Business plan of Easy meal Service

8/13/2019 Business plan of Easy meal Service

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Easy Meal Service

Session (2012-16)

MBA 3.5 3rdReg

Submi tted To:

Sir Salman Hussain Piracha

Submi tted By:

Department of Business Administration University of Sargodha

Name Roll No

M.Naoman Razzaq 36

Niaz Ahmad 44

Asma Sumaiya 37

Khadija tul Kubra 35

Fatima Nawaz 52

Saba Rafiq 101


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ACKNOWLEDGEMENT

We have no words to express our deepest gratitude to ALLAH

who blessed and enabled us to complete this project report.

Its great privilege to mention the feelings of obligations towards

our affectionate parents and department, who prayed,

encouraged and inspired us for higher education and are

supporting financially and morally throughout our studies.

We find it very difficult to select the appropriate words to

express our gratitude to our teacher Mr. SALMAN PARACHA

and his useful encouragement and dynamic supervision.


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Serial # Table of contents Page #

1 Executive summary 1

2 General Business Description 2

3 Product and Services 4

4 Customer Services 5

5 Operational plan 6

6 Inventory control 7

7 Business Location 8

8 Process Flow Chart 9

9 Marketing plan 11

10 Promotional Strategy 12

11 Marketing Strategy 1312 Market Segmentation 14

13 Factors may affect the whole plan 15

14 Societal marketing concept: 16

15 Pricing 17

16 Sale forecast 17

17 Human Resource plan 18

18 Management and organization 19

19 Job analysis 20

20 Job description 21

21 Job specifications 22

22 Code of conduct 23

23 Start up Expenses 24

24 Utility requirement 25

25 Financial Statement 26

26 Projected Income statement for five year 2727 Project Balance Sheet On first day of business 28

28 Easy Meal Service Project Balance Sheet 29

29 Break even analysis 30

30 Appendix 31


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Executive summary

The daily routine of peoples is too much busy specially employees due to high burden of their

work they have not enough time to spend on their meal and they have no healthy and fresh food

to eat in their working hours or place where they work. So to tackle with this problem of

employees we start up our business with food providing service characterized by food which is

supplied quickly after ordering.

So we selected kalyar town near to university of Sargodha as production place to capture the

market potentiality and untapped opportunity on this way as our business is provide meal anddelivery service. Moreover, we will be the only meal delivery service providing industry on that

location.

Our target market is not restricted to any age or gender, but our main focus is Sargodha area and

our niche market are hospitals, banks , educational organization and all type of employees in

Sargodha.

Our long term objective is to expand our business and by end of 10 year the business will be

established in Lahore Islamabad and Karachi catering general public along with employees.

We desire to start business with Rs 700000 .positive trend are seen in the year in income year on

year basis. It will be a sole proprietorship business.


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General Business Description

Company Name:

The name our business will be Easy meal service we have

chosen this name because of our service is easiest for our targeted customer and provide an ease

and require taste of products.

Tagline:

You need we deliver

Vision:

"By working with passion and focus on safety and sustainability to create competitive

advantages for our customers and in doing so always live up to our company values"

Mission Statement:

We deliver highest standard quality freshness, seasonality and combine modern, creative and

eastern style of cooking

Objectives:

To promote profitable and sustainable business activity that meet the customerneeds

To cater the employees of any institution in Sargodha To gain competitive edge To provide excellent customer service Our obligation is to insure the quality of our meal service To get the customer loyalty and support


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Product and Services

Product

Baryani Rs 150 Chicken Rs 550 Daal Murgh Rs 70

Kheer Rs 50 Seasonal vegetable Rs 45 Roti Rs 6

Salad Rs 20 Raita Rs 20 Drink Rs 50, 80,105


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Customer Services

We will provide customer service by providing delivery food service to professionals atworking site.

