Fast Food Restaurant PDF

Pre-Feasibility Study
FAST FOOD RESTAURANT
Small and Medium Enterprises Development Authority

Ministry of Industries & Production
Government of Pakistan
www.smeda.org.pk
HEAD OFFICE
4th Floor, Building No. 3, Aiwan-e-Iqbal Complex, Egerton Road,
Lahore
Tel: (92 42) 111 111 456, Fax: (92 42) 36304926-7
helpdesk@smeda.org.pk
REGIONAL OFFICE
PUNJAB
REGIONAL OFFICE
SINDH
REGIONAL OFFICE
KPK
REGIONAL OFFICE
BALOCHISTAN
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Aiwan-e-Iqbal Complex,
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5TH Floor, Bahria

Complex II, M.T. Khan Road,
Karachi.
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Fax: (021) 5610572
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Ground Floor
State Life Building
The Mall, Peshawar.
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December 2006
Fast Food Restaurant
DISCLAIMER
The purpose and scope of this information memorandum is to introduce the subject matter
and provide a general idea and information on the said area. All the material included in
this document is based on data/information gathered from various sources and is based on
certain assumptions. Although, due care and diligence has been taken to compile this
document, the contained information may vary due to any change in any of the concerned
factors, and the actual results may differ substantially from the presented information.
SMEDA does not assume any liability for any financial or other loss resulting from this
memorandum in consequence of undertaking this activity. Therefore, the content of this
memorandum should not be relied upon for making any decision, investment or otherwise.
The prospective user of this memorandum is encouraged to carry out his/her own due
diligence and gather any information he/she considers necessary for making an informed
decision.
The content of the information memorandum does not bind SMEDA in any legal or other
form.
DOCUMENT CONTROL
Document No.
PREF-11
Revision
Prepared by
SMEDA-Sindh
Approved by
Provincial Chief Sindh
Issue Date
December, 2006
Issued by
Library Officer
PREF-11/December, 2006/
1
1. 1
PROJECT PROFILE
Purpose of the Documents
This document is developed to provide the entrepreneur with potential investment

opportunity in setting up and operating a medium sized fast food restaurant offering a
variety of food items to the general public. This pre-feasibility gives an insight into various
aspects of planning, setting up and operating a fast food restaurant for the general
populace. The document is designed to provide relevant details (including technical) to
facilitate the entrepreneur in making the decision by providing various technological as
well as business alternatives. The document also allows flexibility to change various
project parameters to suit the needs of the entrepreneur.
1. 2
Project Brief
Fast food is food which is prepared and served quickly at outlets called fast-food
restaurants. It is a multi-billion dollar industry which continues to grow rapidly in many
countries. A fast-food restaurant is a restaurant characterized both by food which is
supplied quickly after ordering, and by minimal service. The food in these restaurants is
often cooked in bulk in advance and kept warm, or reheated to order. Many fast-food
restaurants are part of restaurant chains or franchise operations, and standardized
foodstuffs are shipped to each restaurant from central locations. There are also simpler
fast-food outlets, such as stands or kiosks, which may or may not provide shelter or chairs
for customers. Because the capital requirements to start a fast-food restaurant are relatively
small, particularly in areas with non-existent or medium income population, small
individually-owned fast-food restaurants have become common throughout Pakistan.
Generally restaurants, where the customers sit down and have their food orders brought to
them, are also considered fast food.
1. 3
Opportunity Rationale
The Fast Food Restaurant Market is a growing industry in Pakistan relying heavily on the
changing lifestyle patterns, population growth of the target age group and the related
increase in employment of women. With today's hectic lifestyles, time-saving products are
increasingly in demand the most obvious being the fast food. The rate of growth in
consumer expenditures on fast food has led most other segments of the food-away-fromhome market for much of the last one decade.
Demand for convenience has driven expenditures where people want quick and convenient
meals; they do not want to spend a lot of time preparing meals, traveling to pick up meals,
or waiting for meals in restaurants. As a result, consumers rely on fast food. Knowing this,
fast food providers are coming up with new ways to market their products that save time
for consumers.
Consumers want to combine meal-time with time engaged in other activities, such as
shopping, work, or travel, therefore allocating less time for food, hence the growing need
for fast food.
1. 4
The Fast Food Industry
The fast-food industry is popular in Pakistan, the source of most of its innovation, and
many major international chains are based there. The presence of multinational fast food
chains like McDonalds, KFC, Pizza Express, Pizza Hut, Subway etc. have somewhat
catered to the high income segment therefore developing a niche as upscale fastfood
restaurants. Multinational corporations such as these typically modify their menus to cater
to local Pakistan tastes and most overseas outlets are owned by native franchisees to ensure
that cultural, ethnic, and community values are taken care of.
Additionally, multinational fast-food chains are not the only or even the primary source of
fast food in most cities of Pakistan. Many regional and local chains have developed around
the main cities of Pakistan (for example Khan Broast in Karachi) to compete with
international chains and provide menu items that appeal to the unique regional tastes and
habits at comparatively low costs. In Pakistan, multinational chains are considerably more
expensive; they usually are frequented because they are considered chic and somewhat
glamorous and because they usually are much cleaner than local eateries. However much
of the middle-income segment (which forms a major chunk of fastfood goers) prefers
visiting local outlets that offer low cost fast food, hence more frequent visits.
1.4.1 Increasing Number of Fast Food Outlets
The rapid rate at which the fast food industry continues to add outlets is as much a
reflection of consumer demand for convenience as it is a reflection of demand for fast food
itself. Expanding the number of outlets increases accessibility, thus making it more
convenient for consumers to purchase fast food. Especially in recent years, much of the
expansion has been in the form of "satellite" outlets. These tend to be smaller in size, with
little or no seating capacity, and are often in nontraditional locations, such as office
buildings, department stores, airports, and gasoline stations; locations chosen specifically
to maximize convenience and consumer accessibility.
1.4.2 Consumer Appeal
Fast-food outlets have become popular with consumers for several reasons. One is that
through economies of scale in purchasing and producing food, these companies can deliver
food to consumers at a very low cost. In addition, although some people dislike fast food
for its predictability, it can be reassuring to a hungry person in a hurry or far from home.
Multinational Fast food chains like McDonald's rapidly gained a reputation for their
cleanliness, fast service and a child-friendly atmosphere where families on the road could
grab a quick meal, or seek a break from the routine of home cooking. Prior to the rise of
the fast food chain restaurant, people generally had a choice between greasy-spoon diners
(kiosk) where the quality of the food was often questionable and service lacking, or highend restaurants that were expensive and impractical for families with young children.
Modern, stream-lined convenience of the fast food restaurant provides a new alternative
and appealed to consumers' instinct for ideas and products associated with progress,
technology and innovation.
Fast food restaurants have rapidly become the eatery "everyone can agree on", with many
featuring child-size menu combos, play areas and whimsical branding campaigns, designed
to appeal to younger customers. Parents can have a few minutes of peace while children
played or amused themselves with the toys included in the premsises.
Many consumers see multinational fast food restaurants as symbols of the wealth, progress
and well-ordered openness of Western society and therefore become trendy attractions in
many cities around Pakistan, particularly among younger people with more varied tastes.
1.4.3 Focusing on Consumer Convenience
Fast Food outlets tend to focus on the work while you eat philosophy similar to the
McDonald Outlet at Quaid e Azam Internation Aiport (Karachi) wherein seating space is
also available for passengers in transition or the KFC outlets in large shopping malls like
the Millenium Shopping Mall in Karachi promoting the concept of Shop While You Eat.
1.4.4 Increasing Market for Fast Food The Population Boom
Pakistan, currently ranked as 6th in terms of total population, is characterized by a high
population growth rate of 1.9% (Pakistan Economic Survey 2005) and is set to take the top
three positions in terms of total population with already 153.4 Million people registered in
2005.1 With this, the per capita income has increased to US$ 736 while the productive age
group (15 to 64) years is said to take the major chunk of population (67% of total
population) by 2020. 2
The growth rate in food consumption is also augmented by the rapid increase in the
employment rate for males / female population aging between 20 to 29 years (fast food
goers) hence the greater income contribution to the overall income generated is expected to
be higher.
1
2
2005 World Population Data Sheet, Population Reference Bureau, Washington; 2005
Population Projections 1998-2023, Planning Commission; NIPS
Population Pyramid 1998 & 2020*
*Population Census Organization; Population Projections 1998-2023, Planning Commission; NIPS
1.4.5 The Future of the Industry

