NAMES ROLL NO.

HAFSA AHMED Bsf2004307

AREENA CHAUDHARY Bsf2004271
RIMAL JAVED Bsf2004329
MAHAM AFZAL Bsf2004342
BBA (2020-24)
SEMESTER I
SECTION B, GROUP 2
MS-18

SIR FARAN,
INTRODUCTION TO BUSINESS
 FEASIBITY REPORT
(Transmittal Letter Copy)
Submitted To:

Sir Faran
Lecturer of Introduction to Business of BBA Semester I at University of Education,
Lower Mall Campus, Lahore.

Submitted on this 2nd of March of the year 2021.

2nd March, 2021

Hafsa Ahmed Bsf2004307

Rimal Javed Bsf2004329
Maham Afzal Bsf2004342
Areena Chaudhary Bsf2004271
Owners

COFFEE N’ CHILL
620G1 Market, Block M Phase 2 Johar Town, Lahore, Punjab 54770
92-111-244-622
[email protected]

Respected Sir Faran,

Good Day!

We at COFFEE N’ CHILL are pleased to present to you our official feasibility

report. In this report, we explain in detail as to why the opening of COFFE N’ CHILL
at G1 Market, Johar Town, Lahore last year proved to be profitable to the owners. In
this report, we lay out factors such as the convenience of the location we have chosen,
our core target market, our strength over nearby competitors, as well as various
weakness and the opportunities we can take in order to be able to make up for such
weaknesses.

We hope that this feasibility report will be informative and useful with regards to your
final decision on COFFEE N’ CHILL annual evaluation. Should you require more
information or have any additional inquiries, please feel free to call us at 92-111-244-
622 from 7:30 AM to 7:30 PM or send us an email message at
[email protected].
FEASIBILITY REPORT
Sr. No. Table of Content
1. Preface
Executive Summary
 Introduction
 Partnership
 Location
2.  Services & Product
 Target Market
 Financial Consideration
 Objectives
 Key to Success
Management & Organizational Structure
 Management
3.
 Legal Structure
 Legal Formalities
4. Layout
Marketing Plan
 Product Menu
 Product Strategy
5.
 Pricing Strategy
 Promotion & Advertisement
 Marketing Strategy
Operational Plan
6.  Method of Service Delivery
 Quality Control
Financial Plan
 Capital Requirement
 Initial Operational Cost
7.
 Cafe Yearly Budget
 Income Statement
 Cash Flow Statement
8. SWOT ANALYSIS
9. Conclusion
10. Appendix
 PREFACE

This project is concerning a annual feasibility report of a cafe that was set
in 2020 by a group of four girls from Section B of Second Semester of
BBA in University of Education, Lower Mall Campus. The cafe,
COFFEE N’ CHILL, is located at G1 Market of Johar Town, Lahore. The
content of this feasibility report consist of a summary of the business over
a period of one year.

We are hoping that our report will be utility and helpful for
everybody who is interested as much as possible. If there are any
mistakes in this reporting, we will apologize at this opportunity.

COFFEE N’ CHILL
 EXECUTIVE SUMMARY

INTRODUCTION
COFFEE N’ CHILL is a start-up business in Lahore, Johar Town
Area. It is the goal of the business management to acquire local market
share in the food industry through low price, dominant selection of
hygienic products, a competitive variety of services including serving
coffee, juices and snacks plus a relaxing, friendly environment that
encourages browsing and reading. We also have entered digital market by
delivery our products online through foodpanda and selling custom made
cakes.

PARTNERSHIP
COFFEE N’ CHILL is a cafe registered in the state of Punjab. The
cafe is jointly owned by Miss Hafsa Ahmed, Miss Areena Chaudhary,
Miss Rimal Javed and Miss Maham Afzal. All partners have unlimited
liability and equal shares in the business.
The idea of the business was to create a cozy cafe that offers dine-in,
take-away and home delivery facility. The cafe offers a sitting for
customers with mandated SOPs.

LOCATION
The cafe, COFFEE N’ CHILL, is located at 620G1 Market, Block M
Phase 2 Johar Town, Lahore.

