Revival Restaurant

Groups Members:Omer Siddiqui 57314Urooj Nazir 58124Hira Tariq 58073Saima Yasin 55711

Feasibility Study

Presented toSir Arsalan Hashmi

Introduction of REVIVAL

It is a fast-food restaurant characterized by food which is supplied quickly after ordering and by excellent service.

The most critical considerations or factors for success of our restaurant are:

Choosing the right location for the fast food outlet Creating the right menu and menu pricing Hiring experienced cooks and staff Knowing the competition

To create the best, branded, healthy eating restaurant in the PAKISTAN, to be recognized for providing great food, entertainment and fast, efficient friendly service.

“To establish in Pakistan our position as the leading WQSR (Western Quick Service Restaurant) chain, serving good value, innovative fast food products. Consistently providing a pleasant dining experience, with fast friendly service, in a clean and convenient location. At all times, we must be dedicated to providing excellent service and delighting customers.”

Vision

Mission

25% - Omer Siddiqui25% - Urooj Nazir25% - Hira Tariq 25% - Saima Yasin

Company Partnership

Location & FacilitiesRevival location decided at gulistan e jouhar & will seat around 140 guests. We will equip the outlet with modern furniture and aim for cleanliness and an open feeling. The space selection will be chosen based upon the following criteria:

Easy access. Large percentage of youngsters in the community.

The Upper & middle income segment of major city Karachi is the target market for the business.

Four popular fast food items, including fried chicken, burgers, sandwiches, Chinese fried rice and soups, have been selected to be served separately or as combo meals through the outlet. The restaurant is proposed to have an installed capacity of serving 200-250 customer per day but is estimated to start with 140-150 customers per day.

Target Market

Product

Item Description PriceChicken Broast (Qtr.) 200Chicken Broast (Half) 400Chicken Broast (Full) 800Chicken Burger 175Chicken Cheese Burger 195Beef Burger 195Beef Cheese Burger 210Zinger Burger 250Chicken Sandwich 150Egg Sandwich 135Beef Sandwich 165Club Sandwich 180Hot & Sour Soup (2 Servings) 200Hot & Sour Soup (4 Servings) 400Chicken Corn Soup (2 Servings) 180Chicken Corn Soup (4 Servings) 360Plain Rice 100Chicken Fried Rice 200Vegetable Fried Rice 235Egg Fried Rice 150Beef Fried Rice 180Beef Chili (w/o rice) 355Chicken Chili (w/o rice) 325French Fries (per plate) 125Cole Slaw 50Soft Drinks (Large) 100Soft Drinks (Regular 250ml) 25

Menu

Service Process

SWOT AnalysisStrength

High-quality food offerings that exceed competitor’s offerings in quality, presentation, and price

Strong Cash Flows

Innovative range of Fast foods under one roof.

SWOT AnalysisWeaknesses

A limited marketing budget to develop brand awareness

Lack of knowledge about our brand in the mind of customers

SWOT AnalysisOpportunities

Growing market with a significant percentage of the target market

Balanced menu

Customer focus

Increase delivery service

Competition from other fast food restaurants

Increasing wage rates directly affect menu prices.

Changing customer demands

Rising raw material costs.

SWOT AnalysisThreats

Marketing StrategyAdvertising

Through local news paper and print media

Interactive Marketing

Get customer’s as well as stake holder’s feedback.

Marketing StrategyMembership Cards

Membership cards for regular and special customers

15 % discount in Restaurant 10 % discount in Banquets

Entertainment Programs Food FestivalMusical and cultural nights Exhibition of arts of different states

Financial Projections

Project EconomicsDescription Details

Internal Rate of Return (IRR) 24%Payback Period (yrs) 4 yearsNet Present Value (NPV) 11,334,969

Cost of CapitalParticulars Rate

Required return on equity 20.00%Cost of finance 15.00%Weighted average cost of capital 17.50%

Capital investmentItem: Cost (Rs.)

Construction or Renovation Cost 1,307,000Dining and Office Furniture/Fixture 542,250Equipment and Machinery 967,000Advance Rent 1,200,000Preliminary Expenses 50,000Working Capital 1,036,000Total 5,102,250

Initial Working CapitalItem 4 months Cost (Rs.)

