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How To Start Your Own Fast Food Business In Pakistan
- April 21, 2022
Fast food is an industry that is growing at a tremendous pace in every part of the world. It promises to deliver food to customers at affordable prices with extra benefits like customer service, loyalty cards, etc.
There are many variations being introduced in fast-food chains and restaurants nowadays. However, with rising competition in terms of factors like design, atmospherics, and ambiance, Pakistan is one such country that lives up to expectations for excelling in the fast-food business. But, there are many things to understand for starting a food brand in the country. The guide below gives a detailed overview of ‘how to start fast food business in Pakistan’.
The Rapid Growth Of The Fast Food Industry In Pakistan
A Bird’s-Eye View
The fast-food industry has grown at an impressive rate in Pakistan in the past few decades. People from different parts have shown a particular preference for Pakistani cuisine due to its variety and unique taste.
However, the increase in fast food chains and Multinational Chains (MNCs) such as Pizza Hut, Burger King, Mcdonald’s, Subway, etc., have also contributed to the growth of this industry. But since these outlets are present worldwide, local competitors have made up to the level of these franchises to deliver similar food types at a much lower price.
The most popular local fast-food restaurants are found in Pakistani cities like Kolachi, Mirage, Usmania, Kababjees, Bundu Khan, etc. These provide more specific and regional taste, which gives purity to the food.
With the rapid increase in population, the growth is also visible in demand for fast food. The number of people employed in the food restaurant business is also remarkable, with more women getting jobs in the sector.
Another reason for this rise is consumer convenience. Various fast food outlets are structured in shopping malls, public transportation stops and stands, etc. These added utilities have provided competitive people to work better in a fast-paced environment.
Popular Fast Food Choices
It is vital for you to tap the existing and popular markets in the region. There are various pre-existing fast-food giants in Pakistan like Dominos, Burger King, Pizza Hut, and many others.
Therefore, consumers have brand loyalty toward these big franchises. There are two options for you to start a fast-food startup in Pakistan. One is that you can offer the same kind of food these MNCs offer, like burgers, pizzas, rolls, etc. The other is that you can compete in an entirely different market by offering local cuisine, which can reap high rewards with additional risks.
Furthermore, you should understand the merits and demerits of both options before arriving at the final decision. However, the most popular fast food choices in the country can be summed up as follows:
- Pizzas; which is dominated by fast-food giants and reputed local restaurants. The latter provides this cuisine as a part of their whole business. For example, they will provide whole meals, burgers, pizzas, etc., in one place.
- Burgers; which also work in the same manner as pizzas with powerful market players, including McDonald’s, Burger King, etc.
- Fried chicken and shawarmas; you can find small food counters or stalls selling chicken rolls in pita breads and fried chicken.
- Kebabs also hold an integral part in evening snacks for Pakistanis. There are many forms and variations of kebabs offered by some popular fast-food restaurants. These include – shami kebab, seekh kebab, chapli kebab , etc.
- Apart from these, AlooTikki, Pani puri, Dahi Bhalla, Dahi bhel, bhel puri, etc., are also some common food choices for an entrepreneur to start their business in.
Preparation For Fast Food Business
After scanning through the market and the popular fast food preferences of the customers, it is crucial to follow a standard procedure for launching the fast-food business. You should also consider a target market for your offerings as it will help in providing special offers to specific classes.
Food & Menu
The first and foremost thing to decide is the food item the food startup will offer. You should think from the customer’s perspective and derive their preferences. On the basis of the food, the top-level or management decides the menu. The menu should be broken down into different cuisine types like burgers, pizzas, etc.
The decision for choosing a suitable food option involves researching the market, competitors, customer preferences, geographical location, demand, supply, and many such factors.
Competitors
Competitors determine how a fast food restaurant will be set up in Pakistan. A proper competitor analysis will help sort out confusion and chaos in the minds of a business planner. Moreover, it will give direction as competitors are the primary benchmark setters.
Customer Preferences
Detailed analysis and profiling of customers will help clear out which items to include and avoid. As they are the king and the ultimate revenue sources, it is important to prioritize them. Even if the trend for some particular fast food is rising in a particular location, it might not work well with the customers in your business area.
Geographical Location
Understanding the customers in the setup area will determine the priorities of the fast-food restaurant and human resource management. For example, a pizza startup in the XYZ location might result in sales and revenue increment. In contrast, another branch of the same business dealing in pizzas might not work in the ABC location due to the different volume of target customers and their preferences.
Demand & Supply
Market forces of demand and supply are the key to establishing a successful fast food business in Pakistan. Economic phases control these market forces. As a result, it increases the purchasing power of people for some specific fast food choices, while decreases for others.
Evaluating Restaurant Size
Restaurant size is another factor to analyze and interpret for initiating a restaurant. It might seem an easy process to understand the total area of the business and allocate specific dimensions to departments within the restaurant. But, it requires systematic planning using different tools and techniques.
