entrepreneurship project on fast food restaurant

3ArS Fast Food “healTh Iz WeAlTh” Circular road, tanda chowk, In front of Jadah color lab Jalal pur jattan (Gujrat) Ph# 053-3123466 Mob# 0322-9876543 www.ars.com Email: [email protected]

Co-owners:  Anum Rafique  Anum Tariq  Syeda Anum Nawazish  Syeda Um-e-Rubab  Sehrish Ashraf

Description of business: Our Fast food business is a new addition in the fast food industry with high aims to facilitate people with healthy foods, which have marvelous health full ingredients. Our promise is to give your body healthful products. Due to increasing the needs, wants and demand of foreign cuisine we decided to launched our fast food center on a small scale. It’s a partnership based business. And we provided self purchasing services and free home delivery with in Jalal pur jattan. We also make our contract with schools and collages that we deliver our products at the time of recess (break) in schools and collages. We also launched a play ground area for kids because if families come then their kids don’t get bore, the basic purpose of play ground are is to entertain and here opportunity is there are no play ground, park in jalal pur jattan.

Business plan

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Vision statement “Our customer’s health is our profit”

Mission statement “Add up nutrition’s and fun in people’s life”

Feasibility Report: Indenting business started approximately with the finance of rupees  Building rent cost 800,000 Rs/ Building decoration 150000 Rs/ Computer P4 17500 Rs/ Printer 9000 Rs/ Tele Phone Set 700 Rs/ Furniture office 13000 Rs/ Furniture of sitting area 27000 Rs/ Stationery 5000 Rs/ Eclectic Fan 25000 Rs/ Lights 3,000 Rs/ Exhaust 5000 Rs/ A/C 50000 Rs/ Outdoor playing equipments 50,000 Rs/ Production house equipments 75,000 Rs/-

Business plan

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Executive summary: The project is about a new business venture. It covers the core concepts that are involved in the development and implementation of this new company. Taking the initiative and pulling it towards something unique and different. This project guides about the company attributes, boosting its early phases to penetrate through target market identification and segmenting it to different locations, planning for market positioning, effective pricing strategy, how to promote it to clients through different mediums and sources and most importantly, the environmental factors that are associated with the early stages of business development and post variable factors that are major challenges to the business.

Hierarchy chart CEO

Finance manager

Marketing manager

HR manager

Operational manager

Production plant manager Chef Cooking experts

Other staff: • • •

Receptionist Security Guards Sweepers

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•

Service employees

Objectives: Our six objectives are summarized below:  Understand our customer, competitors and industry.  Provide the best product and services  Continue to grow our business in the selected fields of interest.  Balance our business goals with our financial objectives.  Make the transaction from a single point of Sale Company to a

distributed

sales company.  Refine the company values and culture by hiring the best people.

Industry Analysis Analysis of competitor: It’s a fundamental of business where you have competition along your business. If you want to overcome your competitor you must have knowledge of that business as much you have your own. Similarly 3ArS Fast Food is facing considerable competitors in Gujrat area like;  KFC  MacDonald’s  UFC  Sawad  AFC  Domino  Pizza huts…etc But here our opportunity is, no one have any branch in Jalal pur Jattan.

Competitive Advantage strategies: Business plan

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Competitive advantage strategies are now playing a vital role in world wide businesses. These are very useful to contain or maintain a competitive edge. 3ArS Fast Food will follow differentiation strategy, diversification strategy, marketing advantage strategy and geographic expansion strategy.  Differentiation strategy: We are providing high quality food because our mission is “Our customer health is our profit”

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Marketing advantage strategy: 3ArS Fast Food is providing some services for the first time and has got first mover advantage.

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Diversification strategy: It implies that 3ArS Fast Food will expand by new service and high quality food with the passage of intervals.

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Geographic expansion strategy: Geographic expansion means to add new places and new disciplines. We start our business in Jalal Pur Jattan and next target is Gujrat, Kharian, and all over the Pakistan after 3 years of establishment of our business. Because of, in these area life style are changed day by day and the reason is that, after establishing of university of Gujrat, education level will also increase, it would change the people thinking and in these areas mostly people are in foreign countries.

