BUSINESS PLAN

For

SEASON FOODS
Flavors for your Nourishment

BY
Afreen Rehmatullah 18978
Sidrah Hussain 21318
Humna Idrees 19137
Tazeen Ahsan 19270
Aquib Fancy 19066

SUBMITTED TO
SIR MUNTAZIR MEHDI

Karachi, Pakistan
7th, Dec, 2015

Table of Contents

Season Foods - flavors for your nutrition. 2

S.NO.

DESCRIPTIONs

PAGE
NO.

1.

Executive Summary...

2.

The

3.

The Market..................

4.

The Competition..

5.

Market Strategy...

6.

Operations Plan..

11

7.

Management.....

12

8.

Financials

13

9.
10.

Ratio Analysis
Appendices

15
18

Concept...

Executive Summary

Season Foods - flavors for your nutrition. 3

Season Foods is a business that offers a variety of food products based on current season. Since it
is winter season, the business would be offering soup and crackers. What makes the product
different is the fact that high quality ingredients would be used, therefore, providing a better taste
and a healthy choice for the customers. Season Foods also tend to offer different flavors of soup
which would be full of nutrition. The outlet of this firm will be located in Sindhi Muslim Society,
Karachi. There are so many restaurants in that area indicating a lot of competition for the
business. The businesss strategy is to capture as much customers as possible and to offer a high
quality product for the consumers. For starters, it is not that easy to penetrate in the market, so
different marketing tactics would be used to achieve the business objectives. The main important
objective of the firm is to maintain the quality of the product. The marketing strategies used to
market the product would enable the firm to create a positive brand image. Season Foods will
start from a small shop and then the firm plans to expand in long term. It also plans to provide
every seasonal food regardless of the actual season. The goods would be imported if necessary.

The Concept

Season Foods - flavors for your nutrition. 4

Value Proposition:
The main concept of offering this product is that Season Foods are trying to give their customers
an exquisite taste of soup in winters. They are providing healthy and hygienic soup made up of
organic vegetables and high quality ingredients. Since consumers are more aware and health
conscious, this product will be a good measure of satisfying them.
It is a seasonal product. Consumers would enjoy the warm soup in the cool weather. It is not only
healthy but enjoyable as well.

Differentiation and Sustainability:

The differentiation factor in our product would be that it would use high quality of ingredients,
the taste and flavor would be unique and it would work its charm to the consumers taste buds. It
would be kept in view that quality of the product is maintained, and the customers are served in a
good and proper manner.

Additional Product and Services:

Season Foods would be serving the soup with crispy fish and prawn crackers.

Mission:
To provide a product of the greatest possible value for our customer, thereby achieving sufficient
profit to finance our business. We aim to provide quality food which satisfies our customers
need. The main objective of our firm is to satisfy the needs and wants of our customers. We will
provide a high quality food to our customers. Our mission is to offer variety of goods
maintaining the quality of the product. We also aim to provide best of the environment, food,
service and to offer our products at a reasonable price. Not only would we care about our
customers we also care about our employees. All the employees would be provided with best
working conditions and their opinions would be valued.

Vision:
We aim to make our business more successful by providing more variety of products. To make
sure the quality remains the best. We see Season Foods as one of the best restaurants in coming
years. Our vision is to reach at a point where there is customer loyalty and our restaurant is
always their first choice.

The Market
Context:

Season Foods - flavors for your nutrition. 5

Moderation:
Season Foods operate in two core categories that are Soup and Crackers. As health conscious
people prefer more balanced eating habits, the soup would be rich in flavor and nutrition, and
also because of using organic produce it would provide natural vitamins and minerals to the
customers. The soup would contain a good amount of vegetables and rich ingredients giving a
better taste and quality as compared to competitors product. A soup of bowl prepared freshly for
the consumers would keep them warm and provide them the satisfaction of taste, warmth, flavors
and a good health. The flavors and wholesomeness can be easily achieved by simply adding the
sauces. The soup will be served with the crackers. Crackers would be fresh and crispy adding to
the warm and welcoming experience of having soup.
The business believes that balanced nutrition within a healthy lifestyle, is a key to overall health
and wellbeing for people of all ages. It plays a significant role in maintaining good health,
reducing the likelihood of disease, and also improving the quality of life. Any kind of food can
be enjoyed as part of a healthy diet when consumed in smaller portions balanced diet.

