Download - PFR Fast Food - Food Court

7/29/2019 PFR Fast Food - Food Court

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INDEX

S.No Topic Page

1 Introduction 2

2 Executive Summary 2-3

3 Organizational Hierarchy 4

4 Marketing Objective 5-6

5 Market Analysis 7

6 Market Strategy And marketing Mix 8-9

7 Sales strategy 10-12

8 Innovative Marketing Strategy 13

9 Break Even 14

10 Financial Analysis 15-1911. Economic Feasibility 20

12 Summary 21


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Introduction

Fast food is the term given to food that can be prepared and served very quickly. While any

meal with low preparation time can be considered to be fast food, typically the term refers to

food sold in a restaurant or store with low quality preparation and served to the customer in a

packaged form fortake-out/take-away.

Outlets may be stands orkiosks, which may provide no shelter or seating, orfast food restaurants

(also known as quick service restaurants). Franchise operations which are part of restaurant

chains have standardized foodstuffs shipped to each restaurant from central locations.

The capital requirements involved in opening up a fast food restaurant are relatively low.

Restaurants with much higher sit-in ratios, where customers tend to sit and have their orders

brought to them in a seemingly more upscale atmosphere may be known in some areas as fast

casual restaurants.

History

The concept of ready-cooked food for sale is closely connected with urban development. In

Ancient Romecities had street stands that sold bread and wine. A fixture ofEast Asian cities is

the noodle shop. Flatbread and falafel are today ubiquitous in the Middle East. PopularIndian

fast food dishes include vada pav, panipuri and dahi vada. In the French-speaking nations of

West Africa,roadside stands in and around the larger cities continue to sellas they have done

for generationsa range of ready-to-eat, char-grilled meat sticks known locally as brochettes.
http://en.wikipedia.org/wiki/Restauranthttp://en.wikipedia.org/wiki/Take-outhttp://en.wikipedia.org/wiki/Kioskhttp://en.wikipedia.org/wiki/Fast_food_restauranthttp://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Chain_storehttp://en.wikipedia.org/wiki/Chain_storehttp://en.wikipedia.org/wiki/Capital_(economics)http://en.wikipedia.org/wiki/Fast_casual_restauranthttp://en.wikipedia.org/wiki/Fast_casual_restauranthttp://en.wikipedia.org/wiki/Ancient_Romehttp://en.wikipedia.org/wiki/Ancient_Romehttp://en.wikipedia.org/wiki/East_Asiahttp://en.wikipedia.org/wiki/Noodlehttp://en.wikipedia.org/wiki/Flatbreadhttp://en.wikipedia.org/wiki/Falafelhttp://en.wikipedia.org/wiki/Middle_Easthttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Vada_pavhttp://en.wikipedia.org/wiki/Panipurihttp://en.wikipedia.org/wiki/Panipurihttp://en.wikipedia.org/wiki/Dahi_vadahttp://en.wikipedia.org/wiki/Dahi_vadahttp://en.wikipedia.org/wiki/West_Africahttp://en.wikipedia.org/wiki/Street_foodhttp://en.wikipedia.org/wiki/Street_foodhttp://en.wikipedia.org/wiki/Brochettehttp://en.wikipedia.org/wiki/Brochettehttp://en.wikipedia.org/wiki/Restauranthttp://en.wikipedia.org/wiki/Take-outhttp://en.wikipedia.org/wiki/Kioskhttp://en.wikipedia.org/wiki/Fast_food_restauranthttp://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Chain_storehttp://en.wikipedia.org/wiki/Chain_storehttp://en.wikipedia.org/wiki/Capital_(economics)http://en.wikipedia.org/wiki/Fast_casual_restauranthttp://en.wikipedia.org/wiki/Fast_casual_restauranthttp://en.wikipedia.org/wiki/Ancient_Romehttp://en.wikipedia.org/wiki/East_Asiahttp://en.wikipedia.org/wiki/Noodlehttp://en.wikipedia.org/wiki/Flatbreadhttp://en.wikipedia.org/wiki/Falafelhttp://en.wikipedia.org/wiki/Middle_Easthttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Vada_pavhttp://en.wikipedia.org/wiki/Panipurihttp://en.wikipedia.org/wiki/Dahi_vadahttp://en.wikipedia.org/wiki/West_Africahttp://en.wikipedia.org/wiki/Street_foodhttp://en.wikipedia.org/wiki/Brochette


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INTRODUCTION

BUSINESS PLAN: (FAST FOOD RESTAURANT )

WE ARE PLANNING TO SET UP A FAST FOOD RESTAURANT IN NEW DELHIWHICH OFFERS DEEP ASSORTMENT OF TRADITIONAL VARIETY OF CUISINES

AVAILABLE IN VARIOUS PARTS OF COUNTRY UNDER ONE ROOF.

