SHANXI UNIVERSITY OF FINANCE AND

ECONOMICS

ASSIGNMENT: MANAGERIAL ECONOMICS

TOPIC: BUSINESS PLAN

SUBMITTED TO: JIANG YUYAN

SUBMITTED BY: MARYAM ALI KAZMI (穆蕊)

Table of Contents
1 EXECUTIVE SUMMARY: .................................................................................................................. 3
2 BUSINESS DESCRIPTION: ................................................................................................................ 3
2.1 Introduction: ........................................................................................................................... 3
2.2 Location and Menu: ................................................................................................................ 3
2.3 OUR LOGO AND MENU: .......................................................................................................... 4
2.4 Equipments required: ............................................................................................................. 4
2.5 Mission: .................................................................................................................................. 5
2.6 Vision ...................................................................................................................................... 5
2.7 Our Team And Their Responsibilities: ...................................................................................... 5
Organizational chart: ..................................................................................................................... 6
3 MARKET ANALYSIS: ........................................................................................................................ 6
3.1 Marketing Plan:....................................................................................................................... 7
3.2 Target market: ........................................................................................................................ 7
4 COMPETITORS: .............................................................................................................................. 8
5 OUR CUSTOMERS: ......................................................................................................................... 8
6 COMPETITIVE ADVANTAGE: ........................................................................................................... 8
7 SALES STRATEGIES (4P’S): .............................................................................................................. 9
7.1 Pricing:.................................................................................................................................... 9
7.2 Place: ...................................................................................................................................... 9
7.3 Product: ................................................................................................................................ 10
7.4 Promotion:............................................................................................................................ 10
8 PRODUCTION COST: .................................................................................................................... 10
8.1 Sale price and cost of goods .................................................................................................. 10
8.2 Estimate of startup cost ......................................................................................................... 11
8.3 Investment by partners (owners) ........................................................................................... 12
9 OPERATIONAL DIFFICULTIES AND THEIR MEASURES: ................................................................... 12
9.1 Operational plan .................................................................................................................... 12
9.2 Difficulties and measures: ..................................................................................................... 12

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1 EXECUTIVE SUMMARY:
KCC (Kashmir Chitrali Cafe) is a locally owned food outlet that will be positioned as best
quality food restaurant and alternative of Quetta Café through our creative approach to the
company's image and detail presentation. KCC (Kashmir Chitrali Cafe) will provide a
combination of excellent food at value pricing, with fun packaging and atmosphere. KCC is
the answer to an increasing demand for traditional food, to be consumed for breakfast, lunch
and dinner. In today's highly competitive environment, it is becoming increasingly difficult to
differentiate one food outlet from another. This plan is prepared to obtain a location for the
initial launch of this concept. Additional financing will need to be secured for the two
subsequent outlets, anticipated in month 13 and early in year three. The financing, in addition
to the capital contributions from shareholders, will allow KCC to successfully open and expand
through year two. The initial capital investment will allow KCC to provide its customers with
a value-driven, entertaining experience through the creativity of its founders. KCC will entice
youngsters to bring their friends and family with our innovative environment, lassi wala saag,
and selection of unique signature dishes that can be enjoyed at any time.

2 BUSINESS DESCRIPTION:
2.1 Introduction:

KCC (Kashmir Chitrali Cafe) is a small size direct selling business. It will be known for selling
different varieties of food at one station. Our menu includes our traditional and desi food which
attract customers of different ages and class. As the business requires a handsome amount of
money so we 3 cousins decided to start this business on partnership. KCC will be owned by
Me (Maryam) and my 2 cousins (Bilal and Mujtaba) as a partnership. For this purpose we also
designed a partnership deed in which all the terms and conditions about partnership will be
written and signed by each partner.

2.2 Location and Menu:

We decided to have six stations 3 in Islamabad and 3 in Rawalpindi in order to cover all the
target market by providing best and quality food. The first station we will have at:

 Commercial Market Rawalpindi

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2.3 OUR LOGO AND MENU:

2.4 Equipments required:

1. Cooking range with oven

2. Fridge
3. Electrical over
4. Tandoor
5. Lassi maker
6. Mix tea machine

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2.5 Mission:

 Our mission statement is to build a highly successful and profitable food retailing
business that will grow from one store to different locations all around Pakistan.
 Our mission is to provide a unique and relaxing dining experience similar to dining at
home.
 We will strive to achieve their goals by providing menu items incorporating quality
ingredients at reasonable prices.
 We will be mined full of the wellbeing of our customers and staff treating each and
every one with dignity and respect just like we would at our home.