The first thing is to get the measurement of the whole working space. It is crucial to utilize the entire space for the business purpose, directly or indirectly. Interior designers can be a good option for your business for understanding the restaurant size and minimizing the wastage of resources.
A crucial aspect in determining the actual available restaurant size is to create a floor plan. Approximate measurements of the cash counter, dining area, cooking section, etc., can relieve you and your team from last-minute problems.
Another thing to consider is the length, width, and height of the tables, chairs, and other fixtures. The ideal dimensions of a fast-food restaurant or startup are 11 to 14 square feet. Any addition to this size is a bonus for the business.
A Nice Place
The location of a fast-food restaurant is the most significant factor that decides the profit-earning capacity of the fast-food restaurant. It is a basic saying that when the food or taste of the cuisine is excellent, it doesn’t matter where the fast-food chain is located.
However, it does not hold true all the time. It creates a burden on the restaurant setter to set the food standards high. When expectations rise, the chances of under-delivery also increase. On the other hand, when the taste of the food you offer is average, people will consider other options like restaurants that offer the same item with better taste.
Therefore, it is recommended to select a restaurant location that is feasible and easily reachable by the target customers. It should have all the essential facilities nearby. A prime location for a fast food business in Pakistan will cost a bit more, but ROI is also high at such locations.
Moreover, the restaurant should be situated where there is decent nightlife. For example, a place that gets closed by 8 or 9 pm will not be the first option for food lovers as most people prefer to have pizza, burgers, and other fast foods late at night while hanging around. Following are some basic features of a successful fast food business location.
- Decent parking mechanism
- Located in a prime location or accessible location
- Excellent visibility from different streets and roads
- Set up where the target customers are found the most
- Low crime rates and safe for women and children
Brand Name & Registration
The most neglected factor in a business is the brand name. Quite often, people do not research well while choosing a brand name for their startup. However, a brand name is one of the most initial things that captures a customer’s mind.
Unique and attractive brand names are important for starting a food brand in Pakistan. A decent brand name backed with a tagline can be a perfect match for a successful fast food restro. Apart from the brand name, you should also look after the registration and legal requirements for setting up a fast-food business.
The most common licenses for establishing the business are –
- Police Eating House license
- Food licenses obtained from FSSAI
- GST registration
- Fire license
- Local Municipal Corporation Health License
The license can be obtained by signing into the official website, i.e., E-license.kpfsa.gov.pk. After logging in, the applicant will be required to fill in their details.
More To Consider
Apart from the essentials mentioned above, there are many other things that determine the success and preparation of a fast food business in Pakistan. The above things outline the basics of a restaurant. The following factors are one step ahead of designing and creating a full-fledged fast food business.
In-Store Decoration
The atmosphere of any business plays a vital role in today’s competitive world. Atmospherics refer to the elements of the store that attracts the customers and makes them feel comfortable. These include visual and psychological elements.
Initially, you should plan out the theme of the physical store outlet. You should consider the layout and brainstorm various ideas around the same. These could be different color palettes or combinations, patterns, designs, wallpapers, graphics, arrangement of chairs and tables, lighting, sound system, natural odor in the store, etc.
The most important thing to understand while designing or decorating the restaurant is to remain competitive and modern. The designers should adapt to the trends, and incorporate elements that are in demand by the customers. The ambiance creates a difference between a good restaurant and a memorable restaurant. The simplest process to excel in store decoration is shown below.
- The first step is to consider and analyze the food prices, restaurant concept, location, and target customers. It is important to draft the budget for in-store decoration in this phase. It is up to you to hire a designer for the process. It also involves creating deadlines for various activities.
- The decoration should be done in compliance with the systems and processes. The restaurant should be designed in such a way that it does not reduce the efficiency of the waiters or staff. There should be ample space left for movement.
- After allocating space for movement and designing a rough floor plan, the actual designing process comes into the picture. In this final stage, arrangement, color combinations, window styles, wall designs, overall theme, lighting, music style & system, graphics, furniture type, etc., are decided and executed.
The ultimate aim of focussing on the design and decoration of the restaurant is to make customers sit for long hours and attain customer loyalty. The most highlighting importance of atmospherics is that it creates a unique identification of the business, not only through the food or cuisine but through the decoration.
The human resource department holds more importance when it comes to the hospitality industry. They create a critical impression on the customers. The manners, behavior, and professionalism determine the response or reaction of the customers.
When a staff greets the customers with impressive etiquette, it increases the chances of customers visiting the restaurant again in the future. Similarly, an ill-mannered staff will receive negative criticism, which will dwindle the restaurant’s profits and lose customer loyalty.
Therefore, proper training is necessary to control what the waiters convey to the guests or customers. Even the slightest facial expressions can demean someone. Apart from the servants or waiters, there are many other people involved in the business, such as managers, cooks, servers, busboys, dishwashers, and cleaners.
These indirectly affect the image of the restaurant. For example, chefs will determine the quality of the food; dishwashers will control the tangible cleanliness of the dishes, etc. These impact the preferences and perceptions of people toward the fast-food business. Along with you, the managers and higher authorities should clear out the duties and responsibilities of every staff member.