EXECUTIVE SUMMARY:

We will be starting novel concept of Fast food Restaurant in New Delhi.

We have chosen to enter particularly to restaurant segment because as per BIRD OF

GOLD report by McKinsey Global Institute Indian middle class household will swell

from 50million to 583 million by 2025.Implies household have more disposable income

and shift towards discretion spending.

Restaurant

As per CII estimate 2009 because of increase of rising per capital income Food industry

will grow to US$310 billion by 2015.

Food Industry is growing at the rate of 13% estimate CSO (Central Statistical

Organization)

Thus there is a huge market potential and no player has tried to offer this concept of serving

variety of regional tastes under one roof. This place will provide a traditional taste and traditional

environment means ambience of particular Fast food Restaurant will resemble to that of the


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place from which it belongs, e.g. (Punjab with vibrant surrounding representing euphoria feeling,

Kerala with majestic and natural beauty of beaches and high tech global standard facilities). Its

a unique combination in its own concept. After enough market research, we have found that

people miss food from their native places. They want a place where they can enjoy their native

place food. The Fast food Restaurant is all about catering to need of these types of customers.

We will acquire half acre of land strategically located to be easily accessible for the customers

residing in New Delhi.

Total estimated cost of land is around Rs. 2.5 Crores (at Rs. 1150/- per Sq. Ft.).Construction Cost

Rs. 2 Crores which utilizes 10000Sq. Ft. of area (at Rs 2000per sq Ft.) .Remaining space would

be used properly to present landscape beauty and to engage children for entertainment. Initial

project cost would be Rs 5 Crore. Contribution by Promoters will be Rs. 1 crore and Bank loan

of Rs. 4 crore. We will be repaying loan with an EMI of approximately Rs nine lakhs per

month .The loan would be repaid over five years period. We will be able to breakeven in 3 years

of time.

ORGANIZATIONAL HIERARCHY

There will be 3 Functional heads for this firm who will be handling various managerial

positions.

They will be responsible for managerial decision making.

For day to day working several staff will be hired on monthly salary for various positions

which include from sweeper, to clean boy, to cook, to accountant, to assistant manager, to

a head for the Fast food Restaurant supervision.

We plan to hire roughly 10 Assistant manager, 20 cooks, 40 assistant workers to cook, 50

other helper boys for cleaning and taking order and for service.


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Vision:

To constantly innovate & provide the best that we can for our customers

To be recognized as pioneers in the multi-brand Fast food Restaurant management,

utilizing the highest levels of corporate & with dedicated employees and partners

Mission:

To provide integrated food management support and solutions for our partners

So that every customer gets highest level of food quality & outstanding service in a hygienic

& fun dining environment


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MARKETING OBJECTIVE

To achieve annual growth sale of 25%on yearly basis.

To form strategic Alliance with, Haldiram because we are sensitive to diverse

need of customer.

To become Market leader in New Delhi.

SWOT ANALYSIS:

STRENGTH

Location: - Our Fast food Restaurant will be placed in such an area which can

be easily accessible from all part of .

Experienced staff: - Our hired expertise staff helps us in providing quality food

service to our customer. Ambience of place: - The feeling of being in their native place while dinning is

itself a pleasure experience which gives us an advantage over others.

WEAKNESS

Lack of experience: Fast food Restaurant is a start up and the odds are laced

against it. Will face stiff competition from local players.

Financing: - Preliminary estimates of sales and expenditures suggest that it will

remain financially stable. However unforeseen expenditure or poor sales will

threaten cash position, which will be particularly vulnerable in one year.


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Limited personnel: - Since we need expertise staff and to find and retain it is

very difficult because of the competition in the market.

Opportunities:-

Growing market: - restaurants market is growing at a fast speed and demand for

quality food is never ending.

Potential to become a premier food provider: - because of the experienced and

expertise staff we can deliver quality food products. Also the use of technology

like Surface technology on table makes it quite innovative and a new experience.

THREATS

Local Competition (existing and potential): There are firms which specialize in

this concept of Fast food Restaurant . Also local players are a threat to our

business since they are also competing for the same market share.

