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 mat
erial included in this document is based on data/information gathered from vario
us 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 diffe
r substantially from the presented information. SMEDA does not assume any liabil
ity for any financial or other loss resulting from this memorandum in consequenc
e of undertaking this activity. Therefore, the content of this memorandum should
not be relied upon for making any decision, investment or otherwise. The prospe
ctive user of this memorandum is encouraged to carry out his/her own due diligen
ce and gather any information he/she considers necessary for making an informed
decision.
The content of the information memorandum does not bind SMEDA in any legal or ot
her form.
DOCUMENT CONTROL
Document No. Revision Prepared by Approved by Issue Date Issued by PREF-11 1 SME
DA-Sindh Provincial Chief Sindh December, 2006 Library Officer
PREF-11/December, 2006/
1
1. 1
PROJECT PROFILE
Purpose of the Documents
This document is developed to provide the entrepreneur with potential investment
opportunity in setting up and operating a medium sized fast food restaurant off
ering a variety of food items to the general public. This pre-feasibility gives
an insight into various aspects of planning, setting up and operating a fast foo
d restaurant for the general populace. The document is designed to provide relev
ant details (including technical) to facilitate the entrepreneur in making the d
ecision by providing various technological as well as business alternatives. The
document also allows flexibility to change various project parameters to suit t
he needs of the entrepreneur. 1. 2 Project Brief
Fast food is food which is prepared and served quickly at outlets called fast-fo
od restaurants. It is a multi-billion dollar industry which continues to grow ra
pidly in many countries. A fast-food restaurant is a restaurant characterized bo
th by food which is supplied quickly after ordering, and by minimal service. The
food in these restaurants is often cooked in bulk in advance and kept warm, or
reheated to order. Many fast-food restaurants are part of restaurant chains or f
ranchise operations, and standardized foodstuffs are shipped to each restaurant
from central locations. There are also simpler fast-food outlets, such as stands
or kiosks, which may or may not provide shelter or chairs for customers. Becaus
e the capital requirements to start a fast-food restaurant are relatively small,
particularly in areas with non-existent or medium income population, small indi
vidually-owned fast-food restaurants have become common throughout Pakistan. Gen
erally restaurants, where the customers sit down and have their food orders brou
ght to them, are also considered fast food. 1. 3 Opportunity Rationale
The Fast Food Restaurant Market is a growing industry in Pakistan relying heavil
y 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 oth
er segments of the food-away-fromhome market for much of the last one decade. De
mand for convenience has driven expenditures where people want quick and conveni
ent meals; they do not want to spend a lot of time preparing meals, traveling to
pick up meals, or waiting for meals in restaurants. As a result, consumers rely
on fast food. Knowing this, fast food providers are coming up with new ways to
market their products that save time for consumers.
Consumers want to combine meal-time with time engaged in other activities, such
as shopping, work, or travel, therefore allocating less time for food, hence the
growing need for fast food. 1. 4 The Fast Food Industry
The fast-food industry is popular in Pakistan, the source of most of its innovat
ion, and many major international chains are based there. The presence of multin
ational fast food chains like McDonalds, KFC, Pizza Express, Pizza Hut, Subway e
tc. have somewhat catered to the high income segment therefore developing a nich
e as upscale fastfood restaurants. Multinational corporations such as these typi
cally modify their menus to cater to local Pakistan tastes and most overseas out
lets are owned by native franchisees to ensure that cultural, ethnic, and commun
ity values are taken care of. Additionally, multinational fast-food chains are n
ot the only or even the primary source of fast food in most cities of Pakistan.
Many regional and local chains have developed around the main cities of Pakistan
(for example Khan Broast in Karachi) to compete with international chains and p
rovide menu items that appeal to the unique regional tastes and habits at compar
atively low costs. In Pakistan, multinational chains are considerably more expen
sive; they usually are frequented because they are considered chic and somewhat
glamorous and because they usually are much cleaner than local eateries. However
much of the middle-income segment (which forms a major chunk of fastfood goers)
prefers visiting local outlets that offer low cost fast food, hence more freque
nt visits. 1.4.1 Increasing Number of Fast Food Outlets The rapid rate at which
the fast food industry continues to add outlets is as much a reflection of consu
mer demand for convenience as it is a reflection of demand for fast food itself.
Expanding the number of outlets increases accessibility, thus making it more co
nvenient for consumers to purchase fast food. Especially in recent years, much o
f the expansion has been in the form of "satellite" outlets. These tend to be sm
aller in size, with little or no seating capacity, and are often in nontradition
al locations, such as office buildings, department stores, airports, and gasolin
e stations; locations chosen specifically to maximize convenience and consumer a
ccessibility. 1.4.2 Consumer Appeal Fast-food outlets have become popular with c
onsumers for several reasons. One is that through economies of scale in purchasi
ng and producing food, these companies can deliver food to consumers at a very l
ow cost. In addition, although some people dislike fast food for its predictabil
ity, it can be reassuring to a hungry person in a hurry or far from home.
Multinational Fast food chains like McDonald's rapidly gained a reputation for t
heir cleanliness, fast service and a child-friendly atmosphere where families on
the road could grab a quick meal, or seek a break from the routine of home cook
ing. Prior to the rise of the fast food chain restaurant, people generally had a
choice between greasy-spoon diners (kiosk) where the quality of the food was of
ten questionable and service lacking, or highend restaurants that were expensive
and impractical for families with young children. Modern, stream-lined convenie
nce of the fast food restaurant provides a new alternative and appealed to consu
mers' instinct for ideas and products associated with progress, technology and i
nnovation. Fast food restaurants have rapidly become the eatery "everyone can ag
ree on", with many featuring child-size menu combos, play areas and whimsical br
anding campaigns, designed to appeal to younger customers. Parents can have a fe
w minutes of peace while children played or amused themselves with the toys incl
uded in the premsises. Many consumers see multinational fast food restaurants as
symbols of the wealth, progress and well-ordered openness of Western society an
d therefore become trendy attractions in many cities around Pakistan, particular
ly among younger people with more varied tastes. 1.4.3 Focusing on Consumer Conv
enience Fast Food outlets tend to focus on the work while you eat philosophy simil
ar to the McDonald Outlet at Quaid e Azam Internation Aiport (Karachi) wherein s
eating space is also available for passengers in transition or the KFC outlets i
n large shopping malls like the Millenium Shopping Mall in Karachi promoting the
concept of Shop While You Eat. 1.4.4 Increasing Market for Fast Food The Populati
on Boom Pakistan, currently ranked as 6th in terms of total population, is chara
cterized by a high population growth rate of 1.9% (Pakistan Economic Survey 2005
) and is set to take the top three positions in terms of total population with a
lready 153.4 Million people registered in 2005.1 With this, the per capita incom
e has increased to US$ 736 while the productive age group (15 to 64) years is sa
id to take the major chunk of population (67% of total population) by 2020. 2 Th
e growth rate in food consumption is also augmented by the rapid increase in the
employment rate for males / female population aging between 20 to 29 years (fas
t food goers) hence the greater income contribution to the overall income genera
ted is expected to be higher.
