TABLE OF CONTENT

Content

Page

1.0 Introduction

1.1 Objectives

1.2 Mission

1.3 Vision

1.4 Product and Service

1.5 Key to Success

2.0 Company

4
5

2.1 Company Ownership

2.2 Start-up Summary

2.3 Location and Facilities

3.0 Product

8
8

3.1 Product Description

3.2 Competitive Comparison

3.3 Sales Literature

3.4 Sourcing

3.5 Sales Program

10

3.6 Future Product

10
10

4.0 Market Analysis Summary

4.1 Market Segmentation

11

4.2 Target Market Segment Strategy

12

4.2.1

Market Need

12

4.2.2

Market Trends

13

4.3 Industry Analysis

13

4.3.1

Trend in Food Service Retail

14

4.3.2

Competition and Buying Pattern

16

Main Competitor
5.0 Strategy and Implementation Summary
4.3.3

5.1 SWOT Analysis

16
17
18

5.1.1

Strength

18

5.1.2

Weakness

18

5.1.3

Opportunities

18

5.1.4

Threats

18

5.2 Competitive Edge

19

5.3 Marketing Strategy

19

5.3.1

Brand Challenges

19

5.3.2

Positioning Statement

20

5.3.3

Pricing Strategy

20

5.3.4

Marketing Program

20

5.4 Sales Strategy

21

5.4.1 Sales Forecast

6.0 Management Summary

21
24

6.1 Management Team

24

6.2 Organization Structure

24

6.3 Personnel Plan

7.0 Financial Plan

26
26

7.1 Start-up Funding

26

7.2 Break Even Analysis

28

7.3 Projected Profit and Loss

28

7.4 Projected Cash Flow

29

7.5 Projected Balance Sheet

31

7.6 Business Ratios

8.0 Appendices

32
36

1.0 Introduction
UNCLE DENS is a newly start-up fast food restaurant in Malaysia. It provide a new
brand of burgers for customer. The objective of UNCLE DENS is to be a famous and
well-known fast food restaurant in Malaysia. Our mission is spread out our brand
UNCLE DENS in every distinct of local country. In future, our business will expand
internationalization and franchise outlet will be every country. UNCLE DENS is
primarily sold unique burgers, drinks and desserts. We have few key to make us
success through creative and innovative method.
Our company is a partnership corporation and build up by 19 people. Each of the
shareholders are holding their responsibilities. We have did some marketing research
to analyse who is our customer and where should be our franchise outlet. UNCLE
DENS has few strategy to manage and control the organization. It helps our
organization to success and meet the objective in future. Our organization structure is
bureaucratic structure and has three level of management that is top management,
middle management and first-line management.
We hope UNCLE DENS will be the top of the franchise business and our
franchise outlet will be everywhere whether local or foreign country.

1.1 Objectives
To develop UNCLE DENS be a famous and well-known fast food restaurant in
Malaysia.
To increase our country reputation through franchise business.
To extend the number of outlets rapidly and become a effective and efficient
franchisor.

1.2 Mission
Our main goal is to expand the number of outlets in every distinct of local country.
We will provide effective and efficient service to our customers. We also provide a set
of services for franchisees to attract more prospect franchisees.

1.3 Vision
Our vision is to be one of the top well-known fast food restaurant and the number of
outlet will stand on every foreign country. Our organization will be a well-known
franchise business in ten years later.

1.4 Product and Services

Our company has three main products of burgers as Black Chick, Green Chick and
White Chick. The trait of burger as Black Chick, Green Chick and White Chick that
made by flavour of bamboo charcoal, green tea and wheat flour. These burgers are
filled with fried chicken chop except White Chick that filled with long cheese
sausage. The ingredients inside these burgers are cabbage, tomato, cucumber and few
sauces such as chili, tomato and mustard.
Furthermore, we also provide side food such as Snow Flake, Pumpkin Soup and
Apple Dew. The ingredients of Snow Flake include the red bean, green bean, taro
balls, sago, pearl, coconut milk, soft sugar, barley and grass jelly. Pumpkin Soup is a
soup that made by pumpkin, milk and corn. Apple Dew is a drink combine with two
types of fruits that are honeydew and apple.
We are provide self-services for customers and not to serve customers in physical
shops.
Because of change in internal and external environment, we will plan new
marketing strategies to solve turbulent time depends on situation. If there are diversity
of customer needs and wants, we will diverse our product based on customers needs
and wants.

1.5 Keys to Success

To success in the business we must: Build unique image of our organization to positioning our products in customers
mind.
Create an innovative and creative of products to differentiate from competitors.
Treat our employees and franchisees well to increase our reputation and
productivity of organization.
Control the cost at all time to ensure the financial in good condition.
4

 Screen out the higher store traffic and be our store to ensure the rate of visitors
flow is higher.
Make sure the price is affordable and can be consumed by customers.

2.0 Company Summary

What is UNCLE DENS?
UNCLE DENS has sells a special burger with a choice of bread. We use the concept
of McDonalds, where the burger are all made from fresh potatoes and fried chicken,
sauce and so on. Our outlet also provides excellent and friendly customer service to
support the ambience of fun, energetic and youthful lifestyle.