We will provide launch and dinner facility according to the need of people. Food will be quite healthier and hygienic. We will offer membership card facility to our regular customers. At special occasions or parties, we will also provide meal service facility. Depending on customer requirement, we will provide delivery within average 20-25minutes to fulfill their order Initially stage of business we receive the spot payment of the delivery when our business will be strong stage then we will give weekly or monthly base

package


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Operational plan:

Production Technique:

Menu of easy meal service

Sir no Menu Sale

Price

1- baryani 150

2- Daal recipe 703- Rote, 6

4- Seasonal vegetable 45

5- chicken khari 550

6 kheer 50

7- Rita 20

8 salad 20

9 Drink 1 lit 50

10 Drink 1.5 80

11 Drink 2.15 105

Baryani ingredients:

Baryani ingredients contain rice, oil, food color, lemon, chicken, onion, garlic, ginger, black

pepper, red chili, salt, tomato, zeera(cumin), Illachi, mint leaves, tamarinds

Chicken recipe:

Chicken recipe ingredients include chicken, tomato, onion, ginger, ginger, garlic, red chili, salt,

green chili, cumin,


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Vegetable recipe:

Any seasonal vegetable is used in vegetable recipe.

Kheer:

Kheer recipe include milk, rice, khoya, sugar, illachi, nets

Customer service:

We will provide customer service by providing delivery food service to professionals at working

site. We will provide launch and dinner facility according to the need of people. Food will be

quite healthier and hygienic. We will offer membership card facility to our regular customers. At

special occasions or parties, we will also provide meal service facility. Depending on customer

requirement, we will provide delivery within average 20-25 minutes to fulfill their order initially

stage of business we receive the spot payment of the delivery when our business will be strong

stage then we will give weekly or monthly base package when order receive on large scale then

we will give buy three get one free .

Inventory control:

We use manual or limited integration method to control the inventory system of EASY MEAL

SERVICE. This type of inventory management refers to the process of physically counting eachitem every week to get our easy meal service expenses. This method is suitable for smaller

independently owned operators because we purchase fewer items and maintain simple

accounting records. When all counting is completed then data can be transferred to our easy

meal service accounting department. The inventory is complete if there are no mistakes. But the

entire inventory process must start again in case there are errors. The task related to inventory

control is performed by kitchen supervisor. We maintain the non perishable inventory item like

flour, rice, sugar etc. under the system of manual or limited integration because these types of

inventory no need to order on daily basis. On the other hand to maintain the inventory of

perishable inventory item like vegetables, milk etc. we will use daily inventory tracking. Theaverage lead time to maintain both inventories (perishable and non perishable) of food items is

one day


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Quality control:

We will use the following points to control quality of EASY MEAL SERVICE

By gathering regular feedback e.g. through survey questionnaires or focus groups Employees interest can be seriously taken into account Measurement and evaluation of employee satisfaction at periodic intervals of time Must follow certain standard operational procedures so that customer always receive

exceptional quality and service

Provide meal delivery on time and cook food in hygienic environmentProduct development:

As we are initiating our project but with passage of time through survey conduction and by

getting different ideas and feedback from different professionals, promoting new recipes, hiringexperienced cooks and using other possible sources, we will make improvement and

enhancement in verity of our easy meal service

Location:

We have managed the building for easy meal service on rent basis. We will pay Rs. 20 000

monthly rent including Rs. 20000 security fee charges. This double story building is

accompanied with four rooms, Giraaj and lawn. We will use first flour for production purpose

and ground area is used for parking and storage of food items. The office of easy meal service is

on the ground floor. It is also facilitated with utilities access like water, electricity, telephone,

gas.

Area:

The total area contained by easy meal service is 1360square feet

Address:

Kalyar town, Street No. 1, university road Sargodha. Salon shop medical

clini c, general store, vegetable shop, is also located near i t.

See business location photo in appendix


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Process Flow Chart

Send

12 to 15 mint

Give

40 to 45 second

7 to 10 mints

Call received

Put order on slip Payment Receive

Sale invoiceKitchen

Prepared Customer

Packing Deliverer


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Legal Environment:

Business will be registered through the chamber of commerce. No special license or permit is

required for this business; National tax number will be acquired from FBR.

Inventory:

Material required for cooking arrangement will be kept in store. Perishable item will be purchase

on daily basis. All the raw material would be purchase locally.Non perishable item will be

purchased on monthly All the dry raw bases like (sugar oil rice).

Suppliers:

Coca-Cola, Sargodha for soft drinks and mineral water.Pepsi, Sargodha for soft drinks and mineral water.

Packing, fasil Baraders pholo wali gali block no1 sargodhaChicken, Ashraf chicken shop University road Sargodha

Managing Accounts Receivable:

We sell our product on daily basis as well as monthly basis. If one customer deals with our

company on regular basis we give a package to that customer. We take an advance of Rs. 4000and remaining settlement at the end of month.