Convenience:
The Season Foods have a pride of offering a good quality food. The firm has tried to keep the
funding and convenience of customers in mind. Due to limited funding the outlet is located at
Sindhi Muslim Society. As the business will grow, more outlets will be opened in different areas
for the convenience of the customers.

Relaxation and Comfort:

The main focus is to satisfy the customers by providing them with a product consisting of good
taste. To provide them a good and comfortable environment where they can feel relaxed and
have a quality time while enjoying their food.

Target Customers:
Season Foods would be targeting upper and middle class level people. The business would be
operating at Sindhi Muslim Society, where number of famous restaurants are located. This fact
will help the firm to attract customers to their outlet. Mostly upper and middle class dines in
these restaurants, which would be the businesss target customers.

Industry Analysis:

Season Foods - flavors for your nutrition. 6

COMPETITORS

SUPPLIE
RS

INDUSTRIAL
ANALYSIS

CUSTOMERS

MARKET

Customers are most valuable for the success of any product or brand. Satisfying
their needs and wants is one of the main objectives. The target audience are the
upper and middle class, especially the ones who are close to the area where the
outlet of Season Foods is located.

The competitors are the businesses which are selling the same kind of products
for example businesses selling soups is our competitor. Business which sell
substitute products are also the competitors of this firm. Competition can be
reduced by introducing unique features in the product which Season Foods are
offering.

Suppliers: the Season Foods suppliers would be retailers from whom the
ingredients would be bought. The firm would need to build a good relationship
with their suppliers so all the ingredients and goods are supplied on time and also
costing a reasonable amount to charge for these supplies.

Market: the market of soup is already available in the industry. Famous

restaurants like China Town, Ginsoy offer a great deal of soup along with their

Season Foods - flavors for your nutrition. 7

other extraordinary courses. It would not be easy to intervene in the market, a lot
of struggle would be required to make the brand name in food industry.

The Competition

Season Foods competitors would be restaurants that are offering soup and also the stalls that are
set up to sell soup to their customers. Few of the competitors are as following:

Season Foods - flavors for your nutrition. 8

Soup Stall in Karachi:

It is difficult to imagine that running a chicken corn soup stall could spark a roaring trade, but
this is exactly what Akram Khalid (not his real name), has been doing for the past 35 years. His
particular cart can usually be identified by the long line of cars parked just by it. Even people
from driving in from Hyderabad stop here for soup. For the customers who prefer to eat on the
spot, the area surrounding the car is littered with chairs, which is usually full of people devouring
a thick, steaming bowl of chicken corn soup. While taking orders, Khalid continues to stir two
steaming cauldrons, which sit atop a burning stove and are never allowed to get cold. Small cups
line the cart, ready to be filled and distributed to customers, along with large jugs full of green
chilly, red chilly, and soy sauce.
Reference: https://ismailimail.wordpress.com/2009/03/14/soup-stall-in-karachi/
Saifi Chicken Corn Soup:
It is located near Pakistan Chowk area. The aroma of chilly sauce and vinegar with the puffs of
steam that escape from the sides of the lid covering the pot of soup in the vendors cart hits the
spot. It is after 9.30pm and they still have customers lined up.
Reference: http://www.dawn.com/news/1158153
Soup Stall at Shahrah-e-Faisal:
This soup stall is at Shahrah-e-Faisal near Faran hotel. They sell only chicken corn soup. That
street is famous for its soup and two other stalls that sell fish and haleem. The owner of the soup
stall offers the chicken corn soup in very low prices and customers enjoy the soup and they seem
to like it too.
Reference:

http://eatingoutkarachi.blogspot.com/2013_01_12_archive.html

Marketing Strategy
Product:
The product that has been offered by Season Foods is soup and crackers for winter season. The
soup would be made from organic and high quality ingredients. Three different flavors of soup
are being offered; chicken corn soup, hot n sour and Season Foods special.