Youthful and fresh surroundings

We will imitate successful establishments, such as Burger King and McDonalds,
which represent the majority of our core target market, between 18 to 35 years of age.
Our store will feature display cooking of our featured McDonalds from making to
frying. Our customers will also be able to read our in-house brochures in regards to all
knowledge about McDonalds and our featured sauces. Our store will be decorated
with fast food setting, such as a bright counter and display menu on the wall.

Quality food
Each store will offer nothing but freshly burger, special drink and variety of dessert,
all served with old-fashioned home-style care.

Open weekdays and weekend

Our store is open 7 days in each week including public holiday and start from 9 am to
11pm.

2.1 Company Ownership

UNCLE DENS is a privately held company. It will be registered as a Limited
Company, with ownership 5.3%-Ker Zhao En, 5.3%- JH, 5.3%-HAIQI, 5.3%-LIAW,

5.3%-LOW, 5.3%-KYJESS, 5.3%-LIMFL, 5.3%-HOONG, 5.3%-WEE, 5.3%-YOU,

5.3%-FONG, 5.3%-KIAT, 5.3%-HUI, 5.3%-AARON, 5.3%-MEGA, 5.3%-JOHAN,
5.3%-MEGA, 5.3%-JACK, 5.3%-TINY

JOHAN and MEGA have more than 4 years of experience in the food industry. Both
are currently employed as Corporate Staff of SUSHI KING and BURGER KING.
HAIQI, LIAW, LIMFL, YOU and Fong have more than 5years of experience work of
waiters. They are employed as waiters of Opium KL restaurant.
JH, MEGA, GARY and JACK holds entrepreneurship degree from Tunku Abdul
Rahman University College. A true entrepreneur by heart, his latest entrepreneurial
project is a Gold sales in the heart of Indonesia.
Kyjess, Low, Aaron and Wee hold a Human Resource degree from the University of
Salford. Their projects are widely varied from relationship of customer. They expert
on how to make a long term relationship with customer and how to know the
customer need and wants.
Hoong and Hui hold a business accounting degree from SEGI University. They
completed their internship and served as accountant for Ministry of Finance in
Malaysia.
Ker Zhao En and Tiny holds a Marketing degree from Robert Gordon University.
They completed their internship and served as a marketing server in APAC regional
centre in Singapore.

2.2 Start-Up Summary

Start-Up Requirements

RM

Start Up Expenses
Kitchen and Fixture

33,700

Furniture and Interior

22,500

Legal

8,000

Rent

20,000

Packaging and Stationary

11,500

Contingencies

5,600

Total Start-up Expenses

101,300

Start-up Assets
Cash Required

76,000

Other Current Assets

Long-term Assests

Total Start-up Assets

76,000

Total Requirements

177,300

2.3 Location and Facilities

There are about 500 square foot restaurant that will be located in Tunku Abdul
Rahman University College Johor Branch. This is located at the main way that all the
lecturer and student will walk by, it was placed at the way from Block B and office
corridor.
Our college have about 250-350 students and about 30-60 lecturer and other staff
on that day. We are focus on who study and work in our college. Their average
spending power is about RM10-15 per day so we will focus on this. All member of
this college will be our customer.

3.0 Product
UNCLE DENS are focusing selling special burger, drink and snow flake to our
customer. Our main point is serving our customer with good service and delicious
food.

3.1 Product Description

Our company has three main products of burgers such as Black Chick, Green Chick
and White Chick. The trait of Black Chick and Green Chick are using black bamboo
charcoal or green tea bun and combine with fresh vegetable and crispy fried chicken
chop, then we will add our secret sauce and make our burger become nice and tasty.
Besides, our White Chick are using fresh wheat flour bun and filled with long cheese
sausage and cover with our sauce such as chili, tomato and mustard.
Furthermore, we also provide some side food such as Snow Flake, Pumpkin soup
and Apple Dew. The ingredients of Snow Flake include red bean, green bean, taro
balls, sago, pearl, coconut milk, icing sugar, barley and grass jelly. Then our Pumpkin
soup is made from fresh pumpkins, milk and some corns. Moreover, Apple Dew is our
special drink that combine honeydew and apples. We provide fresh lime as our add on
for Apple Dew if our customer needed. Because lime can make our drink have extra
sweetness and sour taste.

3.2 Competitive Comparison

UNCLE DENS has several advantage that leading from competitors:

Has few unique flavour of burger such as bamboo charcoal, green tea and
wheat flour.

Provide unique dessert for customer enjoy.

Make sure the quality of product and services at good condition.

Provide a comfortable and cleanliness environmental for customer.

Attractive of exterior and interior design.

Has a good supply chain and distribution system.

Competitor

Quality of Environment

Interior and Supply Chain Operation

Products

Exterior

and

and

Design

Distribution
X
/
/
/

UNCLE

Service
/

System
/

DENS
McDonalds
Burger King
KFC

/
/
/

/
/
/

/
/
/

/
/
/

Hours

3.3 Sales Literature

Our sales literature consists of menus supplied by UNCLE DENS and poster. The
menu will offer catering prices explain the difference between our burger specials and
those of our competitors. We also show our hours of operation. We will provide
selective order list and place the catering and poster near besides the office .We will
also use online to advertise UNCLE DENS.

3.4 Sourcing
Burger bun orders from supplier. Organic vegetables will be delivered weekly by our
supplier directly from the Australia. We also make a contract with vendor to
exclusively manufacture our trademark and all of our merchandise will be printed and
produced by our partner office in Malaysia.