1 2
2005 World Population Data Sheet, Population Reference Bureau, Washington; 2005
Population Projections 1998-2023, Planning Commission; NIPS
Population Pyramid 1998 & 2020*
*Population Census Organization; Population Projections 1998-2023, Planning Comm
ission; NIPS
1.4.5 The Future of the Industry The Pakistani economy is becoming increasingly
service-oriented, and over the past several decades, the foodservice industries
that offer the highest levels of convenience have been rewarded with strong sale
s growth. In the face of rising population, incomes and increasingly hectic work
schedules, a nearly insatiable demand for convenience will continue to drive fa
st food sales. Fast Food Outlets will strive to find ways to make their products
even more accessible. Even if incomes stagnate or attitudes change, consumers a
re unlikely to return to meal preparation at home on a large scale. This suggest
s that even if consumers choose to spend more time at home, for family or other
reasons, much of the meal preparation will still occur elsewhere. Many more tabl
e service restaurants, which traditionally focus on full-service in house dining
, will likely try to capture part of this market by offering take-out, and possi
bly experimenting with home delivery. The value of consumer time, as well as the
demand for consistent, high-quality food products, will continue to shape the f
ast food industry. Fast food, once considered a novelty, has become an increasin
gly significant part of the young generations diet. The role of convenience in th
is dietary shift cannot be over-emphasized, and the future growth
of the rest of the foodservice industry will be driven in large part by its abil
ity to find new ways to save consumers time. 1. 5 Key Success Factors / Practical
Tips for Success Whether you are opening a one-of-a-kind restaurant or trying t
o grow your existing restaurant into a multi-unit chain, there are winning princ
iples that can help shape your restaurant and improve its chances of succeeding.
i) Conceive the Winning Concept A well-defined concept stands a much better chanc
e of long term success than some vague notion. To start, it is wise to first set
specific goals and decide on the ways you will measure your restaurants success
. ii) Longetivity This can be described as the art of being able to maintain suc
cess over time while adjusting to meet the changing demands and buying habits of
the customer. To open a restaurant successfully and become profitable is one th
ing, but to maintain that success over a long period of time is winning. iii) Cons
istency To not simply open a restaurant, but to truly develop a winning concept
requires implementing systems and procedures to ensure consistency of your opera
tion. iv) Market Appeal All restaurants want to be busy but winning concepts see
m to have a broad appeal and well developed points of difference that enable them
to dominate their market niche. To be the first place the customer thinks of goi
ng when choosing to dine out is the goal of the winning concept. v) Expandabilit
y Consistency of quality and service, and operating systems and management proce
dures established in the first unit can result in more expandable opportunities
where all systems are already developed and waiting to be implemented. vi) Menu
Pricing One of the most important factors in the strategic planning of a restaur
ant is in the development of the menu. It involves designing an appealing select
ion of menu
items that are competitively priced in the marketplace. Menu pricing is a very t
ricky task because you need to price items so that you can operate profitably an
d, just as important, offer your targeted guests a good price/value relationship
. vii) Selecting Prime Location The specific location within your target area al
so is critical. If you are situated in an infrequently traveled area no where ne
ar complimentary businesses or at the back of a mall, you limit your earning pot
ential. Even if you are the only outlet in town you must gauge the likelihood of
outsiders visiting your restaurant. If the restaurant is right off of a major f
reeway heavily traveled by truckers and road trippers you may be highly successf
ul despite a remote location. viii) Market Research
This is probably the most critical factor for running a successful fast food res
taurant. You need to visit fast food outlets, franchises and other chains to see
how your concept would fit into the neighborhood you are planning to target. Talk
to customers to know their preferences, some detailed meetings with restaurant
managers / owners over dinner would do the trick in obtaining best practices and
critical information that otherwise could have been overlooked. Keep in mind th
at because a concept works in one area does not mean it will be well-received by
customers in your location. Tastes are subject to location preference and more
often target market. In high scale urban areas (like PECHS, KDA etc.) you are mo
re likely to be successful with a niche concept than in a dense middle income ar
eas (like Gulistan e Jauhar). Another thing to consider is competition. If your
market is saturated with similar restaurants and the population may not be large
enough to support more restaurants, you may want to rethink your concept. 1. 6
Proposed Business Legal Status
Although the legal status of business tends to play an important role in any set
up, the proposed fast food business is assumed to operate on a sole proprietorsh
ip basis which may extend to partnership in case of addition of new products tha
t might add significant business to the existing setup.
2
OPENING A SUCCESSFUL RESTAURANT
From burger stands to barbeque steakhouses more and more restaurants are popping
up in cities every day. Since restaurants are such a common business venture, p
eople must enjoy running them. However, all of those advantages come at a price
- building a restaurant from scratch is not an easy task. It is a hard and expen
sive process, and the reality is that many restaurants fail in their first year
of business due to improper planning. But rest assured, there are ways to reduce
the risk of becoming another statistic. Following are some of the handy tips th
at can help run a successful fast food establishment. 2. 1 How to Start a Restau
rant?
