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fast foods

Introduction
Fast food restaurant is one of the few businesses people know and have future and charm. As fast food
restaurants largely related to or depend upon customers, human factor cannot be ignores but these human
factors are difficult to systemize. Human factors are consist of economic, psychological, management,
technology and marketing techniques are grouped together to cover/access human characteristics.

Faisalabad is one of the developing cities of Pakistan. People are being socialized and culture in
improving. So to introduce the business of restaurants of high standard in Faisalabad is profitable.
Therefore we have decided to open a restaurant in the locality of Faisalabad and then expand to other
localities.

Paradise Fast foods are our Project which deals in Fast food products. The Project site is Jinnah Colony

Total Area is 15 Marla. The business will operate from 12.00 pm ---12 am. With dealing capacity of 120
people per unit time

Demand of Product
In the competitive environment profit is divided. But when we will produce quality product that would be
favorable, in this way demand of this product will create.

Pizzas = 400 (small =140rs, large= 350rs) M (98000) yearly (1176000)

Burger (large 310rs + Small 130rs) = 550 M (121000) yearly (1452000)

Shawarma = 110 (100rs) M (11000) yearly (132000)

Fries = 50 packets

Coke = 250ml (250ml x 1060units x 30rs) M(31800) yearly (381600)

Financing:
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Total finance comprises 2, 29, 54,000rs. With equity of 1, 00, 00,000rs, remaining 1,29,54,000rs with
75% long term and 25% short term debt.

Risk Factors and Trend of area:

Perishable: the biggest risk associated with this is the parish ability of food items.
Trend of the area reflect the business. It is of no worth when the product or resources are how good and
well rather it depends upon culture and trends in the area.

Government Policy: Government policy does affect the business so we should keep in mind the
policies of the government. In which ways the government is facilitating business and what are the
hurdles.

Structure of Management:
Once it is decided that we are getting into business the question arises that what is uncountable list of
occupations the point is what kind of business to be done. The answer to this question may be found
while considering following factors:

Machinery and Equipment

 Deep Freezers
 Air Conditioners
 Separate Stoves
 Cooking Range
 Electric generators
 Gas cylinders

Budget
Business should be planned keeping in mind the budget. It should be in a way so that maximum benefits
are to be achieved with minimum use of resources. Elements of risk and return cannot be ignored.

Consumer budget
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The entire package should be designed keeping in view the purchasing power and real income of the
consumer in mind.

Commencing the implementation of the plan

On 1st May 2011

Project cost total cost (RS)

(A)Fixed project cost

Land requirement (2canal)

(15 x 666666.67rs) 1,00,00,000

Building 90,00,000

Machinery 20,00,000

Furniture 25,00,000

Vehicles (5 x 44000) 2,20,000

Interior utility 2,50,000

Variable Costs:

Saleries Bills etc. (90,000 + 90,000) 1,80,000

inventory cost 1,75,000

Total Advertising Expense: 17,000

Total cost 2,43,42,000

Mean of financing:

Equity 1,00,00,000
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Debt

Short-term debt 97,15,500

Long-term 32,38,50

Total 2,29,54,000

PROJECTED BALANCE SHEET

Cash 70,900

Inventory 1,75,000

Long-term asset

Land 1,00,00,000

Building 90,00,000

Machinery 2,00,000

Furniture 25,00,000

Vehicles 2,20,000

Utility 2,50,000

Paintings, Swings,playland etc 538100

Total 2,29,54,000

LIABILITIES AND OWNER’S EQUITY

Short term debt 32,38,500

Owner’s equity 1,00,00,000

Total 2,29,54,000

PROJECTED INCOME STATEMENT

Less: COGS (1,75,000 x 12 ) 21,50,000

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Gross Profit 35549200

Operating Expenses :

saleries Expense (90,000 x12) 10,80,000

Gas/ petrol Expense 9,50,000

Home delivery expense 1,15,000

Operating profit 33404200

financial charges (9% at long, 5 % at short ) 1,036,320

Net profit /loss 3,23,67,880