AFC Proposal

RESEARCH PROJECT ON AFC
Topic:
RESEARCH PROPOSAL
Submitted to:
Prof: Sajid Javed Akbar
Submitted by:
Imran Sanaullah 367

Saad Hafeez 376
Asif Ali 344
Ahsan Ali 351
Qsim Ali 347
Rehan Shahid 381
B.COM (Hons)5th semester, section: F
Topic: ..................................................................................................................................1
Submitted to:........................................................................................................................1
Submitted by:.......................................................................................................................1
EXECUTIVE SUMMARY..................................................................................................3
1
HAILEY COLLEGE OF COMMERCE, P.U. LAHORE
INTRODUCTION: .........................................................................................................3
Restaurants’ MISSION STATEMENT...............................................................................4
FUTURE PLANNING.........................................................................................................5
AN OVERVIEW OF RESTAURANT.................................................................................5
ADDRESS:......................................................................................................................5
MAIN COMPETITOR........................................................................................................5
OBSERVATION...................................................................................................................6
PRELIMINARY DATA COLLECTION.............................................................................7
Lahore:.............................................................................................................................8
Faisalabad:.......................................................................................................................8
PROBLEM DEFINITION...................................................................................................9
RESEARCH OBJECTIVE............................................................................................10
OBJECTIVES OF THE STUDY...................................................................................10
THEORETICAL FRAMEWORK.....................................................................................10
INTERACTION OF VARIABLES....................................................................................11
GENERATION OF HYPOTHESIS...................................................................................12
RESEARCH DESIGN.......................................................................................................13
SAMPLING:..................................................................................................................13
TOOLS FOR DATA COLLECTION:............................................................................13
DATA ANALYTICAL TECHNIQUE............................................................................14
DATA ANALYSIS:........................................................................................................14
ANALYSIS OF DATA COLLECTED FROM CUSTOMERS.........................................15
Question # 1: .................................................................................................................15
"Do you Prefer Fast Food over Regular Food?"............................................................15
INTERPRETATION:.....................................................................................................16
Question # 2: .................................................................................................................16
INTERPRETATION:.....................................................................................................17
Question # 3: .................................................................................................................17
DATA ANALYSIS.............................................................................................................18
DATA ANALYSIS.............................................................................................................20
DATA ANALYSIS.............................................................................................................21
FINDINGS AND CONCLUSION.....................................................................................31
SUGGESTIONS................................................................................................................32
BIBLIOGRAPHY..............................................................................................................33
2
EXECUTIVE SUMMARY
INTRODUCTION:
We were directed to prepare a Research Proposal by our respectable teacher Professor
SAJID JAVED AKBAR. We decided to conduct Research on Al-Najam Fried Chicken
(AFC), which was facing a problem of declining rate of customers as compared to its
main competitor McDonald’s. The Head Office of AFC is situated on 95-Main Market,
Samanabad, Lahore. As AFC is providing its products and services all over the country
through its branches and franchises so it is a fast food restaurant growing very rapidly
within a strong competition.
For the purpose of finding solution to this problem we collected data by using multiple
methods of data collection. To know the reasons for declining trend to the AFC .We got
the questionnaires filled up from people of different areas. The questionnaires was about
asking the people about that why they prefer fast food and how they rank the fast food
restaurants, either they are price conscious or quality conscious, or their preferences to
products of restaurants are on the basis of easy access, advertisement, special packages,
environment provided by the restaurant, service provided by the staff or presentation of
the products. Open-ended questions were also asked for further clarifications.
3
The time was mid 90's. Fast food restaurants were booming in Pakistan.
Quality fast food in Pakistan was outrageously expensive and on a handful of
families could afford to go there. No middle class family could think of taking
their children to such big food chains. This was the time when AFC (Al-Najam
Fried Chicken) opened its first restaurant at Saman -Abad, Main Market in Lahore.
Our goal and aim was very simple. To make the quality fast food available to all
those people who liked the fast food but couldn't dare to afford.
Alhamdulillah, with the grace of Almighty Allah, public response was
overwhelming. AFC became the fastest growing fast food chain in Pakistan. At
present time, AFC has more then thirteen branches Nationwide including Mall
Road, Railway Station, Abbot Road, Allama Iqbal Town, Fortress and Township. It
has also opened in Faisalabad, Gujrat, Rawalpindi, Abbotabad, Peshawar, Murree
and Sargodha.
At AFC, we work hard and work right. Our work force consists of very
talented and experienced personnel. These workers and tram members are
skillfully trained to follow all hygienic procedures. Our disciplined staff is taught
to respect its customers and to provide the fastest services. We are proud that we
use frozen chicken, which is hygienic, healthy and safe.
We ensure our patrons the freshness of food all the time every time when visit
AFC.
Restaurants’ MISSION STATEMENT
4
Our mission is to make the quality fast food available to all those people who liked
the fast food but couldn't dare to afford.
We did so without compromising the highest standards of food industry. We, AFC, not
only use the best raw materials available but we also provide the best of food at a very
reasonable and competitive price. All our
foods are processed and prepared using of the art machines and equipments and we
always used to say that,
“No Compromise On Quality”
FUTURE PLANNING
Our future planning is to provide best quality fast food for all kind of customers. In near
future our top level management has decided to increase its business area and wants to
capture more and more market that it already has but not fully captured by opening
further branches. This is why the management is keen to introduce many new varieties of
fried chicken which is the major Item of fast food restaurants.
AN OVERVIEW OF RESTAURANT
ADDRESS:
AL-NAJAM FRIED CHICKEN (AFC).
Main Boulevard, Allama Iqbal Town, Lahore.