Food Catering & Serving Containers
One of the most vital components of any food business is to ensure the quality of the food. Due to rising infections and diseases, hygiene has become a crucial factor in attracting customers. Food catering should be done keeping in mind the correct procedure.
Responsible personnel should clean the kitchen counters regularly to avoid pungent or unpleasant smells. The quality inspectors should also check the containers in which the food is served. Even the raw material containers should be inspected before using them.
Any stain or mark on the plates, bowls, or cutlery can be seen as a loss of a loyal customer. You will not only lose a customer, but will also experience a dip in brand value or recognition. It is a good idea to use machines for cleaning dishes. However, this way will incur huge costs, but will be a profitable option in the long run indirectly.
Food Delivery Service
Serving food is the final step from the restaurant’s end of creating a long-lasting impression on customers. As mentioned earlier, the waiters come in direct contact with the customer. They hold the power to move customers positively. They can ask for water or more food whenever they sense an opportunity.
Apart from serving food, they are also responsible for ensuring the safety of the people. For example, when a sizzler is served, they should warn or ask the guests to beware of the plate. They can give advice gently so that they do not hurt themselves. If they see a child or baby having a fork or knife in their hands, they can alert them. In such ways, a servant can make a good impression.
In many cases, the fast food outlets operate in a self-service model. People are required to order their food and pick up their orders from the counter themselves. This works well when there are a massive number of pending orders. Fast food giants like Mcdonald’s work in this mode at specific locations due to the high volume of orders. Remember to use safe and green take out packaging, especially hot food like burgers .
Marketing & Advertisements
Pushing the restaurant to the customers is useful to enhance the business profitability in a short time. Marketing and advertising will help the startup to be easily visible to the public. If the budget is enough to create an effective marketing plan, you should go for hoardings, influencers, and pamphlets distribution.
You can also spread positive word of mouth through the network of waiters, chefs, friends, relatives, and other sources. Influencer marketing is also an impactful option for promoting the food business through professional chefs and celebrities.
More Tips For Opening A Fast Food Restaurant In Pakistan
There are many hacks and tricks to excel in operating fast-food restaurants in Pakistan. The following points highlight some essential tips for opening a fast-food business.
How To Hire The Right Employees
Hiring the right employees for the right kind of job is a big challenge for your business. Recruitment, selection, training, development, appraisal, compensation, etc., are critical areas in determining a successful human resource system.
Labor is not an issue for a fast-food startup. The real problem is recruiting qualified personnel. In order to realize valuable employees, create a system for feedback and motivation. Moreover, research the competitor’s compensation model and decide on the employment rates. The most crucial staff members in this business are cooks, chefs, and servers/waiters.
Cook & Chef
Initially, most fast-food restaurants require three or four cooks. Among these, one should be the leader under whom the other chefs will work. Responsibilities can also be divided according to shifts like morning, afternoon, and evening.
You can divide these responsibilities in terms of specialization; For instance, cooks can choose their specialization dishes like soups, bread, etc., and be allotted to one chef, while other delicacies can be designated to other chefs. This division can also be done according to rush hours. For example, all cooks will work during rush hours, while during non-peak hours, only one or two will work.
As mentioned earlier, basic etiquettes and manners are a must for the servers. Training holds a crucial place while recruiting the waiters. Patience is another trait waiters should possess. They should be able to handle customer fury and problems. You should fix their working hours, giving them proper rest hours.
How To Lower Budget
There are many ways of reducing the budget of a fast-food business. These are listed below.
- The first way is to introduce only a few main food items on the menu. This will help reduce the costs by huge margins as the chefs will be required to work less. As a result, you will need lesser cooks.
- You can minimize the budget by compromising on the design of the store. You can replace a large music system with two medium or small-sized audio systems to cut costs.
- The quality of the furniture can also be compromised to reduce the budget of the startup.
- A small way to decrease the budget is to use alternatives to some costly ingredients.
Environmentally-Friendly
Nowadays, consumers have become more environmentally conscious about the products or services they use. It has given rise to sustainability awareness. Businesses have identified this as a key opportunity and introduced environment-friendliness as a significant brand booster.
Therefore, the final stage in setting up a fast food business in Pakistan is to ensure you operate with minimal wastage of resources. You should involve techniques that do not affect the environment. Your business can use recyclable products in carrying out business activities.
Another unique way to be eco-friendly is to serve food on environmentally-friendly plates or dishes. You should ideate regularly to think of such innovative solutions to be socially responsible.
Key Takeaways
Pakistan has always been one of the most food-loving countries. There are many regions in the country where people consume fast food on a daily basis. It is not surprising that this industry is one of the top contributing sectors to the country’s economy.
The above guide gives a complete understanding of the different ways and steps of starting a food business in Pakistan. The central component of any fast food business is market research. Therefore, it is important to research everything before launching into this startup line.
As mentioned earlier, packaging can be the first impression booster for any fast food business. YoonPak is an established market player for getting the right packaging material and container for your business needs. You can contact us if you have any doubts or queries regarding our products and services.
