Feasibility Report on Opening a New Restaurant in Blue

Area, Islamabad.

JALAL RASHEED 01-122081-045

SARA AKHTAR SHEIKH 01-122081-094

SYED MEHDI RAZA ZAIDI 01-122081-106

A Project Submitted In Partial Fulfillment of the Requirements for the Degree of MBA

Department of Business Administration

Faculty of Administrative Sciences

Bahria University

2009
 Abstract

This study is aimed at studying the business environment of

the country and then accordingly selecting an appropriate
business type in the prevailing market conditions which
results into high profitability and high return as compared
to other investments in the market. This research focuses on
the study of restaurant industry as researchers wanted to
open a restaurant. In depth market analysis has been carried
out to launch a successful restaurant business. Study starts
from the history and background of the restaurant which
reveals about how did the restaurant industry revolutionized
over the centuries. The current study provides a detailed
business plan which covers all the essentials of a
successful business plan.
The research methodology adopted for this research is based
on standard theory. Two different Questionnaire forms were
used to collect data from the employees and the general
public. Direct interviews were also done.
Crucial market opportunities have been identified in the
business plan and relative action plans have been explained
about how to accomplish the entire situation. Critical risks
have also been identified in the study which might affect
the operations of the proposed restaurant. In addition
contingency plans have been defined in order to eliminate
those risks so that a good working business environment can
be created.
This study is expected to be helpful for the readers to have
information about how to change with the dynamic and
competitive business environment and how to create better
opportunities.
 ACKNOWLEDGEMENTS

In the name of Allah Almighty, the Most Gracious, the Most

Merciful, Who has blessed us with the physical and mental
capabilities to complete the assigned project. All praises
and gratitude’s to “Almighty Allah”, Who bestowed upon us
the intellect and sound sense of conception for higher ideas
of our lives.

We would like to express sincere gratitude to our research

supervisor Mr. Hafiz Shahid Mahmood who, all through the
course of completion of this project, was always there to
help us. We would like to thank him for his continuous
support, guidance, suggestions, and personal interest during
this project.

We are thankful to all our faculty members of BIMCS who

helped, supported, and motivated us in the making of this
project.
 Table of Contents
1. Introduction...........................................1
1.1 Broad Problem Area / Background......................1
1.2 Problem Statement....................................4
1.3 Objectives of the Study..............................4
1.4 Research Methodology.................................5
1.4.1 Target Industry / Market.........................5
1.4.2 Population Sample................................6
1.4.3 Procedure........................................6
1.4.4 Type of Data.....................................6
1.5 Scope of the Project.................................7
1.6 Limitations of the Project...........................8
2. Literature Review.....................................10
2.1 History of Restaurants..............................10
2.2 Evolution in Restaurant Industry....................11
2.3 Recent trends in Restaurant Industry................12
3. Business Plan.........................................15
3.1 Executive Summary...................................15
3.1.1 Mission Statement...............................16
3.1.2 Objectives......................................16
3.1.3 Critical Success Factors........................17
3.2 Company Overview....................................17
3.2.1 Company Summary.................................17
3.2.2 Company Ownership...............................18
3.2.3 Start-up Summary................................19
3.3 Services............................................22
3.3.1 Products........................................22
3.3.2 Pricing and Profitability.......................26
3.4 Market Analysis Summary.............................26
3.4.1 Market Segmentation.............................27
3.4.2 Competition.....................................28
3.4.3 Market Analysis Information.....................30
3.4.4 Market Research.................................31
3.4.5 Opening day of restaurant.......................33
3.5 SWOT Analysis.......................................35
3.5.1 External Environment Analysis...................35
3.5.2 SWOT............................................37
Strengths ............................................37
Weaknesses............................................38
Opportunities.........................................38
Threats...............................................38
3.5.3 Strategy and Implementation Summary.............38
3.5.4 Competitive Strategy............................39
3.6 Marketing/Sales Plan................................40
3.6.1 Strategy Choice.................................41
3.6.2 Advertising Strategy............................42
3.6.3 Long term adjustments/options...................42

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 3.6.4 Sales Strategy..................................42
3.6.5 Sales Forecast..................................43
3.7 Management Summary..................................44
3.7.1 Personal Plan...................................45
3.8 Financial Plan......................................46
3.8.1 Projected profit and loss statement.............47
4.0 Risk Analysis........................................49
5.0 Contingency plans....................................50
Annexure.................................................51
Bibliography.............................................57

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1. Introduction

1.1 Broad Problem Area / Background

When ever people talk about becoming an entrepreneur, usually most of them
have dreamy looks on their faces and express it by saying that: “oh I have always
wanted to be an entrepreneur” and then they would usually follow it with a line:
“wish I had enough capital to start up my own business”. Well to some extent it is
true and to a certain extents it is false. Usually when people think of setting up a
business, the first thing which comes to their minds is the business start up cost.
They often think that it is quite high and they never think of evaluating and
assessing the different sets of options and alternatives which are easily available
to them in which they can invest easily and become a business owner.

People think businesses can only be established with the availability of high
capital, where as there are many business opportunities, which require very less
capital requirements such as consultancy, contractual works, restaurants and many
other set of alternates. To be business man is simply not every one’s cup of tea;
one has to be very determined, strong and dynamic to be a successful
businessman to make his presence feel in the market.

Now, the question arises why to become a business owner when one can easily
get a job and earn money rather than taking high risk of investing a large sum of
money in the business and hoping it to perform well so that it can pay out benefits
in the future. The answer is quite simple; a person can earn good money from his
job but he will still not be able to compete with a businessman in terms of his
wealth. Business was also our Prophet’s (S.A.W.W) favorite profession because it
has several advantages related to it.

This is the reason why researchers have decided to do this business plan, as a final
project. As all three researchers have completed MBA and before that they did
BBA (Hons), which makes it round about five years of business academic studies.

1
Researchers felt that they would sincerely utilize their knowledge and skills which
they gained during academic studies by starting up their own business and make it
run successfully through pure professionalism.

After deciding the future direction, that is to establish their own business, it was
important for them to find out which is the best option available to them for
investing in current local and global economic circumstances.

After a thorough analysis of the market researchers observed that even in

such difficult economic crisis the service sector is
still outperforming the market as compared to the
manufacturing sector.

To set up a manufacturing business one needs to have

strong financial support as a lot of machinery and man
power is required if one has to compete in the market,
where as in the service sector not much capital is
required as compared to the manufacturing sector.

So, after thorough market analysis researchers think of

investing in service sector and to be precise, they
would go for restaurant business. The reason why they
selected restaurant business was that in restaurant
business the profit margins are high and food is a
basic necessity for the survival of the human being.
Now-a-days when the recession is in the peak, new
restaurants opening can still be seen and people are
still rushing towards them and they are making high
profit margins by offering good quality food at an

2
affordable price to the customers accompanied by
excellent service.

There are a few benefits of being a restaurant owner

which are as follows:

I. Having your own restaurant is like raising a

child. No one will take as much interest and pride
in it, as you will. When you get compliments of
your restaurant, whether it is about the food or
the service, you will beam. You will love hearing
how people enjoy coming to your restaurant.