Season Foods - flavors for your nutrition. 9

Packaging/Serving:
The soup would be served in delicate china bowls, along with the fresh and crispy crackers.

Place:
Initially Season Foods is planning to operate its 1st outlet on the famous area, Sindhi Muslim
Society. Due to high level of target customer availability the firm is going to functionalize a great
profitable business if it succeeds to capture a high number of customers. The place would be
convenient for the people who live nearby. When the business will start to grow, more outlets
would be opened in different areas for the convenience of customers and also to get profits.

Pricing:
Season Foods is targeting upper and middle class income bracket so the pricing of product would
be affordable but a little high as compare to the competitors prices. The reason for charging
more than competitors is because the firm is using fresh produce to make soup. The business is
offering its customers with good quality and taste product which people crave and especially
went its winter everyone wants to have something that would keep them warm. When it would
be available in an affordable price and they are served in a good environment then it would
convince them to at least try the product. The prices would be sufficed when the customers will
get satisfied by trying the soup.
Season Foods would be offering 3 servings for soup which would consist small, medium and
large bowl of soup. Crackers are complementary and would be served according to the size of
bowl that is ordered by the customer. The beginning prices would be from 200 to 350rs.
For the first week of opening, Season Foods would be charging 10% less for its product to attract
a large number of customers.

Advertising/ Promotion:
Advertise:
Season Foods will advertise through social media sites and also they would form alliances with
different sites related to food. That would provide us a wide range of customer throughout city.

Promotion:
For promotion the business will perform small BTL activity in malls to give awareness of its
products to its target customer. Season Foods will have their stall in different malls. People
would be given free samples of soup so they can taste it. Furthermore, their feedback will be
taken and if there would be any negative feedback then a quick action would be taken to
overcome them. To provide satisfaction to the customers is the main motive of the business.
Discounts would be given when large quantity of soup would be ordered by customers.
Since the owners of this business are the students of Iqra University, there would be a 15%
discount for all the students that currently belong to this institution.

Season Foods - flavors for your nutrition. 10

Opening Event:
Season Foods will start operating from 11th December15. Since the weekend would be on its
way, so there will be a high probability of getting more customers.
For the first week of opening, Season Foods would be charging 10% less for its product to attract
a large number of customers.

Charity / Fundraising:
The business also cares deeply for the welfare of the society, therefore, 1% of each order will be
donated to fund raising activity. 20% amount of the total orders for the month would be given to
NGOs on special occasions. This will not only help the firm to support poor and needy people,
but also to get an increased no. of customers who support these noble causes. So this strategy
would be a win-win for Season Foods.

Operations Plan
The operations plan would include how the restaurant would be run on daily basis. Following are
the plans made for operating the restaurant.

The Outlet:
Seasons Foods has a small outlet. Therefore, a small restaurant that serves soup and crackers to
their customers. Some area of the shop would be reserved to make a kitchen so all the food
preparations can be done there. Rest of the area would be left to put up tables and chairs.

Season Foods - flavors for your nutrition. 11

Design and Interior:

The walls would be painted with a light shade peach. Some eye capturing paintings would be
hanged on the walls. Small tables with two or four chairs would be kept in the restaurant. The
color of the tables and chairs would be chocolate brown. There would be wooden tiles all over
the shop. The restaurant would be illuminated enough for the customers to have a clear view. A
relaxed and peaceful type of ambience would be created. Music would also be played while
customers dine in and enjoy their soup.