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How to Start Your Restaurant Business in Pakistan?
Restaurant business in Pakistan is one of those businesses that capture a lot of interest and seeks passion. Opening a fast food joint or a multi-cuisine restaurant, both are lucrative business options in many aspects.
But opening up a restaurant in metropolitan cities like Karachi, Lahore and, Islamabad needs a well-researched business plan that covers every aspect of making the restaurant successful.
How to start with a restaurant business?
There are plenty of questions that one may have in mind before getting into the restaurant business such as; how much investment is required? What should be the location of my restaurant? How can I reach more foodies? Should I work with web designing companies in Lahore, Karachi or Islamabad for my website promotion and brand building ? Should I take bookings online? etc.
To tackle such questions, it is best to do the research beforehand in order to increase the chances of success for your restaurant. Here we are going to provide you a detail guide to improve your chances of building a successful restaurant.
How much investment is required for restaurant business in Pakistan?
A well-established restaurant needs quite a lot of investment, to begin with. However, a rough estimate would be at least 1 million to anywhere up to 50 million rupees.
This is just an estimate of investment that would be required to start a small to medium scale restaurant. The investment for a restaurant business also depends upon a few of the factors such as,
- Location of business
- Rent of building
- Certification and license fee
- Number of employees and chefs
- Interior of the restaurant
Types of restaurant business that you can run
There are various business models that you can adopt when it comes to capital investment. Here we are going to explain 3 business models that are easy to adopt.
1. Sole Proprietorship
This is the best business model to work with as you become the sole owner of the business. You can hire an administration team that runs the restaurant under your supervision.
Similarly, you can hire a restaurant manager who can look after the administration of the restaurant. You are the one who is going to invest his money and resources to start a restaurant.
2. Partnership
For the investment, if you lack funding then you can also start a restaurant with partnership business model.
In such a business model, you can either take funds from a sleeping partner who would invest in your restaurant business or you can invest in the business and join hands with someone who has the expertise to run a restaurant.
3. Franchise
You can also invest in a franchise business model that gives you the right to use a well-established brand name that is already popular amongst the masses.
However, you should remember that for a franchise business model, you will be required to operate under the terms and conditions of the franchisee.
How to register for a restaurant in Pakistan?
To register your restaurant business in Pakistan, you may have to fulfill the legal requirements of the government. Here are few of the steps that you should follow to register a restaurant in Pakistan,
- The owner of the restaurant should comply with the standard of health, maintain hygiene and ensure the issuance of medical certificates of staffs.
- Restaurant building should be safe and in accordance with governmental laws for safety and hygiene .
- Restaurant owner is also required to get a license from the controller. Typically, the registration of restaurant and license issuance is done simultaneously.
- A license granted to the restaurant only covers a period of one year. Restaurant license is renewable every year and it also requires you to submit the government fee upon renewal of the restaurant license.
Related: How to Register a Business in Pakistan?
How to attract customers to your restaurant?
1. traditional media.
The traditional media includes newspaper and TV. These offline marketing channels require a lot of marketing budget but one of the downsides of marketing through traditional mediums is that it lacks analytical accountability. You don’t know exactly how many people have come across your ad and how many actually took an action.
Read Also: 10 Simple Tips for Advertising in Print Media
2. Digital Media
The modern digital mediums allow you to track the interests and actions of your target audience. It includes Facebook marketing , website promotion, pay per click advertising campaigns or seo services in Pakistan.
All these digital mediums are effective in building a profitable business . However, the best approach for your restaurant business would be to start a Facebook campaign and invest in an attractive website.
3. Facebook Marketing
With Facebook marketing, you are able to see how many people have engaged with your ad, how many have taken an action such as commented to ask for more details or even book a table.
But that’s not it,
Facebook marketing also allows you to re-target the people who have shown interest in your offering but due to the overload of information they didn’t take an action. You can also design a re-targeting campaign for such people.
If you don’t have time to develop the Facebook campaigns for your business then you can hire digital marketing companies that can strategically build a Facebook campaign which ensures an increase in your restaurant’s footfall.
For instance, in your grand launch campaign, you asked people to like your Facebook page to get 20% off on the menu for the first time. Some people saw this ad, commented and asked about the discount in the post or liked the post but they didn’t like your Facebook page.
After a week of the launch of your restaurant, you can design another re-targeting campaign for such people who didn’t like your Facebook page (but commented/engaged on the post), offering them an exclusive discount on the menu in exchange of liking your Facebook page.
Such strategies work great for increasing brand awareness and online followers for your restaurant.
4. Website Promotion
By developing a website, you build your digital footprint. Many people explore the menu, ingredients, prices and book reservations through the website. With the help of a website, you can also promote online delivery and bookings for your restaurant.
A restaurant without a website doesn’t seem to be serious about the business that is why it is important to invest in your online footprint so that people know that you are following the modern trends and technologies to promote your restaurant.