Managing Accounts Payable (Aging):

We Purchase dry raw material 50% on credit basis and other 50% for cash. Entire perishableitem will be purchase from local market on daily basis.

Total current 15days

Dry Raw material 100% 50% 50%


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Marketing plan

A marketing plan will create goals and encourage a business to expand, including delivery

business. As mentioned above; objectives will be achieved passing through 3 phases. Marketingstrategy will be implemented from the very first stage. For marketing planning, data will be

gathered through primary market research. In it, some questionnaire will be given to learn about

consumer preferences, tastes and trends.

Primary search:

Everyone speaks about the importance of being market leader. But today market conditions

change much faster due to technology, fashions and media influences, as well as customers'

tastes. The 21stcenturysmarketer, who wants to succeed, will do so only by making the right

choice of target market. After focusing on everything the Easy Meal Service will provide unique

values and benefits to meet the needs of chosen market.

We conducted a survey of the target market. Then make a analysis 80 % people in favor of this

type of business. And 15 % people say that they avail this business for small parties. And 05 %

people are not favor of this type of business.

Economics

Feature and benefits Pick and drop facility of meal from customer home to working place. Quality food Free call in future Free home delivery Time savings

Customer profile

Age

Age limit of our customer 17 to onward.


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Gender

Both male and female can make order.

Location

our initial target market is SargodhaIncome level

Our target customersincome Rs. 17000 to onward.Social class and occupation

We target middle and upper class and people of every occupation.

Business Location

Our office located at street # 1 kalyar town university road Sargodha.Promotional Strategy:The marketing strategy for our business can be carried out by doing the following things:

By running social media campaigns and advertisements. Placing ads in the local newspapers. Through Billboards, Banners and pamphlets in prestart up phase. Local Radio, cable networks and Billboards are excellent promotion tools through which

we will promote our business till the business life.

At the start of our operations we promote through these Medias. These expenses are given

below.

Media ExpensesPrint media 30000

Social media 10000

Electroni c media 20000


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When our business comes to on track then we utilize Rs. 5000 on promotion for each in every

month. We promote our business through free through using our university radio and also

through words of mouth. For advertisement we adopt VIPS formula. Means our business

advertisements are easily visible and identify. Meet his promise and consternate on the single-

mindedness.

Marketing Strategy:

We adopt customer driven strategy for our business. Today in current market customer having

most important .what the customer want and with what type of business feel satisfaction.

Market Segmentation:

In the start we target the whole Sargodha market. Then gradually we expand our businessoperations.

Our next step is to go on national level. At the end we launch our business at internationallevel.

We divided our market into different segments and then targeted according to theirrequirements,

Banks, educational departments, hospitals, shopping malls and other business areas.


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Sargodha

Hospitals Educational departments Banks Shopping Malls

Business Areas

Domestic

level

National level

International level


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Targeting:

The next step is targeting the market segments .We target our all segments with proper planning.

We give preference to our all customers.

Positioning

We make a clear and distinctive image of our business through advertisement. We give some

unique values to customer.

Differentiation:

We should be trying to make our business different and unique for our customer. We make

different type of innovations and adding unique features through proper advertisement.

Following factors may affect the whole plan

Major barriers

Major barriersthat we may face are in the start

High capital costs

In the start of our business we need high capital for different process, like land, building,

furniture and motorcycle.

Unique technology and patents

The cost of different equipments used in our production process is very high. Like equipments of

kitchen.

Change in technology

We are already define about high technology if any type of change in technology relate to our

industry will affect our business.


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Societal marketing concept:

Instead of that if we want to advertise, we should advertise it for the purpose of making people

aware.

Society (human welfare)

Company Profit Consumer (wants and satisfaction)

Through this concept could not only work for the welfare of the society but can also make long

term relationship with our customers and also for society long run interests.

There are many methods of sales promotion but we include one of them to promote ourbusiness.

Free giftsa free product when buy another product on some special occasions.

Societal

Marketing

concept


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Human Resource plan:

Hiring phase plan:

Initially we will hire two skilled cook, five delivery boys, one cashier, one dishwasher, one

cleaner and one guard, one bread maker, one rickshaw driver and two helper (one helper is hire

for help in cooking and the other one helper is hire for bread maker help) which is enough for us

according to our need. We intend to hire additional workers in near future, when our sales will

increases.

