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1. Fast food restaurant
Golden Apple
Feasibility Report

3. Executive Summary
• I have prepared feasibility on fast food restaurant Golden Apple on the basis of
• The fast food restaurant is proposed to be established at a location that has a continuous
stream of traffic, convenient parking, and is in proximity to other businesses, preferably near
densely populated middle income areas or apartments. Major cities like Karachi, Hyderabad,
Sukkur, Larkana, Multan, Lahore, Gujranwala, Faisalabad, Sialkot, Gujrat, Rawalpindi,
Peshawar, Hub and Quetta etc. are suitable to house the project.
In addition to disclaimer, project cost can vary depending on a number of factors including
monthly rental payments, cost of assets (kitchen, furniture and crockery) and hence will also
reflects on menu prices.
Proposed Product Mix include: Broast, Burgers, Sandwiches, Chinese, French Fries, Cole Slaw
and Soft drinks.
Restaurant capacity is for 72 persons and initial capacity utilization is 42 %.
Total Cost Estimates is Rs.6.1 million with fixed investment Rs.4.6 million and working capital
Rs.1.5 million.
Given the cost assumptions IRR and payback are 39 % and 2.55 years respectively
The most critical considerations or factors for success of the project are:
Choosing the right location for the fast food outlet
Creating the right menu and menu pricing
Hiring of experienced cooks and staff
Knowing the competition

4. Good Fast Food Restaurant
• Measuring good service is subjective, but generally what is expected from a server when
reviewing restaurants.
• The server should greet diners within 3 minutes of their being seated.
• The server should neat and clean.
• The server should not be too chatty or familiar.
• The server should know the menu and be able to answer questions.
• The server should bring drinks within 3 minutes of being ordered.
• The appetizer (if any) should be served within 5 minutes of ordering.
• Entrees should be served within 20 minutes of ordering.
• Water or beverage glasses should be refilled regularly.
• The server should silently survey the table and assess our needs without constantly
interrupting to ask, "Do you need anything else?"
• The bill should be brought promptly when requested, and change should be returned
promptly.
• Plates should be removed at the proper time, and the table should be cleared of bread
and butter before dessert is served.

5. Legal Requirement
• The Pakistan Hotels and Restaurant Acts Act 1976 is the law which requires the owners of all
types of restaurants to register and obtain a license with the government. The restaurant
owner is required to apply to the controller for registration of the restaurant.
Application for registration and determination of fair rates shall be made to the 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 the restaurant.
For registration of a restaurant, the owner of the restaurant is required to conform to the
standard of health, hygiene and comfort which standards have been set out in Schedule II of
the act.
On receipt of application, the controller will carry out inspection of the aforementioned
premises and once satisfied will initiate the registration process. Once registered the owner of
the restaurant will apply to the controller for license as per the Act which needs to be renewed
on a yearly basis for the prescribed fee.

6. Project Investment
DESCRIPTION
AMOUNT
(Rs.)
Capital Cost
Renovation 1,500,000
Machinery & Equipment 1,312,500
Furniture & Fixtures 970,000
Office Equipment 135,000
Pre-operating Costs 665,000
Total Capital Cost 4,582,500
Working Capital
Equipment Spare Part
Inventory
43,546
Raw Material Inventory 174,182
Upfront Building Rent 1,260,000
Cash 50,000
Total Working Capital 1,527,728
TOTAL PROJECT
COST
6,110,228

7. Proposed Product Mix
Broast Price Chinese Price
Chicken Broast (Qtr.) 200
Hot & Sour Soup (2
Servings)
300
Chicken Broast (Half) 400
Hot & Sour Soup (4
Servings)
600
Chicken Broast (Full) 800
Chicken Corn Soup (2
Servings)
250
Chicken Corn Soup (4
Servings)
500
Burgers Price Plain Rice 100
Chicken Burger 180 Chicken Fried Rice 200
Chicken Cheese Burger 200 Vegetable Fried Rice 120
Beef Burger 180 Egg Fried Rice 150
Beef Cheese Burger 200 Beef Fried Rice 200
Zinger Burger 220 Beef Chilli (w/o rice) 300
Chicken Chilli (w/o rice) 300
Sandwiches Price Price
Chicken Sandwich 200 French Fries (per plate) 100
Egg Sandwich 150 Cole Slaw 100
Beef Sandwich 200 Soft Drinks (Large) 100
Club Sandwich 250 Soft Drinks (Regular) 30

