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Title of the Assignment:

Business Plan for Ahar Fast Food & Restaurant

BUS 101: Introduction to Business

Group Assignment

Submission Date: 27/04/2010

Submitted by:
Munsurur Rahman Azad 101-11-1319
Rajib Tripura 101-11-1320
M. Faiyaz Naveed 101-11-1330
Rumana Akter 101-11-1352
Group: B
Section: A

Submitted to:
Farhana Noor
 Lecturer, BBA Program, Daffodil International University

Table of Contents

1 Executive Summary
2 The Industry, The Company and The Services
2.1 The Industry
2.2 The Company
2.3 The Services
2.3.1 Fast food services
2.3.2 Discount services
2.3.3 Food supplies services
2.3.4 Decorations and Event Arrangement
2.3.5 Consultancy Services
2.4 Entry and Growth Strategy
3 The Management Team
3.1 Qualifications
3.1.1 Operations
3.1.2 Marketing
3.1.3 Finance
4 Market research and analysis
4.1 Customers
4.1.1 Food customers
4.1.2 Catering supplies customers
4.1.3 Event Arrangement Customers
4.2 Market Size
4.3 Competition
4.4 Ongoing Market Evaluation
4.4.1 Business Survey
4.4.2 Client Survey
5 Marketing Plan
5.1 Overall Market Strategy
5.2 Pricing
 5.3 Sales Tactics
5.4 Adverting and Promotion
6 Financial Data
6.1 Profit and Loss Forecasts
6.1.1 Assumptions
6.1.2 Risks and Sensibility
6.2 Pro Forms Cash Flow Analysis
6.2.1 Assumptions
6.2.2 Cash Flow Sensibility
6.3 Pro Forma Balance Sheets
6.4 Breakeven Chart
6.5 Cost Control
Reference Lists
 1 Executive Summary
The Ahar Fast Food and Restaurant was formed on June 2008 in Old-Dhaka, Bangladesh by a
highly knowledgeable and experienced business manager who had been working in Sonargaon.
The core reasons to establish the business are:

• The need of chain fast food restaurant in Old-Dhaka.

• The people who live in the Old-Dhaka do not have any one stop event management
organization.

• The foods provided by the restaurants are inferior in quality and lack healthy
environment for having foods.

• We have established our organization in Old-Dhaka to maintain the pedigree of our

ancestors.
 2 The Industry, The Company and The Services
2.1 The Industry

The name of our industry will be Ahar Fast Food & Restaurant. It will be a Service Company
and will provide service over Old-Dhaka City. There are not much Fast food restaurants and
party service provider in the Old Dhaka area. Fast food business owners have neglected the
area because their target market was youngsters of highly developed areas, like- Gulshan,
Basundhara etc. But things have changed a lot over the years. The inhabitants of the area are
literally changing their life style thanks to their changing demography. Some small Fast food
restaurants have been established, but these certainly can’t render the services what our
company can provide.

2.2 The Company

This company will be a sole-proprietorship business and Mr. Rahman is going to be the owner
of this company. The idea of establishing this company came to his mind in June 2008. Mr.
Rahman has the experience of being the G.M of Sonargaon hotel for over a decade. He
analyzed about different conditions regarding convenience to the customers.

We are going to make a huge change, building the Fast food chain over the entire Old-Dhaka
area along with that, our company will efficiently provide different party arrangements and
catering services, since we will render food supplies service. In this particular area many
different programs are held. People can not only have lunch or brunch in our organization but
we can easily provide party facilities. In Bangladesh, there are more than five thousand
restaurants and fast foods, but most of them are not much efficient to provide good and quality
services. Middle class and Lower middle class people will be the main customers of this
company. The main purpose of this company is to provide healthy, variety and best foods with
the quality services which are clear in the motto “Quality does matter!” There is a reason for
selecting specific three districts because those districts are economically well-off and the food
will be little bit costly than other’s foods of the other restaurants.

2.3 The Services

The following list represents the various services that Ahar Fast Food & Resturant will provide
through quality foods and services.

