A project on Thai Restaurant

Submitted To

Miss Zoofishan

Submitted By

Arfaat Hummayon (MC15029)

Aansa Randhawa (MC15001)

Sumbal Gulzar (MC15041)

Mariam Yaqoob (MC15003)

Acknowledgement

We pay our humble gratitude with humility and submission, to Allah, the Almighty, The Omniscient, The Omnipotent and the Omnipresent Who

bestowed our potential to accomplish this task. Any accomplishment requires the efforts of many people and this work is not different. We thank Prof.

Zoofishan our guide whose patience and support was instrumental in accomplishing this task.

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ContentsIntroduction.........................................................................................................................................5

Executive summary..............................................................................................................................6

Environment & Industry Analysis.........................................................................................................7

Production plan..................................................................................................................................15

Marketing plan...................................................................................................................................16

Organizational Plan............................................................................................................................19

Operational Plan................................................................................................................................24

Financial Plan.....................................................................................................................................26

Future Planning..................................................................................................................................34

Risk assessment.................................................................................................................................35

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Introduction

Brief SummaryWe are going to introduce Thai food restaurant in Gujranwala. We will offer quality and diet

food to Gujranwalians in the form of Thai food. As we are the first ones to introduce it in GRW

so we have to face many challenges. Our aim will also be to develop a taste of Thai food in the

people of GRW.

Name of BusinessThe name of our restaurant will be “Aroi Mak”. Aroi is a Thai word which means “delicious”

and if someone really enjoys food then it becomes Aroi Mak.

Type of BusinessThis business will be a “partnership business” in which there will be four partners. When it will

be grown enough and the branches will be increased then number of partners can be increased

Nature of BusinessOur business will be of “services” nature rather than of manufacturing. Because we will offer

delicious and diet food to our value able customers.

Initial CapitalThe amount which is required for startup of business is Rs.50, 00,000.

PurposeOur purpose of introducing Thai Food in GRW is to offer and provide low fats, low calories,

quality and healthy food to our value able customers.

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Executive summaryBusiness have potential of growth if the number and variety of dishes are increased according to

the taste of people.

In external factors this business have also potential of growth by increasing the number of outlets

or branches in one city and then in one country.

When the number of branches will be increased we will offer people to invest in the new

branches. The persons who have already invested in some other restaurants can take interest to

invest in our business. Moreover, the owners of marriage halls can also invest in new branches

because they have already experience in such type of business.

This business has high potential of growth. Because it can be grown by increasing the dishes

range. And also by expanding this business in the form of increasing branches in one city then in

one country and then in different countries (making it multinational).

For getting information for starting of this business the mangers of different Thai restaurants

were contacted like of Opium and Pallilos. From the people of different colonies information

was gathered about whether they “like” or “will like” thai food if it is brought in GRW. Most of

the people gave positive response. Because in present era people want to be healthy and fit but

also want to eat delicious food. In thai food both of these needs are fulfilled.

According to Pakistan Hotels and Restaurants Act, 1976 this business is fully allowed by the

govt. and by the law as well. There are no restrictions for opening of it. The whole food which

will be offered will be Halal food.

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Environment & Industry AnalysisIn Pakistan restaurants are having a great business. In Gujranwala there is no Thai Food

restaurant so, the people who like this food have to go to Lahore. We contacted Opium restaurant

and they told us that 40% of their customers come from GRW. So, there was a need to introduce

it in Gujranwala for the convenience of people. As far as industry is concerned this business

earns a great profit. Because now a day’s people like to eat food in restaurants in comfortable

and pleasant environment so, the number of customers is large. And the payments are made on

the spot.

Business Description Introduction of business                              The name of our restaurant is ‘Aroi mak’ which is unique to Gujranwala city.

The restaurant features are providing THAI FOOD, offering multiple dining and entertainment

facilities within a single establishment. The spatial and menu division will broaden our appeal

and provide our customer with a different experience on each visit.

                                   The atmosphere attracts to a young but adult mature crowd. This is not

only a family establishment. Total space requirements are 3000 square feet.in total the restaurant

will provide seating for 110 patrons. Where possible consideration will be given to incorporate a

dining patio, zoning, parking, and accessibility issues will be reviewed as key criteria.

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Our vision statement                        “Our vision is to be the best Thai food provider in Pakistan”

Our mission statement:Our mission is to launch a Thai restaurant and cuisine food

restaurant that will facilitate the people to enjoy the foreign food within their own city/country without facing travelling expenses.

