BUSINESS PLAN

HENNY PENNY RESTAURANT

FROM: TAUHEED ISSA

SESSION: SPRING 2008

CLASS: MBA FINAL

TO:

SIR SABIR MALIK

EXECUTIVE SUMMARY

HENNY PENNY is the first online fast food restaurant in the history of Pakistan. Our aim is to

provide the quality food of your own choice at your door steps with the most convenient online

ordering and payment system.

OUR BUSINESS

We take great pride and care to provide you with the best food and dining experience in the

quick service online restaurant business. We believe eating sensibly, combined with appropriate

exercise, is the best solution for a healthy lifestyle.

Whether you're taking back lunch or bringing back dinner, HENNY PENNY has all your

favorite chicken, salads, sandwiches, snacks, sweets and Beverages. HENNY PENNY also

offers a variety of menu items for those who want lower fat, lower calorie choices etc. To help

you further, we've provided nutritional information so you can make informed choices about

what to eat.

PURPOSE

The purpose to start this business is to serve people of new era with a different and the most

competitive style. The prime purpose is to generate profit by providing superb customer services.

We aim to be leader in providing quality food items that fit into a balanced diet. Our aim is to

provide the hygienic and delicious tastes that the customers have never tasted before. We want to

add convenience in the lives of fast food lovers by providing them the most wonderful dining

experiences at their doorsteps.

THE MOST FREQUENT CUSTOMER COMPLAINTS:

You can't get a table during busy periods of the day

Food is cooked too far in advance of when I order it

Food is not served hot enough

Their food doesn't stay hot if you take it home

Packaging for take-out food doesn't' keep it warm

Restaurant is too crowded during meal times

They don't use high quality meat

Takes too long to get your order

People who come in after me get served before I do

You have to wait too long when you go back to buy something else

FEATURES OF ONLINE RESTAURANT

Aiming to serve you in a way that is more convenient than ever.

Our restaurant caters you 24/7 a week. This e-restaurant allows greater customer service relationship by providing

enhanced service to their customers.

Our e-service ensures hygienic, nutritious, healthy food with quick delivery.

Customers can cancel or change the order by simply clicking without

disturbing their busy schedules.

Calorie guide and nutritional facts are displayed with each food item to help

the customer to make the most appropriate choice.

With the unique ordering system, clients can choose from a wide variety of

food offerings available in menu.

Clients make their food selections and designate the day and time the food

should be delivered.

Once the order is placed, HENNY PENNY remains in contact with the

customer to ensure that food is prepared according to the client's instructions

and then confirms the on-time delivery.

VISION STATEMENT

The company's goal is that of a multi-faceted success. Our first responsibility is to the financial

well-being of the restaurant. We will meet this goal while trying to consider;

the effect of our products on the health and well being of our customers (and our staff),

the impact that our business practices and choices will have on the environment, and

The high quality of attitude, fairness, understanding, and generosity between management, staff, customers, and vendors. Awareness of all these factors and the responsible actions that result will give our efforts a sense of purpose and meaning beyond our basic financial goals.

MISSION STATEMENT"Change the way, food is served”

Tom Peter’s, the Management Guru states: “Any business that does not change will be dead in five years”.

2011 will go down in history as the year of change, but still retailers who prefer the old days and

are, alas, losing market share.

Businesses don’t change for the sake of change, businesses generally change because the

consumer either asks or forces them to change. It is not the industry

that is forcing change; it is you as consumers.

CORE VALUES AND PHILOSOPHY

Customer satisfaction through offering high quality food with exceptional service and good value.

Be topical, not typical.

Constantly involve the team in the ideas loop.

More emphasis placed on the caliber and training of frontline people.

We take great pride in serving each other, our customers and our communities.

We seek continuous improvement in all that we do.

Build trust relation ship with customers by promoting love and expertise.

We value a sense of urgency and emphasize an innovative, entrepreneurial approach to business.

We expect fairness and mutual respect in all our activities.

We know our success depends upon the initiative we take individually and our ability to work as a team.

GOALS

We are committed to exceeding our customers' expectations every time.

We aim to be market leader by providing the superb customer experiences to all our customers and thus by gaining their loyalty.

We will seize every opportunity to innovate and lead the industry on behalf of

our customers.

Our goal is to increase the profitability and reputation of business.