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Description of venture Products:  Burger  Chicken piece  Hot wings  Nuggets  French fries  Soups  Drinks, Coffee & tea  Ice cream, deserts, salad  Rice, kebab, rolls  pizzas

Size of business: It’s a small scale business based on partnership between five people with mutually agreement. Business share: CEO (Anum Rafique) 25% share of whole business. Remaining four has equal shares;  Financial manager (Syeda Um-e-Rubab)

18.5% share

 Marketing Manager (Sehrish Ashraf)

18.75% share

 Operation Manager (Anum Tariq)

18.75% share

 Human resource manager (Syed Anum Nawazish) 18.75% share. Profit and loss Profit and loss will be distributed on the basis of their share percentage

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Office equipment:  Computer  Telephone set  Office furniture  Stationery  Electric fan  Lights  Exhaust  AC  Printer

Background of entrepreneurs: Our business is based on partnership and every partner is the student of business administration in university of Gujrat, it’s our project to develop a business plan as an entrepreneur. We are in (BBA) 5th semester and before this, we completed different projects in different subjects like marketing, cost accounting, business ethics and human resource management as well. In marketing we developed a marketing plan in which our product is “date shake”, in business ethics we developed a business plan on Nestle Company and tell them their ethical issues and their solutions, and now in this semester we complete our project on activities and functions of human resource department in PepsiCo.

Business plan

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Production plan Physical plant  Area: The piece of land which is required to organize the whole set up is about 4500 sq feet (1 canal) for our restaurant.

 Color scheme: “Every color has meanings” Our presenting color is pixel organic, because it attractive and show freshness. And it is sophisticated.

Machinery and equipment Equipments & machinery used in production house  Oven  Potato French fries machine  Dough mixture  Food processor  Frying machine  Microwave  French fry cutter  Food cutter  Sauces  Cutlery set  utensil

Names of suppliers of raw material Business plan

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 Javed Iqbal  Adil Akbar (paars bakery)  Waqas Khalid (whole seller)  Nadeem Butt

Marketing plan Objective of marketing manager:

According to the marketing manager of 3ArS Fast Food that marketing department has two objectives;  The first department of 3ArS Fast Food is to create the awareness and provide the following information to the higher authorities of 3ArS Fast Food.  This department shows the marketing position of the organization.  This department shows the market share of 3ArS Fast Food.  This department gives the suggestion to the higher authorities for the future improvement.  This department provides the information about their competitors to the higher authorities of 3ArS Fast Food.  The second basic objective of Marketing Department is that it meets the budget in the required time span. The marketing department of 3ArS Fast Food is to promote its products and make the future plan to live in the budget. Business plan

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Every business needs the information’s about market before going to start. These information’s will help in achieving the goals and setting targets. There are different contents for the assessment of any market, which are given under here:

Market Segmentation: 3ArS Fast Food will be marketed to people on the basis of demographic, psychographic and geographic characteristics.

 Behavioral characteristics: In behavioral aspect they segmented the market on the basis of quality, taste and price. Following are the different possible segments in this regard.





Taste conscious

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Quality conscious

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Class conscious

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Combination of price and quality

Demographic characteristics:

Demographic characteristics include age, sex, occupation, education, income and race. We segmented our market on following bases.  Gender: 3ArS Fast Food is for each gender both male and female.  Income: Everyone can use the 3ArS Fast Food service upper and middle class.  Age: age limitation for using this product above 15  Occupation: By profession also everyone can use this product means businessman student workers and other peoples.

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 Education: It has no need more education that why the person who know something can easily enjoy with this product.  Family life cycle: 3ArS Fast Food is suitable in every stage of life like single married couple and also those who have children can use this product.  Lifestyle: This product is used in every level of social class like upper, middle class.  Attitude: When the customers once buy this product after that they can use the product continuously.  Purchasing decision: Often 3ArS Fast Food changes the purchasing decision of customers because of its good attributes.

Target Market: After evaluation of various segments, 3ArS Fast Food has decided to target the market of Urban, Sub-urban and rural area as well but everyone can use this product means businessman student workers and other peoples.

Market positioning: As we mentioned our location before that we shall introduce 3ArS Fast Food in Jalal Pur Jattan (tanda chowk). It is supposed to be best areas of Jalal pur Jattan. This location will satisfy our target market demands. These are one of the educational concerning accommodation area as well as on the back of 3ArS Fast Food there are residential area, in front of our restaurant there is commercial area as well which are exactly to our demands. All the mentioned areas are the good markets for 3ArS Fast Food.

Marketing Mix Marketing mix is also known as 4 P's. Including product, price, place, promotion. These 4 points have much importance in the house of marketing.

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The whole monopoly revolves around these 4 P's. But when we talk about the fast food business, there must be focus on these 4p’s

 price: Prices of Chicken PCs. and all the other products of 3ArS Fast Food are set by the Head Office by adopting the proper method. According to  Marketing Manager Price of any product is equal to the cost plus desirable profit.  Main concern is to sell in volume and maintain it on long term basis. They are charging a price which they think fair to customers.  The policy of 3ArS Fast Food is that they do not set the prices on the basis of competitors. The aim of 3ArS Fast Food is to satisfy the customers in low prices. In economics we can say that when the prices are constant, the demand of product increase, volume of sale is increase, and revenue is also increase, as a result of this circle the profit of the organization is increase but the prices remains constant. So selling on low prices has a valid justification.