3.5 Sales Programs

The marketing mix, 4P, will have the same for each opening of UNCLE DENS.
Below are the programs that we will develop to open location.

Grand opening
The new outlet will have outdoor signage as soon as possible. We want the signage to
be supported by poster before the opening.

Point of purchase
We will use Opening promotion available to attract public. We will also offer
combo and a la carte.

Direct Mail Piece

A stand-alone piece, folded, will be produced in full colour on heavy weight paper.
Inside will be all the important details of UNCLE DENS, explanation of our menu
and prices.

3.6 Future product

For now, we will focus on selling burger. However, as we grow further, we will add
new categories to our menu, such as Sandwich and different type of favourite.
In the future, our growth strategy will be offering the franchise of our brand to food
entrepreneurs in the local. We will also provide delivery service on click and mortars
method.

4.0 Market Analysis Summary

Consumer expenditures for fast food in TARUC during the end year 2015, followed
by the preference of consumer. There are more and more new establishments such as
fast food franchises and fancy restaurants around Segamat area.

10

Weekend will be our most core target market to consume because those days they
can enjoy their mall going activities.
Age: Teenagers, currently studies in college.
Gender: We will target in both male and female.
Preference: We will understand customer needs and wants then tried to fulfil
their taste.

According the survey in TARUC students and staffs between 18- 40 years old,
90% of those interviewed like fast food but 10% of them are dislike fast food. The
survey also provided the following particular reasons food the increasing popularity
of fast food:
White-collar workers in school less to bring their lunch and enjoy fast food
with their colleague.
Parents are willing to spend more money for their children meal. Fast food is
their first choice because of the taste is more acceptable by their age group.
Eating outside is the students habit in college life. Fast food is not very luxury
and expensive for them, and they can enjoy it with their friends.

4.1 Market Segmentation

We are targeting college students as our primary market. TARUC is the best place
because is the place where students often gather. Due to many class need to attend and
heavy extra-curricular activities among college students, it is common for students to
have lunch inside TARUC, and not at home or hostel. They tend to flock to canteen
inside TARUC.
Our secondary market segment is staffs in TARUC Since their working time is 8
hours, so they spend more time at TARUC and tend to flock to canteen inside TARUC
to have lunch.
Lastly, TARUC sometimes will come with some guests, especially opening day
and convocation day. They will busy in look around the campus and have no time to
stop for a full meal during visiting. UNCLE DENS is the alternative for a quick bite
while look around the campus.

4.2 Target Market Segment Strategy

11

UNCLE DENS intends to cater to the bulk of college students in TARUC. We

have chosen this group for several important reasons. It is our goal is to expand the
number of outlets in every distinct of local country and we believe that the age group
from 18 to 25 is the primary age where brand building efforts could take place. They
are on limited or fixed incomes and seek a value or price relationship that will not
stretch their budgets.
Our secondary target is between the ages of 25 and 50, which are a heavy lounge
or restaurant user group. They are more flexible in budgets and seek more than a
value or price relationship.
Our lunch strategy is dual purposed. First, we are featuring burger to fill
Malaysians craving for fast food as most ideas of lunch is a quick bite not a heavy
meal. Second, we want to keep the price point at lunch as fair as possible.

4.2.1 Market Needs

A recent Consumer Trend identified the following needs among our target
markets. Our core group:
Wants variety and flavor in its food.
Looks for speed of service.
Insists upon a clean, friendly, and attractive environment.
Enjoys eating outside.
Wants an entertaining and fun experience.
Comes from various ethnic backgrounds.

4.2.2 Market Trends

According to the Euromonitor International reports, current trends in Malaysia
are:

Consumers increasingly going online to shop.

Consumers in travel industries are willing to spend more.
Household debts are rising among consumers.
Busy consumers cook less at home.
Middle class consumers spend the most.
Street food or food trucks.
House-made or artisan ice cream.

4.3 Industry analysis

The fast food services are the fourth-largest subsector within Malaysia consumer
food services. Fast food is almost exclusively made up of chained operators
(representing 98% in value terms), with chicken as the most prominent style.
12

Busier lifestyles and the resulting demand for convenience have driven growth in
fast food sales. Particularly via drive-through, delivery and takeaway options,
which are prominent features of this sector.
However, value sale growth has been affected by the proliferation of constant
promotional pricing and discounts. Furthermore, growing health-consciousness
will likely affect value sales trends

across several fast food categories, as

consumer seek more nutritious fare. For example, although currently just a small
proportion of the market, the bakery fast food category (which includes
establishment offering sandwiches and subs, among other things), registered the
strongest growth in term of value sales and outlet expansion from 2008 to 2012.
The compound annual growth rate (CAGR) of Malaysia fast food sector between
2008 and 2012 is 9.2%, reaching total sales of US$1.4 billion. The CAGR of the
future sales growth is expected to slow slightly, it is 6.3% between 2012 and
2017.
The top chained brands in this sector include Kentucky Fried Chicken (KFC),
-McDonalds, Dunkin Donuts, Marry Brown and 7-Eleven.

