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Fast food restuarent abhijeet karmakar

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Fast food restuarent abhijeet karmakar

  1. 1. Feasibility Report On Fast Food Restaurant Pr esen ted BY: - A BHIJ EET KA R M A KA R MT1 4 I N D 0 01 In d u strial En g in eer ing
  2. 2. 1.Introduction Fast food is food which is prepared and served quickly at outlets called fast-food restaurants. It is a multi-billion dollar industry which continues to grow rapidly in many countries. A fast-food restaurant is a restaurant characterized both by food which is supplied quickly after ordering, and by minimal service.
  3. 3. Purpose This project is developed to provide the entrepreneur with potential investment opportunity in setting up and operating a medium sized fast food restaurant offering a variety of food items to the general public The project is designed to provide relevant details (including technical) to facilitate the entrepreneur in making the decision by providing various technological as well as business alternatives.
  4. 4. Fast Food Industries The presence of multinational fast food chains like McDonalds, KFC, Pizza Express, Pizza Hut, Subway etc. have somewhat catered to the high income segment therefore developing a niche as upscale fast food restaurants. However much of the middle-income segment (which forms a major chunk of fast-food goers) prefers visiting local outlets that offer low cost fast food, hence more frequent visits.
  5. 5. 2.Raw material study • Chicken, Fish, egg • Vegetable-potato, Tomato, Onion, Ginger, carrot and many more • Cheese, Bread • Wheat, Rice • Milk • Butter • Oil • Other ingredients Approximately total cost of 150000 /- month Expected. (Including its preparation)
  6. 6. 3.Market Study India, currently ranked as 2nd in terms of total population, is characterized by a population growth rate of 1.59% (Indian Economic Survey 2013) Total population of India in recent survey is 1.252 Billion people .  With this, the per capita income has increased to GNI US$ 5300 while the productive age group (15 to 64) years is said to take the major chunk of population (67% of total population) by 2020. The 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 (fast food goers) hence the greater income contribution to the overall income generated is expected to be higher.
  7. 7. PopulationGrowth-AsperNationalCommissionof Population(NCI)andCensusIndia 1.06 1.08 1.1 1.12 1.14 1.16 1.18 1.2 1.22 1.24 1.26 1.28 2005 2006 2007 2008 2009 2010 2011 2012 2013 p o p u l a t i o n B i l l i o n s Series1
  8. 8. GDP (AsperUnionBudgetandEconomicSurvey) 0 200 400 600 800 1000 1200 1400 1600 1800 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 US$ Billions Series1
  9. 9. GNI growth rate (inUS$) 0 1000 2000 3000 4000 5000 6000 2005 2006 2007 2008 2009 2010 2011 2012 2013 G N I P E R C A P I T A Series1
  10. 10. Frequency Of Fast –Food ThisisthestudydonebyGULFnewsthisresultshowsthat 72%ofsurveygroupeatatafastfoodrestaurantonceaweek 44% 14% 8% 6% 28% Fast-food consumption rate Once twice More than thrice Every Day never
  11. 11. 4.Demand Study • There is no restaurant in this region around 4-5 KM. • Naya Raipur is going to be declared as a new capital of Chhattisgarh. • More traffic intensity • Large number of industrial employee staying near by places and they are likely to do their dinner at fast food places. • This region required new market for food and technology.
  12. 12. How To Start A Restaurant? • Work in a restaurant • Know your target market • Select a service style or food concept • Develop a business plan • Create “the menu” • Chose a location and layout • Getting the appropriate finding • Be familiar with safety regulation • Hiring employees • Advertise and market
  13. 13. 5.Location Study • Anticipated sales volume • Accessibility to potential customers • The rent-paying capacity of your business • Restrictive ordinances • Traffic density • Visibility • Customer parking facilities • Proximity to other businesses • History of the site. • Future development
  14. 14. In this project Raipur is the good location… 22% 20% 17% 24% 17% Population Bilaspur Durg Raigarh Raipur Rajnandgaon According to Directorate of economics and statistics of Chhattisgarh 2011 total population is 25545198 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 N S D P Millions NSDP(Trade hotel &Restaurant) Series1
  15. 15. Project location is between RAIPUR-VIZIANAGRAM NH-30 at NAYA RAIPUR. Second largest traffic intensity in Chhattisgarh. Climate-  Temp ranges 40-42⁰C in summer day and in winter it falls down to 10-12⁰C.  Humidity-average56%  Middle income area. Topography- The Chhattisgarh state can be divided into 3physiological zones viz. Bastar plateau , Chhattisgarh plain and Northern Hill region. The districts of Raipur (300 m above MSL)and Dhamtari (305m MSL) are situated in the central flat plain of Chhattisgarh.