Telephone: +92-42-7553512
Fax: +92-42-7553511
E-Mail: afc786@hotmail.com
Web site: http://www.afc.com.pk
MAIN COMPETITOR
Ray Korc opened the first McDonald’s restaurant in 1955 in the United States of
America. He offered a limited menu of high quality food served fast in spotless
5
surroundings .McDonald’s QSC&V was (quality, service, cleanliness, and value) was a
hit and in 2001 it had more than 29000 restaurants in 121 countries. McDonald’s business
structures take a variety of forms, with 66 percent of the restaurants being franchised. The
reputation of McDonald’s was also very good because of it quality, service, cleanliness
and value but it was a costly fast food restaurant to be affordable only by the upper class
people. So, when KFC, Pizza Hut and AFC were introduced in the mid 90’s the fame of
McDonald’s come to the ground and a great competition was generated among these fast
food restaurants.
So, a branch of McDonald’s just near to the AFC branch in Allama Iqbal Town is
the main competitor. As well known the McDonald’s an international well known fast
food restaurant with which AFC is competing.
OBSERVATION
The management of AFC observed that they are facing a problem that the number of
customers they had in the past is decreasing over the years. They also felt that the demand
of their some products is declining. This problem of declining the customer ratio was
6
especially with some chicken varieties. After consulting the management we got the last
few years’ sales documents and found the difference in sales.
YEARS SALES(Millions)
2000 16.8
2001 16.1
2002 15.5
2003 15.1
2004 14.5
2005
14.1
17.5
17
16.5
16
15.5
15
14.5
14
13.5
13
12.5
2000 2001 2002 2003 2004 2005
SALES
PRELIMINARY DATA COLLECTION
For the purpose of preliminary data gathering first we visited the Restaurant frequently
and collected some information about the Restaurant. After due verification, we come to
know that AFC is facing some problems like declining customer ratio etc. After collecting
necessary data we developed short questionnaires by keeping “declining customer ratio”
7
as a dependent variable and by keeping prices, quality, service, environment, easy