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Company Ownership:           The business is a partnership of 4 members. There credentials are given below.

Aansa Randhawa.

Arfaat hammayon

Mariam Yaqoob

Sumbal Gulzar.

Business philosophy           Our business is to provide services to the customers according to their need and wants.

Legal status:The legal status of our business as follows:

It is a registered partnership firm consisting of 4 members.

Nature of the business is partnership.

Profits and losses will be divided equally.

All partners will have rights and share according to their invested capital.

Legal issues and requirementsAccording to restaurant registration and taxation law in Pakistan. For opening the restaurant

apply to the controller for registration. After getting the registration license must be obtained

from the controller. The license will remain in force only in one year and is renewable a very

year after the payment of prescribed government fee.

Location analysisSatellite town is the location selected for our restaurant. The outlook for the future of ARIOS

MAK is exceptionally positive and the most progressive development area in the city.in this area

we have plan of leasing an old property for the construction of our restaurant. The market has

been carefully selected for the necessary demographics and retail traffic necessary to meet the

goals laid down for profitability. The busy midtown commercial/residential location has been

chosen on the basis upon a successful demographic model.

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Restaurant designSingle level design concept: The total space requirement is 3000 square feet. The restaurant will

feature a comfortable and open concept design according to the Thailand atmosphere making the

customer feel like as they are sitting in Thailand

The central dining area will allocate 76 seats, the lounge 32 seats, and. in total the restaurant is

providing seating to 110 customers. Where possible consideration is given ti incorporate a dining

patio, zoning, parking and accessibility issues are also reviewed as part of this analysis.

Optional patio During the busy summer months customers can also sit outside on our patio and we will offer a

special summer meneu. The patio setting will be a fun and casual atmosphere for the summer

crowd.

Operating criteria:                    The restaurant is located in satellite town. The restaurant service is lunch, dinner,

and after-hours dining during the week and weekends. The restaurant will operate during peak

service time to take advantage of street traffic and after-hour patronage from the entertainment

facilities in the area. Services will be available during the following hours:

Lunch: 11:am - 2:30 p.m

Dinner: 5:30 - midnight

Note: After hours services are also available.

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ServicesAroi mak will is feature international thai and cuisine dishes and superior services. Our food will

be of finest quality and prepared with exotic flavors. Customer’s satisfaction is the driving force

behind our success. We will change our menu every 4 months, but remain the favorites for loyal

customers. Dishes will be modestly sized, garnished with stunning presentation

           The kitchen staff will have the best culinary education and work experience. The creative

talents will complement one another. The lounge and restaurant staff will offer the finest services

in an electric atmosphere and offer customer an extraordinary dining experience.

Hiring of Chef and EmployeesFor chef facilities we have contacted with Chef Tariq Sadiq. He previously works in Geneva and

has also done diploma in Thai Cuisine. Now he is in Lahore and working in Palilos Thai

restaurant. We offer him an attractive salary of 38000 plus facilities and he promised us to

serve in our restaurant. Chef helpers are arranged from Gujranwala on an attractive salary of

7000 per worker we have an estimate of two chef helpers in our restaurant.

Initially we will have three waiter in our restaurant to serve food costing 7000 per person. We

will have one security guard hired for a package of 7000

IngredientsThai food is known for its enthusiastic use of fresh (rather than dried) herbs and spices.

Common flavors in Thai food come from garlic, galangal, coriander/cilantro, lemon grass,

shallots, pepper, kaffir lime leaves, shrimp paste, fish sauce, and chilies. Palm sugar, made

from the sap of certain Borassus palms, is used to sweeten dishes while lime and tamarind

contribute sour notes. Meats used in Thai cuisine are usually pork and chicken, and also beef,

and water buffalo. Goat and mutton are rarely eaten except by Muslim Thais

Aroi mak’s menue:           Chuchi pla kaphong - snapper in chuchi curry sauce (thick red curry sauce)

Kai phat khing - chicken stir fried with sliced ginger.

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Kaeng khiao wan - called "green curry" in English, it is a coconut curry made with fresh

green chillies and flavoured with Thai basil, and chicken or fish meatballs. This dish can

be one of the spiciest of Thai curries.

Ho mok pla - a pâté or soufflé of fish, spices, coconut milk and egg, steamed in a banana

leaf cup and topped with thick coconut cream before serving.

