Friendly pizza hut

SUBMITTED BY:
N140286

N140291

N140284

N140380

N140387

N140382
Executive summary:
●During the past twenty years pizza hut business has earned more money and developing
successfully. This business plan will show how a family-run start-up business providing excellent
quality New-York style pizza to the residents of local bay area.

●The Local bay area’s explosive growth over the past five years, local businesses are slowly
catching up with this opportunity. We are opening a new pizza hut and delivery service that will
focus on the local bay area.

●We are specializing in creating and offering a variety of deliciously different pizza. We will
offer a better product, at a reasonable price, and we will deliver it on time to the customer’s
door.

●The total investment of this plan only $100000 could be gradually increasing net profits in
excess of $600000 over a five years period, and average monthly sales of $70000.An
investors($30000) and a bank($30000) to cover the start-up costs.

●This plan is to secure additional funding from investors and bank to cover the start-up costs.

●To attract a minimum 100 regular customers per day for pizza delivering and to offer our
customers excellent pizza services at reasonable price.

●After spending several months searching for a convenient location, the owners decided to
lease a commercial space in a densely populated area of local bay.

●The capital will be used for kitchen inventory and equipment, packing and other materials,
rent, business sign, legal expenses…etc.

●We focus on satisfying the needs of low to middle class residents and companies located
inside or outside the local bay areas.

Key to success:
●Excellent product and serviece that will build and maitain customer loyality.

●a business location that will assure high company visibility and high flow customers.

●Our commitment to continues improvement and total services

Company summary:
●The capital will be used for legal expenses, kitchen inventory and equipment, packing and
other materials, rent…etc.

●Our company policy is to purchase only new, energy-efficient equipment from reliable
suppliers in the food industry.

●Delivery people use will use their own vehicles, so the business will not have to purchase
delivery vehicles.

●The Company will serve ten kilometers with over 500000 residents and rapidly growing
population. The location is very favorable, providing high visibility and a large flow of
customers.

●Pizza is served at the counter and for delivered to the location indicated in our customers’
orders. We take orders online, by phone or at our location.

●Pizza can be delivered not only refrigerated, but also hot, depending up on customer
preference.

●Pizza hut will offer a wide variety of New-York style pizza, as well as sauces, fruit juices, and
drinks.

●Pizza hut like a restaurant where customers order food and drinks at the counter and also
restaurant will provide table service.

●Pizza can be delivered hot or refrigerated. Special package offers protection and quality
conservation during transportation. Re heating instructions are also included in the package,
along with other items ordered by the customer such as drinks, fruit juices.

●The pizza is sold by the slice or as whole piece. The slice, taken from a large pizza, which is
about 18 inches in diameter, is cut in to 8 slices. When sold by the slice, we can offer both
regular and plain pizzas.

●The projected average monthly sales are approximately $70000. An average price of $17 per
pie, we should need to sell on average 150 pies per day.

●Using our equipment and technology we will be able to produce maximum 300 pies per day
(usually 10 working hours per day).

●The Company will sell to individuals, but we will also some occasional catering jobs individuals
and companies in that area.
●Legal- $1,200
Kitchen Inventory- $6,000
Packing Materials -$1,500
Kitchen Equipment -$20,000
Insurance- $1,500
Rent -$2,000
Promotion -$1,800
Other Expensed Equipment- $5,000
Business Sign- $3,000
Permits- $1,500
Office Supplies -$1,000
Other- $3,000

Start-up Assets:
Cash Required- $10,000
Start-up Inventory- $15,000
Other Current Assets- $9,000
Long-term Assets -$50,000

Total Requirements- $100000

●18-inch New-York style pizza, vegetarian, plain pies (shipping cost is included in the price).

• One pie, $19.95

• Four pies, $64.95

• Eight pies, $123.95

• Twelve pies, $ 178.95

Business portfolio:
●Pizza hut will offer a widely variety of New-York style pizza, as well as drinks, sauces, fruit
juices.

●According to wikipedia.com, New-York style pizza is originated in Manhattan; NY in the early

1900s.This type of pizza is known to have thin, wide, and foldable slices.

●The pizza is sold by the slice or as whole piece. The slice, taken from a large pizza, which is
about 18 inches in diameter, is cut in to 8 slices. When sold by the slice, we can offer both
regular and plain pizzas. For delivery we offer 18 inches plain pies.

●The slices are sealed and the packaging will allow our customers to remove individual slices
from their packs.

●The Pies are also shipped in leak proof refrigerant gal packs. Thus the customer will be able to
pop them in to preheated oven.