5. Search Engine Optimization
SEO or search engine optimization is another digital strategy to promote your restaurant by targeting the right audience. By investing in SEO, your website comes in front of people when they search for nearby restaurants in their cities. This enhances credibility and brand image of your restaurant. SEO seems to be an integral part of the digital marketing strategy for businesses.
These are some of the unique ways to promote your restaurant business in Pakistan. Many of us dream of opening a restaurant but when it comes to promotion, we head over to traditional advertising mediums . But, if you are thinking over to start a restaurant business in Pakistan, then follow the modern trends and invest in a brand image that can sparkle the interests of your target audience.
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Author Bio: Aisha Alia is a web developer at Brand AdvoKates for 2 years. She is an energetic person who believes in getting things right the first time. She has a solid understanding of how to design websites that converts visitors into clients. Alia loves to write and share her insights so other can learn from her own experiences.
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Fast Food Business Plan Template
Business Plan Outline
- Fast Food Business Plan Home
- 1. Executive Summary
- 2. Company Overview
- 3. Industry Analysis
- 4. Customer Analysis
- 5. Competitive Analysis
- 6. Marketing Plan
- 7. Operations Plan
- 8. Management Team
- 9. Financial Plan
Fast Food Restaurant Business Plan & Template
You’ve come to the right place to create your fast food business plan.
We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their fast food businesses.
Below are links to each section of your fast food business plan template:
Next Section: Executive Summary >
Fast Food Business Plan FAQs
What is a fast food business plan.
A fast food business plan is a plan to start and/or grow your fast food restaurant. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your fast food business plan using our Fast Food Business Plan Template here .
What Are the Main Types of Fast Food Businesses?
There are many types of fast food businesses. The most common fast food restaurants serve hamburgers, fries, and soft drinks. Other common fast food establishments serve chicken, Chinese food, Mexican food, and pizza. There is a recent trend in fast food restaurants serving healthier options such as smoothies, wraps, sandwiches, and salads. A fast food restaurant can be centered around any food genre that is able to be prepared fast and in large quantities to serve multiple customers daily.
What Are the Main Sources of Revenue and Expenses for a Fast Food Business?
The primary source of revenue for a fast food restaurant are the food and drink items sold at the establishment.
The key expenses for a fast food restaurant are the costs to source the ingredients for the menu items, kitchen equipment and supplies, overhead expenses for the staff and rent, and any marketing costs the restaurant chooses to partake in.
What is the Difference Between a Franchise and Non-Franchise Fast Food Business?
A franchise fast food restaurant is a business that is owned and operated by someone who has a contract with a larger company. That company provides the products, training, and marketing for the smaller business. A non-franchise fast food restaurant is a business that is independently owned and operated.
Franchise fast-food restaurants have a set of guidelines and standards to which they must adhere in order to use the franchise name. Non-franchise fast food restaurants do not have these guidelines and can vary greatly in terms of quality, cleanliness, and customer service.
How Do You Get Funding for Your Fast Food Business?
Fast food businesses are most likely to receive funding from banks. Typically you will find a local bank and present your business plan to them. Another option for a fast food business is to obtain a small business loan. SBA loans are a popular option as they offer longer loan terms with lower interest rates. Outside investors, crowdfunding, and/or friends or family are other typical funding options.
What are the Steps To Start a Fast Food Business?
Starting a fast food business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Fast Food Business Plan - The first step in starting a business is to create a detailed fast food business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your fast food business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your fast food business is in compliance with local laws.
3. Register Your Fast Food Business - Once you have chosen a legal structure, the next step is to register your fast food business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your fast food business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Fast Food Equipment & Supplies - In order to start your fast food business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your fast food business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
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- 1. [email protected] Café Dine The Business Plan
- 2. [email protected] CAFÉ BUSINESS PLAN 1). INTRODUCTORY PAGE: i). NAME AND ADDRESS OF BUSINESS: Café Dine ADDRESS OF BUSINESS: Café Dine will be located in Preston University Plot No. 85, Street No. 3, Sector H-8/1, Islamabad ii). NAME AND ADDRESS OF PRINCIPLES: Mr. ABC House No. xxx, Street No. xxx, G-9/4, Isb. Ph: ******* Mob: *********** iii). NATURE OF BUSINESS: Café Dine will be a café which provides fast foods, Bakery items, and Beverages. iv). STATEMENT OF FINANCING NEEDED: Total project cost for setting up a café unit is estimated to be Rs. 5 Million. The total cost is composed of about 2 Million of capital cost, and 2 Million of working Capital cost v). STATEMENT OF CONFIDENTIALLY OF REPORT: The report is confidential and is the property of owner and all the content of plan should be used with permission.