Kaeng phanaeng - a mild creamy coconut curry with beef (phanaeng nuea), chicken, or

pork. It includes some roasted dried spices similar to kaeng matsaman.

Kaeng phet (lit. 'spicy curry') - also known as red curry in English, it is a coconut curry

made with copious amounts of dried red chillies in the curry paste.

Kaeng som - a hot and sour soup/curry usually eaten together with rice

Kai phat met mamuang himmaphan - The Thai Chinese version of the Sichuan style

chicken with cashews known as kung Pao chicken, fried with whole dried chilies.

Miang kham - dried shrimp and other ingredients wrapped in cha plu leaves; often eaten

as a snack or a starter.

Phak bung fai daeng - stir fried morning glory with yellow bean paste.

Phat khana mu krop - khana (gailan) stir fried with crispy pork.

Phat kaphrao - beef, pork, prawns, or chicken stir fried with Thai holy basil, chillies,

garlic, and soy sauce; for instance mu phat kaphrao /kaphrao mu with minced pork.

Phat phak ruam - stir fried combination of vegetables depending on availability and

preference.

Phat phrik - often eaten as nuea phat phrik: beef stir fried with chilli.

Pla nueng manao - steamed fish with a spicy lime juice dressing.

Pla sam rot – literally, "three flavours fish": deep fried fish with a sweet, tangy and spicy

tamarind sauce.

Meneu for sweets and desserts:

Chaokuai - grass jelly is often served with only shaved ice and brown sugar.

Kanom khrok - coconut-rice pancakes, one of the ancient Thai desserts

Khao tom mat - a traditional Thai dessert prepared from sticky rice, coconut milk, and

banana.

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Khanom bua loi – mashed taro root and pumpkin are mixed with rice flour into small

balls, boiled and then served in coconut milk.

Khanom chan – multi-layers of pandanus-flavoured sticky rice flour mixed with coconut

milk. It is the one of The 9 auspicious Thai desserts.

Khanom mo kaeng - a sweet baked pudding containing coconut milk, eggs, palm sugar

and flour, sprinkled with sweet fried onions.

Khanom tan – palm flavored mini cake with shredded coconut on top.

Khanom thuai talai - steamed sweet coconut jelly and cream.

Khao lam - A cake made from steamed rice mixed with beans or peas, grated coconut

and coconut milk.

Cost of DishesOn the average the cost of dishes which we offer lie between the range of 400 to 500 PKR

Price of DishesOn the average dish prices ranged between 1000 to 2000 PKR and they are mostly served in the

quantity that can be enjoyed by 4-5 person.

Future servicesWe will expand our business by introducing the other kind of foreign food i.e. Indian, Chinese

wide range of Italian food or any other kind of food after getting suggestions from our

customers. We will also expand our restaurant in future by offering Ramadan buffet to our

customers. We will have membership facilities to our valuable customers. We will have an

attractive deals in futures. Moreover, we have a plan to move into other food cuisines and

marriage and banquet hall.

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Our SpecialtyOur specialty is definitely a Thai food. We think our specialty is sea Food that comes in the form

of Thai. We have different kind of dishes made from Prawns and fishes. And in thai soup we

have the specialty of Schezwan soup.

Customer SegmentationArio mak intends to attract a wider range of customers. We want everyone to feel welcome and

entertain. We have defined the following groups as targeted segments:

The business persons

Destination customers

Tourists

Youth

Personnel data: We believe that the personal is in good proportion to the size of restaurant. The staff will include

16 full time employees

Management  Investor research manager                      Aansa randhawa

Operation and marketing manager         Arfaat hamayon

Financial manager                                  Mariam yaqoob

Business development manager            Sumbal gulzar

Kitchen The executives chief will be assisted by:

Chief Tariq Saddique highly educated and expert thai food

Cooks that works directly with the chief

Prep cooks/dishwashers

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Production plan

Aroi mak restaurant is providing thai and cuisine food to satisfy the customers’ needs for it. For

that purpose we have the following production process.

Purchase of Raw MaterialsOur restaurant is a place where we cook not food but quality food. In order to maintain quality in

our food we have to check the quality of raw materials that we are using. We have to use several

type of raw material ranging from spices, Sea food, Meat, Chicken and vegetables. As far as

Spices and vegetables are concerned they are arranged from Gujranwala market. Meat is

arranged from local butcher market and enduring the quality. Quality chicken is availed from

K&N’s chicken company. Sea food is first of all purchased from hyper star Lahore then in

case of increases supply we have the plan to import sea food.

