Mr.Chefa thought for food

Business Concept

Observing the market potential and profitability in the food business.

Changing lifestyle patterns of the people.

Easy entry in the industry.

Vision Statement

“To put a smile on faces of people and to be their first choice on all occasions by always providing 100% customer

satisfaction through quality, recognition and innovation.”

Mission Statement

“We not only listen and respond to the voice of our customer but are obsessed to

go an extra mile to make our customer happy.”

Organizational Plan

Form of OwnershipLegal RequirementsPrincipal ShareholdersRoles & ResponsibilitiesLine of Authority

Organizational Chart

RGM

Cashier Shift Manager/Supervisor

In charge Accounts

Kitchen Supervisor Servers

Cook

Dishwasher

Cleaner

SWOT Analysis

Strengths:

Ideal location Best Quality Variety of food under one roof Competitive prices

Weaknesses: Limited financial resources

Opportunities:

Growing industry Rapid growth of target market Changing lifestyle pattern Rate of growth in consumer expenditures on food Demand for convenience, people want quick and

convenient meals

Threats: Presence of established competitors Unstable political situation

Operational Plan

Location & LayoutHiring the EmployeesManager / Owner Supervisors/Chefs /cooks

Marketing Plan Pakistan’s real GDP has grown at an average rate of 7.0

percent per annum during the last five years (2003-07) and over 7.5 percent in the last four year (2004-07)

Foreign investment has attained new heights and likely to

touch $ 6.5 billion mark this year.

The per capita income in dollar term has grown at an average rate of 13.0 percent per annum during the last five years.

Marketing Plan

Target MarketPopulation: 3.242 million (2006)Population growth rate: 3.29% per year

Productive age group : 15 to 64 yrs (67% of total population)

Estimated size of target market : 0.64 million

Market Forecasting

The Food Service Market is a growing industry in Pakistan relying heavily on the changing lifestyle patterns, population growth of the target age group.

The presence of multinational fast food chains like KFC & Pizza Hut have somewhat catered to the high income segment

The industry is growing at a rate of about 20-40% annually.

Competitor’s Market Share

21%

15%

25%10%

21%

8%

Pizza Hut

KFC

Shiraz

Balana

Chief Burger

Others

Objectives

To have a market share of about 2.5% , 5% and 10%

at the end of first three years respectively

Sales level of Rs. 7.5 million at end of first year

Sales are expected to increase 15% per year

Proposed Product Mix & Price:

Financial Plan

Sources of Funds The estimated project cost is about Rs. 2.5 million.

The debt/equity ratio will be 50:50.

Long-term financing for 5 years

This facility would be acquired at a rate of 15% (including 1% insurance premium) per annum with 60 monthly installments over a period of five years.

Application of Funds

Item Cost (Rs.)

Construction Cost 1,00,000

Dining & Office Furniture 450,000

Equipment & Machinery 600,000

Preliminary Expenses 50,000

Working Capital 500,000

Total 2,500,000

Key Indicators

Sales: 7.5 Million

CGS: 3 Million

Gross Profit: 4.5 Million

Gross Profit Margin: 60%

Financial Assumptions