PROPOSAL FOR OPENING A NEW RESTAURANT

AT AL YAMAMAH UNIVERSITY CAMPUS

PREPARED FOR:
DR. HUSSAIN AL-FURAHY
PRESIDENT OF AL-YAMAMAH UNIIVERSITY

SUBMITTED BY:
FARIS AL-AMODI
SAMER KHALED
HASSAN KHAWAJA

MAY 05, 2014

ABSTRACT
Ever since 2011, Al-Yamamah has been lacking restaurant chains. Having only one
restaurant in Al-Yamamah University creates lack of diversity of options for both
students and the staff. The proposal is to open a new restaurant on Al-Yamamah
University campus so students and the staff members would be satisfied.

TRANSMITTAL LETTER
YU Students
Al-Qassim Road
Riyadh, Saudi Arabia
Mob. +966-5-655-5555
Fax : +966-11-456-7890
April 17, 2014
Dr. Hussain Al-Furaihy
President of YU
City Of Riyadh
111 Riyadh Street
Dear Sir,
I am attaching a proposal for opening a new restaurant in YU to solve an issue for
students and staff pertaining diversity of restaurants. We ask that our proposal for
opening a new restaurant be taken into consideration as most of the student and staff
requires it.
The recommended improvements are somewhat major. I am attaching a report from
Samer and Hassan, YU Students, outlining specification and suggested improvements.
The procedure of opening a new restaurant should not take more than 2 months.
We will appreciate if you take this into consideration.
Please contact me at +966-5-655-5555 to discuss this matter in greater detail if required.

Sincerely,

Faris Al-Amodi
Class President

TABLE OF CONTENTS

PROBLEM WITH DIVERSITY OF RESTAURANT AT YU CAMPUS .................. 1

NEEDED EQUIPMENT / PERSONNEL ....................................................................... 6
SCHEDULE....................................................................................................................... 7
BUDGET ............................................................................................................................ 9
BENEFITS ....................................................................................................................... 11
CONCLUSION ............................................................................................................... 12
REFERENCES ................................................................................................................... I
APPENDICES .................................................................................................................. II
SURVEY ....................................................................................................................... II

ii

LIST OF FIGURES
Figure 1 : YU Campus Map ............................................................................................. 4
Figure 2 : Library & Cafeteria Building : Ground Floor ......................................... 5

LIST OF TABLES
Table 1 : Needed Equipment/Personnel Table ............................................................... 6
Table 2 : Project Schedule ................................................................................................ 8
Table 3: Cost Table ......................................................................................................... 10

iii

Problem with diversity of restaurant at YU Campus

Currently, the YU Campus has one restaurant Subway and one caf Dr.Cafe. The
students and staff members have limited diversity of options to choose from both cafs
and restaurants; they get tired of having the same menu every day and actually force them
to go outside of the university campus to try something different. Such situation creates a
big crowd at lunch time, and also forces the students and staff members not to have lunch
at YU Campus. We made a survey which reports that 90% of the people on campus are
un-satisfied by the amount of restaurants available.
Another problem is that average amount of money spent by the students and staff is S.R
20/- on a meal; which costs more than other the average amount of money spent in other
restaurants. Other restaurants have a buffet option; they have different dishes every day.
The cost range is from S.R 25/- to S.R 50/-.
YU has a limited amount of income resulting from only accumulating revenue from one
restaurant; which only comes from the rent of the Subway restaurant and Dr.Cafe
caf.

The following problems have been identified at YU Campus:

1. Diversity of options in the food menu.
2. Crowded queue during lunch time.
3. Having the same menu causes redundancy of food to both the students and staff.
4. Excess of time consumed at the restaurants queue.
5. Overpriced meals.
6. YU accumulates a limited amount of revenue generated from only one restaurant.

Proposed Solution
Pertaining the problems at hand, we have developed a solution for YU which will
cater the students and staff to have diversity of options in the food menu. The solution
involves opening a restaurant which have a buffet option charging their customers
S.R 20/- per plate to sustain low prices and customer satisfaction on different days of
the week. The restaurant will provide a diversity of dishes to avoid taste redundancy.
According to survey which we have taken at the campus as mentioned in the
appendences; Most of the students and staff have the following preferences for food
options:
1. Arabian (30%)
2. Chinese (20%)
3. Barbeque (20%)
4. Indian, Italian, Fast food, etc. (10%)
This gives a good idea; how YU can select different dishes in the buffet at different days
of the week to serve its customers.
Furthermore, the university will benefit from the ROI (return on investment) / revenue
generated from sales of the restaurant, and from the rent of the other Subway.
This will also solve the issue of staff and students from going outside the university and
will save time and money.

YU has a good amount of space which can be used to open a new restaurant. There is
enough space to handle the amount of students and staff members on the campus. The
restaurants and cafeteria are located at the Library & Cafeteria Building which is
shown in the Figure 1

Figure 1 : YU Campus Map

The ground floor plan for the Library & Cafeteria building in Figure 2 shows the
current areas YU can use to open the new restaurant and how they can efficiently utilize
the space to adjust the sitting.