The Pakistani economy is becoming increasingly service-oriented, and over the past
several decades, the foodservice industries that offer the highest levels of convenience
have been rewarded with strong sales growth. In the face of rising population, incomes and
increasingly hectic work schedules, a nearly insatiable demand for convenience will
continue to drive fast food sales. Fast Food Outlets will strive to find ways to make their
products even more accessible.
Even if incomes stagnate or attitudes change, consumers are unlikely to return to meal
preparation at home on a large scale. This suggests that even if consumers choose to spend
more time at home, for family or other reasons, much of the meal preparation will still
occur elsewhere.
Many more table service restaurants, which traditionally focus on full-service in house
dining, will likely try to capture part of this market by offering take-out, and possibly
experimenting with home delivery.
The value of consumer time, as well as the demand for consistent, high-quality food
products, will continue to shape the fast food industry. Fast food, once considered a
novelty, has become an increasingly significant part of the young generations diet. The
role of convenience in this dietary shift cannot be over-emphasized, and the future growth
of the rest of the foodservice industry will be driven in large part by its ability to find new
ways to save consumers time.
1. 5
Key Success Factors / Practical Tips for Success
Whether you are opening a one-of-a-kind restaurant or trying to grow your existing
restaurant into a multi-unit chain, there are winning principles that can help shape your
restaurant and improve its chances of succeeding.
i) Conceive the Winning Concept
A well-defined concept stands a much better chance of long term success than
some vague notion. To start, it is wise to first set specific goals and decide on the
ways you will measure your restaurants success.
ii) Longetivity
This can be described as the art of being able to maintain success over time while
adjusting to meet the changing demands and buying habits of the customer. To
open a restaurant successfully and become profitable is one thing, but to maintain
that success over a long period of time is winning.
iii) Consistency
To not simply open a restaurant, but to truly develop a winning concept requires
implementing systems and procedures to ensure consistency of your operation.
iv) Market Appeal
All restaurants want to be busy but winning concepts seem to have a broad appeal
and well developed points of difference that enable them to dominate their
market niche. To be the first place the customer thinks of going when choosing to
dine out is the goal of the winning concept.
v) Expandability
Consistency of quality and service, and operating systems and management
procedures established in the first unit can result in more expandable opportunities
where all systems are already developed and waiting to be implemented.
vi) Menu Pricing
One of the most important factors in the strategic planning of a restaurant is in the
development of the menu. It involves designing an appealing selection of menu
items that are competitively priced in the marketplace. Menu pricing is a very
tricky task because you need to price items so that you can operate profitably and,
just as important, offer your targeted guests a good price/value relationship.
vii) Selecting Prime Location
The specific location within your target area also is critical. If you are situated in an
infrequently traveled area no where near complimentary businesses or at the back
of a mall, you limit your earning potential. Even if you are the only outlet in town
you must gauge the likelihood of outsiders visiting your restaurant. If the restaurant
is right off of a major freeway heavily traveled by truckers and road trippers you
may be highly successful despite a remote location.
viii)
Market Research
This is probably the most critical factor for running a successful fast food
restaurant. You need to visit fast food outlets, franchises and other chains to see
how your concept would fit into the neighborhood you are planning to target.
Talk to customers to know their preferences, some detailed meetings with
restaurant managers / owners over dinner would do the trick in obtaining best
practices and critical information that otherwise could have been overlooked.
Keep in mind that because a concept works in one area does not mean it will be
well-received by customers in your location. Tastes are subject to location
preference and more often target market. In high scale urban areas (like PECHS,
KDA etc.) you are more likely to be successful with a niche concept than in a dense
middle income areas (like Gulistan e Jauhar). Another thing to consider is
competition. If your market is saturated with similar restaurants and the population
may not be large enough to support more restaurants, you may want to rethink your
concept.
1. 6
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.
OPENING A SUCCESSFUL RESTAURANT
From burger stands to barbeque steakhouses more and more restaurants are popping up in
cities every day. Since restaurants are such a common business venture, people must enjoy
running them. However, all of those advantages come at a price - building a restaurant
from scratch is not an easy task. It is a hard and expensive process, and the reality is that
many restaurants fail in their first year of business due to improper planning. But rest
assured, there are ways to reduce the risk of becoming another statistic. Following are
some of the handy tips that can help run a successful fast food establishment.
2. 1
How to Start a Restaurant?
2.1.1 Work in a Restaurant