PROPOSED BUSINESS LEGAL STATUS

Although the legal status of business tends to play an important role in any setup, the proposed

fast food business is assumed to operate on a sole proprietorship basis which may extend to

partnership in case of addition of new products that might add significant Business to the

existing setup.

INDUSTRY ANALYSIS

Although the restaurant industry is very competitive, the lifestyle changes created by

modern living continue to fuel its steady growth. More and more people have less

time, resources, and ability to cook for themselves. Trends are very important and HENNY

PENNY is tasking interest to provide lighter, healthier foods at moderate to low prices.

THE RESTAURANT INDUSTRY TODAY

The food service business is one of the largest industries in the country. This number

has been increasing for the past seven years. In the past five years the restaurant

industry has out-performed the national GNP by 40%. The reasons given by the

Folkney Report (November 1994) are

1)lifestyle changes,

2)economic climate, and 3)Increase of product variety.

There are 600 new restaurants opening every month and over 200 more needed to keep pace with increasing demand.

FUTURE TRENDS & STRATEGIC OPPORTUNITIES The predicated growth trend is very positive both in short and long-term projections. Folkney

states that “as modern living creates more demands, people will be compelled to eat more meals

away from home”. The DMR Industrial Report estimates this as high as 30% over the next five

years.

In 2003 The National Restaurant Association released the Foodservice Industry 2003 report that

forecasted how the industry might look in the year 2010. Some highlights from the panel's

findings:

• "Consumers will spend a greater proportion of their food dollar away from home.

• Independent operators and entrepreneurs will be the main source of new restaurant concepts.

• Nutritional concerns will be critical at all types of foodservice operations, and food

flavors will be important.

• Environmental concerns will receive increased attention."

OUR CUSTOMERS/TARGET MARKET

All the youngsters, children and fast food lovers who want to get the most exclusive and the more innovative dining experience

WHO EATS FAST FOOD The food concept and product image of HENNY PENNY will attract 3 different customer profiles;

• THE STUDENT -- more and more young people have developed healthy eating habits. Some also go through a "health food phase" while in college.

• THE HEALTH CONSCIOUS PERSON OF ANY AGE OR SEX -- this includes anyone on a restricted or prescribed diet or those who have committed to a healthy diet.

• CURIOUS AND OPEN-MINDED- - "if you try it, you will like it." Through marketing, publicity, and word-of-mouth, people will seek out a new experience and learn that nutritious food can be tasty, fun, convenient, and inexpensive.

WHEN DO PEOPLE EAT FAST FOOD

Lunch (44%)

Morning snack (40%)

Afternoon snack (31%)

Dinner (19%)

Evening snack (14%)

Breakfast (12%)

The average person (over the age of 12) eats at a fast-food restaurant an average of 9.2 times monthly.

COMPETITIVE ANALYSIS HENNY PENNY is not without competitive pressures. Chief competitors include Yum! Brands, McDonalds, etc

Yum! Brands are the world's largest, with 33,000 restaurants in over 100 countries. Four of the

company's highly recognizable brands, KFC, Pizza Hut, are global leaders of the Mexican,

chicken, pizza, quick-service food categories. Yum! has a workforce of 272,000 employees and

is headquartered in Louisville, Kentucky.

McDonald's Corporation (McDonald's) is the world's largest foodservice retailing chain with

31,000 fast-food restaurants in 119 countries. The company also operates restaurants under the

brand names 'The Boston Market' and 'Chipotle Mexican Grill'. McDonalds operates largely in

the US and the UK and is headquartered in Oak Brook, Illinois employing 447,000 people.

MAJOR COMPETITORS

McDonald’s KFC

SWOT ANALYSIS

HENNY PENNY restaurant is well positioned to leverage its strengths and address reasonable threats, weaknesses, and opportunities. The table below highlights these Strengths, Weaknesses, Opportunities, and Threats.

Strengths

• It’s the first online fast food restaurant in the history of Pakistan • Menu reflects demand for fresh, healthy and fast food.

• Use of non-traditional channels.

• Partnering with the Pakistan food association

• Customizable menu offerings.

• Staff training is structured and designed to assure rapid start-up and success.

• Convenience is an important factor of fast food restaurant i Weaknesses • Employee turnover is high.

• Lack of trust of general public about online order placing and then finally get their desired food item

Opportunities • Continue to Grow Business in the whole country

• Update website decor to encourage more dine-in business. • Improve Customer Service Model.