II. As a local business owner, you get to meet a lot of people. If your
restaurant is in your hometown, you get to visit with friends and
neighbours. A restaurant is a community gathering spot, and that sense of
community can be very rewarding.

III. Depending on whom you speak to, people often think that all restaurant
owners are people of high society that also comes with a touch of glamour
so there is likelihood that you’re able to make good PR relations with
prominent personalities of the society which can help you in your business
carrier.

In the following pages researchers have discussed in detail the restaurant industry
trends, external environment analysis, strategy tools which they will use to
incorporate strategies for the restaurant and a detailed business plan will also be
discussed, which will cover all essential aspects of the business plan.

3
1.2 Problem Statement
“Feasibility of establishing a restaurant by preparing a business plan on the basis of
the target market and average capital while introducing innovative promotional
strategies to penetrate the market”

1.3 Objectives of the Study

The objectives of this study are to:
 Determine Restaurant industry trends prevailing in the country.
 Determine the critical success factors of the restaurant industry.
 Determine the taste and preferences of the target market, factors which
might influence the business practice which include both internal and
external factors.
 Develop an effective and comprehensive business plan which facilitates
to successful launching of business to make an immediate impact on the
market through cost effective and differentiation strategies.
Above objectives will be the key and also use of all other sets of strategies
which help in sustaining long term goals and objectives.

1.4 Research Methodology

The research methodology, which has been adopted for this research, is based on
the standard theory. Following are the phases; from which researchers have gone
through to obtain essential data, which will be required in conducting the
research.

1.4.1 Target Industry / Market

Our target industry is the restaurant industry of Pakistan as researchers are
preparing a business plan for a restaurant and the target market for the restaurant
will mainly comprise of middle class and upper middle class groups of Islamabad.
Further on students will also be the main group of the target market and the

4
 employees in the surrounding offices will also have a major portion of the target
audience.

1.4.2 Population Sample

As our research requires studying two different target audiences, one is the
employees of the surrounding offices and the second is the general public. So, two
different surveys have been carried out in which population sample size was two
hundred for each group. Researchers also interacted with people in the market
which provided important information, which is critical in the preparation of this
research. This includes property dealers and employees of different restaurants.

1.4.3 Procedure
Keeping in mind the type of research and type of data required both quantitative
and qualitative research was preferred for this research report. In quantitative
research, questionnaire forms were used in collecting data from the sample groups
identified earlier. Many researchers have raised objections to the quantitative
research as it misses out the detailed information which is some times crucial for
the research, so in order to counter this problem, qualitative research was also
used to carry out detailed research.

1.4.4 Type of Data

For this research, researchers decided to use both primary as well as the secondary
data. Primary data was collected through the following options:

I. Face to Face Interviews from general public.

II. Telephonic Interviews from employed persons.

Secondary data was collected through the following options:

I. Internet

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 The reason why the researchers opted to use both sources of data for research is
that restaurant industry is already well established and good practices are being
carried, so, the basic things to be relied on is the secondary data, as there is no
need to reinvent the wheel when it is already invented. But as far as introducing
an innovative service researchers have to go for primary data so that new
information can be retrieved from the market which will help them to introduce a
unique and different service.

1.5 Scope of the Project

As the problem statement of our project is to prepare a business plan for Grace
Restaurant while keeping in mind the target market and our available capital
while introducing innovative promotional strategies to penetrate the market. So
this study starts from the preferences of the target market that what they look in a
restaurant of their choice. Their tastes and preferences has been analysed and it is
believed to come up with such different service, which is not being offered to
them by the current market players. After a thorough customer analysis we have
prepared our business plan that what is the best possible service, which we can
offer to our customers with the available budget to us. Then, we also have to
come up with innovative strategies so that we can attract as much of our target
market as possible in order to achieve our goals and objectives.
As this project is related to the restaurant industry so our focus remains on this
particular industry and at the same time we have studied the legal requirements
for this particular business that what standards do we need to follow in order to
meet health and hygiene standards.
The project includes competitor analysis which helps in identifying that what sort
of services are being offered by the competitors, at what rates and what sort of
strategies are they following to keep their market share intact.

6
1.6 Limitations of the Project
As this project is related to the restaurant industry, so, point of focus remains
around this particular industry and the factors relating to it. This project provides
a generalize idea of how to set up restaurant business as facts and figures
mentioned in this report might differ in reality. The reason why to say that the
facts and figures, which are mentioned in this report, might differ is that the
information which is gathered for this report through interviews, surveys,
questionnaires, and from different people, may have some distortion as some
people hesitate to give out information regarding their business as they have a risk
to give up their competitive advantage by disclosing confidential information and
they also try to discourage new entrants to enter the market as they will have a
risk of losing market share.

Yet, the researchers have tried their possible best to get realistic facts and figures
which are quite close to the realistic facts and figures.

The forecast in this report is based on the current market conditions which may
differ when the plan is actually implemented. There are some assumptions used in
this report, especially, in the financial analysis because true profits and costs can
only be recognized if they are incurred in reality.

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2. Literature Review

2.1 History of Restaurants

Dining out is an integral part of the people lifestyle.
People eat out not just because they are hungry but
also for entertainment, relaxation, to socialize, to
avoid cooking at home, and sometimes to conduct
business. This all looks pretty much convenient and
easy in todays fast pace life style but it wasn’t
always this way. (http://restaurants.about.com)
Historically, the concept of restaurant, as we know it,
is relatively a recent one. It is asserted by some that
the first restaurant in Europe was Champ d’ Oiseau,
started by Chef named Boulanger in Paris in 1765.
Others claim that honour goes to another Parisian
public eating house, La Tour d’Argent, opened in 1533.
Whatever the case, it was not until after the French
revolution in 1789 that the concept of restaurant began
to spread. Prominent chefs once employed by the deposed
wealthy found themselves out of work and the more
enterprising ones opened establishments to feed the
public. (http://restaurants.about.com)
Prior to the 1700s the only places where people can
obtain a prepared meal for fixed price in England inns
and taverns, which were also, called ordinaries. The
meals were not of the customer’s choice and their price
included a fee for lodging, which had to be paid
whether or not the dinner slept there.
(http://restaurants.about.com)

8
2.2 Evolution in Restaurant Industry
The evolution of the restaurant industry evolves
around the colonial period and as its origination was
from Europe, which later spread to America so most of
the industry got matured in European countries and
America. (http://www.zacks.com)
As time progressed, a genteel class emerged in the
colonies, and inns fashioned after those in England
were built to serve them. The inns would accommodate
guests who wished to dine only but required them to pay
for both food and lodging, as it was the custom in
England. (http://www.zacks.com)
Few changes occurred in the public hospitality field
after the colonies received their independence. By the
1820s, eating establishments were being opened for the
sole purpose of serving food and drink to the public.
The expansion of communication networks through out the
world lead to opening of cafes, lunchrooms, lunch
wagons, tearooms, cafeterias, coffee shops, diners and
full service restaurants. Some of the more important
changes, which impacted the restaurant industry,
happened in the 20th century, which included the
franchising of fast food establishments, which made
eating out more convenient and affordable. Also the
growth in the Airline industry impacted the restaurant
industry in a positive way by encouraging people to go
out of cities for vacations and have recreational
activities. Over the years as number of women workforce
increased rapidly so families with two working parents
made it common for them selves to dine out on regular
basis. (http://www.zacks.com)