Ingredients requireThai food is known for its enthusiastic use of fresh (rather than dried) herbs and spices.

Common flavors in Thai food come from garlic, galangal, coriander/cilantro, lemon grass,

shallots, pepper, kaffir lime leaves, shrimp paste, fish sauce, and chilies. Palm sugar, made

from the sap of certain Borassus palms, is used to sweeten dishes while lime and tamarind

contribute sour notes. Meats used in Thai cuisine are usually pork and chicken, and also beef,

and water buffalo. Goat and mutton are rarely eaten except by Muslim Thai

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Marketing planMarketing plan is to make decision about 5 p’s of marketing which are:

Product

Price

Place

Promotion

People

Product/serviceWe are going to introduce a thai restaurant named as Aroi mak first time in the Gujranwala city.

The idea of opening thai restaurant in the town is first of all backed up by  the lack or non-

availability of the Thai restaurant in the town and second of all we have confirmed from the thai

restaurant in Lahore that good proportion of Gujranwalians are their customers.

Features:

Provide Thai food for the first time

Offering multiple dining and entertainment facilities within a single establishment

The spatial and broader menu division

Comfortable environment like Thailand atmosphere

Low fat and calories food

Open or patio facilities are also available

Change in the menu every 4 month

Good quality of raw material is used

Price

Cost of Dishes:On the average the cost of dishes which we offer lie between the range of 400 to 500 PKR

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Price of Dishes:On the average dish prices ranged between 1000 to 1500 PKR and they are mostly served in the

quantity that can be enjoyed by 4-5 person

ProfitAccording to our research there is 50% profit in this business if managed effectively and

efficiently and we have proper planning to achieve our targets.

PlaceSatellite town is the place selected for our restaurant. The outlook for the future of Ario Mak is

exceptionally positive and the most progressive development area in the city. In this area we

have plan of leasing an old property for the construction of our restaurant.

              The market has been carefully selected for the necessary demographics and retail traffic

necessary to meet the goals laid down for profitability. The busy midtown

commercial/residential location has been chosen on the basis upon a successful demographic

model. All storage and godown facilities are also available at that place.

Promotion We will use different media for publicity and promotion it include:

Advertisement

Promotion campaign

Grand opening

Press release

Newspaper social media

Create website

Inner and outer city marketing

Using our logo ’Spice of life’

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PeopleThere are two kinds of people

Inside people

Outside people

Inside peopleIt includes people within the firm:

Management                                      Operation and marketing manager          Aansa randhawa

Financial manager                                  Arfaat hammayon

Business development manager             Mariam Yaqoob

Customer relationship manager                     Sumbal Gulzar

Outside peopleIt includes suppliers of raw material

Import fishes and prawns from Karachi

Chicken from K&N'S chicken company

Hyper star Lahore

Rationale of Selecting Suppliers

High quality

Comparatively low prices

Diverse variety

Trustworthy

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Organizational PlanOrganizational Hierarchy

Owners are the Managing directors of the Restaurant They have the sole authority to run the

business by making collective decisions in the business. As this is the Partnership Business so

her the decisions are taken on mutual consultation basis. In Restaurant all the power are authority

is with the Partners and they have the right to take any decision for the best interest of the

business. They have the authority and they are at the top of the hierarchy

Front of house Manager and Back of House manager are the person at same designation but

somewhat different duties. Front of House manager take steps for the efficient and effective

working of Main dining hall of the restaurant while Back of House Manager have the authority

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Ownersmanaging directors

Waiters

Front of house Manager Back of house Manager

Guard

Order Takers

Cashier Dish washer

Chef Helper

Purchaser

Head Chef

Cleaner

to implement his decisions on the Kitchen area and he is responsible to control all kitchen

activities. These managers are the urgent subordinates to Managing directors

Front of House manager have the authority to control Waiter, Guard Order Taker, Cashier &

cleaner. These person comes under the span of Front house manager and should follow the

decisions implemented by the Front house manager. Communication of problem will be in the

following way: If any of the person in the low level of hierarchy face problem he/ she will

contact his immediate supervisor.