 Place: Our targeted market is Jalal pur jattan Market place And we are looking for more in future like Market space

 Products:  Burger  Chicken piece  Hot wings  Nuggets  French fries  Soups Business plan

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 Drinks, Coffee & tea  Ice cream, deserts, salad  Rice, kebab, rolls  Pizza’s

 Promotion:  Public Relations To implement and maintain total quality management our company will have a customer service department, which will note each and every request of the customers and will note down complaints by the customers.

Advertisement Product will be announced in all print and electronic media like ;  Newspaper  Ads through Cable  Internet  Face book  Twitter  We will conduct seminar in UOG

Promotion Budget In phase 1 of three months we are spending 7,000 for the promotional purposes. While In 2nd phase of three months we will increase the amount from 7,000 to 10,000. In 3rd phase and last phase of this year we will spend more then 10,000

Operational pan Business plan

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Administration of any organization is working under a proper setup. It performs all tasks and achieving their goals by following and fulfilling the requirements of an organization. Every organization has a hierarchy flow in which every employ is performing their job by focusing the aim of their organization. The hierarchy chart of 3ArS Fast Food is given under here; CEO

Finance manager

Marketing manager

HR manager

Operational manager

Other staff: • • •

Security Guards Sweepers Service employees

CEO (Chief Executive Officer): CEO is one who has to make decision at high level of management the whole organization is under the CEO. The CEO of 3ArS Fast Food has to perform several tasks, providing finance, organize international competition, look after branch manager and marketing management, increasing relations and make better strategies. All the tasks which are performed beyond the line of visibility including all new technological process are controlled by CEO.

Marketing Manager: Marketing is a major aspect of every business, so marketing department plays an important role in all organization. 3ArS Fast Food marketing manager has to perform such task which plays an important role in promoting organization. He has to perform operations like advertisements, campaigns and look after the Web site of 3ArS Fast Food. Business plan

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Finance department: Finance department is one of the most important departments where the CEO can collect the following reports for timely decisions like  Budgeting  Cash flow  Profit and loss statement  Expense sheet  Project plan sheet  Financial analysis  Balance sheet etc. The report will be submitted to CEO to finance manager to control financial crisis

Operational department: It is very important department in the 3ArS Fast Food. The in charge of the operation department is operation manager. This operation manager is responsible for the following operations and functions.  Cooking  Cleanliness  Administration of restaurant.  Complaint handling of the customers  Daily order to procurement Department  Day to day demand forecasting  Daily lectures to crew people  Trained the employees

HRM department:

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According to the marketing manager of 3ArS Fast Food that HRM Department play a very important role in the organization. It is usually says that if the staff and worker are satisfied and happy with their organization environment than no force can hurdle to get achievements but it only occurs if the people have some connections with top line managers, therefore CEO can get an interface through HR department. HR department will take step by step approach like through  Appraisal letters  Evaluation reports  360° feedback report and with other reports CEO will get his target and goals by teamwork.

Organizational plan In 3ArS Fast Food, owner and manager are same. It will be established as a partnership. There will be five partners: Anum Rafique, Anum Tariq, Syeda Anum Nawazish, Syeda Um-e-Rubab, Sehrish Ashraf. In which four partners have equal ownership in the business but one of them have 25% share in their business and she is CEO of the 3ArS Fast Food. Background and roles of each partner are described in the following;

Management team background: Our business is based on partnership and every partner is the student of business administration in university of Gujrat, it’s our project to develop a business plan as an entrepreneur. We are in (BBA) 5th semester and before this, we completed different projects in different subjects Business plan

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like marketing, cost accounting, business ethics and human resource management as well. In marketing we developed a marketing plan in which our product is “date shake”, in business ethics we developed a business plan on Nestle Company and tell them their ethical issues and their solutions, and now in this semester we complete our project on activities and functions of human resource department in PepsiCo.