9
 By the 1980s there were restaurants for every
pocketbook, palate and work schedule and the restaurant
industry had reached its age of majority.
(http://www.zacks.com)

2.3 Recent trends in Restaurant Industry

A number of mega trends have been identified by
Datamonitor, a global market analysis firm. These
trends concern behavioural changes and shifting
spending patterns in such areas as convenience, health
issues, age complexity, gender complexity, life stage
complexity, income complexity, individualism, sensory
needs, comfort needs and connectivity. It is important
for restaurant owners to be aware of such trends and to
consider their potential impact on operations of the
business listed below are some current trends followed
by challenges that one may extrapolate from them.
(http://www.myhalo.com)

Lifestyles have become faster paced, and multi tasking

among work, home and family responsibilities is common.
This has driven people to seek easier ways of coping
with the many demands on their time. Consequently
convenience has become a major factor when making
consumption decisions. The challenge is how to make the
restaurant more accessible and time efficient for your
target market. (http://www.myhalo.com)

Many people are defying the stereotypical patterns

linked with their age group. These behavioural changes
express them selves as older adults become more
accepting of casual dress wear and activities usually

10
associated with younger adults, teens walk around with
wallets full of allowance money and young people with
first time credit cards are eager to exercise their
spending power. The marketing strategies and
advertising pitches that have been used to attract
these groups must be reassessed. In this regard the
challenge is to how a restaurant can keep up with the
products and services that these groups now seek and
expect. (http://www.fastupfront.com)

Many people seek relief from daily stress through small

indulgences, such as comfort foods that help them
escape the day’s pressures. In this the challenge is to
how a restaurant can satisfy those needs through in
house or take out offerings.
(http://www.restaurantnewsresource.com)

Diners appear to be seeking greater sensory fulfilment

and are more willing to experiment with new foods. Your
guest’s experience includes what they see, hear, touch,
taste and smell at every point in a restaurant. The
challenge is how a restaurant can meet their
expectation and create a positive word of mouth.
(http://www.awib.org)

Consumers are more health conscious. People are more focused on

health and nutrition then they were two years ago with
76% of adults and 73% of teenagers responding that they
are choosing more healthy options when dining out. In
response, restaurants are providing healthy meal
options and smaller portions.
(http://www.restaurantnewsresource.com)

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 Going green is going strong. Green consciousness is affecting the restaurant
industry in two major ways. Restaurants are operating in a more environmentally-
friendly way by having equipment that saves water or energy or by offering
supplies and packaging made of eco-friendly materials. A small percentage of
restaurants are also offering organic or locally grown food, sustainable seafood
and meats. According to the Restaurant Industry Forecast, 62% of consumers say
they are likely to choose a restaurant based on how environmentally friendly it is.
(http://www.fastupfront.com)

Look for food on the go. With tight or hectic schedules, most consumers are
looking for ways to take the food they love with them. Popular takeout options
among restaurants include: curbside pickup, drive-thru, catering, and delivery.
Approximately half of the consumers surveyed said that they would use curbside
pickup or delivery if offered by their favorite table service restaurant.
(http://www.restaurantnewsresource.com)

People want more ordering options. Consumers are

looking for convenience and control when it comes to
placing orders. Restaurants are allowing consumers to
place orders via the Internet, fax or cell phone.
Consumers are also seeking ways to customize menu
items, initiate self-activated ordering and make
prepayments. (http://www.restaurantnewsresource.com)

3. Business Plan

3.1 Executive Summary

Grace restaurant is proposed to be a 70 seat fine-dining restaurant. The menu

would include Pakistani food items and fast food items.
In today’s highly competitive environment, it is
becoming increasingly more difficult to differentiate

12
one restaurant concept from the other. Grace proposes
to achieve this by offering more variety in their menu
as compared to its competitors by serving Pakistani
food as well as the fast food items. It is believed
that Grace restaurant would have a competitive edge
over the competitors due to the varied menu. No other
restaurant in this area has been able to provide this
combination of features for their customers.
Grace restaurant is proposed to be located at Jinnah Avenue, Blue Area, next to
Mohammad Ali Jinnah University, which is the commercial and business hub of
Islamabad. It is called “Blue Area” because it was represented in a colour blue in
the original design of the planned city. A number of international companies and
local companies have their offices in Blue Area. Some buildings in Blue Area
have offices of different establishments and some buildings are occupied by
single company.

The service offered would be relaxed, efficient, friendly and courteous. The best
people would be hired, motivate and encourage them, and thereby retaining the
friendliest most efficient staff possible.

Most important is the financial success and it would be achieved by offering

high-quality service and excellent food with an interesting twists. Financial
projections have been created based on the knowledge of area. With a start-up
expenditure of 6.0 million rupees, it has projected that 17.66 million rupees sales
by the end of year two would be generated, and produce handsome net profits by
the end of year three.

The capital structure will comprise of 36% debts and 64% equity. A mortgage
loan of 2.2 million rupees would be taken at the rate of 18%. Rest 3.8 million
would be the equity.

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3.1.1 Mission Statement

“To be the first choice of people by exceeding the expectations of our customers
and to attain sustainable growth and maximize profit through our passion,
integrity and continuous development of our employees.”

3.1.2 Objectives
I. To provide best quality and innovative services to our customers.
II. To keep our cost low as compared to our competitors.
III. To keep our personnel motivated towards their work.
IV. To make the restaurant profitable with in one to two years.
V. To achieve high returns on investment.
VI. Commitment to environmental and social issues.

3.1.3 Critical Success Factors

I. Competitive and fair price structures.
II. Good quality and tasty food with peaceful
environment.
III. Variety of food items.
IV. Location of the Restaurant.

3.2 Company Overview

3.2.1 Company Summary

Grace restaurant is proposed to be a double unit, medium sized restaurant. It will

consist of two portions, one will be the ground floor and the second will be in the
basement of the building. Apart from selling the fast food items like burgers,
nuggets, etc our restaurant will also focus on some special dishes, which are
considered to be as the typical Pakistani dishes. This restaurant will be located at
Jinnah Avenue, Blue Area that is considered as one of the busiest place of
Islamabad, which is the capital city of Pakistan. In the surroundings of the

14
 restaurant there are multi national and local organizations and couple of
universities are also at a walking distance. Right in front of the restaurant there
are two buildings, Saudi Pak Tower and National Life Insurance building. Next to
the restaurant is Muhammad Ali Jinnah University, it is expected that a lot of
customers within the restaurant’s surroundings would be entertained. The prime
location sets the restaurant apart from the competitors. Most important is the
financial success and it is believed that this would be achieved by offering high-
quality service and good quality of food to the target market.