Back of House Manager have the authority to control three type of persons i.e. Head chef,

Purchaser and Dishwasher. These entities are in immediate relation with the manager and should

contact the manager in problem. Head chef have the authority on two of the Chef helpers. Chef

helpers are bound to follow the instructions of Head chef.

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Human Resource RequirementsDesignation Number Monthly Salary Total Salary Skills

Owner 4 _ _

BOH Manager 1 20000 20000 skilled

FOH Manager 1 20000 20000 Skilled

Waiters 3 6000 18000 Semi-skilled

Cashier 1 8000 8000 Semi-skilled

Order takers 3 6000 18000 Un Skilled

Guard 1 7000 7000 Skilled

Cleaner 1 5000 5000 Un Skilled

Head chef 1 35000 35000 Skilled

Chef Helpers 2 6000 12000 Semi-Skilled

Dishwasher 1 6000 6000 Un Skilled

Purchaser 1 15000 15000 Skilled

Total 20 134000 164000

Above table shows the details about employees which we hire for the operation of business.

Initially we will hire 16 employees in a business. Detail of employees are as follow:

Back house managerThere is one back house manager in our restaurant. His duty is to control the affairs of kitchen.

To overlook the activities in the kitchen is an important task to do. Back house manager has to

look after the purchase of raw materials, cooking of food by the chef and the proper washing of

kitchen cooking wares and dishes. We offer an attractive salary and food facilities to the back

house manager. We will offer 20000 PKR plus lunch facility to the manager

Front house ManagerTo control the affairs of main restaurant and the dining area we will hire front house manager.

He overlook the task of the main dining hall. We offer him an attractive salary package of 20000

PKR plus food and lunch facility.

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WaitersTo offer quality food to our customers we hire 3 waiters. Waiters are hired on permanent basis

and on salary package of 6000 per waiter. We have also some persons on standby basis so that

on days of Eid and other festivals we can take their services and facilitate quality food to our

customers. Waiters are semi-skilled laborers and we will hire experienced waiters so that we can

avoid training cost

CashierWe will hire one cashier to effectively manage the activities related to receipts and payments of

the restaurant. All the cash is dispensed by the cashier and using special vouchers and customer

bills have also been received by the cashier. We offer an attractive package to cashier of 8000

PKR.

Order takersThese persons are hired on the permanent basis. Initially we have planned to hire 3 order takers.

Their main function is to provide menu to the customers and take orders. Afterwards they

provide bills to the customer. We are offering attractive salary of 6000 to each order takers

GuardFor security purpose we hire one guard on 12 hours shift. An affordable salary of 7000 will be

offered to Guard. He will also assist in parking of the vehicles and bikes outside the restaurant.

CleanerCleaner is an unskilled person. We will hire one cleaner for the clean age of washrooms and

dining hall. We will offer an attractive and affordable salary of 5000 PKR

Head ChefThis is the most important person upon whom the reputation of the restaurant is based. We have

hired Thai chef on 35000 PKR salary plus lunch and dinner facility.

Chef Helpers We have hired two chef helpers on permanent basis. Their duty is to provide help to the head

chef in cooking matters. They will be hired on an affordable and attractive salary of 6000 per

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helper. They are encouraged to learn from the main chef and in the future they will be developed

into a complete thai chef.

Dish WasherWe will hired one dish washer to clean the contaminated and used dishes. We offer an attractive

package of salary of 6000. As we are believing in making good relations with our customers as

well as employees because they are also involving in making our restaurant’s goodwill.

PurchaserWe will hire a purchaser who will purchase the raw material i.e. chicken, vegetables, fishes, sea

food, and other materials for the restaurant at a good package of salary PKR 15000.

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Operational PlanThis section includes detail of all the activities in our restaurant that ranges from the purchase of

Raw materials from the supplier and the conversion of that Raw material into finished goods.

Purchase of Raw MaterialRaw Materials have been purchased by the Purchase manager on regular basis. Our main raw

material is Sea food such as crabs different types of fishes, lobsters, Rice, Meat, Chicken, Spices

and many more described in the previous section. Manager of the Back house regularly observe

the quality of the Raw material purchased by purchaser and it is advised by the owners that no

Raw material should be below standard that will ultimately affect the quality of food in the

restaurant.

Storage of Raw MaterialsIn the second step Raw Materials have been stored in the freezers and cabinet for future use.

Perishable nature of Raw materials are properly canned and stored in the dry and cold places.