PRODUCT & SERVICES

The main service we offer is selling a variety of coffee, tea, juices
inside cafe and our products include light snacks that go well with our
beverages and a small place for using internet & Wi-Fi for those who
bring their own laptop. We offer a variety of pastries and desserts that can
be delivered home. We also bake customized products on request and
order that are can be directly Take-away from the shop or delivered at
home.
 TARGET MARKET
Our cafe is situated in G1 Market, Johar Town, which is a popular
hub for shopping and eating spots. It is near schools and banks, and
there’s residential area near the area. Our target customers are office
employees and students who visit the shop during lunch break and school
off-time. Therefore, we provide our products at reasonable price.

FINANCIAL CONSIDERATION
The cafe is a small establishment with overall 2 Million Rupees
investment from the partners. It does not owe any money to creditors.
The owners also invested their skills in the business and provide
assistance in the managerial activity of the business.

OBJECTIVE
COFFEE N’ CHILL main objective is to offers the perfect setting
for family and friends to meet, talk and eat in a comfortable and relaxed
atmosphere.

KEYS TO SUCCESS
 Increase our sales by marketing
 Introduce new and novel products on the menu
 Providing a comfortable environment to out dine-in customers
 Improving a product quality
 Providing a healthy and Clean environment to our staff
 MANAGEMENT & ORGANIZATIONAL
STRUCTURE
MANAGEMENT
Areena Chaudhary Customer Care Manager
Maham Afzal Marketing Manager
Hafsa Ahmed Account Manager
Rimal Javed Kitchen Controller

LEGAL STRUCTURE
COFFEE N’ CHILL is a registered cafe in the state of Punjab,
owned by 4 partners with equal shares.
Partners Shares
Hafsa Ahmed 25%
Areena Chaudhary 25%
Rimal Javed 25%
Maham Afzal 25%
Each member invested Rs. 500,000 in the business startup. The cafe
was registered under the Partnership Act of Pakistan.

LEGAL FORMALITIES
The owners also have registered the business under Pakistan Hotels
and Restaurant Acts 1976 and obtained a license with the government.
COFFEE N’ CHILL submitted the proposed menu with rate list, the
medical certificates of all staff and all other required documents. The
controller issued the license on 18th February, 2020 after we submitted the
required documents.
The owners also drafted a lease agreement for the rented location
and registered the Partnership Deed.
COFFEE N’ CHILL entered a contract with online food delivery
service, FOODPANDA, for it’s home-delivery service and custom order
delivery.
LAYOUT
 LAYOUT
The cafe covers an area of 1300sq.Ft and is situated on the ground
floor. Since COFFEE N’ CHILL offers a variety of service options,
therefore, the Dine-in area is kept small. The dinning area covers 60% of
the cafe area and the rest is utility area.
The cafe can serve approximately 30 customers at a time. The layout
of the cafe was planned keeping in mind the current COVID situation, so
that mandated SOPs can be followed.
There are five counter chairs that can be used by waiting customers
who want to take away their order or by individual customers who came
alone. A set of four sofas with adjacent set of chairs is placed on one
corner. Private space with a little alleviated floor is on the north of the
cafe which is ideal for small meetings and office work. Comfortable
chairs for a group of two is also placed on the side of the counter.
The layout is also ideal for small private event.
The kitchen is spacious and can accommodate at least 10 employees
at a time. The equipment are placed at a safe distance to avoid casualties.
There’s also a small recess space for employees and toilet.
 MARKETING PLAN

Product Menu
SANDWICHES
Chicken Katsu Sandwich Rs. 450
Delicious baked crispy chicken sandwich with garlic mayo sauce
Grilled Mozzarella Sandwich
A full course vegan grilled mozzarella sandwich with walnut pesto Rs. 350
and tomato.
Club Sandwich
The classic combination of meats, cheese & veggies piled high on Rs. 250
bread.
Egg Drop Sandwich
The egg drop sandwich brings together fluffy scrambled eggs,
sliced chicken sausages and melted cheddar cheese all wrapped
Rs. 250
together in a buttery toast drizzled with sweet creamy sauce.
Chicken Monsieur Sandwich
French chicken and cheese sandwich, made with parmesan Rs. 450
chicken ans a simple bechamel sauce, toasted in the oven.
Fruit Sandwich
Made with slices of light and airy sponge cake instead of bread
then filled with seasonal fruits like Strawberry, Kiwi and Orange.
Rs. 350
Perfect for breakfast and snack.