HR costing:

We start our business on small scale, as our business is simple and we target only professional

people so the HR costing includes salaries only. There is no training cost because we hire cook

which is expert in cooking. Moreover, we hire cashier which is responsible for receiving

payment and handing over change and also take away orders as far as delivery men and other

workers are concerned they do not need to be trained; they will get training with the passage of

time. To retain the employees we will offer competitive salaries which will increase by 10% on

yearly basis. Moreover employees should not be required to work more than the number of hours

allowed for regular and overtime work periods.

HR plan to meet special events:

There is no need to hire more staff for special occasions or parties. The already working staff

will meet the special orders of customers, but in future when our sale increases then we will

make strategy for hiring more workers.


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Hierarchy of management plan:

OWNER

Cashier/o

rder takerRickshaw

driver

GuardDelivery

boy

COOK

DishwasherBread

makerHelper Cleaner

Helper


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Job analysis

Office management budget:

Designation/

Type

Number Monthly

Salary

(Rs.)

Total

Salary

(Rs.)

Annually

Owner 1 - -

Take away order

taker/ cashier

1 10000 10000 120000

Guard(12 hour) 1 6000 6000 72000

Delivery boy 5 8000 40000 480000

Rickshaw Driver 1 8000 8000 96000

Total 9 64000 768000

Kitchen department budget:

Designation/Type Number Monthly

salary(Rs.)

Total

salary(Rs.)

Annually

Cook 2 12000 24000 288000

Dish washer 1 6000 6000 72000

Helper 1 7000 7000 84000

Cleaner 1 6000 6000 72000

Bread maker 1 10000 10000 120000

Helper 1 8000 8000 96000Total 7 61000 732000


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Salary system for Delivery boy:

Every delivery boy has its own bike and we provide portable delivery box only. We give Rs 150

daily for petrol to each delivery boy and Rs 1000 monthly for bike maintenance and we give Rs

10 per order within the city if the order is far from our location we give 20 per order. In rainy day

we give Rs 15 per order within city.

Job description:

As far as job description is concerned the cook responsibility is to cook respective dishes with

full taste and responsibility to sever the target employees. Owners would be managing overall

affairs of EASY MEAL SERVICE He will be required to process and check bills invoices,

receivable management, maintain accounts for record purpose. The owner will also ensure safecustody of store keys. Rickshaw driver performs the duties of transportation and the delivery boy

delivers the meal at working sites, or according to an order. Guard works for safety purpose,

cashier is responsible for receiving payments and maintaining cash records, helper is for cook

help, while the other helper is for bread maker help, cleaner is responsible to clean the

environment.

Duty hours:

We will hire two cooks for cooking purpose one of these will perform its duty from

9am-4pm and other will perform its duty from 4pm-11pm.we will hire 5 delivery boys out of

these three will deliver food items in first shift from 9am-4pm and remaining two will perform

their duty in second shift from 4pm-11pm.we will hire one guard which will perform his duty

during night timings .cashier, dishwasher, helpers, rickshaw driver and bread maker will

perform full time duties from 9am-11pm.

See delivery box photo in appendix


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Job specifications:

Employees Minimum qualification/salary

Cook Cooking certificateExperience 5 years

Salary- Rs.12000

Helper Having 2 year ExperienceSalary- Rs.7000

Bread maker Expert in bread making

Experience 2 year

Salary- Rs.10000

Helper Having 1 year experience

Salary-Rs.8000Delivery boy Driving skill, own bike

Salary- Rs.8000

Rickshaw driver Driving skill, own rickshaw

Salary-Rs.8000

cashier GraduateGood communication skill

Salary- Rs.10000

Dishwasher Metric

Salary- Rs.6000cleaner MetricSalary-Rs.6000

Guard Matric Salary Rs 6000


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Code of conduct

The code of conduct describes the standard of conduct for Easy meal service

Ethics:

We should maintain the highest standard of honesty, integrity and trustworthiness to attract and

retain our customers.

Duty of care:

Our duty of care is to provide delivery on time to get customer loyalty. We will provide delivery

to our customers when they place an order and according to their need.

Quality assurance:

We will maintain the quality of food by improving the efficiency of working staff through

conduction of feedback, and by maintaining the healthy environmental conditions.