Figure 2 : Library & Cafeteria Building: Ground Floor

Needed Equipment / Personnel

The following table represents the number of equipment and personnel needed to run the
restaurant.
Personnel
S/No

Description

Qty

Waiters

2 Persons

Cashier

1 Person

Manager

1 Person

Accountant

1 Person

Chef

2 Persons

Janitor

1 Person
Equipment

S/No

Description

Qty

Oven

1 Unit

Microwave

1 Unit

Soft Drink Machine

1 Unit

Fridge

1 Unit

Tables

10 Pcs

Chairs

400 Pcs

Sets of utensils

100 Pcs

Employee Bathroom

1 Unit

Table 1 : Needed Equipment/Personnel Table

Schedule
In order to launch this new restaurant, the process will require seven phases.
The first phase is concerned with hiring and recruiting the employees which will require
about two weeks. In that period of time, personal interviews should be held in order to
hire those who fit the profile.
The second phase will be the preparation of the space and required activities such as
cleaning up the floor and renovation.
The third phase will involve the buying of the needed equipment such as the oven, plates
etc.
The fourth phase will begin with designing the sign board of the restaurant to fit the
marketing criteria.
The fifth phase will begin with the decoration of the restaurant which should make the
restaurant become appealing.
The sixth phase of the project requires YU to form a contract with a food supplier whose
food fits the requirements of cooking Chinese and Arabic foods, yet at a reasonable price.
The final phase will be the grand opening of the restaurant.

The following table shows the schedule for the phases and the number of days it will take
to launch the restaurant.
Project Schedule
Phases

Completion Time

Phase 1 Hiring Employees

7 - 14 working days

Phase 2 Preparing the space for the restaurant

2 Working Days

Phase 3 - Buying Equipment for the restaurant

5 Working Days

Phase 4 Designing & Ordering all the

5 Working Days

necessary sign boards

Phase 5 Decorating and Furnishing the

7 Working Days

restaurant
Phase 6 Form a Contract with the necessary

5 Working Days

food supplier
Phase 7 Launching the restaurant

1 - 2 Working Days

Table 2 : Project Schedule

Budget
The designing fee includes wallpaper, paint, uniforms. Total electrical costs cover the
total hand work to get everything up and ready regarding electricity. It also includes
labor. The technical costs should cover all the finishing touches. All necessary and
specific details can be found on the previous page for it has all the quantitative
information.
The monthly recurring costs will require a total of SR. 33,000/- , that should cover the
employees and the facilities among other aspects. The initial cost for kick starting the
business is SR. 40,000/- which will cover the needed equipment, the labor, and other
needs shown in more detail in following table.
Recurring Costs : Monthly
Description

Cost

Qty

Total Cost

Waiters

S.R 4,000/-

2 Persons

S.R 8,000/-

Cashier

S.R 2,500/-

1 Persons

S.R 2,500/-

Manager

S.R 5,000/-

1 Person

S.R 5,000/-

Accountant

S.R 4,500/-

1 Person

S.R 4,500/-

Chef

S.R 3,500/-

2 Person

S.R 7,000/-

Janitor

S.R 1,400/-

1 Person

S.R 1,400/-

Water & Electricity

S.R 500/-

S.R 500/-

Food Supplier

S.R 4,100/-

S.R 4,100/-

Grand Total

S.R 33,000/-

Initial Cost
Description

Cost

Qty

Total Cost

Oven

S.R 3,000/-

1 Unit

S.R 3,000/-

Microwave

S.R 500/-

1 Unit

S.R 500/-

Soft Drink Machine

S.R 1,000/-

1 Unit

S.R 1,000/-

Fridge

S.R 1,500/-

1 Unit

S.R 1,500/-

Tables

S.R 1,000/-

10 Pcs

S.R 10,000/-

Chairs

S.R 45/-

400 Pcs

S.R 8,000/-

Utensils

S.R 40/-

100 Pcs

S.R 4,000/-

Bathroom

S.R 3,000/-

1 Unit

S.R 3,000/-

Design

S.R 6,000/-

S.R 6,000/-

Total Electricity

S.R 1,000/-

S.R 1,000/-

S.R 2,000/-

S.R 2,000/-

Cost
Labor
Grand Total

S.R 40,000/-

Table 3: Cost Table

10

Benefits
The main benefit of the proposal improvement is that students and staff would have more
options to eat, and the university will increase its income.
The existing issue of having one restaurant for the students and staff is faulty because
they want to change what they eat. After opening the new restaurant, students and staff
members would feel satisfied with having diversity in the food menu.
Another benefit would be that more students and staff members would decide to eat on
campus due to the elimination of crowd in the lunch hall, which is caused by the current
restaurant.
The expected initial cost is reasonable given the seriousness of the situation, and the
proposed improvements will increase the income for the university by approximately
20%.

11

Conclusion
Currently, YU has only one restaurant which is Subway. It sells sandwiches and soft
drinks; which limits the students and the staff to have diversity in their menu and usually
causes a crowd during lunch time. YU has been proposed to open a new restaurant which
will provide diversity in their menu for food and resolve this issue. These improvements
will not only benefit the students and the staff, but it will also create revenue for YU.

12

References

IKEA Stores
<http://www.ikea.com>
Personal Interview with Abdullah Al-Yousef
<Owner of Shaikh Al-Fateer>
Contact Information:
Mob. +966-5-621-43-215

Appendices
Survey
Q1) Are you a student in YU?
YES = 70%

NO = 30%

Q2) Are you a staff member in YU?

YES = 30%

NO = 70%

Q3) Do you usually have lunch on campus?

YES = 80%

NO = 20%

Q4) Are you satisfied with the amount of restaurants in YU?

YES = 10%

NO = 90%

Q5) Would you like there to be more restaurants?

YES = 90%

NO = 10%

Q6) Are you satisfied with the amount of money you pay in order to have lunch on
campus?
YES = 50%

NO = 50%

Q7) What type of new restaurant would you like to see on campus?
Chinese = 20%

Arabian = 30%

Indian = 10%

Italian = 10%

Fast Food = 10%

Barbeque = 20%

II