TEA
HOT TEA
Green Tea Rs. 90
Classic English Tea Rs. 130
Doodh Patti Rs. 110
Cardamom Tea Rs. 160
Kashmiri Tea Rs. 180
Assorted Tonic Teas (on request) -
ICED TEA
Apple Iced Tea Rs. 200
Lemon Mint Iced Tea Rs. 200
Chamomile & Peach Iced Tea Rs. 250
Bubble Tea (Assorted) Rs. 350

COFFEE
Black Coffee Rs. 150
Espresso Rs. 100
Double Espresso Rs. 150
 Cafe Latte Rs. 180
Cappuccino Rs. 140
Cafe Mocha Rs. 180
Cafe Americano Rs. 120
Caramel Macchiato Rs. 250
Dalgona Rs. 300
Frothy whipped coffee.
Banana Coffee
Take a break and savor this smooth, creamy Rs. 200
banana coffee.

LOW FAT SMOOTHIES

Banana Berry Rs. 550
Strawberry Vanilla Rs. 350
Mango Rs. 250
Mango Strawberry Rs. 350
Chocolate Vanilla Rs. 250
Avocado-Almond Mocha Rs. 520

PASTRIES
Cannoli with Vanilla Custard Rs. 180 / a pack of 2
Puff Pastry Rs. 225 / per kg
Cheesy Chicken Cup Bread Rs. 330
Fruit & Cream Danish Pastry Rs. 280 / per kg

DESSERT
Donuts (Assorted) Rs.80/ per piece
Cupcakes (Assorted) Rs. 180 / a pack of 3
Muffins (Assorted) Rs. 300 / a pack of 5
Souffle Pancake Rs. 300
Swiss Roll Rs. 200
Waffle Rs. 280
Mini Lemon Coconut Loaf Cake Rs. 80
Rs.130 (small)
Plain Vanilla Loaf Cake
Rs.200
Marble Cake Rs. 195

COFFEE N’ CHILL SPECIAL

Mini Pizza Bites Rs. 80
Soft inside, with golden crust on the outside.
Strawberry Cheesecake Vatrushka Buns Rs. 150
Cinnamon Raisin Bun Rs. 150
Soft & lightly sweet
Raspberry Sweet Rolls Rs. 80 / per piece
Super Moist and teeny bit tart from berries and lemon
Palmiers Rs. 350 / per kg
Strawberry Cake Mix Crinkle Cookies Rs. 100
Chocolate Chip Cookies Rs. 250 / per kg
Simple Biscuits with Adorable Shapes Rs. 300 / per kg

Cake Starting from

Custom cake on order Rs. 1000 / 1pound

PRODUCT STRATEGY
COFFEE N’ CHILL offers a variety of products from desserts to
appetizer to healthy drinks that goes well with the seasons.
The cafe’s target audience is office workers and school students who
can visit our shop after their office and school time. The people are tired
after a busy day and our food is right for them. We specifically chose our
menu with healthy products that is easy on the stomach and not greasy.
We are proud of our beverage choices that are made of 100%
organic products. Our refreshing, low calorie drinks acts as a medicine
and help alleviate tardiness.
Our bakery products are all custom made and favourite among the
younger generation, from animated characters to mouth-watering flavors,
specially made by expert chefs.
The cakes are trend-setting customized cakes that is setting a new
benchmark in the bakery industry. We make season and event oriented
cakes and biscuits.

PRICING STRATEGY
COFFEE N’ CHILL is offering a variety of products at fair rates.
We set the rate of our products after careful consideration of our
customers. Our target market is students and salary employees. That’s
why we decided to sell quality products at lowest price so that we can
avail our products to a large audience. We included tax to our products in
the menu list.