  16. 16. Miscellaneous • This geographical place have large surface as well as land water. • Nearest to airport • All the Historical place of Raipur is located just 0.5-1Km apart from location in its surrounding. • Nearest to market. • Pollution free environment.
  17. 17. Project Location-(NAYA RAIPUR)
  18. 18. 58 30 12 % Contribution Area Dining area Kitchen space Office space 6.Deciding Layout 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, storage . Typically, restaurants allot 40 to 60 % of their space to the dining area,approximately30 % to the kitchen and prep area, and the remainder to storage and office space. 40-50% customer arrived in pair 30 % come alone or in parties of three. 20 % come in groups of four or more.
  19. 19. Followingthings shouldbe consideredbefore start the restaurant… Designing & Décor Creating a menu Restaurant Size- 1500 Sq. Feet Hiring the Right Employees • Manager / Owner-1 • Chefs and cooks-4 • Servers-6
  20. 20. 7.Legal Requirement Food Safety and Standards Act, 2006 (FSSI) 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. The Expenditure Tax Act, 1987 governs the taxation process associated with the chargeable expenditure incurred by an individual in a certain hotel or restaurant. The Act applies to chargeable expenditure provided the following criteria are fulfilled-  If the charges are incurred in a hotel where the room charges for an accommodation is INR 3000 per day or in excess of this amount  The charges are incurred in a restaurant
  21. 21. CHHATTISGARH FOOD SECURITY ACT, 2012 “An Act to provide for food and nutritional security by ensuring access to adequate quantity of food and other requirements of good nutrition for people of the State, at affordable prices, at all times to live a life with dignity and for matters connected therewith or incidental thereto”. A owner would not charge more than the standard price including all taxes. No provision of child labor Waste and disposal policy of government
  22. 22. 8.Milestone Of Project Work content Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Project plan Licensing and registration Construction of restaurant Lightning and lamps Furniture for restaurant Decorations and cash register Production and completion of menus Advertising Employee training
  23. 23. Project Investment Cost Land cost ₹ 1,125,000 Construction cost ₹ 2,500,000 Dining and Office furniture ₹ 200,000 Equipment and machine ₹ 200,000 Preliminary Expenses ₹ 10,000 Working Capital ₹ 562,000 Total ₹ 4,597,000 9.Financial Analysis
  24. 24. Land and Dedicated Space(1500 Sq. Feet) %contribution Dedicated space Cost per sq feet Total cost Dining 63 945 ₹ 750 ₹ 708,750 waiting 4 60 ₹ 750 ₹ 45,000 Kitchen 25 375 ₹ 750 ₹ 281,250 Office 1 15 ₹ 750 ₹ 11,250 Rest 7 105 ₹ 750 ₹ 78,750 Total ₹ 1,125,000 1. Land Cost
  25. 25. M/c and equipment M/c and equipment Quantity Unit Price Total cost Freeze 2 ₹ 25,000 ₹ 50,000 Broast M/c 1 ₹ 100,000 ₹ 100,000 Micro Wave 2 ₹ 10,000 ₹ 20,000 Hot plate for kabab 1 ₹ 25,000 ₹ 25,000 Other ₹ 5,000 Total ₹ 200,000 2. Machinery & Equipment-
  26. 26. Dining and office furniture Description Quantity Unit Price Total cost Dining Table(2×2) 15 ₹ 6,000 ₹ 90,000 Chairs 60 ₹ 500 ₹ 30,000 Office table 1 ₹ 10,000 ₹ 10,000 Lights ₹ 10,000 Generator 1 ₹ 50,000 ₹ 50,000 Other ₹ 10,000 Total ₹ 200,000 3. Dining& General Fixture
  27. 27. Human resource Requirement Quantity Salary per month Total Owner 1 - - Kitchen supervisor 2 ₹ 6,000 ₹ 12,000 Shift Supervisor 3 ₹ 8,000 ₹ 24,000 cook 4 ₹ 4,000 ₹ 16,000 Server 6 ₹ 3,000 ₹ 18,000 Cashier 1 ₹ 6,000 ₹ 6,000 Dish Washer 2 ₹ 2,500 ₹ 5,000 Guard 1 ₹ 6,000 ₹ 6,000 Total ₹ 87,000 HumanresourceRequirement
  28. 28. Utility (Monthly) Electricity ₹ 20,000 Water ₹ 1,000 Gas ₹ 10,000 Telephone ₹ 5,000 Total ₹ 36,000 Utility Requirement
  29. 29. Working Capital Monthly 4×Monthly Utility ₹ 36,000 ₹ 144,000 salary ₹ 87,000 ₹ 348,000 Raw Material ₹ 70,000 Total ₹ 562,000 4. Workingcapitaland Operatingcost-
  30. 30. Other Cost- • Machinery Maintenance- All machines require routine cleaning and maintenance after every three months and an annual service which costs around 1% to 5% of the total cost. • Depreciation on Building & 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.