Grace restaurant is proposed to be open 7 days a week, serve lunch from

11:00AM- 4:00 PM and Dinner from 6:00 PM to 12:00 PM. Between 4:00pm to
7:00pm Hi-Tea, snacks, tea and coffee would be offered. Snacks, tea and coffee
would also be offered during normal working hours.

3.2.2 Company Ownership

The restaurant is proposed to function as a partnership. The investment
structure of the restaurant would be partly debt and partly equity. The equity
portion of the restaurant would be divided equally by each partner. There will be
3 partners namely:
1. Syed Muhammad Mehdi Raza Zaidi.
2. Jalal Rasheed.
3. Sara Akhtar Sheikh.

Jalal Rasheed
33% 34%
S.M. Mehdi Raza Zaidi

Sara Akhtar Sheikh

33%

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3.2.3 Start-up Summary
The founders of restaurant would be Syed Mehdi Raza, Jalal Rasheed and Sara
Sheikh. Our initial investment in the restaurant will be 3.8 million rupees, which
would be equally invested by each partner. The financial part of our restaurant
will be run by Jalal Rasheed, the management and strategy development would be
under the supervision of Syed Mehdi Raza and the human resource recruitment
and training would be looked after by Sara Sheikh. A long-term loan of 2.2
million rupees would be taken in order to start the restaurant, so that to keep the
tax payments low.

The location selected for the restaurant, has a monthly lease payment of Rs.
250,000. The area of our proposed location is around sixteen hundred to 1800
square feet. In the first year of the operations it is expected that the profits will be
low due to higher investment, which comprises mostly of fixed cost and some
variable cost. The pricing would also be very competitive in the first year in order
to attract as many customers as possible. This will give an opportunity to the
target market to make Grace Restaurant their first choice to dine out by providing
high quality of service options.

Start-up Costs

Rupees
Registration 10,000
(www.amlaw.pk)
License (www.amlaw.pk) 5,000
Rent 1,500,000
Security Deposit 500,000
Uniforms 50,000
Furniture 150,000
Electric Works 560,000
Interior Decoration & 300,000
Renovation
Sound System 35,000
Kitchen Appliances 130,000
Office Supplies 75,000

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Gas Connection 250,000
Generator 200,000
Phone Connection 5,000
Insurance 10,000
Advertising 20,000
Total Expenses 3,800,000
Start-up Cash 2,200,000
Total requirement 6,000,000

Registration
License
Rent
0% Security Deposit
0% Uniforms

25% Furniture
37% Electric Works
Interior Decoration & Renovation
Sound System
Kitchen Appliances
8%
0% Office Supplies
1%
4% 5% 9% Gas Connection
0%
3% Generator
1%
0%
Phone Connection
2%
3% Insurance
1%
Advertising
Startup Cash

Start-up Funding:
Expenses at start-up 3,800,000
Assets at start-up 2,200,000
Total funding required 6,000,000
Assets at start-up:

Cash at start-up 2,200,000

Total Assets 2,200,000

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 Liabilities and Capital:

Long-term Liabilities 2,200,000

Total Liabilities 2,200,000
Investment by Jalal 1,266,920
Investment by Mehdi 1,266,540
Investment by Sara 1,266,540
Total Investment 3,800,000
Loss at Start-up (3,800,000)
Total Capital 0
Total liabilities and capital 2,200,000

Start-up graph

4,000,000
3,500,000
3,000,000
2,500,000
2,000,000 Start-up graph
1,500,000
1,000,000
500,000
0
Expenses Assets Investments Loan

3.3 Services

3.3.1 Products
The restaurant will provide good quality of food and high quality of services. The
menu has been divided in to two parts

I. Foods

II. Beverages

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In the foods section a wide variety of Pakistani food items would be offered,
which would include chicken, mutton beef, rice, vegetables and pulses. A good
variety of fast food items would be offered, which would include burgers,
sandwiches, French fries and other snacks. The food products will be prepared
keeping in mind all the hygienic standards so that the customers can have a
perfect dining out experience. All the necessity steps would be taken in order to
fully satisfy the customer’s needs and try to deliver such services to the
customers, which they really expect. During the busy summer months a special
summer menu would be offered which would include more variety in drinks.
Attractive offers would be introduced in order to promote the restaurant, such as
giving special discounts to those customers who dine in large numbers. This
would encourage people to come together in large numbers so that they can avail
the discounts and this will help to achieve economies of scale, and will help to
lower average fixed cost. Similarly in winter season when usually the business
gets down different deals would be offered, like buy two burgers get one free or
the prices of the food menu would be reduced by certain percentage in order to
attract the customers.

The kitchen staff will be hired according to the standards. Most importantly the
chefs will be hired according to the respective education in health and food.
Our detailed food menu is as follows:

Food Menu

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 Bar B.Q
Chicken Boti Boneless 6 seikh Rs 350
Chicken Tikka Rs 90

Chicken Seikh Kabab 6 pieces Rs 220

Chicken Boti Rs 220
Grilled Chicken Rs 220
Mutton Tikka Boneless 6 seikh Rs 680
Mutton Chomps 6 seikhs Rs 550
Mutton Tikka 6 seikhs Rs 400
Mutton Seikh kabab 6 seikhs Rs 280
Beef Seikh Kabab 6 seikhs Rs 160

Karhai
Chicken Karhai half/full Rs 210/400
Chicken Boneless half/full Rs 220/400
Qeema Karahi (Chicken) half/full Rs 220/400
Mutton Karhai half/full Rs 320/600
Qeema Karhai (Mutton) half/full Rs 360/700
Qeema Karahi (Beef) half/full Rs 220/400
Mutton Chomps half/full Rs 275/500
Mutton Boneless half/full Rs 450/850

Pakistani Handi
Chicken Qorma Rs 120
Chicken Jalfraizi Rs 160
Chicken Achar Gosht Rs 120
Mutton Qorma Rs 150
Mutton Achar Gosht Rs 150
Chicken Pasanday Rs 120
Beef pasanday Rs 120
Mutton Pasanday Rs 150
Chicken Koftay Rs 120
Mutton Koftay Rs 150
Beef Koftay Rs 120

Rice
Chicken biryani Rs 150
Mutton Biryani Rs 165
Chicken Fried Rice Rs 160
Vegetable Fried Rice Rs 130
Egg Fried Rice Rs 150
Mutton Pulao Rs 175
Chicken Pulao Rs 160

20
 Vegetables
Tori Rs 70
Tori Gosht Rs 100
Bhindi Rs 70
Bhindi Gosht Rs 100
Aaloo ke Bhujia Rs 70
Mixed Vegetable Rs 80
Arvi Gosht Rs 100

Daal Variety
Laal Masoor Gosht Rs 120
Kaali Masoor Rs 100
Moung Ke Daal Rs 100
Daal Channa Rs 100
Daal Channa Gosht Rs 120