PROMOTION & ADVERTISEMENT

COFFEE N’ CHILL has also ventured in digital marketing.
INSTAGRAM is one of the most widely used application across the
globe. We decided to boost our business visibility by marketing on
Instagram. It proved to be an incredible sales funnels, and users have
bought our customized cakes from the said platform.
 We also interact with the audience on regular basis and welcome
recommendations from them.
COFFEE N’ CHILL also sell it’s bakery products on online food
service, FOODPANDA.

MARKETING STRATEGY
COFFEE N’ CHILL started an online food business too. The cafe
started it’s business at a critical point during the time of spread of the
pandemic. We registered to the largest online food delivery platform,
FOODPANDA. We sell our bakery products on FOODPANDA.
Our customized cakes are also selling well on Instagram.

OPERATIONAL PLAN

METHOD OF SERVICE DELIVERY

COFFEE N’ CHILL entered a mutual contract with FOODPANDA
delivery service. They foodpanda driver delivers home delivery orders.
The delivery service sends the payment to the cafe owners from the
orders after every months and gives us detailed insights on the
performance.

QUALITY CONTROL
COFFEE N’ CHILL take great lengths to provide quality products to
it’s customers. Our kitchen controller inspects the quality management on
a regular basis. We also keeps a keen eye on our supplier material’s and
always use the best quality raw materials. We also have a regular
cleaning and sanitizing program to prevent contamination.
This helped us in improved sales of our products and higher
employee morale.
 FINANCIAL PLAN
CAPITAL REQUIREMENT
The required capital was calculated after market and financial analysis of
the our business. It also included the initial operational cost of the
business. The required capital was invested by all partners. The initial
capital invested in the cafe was 2 Million Rupees. The amount was raised
by the partners equally.

INITIAL OPERATIONAL COST

MACHINERY & EQUIPMENT
UNIT TOTAL
ITEM DETAILS QUANTITY PRICE PRICES LIFE
(RS.) (RS.)
Freezers 2 45,000 90,000 20
Food Prep Equipment - - 180,000 10
Cooking Equipment - - 300,000 8
Working Tables 02 25,000 50,000 8
Crockery / Cutlery - - 100,000 7
Water Geyser 01 10,000 10,000 10
Generator 15 KVA 01 110,000 110,000 10
Total 840,000

FURNITURE & FIXTURES

UNIT PRICE TOTAL PRICE
ITEM DETAILS QUANTITY
(RS.) (RS.)
Counter Chairs 05 5000 25,000
Set of Two Chairs, Sofa and
04 25,000 100,000
Marble Table
Set of Table with Two Chairs 02 12,000 24,000
Staff Furniture - 20,000 20,000
LED Spotlight & Panel Light 50 200 20,000
Air Conditioner (1Ton) 02 55,000 110,000
Total 299,000
 COFFEE N’ CHILL
620G1 Market, Block M Phase 2 Johar Town, Lahore, Punjab 54770
92-111-244-622

YEARLY CAFE BUDGET

Description Quantity Price Total
Employees’ Compensation 3 Rs. 15,000 Rs. 45,000
Rs. 150,000
Marketing Activities 2 Rs.250,000
Rs. 100,000
Equipment Maintenance - - Rs. 50,000
Other Maintenance Rs. 30,000
License Fees 2 - Rs. 25,000
Total Rs. 400,000