4.3.1

Trend in Food Service Retail

Malaysia has a population of more than thirty million, which is given priority to
with Malays. Chinese also has quite high proportion, about 24.6%.Indian is the
third largest ethnic accounted for 7.3%. Average national income in 2014 was
US$10,426 it is the highest national income country at the Southeast Asian
except Singapore and Brunei. Because of its national income is higher, and the
geographical position close to Singapore, is conducive to the development of the
local consumer market.

a) Malaysia of catering service market scale continues to grow

Due to the busy city life, and the income increase, the proportion of the
Malaysia consumer taking outside food also continues to increase. Even in the
holiday, the proportion of outside food population is also quite high. Many
young Malaysian consumer do not know how to cook, and the increase of
working women, also let traditionally women in charge of the cooking at home
do not have time to prepare meals at home. These social development, make the
Malaysia population taking the outside food increase. In addition, the
consumer's social life is also more hasten is multivariate, Malaysia local
13

consumer also like to have dinner together with friends, activity and social
interaction in the process of dining, these social development trend, also more
contributed to eat outside. According to Euromonitor in May 2016, according to
the 2015 Malaysian food service market size is about 35.74 billion ringgit
(calculated in accordance with the current prices). From 2011 to 2015 in
Malaysia catering market scale, with 4 ~ 6% each year, the range between the
stability of growth.
In 2015, the three financial challenges facing consumers in Malaysia at least,
one is slowing economic growth, the other is the Malaysian government in April
2015 started to levy a Tax on Goods and Services (GST), third it is ringgit
devaluation. These three factors together to push up inflation in Malaysia,
especially in the second half of 2015, forcing many households tighten their
belts, to cope with the increased cost of living. Especially GST is imposed,
increased consumption costs 6% directly, in addition to the direct impact on
consumer willingness to also change the consumer behaviour. However, after
2016, with the consumer gradually adapt to the new tax system, the local
consumption will also gradually restored, but growth is slowing. According to
Euromonitor estimate, Malaysia in 2020 catering service market will grow to
38.8 billion ringgit (calculated in accordance with the current prices), but the
2015-2020 significantly slow the growth of, 1 to 2% annually to the amplitude
of slow growth.

b) A new type of catering services popular.

Malaysia's national three primary groups - Malays, Chinese and Indian, the
three groups have obvious different eating habits. Malaysia offered food
catering service type is diverse, in addition to the local consumer groups in
Malaysia, also attracted many foreign tourists to come. Although the traditional
patterns of the restaurant is quite popular, but the observation according to
Euromonitor, international food group, chain restaurant channel and online
ordering of catering services, catering service market in Malaysia also occupy
important position or grow. Part in the international food group, many of the
international catering company in Malaysia continuously updates its monthly
menu, in order to absorb the attention of consumer and further to try. Because of
14

catering service market in Malaysia to flourish, consumers also have quite a

number of options, so meals launch new is meet consumer pursuit of fresh
psychological. Along with the perfection of the network environment in
Malaysia and the continued growth of the Internet users, Internet retailing is a
significant growth. Most of the consumers of online shopping convenience, and
price concessions. There are more and more consumers found that can buy on
the Internet and the traditional entity pathways of different goods.
A study by Google in 2014 Internet users, according to a survey released by the
43% of Malaysian that no online shopping experience of Internet users said, in
the next 12 months, will be going to try it on the Internet to purchase goods.
Internet order to home service, also with the rise of the network popularization,
the network shopping gradually developed in the Malaysian market. For the
pursuit of efficiency and convenience of consumer groups, Internet order to
home service provides a good choice of time and manpower.
At an early stage, mainly by the pizza industry began to provide online
reservation office services, but there are such as KFC, McDonald's will see
order to office web services market potential, and join order to home service
provider. In addition to providing network by this order to the outside of the
home service, also has the third party delivery company intends to launch
similar services, such as DeliveryEat, Foodpanda, Food Express is intended to
provide a network order to home service. Third-party Internet order to
government service providers can cooperate with more food and beverage
service industry, not only can provide convenient reservation service consumers,
but also provide a variety of food choices.

4.3.2 Competition and Buying Patterns

In the modern era globalization, we have substantial competitors in the fast food
industry such as McDonalds, Burger King and KFC. In the fast food industry, we
have highly competitive between this few fast food restaurant. Each of the fast food
restaurant has their own competitive advantage. UNCLE DENS also provide main
products and unique products for customer.
Every customer has their own buying pattern for different needs and wants. Based
on the research, the majority of people is like to eat fast food for their meal. In the
majority of the people, they will eat almost 5-9 meals of fast food in each week. So, it
15

is the profitable target of market. But, we have to use creative and innovative ways to
competitive with other competitor.

4.3.3 Main Competitors

UNCLE DENS is located at the central business district and huge of store traffic
around us. In the same area, we are faced substantial competitors of the same industry.
There are many competitor around us and we have to understand competitive
advantage then positioning our brand in customers mind. The main competitor
around us is:-

i)

McDonalds
McDonalds is one the well-known of the fast food restaurant and own more
than 185 franchise outlet in Malaysia. It is using three of the strategies to
competitive with competitors as cost leadership, differentiate and focus. First,
cost leadership is provide similar products and service to customer at same or
lower price level. Besides, differentiate means a firm offers superior products
at similar cost to other firms inferior products. Lastly, it will focus on a
narrow segment of market and offer specialized products and services.

ii)

Burger King

Burger King Corporation is the worlds second largest fast food hamburger chain. The
main strategies of Burger King is to make sure the quality of the products at good
condition. In the operational manual of Burger King, it stated quality is a wonderful
tonic for improving operations. And it will increase company reputation and brings
many advantages for entire organization. Through managing and improving the
quality, the firm will able to build and implement successful strategies as well as
provide competitive advantages.

iii)

KFC

Kentucky Fried Chicken is primarily to manage and control their supply chain and
distribution system. It allows the fast food giant to cultivate relationships with
business partners and establish a footing in areas where the competition is still
struggling. Compare to other competitors, its supply chain and distribution system is
much better set up around world. It has less difficulty in establishing its presence in a
new area. Besides, it also success in its secret recipe that contains spices uses in the
products sold.