This step in the operation is also very important as it ensures the quality of food

Cleaning of Chicken Meat and FishIt is ensured that Chicken, fish and Meat that will be ultimately used to manufacture the product

should be washed properly. In the next step it is ensured by the BOH manager that whether the

Chicken, Fish and Meat is properly cleaned or not.

Order taking After the order taking by the order takers boys on a prescribed form. This form is dispatched to

the chef. Chef on the examination of the form start planning for the formation of the desired

Food.

WIP inventory of FoodIn hotel industry it is customary to maintain a work in process inventory of the food. This is done

to prepare food urgently without any efforts. For example for chicken Thai soup preparation the

curry for the soup is already prepared and stored in the freezers. On an order from customer

product will be ready to serve in few minutes.

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Preparation of FoodFor the preparation of food various machineries and equipment are used such as cooking ranges,

Ovens and deep fryer. These machineries and equipment’s have been purchased for this purpose.

Fish and sea food are mostly boiled and fried while chicken have many methods to be cooked

according to specification of dishes. In short we have all the required Machineries and

Equipment.

Delivery and serving of FoodAfter the preparation of Food the next step in operations is to deliver the food to our valuable

customers. It is ensured that the food should be delivered without allowing any delay this will

ensure the warmness of food. We ensures that we serves warm food which emit steam and nice

odour out of it.

Take Away Orders For take away order we ensures that there is a proper packing of that food. We have planned for

the best packaging material available in the town

Packaging We need to package two type of food one which is left over from the customer who have dined

in plus a food that is ordered for take away purpose. It is ensured that packaging should be of

good standard and material so that the food material would not leak out on the way.

LabellingWe use different type of paper bags for the packing of food. There is no need of labeling on that

paper except the logo of the restaurant and the contact details.

AdvertisementDetails regarding Advertisement is included in the previous section. (Marketing plan)

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Financial PlanInitial Capital Requirement

Details PKR

Construction Cost (all inclusive) 2000000

Dining & Office Furniture 522250

Equipment & Machinery 210000

Advance Rent 1200000

Preliminary Expenses 79750

Working Capital 1000000

Total 5012000

Our Total cost for opening a Thai restaurant is around 5012000 PKR. The break up for the

expenses are mentioned in the above Table. We have planned to spend 2000000 PKR on the

construction of the Thai restaurant. A total of 522250 PKR is likely to be spent on Dining &

Office Furniture and 210000 is estimated to be spent on Equipment & Machinery. To Acquire the

Building we will have to provide the Advance to the owner of the building. An amount of 1200000 is

being allocated for this purpose. Preliminary expenses such as legal expenses is calculated for PKR

79750. For the efficient working of restaurant in the start we allocate 1000000 PKR as working capital. It

is allocated to meet the daily money needs of the business. A detail of each of the expense is discussed

below.

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Dining and Office Furniture’sThe restaurant is expected to entertain a minimum of 300 customers in a day, which requires a

good seating layout to avoid any confusion and problems during rush hours. The following table

gives the details of the dining tables and chairs that would serve approximately 100 customers

(maximum capacity) at a time

Item details Quantity Unit Price Total Price

Dining Table 25 6000 150000

Chairs 100 1500 150000

Cutlery sets 2 2500 5000

Air Conditioners 2 40000 80000

Halogen Lights 25 250 6250

Wall lights 60 100 6000

Emergency lights 4 2500 10000

Generator 1 90000 90000

Office table and Chairs 4 2500 10000

Counter 1 15000 15000

Total 165 169250 522250

Above table mention the details for the Dining, Office furniture & fixtures that will be purchased

in order to design and run our Thai restraint. These things are indispensable for our restaurant as

these will increase attractiveness of our restaurant and add utilities to our customers. Following

are the details of the Furniture and Fixture that will be purchased

Dining TableDining tables are essential for the efficient serving of the food. We have a planned capacity to

serve 100 customers at one time. So in order to achieve that planning we should have to purchase

25 dining table of 2x2 size. One table has the capacity of 4 seaters. The estimated cost of the

Dining tables are 150000. They are acquired from local furniture market by providing

specification

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ChairsChairs are arranged from the local market. A total of 100 chairs are acquired from National

Furnishers in Gujrat. We are specially focused to provide our customers with a thai like

envoirment so in order to achieve our objective we specially design chairs that have the glimpses

of Thai tradition in them. Total cost for the Chairs are 150000.

