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LITTLE TRIANGLE RESTAURANT BUSINESS PROPOSAL

1.0

INTRODUCTION

Ms. Abaho Flora plans to open a small-medium-sized professional


Ugandan-cuisine restaurant next to Post Bank Uganda Nkrumah Road
Branch. This triangular space belonging to Uganda Post Bank Uganda
Limited is currently unutilized and actually abuts on Bussel Road that
connects Nkrumah Road to Kampala Road. The concept is to design and put
up a small-medium-sized western-style restaurant with a capacity of serving
about 30 guests and serving mostly soft drinks, hot beverages like coffee,
light meals and snacks, and outside catering etc. The restaurant will meet
the great market demand.
This plot or space is ideal for such a type of restaurant facility because it lies
right in the heart of Kampalas Central Business District (CBD) that has many
types of businesses operating in the area including printeries, houses many
important government administrative centres and civic buildings, and is also
a busy transit area for all manner of travelers, tourists, trades people, white
collar workers and corporate executives, students, and other members of the
general public on a daily basis. Ms. Abaho Flora seizes this opportunity and
plans to set up such a professional restaurant at this location to be known as
Little Triangle Restaurant.
The potential customers of the restaurant consist of Post Bank Uganda
staff and customers, individual business travelers, managers from various
services companies in the Kampala CBD area, customers or clients of
companies, people who want to hold business gatherings or parties, white
collars, family customers, young couples & lovers, and individual walk-in
guests.
The total budget of this plan is about UGShs. 110 million. Ms. Abaho
Flora will raise about UShs 110,000,000 from her own savings resources
to rent the place, re-design and build the proposed restaurant, purchase new
furniture and equipment, and offer new services. It will be a professional
restaurant. It will surely satisfy the customers needs, increase the revenue
and profit, and improve the financial statements. The restaurant will occupy
an area of about 75-80 square meters, which can serve 30 guests on
weekdays and up to 45 guests at the weekends or on special occasions. So
the management needs to hire about 6 employees for such a small-mediumsized place.
It is expected that the restaurant can run successfully because Ms. Abaho
Flora has done much preparatory work on the feasibility and necessity of
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LITTLE TRIANGLE RESTAURANT BUSINESS PROPOSAL


opening such a restaurant, including collecting customer profiles, carrying
out customer surveys, analyzing the present market situation, and consulting
some experts and consultant groups.
It is estimated that the restaurant will bring great profit: the goal of the first
fiscal year is to make a profit of UGShs 40,000,000, and get all the
investment returned within 2.0 years from the opening. (Detailed analysis is
provided in Appendix 4: Project Objective on page 14.)
2.0

PROPOSAL

Opening a fast-food & drinks restaurant in this high population flow area of
central Kampala will be workable and profitable, because there are
appropriate crowds of consumption and the huge development space in this
area.
3.0

4.0

MISSION
To establish a presence as a successful local fast food and drinks
outlets and gain a market share in central Kampala's fast food industry.
To make Little Triangle Restaurant a destination spot for Post Bank
Uganda-goers.
Our concept will combine variety, ambiance, entertainment and a
superior staff to create a sense of 'place' in order to reach our goal of
overall value in the dining/entertainment experience. We offer fair
profits for the owners and investors, and a rewarding place to work for
the employees.
OBJECTIVES

Our main goal is to become one of the most successful fast food and
drinks outlets in central Kampala.

Little Triangle Restaurant will strive to be a premier local fast foods


and drinks brand in the local marketplace. We want our customers to
have the total experience when visiting our outlet as they will learn
about this fascinating new "pop culture."

Little Triangle Restaurant also aims to function as an optimal-sized,


unique restaurant with eclectic food and service.
Little Triangle Restaurant aims to achieve a profitable investment

LITTLE TRIANGLE RESTAURANT BUSINESS PROPOSAL


return.

5.0

Our main focus will be serving high-quality foods and drinks at a great
value.