access, advertisement and goodwill as independent variable.
During our research, the sample for our questionnaires was: 60 out of which 50% males
and 50% were females.
It was quite difficult to collect the data from respondents but we tried our best to guide
our respondents and collect the right form of data.
For collecting the data we visited the following areas of Lahore and Faisalabad City.
Lahore:
 Allama Iqbal Town
 Samanabad
 Mall Road
 Fortress Stadium
 Abbot Road
Faisalabad:
 D-Ground
 Susan Road
 Iqbal Stadium
We use these areas for our research purpose because the people in these areas prefer fast
food to be eaten. There exists more competition among fast food restaurants in these
areas because more fast food restaurants are there in these areas. We employed the
different method for collecting the data such as;
 MANAGEMENT questionnaire
 PUBLIC QUESTIONNAIRE
 PERSONAL OBSERVATION
 STRUCTURED AND UNSTRUCTURED INTERVIEWS
 SURVEY
8
PROBLEM DEFINITION
The management of the AFC observed that they are facing the problem of declining
customer ratio due to their competitor i.e. McDonalds. After studying the data gathered in
preliminary data gathering and going through the documents and sales record we found
that it is true that the customer ratio is decreasing gradually from last couple of years.
9
RESEARCH OBJECTIVE
Our Research objective is to find the reason of declining customer ratio of AFC and find
the ways to increase the customer ratio of AFC. So we used different techniques and
methods to boost their sales.
OBJECTIVES OF THE STUDY

The objective of our research is to find out the solution to the problem of the AFC after
observing the Company activities and by applying scientific research methods;
1. To find out the customer satisfaction
2. To find how can we increase the number of customers?
3. To find whether the quality of products is improved or not
4. To know the opinion of customers about prices, quality, easy access, attitude of
staff and waiters, goodwill, competitors advertisement and environment of the
Restaurant.
5. To know whether the customers are inclined towards the fast food or not
6. To know whether the price matches the quality of products, etc.
THEORETICAL FRAMEWORK
In order to formulate theoretical framework, first we are to list and label the variables of
the study.
LIST Labels
10
Price Independent
Quality Independent
Easy Access Independent
Goodwill Intervening
Advertisement Independent
Environment and Service independent
Declining Customer Ratio Dependent
The dependent variable is “Declining Customer Ratio”, which is the variable of primary
interest, to which the following Independent variables may cause to influence i.e,
1. Price
2. Quality
3. Easy Access
4. Advertisement
5. Environment and Service provided
6. Goodwill as Intervening Variable.
Increase in Prices of products items and products ultimately cause less attraction of
people towards Restaurant. Due to lack in the quality of products and products items
people are dissatisfied. Due to uneasy access and defame of restaurant people are
unwilling to visit a restaurant. Lack of advertisement does not introduce restaurant in the
far away areas. That’s why people would join other restaurant products unknowingly.
Finally, less provision of the special packages also increases the dissatisfaction of the
customers and ultimately declining the customer ratio.
INTERACTION OF VARIABLES
INTERVENING VARIABLE
PRICE GOOD
WILL
11
ENVIRONMENT
SERVICE CUSTOMER
RATIO
SPECIAL
PACKAGES DEPENDENT VARIABLE
EASY ACCESS
INDEPENDENT MODERATING VARIABLES
VARIABLES
QUALITY ADVERTISEMET
GENERATION OF HYPOTHESIS
We can develop these Hypotheses between dependent and independent variables:
Ho: There is no relationship between Price and Customer Ratio

HA: The Price affects the Customer ratio
Ho: There is no relationship between the Quality and Customer ratio

HA: Better the Quality more the Customer ratio
12
Ho: There is no relationship between Easy Access and Customer ratio

HA: People will go to the nearer Company
Ho: There is no relationship between Goodwill of the Company and

customer ratio.
HA: People used to visit the Most Famous Restaurant
Ho: Advertisement does not Affect the Customer ratio

HA: More the Advertisement more the Customer ratio
Ho: Special Packages do not attract the people towards Company

HA: Special Packages attract the people very much
RESEARCH DESIGN
SAMPLING:
During our Research work we chased about 60 respondents as sample size and selected
the different area of Lahore and Faisalabad cities as broad Problem Area of our study.
TOOLS FOR DATA COLLECTION:

1. Information booklets of Company
2. Personal interviews of Management
13
3. Close ended and Open ended Questionnaires from general public visiting AFC as
well as McDonald’s
4. Web site of AFC i.e. www.afc.com.pk
DATA ANALYTICAL TECHNIQUE