2.1.1 Work in a Restaurant One of the best ways to reduce the risk of owning a f
ailed restaurant is to have some restaurant experience before you start. Many su
ccessful restaurateurs have said that the best way to prepare for owning a resta
urant is by working in one, hopefully in an eatery similar to one you d like to
open. You ll learn more than just how to serve food with a smile; you can learn
restaurant marketing, menu development, payroll, and other significant component
s of the restaurant world. Working in the restaurant industry and learning the b
asics is an important first step to becoming an owner. 2.1.2 Know Your Target Ma
rket Who do you see eating at your restaurant? Are you targeting the family crow
d, teenagers or seniors? Knowing your target market before you start planning wi
ll not only help you solidify your menu; it will help determine your location, dc
or and the overall atmosphere of your restaurant. A family-style restaurant, whi
ch caters to parents and their kids, may not appeal to seniors. On the other han
d, an upscale, quiet restaurant offering a two-hour dining experience wouldn t b
e appealing to teenagers or families with small children. 2.1.3 Select a Service
Style & Food Concept What type of restaurant do you see yourself owning? Typica
lly, your service style will either be fast-food, which offers food types that r
ange from burgers, fries, soups and sandwiches; mid-scale, which has full course
meals at value prices; or upscale, offering full service meals with high-class
ambiance and, in turn, higher prices. After narrowing your establishment to one
of these three options, you can narrow your style of food choices. Is there a pa
rticular type of cuisine that you see yourself serving? Do you prefer pizza or s
oup? Sandwiches or Chinese? Choosing your food concept goes handin-hand with you
r choice in service style. 2.1.4 Develop a Business Plan Like any other type of
company, a restaurant will need a concise business plan. This plan should includ
e but is not limited to: the overall concept and goal of the restaurant; specifi
c
financial information and projections; a description of the target market; the m
enu and pricing; equipment and employee details; advertising and marketing plan;
and a potential exit strategy. 2.1.5 Create the Menu and not a menu The menu can ma
ke or break a restaurant, and should be in accordance with the overall concept o
f the restaurant. Revisit the business plan to make sure the menu is attractive
to the target market, is affordable within specified budget, and complements the
restaurant s design concept. For example, if the restaurant is family-friendly,
you will need a kids menu. If it is supposed to be an upscale establishment, a
lot of thought will have to go into the dessert list. 2.1.6 Choose a Location &
Layout It is important to find a location that has a continuous stream of traffi
c, convenient parking, and is in proximity to other businesses (especially if yo
u re catering to the lunch crowd). It is necessary to revisit the business plan
to make sure you are close to your target market. If you are opening a fast food
restaurant, it may not be the best idea to open it in the vicinity of upscale h
omes but preferably near flats. In addition, make sure that the monthly rent is
in-line with the business plan s projected profit so that you do not become buil
ding-poor. Once you find your location, the layout and design of the interior sh
ould be taken into account. You should already have a concept of your restaurant
in your business plan; bring this concept into the design of the dining room. W
hen designing your kitchen area, think about what s on your menu in order to det
ermine what is needed for the food preparation area. 2.1.7 Getting the Appropria
te Funding The business plan will help you recognize how much money you will nee
d to start your restaurant. If you are unsure about how much money you will need
upfront, talking to other restaurant owners can help you project your expected
start-up costs. There are numerous ways restaurateurs raise capital to start the
ir business, including taking advantage of government programs that cater to ups
tart small business owners; liquidating assets or using them as collateral for a
loan; or encouraging a family or friend to become the creditor. 2.1.8 Be Famili
ar With Safety Regulations Restaurants are regulated and subject to inspection,
and failing to be up to speed with these regulations could be detrimental to the
fast food outlet. Therefore it is necessary to consult with old restaurateurs t
o become familiar with what one must do to meet the necessary legal requirements
. 2.1.9 Hiring Employees One of the biggest challenges restaurants face is a lac
k of qualified labor. In order to get and retain qualified employees, make sure
your pay scales relate clearly to the job s duties
and responsibilities. In addition, find out what other restaurants are paying th
eir employees so that you can be competitive in the job market, without spending
too much on payroll. However try linking your payroll with the bottom line and
see how much money can be squeezed out for the employees. 2.1.10 Advertise & Mar
ket Every business needs a comprehensive marketing plan, and restaurants are no
exception. After determining your marketing budget, price out billboard advertis
ing, flyers in newspapers, and local cable TV advertising. Ask your customers ho
w they found out about you, so that you can record where your advertising and ma
rketing money are best spent. Opening up food stalls and setting up tasting boot
hs at local neighborhood events or having an event at the restaurant benefiting
a students / event, can be an inexpensive way to achieve positive word-of-mouth.
2. 2 Choosing a Location
Not every food-service operation needs to be in a retail location, but for those
that do depend on retail traffic like fast food outlets, here are some factors
to consider when deciding on a location:
Anticipated sales volume. How will the location contribute to your sales volume?
Accessibility to potential customers. Consider how easy it will be for customer
s to get into your outlet. If you are relying on strong pedestrian traffic, cons
ider whether or not nearby businesses will generate foot traffic for you. The re
nt-paying capacity of your business. If you ve done a sales-and-profit projectio
n for your first year of operation, you will know approximately how much revenue
you can expect to generate, and you can use that information to decide how much
rent you can afford to pay. Restrictive ordinances. You may encounter unusually
restrictive ordinances that make an otherwise strong site less than ideal. Traf
fic density. With careful examination of food traffic, you can determine the app
roximate sales potential of each pedestrian passing a given location. Two factor
s are especially important in this analysis: total pedestrian traffic during bus
iness hours and the percentage of it that is likely to patronize your food servi
ce business. Visibility is a locations ability to be seen and recognized. Good vi
sibility can create opportunities for the impulse eating decision that is critic
al for fast food operators, and it allows the exposure full-service restaurants
require. Customer parking facilities. In case you allow for parking the site sho
uld provide convenient, adequate parking as well as easy access for customers. P
roximity to other businesses. Neighboring businesses may influence your store s
volume, and their presence can work for you or against you.
History of the site. Find out the recent history of each site under consideratio
n before you make a final selection. Who were the previous tenants, and why are
they no longer there? Terms of the lease. Be sure you understand all the details
of the lease, because it s possible that an excellent site may have unacceptabl
e leasing terms. Future development. Check with the local planning board to see
if anything is planned for the future that could affect your business, such as a
dditional buildings nearby or road construction. Deciding on the Layout
2. 3
Layout and design are major factors in your restaurant s success. You ll need to
take into account the size and layout of the dining room, kitchen space, storag
e space and counter. Typically, restaurants allot 40 to 60 percent of their spac
e to the dining area, approximately 30 percent to the kitchen and prep area, and
the remainder to storage and office space.
