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Fast food restaurant
- 1. Fast food restaurant GoldenApple Feasibility Report
- 3. Executive Summary • Ihave 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 FoodRestaurant • 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 • ThePakistan 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 Renovation1,500,000 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 BroastPrice 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 andTarget 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 ITEMDETAILS 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 KgPotato 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 DETAILSQUANTITY 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 026,000 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 DETAILSQUANTITY 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 BuildingRequirement • 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
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