Economic downturn: The strong domestic economy has been good for the Food

and hospitality industry. Continued growth is anticipated. however, unforeseen or

unanticipated economic recession would reduce disposable income and threaten

our Fast food Restaurant sales.


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MARKETING STRATEGY AND MARKETING MIX

PRODUCT MIX

Product: We offer deep assortment of traditional food from different

Regions of country under one roof .We will offer global standard services and rich ambience.

PRICING STRATEGIES:

Price: We will be using VALUE PRICING STRATEGY offering just right combination of

quality and good services at fair prices.

Product bundle pricing:

We will combine several products and offer bundle price at reduced price e.g., we will offer

special Flavor Thali meal at reduce price.

FLAVOUR OF INDIA itself is a Fast food Restaurant and has more than 15 food brands under

its umbrella that offers a perfect cuisine-mix with an array of food variety to its customers! The

brands may be as follows:


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Price:

One or two products in each section will be kept at low price to attract the customer .The product

whose price is reduced should be price elastic to pull the customer toward the Fast food

Restaurant .

Place: Our main focus is to pull crowd to Fast food Restaurant by running promotional

campaigns. Other strategy is to focus on home delivery and corporate customers with the

effective use of information system to reduce the timing for logistics.

Promotion: We will be using Integrated Marketing Communication which will help Fast food

Restaurant to develop a consistent, clear and compelling message which will be in sync with

Fast food Restaurant positioning strategy.

Promotional opportunity:

As with robust growth of economy per capita income is increasing and more shift is toward

discretion spending. Thus offering great opportunity to promote our concept to target audience.

We will be giving important consideration for spending on promotional budget.

Objective of Promotion:


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To ensure awareness, knowledge about the Fast food Restaurant concept to target

customer.

Next stage is to use promotional strategies to develop liking, preference and conviction

for the concept.

Last stage is to develop conviction and purchase for the selected target customer.

Promotional Strategies:

1st Stage

To ensure awareness and knowledge among target customer. We will be

Using Buzz Marketing (attracting opinion leaders) and word of mouth publicity

Advertisement through local media network (cable, newspaper, and magazine).

Participating in food fest and organizing food fest competition.

Using SUBLIMINAL advertisement strategy in cinema hall to develop awareness of

product.

2nd stage of strategy:

Using direct marketing concept to reach selected customers via E-mail.

Organizing cultural event every weekend to pull crowd to Fast food Restaurant

and develop liking and preference for the place.

With the application of data base management system tracking customer

purchase, frequency and preference to build customer loyalty program.

Positioning Message:

Our positioning message from every channel of media vehicle is going to promote

traditional Food with deep assortment and global standard service.

Evaluation: Implement consumer feed back survey to selected target consumer to check

success of IMC campaign on parameter like Branding, Image, and Positioning after three

month of promotional activities.

Budget: Budget would be Rs 19.2lac per year.


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SALES STRATEGIES

To generate majority of revenue for Fast food Restaurant by pulling customer to

Fast food Restaurant location.

TO target corporate office in the town and offering them special corporate prices.

To target carefully selected customer through DIRECT MARKETING using E-

mail for better generation of revenue from Home delivery business.

INNOVATIVE MARKETING STRATEGIES

Application of information system(Microsoft surface Technology Computers)


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In maintaining customer database on parameters like Amount of purchase, frequency,

preference etc.All this activity help us to build loyalty program with profitable customer.

We will be using Microsoft latest surface technology computers with which customer

will just have to put menu on surface of computer and will get all information regarding

cuisine of his liking .This will substitute waiter role and help in cost reduction. Not only

this they can pay bill by using their credit/debit card just moving card over surface of

item order that display on computer surface screen.

To greet Loyal customers on special occasions (marriage anniversary, birthday

anniversery).

STRATEGIC ALLIANCE:

1 Form strategic Alliance with Sweet Chariot, Haldiram. is would

help us to cater diverse need of our target customer .In addition we will be taking rent from them

which will contribute to our miscellaneous revenue.

2. PROMOTINAL STRATEGY:

Installing kiosk in busy place like railway station ,majestic bus stand, advertising about Fastfood Restaurant and help any consumer to download song free of cost, access tourist places in

New Delhi, famous goods produce in New Delhi .one option on the site provide wealth of

information about assortment of product available with Fast food Restaurant .

3. Setting up web 2.0 website which offers advantage better than web 1.0website.Customer can

interact with site, provide their feed back and write blog about their experience in Fast food

Restaurant . We can use this site to offer wealth of information about nutrient content of our

products.