One of the best ways to reduce the risk of owning a failed restaurant is to have some
restaurant experience before you start. Many successful restaurateurs have said that the
best way to prepare for owning a restaurant is by working in one, hopefully in an eatery
similar to one you'd like to open. You'll learn more than just how to serve food with a
smile; you can learn restaurant marketing, menu development, payroll, and other
significant components of the restaurant world. Working in the restaurant industry and
learning the basics is an important first step to becoming an owner.
2.1.2 Know Your Target Market
Who do you see eating at your restaurant? Are you targeting the family crowd, teenagers or
seniors? Knowing your target market before you start planning will not only help you
solidify your menu; it will help determine your location, dcor and the overall atmosphere
of your restaurant. A family-style restaurant, which caters to parents and their kids, may
not appeal to seniors. On the other hand, an upscale, quiet restaurant offering a two-hour
dining experience wouldn't be appealing to teenagers or families with small children.
2.1.3 Select a Service Style & Food Concept
What type of restaurant do you see yourself owning? Typically, your service style will
either be fast-food, which offers food types that range from burgers, fries, soups and
sandwiches; mid-scale, which has full course meals at value prices; or upscale, offering
full service meals with high-class ambiance and, in turn, higher prices.
After narrowing your establishment to one of these three options, you can narrow your
style of food choices. Is there a particular type of cuisine that you see yourself serving? Do
you prefer pizza or soup? Sandwiches or Chinese? Choosing your food concept goes handin-hand with your choice in service style.
2.1.4 Develop a Business Plan
Like any other type of company, a restaurant will need a concise business plan. This plan
should include but is not limited to: the overall concept and goal of the restaurant; specific
financial information and projections; a description of the target market; the menu and
pricing; equipment and employee details; advertising and marketing plan; and a potential
exit strategy.
2.1.5 Create the Menu and not a menu
The menu can make or break a restaurant, and should be in accordance with the overall
concept of the restaurant. Revisit the business plan to make sure the menu is attractive to
the target market, is affordable within specified budget, and complements the restaurant's
design concept. For example, if the restaurant is family-friendly, you will need a kids
menu. If it is supposed to be an upscale establishment, a lot of thought will have to go into
the dessert list.
2.1.6 Choose a Location & Layout
It is important to find a location that has a continuous stream of traffic, convenient parking,
and is in proximity to other businesses (especially if you're catering to the lunch crowd). It
is necessary to revisit the business plan to make sure you are close to your target market. If
you are opening a fast food restaurant, it may not be the best idea to open it in the vicinity
of upscale homes but preferably near flats. In addition, make sure that the monthly rent is
in-line with the business plan's projected profit so that you do not become building-poor.
Once you find your location, the layout and design of the interior should be taken into
account. You should already have a concept of your restaurant in your business plan; bring
this concept into the design of the dining room. When designing your kitchen area, think
about what's on your menu in order to determine what is needed for the food preparation
area.
2.1.7 Getting the Appropriate Funding
The business plan will help you recognize how much money you will need to start your
restaurant. If you are unsure about how much money you will need upfront, talking to
other restaurant owners can help you project your expected start-up costs. There are
numerous ways restaurateurs raise capital to start their business, including taking
advantage of government programs that cater to upstart small business owners; liquidating
assets or using them as collateral for a loan; or encouraging a family or friend to become
the creditor.
2.1.8 Be Familiar With Safety Regulations
Restaurants are regulated and subject to inspection, and failing to be up to speed with these
regulations could be detrimental to the fast food outlet. Therefore it is necessary to consult
with old restaurateurs to become familiar with what one must do to meet the necessary
legal requirements.
2.1.9 Hiring Employees
One of the biggest challenges restaurants face is a lack of qualified labor. In order to get
and retain qualified employees, make sure your pay scales relate clearly to the job's duties
and responsibilities. In addition, find out what other restaurants are paying their employees
so that you can be competitive in the job market, without spending too much on payroll.
However try linking your payroll with the bottom line and see how much money can be
squeezed out for the employees.
2.1.10 Advertise & Market
Every business needs a comprehensive marketing plan, and restaurants are no exception.
After determining your marketing budget, price out billboard advertising, flyers in
newspapers, and local cable TV advertising. Ask your customers how they found out about
you, so that you can record where your advertising and marketing money are best spent.
Opening up food stalls and setting up tasting booths at local neighborhood events or
having an event at the restaurant benefiting a students / event, can be an inexpensive way
to achieve positive word-of-mouth.
Choosing a Location
2. 2
Not every food-service operation needs to be in a retail location, but for those that do
depend on retail traffic like fast food outlets, here are some factors to consider when
deciding on a location:
Anticipated sales volume. How will the location contribute to your sales volume?
Accessibility to potential customers. Consider how easy it will be for customers
to get into your outlet. If you are relying on strong pedestrian traffic, consider
whether or not nearby businesses will generate foot traffic for you.
The rent-paying capacity of your business. If you've done a sales-and-profit
projection for your first year of operation, you will know approximately how much
revenue you can expect to generate, and you can use that information to decide how
much rent you can afford to pay.
Restrictive ordinances. You may encounter unusually restrictive ordinances that
make an otherwise strong site less than ideal.
Traffic density. With careful examination of food traffic, you can determine the
approximate sales potential of each pedestrian passing a given location. Two
factors are especially important in this analysis: total pedestrian traffic during
business hours and the percentage of it that is likely to patronize your food service
business.
Visibility is a locations ability to be seen and recognized. Good visibility can
create opportunities for the impulse eating decision that is critical for fast food
operators, and it allows the exposure full-service restaurants require.
Customer parking facilities. In case you allow for parking the site should provide
convenient, adequate parking as well as easy access for customers.
Proximity to other businesses. Neighboring businesses may influence your store's
volume, and their presence can work for you or against you.
History of the site. Find out the recent history of each site under consideration
before you make a final selection. Who were the previous tenants, and why are they
no longer there?
Terms of the lease. Be sure you understand all the details of the lease, because it's
possible that an excellent site may have unacceptable leasing terms.
Future development. Check with the local planning board to see if anything is
planned for the future that could affect your business, such as additional buildings
nearby or road construction.
Deciding on the Layout
2. 3
Layout and design are major factors in your restaurant's success. You'll need to take into
account the size and layout of the dining room, kitchen space, storage space and counter.
Typically, restaurants allot 40 to 60 percent of their space to the dining area, approximately
30 percent to the kitchen and prep area, and the remainder to storage and office space.
Dining area. This is where you'll be making the bulk of your money, so don't cut
corners when designing your dining room. Visit restaurants in your area and
analyze the dcor. Watch the diners; do they react positively to the dcor? Is it
comfortable or are people shifting in their seats throughout their meals? Note what
works well and what doesn't.
Much of your dining room design will depend on your concept. It will help you to know
that 40 to 50 percent of all sit-down customers arrive in pairs; 30 percent come alone or in
parties of three; and 20 percent come in groups of four or more.
To accommodate the different groups of customers, use tables for four that can be pushed
together in areas where there is ample floor space. This gives you flexibility in
accommodating both small and large parties. Place booths for four to six people along the
walls.
Production area. Too often, the production area in a restaurant is inefficiently