• Continue to expand channel opportunities to include event wagons.

• Expand packaged dessert offerings. • Continue to revise and refresh menu offerings.

• Develop more partnerships with movie producers and toy manufacturers to promote new movie releases through children's menu packaging and co- branding opportunities.

Threats

• Food contamination

• Competition.

• Economic downturn.

• Government policies

• Bird Flu

• People with the access of internet only can place online orders.

COMPETITIVE STRATEGY

There are three major ways in which we will create an advantage over our competitors:

1.Product identity, quality, and novelty

2.High employee motivation and good sales attitude

3.Innovative and aggressive service options

NUTRITION CALCULATOR

HENNY PENNY serves a wide range of quality foods that can easily fit into individual diet needs based on the principles of balance, variety and moderation. Our variedmenu and range of serving sizes make it easy to fit our food into a balanced diet andto create a range of meal combinations that fall within recommended guidelines forcalories, fat and other nutrients.

Concerned about fat content? Need a special order? With our cooking system, customers can special order various menu items to help meet their nutrition needs.

Today, building on our Food Facts program, nutrition information is also included onour double-

sided tray liners and on posters that are conveniently located near our front counters. Also,

customers can get nutrition information online. Simply visit our Nutrition Calculator for nutrition

and ingredient information and to customize menu items to your needs. HENNY PENNY is also

helping you learn more about our food by adding nutrition information on some of our

packaging. Some of our packaging now includes theHENNY PENNY Nutrition Chart

Our goal is to provide you with the information you need to assist you in making sensible decisions about balance, variety and moderation in your diet.

FOOD QUALITY ASSURANCE

The bedrock of all our socially responsible

supply efforts is our commitment to ensuring

that all the foods and beverages we serve our

customers are safe. We do business only with

suppliers that share this commitment and

work with them to continuously monitor, test,

and track our ingredients. We have stringent

standards and checks in place in critical areas

throughout the food supply chain—from "fork

to farm."

PURCHASING HIGH-QUALITY SAFE FOOD PRODUCTS

Companies that supply food products to the HENNY PENNY must have a number of food

safety programs in place. They include, among others, programs for sanitation, pest control, and

microbiological control, and a hazard analysis critical control point (HACCP) plan and program.

HACCP is widely recognized, worldwide, as an effective method of preventing food-borne

illnesses.

ENSURING FOOD SAFETY AT THE RESTAURANT LEVEL

Food safety training begins the first day an employee arrives for work, with an

orientation to our standards. It is reinforced and expanded in the curricula and

materials that prepare restaurant employees for more advanced positions. Shift

managers must successfully complete an entire course in food safety before being

certified as capable of managing a shift alone.

Our Operations and Training manual for restaurant managers includes a whole

chapter on food safety, with requirements and guidance that cover all the critical

control points at the restaurant level—from supply and delivery through storage,

preparation, and holding.

Food safety procedures are monitored by staff operations consultants, who regularly

visit our restaurants to advise managers on operations. The consultants also conduct

periodic restaurant operations reviews, which include assessments of food safety

procedures. Managers are expected to correct any irregularities identified.

Onsite assessments are also used to identify needs for expert assistance and forfurther development of our training programs. They are an important factor inevaluating company-operated restaurant managers and in deciding whether owner/operators are qualified for additional restaurants and for continuation within the System.

PACKAGING

Packaging design is a fundamental part of our

top quality customer service. Many of our

menu offerings have unique packaging designs

to provide insulation, help ensure food safety,

and make them convenient for carryout. This

gives us many ongoing opportunities to

minimize the environmental impacts of our

packaging and to provide industry leadership

in natural resource conservation.

INVENTORY MANAGEMENT SYSTEM OF HENNY PENNY

Just-in-Time (JIT) inventory is the big thing right now in operations. HENNY PENNY is another example of a JIT system wherein henny penny’s doesn’t begin to cook its orders until a customer has placed a specific order. Now, due to more sophisticated burger-making technology (including a record-breaking bun toaster), henny penny is able to make food fast enough to wait until it's been ordered.

WHAT ARE THE BENEFITS FOR HENNY PENNY? The major benefits for HENNY PENNY are better food at a lower cost. HENNY PENNY has found something that allows them to improve quality and lower costs. Let's take a look at how it does both. 1. Improved Quality the benefits of a better tasting burger should be fairly apparent. Unless of course you prefer aged burgers, the fresher burger is going to be higher quality if made fresh just for you.