4. We will organize cultural programme every week to pull crowd towards Fast food Restaurant .

We will be spending Rs 40,000 per month on this activity.


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BREAK EVEN ANALYSIS


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We plan to break even within a period of three years, though we plan to repay our loan in a

period of 5 yrs.

Fixed cost of investment is Rs 4.5 cr that we have spent on building and land.

We will break even at a Revenue of Rs 21.8 Cr


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FINANCIAL ANALYSIS

Year - 2009

(All Figures in Rs)

Cash Account

Revenue

To Capital 10000000

To Loan from

Bank 40000000

To Cash Sales 60000000

Total

11000000

0

Expenses

By land andBuilding 45000000

By Purchase 18000000

By Equipment 3800000

Salary 9000000

Electri 4000000

Insurance 500000

Consultancy Fee 100000

Stationary 50000

Legal 10000

Other Expense 440000By Interest 4800000

By Tax 5984748

By Repayment of

Loan 5877292

By Advertisement 1920000

By Balance 10417960

Total 110000000


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Profit and Loss Account

To

Depreciation 2000000

To other

Expense 15500000

To purchase 18000000

To Interest 4800000

To

Advertisement 1920000

To tax 5984748

To Net Profit 11795252

Total 60000000

By Sales

6000000

0

Total

6000000

0


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Balance sheet

Liability

To Capital 10000000

Loan

4000000

0

Loan Repaid 5877292

Loan to be Paid 34122708

Profit 11795252

Total 55917960

Asset

Land

2500000

0

Building after

Depreciation

1800000

0

Cash

1041796

0

Equipment 2500000

Total

5591796

0

Cash Flow Statement


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Cash Flow from operating

activities

Paid to Suppliers(Purchase)

-

18000000

Paid to office Expenses-15500000

Paid for Advertising 1920000

Sales 60000000

Tax -5984748 18595252

Cash flow from Investing

Activities

Land and Building

-

45000000

Equipment 25000000

-

47500000

Cash flow from financing

activities

Share Capital 10000000

Loan 40000000

Interest -4800000

Repayment of Loan -5877292 39322708

Net Cash 10417960


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Other Expense 475200

By Repayment of

Loan 7158567

By Interest 3518725

By Tax 12661723

By Advertisement 1920000

By Balance 18418945

Total 82417960

Profit and Loss Account

To

Depreciation 2000000To other

Expense 16740000

To purchase 22000000

To Interest 3518725

To

Advertisement 1920000

To tax 12661723

To Net Profit 249954804

Total 83795252

By Sales

7200000

0

By Profit B/D

1179525

2

Total

8379525

2

Balance Sheet


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Liability

To Capital

1000000

0

Loan34122708

Loan Repaid 7158567

Loan to be Paid

2696414

1

Profit

2495480

4

Total

6191894

5

Asset Land 25000000

Building after

Depreciation 16000000

Cash 18418945

Equipment 2500000

Total 61918945


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preference of store

0

10

20

30

40

50

60

Brand image Easy accessibility Special offer

Interpretation:-

From the above table and graph, it says that majority of the customers (i.e. 50%) prefer special

offers in the store and minority of them (i.e. 29%) prefer easy accessibility

4) Visiting hours

Frequency

Morning 40

Afternoon 29

Evening 31

Total 100

0

5

10

15

20

25

30

35

40

45

Morning Afternoon Evening


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Interpretation:-

From the above table and graph it says that majority of the customers (i.e. 44%) of them are

neutral to prefer the store for friendliness of staff and minority of them (i.e. 40% ) of them agree

that they will prefer the store for friendliness of staff

6) Preference of store due the variety of menu available in the store

Response Frequency

Strongly Disagree5

Disagree15

Neutral21

Agree 39

Strongly agree 15

Total 100

preference due to variety of menu

0

5

10

15

20

25

30

35

40

45

Strongly agree Disagree Neutral Agree Strongly agree

Interpretation


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9) Preference of store due to the cleanliness and store atmosphere

Response Frequency

Strongly disagree 2

Disagree7

Neutral25

Agree 40

Strongly agree 26

Total 100

preference due to ambience

0

5

10

15

20

25

30

35

40

45

Strongly disagree Disagree Neutral Agree Strongly agree

Interpretation:

From the above table and graph it says that majority of the customers (i.e. 40% ) of them agree

that they will prefer the store for ambience provided in the store

10) Preference store due the delivery speed offer by the store


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Response Frequency

Strongly disagree4

Disagree

20Neutral

15

Agree 41

Strongly agree 20

Total 100

preference due to delivary speed

0

5

10

15

20

25

30

35

40

45


Interpretation:-

From the above table and graph it says that majority of the customers (i.e. 41%) of them prefer

the store due to delivery speed that is offered

11) Satisfaction with the menu offer for my family

Response Frequency

Strongly disagree7

Disagree16


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Neutral41

Agree 14

Strongly agree 14

Total 100

preference due to facilites

0

5

10

15

20

25

30

35

40

45


Interpretation:-

From the above table and graph it says that majority of the customers (i.e. 41% ) of them saysthat they are neutral about preferring the store due to the facilities

13) Preference of store due to easy accessibility and locational advantage

Response Frequency

Strongly disagree4

Disagree18

Neutral15


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Agree 45

Strongly agree 15

Total 100

0

5

10

15

20

25

30

35

40

45

50


Interpretation:-

From the above table and graph it says that majority of the customers (i.e. 45%) of them agree

that they will prefer the store due to easy accessibility and locational advantage

14) advertising strategy

Response Frequency

Strongly disagree 9

Disagree20

Neutral33

Agree 28


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Strongly agree 10

Total 100

0

5

10

15

20

25

30

35


Interpretation:-

From the above table and graph it says that majority of the customers (i.e. 33%) of them are

neutral about the advertising strategy provided by the store and followed by that customers agree

the store for the advertising strategy

15) preference of store due to special offer and discounts

Response Frequency

Strongly disagree 4

Disagree20

Neutral15

Agree 41


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Strongly agree 20

Total 100

0

5

10

15

20

25

30

35

40

45


Interpretation:-

From the above table and graph it says that majority of the customers (i.e. 41% ) agree that they

will prefer the store because of special offers and discounts.

Major Findings

This study indicates that majority of the customers visit the fast food retail store weekly

(i.e. 38%) and minority of them (19%) visit fortnightly

This study indicates that majority of the customers are willing to spend money of price

range 200-500 (i.e. 60%) and minority of them says that they will spend money of price

range 100-200 (i.e. 24%) in the fast food retail store

This study indicates that majority of the customers (i.e. 50%) prefer special offers in the

store and minority of them (i.e. 29%) prefer easy accessibility

This study indicates that majority of the customers (i.e. 44%) of them are neutral to prefer

the store for friendliness of staff and minority of them (i.e. 40% ) of them agree that they

will prefer the store for friendliness of staff


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This study indicates that majority of the customers ( i.e. 39%) of them agree that they will

prefer the store due to the variety of menu and minority of them (i.e. 21% ) of them

neutral about the variety of menu in the store

This study indicates that majority of the customers (i.e. 33%) of them disagree that they

will prefer the store due to the calorie content in the food and minority of them (i.e.

31%) agree that they will prefer the store due to the calorie content in the food

This study says that majority of the customers (i.e. 40% ) of them agree that they will

prefer the store for ambience provided in the store

This study says that majority of the customers (i.e. 35% ) of them agree that they are

satisfied with the menu that was offered in the fast food store and followed by some of

them are neutral about the menu for their family

This study indicates that majority of the customers (i.e. 45%) of them agree that they will

prefer the store due to easy accessibility and locational advantage

This study indicates that majority of the customers (i.e. 33%) of them are neutral about

the advertising strategy provided by the store and followed by that customers agree the

store for the advertising strategy

This study indicates that majority of the customers (i.e. 41% ) agree that they will prefer

the store because of special offers and discounts.

MAJOR IMPLEMENTATION

As majority of customers (38 percent) visit the store weekly especially weekends. So it is

suggest to stores give special offers and discounts to capture more customers and retain

loyal customers.

As study refers more customers are looking for the special offers ,so it suggest stores to

more concentrate on the special offers but no compromise in the quality of food.

It is found that majority of customers are not fully satisfied with the friendliness of staff.So it is suggest that the stores should conduct soft skill training and make them give more

customer service .Regular monitoring of the staff behavior towards customers is also

suggest here.

Customers are happy with the MENU verities available in the stores .But it is suggested

that add more customized menu and review the menu for every 3 months.


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As study shows that customers are not aware of the calorie contents exist in the food. So

it is suggest that stores should display the calorie contents available in a particular food.

It is suggest the stores to concentrate on the areas of ambience and locational strategy.

Advertising strategy of the stores are not making attention the customers .So it is suggest

the stores to think of the design of different innovative advertising campaigns.

Download - PFR Fast Food - Food Court

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