The pre-feasibility report outlines a proposed food business named Delight Food, focusing on three primary products: macaronis golgapy, chocolate milk shakes, and salad design plates, targeting a daily capacity of 400 customers. It emphasizes the demand for innovative and local food options in Pakistan's fast-food industry, projecting a strong financial return on investment with a net present value of Rs. 13,310 and an internal rate of return of 56%. The business aims to operate as a sole proprietorship, leveraging local resources and a skilled workforce while being strategically located near schools and public areas.

1. Prefeasibility Report
Submitted to: Sir Asif Tanveer
Submitted by : Rashid Javed, Rabia Bukhari, Mudasra Amjad, Sajjad
Hussain, Tehreem Ilyas, Abd-ul-latif, Mubashir Asghar, Muhammad Hassan,
Hina Gulzar, Qurat-ul-ain and Malka Yasmeen From MBA (m1)4th semester
(2011-2015)
[DELIGHT FOOD]
“To satisfy our stake holders and customers as a guiding principle in our principle be a
benchmark for quality, creativity, local and ethical values”

2. CONTEXT
1: EXECUTIVE SUMMARY…………………………………………………………………………..……………….4
2: PROJECT PROFILE …………………………………………………………………………………………………..5
2.1
PROJECT BRIEF…………………………………………………………………….…….5
2.2
PROPOSED CAPACITY……………………………………………………………..…5
2.3
OPPORTUNITY RATIONAL………………………………………………………….5
2.4
TARGET CUSTOMER…………………………………………………………………..5
2.5
PROPOSED BUSINESS LEGAL STATUS………………………………………...5
2.6
PRODUCT MIX…………………………………………………………………………….6
2.7
PROPOSED LOCATION………………………………………………………………..6
3: KEY SUCCESS FACTORS…………………………………………………………………………………………..7
4: SWOT ANALYSIS…………………………………………………………………………………………………….7
4.1
STRENGTHS………………………………………………………………………………….7
4.2
WEAKNESSES……………………………………………………………………………….7
4.3
OPPORTUNITIES…………………………………………………………………….7
4.4
THREATS……………………………………………………………………………………….8
5: INDUSTRY ANALYSIS……………………………………………………………………………………………….8
6: MARKET ANALYSIS………………………………………………………………………………………………….10
6.1
MARKET DEMAND……………………………………………………………………….10
6.2
MARKET SUPPLY………………………………………………………………………….10
7: PRODUCTION PROCESS FLOW………………………………………………………………………………11
7.1
CUTTING SECTION………………………………………………………………….…….11
7.2
COOKING SECTION…………………………………………………………………….…12
7.3
FILLING SECTION ………………………………………………………………………..…12
7.4
ASSEMBLING SECTION…………………………………………………………………..12
7.5
DECORATING SECTION……………………………………………………………….….13
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3. 7.6
BLENDING SECTION………………………………………………………………………..13
7.7
PRESENTING SECTION……………………………………………………………………..14
8:
RAW MATERIAL REQUIREMENTS……………………………………………………………………………14
9:
HUMAN RESOURCE REQUIREMENT………………………………………………………………………..16
10: LAND, BUILDING AND EQUIPMENT ………………………………………………………………………..17
11: MACHINERY & EQUIPMENT…………………………………………………………………………………….17
12: PROJECT ECONOMICS……………………………………………………………………………………………..18
13: FINANCIAL ANALYSIS…………………………………………………………………………………………......19
3