Dining area. This is where you ll be making the bulk of your money, so don t cut
corners when designing your dining room. Visit restaurants in your area and ana
lyze the dcor. Watch the diners; do they react positively to the dcor? Is it comfo
rtable or are people shifting in their seats throughout their meals? Note what w
orks well and what doesn t.
Much of your dining room design will depend on your concept. It will help you to
know that 40 to 50 percent of all sit-down customers arrive in pairs; 30 percen
t come alone or in parties of three; and 20 percent come in groups of four or mo
re. To accommodate the different groups of customers, use tables for four that c
an be pushed together in areas where there is ample floor space. This gives you
flexibility in accommodating both small and large parties. Place booths for four
to six people along the walls.
Production area. Too often, the production area in a restaurant is inefficiently
designed--the result is a poorly organized kitchen and less than top-notch serv
ice. Keep your menu in mind as you determine each element in the production area
. You ll need to include space for receiving, storage, food preparation, cooking
, baking, dishwashing, production aisles, trash storage, employee facilities and
an area for a small office where you can perform daily management duties.
Arrange your food production area so that everything is just a few steps away fr
om the cook. Your design should also allow for two or more cooks to be able to w
ork side by side during your busiest hours.
2. 4
Designing & Decor
Since customers ultimately drive restaurant design trends, many of your restaura
nt design ideas will come from your clientele. Successful restaurant design idea
s are bred with an understanding of the types of experiences your customers are
looking for and the promise your brand has made to them. You may know what types
of menu items they crave, but do you know what kinds of restaurant design ideas
create an atmosphere that will welcome them time and time again?
Step One: The
restaurant designers process begins with a thorough understanding of the eaterys m
enu, location, customers, architectural preferences and lighting concerns. More
than just a design powwow, the restaurant designers process includes budget consi
derations, timelines and coordination with city officials to secure necessary bu
ilding permits. Step Two: The most effective restaurant design considers the flo
w of waiter staff from the kitchen to the dining area or from the dining area to
the restrooms. The restaurant designers process contemplates the overall circula
tion within the restaurant for maximum efficiency Step Three: With the floor pla
n in hand and a concept in mind, the next stage in the restaurant designers proce
ss is interior design. Sketches may depict color schemes, furniture placement, w
indow treatments, artistic lighting and other aspects of the ambiance. This is a
lso the part of the restaurant designers process where we consider paints, wallpa
pers, foliage and artwork. Creating a Menu
2. 5
Though menu variety has increased over the years, menus themselves are growing s
horter. Busy consumers don t want to read a lengthy menu before dinner; dining o
ut is a recreational activity, so they re in the restaurant to relax. Keep your
number of items in check and menu descriptions simple and straightforward, provi
ding customers with a variety of choices in a concise format. Your menu should a
lso indicate what dishes can be prepared to meet special dietary requirements. I
tems low in fat, sodium and cholesterol should also be marked as such. 2. 6 Rest
aurant Size
That depends to some extent on how you answered the fundamental question mention
ed above. For the sake of discussion, a restaurant can be understood in two part
s; the fronthouse component and the back-house component, which we will call the
engine. The backhouse areas include, the cook-line, the food preparation areas,
refrigerated any dry storage areas, office and the dishwashing area. The fronthouse functions are typically dining areas (interior and exterior), waiting area
, to-go area, restroom, and private dining areas.
The speed of product delivery; the size of the engine, a casual or formal atmosp
here, and numbers of patrons you want to accommodate will all factor in to the a
mount of space you need for your restaurant. The goal is trying to maximize the
number of patrons one can serve, out of the smallest most efficient back-house p
ossible. 2. 7 Hiring the Right Employees
Choosing employees who will do a good job is not only important to the success o
f your business, but will also contribute to the image of your establishment, pr
ovided they are properly trained. There are several categories of personnel in t
he restaurant business: manager, cooks, servers, busboys, dishwashers and cleane
rs. When your restaurant is still new, some employees duties may cross over fro
m 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.
Manager
/ Owner. The most important employee in most restaurants is the manager. The bes
t candidate is you or a person who has already managed a restaurant or restauran
ts in the area and will be familiar with local buying sources, suppliers and met
hods. The manager should have leadership skills and the ability to supervise per
sonnel while reflecting the style and character of the restaurant. Chefs and coo
ks. When you start out, you ll probably need three cooks - two full time and one
part time. But one lead cook may need to arrive early in the morning to begin p
reparing soups, bread and other items to be served that day. One full-time cook
should work days, and the other evenings. The part-time cook will help during pe
ak hours, such as weekend rushes, and can work as a line cook during slower peri
ods, doing simple preparation. Cooking schools can usually provide you with lead
s to the best in the business, but look around and place newspaper ads before yo
u hire. Customers will become regulars only if they can expect the best every ti
me they dine at your restaurant. To provide that, you ll need top-notch cooks an
d chefs. Servers. The servers will have the most interaction with customers, so
they need to make a favorable impression and work well under pressure, meeting t
he demands of customers at several tables while maintaining a pleasant demeanor.
There are two times of day for wait staff: very slow and very busy. Schedule yo
ur employees accordingly. The lunch rush, for example, starts around 11:30 a.m.
and continues until 1:30 or 2 p.m. Restaurants are often slow again until the di
nner crowd arrives around 6:30 to 7 p.m.
2. 8
A Good Fast Food Restaurant Experience
Based on some surveys conducted with fast food goers following are some of the f
actors that contribute to a good fast food experience:
Location Charact
Welcome Food server Food. Environment (parking, restrooms, lighting). Dessert Va
riety Smile factor. Time factor. Profit factor (beverages offered, dessert menus
presented).
Measuring good service is subjective, but generally what is expected from a serv
er when reviewing restaurants.
The server should greet diners within
f 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 q
uestions. 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 re
filled regularly. The server should silently survey the table and assess our nee
ds without constantly interrupting to ask, "Do you need anything else?" The bill
should be brought promptly when requested, and change should be returned prompt
ly. Plates should be removed at the proper time, and the table should be cleared
of bread and butter before dessert is served. Legal Requirements
2. 9
The Pakistan Hotels and Restaurant Acts Act 1976 is the law which requires the o
wners of all types of restaurants to register and obtain a license with the gove
rnment. The restaurant owner is required to apply to the controller for registra
tion of the restaurant.