2.6 Vision

 Being known as a business that prepares stunning food and has incredible customer
support
 Provide hygienic and best food to customers
 To produce a net benefit of Min. Rs.7, 000, 00 constantly year of activity.
 To increase most noteworthy pieces of the pie in the food business
 To give great food in a reasonable costs
 To gain consumer loyalty and positive criticism

2.7 Our Team And Their Responsibilities:

 The management team of our business will mainly consist of Maryam, Bilal and
Mujtaba who will be taking decisions about all major department.
 Maryam will be responsible for all financial activities.
 Maryam will be responsible for management and coordination of all marketing
advertising and promotional activities.
 Bilal will be responsible for supervising all the food stations and also maintaining good
relations with the staff.
 Mujtaba will be responsible Human Resource Management by recruiting, selecting,
orienting, training and coaching employees.
 Mujtaba will be responsible for order and receiving of raw materials and distributing
them.

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I also wanted to show our organizational chart. As follow:

Organizational chart:

Owner

Marketing Manager Finance Manager

Manager

Waiters Cook Sweepers

3 MARKET ANALYSIS:
The first use of the word to refer to a public venue where one can order food is believed to be
in the 18th century. 1974 – Raul Martinez converted an old ice cream truck into the nation’s
first taco truck and parked it outside of an East Los Angeles bar. Food restaurants have been
around for many years, beginning in Asia and becoming popular in Hawaii. In recent years, the
taste of traditional food has spread all over the world. And customer wants new products and
different environment in one place. And we can provide different products and friendly
environment in the suitable prices. There are a lot of well-known restaurants in Islamabad and
Rawalpindi for example The Monal, Savour Foods, Khokha Khola, Kabul restaurant, Hardee’s.
According to the National Restaurant Association, Pakistan sales of food restaurant 12 totaled
$199.6 billion in 2010.now everyone focus on the food business because it is a very profitable
business and the demand of the restaurant’s increase day by day. That’s why every food
restaurants make different or unique products in the different environment.

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After a deep market analysis we came to know that Pakistan’s food sector is changing
significantly with an inclined shift in lifestyle and traditional eating habits. The food and its
allied products industry is considered Pakistan’s 2nd largest industry accounts for 27% of its
value-addition production, while 16% of the total employment by the manufacturing sector.

The corporate food companies is in a state of growth, with the increase in average revenue
being in excess of 20 per cent last year. This growth is based on market penetration of largely
urban areas and some export markets. In Islamabad and Rawalpindi 57% restaurants which are
based on the traditional food because of its demand.30% restaurants which serve fast food. And
13% restaurants which provide Chinese food .And 7% restaurants which provide different
countries food. From this analysis we decided to open this café.

3.1 Marketing Plan:

A market analysis studies the attractiveness and the dynamics of a special market within a
special industry. Market analysis is a process designed to link managers to consumers through
information. The core objective of our marketing program is to generate high sales volume for
the company and achieve the vision of market leadership in every segment in which it operates.
The heart of every successful business lies in marketing. So, the business will be successful or
not, it all depends upon the marketing. The things that a very good marketing should cover are
advertising, promotions, public relations and sales. Marketing is a process in which a service
or products is introduced and then promoted to any potential customers. If you don’t have
proper marketing, you can offer the best products in your niche, but no one would even hear of
it. So, without marketing, many companies would close because their sales would crash. Our
products quality will reflect our loyalty towards our clients. We planned to promote or market
our cafe through local and social media advertisements, pamphlets, personal relations and
discount on grand opening (for attracting customers).

3.2 Target market:

Our major target market will be approximately 20000 students of Kashmir, Chitral and Gilgit
Baltistan who are living in Rawalpindi mainly in commercial and its surrounding areas. The
students and youth have a craze of traditional food. Working class and students also likes to
drink different Tea. However, this will be targeted towards the middle and the upper class of
the city. Our target market largely includes walk in clients who will purchase our products. We

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will be creating different rates or deals depending upon social classes e.g. middle and upper
class etc. and products will be sold according to these segments.

4 COMPETITORS:
Our competition is with all those Kashmiri and Chitral food restaurants which provides
traditional food items in Islamabad and Rawalpindi especially food trucks. There are a lot of
competitors which provide different type and variety of food but over theme of our restaurant
is unique. So we are doing something unique from other restaurants. Some competitor includes:

Mian Jee Refreshment Restaurant, Savour food, Refreshment centre Rawalpindi, and food
streets in commercial area of Rawalpindi.

