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PROJECT FEASIBILITY

REPORT FAST FOOD RESTAURANT

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BUSINESS PLAN

We are planning to set up a fast food restaurant in New Delhi

which will provide variety of food at cheap rates. There is a huge

market potential. The place will provide a unique taste with a goodenvironment. The location of the restaurant is very much

accessible to the customers. Total estimated rent of land:- Rs. 9,60,000 peryear( Rs.100/- per sq feet)Initial project cost- Rs. 20,00,000.Promoters:- Rs.10,00,000(50% by each promoters).Bank loan:- Rs. 10,00,000.(EMI-15%)

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SAKLEYS FAST FOOD

RESTAURANT OBJECTIVE

1. To provide good quality of food and services to the customer.2. To maximize profit.3. To provide value for money to the customers.4. To build relationship with the customer.

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ORGANIZATIONAL

HIERARCHY Kitchen staff :- 4 member

1- head chef 1- cook

2- assistant Sales team - 1 sales manager Administrative department: - 4 member

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TECHNICAL FEASIBILITY

The technical equipment used in the

restaurant are the kitchen equipment

which are user friendly and good quality.

Good quality products are selected as it

will give long term benefit and safe forthe workers who are using .

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MARKET FEASIBILITY

OBJECTIVE

1. To achieve success in market.2. To become a market leader in the industry.3. To build loyalty program with the customer.4. To use direct marketing as a strategy.

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MARKET SEGMENTATION

AGE:- The target customer is of all the age groups.

INCOME:- The focus is on the medium income group

MARKETING STRATEGYAND MARKETING MIX

PRODUCT:- Variety of fast food under one roof with standard services andrich environmentPRICE:- The strategy being used in the value pricing strategy. Offering rightCombination of quality and good services at fair prices.PLACE:- Main focus is to pull the crowd using various campaigns. The locationsWhich have been selected is where the less competitions.PROMOTIONS:- Integrated marketing communications will be used to develop aConsistent, clear compelling message to the customer.

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PROMOTIONAL STRATEGIES

1. To ensure awareness and knowledge among the target customer throughVarious publicity.2. Advertisement through local media network which include newspaper, banners.3. Use direct marketing concept to reach the customers.

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FINANCIAL FEASIBILITY

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YEAR-1 YEAR-2 YEAR-3 YEAR-4 YEAR-5INCOME

Sales 8,344,500 9,573,500 11,223,000 12,797,500 14,560,600

Total Sales 8,344,500 9,573,500 11,223,000 12,797,500 14,560,600

EXPENDITURE

Material Cost 2,942,280 3,512,371 3,764,400 4,147,164 4,544,635

Manufacturing Cost

90,000 95,000 100,000 105,000 105,000

Advertisement 2,50,335 110,335 110,335 90,000 80,000

Salary 1,320,000 1,452,000 1,597,200 1,756,920 1,932,612

Administrative Cost 1,116,689 1,119,147 1,122,446 1,125,595 1,139,121

Interest on loan

150,000 150,000 150,000 150,000 -Total Exp 5,869,304 6,438,853 6,844,381 7,374,679 7,801,368Net Profit / ( Loss ) beforeDep

2,273,506 2,731,507 3,893,004 4,842,946 6,091,202

% of Total Sales 30% 33% 39% 42% 46%

Depreciation

256,000 211,650 176,423 148,233 125,500Net Profit / ( Loss ) after

PROFIT AND LOSS ACCOUNT

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YEAR-1 YEAR-2 YEAR-3 YEAR-4 YEAR-5

Shareholders` Fund 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000

Loans 1,000,000 500,000 500,000 - -

Tax payable 754,305

993,527

1,428,327

1,792,832

2,254,805

Reserve & Surplus 1,464,891 3,394,362 6,168,232 9,649,987

14,028,913

Balance as per Profit & Loss Account after tax

TOTAL 4,2149,196 5,887,888 9,096,558 12,442,819 17,283,719

Fixed Assets

( a ) Gross Block 1,810,000 1,810,000 1,810,000 1,810,000 1,810,000

( b ) Less: Depreciation 256,000 467,650 644,073 792,306 917,806

( c ) Net Block 1,554,000 1,342,350 1,165,928 1,017,694 892,194

Current Assets, Loans andAdvances

( a ) Inventories 241,831 288,688 309,403 340,863 373,532

( b ) Sundry Debtors 45,723 52,458 61,496 70,123 79,784

( c ) Cash and Bank balances

2,810,050 4,683,614 8,072,284 11,570,277 16,529,417

( d ) Loans and Advances 50,000 50,000 50,000 50,000 50,000

BALANCE SHEET

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NUMBER OF YEARS

0

2

4

6

8

10

12

PROFIT AFTER TAX

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0

2

4

6

8

10

12Sales

NUMBER OF

YEARS

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RETURN ON INVESTMENT FIRST YEAR:- 83.26% SECOND YEAR:- 64.30%

THIRD YEAR:- 52.97% FOURTH YEAR:- 46.16% FIFTH YEAR:- 40.47%

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CONCLUSION The fast food restaurant has lot of

opportunity in the market.

The main focus is on the medium incomegroup.

The strategy which have been taken up isthe value for money which means goodquality of food but not at high price.

Technically, sufficient equipments are

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THANK YOU