Beverages
Soft Drink Rs 20
Lassi Rs 30
Apple Juice Rs 50
Grape Juice Rs 50
Guava Juice Rs 50
Carrot Juice Rs 50
Green Tea Rs 20
Black Tea Rs 20
Coffee Rs 60
Mineral Water Rs 30
Side Order
Raita Rs 30
Green Salad Rs 30
Kachumar Salad Rs 50
Russian Salad Rs 120
Roghni Naan Rs 10
Saada Naan Rs 5
Pateer Rs 5

3.3.2 Pricing and Profitability

The total sales would be solely generated by the restaurant operations. The direct
cost of sale would be 38% of the sales. The prices would be competitive as
compared to the other restaurants in that area and 90% of the menu rates would be
lower than the competitors in order to penetrate the market. The strategy would be
to give higher value to the customers as compared to what competitors are
offering through dedicated service by providing a complete dining experience
with an extra ordinary quality and taste of food. In the short term it is assumed

21
 that profitability would be low due to competitive pricing but in the long run it is
expected that the profitability would increase as the number of customer
increases.

3.4 Market Analysis Summary

Grace restaurant is proposed to be located in Blue Area, Islamabad, which is
considered to be one of the busiest places in Islamabad. The location selected
gives prime advantage and opportunities to generate a handsome business for the
restaurant. Residential areas of sector G are also in near reach of this location so
families and local residents within three to four mile radius will make up the bulk
of the dinner time traffic.

It is expected that the restaurant would have a steady growth after the 1 st year.
Further on many new office buildings are being constructed in Blue Area such as
Islamabad Stock Exchange Tower so we expect that there are good market
opportunities regarding the nature of our business. So it is a good opportunity to
open a restaurant in such a place where most of the companies are trying to open
their offices.

This place is also considered as one of the safest place in Pakistan. It’s because it
is in the capital city of Pakistan and it is near the Supreme Court and Prime
Minister’s secretariat, so the rate of crime in this area is relatively low as
compared to the other business areas of Pakistan.

3.4.1 Market Segmentation

The restaurant intends to cater to a wide group of people. Grace would offer a
wide and varied range of menu. It will be the strategy to have "something for
everyone" everyday on the menu. In looking at the market analysis, the following
groups are defined as targeted segments.

22
 The Working Class: These are the people who spend half of their day away from
home as they work all day long in their offices and sometimes they have to stay
overnight so they look for a nice place to relax in their break times so that they
can have nice meal to eat. They are the people that spend the most on drinks, food
and tips.

The Students: As it was mentioned in the business idea that the target market also
includes the students of different universities, which are located, near the
restaurant. So during the lunchtime it is expected to have handsome sales from the
students of universities, as they will get their lunch at a cheaper price as compared
to other restaurants in the area.

The Families: The good place for a family dinner would be provided. Families
will come for the variety in menu and friendly services. The excellent value in
their meals will keep them loyal towards the restaurant.

Local residents: Through aggressive advertisement good décor and layout, it is

believed that the local residents of the area of the twin cities would also be
attracted.

3.4.2 Competition
The major competition would be with few international franchise restaurants e.g.
MacDonald, KFC and Subway, which are located within the two-mile radius of
the restaurant’s location and there are also some Pakistani restaurants near the
restaurant.
It is expected to have a strong competition from them and it will be a real
challenge to take their market share.

As MacDonald, KFC and Subway are the type of restaurants which only
specialize in the fast food products like chicken burgers, nuggets, sandwiches and
they have canned and bottled beverages so definitely Grace would be having an

23
edge over them as its food menu offers a more wide range of food items which
gives people more options while dining out.

There are also some other restaurants in the area. There are disadvantages to have
a strong competition as well as advantages. Restaurants located near Grace
Location include Jehangir, Usmania, Lasania, Bar-BQ tonite, Haleem Ghar, Mr.
Cod, Dragon City, Savour Foods, Subway, Pizza hut and KFC. The number of
restaurants has made this area a well-known part of town for diners in the area.
But there are people who are tired of the franchise restaurants and would be glad
to see an alternative.

Unlike from the competition all of the food is made by the specialize chef. Grace
is proposed to have several Pakistani dishes, which separates the restaurant from
the major franchise competitors. The price remains slightly lower than the
primary competitors in order to attract more customers. Like all of the
competitors Grace will be opened seven days a week.

Following are the approximate number of restaurants and fast foods, which are
located within the 3 to 4 mile radius of our restaurant.

Name Type
Jehangir Dining
Usmania Dining
Lasania Dining
Bar-BQ Tonite Dining
Haleem Ghar Limited Dining
Mr. Cod Fast Food
Dragon City Fast Food
Savour Foods Limited Dining
Subway Fast Food
Pizza hut Fast Food
KFC Fast Food

24
3.4.3 Market Analysis Information
One percent of sales cost would be allocated to advertising which comes out to
be Rs. 160,600 for first year of the operations. For the first month Rs. 20,000
would be allocated which has already been stated in the start-up cost table earlier
because more advertising would be required at the opening stage of the restaurant.
It is believed that strong advertising would create awareness among the target
market and by telling them about the different offers and variety, they would be
attracted more towards the restaurant.

After first month, the advertising expense will relatively remain same for the
remaining months of the year which will be Rs. 14,600.

3.4.4 Market Research

In order to start any business it is always essential to gather basic data, which
would be helpful for the entrepreneurs to start successful business. Researchers
also initiated the project with the same approach and they started off with
gathering basic information, which has been useful for this project. The marketing
research was based on two stages; first stage involved the study about the
customers, which was done through surveys. These surveys were conducted from
those people who have been classified as the target market so that to have the data
about their basic information and their tastes and preferences and how are they
likely to respond to the proposed services. These surveys were used to gather data
regarding the demographics, tastes and preferences; spending patterns and their
feed back about how will they respond to a new service which would be different
from the existing dining options which are available to them currently.

Second stage of the marketing research included the determination of an ideal

location for the restaurant and how much budget would be required to set up the
restaurant. The ideal location was identified to reach the target market and attract
the customers to the restaurant. This stage involved the study of identifying

25
different locations for the restaurant and then selecting the most suitable one.
Then next step was to determine that what are the lease rates in the area and
whether will it be worth enough to invest in that particular location. Major
information, which was gathered through these stages, was about the following
facts:

I. Know your customer.

II. Identification of location.

III. Average lease rates in the area.

IV. Start up cost of the restaurant.

V. Labour cost of the restaurant.

VI. Average charges of restaurants in the area.

VII. Approximate number of people living or working per square meter.

VIII. Approximate number of students in the universities which are located with
in the nearby area.

IX. Information about the competitors who are also working.

X. Cost structure of a restaurant.

XI. Average monthly sales and profit of restaurant.

26
3.4.5 Opening day of restaurant
It is planned that the grand opening of the restaurant would be in the evening time
so that when people are off from their daily routine work they can easily
participate in the restaurant’s opening ceremony. On the opening day of the
restaurant it is expected that a large number of customers would come due to the
marketing which would be extensively done one week before the opening. At the
opening different attractive ways would be used to attract the customers to the
restaurant. The marketing sales plan is discussed in detail later in the report.