●As explained in the previous our main products are a variety of New-York style pizza that are
served at the counter for take-out, as street snacks, or delivered at the location indicated in the
customer order.

Landscape:
●We are lease commercial place space in densely populate local bay areas. However there are
some food restaurants near our location that also include pizza and other items. The quality of
their products no match for the New-York style pizza that we offer, but we may consider them
as competitors because offer low prices and they are located near our pizzeria.

●The entire delivery process will be conducted through on-line services that have excellent
references in the local bay areas.

Advantages of chosen location include:

●plenty of parking, garages, and additional storage are available

●excellent central location with easy access to major destinations and free ways

●strategically located on one of the busiest street in downtown

Paper works:
Business license: A business license is required in order to open and operate business in India.

Food safety license: This is obtained by FSSAI (food safety and standards authority of India).

Health license: This can by acquired from local civil authorities of that area.

Eating house license: This is provided by licensing police commissioner of that city.

Pollution certificate: Delhi pollution control committee (DPCC) is responsible for providing this
license

Shops and Establishment Act: You are required to register your restaurant under the Shops and
Establishment Act.

Prevention of Food and Adulteration (PFA) Act, 1954: The PFA Act covers food standards,
general procedures for sampling, analysis of food, powers of authorized officers, nature of
penalties and other parameters related to food. It protects India against impure, unsafe, and
fraudulently labeled foods.

Signage license: You will be required to obtain this license from local civil authorities.

GST Registration: GST that came into force since 1st of July, 2017, has kept everyone hitched to
it with frequent changes.

Fire Department: You have to ensure the compliance of all the fire safety guidelines. This has to
be done before submitting the application, for obtaining a NOC, to the Chief Fire Officer. You
can also contact the Chief Fire Officer in case there is a delay in carrying out the inspection or
issue of fire safety guidelines, or issue of NOC after the inspection has been carried out etc. The
department does not levy any charges for this job for the time being.

Certificate of environmental clearance: The restaurant is not only responsible for ensuring the
health of the customers; they are also legally and morally bound to ensure that its operations
must not negatively harm the nature of the mother earth.

Signage license: You need to market your product well that will ensure that your business helps
you garner the maximum profit. However, if you want to market your restaurant either through
word of mouth, logos, posters, pictures and symbols, you are required to obtain a legal permit
which is the signage license.
SWOT analysis:
The SWOT analysis provides us with an excellent opportunity to examine and evaluate the
internal strengths and weaknesses of FRIENDLY PIZZA HUT

STRENGTHS:

●excellent quality and low price

●efficient pizza preparation equipment and technology

●various types of pizza

●Strong brand equity supported by heavy advertising & marketing campaigns

● Supply chain & distribution network

WEAKNESSES:

●We are new in town

●Limited operating capacity

● Slow growing and declining same-store sales

THREATS:

●Slow recovery process of economy

●Changes in the business environment that might reduce our sales

●higher taxes in future

● Changing consumer habits towards healthier food choices

● Intensive competition from a fragmented number of small competitors

●the commercial is leased not owned by our company

Opportunities:
● Growing presence in emerging markets, particularly in India, China

● Leverage supply chain & distribution system to introduce new products

●No competitors offer New-York style pizza in the surrounding area

●Fast growing population local bay areas

Idea screening:

●Recover from the negative perception,

● Build credibility by following up a promise with concrete action,

● Get a hot, cheesy promotional slice of earned media for being the first major fast food chain to
adopt this safety measure.

Financial factors:
●The income statement is a simple and straightforward report on the proposed business's cash-
generating ability. It is a score card on the financial performance of your business that reflects
when sales is made and when expenses are incurred. It draws information from the various
financial models developed earlier such as revenue, expenses, capital (in the form of
depreciation), and cost of goods. By combining these elements, the income statement
illustrates just how much your company makes or loses during the year by subtracting cost of
goods and expenses from revenue to arrive at a net result -- which is either a profit or a loss.

For a business plan, the income statement should be generated on a monthly basis during the
first year, quarterly for the second, and annually for each year thereafter. It is formed by listing
your financial projections in the following manner:

1. Income -- Includes all the income generated by the business and its sources.

2. Cost of goods -- Includes all the costs related to the sale of products in inventory.

3. Gross profit margin -- The difference between revenue and cost of goods. Gross profit
margin can be expressed in dollars, as a percentage, or both. As a percentage, the GP margin is
always stated as a percentage of revenue.

4. Operating expenses -- Includes all overhead and labor expenses associated with the
operations of the business.

5. Total expenses -- The sum of all overhead and labor expenses required to operate the
business.
6. Net profit -- The difference between gross profit margin and total expenses, the net income
depicts the business's debt and capital capabilities.