2.3.1 Fast food services

Our main objective is to serve our customers the best and the most likeable food they
wish to have. We are pricing a standard rate of food services.

2.3.2 Discount services

The industry will try to get retain consumers. As because of this, restaurant will provide 10%
discount service to the consumers when they will be served again.

2.3.3 Food supplies services

The industry will be able to provide foods and services in different occasion such as in
wedding parties, birthday parties, ceremonial parties, marriage day parties and DJ parties.

2.3.4 Decorations and Event Arrangement

This company will also be able to arrange parties and events or programs in the restaurant
and decorate it for the party in different occasions. This will help to prove foods and service
to the consumers.

2.3.5 Consultancy Services

We know that to organize any function, one needs to take a time off, from their individual
works, so we have decided to make things easier to our customers by providing consultancy
services.

2.4 Entry and Growth Strategy

In term of gaining traction in the market place, we have to allocate time to research the
 demands and growth essential of the Ahar Fast Foods & Restaurant market. Our competitive
advantage is, since there is no such big competitors are present in the market and there is no
such organization who can give such services as a whole. The facilities will help us to achieve
our goals and objectives. Our research of foods and restaurant indicates that these facilities and
services could be engaged but as we are the pioneers in this industry risks are certainly much
higher. But the services we provide is going to work as a temptation to our customers.

Advertising and promotional efforts will be concentrated in those areas that management
experience has demonstrated to be that most effective. The use of local magazine, television
channel, newspaper and other media will tap the market we desire.

As a very common and true of most new businesses, we expect our organization’s growth
during the first year to be slow. However, as more people get habitat to our services and foods
through a variety of foods, quality services, word of mouth and advertisement, we expect the
sells volume to triple within three years.

3 The Management Team

The following table lists the members of the management team of Events Unlimited and the
responsibilities of its member as well as employment prior to organization.

Team Members Department Experiences

Mr. Saidul Alam Operation Directing manager, ZinZian Restaurant

Ms. Rubaiya Khan Marketing Executive manager, Yami Yami Fast Food
& Restaurant

Mr. Hassan Mahmud Finance Accountant, Cozmo Cafe

3.1 Qualifications

3.1.1 Operations

Mr. Saidul Alam has finished his Postgraduate Degree in Business Administration from
Dhaka University. He has three year experiences of increasing responsibilities in hospitality
management for a company generating favorable and satisfactory services and managing HR
in orders in the latest fiscal years. During her eight years, Mr. Alam has coordinated the day-
to-day operation of a managing staff of five hundred persons and giving quality service to the
consumers in the restaurant. Along with his personnel management experience, he has gained
experience in working and managing with the large number of people in term of motivating
them, organizing them, making plan to execute them and cope up with the different kinds of
problems that occur during the working in the restaurants.

3.1.2 Marketing

Ms. Rubaiya Khan has finished her Postgraduate Degree in marketing from North-South
University. She has additional experiences in sales, marketing and management. Her
experiences include six years of marketing and administration responsibilities. In 2004, she
managed a boutique shop Arong in which she supervised sales personnel and took care of all
marketing and advertising, including newspaper layout, radio jingles and so on. In recent
years, she has broadened her experience to include book keeping, budged control, payroll,
contract negotiations, and customer contract. She has also prepared major presentation
materials for potential customers. Thus, she will be a potential person in the industry in term
of marketing restaurants, foods, selecting target market and motivating consumers.

3.1.3 Finance

Mr. Hassan Mahmud has completed his Postgraduate Degree in Accounting from Daffodil
International University. He has five year experiences with ZinZian Restaurant as an
accountant and office administrator, where he applied a new system in their accounting
department. He was in charge of the entire financial operation as well as initiating
administrative policies and procedures. In 2002, he joined in that restaurant and was working
as an expertise with this restaurant includes preparation of financial statements and tax return
as well as financial planning for the restaurant.