designed--the result is a poorly organized kitchen and less than top-notch service.
Keep your menu in mind as you determine each element in the production area.
You'll need to include space for receiving, storage, food preparation, cooking,
baking, dishwashing, production aisles, trash storage, employee facilities and an
area for a small office where you can perform daily management duties.
Arrange your food production area so that everything is just a few steps away from the
cook. Your design should also allow for two or more cooks to be able to work side by side
during your busiest hours.
Designing & Decor
2. 4
Since customers ultimately drive restaurant design trends, many of your restaurant design
ideas will come from your clientele. Successful restaurant design ideas are bred with an
understanding of the types of experiences your customers are looking for and the promise
your brand has made to them. You may know what types of menu items they crave, but do
you know what kinds of restaurant design ideas create an atmosphere that will welcome
them time and time again?
2. 5
Step One: The restaurant designers process begins with a thorough understanding
of the eaterys menu, location, customers, architectural preferences and lighting
concerns. More than just a design powwow, the restaurant designers process
includes budget considerations, timelines and coordination with city officials to
secure necessary building permits.
Step Two: The most effective restaurant design considers the flow of waiter staff
from the kitchen to the dining area or from the dining area to the restrooms. The
restaurant designers process contemplates the overall circulation within the
restaurant for maximum efficiency
Step Three: With the floor plan in hand and a concept in mind, the next stage in
the restaurant designers process is interior design. Sketches may depict color
schemes, furniture placement, window treatments, artistic lighting and other
aspects of the ambiance. This is also the part of the restaurant designers process
where we consider paints, wallpapers, foliage and artwork.
Creating a Menu
Though menu variety has increased over the years, menus themselves are growing shorter.
Busy consumers don't want to read a lengthy menu before dinner; dining out is a
recreational activity, so they're in the restaurant to relax. Keep your number of items in
check and menu descriptions simple and straightforward, providing customers with a
variety of choices in a concise format. Your menu should also indicate what dishes can be
prepared to meet special dietary requirements. Items low in fat, sodium and cholesterol
should also be marked as such.
2. 6
Restaurant Size
That depends to some extent on how you answered the fundamental question mentioned
above. For the sake of discussion, a restaurant can be understood in two parts; the fronthouse component and the back-house component, which we will call the engine. The backhouse areas include, the cook-line, the food preparation areas, refrigerated any dry storage
areas, office and the dishwashing area. The front-house functions are typically dining
areas (interior and exterior), waiting area, to-go area, restroom, and private dining areas.
The speed of product delivery; the size of the engine, a casual or formal atmosphere, and
numbers of patrons you want to accommodate will all factor in to the amount of space you
need for your restaurant. The goal is trying to maximize the number of patrons one can
serve, out of the smallest most efficient back-house possible.
Hiring the Right Employees
2. 7
Choosing employees who will do a good job is not only important to the success of your
business, but will also contribute to the image of your establishment, provided they are
properly trained.
There are several categories of personnel in the restaurant business: manager, cooks,
servers, busboys, dishwashers and cleaners. When your restaurant is still new, some
employees' duties may cross over from one category to another. For example, your servers
may double as the cleaners. Be sure to hire people who are willing to be flexible in their
duties.
Manager / Owner. The most important employee in most restaurants is the

manager. The best candidate is you or a person who has already managed a
restaurant or restaurants in the area and will be familiar with local buying sources,
suppliers and methods. The manager should have leadership skills and the ability to
supervise personnel while reflecting the style and character of the restaurant.
Chefs and cooks. When you start out, you'll probably need three cooks - two full
time and one part time. But one lead cook may need to arrive early in the morning
to begin preparing soups, bread and other items to be served that day. One full-time
cook should work days, and the other evenings. The part-time cook will help during
peak hours, such as weekend rushes, and can work as a line cook during slower
periods, doing simple preparation. Cooking schools can usually provide you with
leads to the best in the business, but look around and place newspaper ads before
you hire. Customers will become regulars only if they can expect the best every
time they dine at your restaurant. To provide that, you'll need top-notch cooks and
chefs.
Servers. The servers will have the most interaction with customers, so they need to
make a favorable impression and work well under pressure, meeting the demands
of customers at several tables while maintaining a pleasant demeanor. There are
two times of day for wait staff: very slow and very busy. Schedule your employees
accordingly. The lunch rush, for example, starts around 11:30 a.m. and continues
until 1:30 or 2 p.m. Restaurants are often slow again until the dinner crowd arrives
around 6:30 to 7 p.m.
A Good Fast Food Restaurant Experience
2. 8
Based on some surveys conducted with fast food goers following are some of the factors
that contribute to a good fast food experience:
Location
Characteristics
Welcome
Food server
Food.
Environment (parking, restrooms, lighting).
Dessert Variety
Smile factor.
Time factor.
Profit factor (beverages offered, dessert menus presented).
Measuring good service is subjective, but generally what is expected from a server when
reviewing restaurants.
2. 9
The server should greet diners within 3 minutes of their being seated.
The server should neat and clean.
The server should not be too chatty or familiar.
The server should know the menu and be able to answer questions.
The server should bring drinks within 3 minutes of being ordered.
The appetizer (if any) should be served within 5 minutes of ordering.
Entrees should be served within 20 minutes of ordering.
Water or beverage glasses should be refilled regularly.
The server should silently survey the table and assess our needs without constantly
interrupting to ask, "Do you need anything else?"
The bill should be brought promptly when requested, and change should be
returned promptly.
Plates should be removed at the proper time, and the table should be cleared of
bread and butter before dessert is served.
Legal Requirements
The Pakistan Hotels and Restaurant Acts Act 1976 is the law which requires the owners of
all types of restaurants to register and obtain a license with the government. The restaurant
owner is required to apply to the controller for registration of the restaurant.
Application for registration and determination of fair rates shall be made to the controller
in Form G together with a certificate of medical fitness in Form I from a registered
medical officer of the civil hospital in respect of the staff of the restaurant.
For registration of a restaurant, the owner of the restaurant is required to conform to the
standard of health, hygiene and comfort which standards have been set out in Schedule II
of the act.
On receipt of application, the controller will carryout inspection of the aforementioned
premises and once satisfied will initiate the registration process. Once registered the owner
of the restaurant will apply to the controller for license as per the Act which needs to be
renewed on a yearly basis for the prescribed fee.
2. 10
Project Investment
This section will provide the total cost of the project.