Application for registration and determination of fair rates shall be made to th
e 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 t
he restaurant. For registration of a restaurant, the owner of the restaurant is
required to conform to the standard of health, hygiene and comfort which standar
ds have been set out in Schedule II of the act. On receipt of application, the c
ontroller will carryout inspection of the aforementioned premises and once satis
fied will initiate the registration process. Once registered the owner of the re
staurant will apply to the controller for license as per the Act which needs to
be renewed on a yearly basis for the prescribed fee. 2. 10 Project Investment
This section will provide the total cost of the project. Item Construction Cost
(all inclusive) Dining & Office Furniture Equipment & Machinery Advance Rent Pre
liminary Expenses Working Capital Total Cost (Rs.) 1,307,000 542,250 967,000 1,2
00,000 50,000 1,036,000 5,102,250
2. 11
Proposed Product Mix
The proposed project is assumed to provide customers with a variety of fast food
items as outlined in the following menu:
Broast Chicken Broast (Qtr.) Chicken Broast (Half) Chicken Broast (Full) Burgers
Chicken Burger Chicken Cheese Burger Beef Burger Beef Cheese Burger Zinger Burg
er Sandwiches Chicken Sandwich Egg Sandwich Beef Sandwich Club Sandwich Price 65
125 250 Price 50 55 40 45 80 Price 55 40 45 80 Chinese Hot & Sour Soup (2 Servi
ngs) Hot & Sour Soup (4 Servings) Chicken Corn Soup (2 Servings) Chicken Corn So
up (4 Servings) Plain Rice Chicken Fried Rice Vegetable Fried Rice Egg Fried Ric
e Beef Fried Rice Beef Chilli (w/o rice) Chicken Chilli (w/o rice) French Fries
(per plate) Cole Slaw Soft Drinks (Large) Soft Drinks (Regular) Price 75 140 75
140 40 80 60 70 80 75 85 Price 25 15 50 15
Based on the above the fast food restaurant can offer low cost combo meals to it
s customers for increased value. Following are the proposed combo deals that can
be further modified to meet increasing demand:
Combos Combo Deal 1 Combo Deal 2 Combo Deal 3 Combo Deal 4 Family Deal 1 Family
Deal 2 Jumbo Deal Items Zinger Burger / French Fries / Regular Drink Chicken Bro
ast (Qtr.) / French Fries / Regular Drink Chicken Burger, Broast (Qtr.), French
Fries, Regular Drink Club Sandwich / French Fries / Regular Drink Full Broast /
Zinger Burger / Club Sandwich / French Fries (4) / Large Drink Zinger Burger (2)
/ Club Sandwich (2) / Broast (Half) / Large Drink / Fries (2) 5% discount on pu
rchase above Rs. 1,000/Price 105 90 135 105 535 515
It desirable to have a vast variety of food items to capture a larger target aud
ience but initially the entrepreneur needs to be careful in choosing the right p
roduct mix that has the greatest acceptability such that the sales volume genera
ted are able to cover the initial setup costs and desired profit margins. Once t
he fast food restaurant achieves a steady sales pattern further food items like
Barbeque can be added and similarly for desserts ice cream would be the best pot
ential. In case circumstances demand items other than the proposed menu the entr
epreneur should make immediate changes to the menu before he starts loosing out
customers.
One important factor to consider here is that the entrepreneur must have the req
uisite skills to decide on whether to introduce a new product line (like Barbequ
e, Pizza) or add a new item to the existing product line both of which might req
uire the purchase of additional kitchen equipment. Hence the experience of the e
ntrepreneur will play an important role in determining the course of action. 2.
12 Recommended Project Parameters Human Resource 21 Equipment Local / American /
Chinese Location Middle Income Level Area Cost of Capital (WACC) 17.5%
Capacity 300 Customers per day
Financial Summary Project Cost Rs. 5,102,250 2. 13 IRR 57% NPV Rs. 13,076,676 Pa
yback Period 2.5 Years
Proposed Location
The recommended area for the proposed business setup will be in a densely popula
ted middle income area (for example Gulistan-e-Jauhar, Karachi). The main reason
for such a location is the presence of target market and customer traffic which
are the prerequisites for the success of the restaurant.
3
MACHINERY & EQUIPMENT
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. Fast Food
Machines are easily available in the market wherein the owner has to choose bet
ween expensive brands and cheaper ones depending on how much he can afford to gi
ve quality to his customers. Secondhand equipment of world leading brands such a
s SPINZER, FRYMASTER, HENNY PENNY, LINCOLN, AYRKING, KEATING, MIRROR, CARPIGIANI
, LINCAT, MORRETTI, ILSA, ROUND-UP, SANYO, ELETTROBAR are available while cheape
r Chinese brands have gained popularity over the years. The machines can be orde
red through international vendors with a minimum delivery period of 3 months whi
le refurbished / reconditioned machines are also available. Some outlets closing
their business also tend to sell their machinery at low prices but the durabili
ty and reliability factor must be taken into consideration while buying such mac
hines. The typical fast food restaurant as outlined above would require the foll
owing machine / equipment for its operations:
Item Details Freezers (12 cf) New Broast Machine (15 Pound Capacity)* Deep Well
Frier (Single Valve With 2 Baskets) Hot Plate for Burgers, Kebab, Sandwiches (30
x 22) Bin Marry Soup Container (2 Valve With Steel Cabinet) Potato Cutter (8mm) P
illar (4.5 Kg Potato Peeling Capacity) Microwave Working Tables Keg Racks & Shel
ves Total
Quantity 3 1 2 1 1 1 1 1 2 2 15
Unit Price (Rs.) 25,000 650,000 40,000 33,000 50,000 3,000 6,000 10,000 20,000 1
0,000 Total Price(Rs) 75,000 650,000 80,000 33,000 50,000 3,000 6,000 10,000 40,000 20
,000 967,000
* Available from Spinzer USA, Delivery Time Three Months, Reconditioned Availabl
e at Rs. 200,000 with the same specs and Delivery Time
3. 1
Machinery Maintenance
All machines require routine cleaning and maintenance after every three months a
nd an annual service which costs around 1% to 5% of the total cost depending upo
n the use of the machine and operator s skill. We have assumed an average of 2.5
% of the depreciated cost as the annual maintenance cost. 3. 2 Dining Furniture
& General Fixtures
The restaurant is expected to entertain a minimum of 300 customers in a day, whi
ch requires a good seating layout to avoid any confusion and problems during rus
h hours. The following table gives the details of the dining tables and chairs t
hat would serve approximately 100 customers (maximum capacity) at a time:
Item Details Dining Table Square (2X2) Chairs (Standard 14) Kitchen Cutlery Set D
ining Cutlery* (Plate, Fork, Knife, Spoon, Glass) Air Conditioner Split Units (6
Ton) Hot Water Geyser Large Halogen Lights Wall Lights (Large) Portable Emergen
cy Light Generator (1.5 KVA) Counter Chairs Office Table & Chair Set Waiting Cha
irs for Take Away Customers Total
Quantity 25 100 2 150 2 1 25 4 4 1 2 1 5 322
Unit Price (Rs.) 6,000 1,500 2,500 150 31,000 20,000 250 1,500 2,500 90,000 1,50
0 10,000 1,500 168,400
Total Price(Rs) 150,000 150,000 5,000 22,500 62,000 20,000 6,250 6,000 10,000 90
,000 3,000 10,000 7,500 542,250
*Cutlery to be 1.5 times the maximum capacity (i.e. 100 customers)
4
4. 1
LAND & BUILDING REQUIREMENT
Land Requirement
The land requirement is around 2,000 sq.ft. in densely
utilities and facilities are properly available. It is
food outlet be opened on the ground floor of flats or
consumer traffic will be a maximum. The more the shop
better sales potential it will have.