16

5.0 Strategy and Implementation Summary

UNCLE DENS is the start-up company and our main mission is to expand number of
outlets in every distinct of local country. We will open the first outlet to become our
"market testing area," and as we go further. We are looking forward to earn market
share by adopted distinct strategy to attract the people and prospects to become our
customer and to earn the competitive advantages from the competitor.
We will prepare with quality ingredients at a reasonable price and our customer can
enjoy our standard menu fare.
In addition, UNCLE DENS also offer franchise opportunities to help further expand
its reach, along with adding an additional revenue stream.

5.1

SWOT Analysis

5.1.1 Strength

Special product
High gross margin on meal product
Lower risk of development.
Ability to capitalize on brand and concept with expansion through franchise
and other market segment

5.1.2 Weakness

Still need to improve the store layout and design

Product may be vulnerable to weaken over time

5.1.3 Opportunities

Little barriers to entry allow for immediate business opportunities

Offer addition catering services
Market expansion through event catering and franchise ownership

5.1.4 Threat

Government Issue (restaurant operation, food safety, worker protection)

Rising operating cost
Competitor involve
Consumer believe that meals at home are healthier than those prepared in
restaurant

17

5.2

Competitive Edge

5.3

Identifiable brand, professional approach and solid management

Enthusiastic and friendly staff
Unique modality of fast food availability

Marketing Strategy

A success business will have to be achieved by doing more that serving great food and
providing friendly services. We will start our first outlet as a "market tester" that could
become a model of the expanding number of outlets in the future and we will utilize a
marketing plan to build customer traffic. We will continually strive to win more
customers by being proactive rather than reactive in our marketing effort and stay
current with popular trends. We will focus on establishing a strong identity in our
community with a grand opening.
Advertising and promotion also is an important marketing tactics to increase
customer awareness of our product. We have set up a Facebook page to publicize our
UNCLE DENS and utilize other social media such as WeChat and Twitter.
We may create a UNCLE DENS website with our menu, map, driving direction and
providing the delivery services in the near future.

5.3.1 Brand Challenges

Branding is very important in differentiating a business from competitors. UNCLE
DENs must establish a distinct brand to stand out from the other Western-style fast
food competitors.
UNCLE DENs logo is distinct as creative, delicate and simple. Customers are
easy to remember it if compare with others. Our logo is an Uncle's image. He wears a
dome top hat and his hat has our brand name UNCLE DENS. He has a moustache
and the slogan Eat All Your Favorite is under his moustache. Our logo is blue and
black color.

5.3.2 Positioning Statement

18

Consumers believe that intake of adequate nutrition can let them energetic and have a
healthy body. We will position ourselves as the healthy restaurant by preparing
healthy ingredients. Consumers can intake of adequate nutrition such as Calcium,
Vitamin K, Vitamin C, Vitamin B1, Vitamin A and many others from our products. We
will price our products fairly and keep our standards high.

5.3.3 Pricing Strategy

Our pricing strategy is positioned as odd-pricing and bundle-pricing.
Odd pricing is a pricing method aimed at maximizing profit by making microadjustments in pricing structure. It relies on the assumption that consumers are
calculation-averse and will therefore only read the first digits of a price when making
their purchasing decision. According to this method, the relevant information of any
given price does not usually relate to the last digits, but rather to the first digits, or in
other words, to the order of magnitude of the numbers. For example, our product
Black Chick with Apple Dew are RM7.90, the price of RM7.90 looks more like
RM7.00 and not like RM8.00.
Bundle-pricing means that selling distinct multiple items offered together at a
special price. For example, our products Black Chick with Apple Dew are RM7.90,
but if buy Black Chick and Apple Dew individually are RM6.90 and RM2.00
respectively, the price are higher than combo set.

5.3.4 Marketing Program

We will deploy three different marketing tactics to increase customer awareness of
UNCLE DENS. These marketing tactics are used to remind customers about our
UNCLE DENS presence. These marketing tactics are cheaper and more effective.

Location
UNCLE DENS will be located in a strip centre at the busy intersection of
DKC and FASC office. This great location will help us to attract customers
easily and bring traffic into UNCLE DENS because it is a conspicuous place.

Internet
UNLCE

DENS

already

set

up

(https://www.facebook.com/events/568919963297816/)
19

Facebook

page

to publicize our

event. Our operation hours and map will be easily accessed. Other purpose of
set up this page is to remind customers about our UNCLE DENS presence
and strengthen our reputation or image in customer mind.

Miscellaneous media
UNCLE DENS put posters in bulletin board of canteen, hostel, upstairs and
downstairs of Block B. Our poster is appealing to the customer because it is
very creative and the messages are enough.

