Fast food restuarent abhijeet karmakar
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Transcript of Fast food restuarent abhijeet karmakar
Feasibility Report On Fast Food Restaurant
Presen ted BY: -ABHI JEET
KARMAKARMT14 IND001
Indus t r i a l Eng inee r ing
VN IT NAGPUR
1.IntroductionFast food is food which is prepared and served quickly at outlets called fast-food restaurants. It is a multi-billion dollar industry which continues to grow rapidly in many countries. A fast-food restaurant is a restaurant characterized both by food which is supplied quickly after ordering, and by minimal service.
Purpose
This project is developed to provide the entrepreneur with potential investment opportunity in setting up and operating a medium sized fast food restaurant offering a variety of food items to the general public
The project is designed to provide relevant details (including technical) to facilitate the entrepreneur in making the decision by providing various technological as well as business alternatives.
Fast Food Industries
The presence of multinational fast food chains like McDonalds, KFC, Pizza Express, Pizza Hut, Subway etc. have somewhat catered to the high income segment therefore developing a niche as upscale fast food restaurants.However much of the middle-income segment (which forms a major chunk of fast-food goers) prefers visiting local outlets that offer low cost fast food, hence more frequent visits.
2.Raw material study• Chicken, Fish, egg• Vegetable-potato, Tomato, Onion, Ginger, carrot and many
more• Cheese, Bread• Wheat, Rice• Milk• Butter• Oil• Other ingredientsApproximately total cost of 150000 /- month Expected. (Including its preparation)
3.Market StudyIndia, currently ranked as 2nd in terms of total population, is
characterized by a population growth rate of 1.59% (Indian Economic Survey 2013)
Total population of India in recent survey is 1.252 Billion people .
With this, the per capita income has increased to GNI US$ 5300 while the productive age group (15 to 64) years is said to take the major chunk of population (67% of total population) by 2020.
The growth rate in food consumption is also augmented by the rapid increase in the employment rate for males / female population aging between 20 to 29 years (fast food goers) hence the greater income contribution to the overall income generated is expected to be higher.
Population Growth-As per National Commission of Population (NCI) and Census India
2005 2006 2007 2008 2009 2010 2011 2012 20131050000000
1100000000
1150000000
1200000000
1250000000
1300000000
Series1
population Billions
GDP (As per Union Budget and Economic Survey)
20052006
20072008
20092010
20112012
20130
200000000000
400000000000
600000000000
800000000000
1000000000000
1200000000000
1400000000000
1600000000000
1800000000000
2000000000000
Series1US$
GNI growth rate (in US $)
2005 2006 2007 2008 2009 2010 2011 2012 20130
1000
2000
3000
4000
5000
6000
Series1
GNI PER CAPITA
Frequency Of Fast –FoodThis is the study done by GULF news this result shows that
72% of survey group eat at a fast food restaurant once a week
44%
14%8%
6%
28%
Fast-food consumption rate
OncetwiceMore than thriceEvery Daynever
4.Demand Study• There is no restaurant in this region around 4-5 KM.• Naya Raipur is going to be declared as a new capital of
Chhattisgarh.• More traffic intensity• Large number of industrial employee staying near by places
and they are likely to do their dinner at fast food places.• This region required new market for food and technology.
How To Start A Restaurant?• Work in a restaurant• Know your target market• Select a service style or food concept• Develop a business plan• Create “the menu”• Chose a location and layout• Getting the appropriate finding• Be familiar with safety regulation• Hiring employees• Advertise and market
5.Location Study• Anticipated sales volume• Accessibility to potential customers• The rent-paying capacity of your business• Restrictive ordinances• Traffic density• Visibility• Customer parking facilities• Proximity to other businesses• History of the site.• Future development
In this project Raipur is the good location…
22%
19%17%
24%
17%
Population
BilaspurDurgRaigarhRaipurRajnandgaon
According to Directorate of economics and statistics of
Chhattisgarh 2011 total population is 25545198
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000NSDP(Trade hotel &Restaurant)
Series1
NSDP
Project location is between RAIPUR-VIZIANAGRAM NH-30 at NAYA RAIPUR.