- 3. [email protected] 2). EXECUTIVE SUMMARY: The Café Dine is a full-service fast food/cafe located in the Preston University H-8, Islamabad. The cafe features a full menu of moderately priced "comfort" food influenced by foreign cooking traditions, but based upon time honored recipes from around the world. The cafe section of The café Dine features a coffeehouse with a fast foods items, bakery items and beverages and students entertainment center. The café Dine is a sole proprietorship owned by Mr. ABC.This business plan offers financial institutions an opportunity to review our vision and strategic focus. It also provides a step-by-step plan for the business start-up, establishing favorable sales numbers, gross margin, and profitability. This plan includes details about the company, products and services, market focus, action plans and forecasts, management team, and financial plan.
- 4. [email protected] 3). INDUSTRY ANALYSIS: i). MACRO ENVIRONMENT: ECONOMY: It is no doubt peoples like fast food. And it’s not just us! The Golden Arches have spread across the globe, and emerging markets are one of the fastest growing areas in the industry. But the fast food industry is not without its challenges. From rising food costs, economic recession and changing perceptions about health, many fast food franchises have been feeling some heat. But rather than flee from this challenge, the fast food industry has been adopting new practices and offering new products. CULTURE: In Pakistan many big fast foods companies introduce their products line. Now people’s like to eat fast foods and we believe that we provide them quality and healthy foods at cheaper rates or low prices. TECHNOLOGY AND LEGAL: The fast food segment of franchising is competitive to be sure. But staying on top of technology and its emerging tools can provide a number of potential edges for those interested in getting involved in this segment. Of course some things will probably always require the human touch like adding just the right seasoning and ingredients or knowing just when to flip the burger. ii). SPECIFIC INDUSTRY ENVIRONMENT: The fast food business does not show signs of slowing down. With new innovations such as revolving chairs, daily updates, event organizing, Lcd’s etc, it should continue for some long time. FUTURE: Future of fast food in Pakistan is very bright. Quality of foods is the priority of majority of populations. Now many of the organizations provide their quality products to their customers through opening their franchises in multi areas. TRENDS IN INDUSTRY: In Pakistan, the fast food trend has entered mainstream. It has taken its roots from the American culture of fast food. Many multinational eateries like Mc Donald, Pizza Hut, KFC, Dunkin Donuts and Hardees have opened many branches all across Pakistan. These US fast food chains have tailored their menu to local tastes. An example of the same is Pizza Hut. Being an Italian based culinary, they have introduced many Pakistani type pizzas such as seekh kabab, chicken tikkah and chapli kebab. These are famous among Pakistani consumers, as the masses at large don’t have a taste for cheese pizza or veggie delight.
- 5. [email protected] GROWTH: McDonalds went public in 1965, selling its shares for $22.50: now its stocktrades around $90 a share. We have no indication of market growth in this pulverized and diffuse market. What we do know is that there is growth potential, and plenty of potential market for the right combination of service, quality and choice. COMPETITOR ANALYSIS: The fast food industry is highly fragmented and competitive. Each fast food industry within this field has low capital costs and low margins, which create this high intensity of competition. Suppliers have a great deal of power in setting and negotiating the prices of their products and services to the smaller eating establishments. There also exists a very high degree of rivalry among firms due to the perceived overcapacity in this field. The larger companies often have cost advantages due to economies of scale that allow them to out-compete smaller rivals. The barriers to entry and exit are very low in this industry. iii). MARKET SEGMENTATION SUMMARY: We have segment the market into three main markets: 1). University Students 2). Teachers 3). Admnistrative Staff TARGET MARKETS: Our target market will be Students, Workers and The Teachers or visitors.
- 6. [email protected] 4). DESCRIPTION OF VENTURES: OUR VISION STATEMENT: The creation of a unique & innovative environment that will differentiate from local café. OUR MISSION STATEMENT: To earn maximum satisfaction by providing quality and variety of food to our customer at reasonable price. Also to ensure that all guest and staff be treated with the respect and the dignity they deserve. OUR OBJECTIVES: Our primary objectives are: 1) Secure financing for start-up of at least Rs50,00,000. for space and equipment 2) Acquire equipment necessary for business 3) Make agreement with distributers. 4) Create a cozy, artist friendly environment. 5) Expand our business with multi market Such as universities, hospitals and multinational organizations etc. 6) A unique design of café that will be both visually attractive to customers, and designed for fast and efficient operations. 7) Marketing strategies aimed to build a solid base of loyal customers, as well as maximizing the sales of high margin products. OWNERSHIP: The café is a generally Sole Proprietorship business Name of Owner: MR. ABC LOCATION AND SIZE OF BUSINESS: We want to start our café in the Preston University Islamabad Campus. At initial stage it will be a small café and after settlement of this café we will expand our café with the available areas and operations. PRODUCT AND SERVICES: Description of product and services: The café will offer Fast Foods (Rice, Burger, Sandwiches, Wings, Roll paratha, Shawarma, Fries etc), Bakery (Fresh cakes, Fresh pastries, Brownies, Cookies etc), Frozen treats, Beverages (Fresh shakes & juices, Milk, Hot & cold coffee, Soft & Energy drinks, Hot & cold Tea). KEY FEATURES OF PRODUCTS AND SERVICES: All Fast Foods, Bakery, Frozen treats and Beverages items other then soft and energy drinks will produce in our own unit. Health friendly and quality of key ingredients (raw materials) will use for finishing process.