  31. 31. Food Description Cost Price Units Sales Total Sales Total Cost Hot soup ₹ 25.00 ₹ 75.00 6 ₹ 450.00 ₹ 150.00 Chicken soup ₹ 50.00 ₹ 140.00 6 ₹ 840.00 ₹ 300.00 Plain rice ₹ 12.00 ₹ 40.00 3 ₹ 120.00 ₹ 36.00 Chicken fried rice ₹ 30.00 ₹ 80.00 12 ₹ 960.00 ₹ 360.00 Chicken chilly ₹ 30.00 ₹ 85.00 6 ₹ 510.00 ₹ 180.00 Egg rice ₹ 20.00 ₹ 70.00 5 ₹ 350.00 ₹ 100.00 Veg rice ₹ 18.00 ₹ 60.00 5 ₹ 300.00 ₹ 90.00 Beef chilly ₹ 30.00 ₹ 75.00 6 ₹ 450.00 ₹ 180.00 Manchurian ₹ 25.00 ₹ 70.00 10 ₹ 700.00 ₹ 250.00 Chicken roast ₹ 35.00 ₹ 65.00 36 ₹ 2,340.00 ₹ 1,260.00 Burger ₹ 20.00 ₹ 50.00 24 ₹ 1,200.00 ₹ 480.00 Club sandwich ₹ 35.00 ₹ 80.00 30 ₹ 2,400.00 ₹ 1,050.00 Cheese burger ₹ 23.00 ₹ 45.00 18 ₹ 810.00 ₹ 414.00 Zinger burger ₹ 40.00 ₹ 80.00 24 ₹ 1,920.00 ₹ 960.00 Total daily sales ₹ 13,350.00 ₹ 5,810.00 Monthly sales ₹ 400,500 ₹ 174,300.00 Yearly sales ₹ 4,806,000 ₹ 2,091,600.00 Additional ₹ 5,000.00 Total cost ₹ 2,096,600.00 Gross profit (yearly) ₹ 2,709,400 Monthly ₹ 225,783 Daily ₹ 7,526
  32. 32. Assumption in this analysis Sales Increase- 15% per year Increase in Cost of Raw Materials-10% per year Increase in Utilities-10% per year Increase in Office Expenses-10% per year Debt / Equity Ratio-50:50 Depreciation-10% per year Equipment Annual Maintenance Cost-10% per year Tax Rate- As per the government policy
  33. 33. Loan Provider MSME-(Micro small Medium enterprises)-Gov. of India Which provide loan for small enterprises above 2500000 Rs. Various Banking options are-  SBI  HDFC
  34. 34. Income Statement and cash Flow analysis • E:PPTAbhi.xlsx
  35. 35. 10.Machinery Suppliers • Kamla Enterprises Infront of Bohara Masjid, Near Saddani Chowk, Nayapara, Sadar Bazar, Raipur (C.G.) • Klowin Buisness India Limited C-3, Sri Ram Nagar, Raipur Ho, Raipur-Chhattisgarh - 492001, • Prem Enterprises Saraogi House, M G Road Raipur, Raipur-Chhattisgarh - 492001, Near Ram Sagar Para, Jawahar Nagar, Ram Sagar Para
  36. 36. 11.Impact Of This Project Job creation- Provide jobs to the local community. Tax revenue- Provide sale Tax to local economy. Increase Farmer income New market formation Improved Health
  37. 37. Thank you !!

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