Fm Final Project 123

The Exordium

Nothing is deserving worship Almighty Allah, the most Merciful,

Compassionate and Gracious. All praises for him because He is the creator of

this mysterious universe and guides us with the Holy Prophet Mohammed

(Peace be upon him) and Holy Quran to explore it. We supplicate that Allah

grant us serenity to accept the things we cannot change, courage to change the

things we can, and wisdom to know the difference.

Page 1 FINANCIAL MANAGEMENT FINAL PROJECT

AcknowledgementPerson is not perfect in all the contexts of life. He has a limited mind and minor thinking

approaches. It is the mercy of Almighty Allah that shows the man light in the darkness and

the person find his way in this light. Without mercy of Allah, person is nothing but a

helpless creature. We would like to acknowledge here following persons whose guidance

helped us to lead in the positive direction in search of light in the darkness.

First of all, we would like to express our sincere appreciation and gratitude to our course

instructor Mr. Farukh. His valuable suggestions comments and in sightedness for the

project really guided and helped us to structure our project. We learnt a lot from him and

we can never forget his kindness for us. We are also very indebted to our best friends, my

father and mother for their continuous support. We owe a lot of their unconditional love

and understanding. Well, their suggestions allowed us to think in many different ways.

Most importantly, they continually helped us improve our confidence. They really very

special entities of our life…. What a journey! We will never stop admiring them.


Executive Summary

We were assigned a Final Project of our subject Financial Management in which we have to give

one business idea but so for this purpose we select Fast Food and Takeaway restaurant for the

completion of our final project. Firstly in this business idea we give a detail of opening a fast

food and takeaway restaurant by the name of Oven Fast food Restaurant. We discussed that what

is fast food restaurant and also introduction of our business idea of oven fast food restaurant, we

also discuss our different services and also a tools that we chose for the promotion of our

restaurant. We also give the major segment variables of consumer markets and also we see the

scope of that business in Pakistan and that is a huge scope in the Pakistan as well as all over the

world. Secondly we do budgeting and apply different technique to check out whether this project

should be carry on or not. And after analysis we found that our project is earning huge revenue

and we can get back our initial investment in within 2 year so then we decide that we will carry

on our project and we can get a huge revenue by it.


Table of ContentsIntroduction of Fast Food Restaurant...................................................................................................5

INTRODUCTION TO “OVEN FAST FOOD RESTURANT”.......................................................................5

Logo of Oven Restaurant and Slogan..................................................................................................5

Scope of Fast Food Restaurant............................................................................................................6

Vision of Oven Fast Food Restaurant..................................................................................................6

Mission of Oven Fast Food Restaurant................................................................................................6

Competitors of Oven Fast food Restaurant..........................................................................................6

Location of Oven Restaurant...............................................................................................................7

Services Given by OVEN Fast Food Restaurant..................................................................................7

Unique Services...................................................................................................................................7

Deals Offering by Oven Fast Food Restaurant....................................................................................8

Oven Fast food restaurant offering a big Menu of famous fast foods and the menu is divided in to 9 parts as follow:....................................................................................................................................8

Menu Offered by Oven Restaurant......................................................................................................9

Target Audience of Oven Restaurant.................................................................................................10

Customer Driven Marketing Strategy................................................................................................10

Market Segmentation.........................................................................................................................10

Segmentation Consumer Market........................................................................................................10

Promotional Tools of Oven Restaurant .............................................................................................12

Promotion of Oven Restaurant...........................................................................................................13

Menu with Price list...........................................................................................................................15

Budgeting..........................................................................................................................................16


Introduction of Fast Food RestaurantA fast food restaurant, sometimes known as a quick service restaurant or QSR, is a precise type

of restaurant categorized both by its fast food cuisine and by minimal table service. Food served

in fast food restaurants classically supplies to a "meat-sweet diet" and is offered from a limited

menu, is cooked in bulk in advance and kept hot; is finished and packaged to order; and is

frequently available ready to take away, though seating may be provided.

INTRODUCTION TO “OVEN FAST FOOD RESTURANT”We are opening a Take Away and Dine In restaurant in which we will provide different service

related to the fast food like Burger, Pizza, Shawarma etc. We are opening this Take Away and

Dine in restaurant by name of “OVEN” which easily connect our business name with our

products and services and the reason of selecting this name is that customers will easily

remember and this name represent that we provide hot and fresh food every time. In this

restaurant we will provide the most famous fast food items to our valued customer. This is a

Take away restaurant and Dine in restaurant where people can come and buy want they want to

eat and take that thing with them at home and can eat it. We will hire different workers for

providing different services to beloved consumers.