Cutlery SetsTo facilitate our customers with our quality foods we will attain 2 cutlery sets from Hyper star

Lahore at an affordable price. The cost of one Cutlery set is 2500 so we have to spend 5000 on

Cutlery sets.

Air Conditioners To provide state of the art food and Restaurant facilities to our customers in summers we have

initially planned to install 2 split units in our restaurant compound. Now a days it is necessary to

provide Air conditioners in summers and heaters in Winters. A sum of 80000 is spent on the

buying of Air conditioners

Halogen LightsIt is the envoirment of the restaurant that matters a lot. To create soothing and relieving

envoirment in our restaurant we have planned to install Halogen lights in the Building. This will

adds to the beauty of the infrastructure and attract the prospective customers. A total of 25 lights

will be initially installed having a cost of 6250 only

Wall lightsTo enlighten the compound of the restaurant with different colors we will install wall lights and

tubes. A total of 60 tube will be planted in the compound with a total cost of 6000 PKR

Emergency LightsKeeping in view of the load shedding problem of the country we have planned to install 4 big

size Emergency lights. Whenever there is a break down of electricity. Automatic emergency

lights will start to enlighten quickly.

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GeneratorsA 5KVA generator is planned to be installed in our restaurant. It is estimated that our electricity

needs will be replenished well with the 5KVA capacity generators. A total of 90000 is separated

to be spent on this sector

Office Table & ChairsExecutive class chairs will be acquired from the Imperial Furniture Gujrat. One Table and One

chairs set is arranged on an affordable price of 2500 PKR. A total of 10000 is separated for this

purpose.

CounterFor the reception a counter is arranged from the local furnishers. The dimensions of the Counter

will be 4x5 feet and we have a plan to install our restaurant logo on the Counter.

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Equipment & Machinery

Item details Quantity Unit Price Total Price

Freezers 2 40000 80000

Deep fryer 1 40000 40000

Cutters and knifes set 3 2000 6000

Oven 2 12000 24000

Working Tables 2 20000 40000

Shelves 2 10000 20000

Total 12 124000 210000

In this section we will explain the Equipment and the Machinery that are inevitable for the

activities of our restaurant. Details are given below

FreezersWe have to maintain raw material inventory of different products that are perishable in nature.

So we have planned to purchase 2 freezers from Haier Company at an affordable price of 40000

each with a total cost of 80000 PKR

Deep FryerKeeping in view the needs of the kitchen we will purchase deep fryer from Lahore electronics

market. The purpose for such a machine is the digital temperature controller that will help in the

efficient cooking of the food. It is planned to spent 40000 on this area

OvenTo cook some foods we will have to pretend a oven in our kitchen. To fulfill this need we should

purchase 2 Ovens from the local Market. Estimated cost to be spent on the oven are 24000 in

total.

Working TablesFor the kitchen infrastructure facilities working tables are necessary. Quality working table

would be arranged from the local market worth 20000 PKR. A sum of 40000 PKR is required for

achieving this target

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ShelvesShelves should have to implant for the efficient working of Kitchen. A local carpenter will be

contacted for the installation of the shelves. An estimated cost of the shelves amounts to 20000

PKR

Financial Projection

Sales Increase 15%

Increase in Cost of Raw Materials 10%

Increase in Staff Salaries 10%

Increase in Utilities 10%

Increase in Rent 10%

Increase in Office Expenses 10%

Keeping in view the future of our restaurant we made some projections. Sales will be increased

at a rate of 15 percent annually. This estimate is based on our best efforts in running the

restaurant. Due to inflation we expect that there is a subsequent 10 percent increase in the Raw

materials prices. Employee’s salary will be increased by 10 percent next year keeping in view the

Market salaries. There is an estimation of 10 percent increase in the Utility bills such a Gas and

Electricity. Rent would be increased by 10 percent next year as per the agreement. Office

expenses would also have a jump of 10 percent in the coming year.

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Supportive Calculations for the preparation of Income statement and Balance SheetSalesWe are expecting that in the first year we have 50 customers per day. Based on this fact we have also estimated that they would have a minimum bill of around 550 which is not an optimistic figure but still we are using this for calculation as on pessimistic approach

Sales 1001520 for the first year (estimated value)

For one month {1001520/12 = 834600}

For one day {834600/30 = 27820 }

For one Customer {27820/50 = 556 }

Raw MaterialsKeeping in view the current price and based on the estimations made by chef it is expected that our cost of Raw material to sales ratio is 45 percent. So applying this analogy on the Sales we would have raw material usage of 4500120 approx.