Serving Operations:
When a customer will enter the shop they will be greeted by the staff of Season Foods. Fresh and
crispy crackers would be served to them which are complementary from the restaurant. When
they would place their orders, they will be served as quickly as possible maintaining the high
level of quality.

Kitchen Operations:
The Season Foods would have a chef and two three people to help serving the customers. Chef
will prepare the soup on time. Crackers would be fried properly keeping in mind to keep them
crispy and also not burn them. Cleanliness would be the most important part of the kitchen. All
the food must be prepared in hygienic way.

Managing Operations:
Manager would keep a check and balance on how the customers are treated and would solve any
problems that occur at that time. Manager will go the customers and ask them if they have any
issues with the service and whether they liked the soup or not.

Management
This business venture is started by five group of people. They all are partners in this company.
These people will be playing different roles in running the firm.

Afreen Rehmatullah: She is the president and founder of the company. Everyone elected her
as a president because she is the one who came up with this idea. Her responsibilities are to run

Season Foods - flavors for your nutrition. 12

the overall business in coordination with other group members. She would be making all the
important decisions for this firm by taking in view the opinion of her staff as well.

Tazeen Ahsan: the co-founder of this business, is the vice president of Season Foods. Shell be
working side by side with president and also keeping checks on manager and other staff
members. She has also being successful in getting an outlet for this company since the shop is
owned by one of her uncles, and he was willing to invest in this firm demanding 20% of the
profits the restaurant will make.

Sidrah Hussain: She would be managing the staff holding the position of a Manager. The
responsibilities would include taking care of the customers; whether they are treated and served
well or not, to motivate the staff and enforce teamwork, to keep a check and balance on the
quality of the product that Season Foods is offering. She would also take care of the financials of
the business.

Humna Idrees: The Companys Interior Decorator and Operations Manager. The restaurants
dcor would be set up with the help of Humna. She would be in charge of making the
environment comfortable and relaxing yet exciting for the customers and creating a welcoming
atmosphere. Moreover, her duties doesnt end here. She will also be handling day-to-day matters
of the restaurant. Operations Manager and Manager would collaborate to achieve the objectives
of Season Foods.

Aquib Fancy: He is the most important person in this company since he is the Head Chef and
also CMO (chief marketing officer) of the company. He is qualified in the field of marketing and
has a diploma in culinary skills as well. His duty would be to guide the staff working under him.
He would also be the main person for doing the marketing of Season Foods.

Together these five members intend to establish a successful restaurant and take it to the top in
Food industry.

Financials
Business Model
Revenue Sources:
The main source of revenue for Season Foods would be the number of sales incurred in the
business.

Season Foods - flavors for your nutrition. 13

revenue

year 1

year 2

year 3

year 4

year 5

1,800,00
0

1,890,00
0

1,984,500

2,083,725

2,187,91
1

Cost Drivers:
Fixed costs would be shop premises, office fixtures and machinery. These fixed costs would
remain constant over a period of time. The fixed cost would have to be paid no matter Season
Foods make any sales or not. The business would need to sell enough units to overcome these
costs. In long-term the Season Foods fixed costs can vary when the firm will introduce more
products and would order new machinery. Expanding the company may also change the amounts
of fixed costs.
Variable costs would occur on the basis of production and selling the goods. The cost of raw
materials would vary.
To earn and maximize profits, the firm will have to minimize its costs and also to maintain the
high quality of the product it will offer.

Fixed Costs
Variable
Costs

year 1
13412
70
22860
0

Data
year 2 year 3 year 4 year 5
13656 13898 14142 14386
02
93
11
13
24078 25369 26737 28187
6
5
5
8

Investment Size:
All the partners have made equal investments in the firm.
owner's equity

1,000,
000

1,000,
000

1,000,
000

1,000,
000

1,000,
000

For the expansion plans and introducing more products, the firm will reinvest a small portion of
earnings it has earned.