4. 1
EXECUTIVE SUMMARY
This pre-feasibility study is for setting up of an innovative food items in different
product line. These products process according to the judgment of customer taste
development. Delight food organization cover whole society of Pakistan and these
kinds of outlets will be opened near public places especially near colleges,
universities, restaurants and markets.
This firm categorized in three sectors, delight macaronis golgapy, delight
chocolate milk shake and delight design salad plates. This work not required
highly mechanized work only efficient labor is required to do this work. Golgapy
required only making and filling department only good cock and labor who work
with hand for filling is required. Chocolate juice required a person who can do
work on machine and salad is also a work of hand art.
The total project cost for setting up this workshop is estimated at Rs. 10000/Rs.
The project is financed through 100% equity. The project NPV is around Rs.
13310/Rs, with an IRR of 56% and payback period of 2 days. The legal business
status of this project is proposed as ‘Sole Proprietorship’.
The unit is proposed to operate 8 hours every day. The proposed maximum
capacity of the firm is to deal with 400 customers per day. During the first day
40% capacity is assumed, which increases at a rate of 10% 2nd day and assumes
maximum capacity of 95% in 3rd and last day of operations.
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5. 2
PROJECT PROFILE
2.1
PROJECT BRIEF
This document contains detail of delight foods. This contains three products macaronis golgapy,
chocolate milk shake and design plates of salad. It has Capacity to deal with 400 customers per
day. It’s containing clean and customer oriented staff.
2.2
PROPOSED CAPACITY
This delight food having a capacity to produce daily 6 to 7 hundred golgapy and 2 to 3 hundred
chocolate milk shake glasses and they are able to deal with 400 customers daily and they may
be other food shops.
2.3
OPPORTUNITY RATIONAL
th
Pakistan is the 6 most populous country in the World and according to an estimate with an
average population growth of approximately 1.6 %.The population of Pakistan is estimated
1
about 187 million in the year 2011 . Around 45% of the total population comprises of females.
And they like golgapy and salad due to diet consciousness. And children like golgapy most.
Pakistan contain long duration of summer so milk shake is very popular and chocolate is
favorite to near about 80% people.
2.4
TARGET CUSTOMER
The target customer for the proposed project will be
Delight Macaronis golgapy
Boys and girls between the age of 12 to 35
Delight chocolate milk shake
Children, males and females
Delight design salad pates
Females, restaurants and hotels
2.5
PROPOSED BUSINESS LEGAL STATUS
Legal status is recommended to be a sole proprietorship because it requires less legal
requirement to start with than a company. Similarly a lower income tax rate of tax is applicable
to sole proprietorship than that of companies.
5

6. 2.6
PRODUCT MIX
The store will offer the following broad categories of goods to its customer:
Category of items
Proportion
Gross margin
Delight macaronis golgapy
50%
70%
Delight chocolate milkshake
40%
20%
Salad design plates
10%
10%
100%
2.7
PROPOSED LOCATION
Location of delight store products will be at public places near parks, school and colleges,
university, sport grounds, official places and markets. Salad design plates will be offered to
hotels and restaurants. Delight chocolate milk shake will be offered to hotels, juice corners and
to offices. Delight macaronis will be offered to schools, colleges, universities, bazaar, parks, play
grounds, restaurants and food corners.
SUGGESTED LOCATIONS
COMMERCIAL AREA
Madre millat Fatima park
D.C CHOCK
University chock
MARKETS
Shahi bazaar, Shazad market, Baksho market,
bobby plaza, Bahawalpur trade center, near
ace center, myle wali gali,
INSTITUTION
Sadiq degree college, higher secondary school,
un, government offices,
HOTELS AND RESTAURANTS
Vasiab, 4season, lataska, Libra,
OTHER PLACES
Fawara chock, millad chock, saraiky chock, one
unit, faride gate, welcome chock, university
chock, hamaitian road, sadiq public school,
medical colleges,
6

7. 3
KEY SUCCESS FACTORS







The key to success of this project is to produce neat and clean products.
Strong presence in the domestic market.
Tools & equipments locally available at low price.
Raw materials are available in sufficient quantity.
Vast pool of skilled labor.
Stable business environment till today and growing day by day.
To obtain a good average of profits it is necessary to provide state of art facilities to
customers.
 The staff hired should be well mannered and well trained in dealing with the customers.
 Customer discount like buy 1 get 1 free and package increase.
 Cover a lot of hotels, restaurants and food corners.
4
SWOT ANALYSIS
4.1
STRENGTHS
Local availability of raw materials, machinery and parts.
Easy availability of low cost skilled and unskilled labour
Easy starting in different areas with new ideas
Low cast is enough for this business
Golgapy is famous in Pakistan so some changes are customer will like
Chocolaty milk shake in not available in every market
Loss is not big deal in this business, easily afford.
Customer oriented.
New taste will be introduced easily
4.2
WEAKNESSES
Low level of technological up-gradation.
Used in 1 or 2 days only
Every day fresh raw material is used
Large deal is not instantly made
After customer requirement it can made
4.3
OPPORTUNITIES
Growing in domestic markets easily with new tastes
Competition is going to make availability of inputs cheaper and sufficient.
Exposure to newer markets through Fairs/Exhibitions.
In which services department can expand and take more profit
7