For the initial period of six months of the restaurant the prices would be very
competitive. In order to charge competitive price all the menus of the competitors
were thoroughly studies and after that, the prices were stated in the menu. The
same rates for lunch and dinner time that is Rs. 220 per person and afterwards the
rates of dinnertime will be expected to increase.

75% discounts would be offered on first day, on the second day 50% discount,
and on the third day 35% discounts would be offered.

The reason for the use of such strategy is to attract as many people as possible so
that they can get to know about the quality of the service and it is expected to give
them higher value in return to what they will pay in the first three days.

This strategy will help to cut the market share of the competitors and people will
be attracted to the restaurant. When high quality service would be provided to the
customers then they would definitely like to come again for a visit and they will
also carry a positive word of mouth for us.

The expected sales for the first day would be approximately Rs. 45,000 and after a
discount of seventy five percent, net sales would be approximately Rs. 12,000.
Similarly the same amount of sales is expected for the second day but the net
sales would be little better as the discount for the day will be 50%.

27
 The earning outlook for the first week doesn’t look very bright at first sight but
this strategy will help to make new customers and the things will quickly change
in the future. It is expected to get good response from the people working and
studying nearby because Grace Restaurant will be providing them with a wide
variety of menu and good quality of food.

Initially high amount of funds would be spent on the advertising expenditures as

to create awareness among the target market so the initial advertising cost is
expected to be on a higher side. As the time progresses the business will improve,
as it is expected a large percentage of the target market would be attracted so the
advertising expenditures would reduce and the profits would start to improve
significantly.

3.5 SWOT Analysis

3.5.1 External Environment Analysis

Interest Rates: Due to the economic slow down worldwide the world economies
are in deep depression and its affects are also being felt on the Pakistani economy.
For the past one and a half year Pakistan’s economy has been severely hit by high
oil prices resulting in rampant inflation with overall inflation of 22% and core
inflation of 18%. So in order to control the high inflation rates State Bank of
Pakistan has taken strict measures by tightening the monetary policy. As a result
discount rates have risen to 14% which has significantly increased the cost of
doing business in Pakistan and due to this business activities all over Pakistan
have been severely affected.

28
Credit Availability: Due to the high interest it is becoming difficult for public
limited companies and small and medium enterprises to take further loans at such
a high cost of borrowing. Banks in Pakistan are also facing extreme challenges in
maintaining their key capital ratios due to which they have very limited credit
available to them. As the business is in the SME category, so the only option is of
debt financing. It will be a great challenge to keep the sales high and cost low. It’s
also needed to be very care full about the financial progress for the years to come
because banks in Pakistan are becoming very conservative in providing advances
due to bad debts which they are realizing now a day due to the economic crisis.
So it is very important for us have to have good financial stability so that banks do
not hesitate to provide funds to us which we will require for future expansions and
current needs.

Inflation: Pakistan has severely hit by very high inflation rates for the past few
years. Inflation increases the overall prices of good which include raw material,
fuel, commodity goods etc. So when the prices of the raw material will increase
so eventually the prices of the services will also increase. Such effect would
produce a reduction in the sales as the purchasing power of the customer decrease
when there is a rise in inflation. So it is important to look for such ways, which
will help to reduce the costs and enables to compete in the market strongly.

Political Scenario: Political stability in Pakistan has been a great issue over the
years now. Political stability is one of the very important factors, which investors
look forward in a country before investing. Political stability provides trust to the
investors regarding the policies which include tax rates; subsidies etc. so if there
is consistency in the country’s political system then it has stable policies. So the
investor does not have the fear of uncertain future. Last year was quite turbulent
in Pakistan regarding the political system but things have improved now and
future looks relatively better.

Law and order Situation: Unfortunately the law and order situation in Pakistan
has significantly deteriorated due to the ongoing war against the extremist

29
 elements in the country. Many of the foreign investors have left the country and
locals are also being affected by the terrorism threats. People now-a- days are
avoiding to go out with out any purpose so it is expected to provide a safe and
secured place to the customers so that they do not feel unsecured when they are at
our restaurant.

Strong Competition: It is mentioned earlier that Grace restaurant would be

opened in Blue Area, so in that area there are already many restaurants due to the
advantages of the location. Currently there are around ten restaurants in the area.
There will be a strong competition from Jehangir, Lasania, Usamina and Bar BQ
Tonite as we lye in the same segment of the market. Due to this strategies are
developed, through which a lot of customers would be attracted. These strategies
would help to penetrate the market with strong presence and it will help to capture
the market share in large number.

3.5.2 SWOT
Following are the main strengths, weaknesses, opportunities and threats for our
restaurant.

Strengths
I. High quality of food offering and variety in the menu that exceeds
competitors’ offerings in quality and lower price.

II. Highly trained and customer friendly staff.

III. Good relationship with the suppliers who provide high quality ingredients
on time.

Weaknesses
I. No brand awareness.

II. Limited marketing budget.

30
 III. Low parking space.

Opportunities
I. Market for restaurants is growing at a very fast rate.

II. Increasing sales opportunities due to providing service at door step of

customers.

Threats
I. Competition is highly intense.

II. Political instability.

III. A slump in the economy of the country due to which less people are
spending money.

IV. High inflation rate in the country.

3.5.3 Strategy and Implementation Summary

The strategy is to succeed by giving people excellent quality of food and
attractive atmosphere to sit which will appeal to a wide and varied group of
successful people. Strong focus would be on maintaining quality and establishing
a strong identity in the community. The main focus in marketing will be to
increase customer awareness in the surrounding communities. The standards
would be kept high and execute the concept so that word-of-mouth will be our
main marketing force.

An appealing and entertaining environment would be created with unbeatable

quality at an exceptional price. Therefore, the execution of the concept is the
most critical element of the plan.

All menu items are moderately priced for the area. Initially low price would be
charged for the services so that people can get attracted. In this way customer
loyalty would be established. Gradually the prices would be increased while

31
 constantly studying the sales pattern that how people response to the change in
price. It would be observe that if still people value the service or not and then
accordingly the process would be adjusted. It is aimed that Grace restaurant to be
the value leader and will not compromise on the quality of the service by
continuously keeping the prices on the lower side.

3.5.4 Competitive Strategy

In order to create advantage over the competitors; it
is needed to follow the following competitive strategy

I. Differentiation
II. Product Identity.
III. High employee motivation.

IV. New and Innovative options for providing services.

V. Unique and wide range of menu.
VI. Reaching the customers at their door steps.

The menu would include both fast food items and Pakistani food, which will be
made with the freshest ingredients. The management and servers will handle
every detail to make the customers special evening even more special. Great
atmosphere would be provided which would make the customers to come back
again and again.