Critical Success Factors:

The most difficult factor would be the product Season Foods is offering. More variety is
promised in the coming seasons and in long term. It is not confirmed that customers would be
more welcoming of the new products the firm will introduce.
To make the product successful, Season Foods need to advertise and promote their product to
create customer awareness, and to attract a higher number of customers.

Season Foods - flavors for your nutrition. 14

The policies of promotion and advertising would change time by time according to the market
trend. The risk factor would be whether these tactics would actually work or not. To overcome
these risks, market research would be done and all measures would be taken to accomplish the
objectives of the firm.

Break-even Analysis:
Break-even Analysis
year 1 year 2 year 3
S.P
less: Variable Costs
Contribution Margin
Contribution Margin
Ratio

Break-even (units)
Break-even (Rupees)

360

year 4 year 5
416.74 437.58
5
23
53.475 56.375
05
64
363
381

45.72
314

378
48.15
72
330

396.9
50.739
01
346

0.87

0.87

0.87

0.87

0.87

4267.
75
15363
92

4140.
16
15649
81

4015.1
6
15936
18

3893.0
0
16223
90

3773.8
4
16513
66

The break-even analysis has been done to figure out the point of sales where there wouldnt be
any loss or profit. The firm is new so it would be better to break-even rather than going in losses.
The data shows the no. of units and also in amount that how much would be required to break
even. The firm would need to make more sales than the break-even in order to obtain profits.

Ratio Analysis

Season Foods - flavors for your nutrition. 15

Profitability ratios:
Gross Profit Margin:
2015
0.4

2016
0.4

2017
0.4

2018
0.4

2019
0.4

The gross profit margin remained constant in five years because there is no impact on
gross profit

Net Profit Margin:

2015
0.25

2016
0.25

2017
0.24

2018
0.24

2019
0.24

Due to COGS and distribution costs, it has slightly decreased in year 2017 to 2019

Operating Profit Margin:

2015
0.27

2016
0.27

2017
0.27

2018
0.27

2019
0.27

It determines the quality of company and best look operating margin over time in the
company and it is constant in all years

Return on Assets:
2015
0.31

2016
0.32

2017
0.33

2018
0.34

2019
0.35

The percentage of ROA for Season Foods is 0.35, which, as compared to the baseline of
0.34 indicates that there is a good improvement in this area and the company can remain
competitive and continue to operate successfully.

Return on Equity:
2015
0.44

2016
0.46

2017
0.49

2018
0.51

2019
0.53

Season Foods - flavors for your nutrition. 16

It indicates that management may effectively manage the profits earned based on the
owners investment in the company

Liquidity ratios:
Days Inventory Held:
2015
0.02

2016
0.02

2017
0.02

2018
0.02

2019
0.02

Days inventory held would remain constant in all five years. As company is clearing its
inventory to generate cash for liquidity but the average daily cost of sales is similar in all
five years.

Activity Ratio:
Inventory Turnover:
2015
30

2016
28.6

2017
27.3

2018
26.1

2019
24.9

In 2019 the company have less inventory turnover ratio as compared to last four years
which is due to decrease in inventory of company.

Fixed Assets Turnover:

2015
1.34

2016
1.38

2017
1.43

2018
1.47

2019
1.52

In 2019 the company have more fixed asset turnover due to increase in shop amount

Total Assets Turnover:

2015
1.25

2016
1.29

2017
1.34

2018
1.38

2019
1.43

The Asset Turnover ratio is an indicator of the efficiency with which a company is
increasing its assets

Season Foods - flavors for your nutrition. 17

In 2019 the company has increased its assets and sales have also increased significantly
in the same year thats why the asset turnover ratio is more in 2019

Overall Company Performance:

The companys assets are more which indicates that the business performance is better in five
years because there are no liabilities, and assets have witnessed a significant increase over these
years. This is due to continuous investment in product facilities and infrastructure to support the
growing scale of business. Company maintains a months inventory to meet sales demand and
production requirements and other receivables and profits have strengthened companys overall
equity position.