8. Proposed Location and Target Market
• The fast food restaurant is proposed to be
established at a location that has a continuous
stream of traffic, convenient parking, and is in
proximity to other businesses, preferably near
densely populated middle income areas or flat
complexes. Major cities like Karachi, Hyderabad,
Sukkur, Larkana, Multan, Lahore, Gujranwala,
Faisalabad, Sialkot, Gujrat, Rawalpindi,
Peshawar, Hub and Quetta etc. are suitable to
house the project.

9. Machinery and Equipment
ITEM DETAILS QUANTITY
UNIT PRICE
(RS.)
TOTAL
PRICE(RS)
Freezers (12 cf) 03 45,000 135,000
New Broast Machine (15
Pound
Capacity)*
01 200,000 200,000
Deep Well Frier (Single
Valve With 2
Baskets)
02 80,000 160,000
Hot Plate for Burgers,
Kebab,
Sandwiches
(30” x 22”)
01 50,000 50,000
Bin Marry Soup
Container (2 Valve
With Steel Cabinet)
01 120,000 120,000
Potato Cutter (8mm) 01 5,000 5,000

10. Pillar (4.5 Kg Potato
Peeling Capacity)
01 30,000 30,000
Microwave 01 15,000 15,000
Working Tables 02 25,000 50,000
Keg Racks & Shelves 02 20,000 40,000
Crockery / Cutlery 108 1,000 150,000
Generator 15 KVA 01 322,500 322,500
Water Geyser 01 35,000 35,000
Total 1,312,500

11. Furniture Fixture
ITEM DETAILS QUANTITY UNIT PRICE (RS.) TOTAL PRICE (RS.)
Dining Table – Square
plus 04 chairs.
18 36,000 648,000
Lights 50 800 40,000
The restaurant is expected to entertain a minimum of 288 customers at 04 table rotation in a
day, which requires a good seating layout to avoid any confusion and problems during rush
hours. The following table gives the details of the dining tables and chairs that would serve
approximately 72 customers (maximum capacity) at a time:

12. Counter Chairs 02 6,000 12,000
Office Table and Chair 01 25,000 25,000
Waiting Area for Take
Away
Customers
05 4,000 20,000
Air Conditioner Split
Units (02 Ton)
05 45,000 225,000
Total 970,000

13. Office Equipment
ITEM DETAILS QUANTITY UNIT PRICE (RS.) TOTAL PRICE (RS.)
Laptop 01 45,000 45,000
Printer 01 25,000 25,000
Telephones 02 2,500 5,000
Cash Register 01 60,000 60,000
Total 135,000

14. Land and Building Requirement
• The land requirement is around 1,500 sq.ft. in
densely populated area where all utilities and
facilities are properly available. It is
recommended that the fast food outlet be
opened on the
ground floor of flats or in the shopping mall
where the consumer traffic will be maximum.

15. Dedicated area requirement
DETAILS
%
(SQ. FEET)
SIZE
(SQ. FEET)
Dining 60 % 900
Waiting 5 % 80
Kitchen & Preparation 30 % 450
Stores 5% 70

16. Human Resource Requirement
DESIGNATION / TYPE NUMBER
MONTHLY SALARY
(RS.)
TOTAL MONTHLY
SALARY
(RS.)
Manager* 01 25,000 25,000
Chef / Kitchen
Supervisor
01 25,000 25,000
Supervisor (including
reliever)
01 15,000 15,000
Cook 03 15,000 45,000
Helper 01 13,000 13,000
Dishwasher 01 13,000 13,000
Waiters / Servers 06 13,000 78,000
Cleaner 01 13,000 13,000
Guard 01 13,000 13,000
Total 16 240,000

17. Fixed assets

18. Balance Sheet

19. Income Statement