- 7. [email protected] All registered trademark soft & energy drinks will sold in our café. FUTURE PRODUCT AND SERVICE: Within the next 3 to 4 years we expand our branch out into catering and event organizer. COMPARATIVE ADVANTAGES IN PRODUCTION: Our quality of service at cheaper price will be the key to our success. OFFICE EQUIPMENT AND PERSONNEL: Our office equipment based on: Furniture Display Cases Coffee Machines & Water Boiler Blender, Juice Dispensers & Frozen Drink Machines Customer Kiosks Water Filtration Sinks & ice bins Café Crockery Café Cutlery Café Napkins & Table Covers Oven Fryer Grills, Griddles & Chargrills Microwaves Dishwashers Insect Control Café First Aid Shop Fridge Café Disposable Cups Our management criteria will be: General Manager Shift Supervisor / Teller Cook Assistant Cook Server
- 8. [email protected] OPERATIONAL PLAN: DESCRIPTION OF COMPANY OPERATION: We will have capacity to serve more than 200,000 customer per year with seating capacity of 48seats(12 Tables). Food will be served at a comfortable, well light and temperature controlled environment. As per the information provided 1200 sq. feet of tatal floor area is available for less than Rs. 100,000/- per month with an advance payment of Rs. 500,000/-. The café and washroom will construct at 60% of total area, while the rest will be used in the kitchen. Customer will place an order at the cash counter and will receive an order number after making payment. The order will be served within 10 minutes on the table where the customer are seated. The kitchen and the service staff will be dressed up in neat and clean uniform with disposable serving gloves. A high level of hygiene will be maintained at all times. MARKETNG PLAN: PRODUCT AND SERCE: The product will be fulfilling in its eatable content (Bally-full) The product will be served in a way that it will be easy and fast to consume without no oiling the hands The service level will be maintained to cater to customer needs discussed earlier The product will be unique in preparation and presentation Packaging as per fast food outlet standard i.e paper and plastic for on the go consumption PRICE: Competitive pricing with Tehzeeb and Rahat Bakery Pricing will also be use to align our market positioning with multinational fast food chains PROMOTION: Very appealing and registering outlet displays Distributing flyers in the targeted areas Promotional coupons at launch, off peak hours and holidays PLACEMENT: Outlet approachable with convenience Parking space available Within the main cluster areas of peer fast food restaurants Identifiable easily PEOPLE: Recruiting a staff that has an appropriate interpersonal skills to deliver customer services
- 9. [email protected] Recruiting cooking staff that can feel the pulse of the taste required by customers Cooking staff should be able to manage the kitchen and clean deliver quality in food with consistency PROCESS: Identify and develop procedures for all staff, as per their assigned scope of work Training of staff on the SOPs Ethical codes Hygiene codes Updates training to staff on a regular basis Rewarding based on clearly stated performance measures. PHYSICAL EVIDENCE: Nice and clean staff uniforms Easy to manage, sleek furniture and other fixtures Always clean, tile floors Maintaining high hygiene levels Temperature managed at a comfortable level in all seasons Bright and comfortable lighting Light background music Guerilla Marketing Techniques: Due to our Business type we will go with Guerilla Marketing Techniques: • Printed a tri-fold brochure that lets people know who we are, what we have to offer, and also gives them a few really good coupons to redeem • Weekly free offer for specific batch or class e.g. offering the MBA 4th free coffee for the first week of May • Lunch special discount offer for Preston’s staff between 1.00PM to 3.00 PM • Mugs printed with logo • Special offers display on Notice board • The ultimate competition. Offer students a freebie of our service (or a chance to win a prize) if they post our posters/logo up in the most interesting and visible place. Winners are those that place it the best position • Organize Workshops, seminars • T-shirt / P- caps Marketing. T-shirts with our cafe’s logo on it. Giving the T-Shirts with any sale of our product over a certain amount • Running a competition and making the prize a service we’ll perform. A great way to do this is on Facebook • Putting up a controversial Political slogan to get noticed • Offering free exhibition space on our premises to new companies • Trade marketing events: Get our suppliers to offer a workshop or educational lecture to our customers for free thus getting their collaboration
- 10. [email protected] • Flash mobbing and Crowd sourcing as advertising using our own staff as Cast or our own customers as a captive audience • For loyalty points system on our reward card e.g. we allows customers to collect stars with every purchase. Or award a badge for targeted buying activity and let customers qualify for the next level of rewards • The classic method “be the 100th customer today and win a free prize” and so on... • Create an on-line community e.g. Facebook, where we can interact with customers and occasionally offer certain online competition quizzes etc. ORGANIZATIONAL PLAN: FORM OF OWNERSHIP: Cafédine will be the Sole proprietorship business. IDENTFICATION OF CAPITAL: Owner CAPITAL Mr. ABC 10,00,000/- Obtain Loan 30,00,000/- We have four key executive members on staff: Goal: To have a competent and knowledgeable management staff which function as a team. General Manager: Qualification: The requirement of the position require three year experience in restaurant, atleast one of those year in some type of supervisory position. A Bachelor Degree in Hotel and Restaurant Management is preferable. Job Description: The General Manager will report directly to the owner. They will be responsible for overall management for the staff. They will work in conjunction with the owner in ordering supplies, maintaining inventory, handling customer complaints and scheduling staff. Other duties including ensuring staff coverage for all shifts and reports to the owner.