The less obvious benefit is the higher quality customer service that arises from the JIT burger

assembly. When HENNY PENNY waits for you to order the burger, they do a few things to

improve customer service. First of all, when you place a special order, it doesn't send henny

penny into a panic that causes huge delays.

Now that HENNY PENNY is in the practice of waiting until you order a burger until they make

it, they don't freak out when they have to make a special order fresh just for you. This higher

quality customer service is subject to henny penny's ability to actually produce faster. Without

this ability, henny penny's ordering costs would be sky-high because the costs associated with

ordering would be the loss of customers tired of ordering fast food that really isn't fast.

2. Lower Costs

The holding costs for burger parts are fairly high because of its spoilage costs.

Frozen ground beef that's good today might not be so good in a few months. Once

cooked, the same ground beef's spoilage rate shoots through the roof. Instead of

having a shelf life of months or weeks, the burger needs to be sold within 15 minutes

or so. The holding costs go from roughly 20% per week to 100% per hour.

For HENNY PENNY, the benefits of JIT are fairly clear

Supplies

Henny Penny’s suppliers play a pivotal role in our success, providing quality products at competitive prices.

Together, suppliers and the Company create new products,help reduce costs and ensure our customers receive the same great taste of henny penny in every community acrossthe country.

In essence, we shop where our customers shop - ourshopping basket is just a bit bigger! Henny penny buys andserves the same wholesome foods our customers use athome, supplied by brand name companies which Pakistanisknow and trust.

RAW MATERIAL SURVEY

RAW MATERIAL SURVEY

The adequate material will be available to support our project from local market suppliers like

K&N, Dawn bread. Raw material used in our products belongs to the following categories

Natural form ( chicken , vegetables, rice) Finished form ( oil, bread bun, butter cheese ,spices, beverages)

PRODUCTS

Operating Facilities and Equipment to run the business:

1. Kitchen Equipment Commmercial Fryers

Hot Food Storage

Steam Equipment Commercial Ovens Wood Cabinet Carts Work Tables Tissue rolls Cutlery sets Freezers Generators Microwaves Waste bins

2. Kitchen apparels Aprons Bandannas Caps & hats Chef coats Face masks Finger guard Kitchen gloves

3. Cooking equipment Restaurant toasters Sandwich grills Sandwich press

4. Stationary Register rolls Sales book Tape products

Cost of project

ITEM COST (RS.)

UPS 70,000

Dining & Office Furniture 1000,000

Equipment & Machinery 1500,000

Security deposit 800,000

Total 3370000

ORDERING SYSTEM

It is now easier than ever before to order a fast food delivery from your local takeaway because

you can do it over the internet. Using this website, you can HENNY PENNY fast food

restaurants in your local area and see the entire menu online. Ordering is just a matter of clicking

on what you want and entering your address. The order be sent to the fast food restaurant for

delivery to you - it's as easy as that. Best of all its completely free!

Become a free member

You don't have to be a member to use this website but if you sign up for a free

account, it will make ordering food even easier in the future. You can store all your

details so that you only have to enter them once. Signing up also lets you to see a

past history of all your orders. You can even see your favorite meals and quickly re-

order them.

Ordering

you start by entering your postcode. Check out the list and select whichever type of

food that you feel like. Instead of ordering by phone and going for your usual burger and chips, you get to

see the full menu of this fast food place. Decide what you want and simply click on it

to add it to your shopping list. You'll see this at the left of the screen and it shows

you everything you've ordered along with the total price. we give you the chance to customize your order

by selecting the type of sauce you want on your burger or whether you want salad on your kebab. In your

shopping list, you might see a cross like this next to an item. This means that you can

customize this item. Just click on it to see all the choices you have.

When you're sure you've chosen everything you want, just click on 'Place Order'. After letting us know the delivery address of your order and choosing whether you want to pay by cash or card, just sit back, relax and wait for your food.

What happens next?

At any time, you can check on the status of your order by using the order tracking system on this website.

PAYMENT PROCEDURE

On line payment through credit cards in cash at the time of delivery of order

LOCATION To run the business we have selected the most favorite site of fast food lovers i.e. Clifton Karachi.