Logo of Oven Restaurant and Slogan

Slogan of Oven Fast Food Restaurant: Yours Healthy option...


Scope of Fast Food RestaurantThere is huge scope of that business in current time period in any country. In current time period

there is number of people who want to eat fast food so that’s why by seeing the behavior of our

customer and by seeing the scope of take away restaurants, we open a take away restaurant by

the name Oven Fast Food and Takeaway Restaurant.

Vision of Oven Fast Food Restaurant Create the best and healthy fast food in the Pakistan and to be recognized for providing taste

food, entertainment and fast, efficient friendly service.

Mission of Oven Fast Food Restaurant A passion to serve a Hot and healthier food

Competitors of Oven Fast food Restaurant Oven Fast food restaurant are started by the local region of Pakistan that’s why the very initially

competitors of oven restaurant are the local fast food chains of the Pakistan. It is started from the

Lahore city so all the local fast food chain of Lahore are the competitor of oven fast food

restaurant.


Fri Chicks

Smart Chicks

AFC

NFC

Location of Oven Restaurant We are opening our first branch at Abu Hassan Isfahani Road near Akbar Chowk and D-block of

Faisal town Lahore.

Services Given by OVEN Fast Food Restaurant We will provide 24/7 services to customers.

We will provide home delivery service in any place of Lahore city.

People can call us and get home delivery service.

Mid- Night Deals also available after 12pm.

Unique Services Oven Restaurant give Tablets for order placing to valued customer.

Oven Restaurant gives MENU displayed in LCD also.

Free Wi-Fi for the valued customer.


Deals Offering by Oven Fast Food Restaurant

Oven Fast food restaurant offering a big Menu of famous fast foods and the menu is divided in to 9 parts as follow:


Oven Deals

Appetizer

Burger

Sandwich

Steaks

SaladsCola Drinks

Hot Beverage

Ice Creams

Shakes

Menu Offered by Oven Restaurant


AppetizerCHICKEN TEMPURAFried chicken strips in herbs serve with salsa sauce

HOT WINGSThree pieces bones fried wings served with traditional hot sauce

CHICKEN NUGGETSfive pieces served with salsa sauce & fries

MEXICAN WINGSThree pieces fried wings glace in Mexican sauce and served with tartar sauce

FRIED JUMBO PRAWNMarinated prawn and deep fried served with herb sauce

Fries basketFrench fries with salsa sauce

BurgersChicken burgerGrill chicken petti and fries

Jalapeno burgerGrilled chicken petti topped with jalapeno and cheddar chees

Cow boy burgerBeef charcoal grilled Patti and terke baken and hidden sauce

MASHROOM BURGERCRISPY FRIED BURGEROVEN SPECIAL BURGER

SANDWHICHCHICKEN PRATHA ROLLA traditional roll pratha with grilled chicken and chees

SHAWARMAChicken Shawarma with chees

CLUB SANDWICHThree layers of sandwich make of traditional chicken paste and egg and fresh vegetable

OPEN MOUTH SANDWICHItalian bread with grilled chicken and wedges drizzled of cheese lover

STEAKBLACK PEPPER STEAKMEXICAN STEAKAmericano steakMushroom steak

SALADSChicken pineapple saladSweet corn saladRussian salad

COLA DRINKSCokeSpriteFantaDiet coke/spriteRed bullNestlé water (small /large)

HOT BEVERAGESBlack teaCappuccinoBlack coffeeLatte

ICE CREAMPeachStrawberryVanilla crunchMango delightTutti fruity

SHAKESVanillaOld fashion ChocoRed shakeMango fiestaCaramel latte

Target Audience of Oven Restaurant

Oven Restaurant aims to offer a friendly, fun environment for everyone to enjoy.

Customer Driven Marketing Strategy

Market Segmentation Buyers in any market differ in their wants, resources, locations, buying attitude and buying

practices. Through market segmentation, we divide large heterogeneous markets in to smaller

segments that can reach more effectively and efficiently with products and services that match

their unique needs.

Segmentation Consumer Market There is no single way to segment a market. A marketer has to try different segmentation

variables, alone and in combination to find best way to market structure. There are four major

variables of segmentation Demographics, psychographic and behavioral variable.

1) Geographic Segmentation

Dividing a market into different geographical units such as region, country Region, City and

density or climate

2) Demographics Segmentation

Dividing the market into groups based on variables such as age, gender, family size, family life

cycle, income occupation, education, religion, race generation, and nationality.

3) Psychographic Segmentation

Divides buyers into different groups based on social class, lifestyle, or personality

characteristics. People in the same demographics groups have very different psychographic

makeups.