Item
Construction Cost (all inclusive)
Cost (Rs.)
1,307,000
Dining & Office Furniture
542,250
Equipment & Machinery
967,000
Advance Rent
Preliminary Expenses
1,200,000
50,000
Working Capital
1,036,000
Total
5,102,250
2. 11
Proposed Product Mix
The proposed project is assumed to provide customers with a variety of fast food items as
outlined in the following menu:
Broast
Chicken Broast (Qtr.)
Chicken Broast (Half)
Chicken Broast (Full)
Price
65
125
250
Burgers
Chicken Burger
Chicken Cheese Burger
Beef Burger
Beef Cheese Burger
Zinger Burger
Price
50
55
40
45
80
Sandwiches
Chicken Sandwich
Egg Sandwich
Beef Sandwich
Club Sandwich
Price
55
40
45
80
Chinese
Hot & Sour Soup (2 Servings)
Chicken Corn Soup (2 Servings)
Plain Rice
Chicken Fried Rice
Vegetable Fried Rice
Egg Fried Rice
Beef Fried Rice
Beef Chilli (w/o rice)
Chicken Chilli (w/o rice)
French Fries (per plate)
Cole Slaw
Soft Drinks (Large)
Soft Drinks (Regular)
Price
75
140
75
140
40
80
60
70
80
75
85
Price
25
15
50
15
Based on the above the fast food restaurant can offer low cost combo meals to its
customers for increased value. Following are the proposed combo deals that can be further
modified to meet increasing demand:
Combos
Items
Price
Combo Deal 1
Combo Deal 2
Combo Deal 3
Combo Deal 4
Zinger Burger / French Fries / Regular Drink

Chicken Broast (Qtr.) / French Fries / Regular Drink
Chicken Burger, Broast (Qtr.), French Fries, Regular Drink
Club Sandwich / French Fries / Regular Drink
105
90
135
105
Family Deal 1
Family Deal 2
Jumbo Deal
Full Broast / Zinger Burger / Club Sandwich / French Fries (4) / Large Drink
Zinger Burger (2) / Club Sandwich (2) / Broast (Half) / Large Drink / Fries (2)
5% discount on purchase above Rs. 1,000/-
535
515
It desirable to have a vast variety of food items to capture a larger target audience but
initially the entrepreneur needs to be careful in choosing the right product mix that has the
greatest acceptability such that the sales volume generated are able to cover the initial
setup costs and desired profit margins. Once the fast food restaurant achieves a steady sales
pattern further food items like Barbeque can be added and similarly for desserts ice cream
would be the best potential. In case circumstances demand items other than the proposed
menu the entrepreneur should make immediate changes to the menu before he starts
loosing out customers.
One important factor to consider here is that the entrepreneur must have the requisite skills
to decide on whether to introduce a new product line (like Barbeque, Pizza) or add a new
item to the existing product line both of which might require the purchase of additional
kitchen equipment. Hence the experience of the entrepreneur will play an important role in
determining the course of action.
2. 12
Recommended Project Parameters
Capacity
300 Customers per
day
Human Resource
21
Equipment
Local / American /
Chinese
Location
Middle Income
Level Area
Financial Summary
Project Cost
IRR
NPV
Payback Period
Rs. 5,102,250
57%
Rs. 13,076,676
2.5 Years
2. 13
Cost of Capital
(WACC)
17.5%
Proposed Location
The recommended area for the proposed business setup will be in a densely populated
middle income area (for example Gulistan-e-Jauhar, Karachi). The main reason for such a
location is the presence of target market and customer traffic which are the prerequisites
for the success of the restaurant.
MACHINERY & EQUIPMENT
Understanding the customers individual needs and the capability to satisfy these
completely is a vital part of the restaurants success. This is in turn dependent on the
machinery and equipment used to produce good quality fast food. Fast Food Machines are
easily available in the market wherein the owner has to choose between expensive brands
and cheaper ones depending on how much he can afford to give quality to his customers.
Secondhand equipment of world leading brands such as SPINZER, FRYMASTER,
HENNY PENNY, LINCOLN, AYRKING, KEATING, MIRROR, CARPIGIANI,
LINCAT, MORRETTI, ILSA, ROUND-UP, SANYO, ELETTROBAR are available while
cheaper Chinese brands have gained popularity over the years. The machines can be
ordered through international vendors with a minimum delivery period of 3 months while
refurbished / reconditioned machines are also available. Some outlets closing their
business also tend to sell their machinery at low prices but the durability and reliability
factor must be taken into consideration while buying such machines.
The typical fast food restaurant as outlined above would require the following machine /
equipment for its operations:
Item Details
Quantity
Unit Price (Rs.)
Total Price(Rs)
25,000
75,000
650,000
650,000
40,000
80,000
33,000
33,000
50,000
50,000
Potato Cutter (8mm)
3,000
3,000
Pillar (4.5 Kg Potato Peeling Capacity)
6,000
6,000
Microwave
10,000
10,000
Working Tables
20,000
40,000
Keg Racks & Shelves
10,000
20,000
Total
15
967,000
Freezers (12 cf)

New Broast Machine (15 Pound
Capacity)*
Deep Well Frier (Single Valve With 2
Baskets)
Hot Plate for Burgers, Kebab, Sandwiches
(30 x 22)
Bin Marry Soup Container (2 Valve With
Steel Cabinet)
* Available from Spinzer USA, Delivery Time Three Months, Reconditioned Available at Rs. 200,000 with
the same specs and Delivery Time
3. 1
Machinery Maintenance
All machines require routine cleaning and maintenance after every three months and an
annual service which costs around 1% to 5% of the total cost depending upon the use of
the machine and operator's skill. We have assumed an average of 2.5% of the depreciated
cost as the annual maintenance cost.
3. 2
Dining Furniture & General Fixtures
The 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
Dining Table Square
(2X2)
Quantity
Unit Price (Rs.)
Total Price(Rs)
25
6,000
150,000
Chairs (Standard 14)
100
1,500
150,000
2,500
5,000
150
150
22,500
31,000
62,000
Hot Water Geyser Large
20,000
20,000
Halogen Lights
25
250
6,250
Wall Lights (Large)
1,500
6,000
Portable Emergency Light
2,500
10,000
Generator (1.5 KVA)
90,000
90,000
Counter Chairs
1,500
3,000
Office Table & Chair Set
10,000
10,000
Waiting Chairs for Take