KEYS TO SUCCESS

To succeed in this business we must:

6.0

Create a unique, innovative, entertaining menu that will differentiate


us from the rest of the competition.
Control costs at all times, in all areas and implement a conservative
approach to growth policy. Although, we provide more than enough
fund to open more than one outlet, we want to be on the safe side of
the business.
Sell the products that are of the highest quality, as well as keeping the
customers happy with all of our product categories from food to soft
drinks and hot beverages.
Provide 100% satisfaction to our customers and maintaining the level
of excellent services among other competitors.
Encourage the two most important values in fast foods and drinks
business: brand and image, as these two ingredients are a couple of
main drivers in marketing communications.
Get access to high-traffic shopping malls near the target market.
Promote good values of company culture and business philosophy.
STRENGTHS

The strengths of the proposed Little Triangle Restaurant will be as


follows:
The project proprietor Ms. Abaho Flora has five years of operating
and management experience in the catering industry, and she is
proficient in the management of staff.
The geographical position is superior, and the population flow in this
area is quite big.
In the proposed Little Triangle Restaurant, there will be various
types of light meals and snacks as well as juices, soft drinks and hot
beverages which will be of high quality and also pocket-friendly that is
suitable for mass consumption.
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LITTLE TRIANGLE RESTAURANT BUSINESS PROPOSAL


7.0

NEW PREMISES

The proposed Little Triangle Restaurant will be located on the present


Uganda Post Banks annexe whose location coordinates are on Plot 4/6
Nkrumah Road but actually being more on the Bussel Road side of the plot.
It is in one of the busiest business districts in central Kampala. It occupies an
area of about 75-80 square meters with a capacity of serving 30 guests on
weekdays. It will be one of the best Ugandan eats and drinks restaurants in
central Kampala. Its characteristics will be as follows:
The aisles will be wide enough, so that customers will not disturb each
other, when they are walking along the aisles.
Between the seats have enough space to ensure that customers feel
comfortable, when they are dining.
There is a beautiful, health, and leisure environment dining area.
The decoration will be of first-class, modern western style design.
The lighting and ventilation will be inimitable and attractive.
We need to arrange the regular training to the staffs and teach them how
to give the best service to the customers.
8.0

NEW SERVICES

The Little Triangle Restaurant will offer high quality services based on
customer requests and suggestions. The preliminary services are as follows.
The western-style restaurant will provide varieties of original Ugandan
cuisines. The main emphasis on the restaurants menu will be placed on
serving soft drinks and various fruit juices. Ala Carte selection will be
available for lunch, dinner and supper. Coffee & tea will be served in
mornings, afternoons & evenings. Buffet dinner will be available on
Saturdays, Sundays and public holidays. Supplementary service will
include outside catering.
The prices that the Little Triangle Restaurant offers will be of medium
level.
The Little Triangle Restaurant will provide the existing and potential
key guests with membership cards with a 5% discount.
Coupons at UGShs 5,000 (valid within one month) will be given out for
every UGShs 50,000 consumption.
Small gifts will be presented to those who hold their birthday parties in
our restaurant.
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LITTLE TRIANGLE RESTAURANT BUSINESS PROPOSAL


Little Triangle Restaurant will purchase its raw material from the most
reliable suppliers and make sure the good quality of its fruit juices and
meals, and be open our material specifications to the customers.

We will keep in touch with clients, and accept their advice gratefully, and let
them feel at home.
Little Triangle Restaurant will be opening from 8:30 AM to 9:30 PM.
Little Triangle Restaurant can develop the new cuisines according to the
customers requirement.

9.0

NEW FACILITIES

The Little Triangle Restaurant will be equipped with comfortable and


fashionable desks, chairs, beautiful tableware and new equipment including
a full set of latest western kitchen stoves and various kitchenware, two large
refrigerators, a set of central air-conditioners and a set of sound system (HiFi).
10.0 RISK ANALYSIS
Before putting the plan into practice, the management finds three kinds of
risk, people-related, time-related and product-related, which might affect the
successful completion of the project. The analysis is described in details in
the appendix report. Regarding each risk, the backup steps or precautionary
actions are also stipulated accordingly.
11.0 COST BREAKDOWN
Building & Decoration: The purchase of building material, labor costs, and
expense of design would be UGShs. 65,000,000
1. Building Costs

50,000,000

2. Design Costs

500,000

3. Labor Costs

3,000,000

4. Windows

1,800,000

5. Ceiling

2,000,000

6. Painting

2,000,000

7. Cement & Putty

400,000

8. Lighting

3,000,000

9. Lumber

2,000,000
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LITTLE TRIANGLE RESTAURANT BUSINESS PROPOSAL


10.