5 OUR CUSTOMERS:
The population of Islamabad and Rawalpindi is approximately 5,300,000 people. It is one of
the rapidly growing market in Islamabad. Our major customers will be students and visitors
residing in twin cities. As in twin cities people have different tastes some like junk food and
some like traditional food and the restaurant will be providing both in one place. However, this
will be targeted towards the middle twin cities. Food Industry in Pakistan is the 2nd largest
in Pakistan. Accounts for 27% of its value added production and 16% of the total employment
in manufacturing sector with an estimated 180 million consumers, Pakistan holds the world's
eighth largest market when it comes to fast food and food related business. There are very less
food restaurants in the targeted area which are serving the specific Chitral food. To meet the
highest standard of excellence with superb services is offering best quality food in a friendly
atmosphere.

6 COMPETITIVE ADVANTAGE:
Basically, a company has a competitive advantage when it has any distinguishing
feature over its competitors, which gives it the ability to achieve a higher yield over time. We
have advantage of offering different varieties of food at one place and providing a unique
environment and taste with new dishes which is attractive for the consumers as well. Which
has never been done before. We have also another advantage that our restaurant will maintain
the standards of hygiene and health. We will fulfil the demand of healthy food items. We also
have another advantage of creating more room for diversity and competition. Our main
competitive advantages will be:

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  Special skilled chefs from chitral
 Location
 Innovative idea
 Desi food at a advanced and new style furnished café
 Low prices as compared to other competitors

7 SALES STRATEGIES (4P’S):

KCC (Kashmir Chitrali Café) overall marketing strategy will be to create an image of offering
the highest quality of tradition food products in Commercial Market. The business will be
located in a high public traffic area of Rawalpindi mainly in commercial market. Customers
will be reached through advertisements such as fliers, Facebook ads, and through its opening
ceremonies. In opening ceremony clowns are entertain customers and we will also sell products
on discounted prices.

7.1 Pricing:

Items Per Unit Price

Lobia served with rice 280/ per plate
Kari Pakora served with rice 200
Desi Sag Roti served with lassi 350
Chicken biryani 240
Plain pratha with egg 250
Rogni Nan 30
Salad mix 80
Kheer mix 180
Saweya 120
Drinks
 Tin 70
 Lassi 80
 Mineral water 60

Tea
 Simple 40
 Special 60

7.2 Place:

We will be opening our stations at most highlighted spots of Rawalpindi such as Commercial
where our target market will be approachable.

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 Map of Rawalpindi

7.3 Product:

KCC (Kashmir Chitrali Cafe) offers high quality products in the best taste. KCC (Kashmir
Chitrali Cafe) will be selling tasty Traditional and hygienic food.

7.4 Promotion:

We will promote our products to public by advertising campaigns to be shown on social media
and as pop-up ads on the Internet. Promoting products at discount on Grand Opening. We will
also promote through Facebook Aids.

8 PRODUCTION COST:

8.1 Sale price and cost of goods

Items Per unit Per Units Units Total Total cost Total sale
cost unit sale sale units per annum per annum
price per per per
day month annum

Lobia served with rice 120 per 280 40 1,200 14,400 1,728,000 4,032,000
plate per
plate

Kari Pakora served with 100 200 20 600 7,200 720,000 1,440,000
rice

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 Desi Saag Roti served 200 350 30 900 10,800 2,160,000 3,780,000
with lassi

Chicken biryani 120 240 30 900 10,800 1,296,000 2,592,000

Pratha with egg 130 250 15 450 5,400 702,000 1,350,000

Rogni Nan 15 30 150 4,500 54,000 810,000 1,620,000

Salad mix 40 80 100 3,000 36,000 1,440,000 2,880,000

Kheer mix 70 180 50 1,500 18,000 1,260,000 3,240,000

Saweya 50 120 50 1,500 18,000 900,000 2,160,000

Drinks
 Tin 50 70 100 3,000 36,000 1,800,000 2,520,000
 Lassi 30 80 50 1,500 18,000
 Mineral water 35 60 150 4,500 54,000 540,000 1,440,000

1,890,000 3,240,000

Tea
 Simple 20 40 200 6,000 72,000 1,440,000 2,880,000
 Special 30 60 100 3,000 36,000 1,080,000 2,160,000

Total 1,085 32,550 390,600 17,766,000 35,334,000

8.2 Estimate of startup cost

Start-up expenses Amount in PKR

Legal (Registration fee and other legal 30,000
expenses)
Marketing 80,000
Renovation 200,000
Rent 100,000
Utility expenses ( electricity and gas) 20,000
Salaries 80,000
Supplies10,000 10,000
Per day supplies
(Vegetables, Milk etc.)
Total start-up expenses 520,000

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 Equipment
 2 Cooking range with oven 200,000
50,000*2= 100,000
 Fridge 50,000
 Electrical Oven 15,000
 2 Lassi maker 5000*2=10,000
 Tandoor 10,000
 Mix chai machine 30,000

Furniture 200,000
Start-up inventory 20,000 20,000
Per day inventory
Rent in advance 100,000
Total start-up assets 520,000
Total 1,040,000