4 Market research and analysis

4.1 Customers
We have spotted out our different potential customers. As we know that consumer base of our
company is large and assorted. Here are some potential groups illustrated below-

4.1.1 Food customers

Our core business is to satisfy different class of people who comes to our organization to
have a meal. As we have mentioned earlier our organization is not only based on serving fast
foods to the targeted customers but we are also going to serve different traditional meal.
Basically meals co-ordinate with Mughal cuisine, like Tehari , Pulao, Kacchi Biriyani etc.
We are also going to serve different continental cuisines.

We planned to put restaurant facilities because, as we surveyed and researched about 55%
people in Old-Dhaka area are interested in having Fast foods and rest are stick with Asian
continental cuisines.

4.1.2 Catering supplies customers

Ahar Fast Food and Restaurant assures you that, if you want us to do catering services you
need to do one thing that is Relax! We are committed to serve the best food you could have
ever had. Our catering team has been divided into three parts, Mughal; Continental and Fast
food. The parts have different price range on specialty of food services. Different events have
different varieties of foods. Different wedding parties or reception customers and marriage
day customers order Mughal Cuisines, DJ party hosts order Fast foods and Birthday parties
or other ceremonial parties like colleague parties order continental foods.

4.1.3 Event Arrangement Customers

In different corporations, many yearly or quarterly events are held and as we have surveyed
there is no event management group or individuals are recruited in there. So the executives
and other officials need to bother for organizing these parties or events. This, of course
hampers their work and their free hours. So Ahar is trying to make things easier for not only
corporations but also for the individuals who put himself in great dilemma in organizing
events. We organize events and parties in both our restaurant and outside of our restaurant.
Our expert event managers can handle a party as per your requirement. We are efficiently
able to handle any theme. We also provide consultancy services that enable you to know the
expenses of decoration, catering services and every INS and out regarding the event. Old-
 Dhaka is famous for having a glitzy atmosphere, where people generally organize events
much more than people of New-Dhaka does. So a variety of events can be a “plus point” to
our business. For example, they arrange baby shower ceremony what is quite unfamiliar to
New-Dhaka inhabitants. But we assure we can give you the service, the way you want it.

4.2 Market Size

Our targeted market area the entire Old-Dhaka is a big area. More than 0.3 million people live
there. And we are assuming (as far our research goes) more than 30,000 parties are organized
each year. This market is anticipated to increase 15% in every two year. Of this market, two-
fourth is estimated to be our regular food customers and rest is considered our event and
catering customers.

4.3 Competition

Probably, there is no potential contender of us. Because as we have told earlier no one in our
targeted area delivers as conjunct services as we provide. But our expert research team has
indicated some rivals what can possibly become a threat to our organization.

We are illustrating them below-

• Khaddo Catering Services

• Otithi Event Managers

• Panta Restaurants

• Sojja Decorations

This data has been adopted from “BD Business”, a monthly magazine which specially
highlights the ongoing entrepreneurship in Bangladesh.

We can render collective services what these organizations give respectively. But, collecting
our competitor’s strengths is not as easy as it looks. But, our research showed that Otithi Event
Managers can be our biggest rival in comparison with others. They are ahead of us in two
respects. One is, the owners and the entire management team are hailing from Old-Dhaka
itself. They know the attitudes and attribute of Old-Dhaka inhabitants much more than what
we have achieved through our survey. Another advantage is, they have advertised their
services in the entire Old-Dhaka including the remote corners of a road.

But, our expert management team has found 2 basic weak points of the organization. Since,
they purchase foods from other catering services, they generally charge catering services a
little more than what we would offer our customers. They are charging at least 25-30tk. more
than us in per serving for every cuisine. And this can be the turning point, for our Event
Management Services. Another weak point, can be spotted in our all competitors is Old-Dhaka
oriented advertisements. They don’t display any of their advertisements on New-Dhaka area.
We have come to know from our research that, Old-Dhaka inhabitants frequently go to New-
Dhaka for various reasons. We will make sure, that our target market sees our ads not only in
Old but also in New-Dhaka. For this, we will advertise for our company in different electronic
Medias. We will publish advertisements in different periodicals, what generally our target
market reads.

