Assignment no: 1

Subject:Team Managing

Submitted To:
Mam Munaza
Submitted By:
Group member
Shujaat ali
Class no: 131
Muntazir hussain
Class no:68

BS comeerce (hons)
7nd Semester
DEPARTMENT OF Quaid Azam Commerce
College Peshawar
( University of Peshawer)

Assignment On
1

Fast food restaurant parachinar kurram

Agency
1: Executive Summary.
The fast food restaurant which we want to start 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 populated middle income areas or flat complexes. Major cities like
Quetta, Karachi, Lahore, Islamabad, Rawalpindi and Peshawar, etc. are suitable to establish the
project similar our city Parachinar is too suitable for the same activity. Common menu items at
the proposed fast food outlet include sandwiches, burgers, fried chicken, Chinese soups, and
Chinese rice variants, French fries, salad and cold drinks.
The fast food restaurant will have an installed capacity to serve 335 clients per day;
however, the restaurant which we start would initially start business with 140-150 clients. 10
personnel would be required to manage the operations of fast food restaurant.
The most critical considerations or factors for success of the project are:
1. Choosing the right location for the fast food outlet
2. Creating the right menu and menu pricing
3. Hiring experienced cooks and staff
4. Knowing the competition
2: Description of Project and product.
Fast food is a name given to food which is prepared with preheated or precooked
ingredients and served to customers in a packaged form for take-away or dines in. Many fastfood restaurants operate chains or franchise operations; where standardized foodstuff is shipped
to each restaurant from a central location.
There are also simpler fast-food outlets, such as stands or kiosks, which may or may not
provide seating arrangements for customers. As capital requirements to start a fast-food
restaurant are relatively low, individually-owned fast-food restaurants have become popular and
common throughout Pakistan. Market growth largely depends on demographics, urbanization,
changing lifestyle patterns and demand for convenience. Thus all these variables determine the
potential of fast food business
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 Technology
The proposed setup with used fast food cooking machinery including fryers, grilling
machine, soup containers and pre-processing equipment would serve popular fast food.
Location
The business is envisaged to be established as a fast food takeaway or an outlet with
limited seating capacity on rented premises or shop of around 500 sqft. Preferably near
populated middle income areas or flat complexes suitable for fast food. Major cities like
Quetta, Karachi, Lahore, Islamabad, Rawalpindi and Peshawar, etc. are suitable to
establish the project similar our city Parachinar is too suitable for the same activity.
Product
Four popular fast food items, including fried chicken, burgers, sandwiches, Chinese
fried rice and soups have been selected to be served separately or as combine meals
through the outlet. The restaurant is proposed to have an installed capacity of serving
335customer per day but is estimated to start with 140-150 customers per day.
Target Market
The middle income segment of major cities such as Quetta, Karachi, Lahore,
Islamabad, Rawalpindi, Peshawar and Parachinar is the target market for the business.
Employee Generation
The proposed project will provide direct employment to 10 people.
3: Critical Factors
Whether an entrepreneur is opening a one-of-a-kind no-frills fast food restaurant or trying
to expand an existing fast food outlet into a multi-unit chain, there are winning principles that
can improve the chances of success. Some key success factors are as follows:
Selecting the right location and layout
Hiring well experienced staff especially cooks and servers
Quality & Hygiene
Creating the right menu
Menu pricing
Operational food quality consistency
Knowing the competition
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4: Installed and operational capacities

In the fast food restaurant business, the installed capacities are mainly dependant on the
location and layout of the outlet, service style, food concept and the target market. The proposed
fast food business is envisaged to be established as a take-away outlet with limited seating
capacity around it. The restaurant is expected to serve around 335 customers in a day. At start up,
the operational capacities are estimated to be around 140-150 customers. Once the fast food
gains popularity and acceptance, sales are expected to increase with the same installed capacity.
5: Potential Target Market/Customers
The fast food restaurant market is a growing segment in Pakistan relying heavily on the
changing lifestyle patterns, population growth of the target age group and the related increase in
employment of women. The fast food consumption has also increased due to increase in the
employment rate of male / female population aged between 20 to 29 years (fast food goers). In
today's hectic urban lifestyles, demand for convenience dominates all other preferences. People
want quick and convenient meals. They do not want to spend a lot of time preparing meals,
traveling to pick up meals, or waiting for meals in restaurants. As a result, consumers rely on fast
food. However, the major chunk of fast-food goers, the middle income segment, prefers visiting
outlets that offer fast food at affordable prices. Fast Food outlets tend to focus on the work
while you eat or shop while you eat philosophy and fast food restaurants are rapidly
becoming the eateries "everyone can agree on", with many featuring menu combos for children,
play areas and fancy branding campaigns, designed to appeal to younger customers
6: Project Cost Summary
A detailed financial model has been developed to analyze the commercial viability of this
project. Various costs and revenue related assumptions along with results of the analysis are
outlined in this section.