Utilities 208,000Salaries 258,000Raw Material Inventory 70,000Rent 400,000Total 1,036,000

Space Requirements

Details % (Sq.fee

t)

Size (Sq.feet)

Civil works & Decor. (Cost in Rs./Sq.feet)

Total Construction

CostDining 63% 1250 700 875,000

Waiting 4% 80 700 56,000

Kids Play 3% 70 800 56,000

Kitchen 25% 500 500 250,000

Office 1.50% 30 700 21,000

Stores 3% 70 700 49,000

Total 100% 2000 4100 1,307,000

Furniture & Fixture

Item Details QuantityUnit

Price(Rs.)Total

Price(Rs.)Dining Table – Square (2X2) 25 6,000 150,000Chairs (Standard 14”) 100 1,500 150,000Kitchen Cutlery Set 2 2,500 5,000Dining Cutlery (Plate, Fork, Knife, Spoon, Glass) 150 150 22,500Air Conditioner Split Units (6 Ton) 2 31,000 62,000Hot Water Geyser Large 1 20,000 20,000Halogen Lights 25 250 6,250Wall Lights (Large) 4 1,500 6,000Portable Emergency Light 4 2,500 10,000Generator (1.5 KVA) 1 90,000 90,000Counter Chairs 2 1,500 3,000Office Table & Chair Set 1 10,000 10,000Waiting Chairs for Take Away Customers 5 1,500 7,500Total 322 168,400 542,250

Machinery & Equipment

Item Details QuantityUnit Price

(Rs.)Total Price

(Rs.)

Freezers (12 cf) 3 25,000 75,000

New Broast Machine (15 Pound Capacity) 1 650,000 650,000

Deep Well Frier (Single Valve With 2 Baskets) 2 40,000 80,000Water tank for different varieties and sizes of live floating fishes. 1 33,000 33,000Bin Marry Soup Container (2 Valve With Steel Cabinet) 1 50,000 50,000

Potato Cutter (8mm) 1 3,000 3,000

Pillar (4.5 Kg Potato Peeling Capacity) 1 6,000 6,000

Microwave 1 10,000 10,000

Working Tables 2 20,000 40,000

Keg Racks & Shelves 2 10,000 20,000

Total 15 - 967,000

Utilities Expenses (Per Month)

Utility Expense Per Month Per Year

Electricity 25,000 300000

Water 2,000 24000

Gas 15,000 180000

Telephone 10,000 120000

Total 52,000 624000

Human Resource Requirements

Designation/Type CountMonthly

SalaryTotal Salary

(Year)Manager 1 35000 420000

Kitchen Supervisor 1 24,500 294,000Shift Supervisor (including reliever) 1 18,000 216,000

Cook 2 32,000 384,000

Servers 2 24,000 288,000

Cashier 1 14,000 168,000

Dishwasher 1 11,000 132,000

Cleaner 1 10,000 120,000

Guard 1 10,000 120,000

Total 11 178,500 2,142,000

Raw Material Cost per month

Description Cost (Rs.)Material for fried chicken 82,387Material for burgers 71,165Material for sandwiches 59,772Material for Chinese food 69,323Soft drinks and fries etc. 65,397Packaging material 61,134Total Raw Material Cost 409,178

Income Statement

ParticularsYEAR YEAR YEAR YEAR YEAR2014 2015 2016 2017 2018

Revenue 10,015,200 11,517,480 13,245,102 15,231,867 17,516,647

NET SALES (15%increase/year) 10,015,200 11,517,480 13,245,102 15,231,867 17,516,647

RAW MATERIAL COST(10% increase/year) 4,910,141 5,401,155 5,941,270 6,535,397 7,188,937

LABOR & SALARIES(10% increase/year) 2,142,000 2,356,200 2,591,820 2,851,002 3,136,102

UTILITIES 624,000 686,400 755,040 830,544 913,598

COST OF SALES 7,676,141 8,443,755 9,288,130 10,216,943 11,238,637

GROSS PROFIT 2,339,059 3,073,725 3,956,972 5,014,924 6,278,010General Administrative & selling expenses

RENT EXPENSE(increase 10% per annum) 1,200,000 1,320,000 1,452,000 1,597,200 1,756,920

OFFICE AND MESCELLANEOUS EXPENSE(increase 10% per annum) 360,000 396,000 435,600 479,160 527,076

AMORTIZATION EXPENSE 10,000 10,000 10,000 10,000 10,000

DEPRECIATION EXPENSE(10 % per year ) 281,625 253,463 228,116 205,305 184,774

MAINTENANCE EXPENSE 21,758 19,582 17,624 15,861 14,275

SUB TOTAL 1,873,383 1,999,045 2,143,340 2,307,526 2,493,045OPERATING INCOME / EBIT 465,676 1,074,681 1,813,632 2,707,398 3,784,965

FINANCIAL CHARGES (15% PER ANNUM) 357,889 298,344 229,228 149,001 55,878

INCOME BEFORE TAX / EBT 1,463,787 2,267,937 3,225,163 4,363,233 5,714,407

TAX(25% of EBT) 365,947 566,984 806,291 1,090,808 1,428,605

NET SALES (15%increase/year) 1,097,840 1,700,953 2,418,873 3,272,424 4,285,805

The revival Restaurant is provide customer the best services or products that customers want,

“Where the food's the star.Revival's. Come on Home.

Delicious Food. To fit your lifestyle.”

Conclusion

THANK YOU