(4500120/ 1001520 * 100) = 4500120

Labor and Salaries We have computed the monthly salary of 164000 for the whole payroll account. Based on this calculation we have to say that annually we would have to pay

(164000*12)= 1968000

Utilities and BillsIt is expected that utilities and bills would be 624000 for the whole year computed in the following Manner

(52000 *12) = 624000

Where 52000 is future separated into Gas bill of 20000 Monthly and Electricity bills amounted to 20000 too and Telephone bill amounted to 12000 only

Rent ExpenseRent Expense is amounted to 100000 per month as per the agreement of the leasing.

(100000 *12) = 1200000

DepreciationDepreciation is charged on fixed asset such as building, furniture and fixtures and machinery we have estimated that as a whole there is depreciation of 50000 per year

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(Building = 20000)

(Machinery and Furniture and fixtures = 30000)

TaxTax is calculated on the basis of slab rate for the year 2015 and 2016. Our net profit after interest comes out to be above 1500000 so in our case following slab would apply

92,000 + 15% of the amount exceeding Rs 1,500,000.

Office and Miscellaneous ExpensesOffice and miscellaneous expenses amounts to 72000 annually. It include the maintenance cost and packing cost of the food.

(6000 *12) = 72000

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Future Planning

We will expand our business by introducing the other kind of foreign food like Indian, Chinese,

wide range of Italian food or any other kind of food after getting suggestions from our

customers.

We will also expand our restaurant in future by offering Ramzan buffet to our customers. In

future we will also expand out our restaurant by introducing out-doori lawn location because

many people like to eat in fresh atmosphere.

We will also expand our plan of Thai food in other cities.

Our website will be used in future to try out new offer starting with an online order feature if

concept gains favor with customers. A customer will be able to order a selection for pick up

using a credit card.

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Risk assessmentFinancial Risk

The risk is involved here that the finance which we have invested in business may be not fruitful

and we have to face a loss.

Risk Related to Employees safety

To avoid injury in employees we will provide proper dressing to our chefs to avoid such type of

accidents we are using new techniques and we will provide first aid on emergency basis.

Negligence and Dishonesty of Employees

To avoid the risk of negligence and dishonesty of employees we will provide the bonuses,

recognition and status to our employees according to their job performance and work.

Risk of Wrong Employee for the Job

The risk of wrong employee for the job is also involved in business we improve our management

and select the persons who are eligible to perform the duties effectively.

As government regulations are changed in no time so we have to be updated all the time and our

strategies must be flexible so we can mould with the change in regulations.

Substitute Restaurant

To avoid the threat of substitute restaurant we will enter unique features in our food that meet the

need of customer more effectively after a set period.

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Political InstabilityAs political instability is always here so we have to make flexible strategies this way we can

avoid a big shock.

Bargaining Power of supplier

To avoid bargaining power of suppliers we will purchase our food items from different suppliers

so if any supplier not available or any other issue is there our business will not be disturbed by

this.

Market Competition

There will a competition in the market to overcome it we have to introduce new services after a

period of time we will attract our customers by giving quality food in affordable price. This way

we can achieve customers and this will be the real achievement for us.

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Projected Income Statement

Income Statementfor the Year Ended (Proposed)

Net Sales 10015200

Less: Raw Material Cost 4500120

Labor and Salaries 1968000

Utilities 642000

Cost of Sales 7092120

Gross Profit 2923080

General Selling & admin expenses

Rent Expenses 1200000

Office & miscellaneous Expense 72000

Depreciation Expenses 50000

Total Operating Expense 1322000

Net Profit before Tax 1601080

Less: Tax (92000+101080*15) 107162

Net Profit 1493918

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Projected Balance Sheet

As on 31 Dec 20xx

Details Amount

Assets

Current Assets

Cash & bank Balance 1000000

Prepaid rent & advance 1200000

Total Current Assets 2200000

Fixed Assets

Machinery 210000

Building 2000000

Office Furniture & Fixtures 522250

Total Fixed Asset 2732250

Preliminary Expenses 79750

Total Assets 5012000

Owner’s Equity 5012000

Total Equities and Liabilities 5012000

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