Second largest traffic intensity in Chhattisgarh.Climate- Temp ranges 40-42⁰C in summer day and in winter it falls
down to 10-12⁰C. Humidity-average56% Middle income area.Topography- The Chhattisgarh state can be divided into
3physiological zones viz. Bastar plateau , Chhattisgarh plain and Northern Hill region. The districts of Raipur (300 m above MSL)and Dhamtari (305m MSL) are situated in the central flat plain of Chhattisgarh.
Miscellaneous• This geographical place have large surface as well as land
water.• Nearest to airport• All the Historical place of Raipur is located just 0.5-1Km apart
from location in its surrounding.• Nearest to market.• Pollution free environment.
5830
12
% Contribution Area
Dining areaKitchen spaceOffice space
6.Deciding LayoutLayout and design are major factors in your restaurant's
success You'll need to take into account the size and layout of the dining room, kitchen space, storage .
Typically, restaurants allot 40 to 60 % of their space to the dining area,approximately30 % to the kitchen and prep area, and the remainder to storage and office space.
40-50% customer arrived in pair
30 % come alone or inparties of three.
20 % come in groups of four or more.
Following things should be considered before start the restaurant…
Designing & DécorCreating a menuRestaurant Size- 1500 Sq. FeetHiring the Right Employees• Manager / Owner-1• Chefs and cooks-4• Servers-6
7.Legal RequirementFood Safety and Standards Act, 2006 (FSSI) is the law which requires the owners of all types of restaurants to register and obtain a license with the government. The restaurant owner is required to apply to the controller for registration of the restaurant.The Expenditure Tax Act, 1987 governs the taxation process associated with the chargeable expenditure incurred by an individual in a certain hotel or restaurant.The Act applies to chargeable expenditure provided the following criteria are fulfilled- If the charges are incurred in a hotel where the room charges
for an accommodation is INR 3000 per day or in excess of this amount
The charges are incurred in a restaurant
CHHATTISGARH FOOD SECURITY ACT, 2012“An Act to provide for food and nutritional security by ensuring access to adequate quantity of food and other requirements of good nutrition for people of the State, at affordable prices, at all times to live a life with dignity and for matters connectedtherewith or incidental thereto”.A owner would not charge more than the standard price
including all taxes.No provision of child labor Waste and disposal policy of government
8.Milestone Of ProjectWork content
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Project plan
Licensing and registration
Construction of restaurant
Lightning and lamps
Furniture for restaurant
Decorations and cash register
Production and completion of menus
Advertising
Employee training
Project Investment
Cost
Land cost ₹ 1,125,000
Construction cost ₹ 2,500,000
Dining and Office furniture ₹ 200,000
Equipment and machine ₹ 200,000
Preliminary Expenses ₹ 10,000
Working Capital ₹ 562,000
Total ₹ 4,597,000
9.Financial Analysis
Land and Dedicated Space(1500 Sq. Feet)
%contribution Dedicated spaceCost per sq
feet Total cost
Dining 63 945 ₹ 750 ₹ 708,750
waiting 4 60 ₹ 750 ₹ 45,000
Kitchen 25 375 ₹ 750 ₹ 281,250
Office 1 15 ₹ 750 ₹ 11,250
Rest 7 105 ₹ 750 ₹ 78,750
Total ₹ 1,125,000
1. Land Cost
M/c and equipmentM/c and equipment Quantity Unit Price Total cost
Freeze2 ₹ 25,000 ₹ 50,000
Broast M/c 1 ₹ 100,000 ₹ 100,000 Micro Wave
2 ₹ 10,000 ₹ 20,000 Hot plate for kabab
1 ₹ 25,000 ₹ 25,000 Other
₹ 5,000 Total
₹ 200,000
2. Machinery & Equipment-
Dining and office furnitureDescription Quantity Unit Price Total cost
Dining Table(2×2) 15 ₹ 6,000 ₹ 90,000
Chairs 60 ₹ 500 ₹ 30,000
Office table 1 ₹ 10,000 ₹ 10,000
Lights ₹ 10,000
Generator 1 ₹ 50,000 ₹ 50,000
Other ₹ 10,000
Total ₹ 200,000
3. Dining & General Fixture
Human resource Requirement
Quantity Salary per
monthTotal
Owner 1 - -
Kitchen supervisor 2 ₹ 6,000 ₹ 12,000
Shift Supervisor 3 ₹ 8,000 ₹ 24,000
cook 4 ₹ 4,000 ₹ 16,000
Server 6 ₹ 3,000 ₹ 18,000
Cashier 1 ₹ 6,000 ₹ 6,000
Dish Washer 2 ₹ 2,500 ₹ 5,000
Guard 1 ₹ 6,000 ₹ 6,000
Total ₹ 87,000
Human resource Requirement
Utility (Monthly)
Electricity ₹ 20,000 Water ₹ 1,000
Gas ₹ 10,000
Telephone ₹ 5,000
Total ₹ 36,000
Utility Requirement
Working Capital
Monthly 4×Monthly
Utility ₹ 36,000 ₹ 144,000
salary ₹ 87,000 ₹ 348,000
Raw Material ₹ 70,000
Total ₹ 562,000
4. Working capital and Operating cost-
Other Cost-• Machinery Maintenance- All machines require routine cleaning and maintenance after every three months and an annual service which costs around 1% to 5% of the total cost.