3.6 Marketing/Sales Plan

One week before the opening of restaurant, extensive marketing campaign of the
restaurant would be started. This would be done by printing brochures and
pamphlets. These would be distributed to the houses, offices and on signals all
around the surrounding areas through the help of paperboys. Other advertising
tools would be followed like newspapers and radio to reach maximum number of
people. After the opening of the restaurant free drinks for every meal would be

32
 offered in order to promote the restaurant. After the opening, newspaper
advertisement would be done on regular basis for a certain period of time in order
to attract local residents of the area. Brochures, pamphlets, fliers and menus
would be distributed to the local businesses and in all the surrounding offices of
the area.

It is also planned to offer a free dinner to someone celebrating a birthday with the
purchase of another dinner of equal or greater value. Special discounts would be
offered on gatherings and parties where large number of people would be
encouraged to come together. It is believed that by doing such promotion
activities awareness of the restaurant among the customers would increase and
will help to generate more returns on the business.

Another promotion activity that would be used is to arrange the seminars in the
premises of the universities in order to create awareness among the students of the
universities about the new restaurant opening their area. Fliers will be distributed
among the universities. Awareness regarding how important is the hygienic food
would be created and let them know how food is prepared through camera
briefing and video clips so that they can know that whatever said is also put in
practice.

3.6.1 Strategy Choice

In order to enter in to the market, market penetration strategy would be used,
which is to offer a high quality service at a low price as compared to our
customers so a large bulk of customers would be attracted because the market for
the restaurant already exists and there are quite a number of competitors. So
entering the market with a quite handsome range of food menu and try to attract
the competitor’s customers by the good quality of services would be a good
strategy in order to increase the market share.
3.6.2 Advertising Strategy
In order to attract the customers the following advertising media would be used.

I. Direct mail.

33
 II. Electronic media.

III. Brochures.

IV. Pamphlets

V. Newspapers.

3.6.3 Long term adjustments/options

The long-term adjustments would be catering to the offices and different people
would be hired for the direct marketing of the services.

Similarly the restaurant would be differentiated from other competitors by

offering new and innovative food products. The price level would be increased
while improving the quality of the services so that the quality remains of good
standard and in this way level of customers would be maintained. This would help
to increase the returns on investment.

3.6.4 Sales Strategy

The sales plan is basically to establish and maintain good position with the local
customers. The strategy is to build more customers in order to increase revenue.
For our restaurant positive word of mouth from the customers is the best
promotion strategy and for this particular purpose high discounts would be
initiated for the first three days of the restaurant’s operation so that high number
of customers is attracted to the restaurant. It is expected that providing them with
a high quality of service would satisfy the customers. Through this they will carry
a positive word of mouth for the restaurant, which will help to bring in more
customers in the future. For food services the strategy is to have experienced staff
that knows how to make the best food so that the customers can have a complete
dining experience.

34
 Feed back method would be used in order to check customer’s preferences. Such
feedback helps to analyse that whether customers are satisfied or not and what
changes they would like to have. So this method is effective for the continuous
improvement of the restaurant

3.6.5 Sales Forecast

Monthly restaurant gross sales will average to16,060,000. That is 80 people daily
spending Rs. 220 per person at lunch time and at dinner time 100 people spending
Rs. 220 per person. And in order to meet the target it would require taking orders
from at least 20 people daily that would be willing to spend Rs. 220 per person.
The total cost of goods sold will be 38% of the total sales. But we expect to have
increase in sales after year 1 by 10%.

Year 1 Year 2 Year 3

Total Sales 16,060,000 17,666,000 19,432,600
Direct cost 6,102,800 6,713,080 7,384,388
of Sales

Monthly Sales

1,400,000
1,200,000

1,000,000
800,000

600,000 Monthly Sales

400,000

200,000
-
January March May July September November

35
 Yearly Sales

20,000,000
15,000,000

10,000,000 Yearly Sales

5,000,000

-
Year 1 Year 2 Year 3

3.7 Management Summary

The right number of staff in any business is the key success for management of
that business. Higher number of employees can result into job duplication and low
profitability. Similarly low number of employees will result into inefficient
service and low productivity. So it is important to determine the optimal number
of employees needed in the restaurant to provide an efficient service, which will
result into high productivity and high profitability. Therefore we have decided to
have 22 employees for the restaurant.

The staffs includes:

The Front Staff: The main purpose of the front manager is to take care of
advertising, waiters and ordering for service. He will also take care of the service
and will make sure that the customers should not have any complain about the
service of our restaurant and make sure the restaurant is in excellent shape. Ten
waiters will also be working under the front manager.

Kitchen Staff: The head chef will supervise the kitchen staff. Under the head chef
eight cooks, two workers for cleaning and washing will be working. The main
purpose of the head chef is to check that the food should be of good quality and
also to ensure that health and safety measures are in accordance for the restaurant
standards.

36
3.7.1 Personal Plan
Management Salary

No. of Monthly Salary Total Expense per Yearly

Staff month Expense

Hotel 1 40,000 40,000 480,000

Manager

Waiters 10 5,000 50,000 600,000

Cleaning and 2 7,500 15,000 180,000

Washing

Head Chef 1 20,000 20,000 240,000

Cook 8 10,000 80,000 960,000

205,000 2,460,000

Management salary per month: Rs. 205,000

Management salary per year: Rs. 2,460,000
Management salary will be increased by 5% per annum.

3.8 Financial Plan

The total of Rs. 6,000,000 funding is required for
running the restaurant. It includes furniture, kitchen
equipments and all the start-up requirements.

In order to complete the financial plan the following

assumptions were considered.
Advertising costs will be 1%
Variable costs 38%
Tax rate 35%
Interest rate 18%

37
Breakeven Analysis:
Annual Fixed costs are:
Rent 1,500,000
Licences cost (Ministry of tourism) 15,000
Insurance (EFU General Insurance) 120,000
Phone, Gas and Electricity bills (Industry Average)
2,400,000
Management salaries 2,460,000

Total annual fixed costs: Rs. 6,495,000

Total annual sales: Rs. 16,060,000
Estimated monthly sales: Rs. 1,338,333
Breakeven Analysis: Fixed Cost / (Selling price per unit –
Variable cost per unit)
: 6,495,000 / (220 – 83.6)
: 6,495,000 / 136.4
: 47,617 Units
: 47,617 * 220 = 10,475,740
Hence, in order to reach a breakeven point, sales of Rs.
10,475,740 have to be generated.

3.8.1 Projected profit and loss statement:

Year 1 Year 2 Year 3
Sales 16,060,000 17,666,000 19,432,600
Direct cost of Sales 6,102,800 6,713,080 7,384,388

Gross Margin 9,957,200 10,952,920 12,048,212

Expenses
Management Salaries 2,460,000 2,583,000 2,712,150
Rent 1,500,000 1,500,000 1,500,000
Insurnace 120,000 120,000 120,000
Advertising 160,600 176,660 194,326
License 15,000 5,000 5,000
Gas and Electricity Bill 2,160,000 2,376,000 2,613,600
Phone Bill 240,000 240,000 240,000

38
Total Operating Expenses 6,655,600 7,000,660 7,385,076

Profit before interest 3,301,600 3,952,260 4,663,136

and taxes
Interest expense 650,000 650,000 650,000

Profit before taxes 2,651,600 3,302,260 4,013,136

Tax 35% 928,060 1,155,791 1,404,598

Net Profit 1,723,540 2,146,469 2,608,538

Yearly Sales

20,000,000
15,000,000
10,000,000 Yearly Sales
5,000,000
-
Year 1 Year 2 Year 3

Yearly Profit

3,000,000

2,000,000
Yearly Profit
1,000,000

0
1 2 3

39
4.0 Risk Analysis
There are a number of risks involved in running a restaurant and which can
influence the restaurant in many ways. The expected potential risk for the
restaurant is from the organization and the risk which already exists in the
environment.