Health:

We will provide healthy and hygienic food to our customers at reasonable prices.

Incentive way:We will pay incentive pay to our workers to motivate them. We will offer incentive pay to cook

and delivery boy depending on orders of special occasions or parties.

Long term perspective:

Our long term perspective is to maximize profit, and expand our business by offering and

facilitating our packages to customers according to their needs

Performance appraisal:We will set a standard on the basis of working ability and working efficiency to measure the

performance of every individual so that the efficiency of every individual increases like cook,

delivery boy, guard.etc


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Start up Expenses

Descriptions AmountAdvertising 60000

Machinery & Equipments 107700

Furniture & Fixture 197457

Advance Rent 20000

Rickshaw loader 90000

Building maintenance cost 50000

Generator 40000

Machinery and Equipments:

Machinery Quantity Cost/unit Total price

Burner 1 20000 20000

Oven 1 9000 9000

Bulk cooker 1 1600 1600

Refrigerator 1 32000 32000

Exhaust fans 3 1700 5100

Blinder machine 1 1600 1600

Kettle set 1 11500 11500

Fry pan 4 550 2200

mobile Tandoor 1 15000 15000

Bracket fan 2 2200 4400

Water cooler 1 500 500

Wet masala grander 1 3000 3000

Weight machine 1 1800 1800

Total 107700


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Furniture and fixtures:

Furniture Quantity Cost/unit Totalcost

Kitchen cutlery

set

2 750 1500

Furniture 50000

Lights 7 125 875

Ac 1 35000 35000

Fan 3 2200 6600

Computer 1 11000 22000

Printer 1 7699 7699

Delivery Box 3 12636 37908Total 197457

Utility requirement:

Utility Charges (monthly) Charges (annually)

Electricity 12000 144000Water 2000 24000

Gas 15000 180000

Telephone 5000 60000

Office Electricity 3000 36000

Total utility 522000


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Financial Statement

Easy Meal Service

Projected Income Statement

For the year 31 March 2013

Descriptions Amount Rs

Sale 8118720

Less Cost of goods sold 5970912

Gross profit 2147808

Less Selling & admin expenses

Salaries 768000

Telephone 60000

Electricity 36000

Stationary expense 12000

Rent 36000

Petrol 378000

Advertizing expense 66000

Other expenses 36000

Depreciation expense for Eq& Machinery 10770Depreciation expense for furniture & fixture 19745

Depreciation expense for vehicle 9000

Depreciation expense for generator 4000

Building maintenance expense 5000

Net Profit 707293

See appendix for expected sale and CGS 1and 2


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Projected Income statement for the year

2014,2015,2016,2017

Year 2014 2015 2016 2017

Descriptions Amount Amount Amount Amount

Sale 8930592 9823651 10806016 11886617

Less Cost of goods sold 6567557 7224312 7946744 8741418

Gross profit 2363035 2599339 2859271 3145199

Less Selling & admin expenses

Salaries 806400 846720 889056 933508

Telephone 63000 66150 69457 72930

electricity 37800 39690 41674 43758

Stationary expense 12600 13230 13892 14586

rent 39600 43560 47916 52707

Petrol 419737 461712 507882 558670

Advertizing expense 66000 66000 66000 66000

Other expenses 37800 39690 41674 43758

Depreciation expense for Eq&

Machinery

10770 10770 10770 10770

Depreciation expense for furniture &fixture

19745 19745 19745 19745

Depreciation expense for vehicle 9000 9000 9000 9000

Depreciation expense for generator 4000 4000 4000 4000

Building maintenance expense 5000 5000 5000 5000

Net Profit 831583 974072 1133205 1310767

Note:We assume that the sale of this business will increase 10% in future every year. Cost of

goods sold estimated 73.45% on sale of every year. Rent will increase 10% every year and petrol

4.7% on sale every year sale. Advertizing expenses will remain constant in every year and for

depreciation we use straight forward method.