7. Depreciation-- Reflects the decrease in value of capital assets used to generate income. Also
used as the basis for a tax deduction and an indicator of the flow of money into new capital.

8. Net profit before interest -- The difference between net profit and depreciation.

9. Interest -- Includes all interest derived from debts, both short-term and long-term. Interest is
determined by the amount of investment within the company.

10. Net profit before taxes -- The difference between net profit before interest and interest.

11. Taxes -- Includes all taxes on the business.

12. Profit after taxes -- The difference between net profit before taxes and the taxes accrued.
Profit after taxes is the bottom line for any company.

Investors and agreements:

●This plan is to secure additional funding from investors and bank to cover the start-up costs.

●An investor and co-owner are welcome to participate in the company's capital for the amount
of $30000, and could be offered a portion of 30 percent ownership of the $10000 company
capital. The funds provided by the investor will be used to buy equipment, and to cover part of
the start-up expenses.

● for $30,000 additional financing needed to cover the start-up costs, the company plans to
receive a five-year term commercial loan facility which will meet the cash flow requirements.
The borrowed funds will be used exclusively to buy equipment, based on the list that will be
made available to the lending institution. The loan could be repaid in equal monthly
installments over a five-year period.

●The new investor would be invited to discuss the quantity and quality of the stock to be
issued, before the incorporation procedures are started.

●We recognize that any investor in a start-up company, no matter how well on paper,
ultimately needs an exit vehicle. Our purpose is to provide the best alternatives to protect
investor's interest, while maintaining the potential growth of our company, the liquidity, and
the profitability of future operations.

●The fear of investors is that they will become locked into a company that might show no sign of either
going public or going bankrupt. To overcome this potential threat, we are open to discuss with the
investor several exit alternatives, and include the best provisions in the agreements that are expected
be reached by the time of the incorporation.

●we believe that following negotiating terms are expected to increase investor confidence, and
improve management-investor communication:

● A board position and possible a consulting role of the investor

● Good communication between company's management and the investor (For

example: quarterly reports, monthly updates, etc.)

● Setting clear return objectives for the management (projected IRR, potential returns,
sales projections, etc.)

● Not taking certain actions without investor's approval, such as: selling all or
substantially all of the company's assets, setting stock options programs, issuing
additional stock to existing management, selling stock below prices paid by the investor,
or creating classes of stock with liquidation preferences or other rights senior to the
investor's class of security.

● Stock price protection, an anti-dilution provision that will result in the investor
receiving more stock, should the company issue stock at a lower price that paid by the
investor

●corporate governance provisions.

Operation machinery and work force:
•After spending several months searching for a convenient location the owners decided

the owners decided to lease a commercial space in a densely populated area of local bay.

•start up pizza center:

•Kitchen inventory: kitchen inventory will include specific tools and typically needed for a pizza
production and service facility and includes.

•Food preparation : Aprons, Gloves, Storage, containers, work tables, mixers, cleaning supplies
and equipment ,tableware, pots and pans, glassware, paper, pizza pans , etc.

•Pizza tools: parchment paper, oven brush, bobble popper, pizza tray rack, pizza separate, and
other specific items.

•Utensils: Cooking utensils, wheel cutters, cutting guide, rocker knives, etc.

•Other expensed equipment: Consists of pizza signs, tables and chairs, coffee makers, coffee
filters, tea dispensers, juice dispensers, cleaning equipment, dish machines, etc.

•inventory on hand :At start up includes specific ingredients for pizza preparation, flour, spices
and pizza condiments, sauces, juices and other soft drinks, coffee, tea toppings, parmesan
cheese, cookie dough’s, bread sticks and different dessert items that can be ordered together
with the main menu item.

•insurance premium: for business risk coverage is initially established some amount for the first
two months, and will be further negotiated with the insurance company.

•Promotion: The expenses are initially estimated some amount and will be used for various
marketing information materials and advertisements.

•Office supplies: include desks, files, tape, record books, forms, etc.

•Legal: the expenses are the additional costs incurred to operate legally in the Local bay area.

•permits: The expenses are the additional costs incurred to operate legally in the local bay area.
There are several U.S based manufacturers and suppliers of pizzeria equipment. The specific
vendors will be chose soon, based on competitive bidding process. All the selected
manufacturers produce and supply high quality, energy efficient kitchen and Restaurant
equipment, and they compete primarily on price.