Duties and responsibilities of the partners: Responsibilities of marketing manager: Marketing department of 3ArS Fast Food is play a very important role in the organization.  The first and basic function of this department is to promote its products in the market in different ways. According to the marketing manager of 3ArS Fast Food we advertise our products through print media, banners, etc.  This department creates the awareness among the people about the packages, which are given on the special events like Eid, Basant, etc.  Marketing Manager of 3ArS Fast Food says that it is the world of competition, therefore to survive in the market we work for the future. So the third function of marketing department of 3ArS Fast Food is to make plans to achieve the objective of organization in future.  Marketing department of 3ArS Fast Food also analyses to increase or decrease the sale.  When the sale of 3ArS Fast Food is going to decrease, the marketing department of 3ArS Fast Food conducts a proper marketing research to find out the problems, basic reason behind the problem and try to solve it and to save the organization from this type of faults in future.

Responsibilities of finance manager: This Department is also responsible for maintaining fixed assets listening and arranging insurance cover on the assets of the business the tax related issues of the Business and all Business plan

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the transactions processing’s, e.g. recording of sales and payments etc, are also handle by the Finance Department. Finally the Finance Department liaises with internal and external auditors, product margins, variable cost and fixed assets within the business as well.

Responsibilities of operation manager: This operation manager is responsible for the following operations and functions.  Cooking  Cleanliness  Administration of restaurant.  Complaint handling of the customers  Daily order to procurement Department  Day to day demand forecasting  Daily lectures to crew people  Trained the employees

Responsibilities of HR manager: The HRM Department performs the following functions: 

Reviewing application form

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Interviewing applicants

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Inducting new employees

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Appraising employees performance

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Make a decision about the employees training

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Provide a career advice to subordinates

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Financial plan The total amount to established that business is Rs.1100000 while in that amount Rs. 400000 is the reserve fund, which is the liability of the business. Which will be returned. Here we have prepared our forecasting of our business for our business. First we have shown our expenses and then we tried to show how our projected revenue will generate

Expenditures

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One time expense

Rs/-

Building Contract cost for five years costs:

500000

Business registration Fee:

45000

Production house equipments

75000

Furniture and Decorations

190000

Playing area equipments

50000

Other setup charges

110200

Value added tax VAT

705120

total

1675320

Depreciation costs for every year within a five year period: Year 1st year Depreciations 1081194

Business plan

2nd year 864955

3rd year 691964

4th year 553572

5th year 2214285

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12 months expenditure throughout the year expense

1st year

2nd year

3rd year

4th year

5th year

Rental

144000

144000

144000

144000

144000

Administrative

100000

119900

129000

150000

175000

Technology (machines)

300000

326900

387920

412500

456300

Salaries

26000

33000

39000

46000

50000

Depreciations

1081194

864955

691964

553572

2214285

Others

556000

568500

691964

6635727

597600

Total

2207194

2057255

2083848

1969799

3637185

Investments & Revenues Our Investors total contributed: Anum Rafique Syeda Anum Nawazish Anum Tariq Syeda Um-e-Rubab Sehrish Ashraf Total

285200 197040 197040 197040 197040 1073360 Rs/-

Revenue Calculation

Projected revenue Expense Balance

1st year 22080850

2nd year 3168930

3rd year 5712534

4th year 8130737

5th year 8361250

2207194 8906

2057255 1111675

2083848 3628686

1969799 6160938

3637185 4724065

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From above we can see that we will enjoy the most incomings in the 4th year after launch. And this is a positive sigh that we will have been reached at the break even point within 1st year. The total amount to established that business is Rs. 1073360 while in that amount Rs. 388160

is the reserve fund, which is the liability of the business. Which will be returned. 3ArS Fast Food BALANCE SHEET FOR THE YEAR ENDED 31 DEC.2011 ASSETS FIX ASSETS BUILDING COMPUTER PRINTER TELEPHONE SET FURNITURE STATIONARY FAN LIGHT EXHAUST FAN A.C REGISTRATION TOTAL FIXED ASSETS CURRENT ASSETS CASH A/R TOTAL ASSETS LIABILITIES + O .E OWNER EQUITY LIABILITIES TOTAL ASSETS

Business plan

500000 17,500 9,000 700 40,000 5,000 20000 3000 5000 50,000 35,000 685200 388160 0 1073360

685200 388160 1073360

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Exist strategy If some of misconducts or any breakup among our partnership comes may be we can dismiss our business. Though there is a low possibility but if one of the following scenarios happens we will close our business If any bankruptcy happens to us  If law enforces us to do so  If our partnership breaks up  If we become unable to run business

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Swot analysis Strength  Friendly environment  Professionally trainers  Co facility for specific timings  Our trained chef (training from Greeks)  High quality of products

Weakness  Less space for future project  Lack of Experience as a entrepreneur  Comparatively equivalent pricing

Opportunity  Attractive Future Projects  no direct competitor  demand of the fast food in this area gradually increase

Threats  there will competitor in future  Contingencies

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 Legal and Security Issues

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