Project Financing
Following table provides details of the equity required and variables related to:
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Description
Total Equity
Bank Loan
Markup to the Borrower (%age/annum)
Tenure of the Loan (Years)
Grace period (Year)

Detail
Rs 219,936
Rs. 1,979,429
08%
08
1

Project Cost
Capital Investment
Renovation Cost
Furniture & fixtures
Machinery & Equipment
Advance Rent and Gas Security Deposit (GSD)
Preliminary Expenses
Total Capital Cost
Initial Working Capital
Total Project Cost

Amount (Rs.)
233,000
181,250
933,500
505,000
25,000
1,877,750
321,615
2,199,365

Space Requirement
The land requirement is around 500 sqft. It is recommended that the fast food outlet be
opened on the ground floor of flat complexes or shopping malls or any other area with high retail
consumer traffic. As per the proposed service style, the floor space needs to be carefully
allocated to allow for maximum space for food preparation and store. The allocation of space
between different sections would be as follows:
Space Requirement (in ft.)
Kitchen and preparation
Store
Front desk/reception
Waiting area
Total Area

Area (Sqft.)
350
100
25
25
500

Cost of Renovation Amount (Rs.)

175,000
30,000
20,500
7,500
233,000

Machinery and Equipment

Fast-food machines are easily available in the local market but the entrepreneur also has
the choice to select from international brands such as Spinzer,Frymaster, Henny Penny, Lincoln,
Ayrking, Keating, Mirror, Carpigiani, Lincat,Morretti, Ilsa, Round-Up, Sanyo, Elettrobar etc.
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Chinese brands have gained popularity over the years and can also be considered. The machines
can be ordered through international vendors with a minimum delivery period of 3months while
refurbished / reconditioned machines are also available. There is also an option to procure used
machines from closing outlets but the durability and reliability factor must be taken into
consideration while buying such machines. The typical fast food restaurant as outlined above
would require the following machine / equipment for its operations
Furniture Requirement
The project is envisaged to operate as a take-away fast food; however a limited seating
arrangement around the outlet, similar to existing local fast foods, would be provided to entertain
a maximum of 40 customers at a time. The following table gives the details of the furniture and
fixtures requirement for the front and back-house operations
Raw Material Cost
Description
Material for fried chicken
Material for burgers
Material for sandwiches
Material for Chinese food
Soft drinks and fries etc
Packaging material
Total Raw Material Cost

Cost (Rs.)
20,324
21,165
9,772
19,323
15,397
1,134
87,115

The raw material cost is estimated to increase by 12% annually

Human Resource Requirement
Description
Owner Manager
Kitchen Supervisor
Cook
Servers
Dishwasher
Cleaner

No. of Employees
1
1
3
3
1
1

Salary per month

(Rs.)
28,000
15,000
12,000
10,000
10,000
10,000

Total monthly
salary (Rs.)
28,000
15,000
36,000
30000
10000
10000
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Total Staff
Menu

10

129,000

Menu consists of different food items which are as follows:

Item Description
Chicken Roast (Full)
Chicken Roast (Half)
Chicken Roast (Qtr.)
Chicken Burger
Chicken Cheese Burger
Beef Burger
Beef Cheese Burger
Zinger Burger
Chicken Sandwich
Egg Sandwich
Beef Sandwich
Club Sandwich
Hot & Sour Soup (2 Servings)
Hot & Sour Soup (4 Servings)
Chicken Corn Soup (2 Servings)
Chicken Corn Soup (4 Servings)
Plain Rice
Chicken Fried Rice
Vegetable Fried Rice
Egg Fried Rice
Beef Fried Rice
French Fries (per plate)
Soft Drinks (Large)
Soft Drinks (Regular 250ml)

Sales Price
550
290
145
120
140
100
120
140
120
100
110
140
150
280
150
280
100
160
110
130
150
50
80
20

Utilities
Utilities consist of electricity, gas, water and
telephone:
Description
Electricity
Gas
Water
Telephone
Total

Monthly Charges (Rs.)

35,000
22,000
3,000
3,000
63,000