We have also found that all the organizations have one similar problem that is their quick
decision problem. The companies are all partnership firms and every member has the right to
express their thoughts. And this hampers some valuable decision making time. We will
certainly not face this type of consequences since our organization is sole proprietorship
organization.

Our prime goal is going to be customer satisfaction. This will not only make us prominently
visible in the market, and create goodwill that, “we never compromise with quality” as our
motto is referred. Our discount services will in to play to make sure a large; strong and loyal
customer base within some months.

Ahar Fast food and Restaurant is adroit in managing every aspect of our business. We can
deliver satisfaction to our customers, in every sector we chose. For example- if you want to
organize a party, we can suggest you different themes, food items, decorations and other
additional services. And we can put money on this, that our arrangement will make the event
perfect and will be memorable to your guests. Our innovative and pioneer business plans can
put a social impact in the entire Old-Dhaka.

Many Old-Dhaka inhabitants have come to us, praised and congratulated us for establishing a
Fast food chain in the entire Old-Dhaka what they had been waiting for a long time.

Impressed with our promised services, an Old-Dhaka based organization has signed a 30 plus
party contract with Ahar Fast food and Restaurant.

Some people overwhelmed with our wide range of cuisines, have ordered to have our catering
services in their parties, which are generally birthday or wedding anniversary parties.

4.4 Ongoing Market Evaluation

We have seen many companies in the past what were established with grandeur but could not
continue to have a consistent success in the business rather; they faced failure in different
aspects. The main reason of their failure is considered to be the stoppage of market evaluation.
So, to weigh up the market we will email different questionnaires to previous customers using
our website. This will help us in a long run to estimate the market and the taste of our target
markets. We will also send mails to each and every target markets home and will also wish to
know their choice in person.

We will send questionnaires to different business organizations and our business clients.

Questionnaires may be like this-

4.4.1 Business Survey

• How many events does your organization hold every year?

• Could you please tell us the services you need to organize a “complete party”?

• Does your organization have a full time party consultant?

• If not, then could you please tell us who manages your events?

• If you are about to appoint a professional event manager, what would your
expectations be?

• Have your organization ever employed any professional party manager? (If the
answers is no, please skip to question 11)

• If your answer is yes, then are you satisfied with the services they provided?

• Tell us the flaws, if you are not satisfied with their services?
 • What was the format of charging of the services?

• Was the charges just?

• What are the services that push you to engage an event manager?

• What type of additional services do you require in your event?

4.4.2 Client Survey

• Are you satisfied with our food services?

• In your opinion, what is our best feature?

• What services should be included by us?

• Assume that you are in our management team, then what changes you would
make?

• Are we reasonable in pricing?

• Please add any additional comments that will put a summary in our survey.

5 Marketing Plan
5.1 Overall Market Strategy

The general marketing philosophy and strategy of Ahar Fast Food & Restaurant
are to provide good service & fulfill customers demand. Our target
market is local area people who are live in old Dhaka. Sometimes, we offer discount.

For attracting people we offer various type of traditional food because we know that the people
of old Dhaka is found of eating any delicious food. We celebrate our traditional culture such as
PAHELA BAISHAK, POHELA FALGUN, and GURI UTHSHOB etc. In the time of
RAMADAN we provide delicious food package for IFTARE.

Our total services concept will be emphasized in the generation of sales. Our flexible pricing,
good service & well behave is the most attractive to the consumers.

Although, we are starting our restaurant in Old-Dhaka bases, but after the maturity level of
business we have plan to broaden our business through out the Dhaka City.
 5.2 Pricing

Pricing requires crucial decision making because price is very visible to the consumer and is
very closely tied to an organization’s profit. The pricing policy in our restaurant will be very
flexible. We will establish standard rate for each item. Our price starts at Tk. 50 & end in
Tk.500 in term of food bases. But in occasion season it’ll be change. We try to our level best
for provide good price menu.