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Easy Meal ServiceProject Balance Sheet

On first day of business

ASSETS RUPEES LIABILITIES &

Equity

RUPEES

Current Assets Current Liabilities

Cash at Bank 134843 Account Payable -

Advance rent 20000

Account Receivable Owner equity 700000

Fixed Assets

Eq & Machinery 107700

Fixture & Furniture 197457

Generator 40000

vehicle 90000

Advertizing 60000

Building maintenance 50000

Total 700000 Total 7, 00,000


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Break even analysis

Total variable cost annually = 5129412

Total Fixed cost annually = 1566000

Sale price per unit = 22552

Variable cost per unit = 15885.8

Break even sale= Fixed cost/unit pricevariable cost per unit

= 1566000/22552-15885

=1566000/6669

= 235 units annually

We must sell at least 235 units annually in order to break even, including fixed cost annually.

Monthly we sell 20 units in order to break even. If our annually sale are Rs 5299720 andmonthly are Rs 451040 then we are in breakeven point.

See break even calculation in appendix at number 3


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Appendix

1)1We estimate the sale on average basisSale Daily Monthly Annually

Qty Price Total Daily* 30 Monthly*12

Baryani 55 150 8250 247500 2970000

Chicken

khari

12 550 6600 198000 2376000

Daal Murg 20 70 1400 42000 504000

Vegetable 20 45 900 27000 324000

Kheer 20 50 1000 30000 360000

Chapati 312 6 1872 56160 673920

Rita 15 20 300 9000 108000

Salad 15 20 300 9000 108000

Drink 1lit 10 50 500 15000 180000

Drink 1.5 10 80 800 24000 288000

Drink2.15 6 105 630 18900 226800

Total sale 8118720

Note

We estimate sale on daily average basis. The quantity and price is mention on

above table.


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2)Cost of above estimated average sale

Note

Above cost price per unit include only material cost and packing cost.

3)Break Even Analysis:For calculating break even analysis we required one unit price but we have no of product

therefore we make basket of goods to convert all product to one unit. We calculate variable per

unit cost by divided annually variable cost into 360 days.

Cost Daily Monthly Annually

Qty Price Total Daily* 30 Monthly*12Baryani 55 54 2970 89100 1069200

Chicken

khari

12 380 4560 136800 1641600

Daal Murg 20 39 780 23400 280800

Vegetable 20 25 500 15000 180000

Kheer 20 36 720 21600 259200

chapati 312 2.6 811.2 24336 292032

Rita& salad 55 10 550 16500 198000

Rita 15 13 195 5850 70200

Salad 15 13 195 5850 70200

Drink 1lit 10 45 450 13500 162000

Drink 1.5 10 73 730 21900 262800

Drink 2.15 6 93 558 16740 200880

Gas 15000 180000

electricity 12000 144000

Water 2000 24000

Rent 17000 204000

Salaries 64000 732000

500576 5970912


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Our one unit include the following product that sale on daily basis.

Calculate per unit price

Daily sale of product Unit price

Baryani 55*150 8250Daal muragh 20*70 1400

Rote, 312*6 1872

Seasonal vegetable 20*45 900

chicken khari 12*550 6600

Kheer 20*50 1000

Rita 15*20 300

Salad 15*20 300

Drink 1 lit 10*50 500

Drink 1.5 10*80 800

Drink 2.15 6*105 630

Per unit price 22552

Fixed Cost

Descriptions Amount annually

Rent 17000 204000

Water 2000 24000

Salary for kitchen department 61000 732000

Gas 10000 120000

Electricity 8000 96000Salary for admin 24000 288000


Stationary 1000 12000

Advertizing 5000 60000

Total 1566000


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Variable Cost

Descriptions Amount Annually

Gas 5000 60000

Electricity 4000 48000

Petrol 31500 378000Product 4686912


Delivery boy salary 40000 480000

Other expenses 3000 36000

Total 5718912

Projected Balance sheet Assumption

For deprecation of all assets we use straight forward method We assume that our drawing would be Rs 240000 every year


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Packing

We use this type of packing for our product


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Delivery Box

We use this type of box for the purpose of meal delivery following are the description of this box

Name:Heat Insulated Box/Boxes with Dividers

Color: Red,

Material Oxford + Pearl Cotton + Aluminized Paper + PE Hyaline Membrane

Keep Hot/Cool4-5 hours

Inner dimension (Length*Width*Height) 45*45*40cm

Outer dimension (Length*Width*Height) 48*48*42cm

Weight8.1KG

Capacity82 Liters


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Location map and Photo:

Street view Front view

Giraj view Launch view


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Delivery Boy Uniform


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Business plan of Easy meal Service

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