5.4 Sales Strategy

The sales strategy is to build and open new locations in order to increase revenue.
However, this plan will be implemented when the one "market tester" outlet showed
potential growth. As each individual location will continue to build its local customer
base over the first three years of operation, the original flagship store expected to earn
almost RM 400,000 per year.

5.4.1 Sales Forecast

We are expecting a conservative increase in sales revenue annually over the next 3
years. The growth is adjusted for inflation. With the addition of catering revenues,
sales will increase.
The following bar graph expected Sales Forecast for the monthly and year.

20

Sales Forecast
Unit Sales
Burger
Snow flake
Pumpkin
Drink
French Fries
TOTAL SALES

YEAR 1
26,605
17,215
17,215
62,600
10,000
133,635

YEAR 2
52,410
34,430
34,430
125,200
13,000
260,270

YEAR 3
104,820
68,860
68,860
250,400
16,000
510,540

YEAR 1
RM 6.90
RM 5.90
RM 2.50
RM 2.00
RM 3.00

YEAR 2
RM 6.90
RM 5.90
RM 2.50
RM 2.00
RM 3.00

YEAR 3
RM 6.90
RM 5.90
RM 2.50
RM 2.00
RM 3.00

YEAR 1
RM 183,731
RM 101,725
RM 43,194
RM 125,200
RM 30,000
RM 483,850

YEAR 2
RM 367,462
RM 203,450
RM 86,388
RM 250,400
RM 39,000
RM 946,700

YEAR 3
RM 734,924
RM 406,900
RM 172,776
RM 500,800
RM 48,000
RM 1853,400

Unit price
Burger
Snow flake
Pumpkin soup
Drink
French Fries
Sales
Burger
Snow flake
Pumpkin
Drink
French Fries
Total sales
Direct unit cost
21

Burger
Snow flake
Pumpkin
Drink
French Fries

YEAR 1
RM 5
RM 3.80
RM 0.87
RM 0.80
RM 1

YEAR 2
RM 5
RM 3.80
RM 0.87
RM 0.80
RM 1

YEAR 3
RM 5
RM 3.80
RM 0.87
RM 0.80
RM 1

YEAR 2
RM 266,050
RM 130,834
RM 30,048
RM 100,160
RM 13,000
RM 527,092

YEAR 3
RM 532,100
RM 261,668
RM 60,096
RM 200,320
RM 16,000
RM 1054,184

Direct cost of sales

YEAR 1
Burger
RM 133,025
Snow flake
RM 65,417
Pumpkin
RM 15,024
Drink
RM 50,080
French Fries
RM 10,000
Subtotal direct cost RM263,546
of sales

6.0 Management Summary

When started up the business, only have two person to operate the business at the
stall. So, they manage themselves with lack of management skills. Soon, the business
being attracted many customers and hired few of the employees. After few months,
this business attracted few investors to invest it.
Now, it is the partnership corporation with 19 people. It is using bureaucratic
structure to operate the business. Major of the decision making is came from top
management. Each of the shareholders are holding their own responsibility on
different position.
In future, we believe that the number of outlet will expand rapidly. The chain
store will open in every distinct of local country. So, we will have an area manager to
manage each of the distinct in local country.

6.1 Management Team

UNCLE DENS is currently founded by two founders. When started up the business,
it was a stall beside the road and dont have any employees. After the stall change into
shop, major of the decision making is came from both of the founders. As many of
outlets is expand, each of the shop will have a manager to manage it.

22

6.2 Organization structure

Currently, our organization structure is bureaucracy structure. We are partnership
organization that has 19 shareholders within it. Each of us is holding the specific
position respectively.

23

Organisation Structure
Director of Operation: Liaw Hsieh Wen

General Manager: Wong Wei Soon

Store Manager
Tay Jie Han

Finance Manager
Aaron Ong

Foods and Beverages Manager

Tan Yong Kang

Foods and Beverages Department

Tay Si Hui
Quak Hai Qi

24

Crew Manager
Lee Guan Hui

Crew Department
Lee Hong Hao
Gary Huan
Ker Zhao En
Chai Wai Meng
You Jia Ning
Fong Jia Ling
Ker Sin Kiat
Lim Fang Ling
Wee Jing Ying (Waitress)
Low Sim Err (Cashier)
Hoong Wei Yan (Waitress)

Foods and Beverages Department

i)
Process Layout of Burgers
Packaging
burgers

Coo
k

Prepare ingredient

Finished and Deliver

ii)

Process Layout of Desserts

Blended ice

Prepare
ingredient

Pouring syrup

Finished and
Deiliver
iii)

Process Layout of Drinks

Prepare
ingredient

Finished and
Deliver

Cook

6.3 Personnel Plan

Our chain store will hire 1 manager, 2 cashiers, 8 cook and 2 cleaners. Average of the
working hours for every employees in each week is 48 - 56 hours. The payroll of
employees in each month is RM 2,500 - 3,000 on average.
Manager
Cashier
Cook
Cleaner
Total Payroll

Year 1 (RM)
30,000
14,400
18,000
12,000
74,400

Year 2 (RM)
33,000
15,840
19,800
13,200
81,840

Year 3 (RM)
36,300
17,424
21,780
14,520
90,024

7.0 Financial Plan

The partnership corporation is now held by 19 people. In future the chain store will
open in every distinct of local country.