DEPARTMENTS OF FAST FOOD RESTAURANT Finance department marketing department Operations department purchasing department customer services department

Finance department:

This department is responsible to arrange the cash inflows of the business. it also identifies the

sources from where the finances can obtain to run the business operations smoothly.

Basic source of financing are:

Banks

Credit Unions

Family

Network of connections

With the loan provision proper accounts of cost and revenues are maintained round the year. Such as:

Average Sale per Customer = Total Sales / Number of Customer transactions

This can be done by the year, month, week or day. The important thing is sales members need a

target to aim for and this is one of the most effective ways of doing this

Sales per Full time Team Member = Total Sales / Number of full time equivalent team members.

To allow you to benchmark with other businesses you need to look at full time equivalent team members to get a comparable figure

Labor Costs as a Percentage of Sales = All payroll expenses related to Sales x 100 \ Total Sales

This tells you the cost of doing business with your present team

Return on Investment: There are two ways of doing this:

Return on Total Assets (ROA %) = Earnings before Interest & Tax (EBIT) x 100 \ Total Assets

Return on Equity (ROE %) = Earnings after Tax (EAT) x 100 \ Owners Funds

NOTE: An old saying "If you can't measure it then you can't manage it."

Marketing department: The marketing department focuses on designing colorful advertising and promotion materials.

WE BELIEVE:

Your team has the ideas that can help you be topical. Typical businesses tend not involve the team in

marketing strategies. Topical businesses constantly involve the team in the ideas loop.

Once a month take a couple of hours to work “on” your business with your team, provide some

refreshments, and brainstorm ideas. Set a budget (which could be nil) prior to the session so the team

have a parameter to work within. The subject could include how to develop unique displays, marketing

campaigns or advertising to get more people through your front door.

MARKETING PLAN & SALES STRATEGY

MARKET PENETRATION

Entry into the market should not be a problem. The store has high visibility with heavy foot

traffic all day long. The local residents and students always support new restaurants and the

tourists do not have fixed preferences. In addition, $10,000 has been budgeted for a pre-opening

advertising and public relations campaign.

Marketing Strategy

Focusing on the unique aspect of the product theme (healthy, tasty foods) a mix of

marketing vehicles will be created to convey our presence, our image, and our

message.

Currently advertisement is being done through:

E-mails

Bill boards

Advertisement on different entertainment sites

Print media

Operations department: This department focuses on preparing food efficiently

Purchasing department: Is responsible to manage the adequate number of supplies and chicken purchases at the right time and in the right quantity.

Customer services department Are concerned to tackle and answer the complaints of customers in the most congenial way. Any inconvenience faced by customers is tried to resolve through

FAQs E-mails

If you're having any problems with this website then please don't hesitate to contact us. You can find all our details on our contact page.

If you have any problems or disputes with any of the fast food order that we serve, please contact us and we will investigate.

We are also interested in your comment and suggestions. This website is for you so if you can think of anything we can help with, just let us know.

MANAGEMENT REQUIRED TO RUN THE BUSINESS

1.Fast food manager

2.HR manager

3.Quality assurance manager

4.Training & development officer

Designation/type NoOwner 1Kitchen supervisor 2Shift supervisor 3Cook 4Take away order taker 1Dish washer 2Cleaner 1Guard (12 hours) 1Total 21

CALIBER OF HR

Excellent customer service skills

Ability to lead and motivate teams and influence people

Good organizational skills

Energy and stamina

Decision making ability and problem solving skills

Strong communication skills, tact and diplomacy

LONG-TERM DEVELOPMENT

GOALS

HENNY PENNY is an innovative concept that targets a new, growing market. We assume

that the market will respond, and grow quickly in the next 5 years. Our goals are to create a

reputation of quality, consistency and security (safety of food) that will make us the leader of

a new style of dining.

STRATEGIES

Our marketing efforts will be concentrated on take-out and delivery, the areas of most

promising growth. As the market changes, new products may be added to maintain sales

MILESTONES

After the restaurant opens, we will keep a close eye on sales and profit. If we are on target at the end

of year 1, we will look to expand it to other countries.

RISK EVALUATION

With any new venture, there is risk involved. The success of our project hinges on

the strength and acceptance of a fairly new market. After year 1, we expect some

copycat competition in the form of other independent units. Chain competition will be

much later.