Improvement:
Season Foods would need to increase the number of sales in order to earn more revenue, also
keeping in view the maintenance of the quality of the product.

Appendices
1. Financial Statements

Season Foods - flavors for your nutrition. 18

Income statement:
Projected Income
Statement (Rs)

year 1

year 2

year 3

year 4

year 5

Revenue

1,800,000

1,890,0
00

1,984,5
00

2,083,7
25

2,187,9
11

Net Sales

1,800,000

1,890,0
00

1,984,5
00

2,083,7
25

2,187,9
11

Cost of Goods Sold

1,080,000

1,134,0
00

1,190,7
00

1,250,2
35

1,312,7
47

Gross Profit

720,000

756,00
0

793,80
0

833,49
0

875,16
5

26400
1818
1212
3636
6120
201600
240786

29040
1836
1224
3672
6242
211680
253695

31944
1855
1236
3709
6367
222264
267375

Expenses:
Utilities expenses
Electricity
Gas
Water
Telephone
Maintenance
Salaries Expenses
Sub Total

24000
1800
1200
3600
6000
192000
228600

35138
1873
1249
3746
6495
233377
281878

Operating Income

491,400

515,21
4

540,10
5

566,11
5

593,28
6

Taxes

49,140

51,521

54,010

56,611

59,329

Net Income

442,260

463,69
3

486,09
4

509,50
3

533,95
8

Season Foods - flavors for your nutrition. 19

Projected
Balance Sheet

year 1

year 2

year 3

year 4

year 5

Bank Balance
Raw Material
Inventory

64,990

58,491

52,641

47,376

42,638

36,000

39,600

43,560

47,916

52,707

Total Current
Assets

100,99
0

98,091

96,201

95,292

95,345

Season Food
Machinery

190,00
0

171,00
0

153,90
0

138,51
0

124,65
9

Shop

1,000,
000

1,058,
459

1,113,
465

1,165,
426

1,214,
707

Office Fixtures

151,27
0

136,14
3

122,52
8

110,27
5

99,247

Total Fixed
Assets

1,341,
270

1,365,
602

1,389,
893

1,414,
211

1,438,
613

Total assets

1,442,
260

1,463,
693

1,486,
094

1,509,
503

1,533,
958

net income

1,000,
000
442,26
0

1,000,
000
463,69
3

1,000,
000
486,09
4

1,000,
000
509,50
3

1,000,
000
533,95
8

total equity

1,442,
260

1,463,
693

1,486,
094

1,509,
503

1,533,
958

Assets:
Current Assets:

Fixed assets:

owner's equity

Ratio Analysis
year
year
1
2
Profitability Ratios:
Gross Profit Margin
Net Profit Margin
Operating Profit Margin

0.4
0.25
0.27

0.4
0.25
0.27

year
3
0.4
0.24
0.27

year
4
0.4
0.24
0.27

year
5
0.4
0.24
0.27

Season Foods - flavors for your nutrition. 20

Return on Assets
Return on Equity

0.31
0.44

0.32
0.46

0.33
0.49

0.34
0.51

0.35
0.53

Liquidity Ratios:
Days Inventory Held

0.02

0.02

0.02

0.02

0.02

Activity Ratios:
Inventory Turnover
Fixed Assets Turnover
Total Assets Turnover

30
1.34
1.25

28.6
1.38
1.29

27.3
1.43
1.34

26.1
1.47
1.38

24.9
1.52
1.43

Break-even Analysis
year 1 year 2 year 3
S.P
less: Variable Costs
Contribution Margin
Contribution Margin
Ratio

Break-even (units)
Break-even
(Rupees)

360

year 4 year 5
416.74 437.58
5
23
53.475 56.375
05
64
363
381

45.72
314

378
48.15
72
330

396.9
50.739
01
346

0.87

0.87

0.87

0.87

0.87

4267.
75
15363
92

4140.
16
15649
81

4015.1
6
15936
18

3893.0
0
16223
90

3773.8
4
16513
66