7.1 Start-up Funding

Currently, the company is owned by the original 19 founders, who each will
contribute RM 10,000. This will more than cover start-up requirements, and provide
the business with a cash cushion to use for expansion over the first three years.
START-UP FUNDING
25

Start-up Expenses to Fund

Start-up Assets to Fund
TOTAL FUNDING REQUIRED
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
TOTAL ASSETS
Liabilities and Capital
Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
TOTAL LIABILITIES
Capital
Planned Investment
Liaw Hsieh Wen
Wong Wei Soon
Aaron Ong An Kai
Chai Wai Meng
Fong Jia Ling
Gary Huan Hock Chein
Hong Wei Yan
Ker Sin Kiat
Ker Zhao En
Tay Si Hui
Lee Guan Hui
Lee Hong Hao
Lim Fang Ling
Low Sim Err
Quak Hai Qi
Tan Yong Kang
Tay Jie Han
Wee Jing Yin
You Jia Ning
Additional Investment Requirement
TOTAL PLANNED INVESTMENT
Loss at Start-up (Start-up Expenses)
TOTAL CAPITAL
TOTAL CAPITAL AND LIABILITIES
Total Funding

7.2 Break-even Analysis

26

RM 101,300
RM 76,000
RM 177,300
RM 5,500
RM 76,000
RM 790,000
RM 866,000
RM 871,500
RM10,000
RM15,000
RM30,000
RM10,000
RM55,000
RM 10,000
RM 10,000
RM 10,000
RM 10,000
RM 10,000
RM 10,000
RM 10,000
RM 10,000
RM 10,000
RM 10,000
RM 10,000
RM 10,000
RM 10,000
RM 10,000
RM 10,000
RM 10,000
RM 10,000
RM 10,000
RM 10,000
RM 0
RM 190,000
(RM 101,300)
RM 68,700
RM 123,700
RM 190,000

Our break-even analysis shows that we need unit sales over 9,700 per month to break
even.
BREAK-EVEN ANALYSIS
Monthly Units Break-even
Monthly Revenue Break-even
Assumptions:
Average Per-Unit Revenue
Average Per-Unit Variable Cost
Estimated Monthly Fixed Cost

RM 9,706
RM 32,104
RM 3.31
RM 0.73
RM 24,979

7.3 Projected Profit and Loss

As the Profit and Loss shows, will run at a loss for the first two years, using up some
of the cash reserves initially invested by the founders. As sales increase, we will
expand into new locations to aggressively spread brand recognition. This increase in
visibility will allow us to take up less expensive locations off of TARUC Johor
Branch while maintaining our flagship operation, the first store, in a prime spot.
PRO FORMA PROFIT AND LOSS
YEAR 1
Sales
RM 453,850
Direct Cost of Sales

RM 263,546

YEAR 2
RM 907,700

YEAR 3
RM

RM 527,092

1,815,400
RM

Other Costs of Sales

TOTAL COST OF SALES

RM 0
RM 263,546

RM 0
RM 527,092

1,054,184
RM 0
RM

Gross Margin
Gross Margin %
Expenses
Payroll
Marketing/Promotion
Depreciation
Rent
Utilities
New location setup
Total Operating Expenses
Profit Before Interest and Taxes
EBITDA
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales

RM 190,304
77.81%

RM 380,608
77.81%

1,054,184
RM 761,216
77.81%

RM 429,000
RM 10,000
RM 0
RM 174,000
RM 2,550
RM 25,000
RM 640,550
($82,543)
($82,543)
$0
$0
($82,543)
-29.57%

RM 450,450
RM 10,000
RM 0
RM 248,000
RM 5,000
RM 50,000
RM 763,450
($140,587)
($140,587)
$0
$0
($140,587)
-25.18%

RM 472,973
RM 10,000
RM 0
RM 298,000
RM 8,000
RM 50,000
RM 838,973
$53,226
$53,226
$0
$0
$53,226
4.77%

27

7.4 Projected Cash Flow

The following chart and table show the Projected Cash Flow.
PRO FORMA CASH FLOW
Cash Received
Cash from Operations
Cash Sales
SUBTOTAL

CASH

YEAR 1

YEAR 2

YEAR 3

RM 453,850

RM 907,700

RM

RM 907,700

1815,400
RM

FROM RM 453,850

OPERATIONS
Additional Cash Received
Sales
Tax,
VAT, HST/GST RM 0

RM 0

RM 0

Received
New Current Borrowing
RM 0
New Other Liabilities (interest- RM 0

RM 0
RM 0

RM 0
RM 0

free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
SUBTOTAL CASH RECEIVED

RM 0
RM 0
RM 0
RM 0
RM 453,850

RM 0
RM 0
RM 0
RM 0
RM 907,700

RM 0
RM 0
RM 0
RM 0
RM

Year 1

Year 2

1815,400
Year 3

RM 429,000
RM 244,265
RM 673,265

RM 450,450
RM 430,245
RM 880,695

RM 472,973
RM 599,286
RM

Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
SUBTOTAL
SPENT
ON

1815,400

OPERATIONS
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out RM 0
Principal Repayment of Current RM 0