8. 4.4
THREATS
Competition is going to increase because of setting up modern units elsewhere in the
Country.
Everyone can copy easily, no specific formula used for this
Innovation is required in every phase of business operation.
5
INDUSTRY ANALYSIS
Pakistan fast-food industry has shown good progress in terms of production and meeting
customer demands. This industry has been increased over a decade especially in last two years.
Pakistan is one of the most populous countries in the World and according to an estimate with
an average population growth of approximately 1.6 %.The population of Pakistan is estimated
about 187 million in the year 2011. Keeping in view the growth in population, especially growth
in middle class and growth in incomes, the demand of fast-food is also very anticipated. Though
fast-food industry has shown growth but it is a general view that it is not up to the mark as
compare international industries. It has a great and stiff competition in the world and required
lot of improvements and efforts to match international standards. This sector has pivotal
importance in terms of providing and creating jobs, earning of foreign exchange with the help
of exports and fulfilling the local consumption requirements. Yet according to the market
sources no big fast-food company established in last two years especially in little cities like
Bahawalpur. Due to the increase in urbanization in Bahawalpur the demands for fast-food
products has also been increased.
The Future of the Industry
The Pakistani economy is becoming increasingly service-oriented, and over the past several
decades, the foodservice industries that offer the highest levels of convenience have been
rewarded with strong sales growth. In the face of rising population, incomes and increasingly
hectic work schedules, a nearly insatiable demand for convenience will continue to drive fast
food sales. Fast Food Outlets will strive to find ways to make their products even more
accessible. Even if incomes stagnate or attitudes change, consumers are unlikely to return to
meal preparation at home on a large scale. This suggests that even if consumers choose to
spend more time at home, for family or other reasons, much of the meal preparation will still
occur elsewhere. Many more table service restaurants, which traditionally focus on full-service
in house dining, will likely try to capture part of this market by offering take-out, and possibly
experimenting with home delivery. The value of consumer time, as well as the demand for
consistent, high-quality food products, will continue to shape the fast food industry. Fast food,
once considered a novelty, has become an increasingly significant part of the young
generation’s diet. The role of convenience in this dietary shift cannot be over-emphasized, and
the future growth of the rest of the foodservice industry will be driven in large part by its ability
to find new ways to save consumers’ time.
8

9. Increasing Market for Fast Food – The Population Boom
Pakistan, currently ranked as 6th in terms of total population, is characterized by a high
population growth rate of 1.9% (Pakistan Economic Survey 2005) and is set to take the top
three positions in terms of total population with already 153.4 Million people registered in
2005.1 With this, the per capita income has increased to US$ 736 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.
Population Pyramid 1998 & 2020*
9

10. 6
Market Analysis
The fast-food industry is popular in Pakistan, the source of most of its innovation, and many
major international chains are based there. The rapid rate at which the fast food industry
continues to add outlets is as much a reflection of consumer demand for convenience as it is a
reflection of demand for fast food itself. Expanding the number of outlets increases
accessibility, thus making it more convenient for consumers to purchase fast food. 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. Multinational corporations such as these typically modify their
menus to cater to local Pakistan tastes and most overseas outlets are owned by native
franchisees to ensure that cultural, ethnic, and community values are taken care of. The fastfood industry in Pakistan is concentrated in large cities like Islamabad, Karachi, Lahore,
Faisalabad and Rawalpindi. If we talk about the demand of fast-food products and the amount
of total demands of that products are not exactly available. But looking Alameda, Zanzibar and
other market players they have packed houses all the time and it can rightly be assumed that
fast-food products have significant demand, and there is an opportunity to introduce a very
new and unique product in the market. Tasty golgapy with chocolate shake is a very good idea
and unique.
6.1
MARKET DEMAND
Consumer expenditures for fast food in Bahawalpur rose during the end of the year 2000. The
increasing number of new establishments such as fast food franchises, fancy restaurants and
gourmet bakeries in Pakistan has shown a significant growth in this sector. Food spending is
around 56% of total consumer expenditures in Pakistan, and consumer spending on leisure and
recreation made up of 13% of total consumer spending.
A much broader appeal exists for weekend slots because those are the days when most of our
core target market enjoys the mall going activities.
Age - Youngsters, single, currently enrolled in college and high school.
Family unit - We will also appeal to families (young families) with children.
Gender - We will target both sexes, with a slight skew for males due to their lower attention to
dietary concerns.
Income - We will appeal to the medium income individuals and to all in the lower medium
income bracket.
6.2
MARKET SUPPLY
Islamia University is our target market. We have great opportunity to earn a lot of profit in this
market because there is not too much competition. Our competitor is only University canteen.
We are going to present our products with totally new ideas, so it’s 99% sure that we will
compete our competitor easily. We are going to present 3 different kinds of products.
1. Delight Golgapy with macaronis
2. Delight Chocolaty milkshake
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11. 3. Delight design Salad
Before we target males and females of the university we analyzed our market and find out that
there is great opportunity for these products. We are going to give a new taste to the students
of university with economic prices.
Promotion:
Promotion should be local base for this purpose we use local channels advertisement,
billboards, banners and pamphlets for school/colleges.
7
Production Process Flow
As the Delight Food is dealing with three products i.e., the salad, macaroni golgappay and the
chocolate shake, the production process will include the following steps;
For salad and the macaroni golgapy
Production of salad
Macaroni golgappay
Cutting of
vegetables
Cooking of
macaroni
Assembling
Filling ingolgappas
Decoration
7.1
Cutting section
In this section all the vegetables required for the salad and macaroni would be cut down. This
section requires at least two persons. For the salad vegetables would be cut down in the artistic
way. For example as shown below
11