Weaknesses: We have identified some of our weaknesses.

a) Cost factor associated with keeping state of the art equipment and technology

b) Start up challenges

c) limited operating capacity during peak sales periods

Management strategies and polices:

• Our management is expected to use resources wisely, operate profitably, pay debts, and
abide by laws and regulations. Our management philosophy is based on team work,
responsibility, and mutual respect. People who work at takeout pizza income would want to be
part of our team because we operate in an environment that encourages creativity, diversity,
growth, and performance.

● The Company is attended several business management courses organized by the local small
business development center, steadily adding business skills and business training at their
technical background. They constantly focus on continuous improvement of their business by
applying modern management techniques, such as total quality, activity based management
theory of constraints, and just in time operating environment.

•Our strategy is based on delivering a strong customer value proposition in a market. we are
looking to offer the Local bay city and its surrounding areas a new choice in pizza options.

• We are building our marketing infrastructure so that we can eventually reach more customers
with the same pizza offering .we focus on satisfying the needs of low to middle class residents
and companies located inside or outside the local bay industrial park.

Policies:

●Pizza hut adopt the policies for help to decide issues before they come problems.

●Pizza hut adopt the policies of hiring only trained workers, promoting for within conforming
strictly to high standard of business ethics, setting competitive prices and insisting on rather
than cost plus pricing

●Pizza hut adopt policies for

●Operational leadership

●product leadership

●customer closeness

●Operational excellence providing a good product service at a low price

●For product leadership we innovate a stream of new pizza’s taste than our competitor do

●For customer closeness pizza hut adopt the policies to keep in touch with customers to
provide them quality food and services.

Risk Factors

Risks relating to business and industry

1. The pizza category is highly competitive, and such competition could adversely affect
operating results.

2. If it fails to successfully implement growth strategy, which includes opening new domestic
and international stores, then ability to increase revenues and operating profits could be
adversely affected.

3. The food service market is affected by consumer preferences and perceptions. Changes in
these preferences and perceptions may lessen the demand for products, which would reduce sales
and harm business.

4. Increases in food, labor and other costs could adversely affect profitability and operating
results.

5. Not having long-term contracts with certain suppliers and as a result they could seek to
significantly increase prices or fail to deliver

6Shortages or interruptions in the supply or delivery of fresh food products could adversely
affect operating results.

7. Any prolonged disruption in the operations of any of dough manufacturing and supply chain
centers could harm business.

8. Loss of key personnel or inability to attract and retain new qualified personnel could
hurt business and inhibit ability to operate and grow successfully.

9. International operations subject us to additional risk. Such risks and costs may differ in each
country in which we do business, and may cause profitability to decline due to increased costs.

10. Fluctuations in the value of the U.S. dollar in relation to other currencies may lead to lower
revenues and earnings.

11. Earnings and business growth strategy depends on the success of franchisees, and may be
harmed by actions taken by franchisees that are outside of control.

12. Don’t start a pizza shop in the area which is having already existing pizza shops.

13. You should have maintain the timing delivery and satisfy the customer.
14. You should have maintained a good management team and fast cooker to cooking a number
of pizzas at a time.
15. Very important thing is food quality. Please maintain a good food quality and very good
design attracts a customers.

16. Increase in food, labor and other costs could adversely affect profitability and operating
results .Not having long term contracts with certain suppliers and as a result they could seek to
significantly increase or fail to deliver

17. Shortages or interruptions in the supply or delivery of fresh food products could adversely
affect operating results.

18. International operations subject us to additional risk. Such risks and costs may differ in each
country in which we do business and may cause profitability to decline due to increased costs.

19. Earnings and business growth strategy depends on the success of franchisees and may be
harmed by actions taken by franchisees that are outside of control.
20. The pizza category is highly competition could adversely affect operating results.

21. If it fails to successfully implement growth strategy, which includes opening new domestic
and international stores, then ability to increase revenues and operating profits could be
adversely affected.

CUSTOMERS AND CLINTS:

The following statements attracted the customers towards our pizza. Other than competitors-

1. Variety of pizza’s.
2. Good ambience.
3. Services offered.
4. Quality of pizza’s.
5. Location of the outlet.
6. Waiting time in the outlet.
7. Door step service.

30 Minutes Guarantee:
At one point, pizza had a guarantee that a customer would receive their pizza within 30minutes
or they would receive the Pizza free.

Online Advertising:
Guarantee integration across all media channels for the new Menu launch helped increase pizza
presence in online advertising which resulted in great profiling opportunities for online ordering
Capabilities.

Website Creative Success:

The pizza website has undergone vast improvement in the way Promotional products are
communicated to customers.

I Phone:
Over the next few months pizza launch a dedicated I phone application for online ordering.