We project that our service will be accepted by consumers because we are very price
competitive and provide a mix of unique service that no single competitor offer.

5.3 Sales Tactics

During first year, we will especially promote consumers about our variety of food items. In
addition, we will also encourage our customers to test new dishes or items. Beside that, we
will specially focus on developing our services and products. With our knowledge and
experience, we will be also capable of managing the business aspects of Ahar.

5.4 Adverting and Promotion

Our advertising cost will be a significant part of our organization’s expenses and therefore
must be monitored carefully. We feel that employment of an advertising agency will lead to
the most efficient use of these funds. The agency will be responsible for establishing an
advertising program, layout of business card, brochures, and design of the restaurant logo. In
some occasion time, we offer discount. For this reason customer know about our item &
service.

Newspapers will be the main advertising media. The use of community and ethnic newspapers
will allow us to target our advertising money. Initial phase advertising costs are estimated to
be approximately Tk. 1 lacs for the beginning fiscal year.

6 Financial Data

6.1 Profit and Loss Forecasts

6.1.1 Assumptions

The total capital of this organization is 2 crores. The diversion of the total capital:
 1. Cash Capital: 75 lacs

2. Loans from bank: 25 lacs

3. Long term assets: 1 crores

For organizing an event we require a deposit equal to 50 percent of the balance. After the
completion of the event we receive the rest of the money.

6.1.2 Risks and Sensibility

We have given a great attention into seasonal trends like “Pahela Baishakh”, “Pahela
Falgun”, “Nobanno” etc. But we are also forecasting on different non-seasonal festivals and
western trends. In our country there are some non-traditional festivals like “Baby Shower”,
“Baby names ceremony”. We are putting interest on these festivals too. We are also
emphasizing on some unpopular western festivals like “Grandfather’s Day”, which is not
well introduced in our country.

6.2 Pro Forms Cash Flow Analysis

6.2.1 Assumptions

The amount for the service given by this organization will be received 50percent before the
arrangement and the rest will be received after the event. The payments to our members will
be on a monthly basis process. We will provide a bonus to our employees during different
religious festivals.

Rent, insurance and miscellaneous expenses will be stable for 3 years. We will bring changes
here after this period. We will improve our advertising sector and will make it to the
customers so that we can attract potential consumer. We will also hire some consultants for
improving our stated sectors.

6.2.2 Cash Flow Sensibility

Beside owner’s investment in the organization we have to borrow cash from government
bank. We are relying on government bank because it is secure. The depreciation for our
equipment is 10years. Repair to facilities are included in our lease agreement and annual
cost-of-living increases have been included in our pro forms.
 6.3 Pro Forma Balance Sheets

Owner’s investment and borrowing loan from the bank, Ahar, is ready for the business. While
starting the business we need cash for advertisement and promotional materials, as well as for
security purpose. Until year 5, when the organization needs to be expanded and modified, we
see no need for applying further loans. (Attachment typically would be included.)

6.4 Breakeven Chart

Attachment (typically included) explains that, our overall services will reach breakeven at the
middle of the year. If our sales project fall back during the first eight months and we miss to
reach our breakeven point, Ahar will be still in the platform. It will be our major priority then
to keep advertising of our organization and services until we are well established in the field.

6.5 Cost Control

Ahar Fast Food & Restaurant will organize a board to record cash receipts and expenditures on
a daily basis. This information will be submitted at the end of each month for preparing
financial statements. These statements will be reviewed and initiatives will be taken to adjust
the budget. If the budget is access then we will reduce it. It will not put an impact on the
organization because our budget will be still reliable on that time.

We will also hire some consultants for improving our stated sectors. By the end of first year we
will employ a full time secretary to assist our management team. Capital expenditure includes
the long term assets, with equipments, Land, machinery, furniture and Intangible assets
consists of trademark and management knowledge. The manager will be highly experienced
person who will reduce person effectively.
 Reference Lists
Ivancevich, S. (2010). Business for the 21st Century. IRWIN, Homewood, Boston.