populated area where all

recommended that the fast
shopping mall wherein the
is near the main road the
4. 2
Dedicated Area Requirement
The floor space needs to be carefully allocated to allow for maximum dining spac
e for customers in rush hours. The allocation of space between different section
s would be as follows:
% (Sq. Feet) 63 % 4% 3% 25 % 1.5% 3% 100 % Size (Sq. Feet) 1,250 80 70 500 30 70
2,000 Civil Works & Dcor* (Cost in Rs / square feet) 700 700 800 450 450 450 3,5
50 Total Construction Cost (Rs) 875,000 56,000 56,000 225,000 13,500 31,500 1,25
7,000
Details Dining Waiting Kids Play Kitchen & Preparation Office Stores Total
* Includes interior decoration as well as fancy fittings, lightings, hangings et
c.
4. 3
Recommended Mode
The proposed premises will be acquired on a rental basis with 6 month deposit an
d 6 months advance rent after which rent will be payable on a monthly basis. The
monthly rent is approximately Rs. 50/ Sq Feet for the ground floor which would
amount to Rs. 100,000 per month for the proposed fast food outlet (2,000 Sq Ft.)
4. 4 Reception & Owner Office
To allow for maximum space for dining and security concerns (Cash control) it is
recommended that the owner should manage the reception counter as well as all c
ash handling emanating from the tables. Therefore a total of Rs. 50,000 would be
required to erect the reception and cash counter along with the take-away order
taking booth. The Office Furniture & Equipment will be depreciated at the rate
of 10% per annum according to the diminishing balance method for the projected p
eriod.
5
HUMAN RESOURCE REQUIREMENT
The human resource requirement for the general and management staff are as follo
ws:
Designation / Type Owner Kitchen Supervisor Shift Supervisor (including reliever
) Cook Servers Take Away Order Taker / Cashier Dishwasher Cleaner Guard (12 Hour
) Total
Number 1 2 3 4 6 1 2 1 1 21
Monthly Salary (Rs.) 6,000 8,000 4,000 3,000 6,000 2,500 2,500 6,000 38,000
Total Salary (Rs.) 12,000 24,000 16,000 18,000 6,000 5,000 2,500 6,000 89,500
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 require
d to process and check bills, invoices, receivables management, maintain account
s, etc. for record. The owner will also ensure safe custody of store keys. The c
ashier will only be responsible for receiving payment and handing over change wh
ile the owner would be managing the cash drawer for control purposes. It is impo
rtant to note that many food outlets tend to lose out due to inadequate cash con
trol by the owners especially during rush hours where the counter staff can easi
ly slip out one or two payments.
6
FINANCIAL ANALYSIS & KEY ASSUMPTIONS
The project cost estimates for the proposed fast food outlet have been formulate
d on the basis of discussions with relevant stakeholders and experts. The cost p
rojections cover the cost of land, building, inventory, equipment including offi
ce furniture etc. The specific assumptions relating to individual cost component
s are given as under: 6. 1 Revenue & Cost Projections
The Sales are expected to increase by 15% every year while the cost of raw mater
ials is assumed to increase by 10%. The 15% annual increase in revenue is expect
ed to result from a part increase in population increase and part increase in pr
oduct price.
The prices used to calculate the gross revenue earned are based on the billing r
ate at which the entrepreneur will charge the customer. The prices are also incl
usive of the General Sales Tax. Furthermore it is assumed that the following sal
es breakup will form the revenue streams for the fast food outlet
Revenue Stream Dine In Take Away Home Delivery Total Revenue % of Total Sales 60
% 20% 20% 100%
The minimum delivery order size is assumed to be Rs. 250/- per order with 3 deli
very riders being employed at the charge out rate of Rs. 25 per delivery order w
herein no transportation fuel is provided by the fast food outlet. For Take Away
and Home Delivery another 1% of sales added cost due to packing is assumed. 6.
2 Rent Cost The rent for the assumed premises will be Rs. 100,000/- per month. I
t is assumed that Rs. 1,200,000 will be given in advance before possession of pr
emises. This will include 6 months deposit and 6 month advance rent. The rent wo
uld be payable on a monthly basis and is expected to increase at the rate of 10%
per annum for the projected period. 6. 3 Utilities Requirement
The following table presents the assumed breakup of utilities on a monthly basis
: Utility Electricity Water Gas Telephone Total Monthly Charges (Rs.) 25,000 2,0
00 15,000 10,000 52,000
As depicted above the most of the fast food machines require considerable gas du
ring the preparation process. The preheating procedure of the equipment before c
ommencement of preparation also consumes considerable gas. It is assumed that ut
ilities expenses will be increased by 10% every year. 6. 4 Depreciation on Build
ing & Equipment
Depreciation on Shop, Equipment, Machinery and Fixtures is assumed to be at the
rate of 10% per annum based on the diminishing balance method for the projected
period. 6. 5 Working Capital & Pre Operating Costs
It is estimated that an additional amount of approximately Rs. 1,036,000 will be
required as cash in hand to meet the working capital requirements / contingency
cash for the initial stages. The requirement is based on the rent, utilities an
d salaries expenses for at least four months and 3 days raw material inventory.