12. 7.2
Cooking section
In this section macaroni will be cooked together with the required ingredients so as to make
the delightful filling with in the Gol Gappa. That filling will looked like as show
7.3
Filling section
In the filling section the deliciously cooked macaroni will be filled in the gol gappas properly.
This section will not require more than one person.
7.4
Assembling section
It the most important section for the delight food. Because in this section the food items i.e, the
salad and the macaroni filled golgapy would be assembled in such a way so as to make the best
assembled dish in one platter in the accurate proportion.
12

13. 7.5
Decorating section
This is also the most important section because the better the decoration the more costumers
will be attracted. This will require the creative person to decorate the platter in the interesting
way. This would also be the specialty of the delight full as they would offer the different and
unique things. Some examples of interestingly decorated platters are:
For the chocolate shake
Blending
section
Presenting
section
7.6
Blending section
While preparing the chocolate shake the first step would be the blending of all ingredients
which include milk, coco powder, sugar etc. in an electric blender in already fixed proportions
to get a delightful and soothing shake.
13

14. 7.7
Presenting section
Again in the production process this is an important step to get a well presented drink so that
more people will be willing to buy it.
8
RAW MATERIAL REQUIREMENTS
All the raw material used for “delight foods” required on daily basis and fresh items will be
selected.
FOR MACARONI GOL GAPPA
Macaroni
Potato
14

15. Onion
Oil
Water
Chilies
Chicken
Spices
Gol Gappa cores
FOR SALAD
Onion
Chili
Green leaves
Boiled eggs
Cucumbers
Carrots
Tomato
Cabbage
FOR CHOCOLATE SHAKE
15

16. Milk
Coco powder
Chocolate for topping
Ice
Sugar
9
Human Resource Requirement
The owner of the project should himself be a professional and be able to perform all purchasing
duties. Skilled salesmen are easily available at competitive wage rates. Hierarchy f employees
are given below:
16

17. 10
LAND, BUILDING AND EQUIPMENT
As per business event land and premises provided by the DMS but equipment arranged by
proprietor.
11
MACHINERY & EQUIPMENT
Majority of the machinery required for grinding and mixing which can be purchased by local
market. As per the nature of business disposable crockery has been use.
Crockery and working pots details for 100 customers
Name of item
(Disposable)
Quantity
Unit price (Rs.)
Total cost (Rs.)
Plates
100
2.5
250
Glass
100
2
200
Spoons and straws
100
1.5
150
Shoppers and tissues
150
.85
127.5
Chairs
10
250
2500
Benches and tables
2
5500
11000
Working table large
1
4500
4500
17

18. Juicer and power Machinery Details
Machinery name
Quantity
Unit price (Rs.)
Total cost (Rs.)
Juicer 2 liter
2
2150
4300
Power generator
1
15000
1500
Stabilizer
1
4500
4500
Machinery visual are under as
12
PROJECT ECONOMICS
The total project cost is estimated around Rs. 10000. The capital cost is estimated around Rs.
1950/ and working capital of Rs. 8050/. The total cost, project returns and financial plan are
given in the tables below:
Table 1
project cost:
Account Head
Total cost (Rs.)
Total capital cost
1950
Total Working capital cost
8050
Total project cost
10,000
The proposed pre-feasibility is based on the assumption of 50% debt and 50% equity. However,
this composition of debt and equity can be changed as per the requirement of the investor
Table 2 financial planning:
Financing
Equity
Debt
Ratio
100%
0%
Rs
10000
00000
18

19. Table 3 Project returns
Project
2.0
13310
56%
Payback period(Days)
NPV (Rs...)
IRR
13
FINANCIAL ANALYSIS
PROJECT DETAILS
Delicious food offers two products Golgapy with macaroni’s, Chocolaty milkshake and salad.
Total investment of these projects is Rs. 10,000.
Delicious food offer 25 plates of Golgapy with macaroni’s to Rs. 30 each and 3 golgapy in each
plate. Different types of salad also make which they attract to the customers. These salads are
different beautiful designs Rs.25 per plate. Another product is chocolate milkshake which very
new in Bahawalpur area. This kind of product is very useful in summer season. Delicious food
offers the chocolate milkshake Rs. 40 per glass.
Initial investment
Products
Rs. In actual
Salad
500
Golgapy
400
Macaroni’s
700
Chocolate powder
900
Milk
750
Total
3,250
Capital investment
Machinery & equipment
1,800
Operating cost
2,000
Designing cost
1,000
Total capital investment
4,800
Total investment
8,050
Profit
1,950
19

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21. 21