Away Customers
1,500
7,500
322
168,400
542,250
Kitchen Cutlery Set

Dining Cutlery* (Plate,
Fork, Knife, Spoon, Glass)
Air Conditioner Split Units
(6 Ton)
Total
*Cutlery to be 1.5 times the maximum capacity (i.e. 100 customers)
4
4. 1
LAND & BUILDING REQUIREMENT

Land Requirement
The land requirement is around 2,000 sq.ft. in densely populated area where all utilities
and facilities are properly available. It is recommended that the fast food outlet be opened
on the ground floor of flats or shopping mall wherein the consumer traffic will be a
maximum. The more the shop is near the main road the better sales potential it will have.
Dedicated Area Requirement
4. 2
The floor space needs to be carefully allocated to allow for maximum dining space for
customers in rush hours. The allocation of space between different sections would be as
follows:
%
(Sq. Feet)
Size
(Sq. Feet)
Civil Works & Dcor*

(Cost in Rs / square
feet)
Total Construction
Cost (Rs)
Dining
63 %
1,250
700
875,000
Waiting
4%
80
700
56,000
Kids Play
3%
70
800
56,000
Kitchen &
Preparation
25 %
500
450
225,000
Office
1.5%
30
450
13,500
Stores
3%
70
450
31,500
Total
100 %
2,000
3,550
1,257,000
Details
* Includes interior decoration as well as fancy fittings, lightings, hangings etc.
4. 3
Recommended Mode
The proposed premises will be acquired on a rental basis with 6 month deposit and 6
months advance rent after which rent will be payable on a monthly basis. The monthly rent
is approximately Rs. 50/ Sq Feet for the ground floor which would amount to Rs. 100,000
per month for the proposed fast food outlet (2,000 Sq Ft.)
4. 4
Reception & Owner Office
To allow for maximum space for dining and security concerns (Cash control) it is
recommended that the owner should manage the reception counter as well as all cash
handling emanating from the tables. Therefore a total of Rs. 50,000 would be required to
erect the reception and cash counter along with the take-away order taking booth.
The Office Furniture & Equipment will be depreciated at the rate of 10% per annum
according to the diminishing balance method for the projected period.
HUMAN RESOURCE REQUIREMENT
The human resource requirement for the general and management staff are as follows:
Number
Monthly Salary
(Rs.)
Total Salary
(Rs.)
Owner
Kitchen Supervisor
6,000
12,000
Shift Supervisor
(including reliever)
8,000
24,000
Cook
4,000
16,000
Servers
3,000
18,000
Take Away Order Taker

/ Cashier
6,000
6,000
Dishwasher
2,500
5,000
Cleaner
2,500
2,500
Guard (12 Hour)
6,000
6,000
Total
21
38,000
89,500
Designation / Type
Considering the size of the proposed establishment it is assumed that the owner would be
managing the overall affairs of the fast food setup. He will be required to process and
check bills, invoices, receivables management, maintain accounts, etc. for record. The
owner will also ensure safe custody of store keys.
The cashier will only be responsible for receiving payment and handing over change while
the owner would be managing the cash drawer for control purposes. It is important to note
that many food outlets tend to lose out due to inadequate cash control by the owners
especially during rush hours where the counter staff can easily slip out one or two
payments.
FINANCIAL ANALYSIS & KEY ASSUMPTIONS
The project cost estimates for the proposed fast food outlet have been formulated on the
basis of discussions with relevant stakeholders and experts. The cost projections cover the
cost of land, building, inventory, equipment including office furniture etc. The specific
assumptions relating to individual cost components are given as under:
6. 1
Revenue & Cost Projections
The Sales are expected to increase by 15% every year while the cost of raw materials is
assumed to increase by 10%. The 15% annual increase in revenue is expected to result
from a part increase in population increase and part increase in product price.
The prices used to calculate the gross revenue earned are based on the billing rate at which
the entrepreneur will charge the customer. The prices are also inclusive of the General
Sales Tax.
Furthermore it is assumed that the following sales breakup will form the revenue streams
for the fast food outlet
Revenue Stream
% of Total Sales
Dine In
60%
Take Away
20%
Home Delivery
20%
Total Revenue
100%
The minimum delivery order size is assumed to be Rs. 250/- per order with 3 delivery
riders being employed at the charge out rate of Rs. 25 per delivery order wherein no
transportation fuel is provided by the fast food outlet. For Take Away and Home Delivery
another 1% of sales added cost due to packing is assumed.
6. 2
Rent Cost
The rent for the assumed premises will be Rs. 100,000/- per month. It is assumed that Rs.
1,200,000 will be given in advance before possession of premises. This will include 6
months deposit and 6 month advance rent. The rent would be payable on a monthly basis
and is expected to increase at the rate of 10% per annum for the projected period.
6. 3
Utilities Requirement
The following table presents the assumed breakup of utilities on a monthly basis:
Utility
Monthly Charges (Rs.)
Electricity
25,000
Water
2,000
Gas
15,000
Telephone
10,000
Total
52,000
As depicted above the most of the fast food machines require considerable gas during the
preparation process. The preheating procedure of the equipment before commencement of
preparation also consumes considerable gas. It is assumed that utilities expenses will be
increased by 10% every year.
6. 4
Depreciation on Building & Equipment
Depreciation on Shop, Equipment, Machinery and Fixtures is assumed to be at the rate of

10% per annum based on the diminishing balance method for the projected period.
6. 5
Working Capital & Pre Operating Costs
It is estimated that an additional amount of approximately Rs. 1,036,000 will be required

as cash in hand to meet the working capital requirements / contingency cash for the initial
stages. The requirement is based on the rent, utilities and salaries expenses for at least four
months and 3 days raw material inventory. The following table gives the break up.
Item
4 Months Cost (Rs.)
Utilities
208,000
Salaries
358,000
Raw Material Inventory
70,000
Rent
400,000
Total
1,036,000
The provision for pre operating costs is assumed to be Rs. 50,000 which will be amortized
equally over a 5 year period.
6. 6
Account Receivables
All sales will be made strictly on cash basis. It is not advisable to operate a fast food
restaurant on credit basis.
6. 7
Miscellaneous Outlet Expenses
A monthly figure of Rs. 6,000 (200 per day) is assumed to be incurred for miscellaneous
expenses which are expected to increase at the rate of 10% per annum for the projected
period.
6. 8
Financial Charges
It is assumed that long-term financing for 5 years will be obtained in order to finance the
fast food setup which would mainly include construction & dcor of Building, Purchase of
machinery & equipment, purchase of inventory etc. This facility would be required at a
rate of 15% (including 1% insurance premium) per annum with 60 monthly installments
over a period of five years. The installments are assumed to be paid at the end of every
month.
6. 9
Taxation
The tax rate applicable to sole proprietorship is the same as that of the salaried individual.
Therefore, we are assuming that the tax rate would be the same for the proposed fast food
setup.
6. 10
Cost of Capital
The cost of capital is explained in the following table:

Particulars
Required return on equity
Cost of finance
Weighted average cost of capital
Rate
20.0 %
15.0 %
17.5 %
The weighted average cost of capital is based on the debt/equity ratio of 50:50.
6. 11
Owners Withdrawal
It is assumed that the owner with withdraw from the business once the desired profitability
is reached from the start of operations. The amount would depend on business
sustainability and availability of funds for future growth.
6. 12
Key Assumptions
Item
Assumption(s)
Sales Increase
15 % per year
Increase in Cost of Raw Materials
10 % per year
Increase in Staff Salaries
10 % per year
Increase in Utilities (Electricity / Water / 10 % per year
Gas)
Increase in Rent
10 % per year
Increase in Office Expenses
10 % per year
Debt / Equity Ratio
50 : 50
Depreciation
o Shop Building & Fixtures
10 % per annum (Diminishing Balance)
o Kitchenware & Machinery
o Furniture
Equipment Annual Maintenance Cost
2.5% of Written Down Value
Raw Food Inventory - Meat
3 Days
Raw Food Inventory Spices & Sauce
7 Days
Lease Period
5 Years
Lease Installments
Monthly
Financial Charges (Lease Rate)
15 % per annum
Tax Rate
Income Tax on Salaried Individuals
INCOME STATEMENT:
Projected Income Statement (Rs.)
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Revenue
10,015,200 11,517,480 13,245,102 15,231,867 17,516,647 20,144,145 23,165,766 26,640,631 30,636,726 35,232,235
Net Sales
Raw Material Cost
Labor & Salaries
Utilities
Cost of Sales
Gross Profit
10,015,200 11,517,480 13,245,102 15,231,867 17,516,647 20,144,145 23,165,766 26,640,631 30,636,726 35,232,235
4,910,141
5,401,155
5,941,270
6,535,397
7,188,937
7,907,831
8,698,614
9,568,475 10,525,323 11,577,855
1,074,000
1,181,400
1,299,540
1,429,494
1,572,443
1,729,688
1,902,657
2,092,922
2,302,214
2,532,436
624,000
686,400
755,040
830,544
913,598
1,004,958
1,105,454
1,215,999
1,337,599
1,471,359
6,608,141
7,268,955
7,995,850
8,795,435
9,674,979 10,642,477 11,706,725 12,877,397 14,165,137 15,581,650
3,407,059
4,248,525
5,249,252
6,436,432
7,841,668
9,501,668 11,459,042 13,763,234 16,471,589 19,650,584
General Administrative & Selling Expenses

Rent Expense
Office & Miscellaneous Expenses
Amortization Expenses
Depreciation Expense
Maintenance Expense
Subtotal
Operating Income
1,200,000
72,000
10,000
281,625
21,758
1,585,383
1,821,677
1,320,000
79,200
10,000
253,463
19,582
1,682,244
2,566,281
1,452,000
87,120
10,000
228,116
17,624
1,794,860
3,454,392
1,597,200
95,832
10,000
205,305
15,861
1,924,198
4,512,234
1,756,920
105,415
10,000
184,774
14,275
2,071,384
5,770,284
1,932,612
115,957
0
166,297
12,848
2,227,713
7,273,955
2,125,873
127,552
0
149,667
11,563
2,414,655
9,044,386
357,889
298,344
229,228
149,001
55,878
Earnings Before Taxes

Tax
Net Profit
1,463,788
365,947
1,097,841
2,267,936
566,984
1,700,952
3,225,164
806,291
2,418,873
4,363,233
1,090,808
3,272,425
5,714,406
1,428,602
4,285,805
7,273,955
1,818,489
5,455,466
9,044,386
2,261,097
6,783,290
Monthly Profit After Tax
91,487
141,746
201,573
272,702
357,150
454,622
565,274
Financial Charges (15% Per Annum)
2,338,461
2,572,307
2,829,537
140,308
154,338
169,772
0
0
0
134,700
121,230
109,107
10,407
9,366
8,429
2,623,875
2,857,241
3,116,846
11,139,359 13,614,348 16,533,738
0
11,139,359 13,614,348 16,533,738

2,784,840
3,403,587
4,133,435
8,354,519 10,210,761 12,400,304
696,210
850,897
1,033,359
BALANCE SHEET:
Projected Balance Sheet (Rs.)
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Assets
Current Assets
Cash & Bank Balance
Prepaid Rent
Total Current Assets
1,036,000
1,200,000
2,236,000
2,055,062
1,200,000
3,255,062
3,589,528
1,200,000
4,789,528
5,747,452
1,200,000
6,947,452
8,655,889
1,200,000
9,855,889
12,464,053
1,200,000
13,664,053
18,085,816
1,200,000
19,285,816
25,018,772
1,200,000
26,218,772
33,507,992
1,200,000
34,707,992
43,839,983
1,200,000
45,039,983
56,349,394
1,200,000
57,549,394
Fixed Assets
Fast Food Machinery
Shop
Office Fixtures
Total Fixed Assets
967,000
1,307,000
542,250
2,816,250
870,300
1,176,300
488,025
2,534,625
783,270
1,058,670
439,223
2,281,163
704,943
952,803
395,300
2,053,046
634,449
857,523
355,770
1,847,742
571,004
771,770
320,193
1,662,967
513,903
694,593
288,174
1,496,671
462,513
625,134
259,356
1,347,004
416,262
562,621
233,421
1,212,303
374,636
506,359
210,079
1,091,073
337,172
455,723
189,071
981,966
50,000
40,000
30,000
20,000
10,000
Total Assets
5,102,250
5,829,687
7,100,690
9,020,498
11,713,631
15,327,020
20,782,486
27,565,776
35,920,295
46,131,056
58,531,360
Owner's Equity
2,551,125
3,648,966
5,349,918
7,768,791
11,041,216
15,327,020
20,782,486
27,565,776
35,920,295
46,131,056
58,531,360
Long Term Liability
2,551,125
2,180,721
1,750,772
1,251,707
672,415
Total Equity & Liabilities
5,102,250
5,829,687
7,100,690
9,020,498
11,713,631
15,327,020
20,782,486
27,565,776
35,920,295
46,131,056
58,531,360
CASH FLOW STATEMENT:

Projected Statement of Cash Flows (Rs.)
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Net Profit
Add: Depreciation Expense
Amortization Expense
0
0
0
1,097,841
281,625
10,000
1,700,952
253,463
10,000
2,418,873
228,116
10,000
3,272,425
205,305
10,000
4,285,805
184,774
10,000
5,455,466
166,297
0
6,783,290
149,667
0
8,354,519
134,700
0
10,210,761
121,230
0
12,400,304
109,107
0
Net Cash Flow From Operations
1,389,466
1,964,415
2,656,989
3,487,729
4,480,579
5,621,763
6,932,957
8,489,220
10,331,991
12,509,411
(370,404)
(429,949)
(499,065)
(579,292)
(672,415)
(370,404)
(429,949)
(499,065)
(579,292)
(672,415)
Cash Flow From Operating Activities
Cash Flow From Financing Activities

Receipt of Long Term Debt
Repayment of Long Term Debt
Owner's Equity
2,551,125
Net Cash Flow From Financing Activities
5,102,250
2,551,125
Cash Flow From Investing Activities

Construction Cost
Office Furniture
Equip & M/C
Advance Rent
(1,307,000)
(967,000)
(542,250)
(1,200,000)
(50,000)
Net Cash Flow From Investing Activities
(4,066,250)
NET CASH FLOW
1,036,000
1,019,062
1,534,466
2,157,924
2,908,437
3,808,164
5,621,763
6,932,957
8,489,220
10,331,991
12,509,411
1,036,000
2,055,062
3,589,528
5,747,452
8,655,889
12,464,053
18,085,816
25,018,772
33,507,992
43,839,983
Cash at the Beginning of the Period

Cost & Revenue Sheet
Broast
Chicken Broast (Qtr.)
Chicken Broast (Half)
Chicken Broast (Full)
Cost
35
70
140
Price
65
125
250
300
Unit Sales
36
18
6
0.12
0.06
0.02
Total Cost
1260
1260
840
Total Sales
2340
2250
1500
Burgers
Chicken Burger
Chicken Cheese Burger
Beef Burger
Beef Cheese Burger
Zinger Burger
Cost
20
25
18
23
40
Price
50
55
40
45
80
Unit Sales
24
36
18
18
24
0.08
0.12
0.06
0.06
0.08
Total Cost
480
900
324
414
960
Total Sales
1200
1980
720
810
1920
Sandwiches
Chicken Sandwich
Egg Sandwich
Beef Sandwich
Club Sandwich
Cost
20
12
20
35
Price
55
40
45
80
Unit Sales
21
6
3
30
TOTAL
Total Cost
420
72
60
1050
8040
Total Sales
1155
240
135
2400
16650
Total Sales (Rs)

Total RM Cost (Rs.)
Gross Profit (Rs.)
Daily
27,820
13,478
14,342
Monthly
834,600
404,340
430,260
Additional
4,838
Final
834,600
409,178
425,422
0.509731129
Sales Break Down

Daily Basis
Orders Value (Rs) Packing Cost

1% of Sales
Dine In (60%)
Take Away (20%)
Delivery (20%)
Total
180
60
60
300
500,760
166,920
166,920
834,600
1,669
1,669
3,338
0.07
0.02
0.01
0.1
Delivery Cost
25 / Order
1,500
1,500
Add Cost
1,669
3,169
4,838
Chinese
Plain Rice
Chicken Fried Rice
Vegetable Fried Rice
Egg Fried Rice
Beef Fried Rice
Beef Chilli (w/o rice)
Chicken Chilli (w/o rice)
French Fries (per plate)
Cole Slaw
Soft Drinks (Large)
Soft Drinks (Regular 250ml)
Cost Price Unit Sales

25
75
6
50
140
3
25
75
6
50
140
3
12
40
3
20
80
12
18
60
6
18
70
3
20
80
3
30
75
6
35
85
9
Cost Price Unit Sales
8
25
5
6
15
5
40
50
10
9
15
375
TOTAL
0.02
0.01
0.02
0.01
0.01
0.04
0.02
0.01
0.01
0.02
0.03
Total Cost Total Sales

150
450
150
420
150
450
150
420
36
120
240
960
108
360
54
210
60
240
180
450
315
765
Total Cost Total Sales
40
125
30
75
400
500
3375
5625
5438
11170

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Pre-Feasibility Study

FAST FOOD RESTAURANT

Small and Medium Enterprises Development Authority

3rd Floor, Building No. 3,

5TH Floor, Bahria

Bungalow No. 15-A

Fast Food Restaurant

Provincial Chief Sindh

Fast Food Restaurant

This document is developed to provide the entrepreneur with potential investment

Fast Food Restaurant

The Fast Food Industry

Fast Food Restaurant

Fast Food Restaurant

Population Pyramid 1998 & 2020*

*Population Census Organization; Population Projections 1998-2023, Planning Commission; NIPS

1.4.5 The Future of the Industry

Fast Food Restaurant

Key Success Factors / Practical Tips for Success

Fast Food Restaurant

Proposed Business Legal Status

Fast Food Restaurant

OPENING A SUCCESSFUL RESTAURANT

How to Start a Restaurant?

2.1.1 Work in a Restaurant

Fast Food Restaurant

Fast Food Restaurant

Fast Food Restaurant

Production area. Too often, the production area in a restaurant is inefficiently

Fast Food Restaurant

Designing & Decor

Fast Food Restaurant

Manager / Owner. The most important employee in most restaurants is the

Fast Food Restaurant

A Good Fast Food Restaurant Experience

Fast Food Restaurant

This section will provide the total cost of the project.

Dining & Office Furniture

Equipment & Machinery

Fast Food Restaurant

Proposed Product Mix

Zinger Burger / French Fries / Regular Drink

Fast Food Restaurant

Recommended Project Parameters

MACHINERY & EQUIPMENT

Fast Food Restaurant

Unit Price (Rs.)

Potato Cutter (8mm)

Pillar (4.5 Kg Potato Peeling Capacity)

Keg Racks & Shelves

Freezers (12 cf)

Dining Furniture & General Fixtures

The restaurant is expected to entertain a minimum of 300 customers in a day, which

Fast Food Restaurant

Unit Price (Rs.)

Chairs (Standard 14)

Hot Water Geyser Large

Wall Lights (Large)

Portable Emergency Light

Generator (1.5 KVA)

Office Table & Chair Set

Waiting Chairs for Take