The following table gives the break up. Item Utilities Salaries Raw Material Inv
entory Rent Total 4 Months Cost (Rs.) 208,000 358,000 70,000 400,000 1,036,000
The provision for pre operating costs is assumed to be Rs. 50,000 which will be
amortized equally over a 5 year period. 6. 6 Account Receivables
All sales will be made strictly on cash basis. It is not advisable to operate a
fast food restaurant on credit basis. 6. 7 Miscellaneous Outlet Expenses
A monthly figure of Rs. 6,000 (200 per day) is assumed to be incurred for miscel
laneous expenses which are expected to increase at the rate of 10% per annum for
the projected period.
6. 8
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 Bui
lding, Purchase of machinery & equipment, purchase of inventory etc. This facili
ty 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. 6. 9 Taxation
The tax rate applicable to sole proprietorship is the same as that of the salari
ed individual. Therefore, we are assuming that the tax rate would be the same fo
r the proposed fast food setup. 6. 10 Cost of Capital
The cost of capital is explained in the following table: Particulars Required re
turn on equity Cost of finance Weighted average cost of capital Rate 20.0 % 15.0
% 17.5 %
The weighted average cost of capital is based on the debt/equity ratio of 50:50.
6. 11 Owners Withdrawal
It is assumed that the owner with withdraw from the business once the desired pr
ofitability is reached from the start of operations. The amount would depend on
business sustainability and availability of funds for future growth.
6. 12
Key Assumptions Item Assumption(s)
Sales Increase 15 % per year Increase in Cost of Raw Materials 10 % per year Inc
rease in Staff Salaries 10 % per year Increase in Utilities (Electricity / Water
/ 10 % per year Gas) Increase in Rent 10 % per year Increase in Office Expenses
10 % per year Debt / Equity Ratio 50 : 50 Depreciation o Shop Building & Fixtur
es 10 % per annum (Diminishing Balance) o Kitchenware & Machinery 10 % per annum
(Diminishing Balance) o Furniture 10 % per annum (Diminishing Balance) Equipmen
t Annual Maintenance Cost 2.5% of Written Down Value Raw Food Inventory - Meat 3
Days Raw Food Inventory Spices & Sauce 7 Days Lease Period 5 Years Lease Instal
lments Monthly Financial Charges (Lease Rate) 15 % per annum Tax Rate Income Tax
on Salaried Individuals
INCOME STATEMENT:
Projected Income Statement (Rs.)
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Revenue Net Sales Raw Material Cost Labor & Salaries Utilities Cost of Sales Gro
ss Profit General Administrative & Selling Expenses Rent Expense Office & Miscel
laneous Expenses Amortization Expenses Depreciation Expense Maintenance Expense
Subtotal Operating Income Financial Charges (15% Per Annum) Earnings Before Taxe
s Tax Net Profit Monthly Profit After Tax
10,015,200 11,517,480 13,245,102 15,231,867 17,516,647 20,144,145 23,165,766 26,
640,631 30,636,726 35,232,235 10,015,200 11,517,480 13,245,102 15,231,867 17,516
,647 20,144,145 23,165,766 26,640,631 30,636,726 35,232,235 4,910,141 5,401,155
5,941,270 6,535,397 7,188,937 7,907,831 8,698,614 9,568,475 10,525,323 11,577,85
5 1,074,000 1,181,400 1,299,540 1,429,494 1,572,443 1,729,688 1,902,657 2,092,92
2 2,302,214 2,532,436 624,000 686,400 755,040 830,544 913,598 1,004,958 1,105,45
4 1,215,999 1,337,599 1,471,359 6,608,141 7,268,955 7,995,850 8,795,435 9,674,97
9 10,642,477 11,706,725 12,877,397 14,165,137 15,581,650 3,407,059 4,248,525 5,2
49,252 6,436,432 7,841,668 9,501,668 11,459,042 13,763,234 16,471,589 19,650,584
1,200,000 72,000 10,000 281,625 21,758 1,585,383 1,821,677 357,889 1,463,788 365
,947 1,097,841 91,487
1,320,000 79,200 10,000 253,463 19,582 1,682,244 2,566,281 298,344 2,267,936 566
,984 1,700,952 141,746
1,452,000 87,120 10,000 228,116 17,624 1,794,860 3,454,392 229,228 3,225,164 806
,291 2,418,873 201,573
1,597,200 95,832 10,000 205,305 15,861 1,924,198 4,512,234 149,001 4,363,233 1,0
90,808 3,272,425 272,702
1,756,920 105,415 10,000 184,774 14,275 2,071,384 5,770,284 55,878 5,714,406 1,4
28,602 4,285,805 357,150
1,932,612 115,957 0 166,297 12,848 2,227,713 7,273,955 0 7,273,955 1,818,489 5,4

55,466 454,622
2,125,873 127,552 0 149,667 11,563 2,414,655 9,044,386 0 9,044,386 2,261,097 6,7
83,290 565,274
2,338,461 2,572,307 2,829,537 140,308 154,338 169,772 0 0 0 134,700 121,230 109,
107 10,407 9,366 8,429 2,623,875 2,857,241 3,116,846 11,139,359 13,614,348 16,53
3,738 0 0 0
11,139,359 13,614,348 16,533,738 2,784,840 3,403,587 4,133,435 8,354,519 10,210,
761 12,400,304 696,210 850,897 1,033,359
BALANCE SHEET:
Projected Balance Sheet (Rs.) Assets Current Assets Cash & Bank Balance Prepaid
Rent Total Current Assets Fixed Assets Fast Food Machinery Shop Office Fixtures
Total Fixed Assets Preliminary Expenses Total Assets Owner s Equity Long Term Li