• Depreciation on Building & Equipment-Depreciation on Shop, Equipment, Machinery and Fixtures is assumed to be at the rate of 10% per annum based on the diminishing balance method for the projected period.
Food Description Cost Price Units Sales Total Sales Total Cost
Hot soup ₹ 25.00 ₹ 75.00 6 ₹ 450.00 ₹ 150.00
Chicken soup ₹ 50.00 ₹ 140.00 6 ₹ 840.00 ₹ 300.00 Plain rice ₹ 12.00 ₹ 40.00 3 ₹ 120.00 ₹ 36.00
Chicken fried rice ₹ 30.00 ₹ 80.00 12 ₹ 960.00 ₹ 360.00
Chicken chilly ₹ 30.00 ₹ 85.00 6 ₹ 510.00 ₹ 180.00
Egg rice ₹ 20.00 ₹ 70.00 5 ₹ 350.00 ₹ 100.00 Veg rice ₹ 18.00 ₹ 60.00 5 ₹ 300.00 ₹ 90.00
Beef chilly ₹ 30.00 ₹ 75.00 6 ₹ 450.00 ₹ 180.00
Manchurian ₹ 25.00 ₹ 70.00 10 ₹ 700.00 ₹ 250.00 Chicken roast ₹ 35.00 ₹ 65.00 36 ₹ 2,340.00 ₹ 1,260.00
Burger ₹ 20.00 ₹ 50.00 24 ₹ 1,200.00 ₹ 480.00 Club sandwich ₹ 35.00 ₹ 80.00 30 ₹ 2,400.00 ₹ 1,050.00 Cheese burger ₹ 23.00 ₹ 45.00 18 ₹ 810.00 ₹ 414.00
Zinger burger ₹ 40.00 ₹ 80.00 24 ₹ 1,920.00 ₹ 960.00 Total daily sales ₹ 13,350.00 ₹ 5,810.00 Monthly sales ₹ 400,500 ₹ 174,300.00 Yearly sales ₹ 4,806,000 ₹ 2,091,600.00 Additional ₹ 5,000.00 Total cost ₹ 2,096,600.00 Gross profit (yearly) ₹ 2,709,400 Monthly ₹ 225,783 Daily ₹ 7,526
Assumption in this analysisSales Increase- 15% per yearIncrease in Cost of Raw Materials-10% per yearIncrease in Utilities-10% per yearIncrease in Office Expenses-10% per yearDebt / Equity Ratio-50:50Depreciation-10% per yearEquipment Annual Maintenance Cost-10% per yearTax Rate- As per the government policy
Loan ProviderMSME-(Micro small Medium enterprises)-Gov. of IndiaWhich provide loan for small enterprises above 2500000 Rs.
Various Banking options are- SBI HDFC
10.Machinery Suppliers• Kamla EnterprisesInfront of Bohara Masjid, Near Saddani Chowk, Nayapara, Sadar Bazar, Raipur (C.G.)
• Klowin Buisness India LimitedC-3, Sri Ram Nagar, Raipur Ho, Raipur-Chhattisgarh - 492001,
• Prem EnterprisesSaraogi House, M G Road Raipur, Raipur-Chhattisgarh - 492001, Near Ram Sagar Para, Jawahar Nagar, Ram Sagar Para
11.Impact Of This Project
Job creation- Provide jobs to the local community.
Tax revenue- Provide sale Tax to local economy.
Increase Farmer income
New market formation
Improved Health