Internal Risk: The risk within the restaurant could be the turnover of the
employees and the risk that customer might not like the food.

Failure to acceptance: Another important problem is

that after the launch and promotional activities people
might not accept the service from such a restaurant
which does not have any brand name as it is hard to
convince people to buy a service which is new to the
market.

Competition with direct competitors: A potential

problem predicted is related to competition. As it was
identified earlier that stiff competition exists in
that area as there are already many restaurants in that
area. It could be possible that competitors quickly
adopt the services, which Grace would be offering, and
change accordingly to compete in the market. It is one
of the major risks because they would be in a better

40
 position to do so as they have established brand names
and loyal customers. Good financial strength of the
competitors will help them to compete strongly in the
pricing strategy, which might affect the business.

Disease outbreak: A very important issue is related to

disease outbreak. Whenever bird flu or mad cow disease
outbreaks in these cattle, people try to avoid their
meat. This results in losses for the entire industry’s
participants. This problem is unavoidable as there is
no solution for such diseases and rumors about such
disease. Till yet there has been no case of death by
bird flu seen in humans but still whenever rumor of
bird flu breaks the sales of chicken declines
drastically. Not only the meat providers but also the
entire food industry suffers from this particular
issue.

5.0 Contingency plans

Awareness: If the target market remains unaware even
after the action plan of promotion, a team would be
established which would go to the door steps of the
identified target market, tell people about the new
services and convince them to try the services of the
restaurant. More Pamphlets, brochures, newspaper adds
would be distributed and given in the near by
surroundings and people will be assured of giving good
quality and service for their convenience.

Competition with direct competitors: in case if the

competitors also try to address our target market by
offering the same discounts which would lead the

41
 restaurant to face a high level of competition. so as a
counter strategy membership cards would be offered to
the customers and more discounts would be offered to
the customers.

Over expected demand: If the demand grew suddenly to a

level, which will be uncontrollable, then the
enterprise will hire more expertise and enhance the
staff. It has planned to lease more space for the
restaurant as there is more space available next to the
restaurant which is of the same owner so that to cater
more customers and meet the increasing demand in an
efficient way so that the customers do not face any
frustration while buying the service and do not have to
wait for long to have their dine out time at our
restaurant.

Annexure

Survey Questionnaires

For General Public and Students

1. What is your gender?

a. Male
b. Female

2. In which of the following age group do you lie?

a. 15 – 20
b. 20 – 35
c. 36 – 45
d. Above 45

3. What is your income level?

a. 15k – 25k
b. 25k – 35k

42
 c. 35k – 45k
d. 45k+

4. How often do you dine-out?

a. Once a week
b. Once in 2 weeks
c. Once a month

5. Which time do you prefer for dine-out?

a. Afternoon
b. Evening
c. Night

6. What cuisine do you prefer while dining-out?

a. Pakistani cuisine
b. Fast food
c. Chinese
d. Italian

7. Rank the importance in choosing a restaurant while

dining-out?
a. Location
b. Price / value
c. Taste of food
d. Cleanliness

8. What do you look for in a good restaurant?

a. Ambience
b. Quality of food
c. Efficiency of service
d. Cleanliness

9. Would you be willing to try a new restaurant with

competitive rates and a good variety of menu?
a. Yes

43
 b. No
c. I don’t know

10. If you’re offered a good variety of vegetable menu,

will it attract you more?
a. Yes
b. No
c. I don’t know

11. How much would you prefer to spend on a meal / person?

a. Rs. 150
b. Rs. 250
c. Rs. 350
d. Above 350

44
 For Employees

1. What is your gender?

a. Male
b. Female

2. In which of the following age group do you lie?

a. 20 – 35
b. 36 – 45
c. 46 – 60

3. What is your monthly income?

a. 15k – 25k
b. 25k – 35k
c. 35k – 45k
d. 45k+

4. Do you eat lunch during working days?

a. Yes
b. No

5. Do you bring lunch from home or eat out?

a. From home
b. Eat out

6. Which of the following aspects of hotel is more

important to you?
a. Location
b. Price / value
c. Taste of food
d. Cleanliness

45
7. How much would you prefer to spend on a meal / person?
a. Rs. 150
b. Rs. 250
c. Rs. 350
d. Above 350

8. Which time-slot suits you to go out for lunch?

a. 12:30pm to 1:30pm
b. 1:30pm to 2:30pm
c. 2:30pm to 3:30pm

9. What type of restaurant do you prefer for lunch?

a. Pakistani cuisine
b. Fast food
c. Chinese
d. Italian

10. Would you be willing to try a new restaurant with

competitive rates and a good variety of menu?
a. Yes
b. No
c. I don’t know

11. If you’re offered a good variety of vegetable

menu, will it attract you more?
a. Yes
b. No
c. I don’t know

46
12. If you’re offered meal as hygienic as your home
made meal, would you buy our services on regular basis?
a. Yes
b. No
c. I don’t know

47
 Bibliography

1. Searching for: Restaurant menu trends

Accessed on: March 20, 2009

Available at: http://www.restaurantnewsresource.com/HNR-

category-category-Trends.html

2. Searching for: Trends in the restaurant industry

Accessed on: March 25, 2009

Available at: http://www.myhalo.com/ restaurant/

Resource_Center/Restaurant_Tips/restaurant_trends/

3. Searching for: Hotels and Restaurants Law

Accessed on: April 1st, 2009

Available at: http://www.amlaw.pk/pakistan-law-site-services-practice-areas-law-

of-pakistan/pakistan-hotels-restaurants-law-hotel-management-chinese-italian-list-

course-guid/

4. Searching for: Is owning a restaurant right for you?

Accessed on: April 1st, 2009

Available at: http://restaurants.about.com/od/

peningarestaurant/a/own_restaurant.htm

48
5. Searching for: Restaurant Industry

Accessed on: April 10th, 2009

Available at: http://www.zacks.com/stock/news/16571/ Restaurant+Industry

6. Searching for: Starting a restaurant business

Accessed on: April 15th, 2009

Available at: http://www.awib.org/content_frames/ articles/restaurant.html

7. Searching for: Restaurant Industry trends in 2008

Accessed on: April 25th, 2009

Available at: http://www.fastupfront.com/business-

articles/restaurantsfoodservice/restaurant-industry-trends-for-2008

49
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