8.3 Investment by partners (owners)

Maryam 500,000

Bilal 500,000

Mujtaba 500,000

Total 1,500,000

9 DIFFICULTIES AND THEIR MEASURES:

9.1 Operational plan

We are offering different varieties of Kashmiri and Chitrali Traditional food at one point in the
train themed restaurant. The dishes will be made by the professional chefs from chitral and
Kashmir. All dishes will be made under the regulation of Islamabad food authority. Our food
item is based on meat, Milk and other items which we get from authorized dealer of halal foods
supplies will be chicken, and the rice which we are going to use are super kernel basmati which
is the best available in the market. Quality of the food can be checked by customers on their
will. Food is ordered through waiters which will be wearing ticket checker costumes.

9.2 Difficulties and measures:

Following are some possible difficulties which we may have to face during operations:
 Licensing

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  Customer acquisition
 Supply of inventory
 Recruitment of skilled employees
 Achieve breakeven

Licensing:

Everybody knows that you need a whole lot of licenses in order to get your business
operationalize, like the FSSAI, liquor license, health/trade license, eating house license, shop
and establishment act, GST registration, approval from the fire department, music and lift
license, environmental clearance and signage license. Getting all these licenses and getting
your restaurant establishment the legal permission is a difficult task. And it will be a big hurdle
in our operational activities.

 Measures:

To overcome this difficulty we decided to make a list of all the licenses we need to open our
café along with the procedures to obtain them. We planned to get all the documents in place
and then apply for the licenses well in advance from the date of our café inauguration so that
we don’t have to rush or delay our grand opening.

Customer acquisition:

Attracting customers and creating a loyal customer base is exceptionally difficult for a cafe
startup. A café which is new to the market and is trying hard to sustain the competition and
make its presence felt needs to do something exceptional to come in the notice in the industry.
So it will be a hurdle for us to acquire customers in such a tough competitive market. Because
without customers we will not be able to run our business

 Measures

Here, comes the importance of a comprehensive marketing plan. We decided to start our
marketing even before the launch of our cafe. Create social media pages, and inform the people
about our arrival. Spread the word about why we will be worth the visit, post pictures and
videos about our café startup getting geared up for the grand opening. Other than online
publicity, indulge in offline modes as well. In addition to this we also decided to distribute

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flyers and pamphlets, give free samples on the pavement in front of our store, to attract
customers

Supply of inventory:

So we have our menu figured out, and our café now provides a world-class customer service.
Cheers to that! But we should remember that all of this will be useless if we don’t have enough
supplies in stock. The solution? Get everything we need from your supplier ahead of time.
Though again, this is another aspect of running a cafe that can be harder than we expect:

 You have a bunch of suppliers to contact;

 Their order placement processes are too complicated;
 You’re busy

 Measures

We decided to Invest in an order management system. Technology is on the rise so why not
take advantage of it? Order management platforms simplify the ordering process and give us
the power to place our orders through a smartphone or tablet app within minutes. There are
even ordering platforms that let us update our orders easily or set your standing orders to be
automated. Now whether we are busy or not, we can finally get everything we need from
different suppliers in a single place, at a time that suits us.

Recruitment of skilled employees:

The restaurant industry is notorious for its high attrition rate. Tapping the right employee is a
difficult task while training them as per your restaurant guideline is a more significant
challenge. As our café will need a staff of highly expert chefs in the required field to cook food
required by customers. It will also a difficulty to choose the cooks that will be able to cooks
the same taste desi food according to customer demand.

 Measures:

In order to prevent from this difficulty we decided to create a human resource structure from
scratch. While looking for the right employees, we will visit the various job portals, give

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advertisements in local newspapers and ask for recommendations from all our well-
wishers. Once we have the working force on board, we planned comprehensive training
sessions. We also decided Cross-train staff, this will help our restaurant employees to fill in
places in times of crisis, this will also enable us to run our restaurant with limited staff who are
all-rounders.

Achieve breakeven:

Almost every business startup dreams of reaching their breakeven rather soon. Breakeven is
the point from which you start making the profit from the restaurant. Until we reach the break
even point we are unable to make profit so it will be a big difficult in the way of our operations
and expansion of business.

 Measures

To reduce this difficulty two things we decided to be done to achieve the breakeven quickly:
increase sales, and reduce costs. To increase our sales, we need to employ marketing tactics to
acquire more customers, which we have discussed earlier. If we do the right marketing, then
you will be able to attract more customers and garner more sales. Now, reducing costs is the
second aspect of reaching breakeven sooner. While we cannot do much about certain fixed
costs, we can certainly take measures to ensure that are not losing out on money due to wastage
and thefts.

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