PERCENTAGES
CHARTS AND GRAPHS
DATA ANALYSIS:
We have collected scientific data from general people, by personnel interviews
and questionnaires and also the literary survey (Booklets and Broachers) and last year’s
record. After that we have analyzed the data by using statistical tools i.e. averages,
percentages and proper graphical presentation of data has been applied. We have chosen
the new technique to present the data analyzed through charts and graphs. This will make
the whole analysis easy to understand and attractive
14
ANALYSIS OF DATA COLLECTED

FROM CUSTOMERS
Question # 1:
"Do you Prefer Fast Food over Regular Food?"
SCHEDULE
Views Percentage
Strongly agree 20%
Agree 45%
Neither Agree nor disagree 10%
Disagree 15%
Strongly disagree 10%
PREFERENCE OF FAST OFFD
50%
strongly agree
40%
agree
30%
neither agree not
20% disagree
diagree
10%
0% strongly disagree
15
INTERPRETATION:
We found that 20% people are strongly prefer the fast food over regular food and 45% of
the people were those who were prefer the fast food normally over the regular food
because less time consume in eating fast food.
Question # 2:
“Do you know about AFC?”
SCHEDULE:
Response Yes No
Percentage 90% 10%
GRAPHICAL PRESENTATION
knowledge about AFC
100%
yes
no 50%
0%
yes no
16
INTERPRETATION:
We found that 90% of the people agree that they know about the AFC. There are 10%
people in the society which have no knowledge about the AFC and most of these people
were of old aged. This shows that AFC is very well known among the people of the area
of our sample population.
Question # 3:
“How many times do you visit AFC in a day?”
SCHEDULE:
Times 1 2 3
Percentage 85% 15% 0%
No Of Times To Be Visited
100% 85%
80%
60%
40%
15%
20%
0%
0%
3 2 1
INTERPRETATION
17
Through our survey from general people we found that 85% people are those who visit
AFC only one time in a day and 15% are those who visit AFC two times in a day and
there were no people who visit AFC three times in a day.
DATA ANALYSIS
Question #4:
“Specify your Fast food Restaurant preference?”
SCHEDULE
Restaurants Percentage
AFC 30%
McDonald’s 45%
OTHERS 25%
50%
40%
AFC
30%
McDonald's
30%
45% 25% OTHERS
20%
10%
0%
INTERPRETATION:
Our survey reveals that 30% people give their preference to AFC and 45% people give
priority to McDonald’s and 25% are the people who like visit other fast food restaurants.
18
Question#5:“On which basis do you prefer fast food restaurants?”
SCHEDULE
Basis of preference Percentage

Price 14%
Quality 76%
Environment 6%
Service 4%
80% 76%
60%
40%
20% 14%
6% 4%
0%
price Quality Envi. Service
INTERPRETATION
19
According to the data gathered 14% people are those by considering price more
important factor where as 76% prefer the quality of the products and 6% prefer
restaurants because of the environment provided by restaurants and 4% people prefer
restaurant because of the service provided by the restaurants because of they are more
price conscious.
DATA ANALYSIS
Question # 6 :
Are you satisfied by the Price offered by the AFC as
economical?
SCHEDULE
Response
Yes 55%
No 45%
Satisfaction Over Price
0.8 45%
0.6 no
yes
0.4
55%
0.2
20
INTERPRETATION
55% of the people show their complete satisfaction over price offered by the AFC and
45% of the people are those who show their dissatisfaction over the price offered by the
AFC.
DATA ANALYSIS
Question # 7:
“Does the quality of the products offered by the AFC come up
to your expectations comparatively?”
SCHEDULE:
Views Percentage
AFC McDonalds Others
Yes 65% 80% 37%
No 35% 20% 63%
GRAPHICAL PRESENTATION:
Relation Between Quality and

expectations
21
yes NO
80%
NO
60%
40%
20% yes
0%
AFC McDonald's Others
AFC McDonald's Others
yes 65% 80% 37%