INCOME STATEMENT
COFFEE N’ CHILL
INCOME STATEMENT
MARCH 01, 2020 - MARCH 01, 2021
Revenues
Sales Revenue Rs. 6,000,000
Expenses
Salaries Rs. 756,000
Utility Bills Rs. 800,000
Rent of Building Rs. 1,490,000
Employees’ Compensation Rs. 45,000
Marketing Activities Rs.250,000
Equipment Maintenance Rs. 50,000
Other Maintenance Rs. 30,000
License Fees Rs. 25,000
Net Income Rs. 2,354,000
 CASH FLOW STATEMENT
COFFEE N’ CHILL
CASH FLOW STATEMENT
MARCH 01, 2020 - MARCH 01, 2021
Cash from Operating Activities
Cash received from revenue transaction Rs. 6,000,000
Cash Paid for Expenses (Rs. 3,646,000)
Net Cash Provided by Operating Activities Rs. 2,354,000
Cash from Investing Activities
Purchase of Furniture & Fixture (Rs. 299,000)
Purchase of Machinery & Equipment (Rs. 840,000)
Net Cash of Investing Activities (Rs. 383,000)
Cash from Financing Activities
Capital Stock Rs. 2,000,000
Increase in Cash for the Period Rs.3,971,000
Beginning Cash Balance, March 01, 2020 -0-
Ending Cash Balance, March 01, 2021 Rs. 3,971,000
STRENGTHS WEAKNESS

OPPORTUNITIES THREATS
CONCLUSION
 The business is doing considerably well, with respect
to other newly opened cafes, because we provide
hygienic food with best service in a pleasant
environment.
 Our cost is very less and profit is alright after
deduction of expenses.
 In our area, there are no cafe that provides freshly
prepared snack product at such low prices so we could
make a name of our business inside the market by
providing tasty and hygienic food with best services in
a pleasant environment.
 Since it’s a partnership form of business, the profit is
divided and it leaves average amount for partners.
 APPENDIX
PARTNERSHIP DEED COPY
 Partnership Deed
This agreement is made at Lahore on this 20th day of February of 2020.

BETWEEN
Ms.Hafsa Ahmed, daughter of Niaz Ahmed, resident of Lahore,(hereinafter referred
to as the “first party” which expression shall unless repugnant to the context and
meaning include its administrators, assigns and representatives) of the first part;

AND
Ms. Areena Chaudhary, daughter of Ishtiaq Ahmad Ch resident of Lahore (hereinafter
referred to as the “second party” which expression shall unless repugnant to the
context and meaning include its administrators, assigns and representatives) of the
second part;

AND
Ms. Rimal Javed, daughter of Javed Iqbal resident of Lahore (hereinafter referred to
as the “third party” which expression shall unless repugnant to the context and
meaning include its administrators, assigns and representatives) of the third part;

AND
Ms. Maham Afzal, daughter of Rana Afzal Ahmad Khan resident of Lahore
(hereinafter referred to as the “fourth party” which expression shall unless repugnant
to the context and meaning include its administrators, assigns and representatives) of
the fourth part;

WHEREAS the first party is carrying on the business of COFFEE & CHILL, a cafe.

AND WHEREAS the second party is carrying on the business of COFFEE &
CHILL, a cafe.

AND WHEREAS the third party is carrying on the business of COFFEE &
CHILL, a cafe.

AND WHEREAS the fourth party is carrying on the business of COFFEE &
CHILL, a cafe.

AND WHEREAS all the aforementioned parties are desirous of entering into a
partnership between themselves for the purpose of running the cafe;

Now henceforth it is mutually agreed between the parties hereto:

1. Firm Name
That the name of the partnership firm shall be COFFEE & CHILL.
2. Commencement
The partnership shall be deemed to commence on the date of execution of this deed of
partnership by the parties hereto and shall continue for a period of 10 years unless
dissolved earlier by the parties by mutual agreement.

3. Place of business
The principal place of business of the firm shall be at 620G1 Market, Block M Phase
2 Johar Town, Lahore.

4. Capital
The capital of the firm shall be Rs.2,000,000. The partners shall contribute the capital
in the following ratio:
First Party: 25%
Second Party: 25%
Third Party: 25%
Fourth Party: 25%
If any additional capital is required for the effective working of the partnership, it
shall be contributed by the partners equally or in such proportion as may be agreed
between them.

5. Advances beyond Capital

Where for the purposes of the business, any payment or advance beyond the amount
of the capital he has agreed to subscribe is made by a partner, such amount shall be
deemed to be a debt due from the partnership to such creditor-partner and shall bear
interest at the rate of 2 percent per annum.

6. Share in profit & loss

The partners shall be entitled to share equally in the profits earned by the firm, and
shall contribute equally to the losses sustained by the firm.