- 11. [email protected] Shift Supervisor/ Teller: Qualification: Must have two year experience in restaurant work. Have Bachelor Degree, At least one year as a server. They must be at least 25 years old. They must possess friendly and outgoing personality and have good personal hygiene. Job Description: They will be responsible for oversight of the server. They will work under the general manager. He is responsible for book keeping record, managing daily cash and overviewing inventory financial activity. Cook: Qualification: The cook must have minimum 5 year experience, three must be as a cook not as assistant. They must have a minimum high school diploma. The cook will submit a resume and fill out an application. They will be interviewed and hired by the owner and general manager. Description: The cook is responsible for cooking food serve in the café. They also responsible for preparing food item in advance and seeing that the service areas kept stocked. Their responsibilities is to see that the kitchen is kept in a clean, sanitary and working order. They oversee and trained the assistant cook. Assistant Cook: Qualification: The assistant cook must at a minimum have attending school or a training program. They must be at least 18 years of age. Will be required to submit an application. Will be interviewed and hired by the cook, General Manager or Owner. Description: The assistant cook is responsible for assisting the cook in his duties. He/ she is responsible for helping to keep the kitchen clean and sanitary. When needed will help with dishwashing duties. He/she is responsible for keeping the service area stocked. Server: Qualification: The server must have at a minimum attending school or a training program and one year experience in working in restaurant. They must be at least 21 years of age.
- 12. [email protected] Job Description: The customer area clean and sanitary. Take order from customer and fulfill their desires. They are responsible for helping the assistant cook keep the service area stocked. At the end of their shift, they will be required to complete all side work that assign. PERSONNEL PLAN: Cafedine will maintain the five people whom it currently employs. We are maintaining a small personnel staff, we are allowed a great deal of flexibility and we can communicate information smoothly and directly between each member when the need arises. PERSONNEL Salary (Rs.) General Manager 80,000 (pm) Shift Supervisor/Teller 50,000 (pm) Cook 50,000(pm) Assistant Cook 35,000(pm) Server: 30,000(pm) ASSESMENT OF RISK: SWOT ANALYSIS: The following SWOT analysis capture the key strength and weaknesses within think cafedine and allow us to examine the strength, weaknesses, opportunity and threats that’s lie before think cafedine.
- 13. [email protected] STRENGTH: WEAKNESSES: Cost Advantage Work Inefficiency Strong Management High Debt Burden Real Estate Out Dated Technology Price Power High Staff Turnover Innovative Culture Online Presence Financial Leverage Weak R&D Asset Leverage Weak Supply Chain Supply Chain Tarnished Reputation Size Advantage Bad Acquisition Economies of Scale Weak Management Unique Product Customer Service Technology Lack of Scale Customer Loyalty Cost Structure Brand Name Weak Brand OPPERTUNITIES: THREATS: Fragmented Market Bad Economy Financial Leverage Volatile Currencies Acquisition Synergies International Competition Online Market Mature Market Innovation Intense Competition New Service Government Regulations New Technology Change in taste Loosening Regulation Political Risk Emerging Market Volatile Cost New Products Volatile Revenue New Markets Substitute Products
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There are two options for you to start a fast-food startup in Pakistan. One is that you can offer the same kind of food these MNCs offer, like burgers, pizzas, rolls, etc. The other is that you can compete in an entirely different market by offering local cuisine, which can reap high rewards with additional risks.
Restaurant business in Pakistan is one of those businesses that capture a lot of interest and seeks passion. Opening a fast food joint or a multi-cuisine restaurant, both are lucrative business options in many aspects.
Below are links to each section of your fast food business plan template: 1. Executive Summary 2. Company Overview 3. Industry Analysis 4. Customer Analysis 5. Competitive Analysis 6. Marketing Plan 7. Operations Plan 8. Management Team 9. Financial Plan Next Section: Executive Summary > Fast Food Business Plan FAQs
The Fast Food Restaurant Market is a growing business in Pakistan relying heavily on the changing lifestyle patterns, population growth of the target age group and related to also increase in employment of women. With today's hectic lifestyles, time-saving products are increasingly in demand like the fast food restaurant.
To start the fast-food business following options can be considered according to current market trend (sorted with respect to investment size): Take away only kiosks are least expensive option available in which only counter and kitchen area are required to fulfill the take away orders.
Complete business plan 1. [email protected] Café Dine The Business Plan 2. 3. [email protected] 2). EXECUTIVE SUMMARY: The Café Dine is a full-service fast food/cafe located in the Preston University H-8, Islamabad.