NO 35% 20% 63%
INTERPRETATION
Our survey shows that the 65% of the people said that the quality of
products provided by the AFC is fulfilling their expectations 35%
DATA ANALYSIS
Question #8 “Do you think AFC is providing maximum favorable and
healthy environment to its customers?”
SCHEDULE:
Views
AFC
Yes 59%
No 41%
GRAPHICAL PRESENTATION:
22
Favourable Environment
59%
60%
50% 41%
40%
30% Yes
No
20%
10%
0%
AFC
INTERPRETATION:
After data analysis it was found that 59% people are those who consider that the
environment provided by AFC is the best and no need to improve it but as well known
saying is that the chances of improvement are always there so 41% people think that
more improvements should be made in it.
DATA ANALYSIS
Question #9 : “Which fast food restaurant provides more variety of
products?”
SCHEDULE:
Company Percentage
Name
AFC 41%
McDonald’s 45%
Others 14%
23
50%
45%
41%
40%
30%
20%
14%
10%
0%
AFC Others
AFC McDonald’s Others Peercentage
INTERPRETATION
The results show that 41% agree with the fact that AFC provides more
variety of products but 45% people say that McDonald’s provides more
variety of Products and only 14% people say that other companies like
KFC provides more variety product.
DATA ANALYSIS
Question #10 : “Do you think that special packages play an important
role for the promotion of restaurant’s sales?”
SCHEDULE
Views
Yes 82%
No 18%
24
Importance of Special Packages
100%
18%
80%
60%
NO
40% 82% YES
20%
0%
opinion
INTERPRETATION
The above analysis shows that 82% people think that special packages
play an important in the promotion of the sales of the restaurants but only
18% percent people consider it as regardless.
DATA ANALYSIS
Question #11: “Which restaurant offered more special packages in the last
two years?”
SCHEDULE:
Company Percentage
Name
AFC 35%
McDonald’s 39%
Others 26%
25
40% 39%
35% 35%
30%
25% 26%
20%
15%
10%
5%
0%
s
C
rs
d'
AF
e
al
th
on
O
Percentage
cD
special Pacages offered in last two years

M
INTERPRETATION
The answer shows that the people are more responsive to the special
packages offered by the Companies. So, a Company offering more special
packages is more attractive to the people.
DATA ANALYSIS
Question#12 : “How much importance you give to easy access(near) of
restaurants ?”
SCHEDULE
Views
Very Important 49%
Important 33%
Normal 18%
26
50%
40%
30%
20%
10%
0%
Very Im portant Norm al
Im portant
INTERPRETATION
From the above data we analyze that easy access is very important
indicator for the popularity of a Company. As it is obvious from the data that
44% of the samples consider it very important.
DATA ANALYSIS
Question#13: “Due to which factor you prefer McDonald’s over AFC?
SCHEDULE
Views
Quality 67%
Price 9%
Variety 14%
Service 10%
27
Factors Of Preference
80%
60%
40%
67%
20%
9% 14% 10%
0%
Quality Price Variety Service
INTERPRETATION
So, it is very clear from above graphical representation of the data analyzed
that most of the people prefer the McDonald’s due to the better quality over
the AFC, some on the basis of price, variety and some service.
DATA ANALYSIS
Question#14 : “How would advertisement play an important role for the
success of a Restaurant?”
SCHEDULE
Views
Very Important 61%
Important 22%
Normal 27%
28
Importance of the Advertisement of

product
0.8
0.6 61%
very importat
0.4 impotant
27% Normal
22%
0.2
INTERPRETATION
So from above data analysis we see that 61% people think that the advertisement
of the product is very important for sale promotion and according to 22% it is on
important and 27% of the people think it normal promotional activity.
DATA ANALYSIS
Question#115 : In your opinion should AFC start home delivery service
or not?”
SCHEDULE
Comments Percentage
yes 65%
No 35%
29
Comments On Home Delivery

Service
80%
65%
60%
35% No
40%
yes
20%
0%
INTERPRETATION
After collecting the data, we see that the 65% of the people were in
right of starting home delivery service and 35% think that visiting restaurant
is also a source of recreation so it may be but it is not most essential.
30
FINDINGS AND CONCLUSION