7. Books of Account
Proper, regular, full and true accounts of the sales, purchases, receipts, transactions
and dealings of the firm shall be maintained and kept at the principal place of business
of the firm under the direct supervision of the partners. The partners shall have free
access at all times without any interruption or hindrance by any other to scrutinize,
inspect and copy the same at their own expense.

8. Bank Account
a) A bank account of the firm shall be opened immediately on the commencement
of this partnership in the name of the partnership firm which shall be operated
upon jointly by all the partners.
b) Each of the partners shall be allowed to individually withdraw from the account
the amount of Rs.25000 in a day and update the books of the firm following each
transaction.
c) All sums of money received by the firm in cash or through negotiable instruments
shall be deposited in the same bank account.
9. Restrictions
Neither party shall without the consent in writing of the other:
i. Carry on or engage in directly or indirectly in any other identical or similar
business, for which the partnership is formed;
ii. Endorse, approve or accept any cheque, note or other negotiable instrument or
stand as surety for any loan or enter into any transaction harmful to the interest of
this partnership;
iii. Transfer, assign, mortgage or charge his interest or share in the partnership;
iv. Appoint or dismiss any employee of the firm;
v. Compound, assign or release any debt due to the firm except upon payment in
full;
vi. Enter into any deal or transaction with any person, company or firm whom the
other parties to this deed shall previously have requested not to deal with, trust or
transact business with.

10. Death
The death of a partner shall not result in the dissolution of the partnership. The legal
heir/heirs of the deceased partner shall continue to receive the profits accruing from
the business to the extent of the share of the deceased partner but will not be expected
to contribute towards losses unless they are taken in as the partner.

11. Retirement
If a partner elects to retire from the firm prior to the time fixed for the partnership, he
may give a notice thereof to the remaining partners showing his intention to retire
within a period of 13 months. The share of the outgoing partner shall be ascertained
according to the terms of this deed and paid off out of the available assets of the firm
following such adjustments as to current expenditure as are mutually agreed between
the parties. Such retirement shall not operate as dissolution of the partnership. The
continuing partner(s) may induct new partner but so as not to prejudice the retiring
partner. Provided that the retiring partners shall not carry on a business competing
with the business of the firm for a period of two years nor use the firm’s name nor
solicit any of the customers of the firm for such period.

12. Incapacity
a) In the event that a partner becomes physically or mentally incapacitated to carry
on the business of the partnership, the active partners shall continue to pay 8% of
the profits of the partnership to the incapacitated partner and the same shall not be
expected to contribute towards the losses.
b) Upon the termination of the partnership, the disabled partner shall be entitled to
his share of the assets of the firm when the final assets and liabilities of the
business are settled.

13. Inspection of books of account

All books and accounts of the firm shall be open to inspection to any retiring/
disabled/ deceased partner’s legal heirs of the partnership firm at all times.

14. Dissolution
Subject to the provisions contained in the Partnership Act, 2017 and unless extended
earlier the firm shall stand dissolved on the expiry of the term prescribed in this
document. In the event of dissolution of the firm an accurate inventory which shall
include the goodwill of the business shall be prepared by a mutually appointed
accountant and the accounts shall be settled between the partners as follows:
a) Losses shall be applied firstly out of profits, and then out of capital and lastly if
the need arises by the parties themselves in the proportions that they were entitled
to share profits.
b) The assets of the firm, including any sums contributed by the partners to make up
deficiencies of capital shall be settled as follows:
(i) paying off of the debts of third parties;
(ii) paying off to each partner rateably what is due to him from the firm for
advances as distinguished from capital;
(iii) paying the partners rateably what is due to them on account of capital; and
(iv) the residue, if any, shall be divided among the partners in the proportion
that they were entitled to share profits.

15. Arbitration
In the event that a dispute arises between the partners, the same shall be referred to a
mutually appointed arbitrator whose decision shall be final and binding on the parties
concerned.

In witness whereof the parties hereto sign this deed of partnership on

the day and year first abovementioned.

Witness First Party Witness Second Party

Witness Third Party Witness Fourth Party