4) Behavioral Segmentation


Divides buyers into groups based on their knowledge, attitudes uses, or responses to a product

Many markets believes that behavior variable are the best starting point for building market

segment.

Major Segmentation Variable for customer markets

Major segmentation variables for consumer markets

Segments Consumer market

Geographic

Region Asia

Country Region Pakistan

City Lahore

Density Urban and Sub Urban

Demographic

Age Above 10

Family size Small family consist of 3to 6 members

Gender Female, Male

Income Above 30,000

Occupation Any

Education Not compulsory

Religion All

Nationality All

Race No limitations

Social class middle class, upper middle, upper upper class

Psychographic

Social class Middle class, upper middle, lower upper, uppers uppers class

Lifestyle Outdoor-oriented.

Personality Gregarious

Behavioral

Occasions Regular, occasion, special occasion, holidays

Benefits Get tasty and healthy food swiftly


Loyalty status Loyal strong

Attitude toward product Enthusiastic, positive

Promotional Tools of Oven Restaurant


Promotional Tools

Word of mouth

Pamphlets

Broachers

Offical Websites

Social Media

Cable Network

News Papers

Promotion of Oven Restaurant The oven restaurant is opening new in the market and strong advertisement is very necessary to

grab the customers towards the oven fast food restaurant, oven restaurant decided to use

following promotional tools for the advertisement.

1) Word of Mouth

Words of mouth are a first tool used by oven restaurant. It is a healthy and the cheap source of

communication which we will also use in our advertisement as a source of promotional tool. It

really helps us for the strong promotion and it help to connect us with our target audience to let

them know what oven restaurant is.

2) Pamphlets

Pamphlets are the second promotional tool which help oven restaurant in its advertisement to tell

the general public and target audience that what we oven restaurant is, 2000 Pamphlets will be

distributed among our targeted audience to let them know about oven restaurant.

3) Broachers

Broachers are the third promotional tool used by the oven restaurant in its advertisement to tell

the general public and target audience that what is oven restaurant we distributed 2000 broachers

to the near areas of restaurant to let them know about the oven restaurant. Broachers have our

menu and introduction about oven restaurant.

4) Official Website

Official website is the fourth promotional tool used by the oven restaurant in the advertisement,

it is also a strong communication tool through which oven restaurant promote in the general

public and target audience easily connected with the oven restaurant. Official website contain the

menu in detail introduction, vision and mission of the oven restaurant also contain the

information of new offer of oven restaurant.


5) Social Media

Social Media is a fifth promotional tool used by the oven restaurant. There are different blogs

websites which thousands of peoples are used so it is a strong way to communicate and convey

about the oven restaurant. We use Facebook, Twitter, YouTube and other social media websites

and blogs also as the promotional tools.

6) Cable Network

Cable Network is sixth promotional tool used by the oven restaurant. The area which we selected

is G-1 market near johar town it is a big town approaching other areas also oven restaurant

decided to use nearby Cable Network for advertisement of its restaurant which aware the people

of johar town and other areas about oven restaurant.

7) Newspaper

Newspaper is also a promotional tool used by the oven restaurant for advertisement of the

restaurant, The oven restaurant used the Dawn, Express and nawayewaqt newspaper for the

advertisement of the oven restaurant.


Staff Hierarchy of Oven Fast Food Restaurant

Budgeting

Expense

OWNERMR.AHMAD-NUMA

MANAGEING DIRECTORMR.ABDULLAH IQBAL

GERNAL MANAGERMR.MUHAMMAD-BIN-

ASLAM

RECEPTIONISTMIS -MAHAM

RECEPTIONISTMIS-ALINA

4CHEFS

2sweepers

FINANCE MANAGERMR.ABD-ULL-MANNAN

SOCIAL MEDIA MANAGERMR.AMIR-SOHIAL


Initial InvestmentWe will initially invest on our business that is 68, 10,000

We will do different expenses that is mentioned below

Particulars Expense

Advance payment for acquired a shop 20,00,000

Paid monthly Rent 250,000

Couches & tables 500,000

Security cameras 200,000

Tablets for making order by customer itself 250,000

LCD with sound system 150,000

Central Air conditioner plant 250,000

Professional fryers 150,000

Vertical fridges for cold drinks, ice-cream &

shakes

200,000

Cold storage plant 150,000

Coffee makers and Steamer 60,000

Shawarma maker 50,000

Baking ovens 200,000

Utensils 100,000

Professional Shakes maker 50,000

Other expense 103,500

Salary and maintenance expense 200,000

Promotional and advertisement expenses 25,00,000


Fixed cost + promotional and advertisement expenses = Initial-Investment

43, 10,000 + 25, 00,000 = 68, 10,000

Running cost = Salary and maintenance expense + other expense + Paid monthly Rent