The main purpose of our Research work for the preparation of Research Proposal was to
analyze the products of both the restaurants and to find the reasons, why the customers’
ratio of AFC is declining day by day and to know the reason that why McDonald’s is
more appreciated by the people as compared to AFC. From our research analysis we
found that McDonald’s provides more special packages and offers more quality products
to attract the customers.
On the basis of our data analysis we see that people also like AFC as well and it is
growing rapidly in the race and strong competition of Fast food restaurants but yet its
percentage is less as compared to McDonald’s on the basis of various factor which are
discussed one by one in the Data Analysis by graphical and tabular representation of data
gathered by different methods.
So we can conclude over here that there were various independent variable like quality of
the products provided, prices of the products offered, special packages offer by the
restaurants for sale promotion, service provided by the staff and environment provided by
the restaurants counts a lot due to which the dependent variable i.e. Decline in Customer
ratio was badly effected.
31
SUGGESTIONS
After the data analysis we come to the conclusion the there is chances and also need to
improve the quality, service, prices of products in this regard the management should
made following decisions and activities to get rid of this problem.
 Management should improve the quality of its products

 The management should introduce the new varieties of products especially
some new fried chicken varieties.
 Company management should offer more special packages.
 Strong Advertisement Policy should be adopted to make the people familiar
with the restaurant particularly in developed and forward areas. For this
purpose, Print Media and Electronic Media should be adopted. Because the
advertisement plays an important role in the promotion of sales.
 The management should give instructions that the presentation of the food to
the customers should be decorative and attractive to attract customer.
 The management should try to cut down the prices up to some extent so that
the middle as well as lower middle class may also enjoy the standard fast
food restaurants.
32
BIBLIOGRAPHY
During the research process, besides our practical research, we also have consulted some
book about our practical research for the preparation of this proposal in an effective
manner. A list of all references, which has been consulted and the data has been derived
from, are given as under:
 Class Notes by PROFESSOR SAJID JAVED AKBAR, during our

class lectures
 Special Instructions and guideline by PROFESSOR SAJID JAVED
AKBAR
 Main library of University of the Punjab, Quaid-e-Azam Campus, Lahore.
 Library Hailey College of Commerce, University of the Punjab, Lahore
 The books of Donald R. Cooper Florida Atlantic University & C. William Emory.
 Field surveys through which data has been collected from different types of
questionnaires and different areas Lahore and Faisalabad.
 (AFC) Restaurant’s Booklet and braushers
 http://www.afc.com.pk
33

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RESEARCH PROJECT ON AFC

Imran Sanaullah 367

B.COM (Hons)5th semester, section: F

Restaurants’ MISSION STATEMENT

“No Compromise On Quality”

Main Boulevard, Allama Iqbal Town, Lahore.

PRELIMINARY DATA COLLECTION

as a dependent variable and by keeping prices, quality, service, environment, easy

OBJECTIVES OF THE STUDY

INDEPENDENT MODERATING VARIABLES

Ho: There is no relationship between Price and Customer Ratio

Ho: There is no relationship between the Quality and Customer ratio

Ho: There is no relationship between Easy Access and Customer ratio

Ho: There is no relationship between Goodwill of the Company and

Ho: Advertisement does not Affect the Customer ratio

Ho: Special Packages do not attract the people towards Company

TOOLS FOR DATA COLLECTION:

DATA ANALYTICAL TECHNIQUE

ANALYSIS OF DATA COLLECTED

PREFERENCE OF FAST OFFD

knowledge about AFC

Question#5:“On which basis do you prefer fast food restaurants?”

Basis of preference Percentage

Satisfaction Over Price

Relation Between Quality and

AFC McDonald's Others

yes 65% 80% 37%

AFC McDonald’s Others Peercentage

Importance of Special Packages

special Pacages offered in last two years

Importance of the Advertisement of

Comments On Home Delivery

FINDINGS AND CONCLUSION

 Management should improve the quality of its products

 Class Notes by PROFESSOR SAJID JAVED AKBAR, during our

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