RM 0
RM 0

RM 0
RM 0

Borrowing
Other
Liabilities

Principal RM 0

RM 0

RM 0

Repayment
Long-term Liabilities

Principal RM 0

RM 0

RM 0

RM 0
RM 0
RM 0
RM 880,695

RM 0
RM 0
RM 0
RM

Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
SUBTOTAL CASH SPENT

RM 0
RM 0
RM 0
RM 673,265
28

1,072,259

Net Cash Flow

(RM

(RM 27,005)

1,072,259
RM 743,141

Cash Balance

219,415)
RM 677,899

RM 543,981

RM 611,748

7.5 Projected Balance Sheet

We expect to run at a loss for the first two years, decreasing our net worth slightly. As
the operation becomes more profitable in the third year, our net worth rises again.
PRO FORMA BALANCE SHEET
YEAR 1

YEAR 2

YEAR 3

RM 677,899
RM 0
$677,899

RM 543,981
RM 0
$543,981

RM 611,748
RM 0
$611,748

RM 0
RM 0
RM 0
RM 677,899
Year 1

RM 0
RM 0
RM 0
RM 543,981
Year 2

RM 0
RM 0
RM 0
RM 611,748
Year 3

RM 29,242
RM 0
RM 0
RM 29,242

RM 35,911
RM 0
RM 0
RM 35,911

RM 50,452
RM 0
RM 0
RM 50,452

LIABILITIES
Long-term Liabilities
TOTAL LIABILITIES
Paid-in Capital
Retained Earnings

RM 0
RM 29,242
RM 800,000
(RM 68,800)

RM 0
RM 35,911
RM 800,000
(RM

RM 0
RM 50,452
RM 800,000
(RM

Earnings

(RM 82,543)

151,343)
(RM

291,930)
RM 53,226

RM 648,657
AND RM 677,899

140,587)
RM 508,070
RM 543,981

RM 561,296
RM 611,748

RM 648,657

RM 508,070

RM 561,296

Assets
Current Assets
Cash
Other Current Assets
TOTAL CURRENT ASSETS
Long-term Assets
Long-term Assets
Accumulated Depreciation
TOTAL LONG-TERM ASSETS
TOTAL ASSETS
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
SUBTOTAL
CURRENT

TOTAL CAPITAL
TOTAL LIABILITIES
CAPITAL
Net Worth

29

7.6 Business Ratios

The following table outlines some of the more important ratios from the Fast Food
Restaurants and Stands industry. The final column, Industry Profile, details specific
ratios based on the industry as it is classified by the Standard Industry Classification
(SIC) code 5812.
RATIO ANALYSIS
YEAR 1

YEAR 2

YEAR 3

INDUSTRY
PROFILE

Sales Growth

0.00%

100.00%

100.00%

8.67%

Other Current Assets

0.00%

0.00%

0.00%

37.31%

Total Current Assets

100.00%

100.00%

100.00%

45.97%

Long-term Assets

0.00%

0.00%

0.00%

54.03%

TOTAL ASSETS

100.00%

100.00%

100.00%

100.00%

Current Liabilities

4.31%

6.60%

8.25%

17.94%

Long-term Liabilities

0.00%

0.00%

0.00%

22.26%

Total Liabilities

4.31%

6.60%

8.25%

40.20%

NET WORTH

95.69%

93.40%

91.75%

59.80%

Sales

100.00%

100.00%

100.00%

100.00%

Gross Margin

77.81%

77.81%

77.81%

59.05%

102.99%

73.04%

39.24%

Percent of Total Assets

Percent of Sales

Selling,

General

&

Administrative 107.37%

Expenses
Advertising Expenses

0.00%

0.00%

0.00%

1.96%

Profit Before Interest and Taxes

-29.57%

-25.18%

4.77%

1.92%

Current

23.18

15.15

12.13

1.04

Quick

23.18

15.15

12.13

0.66

Total Debt to Total Assets

4.31%

6.60%

8.25%

50.22%

Pre-tax Return on Net Worth

-12.73%

-27.67%

9.48%

6.90%

Main Ratios

30

Pre-tax Return on Assets

-12.18%

-25.84%

8.70%

13.87%

Additional Ratios

Year 1

Year 2

Year 3

Net Profit Margin

-29.57%

-25.18%

4.77%

n.a

Return on Equity

-12.73%

-27.67%

9.48%

n.a

Accounts Payable Turnover

9.35

12.17

12.17

n.a

Payment Days

27

27

26

n.a

Total Asset Turnover

0.41

1.03

1.83

n.a

Debt to Net Worth

0.05

0.07

0.09

n.a

Current Liab. to Liab.

1.00

1.00

1.00

n.a

RM

RM

RM

n.a

648,657

508,070

561,296

0.00

0.00

0.00

n.a

Assets to Sales

2.43

0.97

0.55

n.a

Current Debt/Total Assets

4%

7%

8%

n.a

Acid Test

23.18

15.15

12.13

n.a

Sales/Net Worth

0.43

1.10

1.99

n.a

Dividend Payout

0.00

0.00

0.00

n.a

Activity Ratios

Debt Ratios

Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios

31

32

8.0 Appendices

Figure 1: UNCLE DENS logo

Figure 2: Front store layout

Figure 3: Snowflake

Figure 4:Apple Dew

Figure 5: Corridor of DKC

Figure 7: Green Chick

Figure 6: Black Chick

Figure 8: White Chick

33

Figure 9: Menu

Figure 10: Pumpkin Soup

Figure 11: Our Location

34