ability Total Equity & Liabilities
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
1,036,000 1,200,000 2,236,000
2,055,062 1,200,000 3,255,062
3,589,528 1,200,000 4,789,528
5,747,452 1,200,000 6,947,452
8,655,889 1,200,000 9,855,889
12,464,053 1,200,000 13,664,053
18,085,816 1,200,000 19,285,816
25,018,772 1,200,000 26,218,772
33,507,992 1,200,000 34,707,992
43,839,983 1,200,000 45,039,983
56,349,394 1,200,000 57,549,394
967,000 1,307,000 542,250 2,816,250 50,000 5,102,250 2,551,125 2,551,125 5,102,2
50
870,300 1,176,300 488,025 2,534,625 40,000 5,829,687 3,648,966 2,180,721 5,829,6
87
783,270 1,058,670 439,223 2,281,163 30,000 7,100,690 5,349,918 1,750,772 7,100,6
90
704,943 952,803 395,300 2,053,046 20,000 9,020,498 7,768,791 1,251,707 9,020,498
634,449 857,523 355,770 1,847,742 10,000 11,713,631 11,041,216 672,415 11,713,63
1
571,004 771,770 320,193 1,662,967 15,327,020 15,327,020 0 15,327,020
513,903 694,593 288,174 1,496,671 20,782,486 20,782,486 0 20,782,486
462,513 625,134 259,356 1,347,004 27,565,776 27,565,776 0 27,565,776
416,262 562,621 233,421 1,212,303 35,920,295 35,920,295 0 35,920,295
374,636 506,359 210,079 1,091,073 46,131,056 46,131,056 0 46,131,056
337,172 455,723 189,071 981,966 58,531,360 58,531,360 0 58,531,360
CASH FLOW STATEMENT:
Projected Statement of Cash Flows (Rs.) Cash Flow From Operating Activities Net
Profit Add: Depreciation Expense Amortization Expense Net Cash Flow From Operati
ons Cash Flow From Financing Activities Receipt of Long Term Debt Repayment of L
ong Term Debt Owner s Equity Net Cash Flow From Financing Activities Cash Flow F
rom Investing Activities Construction Cost Office Furniture Equip & M/C Advance
Rent Preliminary Expenses Net Cash Flow From Investing Activities NET CASH FLOW
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
0 0 0 0
1,097,841 281,625 10,000 1,389,466
1,700,952 253,463 10,000 1,964,415
2,418,873 228,116 10,000 2,656,989
3,272,425 205,305 10,000 3,487,729
4,285,805 184,774 10,000 4,480,579
5,455,466 166,297 0 5,621,763
6,783,290 149,667 0 6,932,957
8,354,519 134,700 0 8,489,220
10,210,761 121,230 0 10,331,991
12,400,304 109,107 0 12,509,411
2,551,125 (370,404) 2,551,125 5,102,250 (370,404) (429,949) (499,065) (579,292)
(672,415) 0 0 0 0 0 (429,949) (499,065) (579,292) (672,415) 0 0 0 0 0
(1,307,000) (967,000) (542,250) (1,200,000) (50,000) (4,066,250) 1,036,000 0 1,0

19,062 0 1,534,466 0 2,157,924 0 2,908,437 0 3,808,164 0 5,621,763 0 6,932,957 0
8,489,220 0 10,331,991 0 12,509,411
Cash at the Beginning of the Period
0
1,036,000
2,055,062
3,589,528
5,747,452
8,655,889
12,464,053
18,085,816
25,018,772
33,507,992
43,839,983
FAST FOOD RESTAURANT Cost & Revenue Sheet
Broast Chicken Broast (Qtr.) Chicken Broast (Half) Chicken Broast (Full) Burgers
Chicken Burger Chicken Cheese Burger Beef Burger Beef Cheese Burger Zinger Burg
er Sandwiches Chicken Sandwich Egg Sandwich Beef Sandwich Club Sandwich Cost 35
70 140 Cost 20 25 18 23 40 Cost 20 12 20 35 Price 65 125 250 Price 50 55 40 45 8
0 Price 55 40 45 80 300 Unit Sales 36 18 6 Unit Sales 24 36 18 18 24 Unit Sales
21 6 3 30 TOTAL 0.12 0.06 0.02 Total Cost 1260 1260 840 Total Cost 480 900 324 4
14 960 Total Cost 420 72 60 1050 8040 Total Sales 2340 2250 1500 Total Sales 120
0 1980 720 810 1920 Total Sales 1155 240 135 2400 16650 Chinese Hot & Sour Soup
(2 Servings) Hot & Sour Soup (4 Servings) Chicken Corn Soup (2 Servings) Chicken
Corn Soup (4 Servings) Plain Rice Chicken Fried Rice Vegetable Fried Rice Egg F
ried Rice Beef Fried Rice Beef Chilli (w/o rice) Chicken Chilli (w/o rice) Frenc
h Fries (per plate) Cole Slaw Soft Drinks (Large) Soft Drinks (Regular 250ml) Co
st Price Unit Sales 25 75 6 50 140 3 25 75 6 50 140 3 12 40 3 20 80 12 18 60 6 1
8 70 3 20 80 3 30 75 6 35 85 9 Cost Price Unit Sales 8 25 5 6 15 5 40 50 10 9 15
375 TOTAL 0.02 0.01 0.02 0.01 0.01 0.04 0.02 0.01 0.01 0.02 0.03 Total Cost Tot
al Sales 150 450 150 420 150 450 150 420 36 120 240 960 108 360 54 210 60 240 18
0 450 315 765 Total Cost Total Sales 40 125 30 75 400 500 3375 5625 5438 11170
0.08 0.12 0.06 0.06 0.08
0.07 0.02 0.01 0.1
Total Sales (Rs) Total RM Cost (Rs.) Gross Profit (Rs.)
Daily 27,820 13,478 14,342
Monthly 834,600 404,340 430,260
Additional 4,838
Final 834,600 409,178 425,422
0.509731129
Sales Break Down Daily Basis Dine In (60%) Take Away (20%) Delivery (20%) Total
Orders Value (Rs) Packing Cost 1% of Sales 180 60 60 300 500,760 166,920 166,920
834,600 1,669 1,669 3,338
Delivery Cost 25 / Order 1,500 1,500
Add Cost
1,669 3,169 4,838

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Pre-Feasibility Study

FAST FOOD RESTAURANT

populated area where all

1,932,612 115,957 0 166,297 12,848 2,227,713 7,273,955 0 7,273,955 1,818,489 5,4

(1,307,000) (967,000) (542,250) (1,200,000) (50,000) (4,066,250) 1,036,000 0 1,0

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