5, 53,500 = 200,000 + 103,500 + 250,000


AppetizerCHICKEN TEMPURA 219Fried chicken strips in herbs serve with salsa sauce

HOT WINGS 219Three pieces bones fried wings served with traditional hot sauce

CHICKEN NUGGETS 200five pieces served with salsa sauce & fries

MEXICAN WINGS 250Three pieces fried wings glace in Mexican sauce and served with tarter sauce

FRIED JUMBO PRAWN 650Marinated prawn and deep fried served with herb sauce

Fries basket 150French fries with salsa sauce

BurgersChicken burger 200Grill chicken petti and fries

Jalapeno burger 250Grilled chicken petti topped with jalapeno and cheddar chees

Cow boy burger 350Beef charcoal grilled Patti and terke baken and hidden sauce

MASHROOM BURGER 350CRISPY FRIED BURGER 300OVEN SPECIAL BURGER 700

SANDWHICHCHICKEN PRATHA ROLL 150A traditional roll pratha with grilled chicken and chees

SHAWARMA 150Chicken Shawarma with chees

CLUB SANDWICH 250Three layers of sandwich make of traditional chicken paste and egg and fresh vegetable

OPEN MOUTH SANDWICH 220Italian bread with grilled chicken and wedges drizzled of cheese lover

STEAKBLACK PEPPER STEAK 400MEXICAN STEAK 350Americano steak 500Mushroom steak 500

SALADSChicken pineapple salad 200Sweet corn salad 100Russian salad 100

COLA DRINKSCoke 50Sprite 50Fanta 50Diet coke/sprite 65Red bull 250Nestlé water small 40/large 70

HOT BEVERAGESBlack tea 70Cappuccino 150Black coffee 200Latte 200

ICE CREAMPer scoop rs. 70

PeachStrawberryVanilla crunchMango delightTutti fruity 200

SHAKESVanilla 150Old fashion Choco 200Red shake 150Mango fiesta 150Caramel latte 250

Menu with Price List

Revenue Deals category Per day Per month Per year

Appetizer 5,500 165,000 19,80,000

Burgers 12,000 360,000 43,20,000

SANDWHICH 3,000 90,000 10,80,000

STEAK 2,000 60,000 720,000


SALADS 1,750 52,500 630,000

COLA DRINKS 1,500 45,000 540,000

HOT BEVERAGES 2,500 75,000 900,000

ICE CREAM 1,000 30,000 360,000

SHAKES 1,500 45,000 540,000

Capital budgeting

Timeline 37, 73,416 46, 00,344 55, 78,877 67, 34,510


Participle Year1 Year 2 Year 3 Year 4

Revenue 1,10,70,000 1,27,30,000 1,46,40,075 1,68,36,086

- Expense 66,42,000 73,06,200 80,36,820 88,40,502

EBDIT 44,28,000 54,24,300 66,03,255 79,95,584

- Dep 5,77,500 5,77,500 5,77,500 5,77,500

EBIT 38,50,500 48,46,800 60,25,755 74,18,084

- Tax 6,54,584 8,23,956 10,24,378 12,61,074

NOPAT 31,95,916 40,22,844 50,01,377 61,57,010

Dep. 5,77,500 5,77,500 5,77,500 5,77,500

OCI 37,73,416 46,00,344 55,78,877 67,34,510

68, 10,000 (Initial-Investment)

Capital budgeting techniques

Payback period

Payback period of our project is 2 year but at that time we will receive extra 15, 63,760 Rupees.

From our initial investment so that’s why we accept the project.

Net present valueFormula of Net Present Value

NPV=Discounted cash inflows - Initial investment

Cash inflows

PV= FV

(1+i )n

PV=37,73,416

(1+.12 )1 + 46,00,344

(1+.12 )2 + 55,78,877

(1+.12 )3 + 67,34,510

(1+ .12 )4

PV= 33, 69,121 + 57, 70,671 + 78, 37,920 + 10, 59,688

Sum of all discounted cash inflows=. 1, 80, 37,400

NPV= Discounted cash inflows - Initial investment

= 1, 80, 37,400 - 68, 10,000

NPV= 1, 12, 27,400

Comment on Acceptability According to NPV

NPV of our project is greater than 0 and positive so we accept the project.


Year 1 Year 2 Year 3 Year 4

Profitability index

Profitability index=Discounted cashinflowsInitial investment

¿ 1, 80 , 37,40068 ,10,000

¿2.64

Comment on Acceptability According to Profitability Index

The profitability index of our project is greater than 1and positive so we accept the project.


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Fm Final Project 123

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