E-Comer:
1. The delivered pizza can be ordered via website (www.friendlypizza.co).

Marketing strategies-sales and distributions:

●every Company need to sell a product

●our sales based up on belief that there will be regular flow of a first time costumers and due
to our convenient location.

●The real sales effort will be focus on the conversion each first time customer into a long term
customer relationship.

●Where these customers regularly to our pizzeria and also bring or recommend to our new
friends to share experience of a pizza.

●Than it does to attract a new customer and improve our company sells.

●The real sales effort will be to focus on the conversion of each first-time customer into a long-
term customer relationship, where these customers come regularly to our pizzeria, and also
bring or recommend new friends to share the experience of a great pizza.

●This focus recognizes that it would cost our company less money to convert a new customer
into a long-term relationship, than it does to attract a new customer. With this in mind, our
sales activities will concentrate on keeping existing customers happy, and always meet or
exceed their expectations.

●Our company pizza delivery is time delivery at any where (like home, office, etc……).
●We will design a pizza attractively like different colors .In this way also we will improve and
distribution our pizza delivery.

●To reach our potential customers, a combination of marketing techniques will be utilized:

●Local media: Radio is most effective in the Local Bay area. Radio and newspaper
advertising will include our core positioning message, and the New York-style pizza that
we offer, in order to differentiate our service from the competition.

●Sales literature: To drive sales initially, Take-Out Pizza, Inc. will utilize a four color
catalog with a different cover including the company logo and contact address. We have
developed a price sheet to be enclosed with each catalog.

Competitive edge:
● Location: Take-Out Pizza, Inc. is located in the heart of the Local Bay area, near the Local Bay
Industrial Center. This is the busiest area in town. The closest pizza restaurant is a thirty minute
drive. There are more than five hundred businesses in the neighborhood.

● Lower operating cost and reasonable prices: Since Take-Out Pizza, Inc.'s policy is to purchase
latest equipment and technology, and will be operating with a team of five multi-skilled
employees, it will be able to offer reasonable prices for a high quality New York-style pizza, but
it will be impossible to compete on price only.

● Excellent products and services, timely delivery, and convenience.

Personnel plan
The personnel plan reflects the need to bolster our capabilities to match our positioning. Take-
Out Pizza, Inc. will have the following staff:

• Manager

• Cook

• One kitchen staff member

• Two servers

●In our experience, a team of five multi-skilled employees works best for our kind of business.
Working as a team is critical to our success. We recognize that human resources are Pizza hut
most valuable asset.
●Our personnel strategy focuses on selecting, training, rewarding, and stimulating all
employees in order to build employee loyalty, and increase performance. It will be easy to find
and select the best new members of our team.

●The traditional local food-service industry, well represented in the area, along with local
colleges and schools, have contributed to the formation and growth of many skilled employees.
In the selection process, the background check is a must in this line of business.

●As our restaurant will be open Monday through Saturday from 11:00 AM to 8:00 PM, the
team of five can operate effectively only by using alternative work schedules that take into
account the busiest periods of the day, the time needed to prepare the food before opening,
and a forty hours week. Here is an example of alternative work schedule for our cook in week:

●In addition to salaries, important bonuses and incentives are included in the personnel table
that will be used to reward employee performance, on a pay-for-performance basis. The
cornerstone of our personnel plan is to maximize productivity and minimize labor burden of the
company's operating expenses, while maintaining strong employee commitment to the success
of operations.

●Trying to appropriate compensation incentives to our company's performance targets

increases the likelihood that these goals will be achieved. Our performance-based pay strategy
takes into consideration the linking of employee compensation to the achievement of
measurable business targets.
●Employees that perform well are eligible for various types of performance-based pay, such as
cash bonuses, awards, profit sharing plan, and stock option program. The ultimate goal of all
our employees is to meet or exceed our customers' expectations.

●They are all empowered to take any reasonable action to avoid a customer leaving our
premises dissatisfied. Our continuous improvement policy encourages all employees to
continually look for ways to keep updated with the latest technology, to improve processes,
reduce costs and save time.

●This approach serves the goal of reducing costs and delivery times, and increasing the service
quality and customer satisfaction.

Conclusion:

We has successfully established its market because of-

1. Their best services

2. Employee's behavior

3. Localizing the menu

4. Pricing strategy

5. Delivery System

6. Advertising

Pizza hut has many targets which it has achieve in a given period of time. The time-period is
mostly a year. Therefore, in order to fulfill the targets different strategies are adopted by pizza
hut. It can be concluded that these strategies have been successful and there is flexibility in the
strategies, as they can be changed with the changes in the market conditions as well as the target