Glue & Tools

300,000

Equipments: The estimated cost of equipments in the restaurant would be


UGShs. 15,000, 000
3,000,0
1. Kitchen stoves
00
1,000,0
2. Refrigerators
00
1,200,0
3. Kitchenware
00
3,000,0
4. Restaurant furniture
00
1,000,0
5. Painting & curtains
00
500,00
6. Cash register, computer & printer
0
2,800,0
7. Air conditioners
00
8. Office
furniture
(including 1,500,0
armchairs)
00
150,00
9. Photocopier
0
500,00
10.
Office computer & printer
0
300,00
11.
Stationery
0
Operating Budget: The annual operating budget would be UGShs.
10,000,000
4,000,000.0
1. Wages
0
3,150,000.0
2. Utilities
0
3. Equipment Maintenance

250,000.00

4. Advertisement

800,000.00

5. Consultancy

300,000.00

6. Public relations

1,000,000.0
0

7. Staff training

500,000.00

LITTLE TRIANGLE RESTAURANT BUSINESS PROPOSAL


The Little Triangle Restaurant will require an initial capital investment of
UGShs 80,000,000 to build, equip and operate the restaurant at the
proposed site. This amount of funding will be raised by its principal project
promoter Ms. Abaho Flora.
Current capital: UGShs 20,000,000 of current capital will be used to run the
restaurant such as purchasing daily food and covering miscellaneous costs
etc.
TOTAL COST OF PROJECT
Initial costs:

Recurrent
costs:

65,000,000.
1. Building & Decoration 00
15,000,000.
2. Equipment
00
80,000,000
SUB-TOTAL
.00
10,000,000.
1. Operating budget
00
20,000,000.
2. Floating capital
00
30,000,000
SUB-TOTAL
.00
110,000,00
TOTAL COST
0.00

12.0 BENEFITS
12.1 Location Advantages

Being close to the bank provides a proximal eats and drinks facility
that the Post Bank Uganda staff can easily and readily access at any
time during the weeks work days
Having the Little Triangle Restaurant just next door to Post Bank
Uganda cuts down on time and cost involved in ordering for meals and
refreshments from more distant restaurants.
Location is also quite convenient for Post Bank Uganda customers in
need of fast foods and drinks refreshments.
Current idle space is utilized to generate an additional side income for
the Uganda Post Bank through the regular payment of ground rental
fees by the Little Triangle Restaurant.
12.2 Investment Benefits
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LITTLE TRIANGLE RESTAURANT BUSINESS PROPOSAL


The business promoter of Little Triangle Restaurant has made a thorough
estimation and analysis of the initial costs, recurrent costs and total income
of the business. It is estimated that the restaurant will make a good profit:
the revenue of the first fiscal year is to make about UGShs 120,000,000 and
get all the investment returned within 2.0 years since opening.
Of course, all of these depend on the expected amount of customers, the
service and the restaurant management. Due to the previous market
investigation, customer surveys and results of the focus group meetings, the
business promoter of Little Triangle Restaurant strongly believes that
opening such a soft drinks, hot beverages and light meals/snacks restaurant
is a feasible and profitable project.
13.0 SCHEDULE
The project will be started one week after it is approved and the budget is
made available. It will take about 22 weeks to carry out the whole project.
The detailed procedures are as below:
The project will begin one week after it is approved and the budget is made
available. It will take approximately two months and a half to be fulfilled. We
will spend two weeks signing contracts and applying business license,
fourteen weeks to design, build and model the restaurant, less than three
weeks to recruiting and training the staffs, and the last week keep all things
in order and hold an opening ceremony.
The action schedule for the project is as follows. We will monitor all the
activities and make sure they would be finished on time. So that the project
could be implemented as we expect.
By the end of Week One:
Negotiate the reasonable rental of the site, and sign the contract.
By the end of Week Two:
Apply for individual business license from Kampala Capital City Authority
(KCCA).
Apply for tax registration from the URA.
By

the end of Week Fifteen:


Design the restaurant layout.
Build the restaurant.
Decorate the restaurant.
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LITTLE TRIANGLE RESTAURANT BUSINESS PROPOSAL


Order new equipment and furniture
By the end of Week Sixteen:
Start decorating the restaurant.
Make the regulation system of employee.
By the end of Week Seventeen:
Decide on the range of diets for retail and procurement channel details.
By the end of Week Eighteen:
Start training new staff.
By the end of Week Nineteen:
Order new materials based on the decision made.
Check and accept the decorating project.
By the end of Week Twenty:
Get the new equipment and furniture delivered and installed.
Clean the new restaurant.
By the end of Week Twenty One:
Get the new stock delivered and keeping properly.
Publicize the new fast-food restaurant opening to those will-being
customers.
By the end of Week Twenty Two:
Open the restaurant.
We strongly believe that this project will be profitable, not only because of
our rich experience in food, but also because of the strong market demand.
14.0 CONCLUSION
Hence, I strongly deem the proposed Little Triangle Restaurant is able to
provide adequate quality of culinary diets and high-class service to
customers. More importantly, we uphold the principle of good reputation as
being the lifeblood of business. We have full confidence that we will win the
favour of the customers at the Post Bank Uganda Nkrumah Road
location.

LITTLE TRIANGLE RESTAURANT BUSINESS PROPOSAL


There is no decent fast-food and drinks restaurant around here as yet. A wellequipped fast-foods and drinks restaurant like ours would attract customers
around this area. This business proposal has been written after having
conducted a detailed survey and careful consideration of other operating
factors within the business environment. We are sure that it will be
implemented smoothly and it will be a big success.
The proposal is reliable, practicable and considerable. I sincerely hope you
consider our business proposal to set up shop. I hope we could have a
meeting and discuss this plan in detail as soon as possible, and I will be very
happy to provide any information that you may still want to know. Please
contact me whenever you are available.

APPENDICES
Appendix 1: Analysis of the Business
The proposed Little Triangle Restaurant will be located on the present
Uganda Post Banks annexe whose location coordinates are on Plot 4/6
Nkrumah Road but actually being more on the Bussel Road side of the plot.
It is in one of the busiest business districts in central Kampala. In this area,
there are many white collar employees and small- and medium-sized
business workers, who want to have considerable meals, though there is no
decent fast-food restaurant around here.
There are several restaurants in the central Kampala Central Business
District (CBD) which focus on the rich man, and they ignore most of the
working class and white collars. So our fast-food and drinks restaurant offers
enormous business opportunities.
However, our new fast-food and drinks restaurant will be a new restaurant
and lock of reputation, we can draw the new customer's attention with
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LITTLE TRIANGLE RESTAURANT BUSINESS PROPOSAL


reasonable prices, good quality meals and drinks, and after-sales service,
and we can try our very best to create a good relationship as soon as
possible.
Current Business Analysis
Ms. Abaho Flora plans to open a medium-sized professional Ugandanthemed restaurant at the Post Bank Uganda annexe space with a capacity
of serving 30 guests, providing a perfect original Ugandan cuisine including
Ala Carte, buffet, soft drinks and juices, coffee and tea, and outside catering,
etc. The proposed Little Triangle Restaurant will be located on the annexe
space of Post Bank Uganda at Plot 4/6 Nkrumah Road. It is one of the
busiest business districts in the central Kampala area. The restaurant will
meet the great market demand.
Kampalas Central Business District (CBD) has many types of businesses
operating in the area including printeries, houses many important
government administrative centres and civic buildings, and is also a busy
transit area for all manner of travelers, tourists, trades people, white collar
workers and corporate executives, students, and other members of the
general public on a daily basis. There are more than 10,000 white collar
workers and business people working in the Kampala Central Business
District area every day.
Currently there are a handful of Ugandan-cuisine restaurants in the central
Kampala CBD area. Most of the white collars, corporate executives, and
business people operating around Nkrumah Road and Nasser Road to these
restaurants complain about that they couldnt find a professional Ugandancuisine restaurant in the central Kampala CBD area that offers the right
combination of Ugandan-style meals and soft drinks and hot beverages in
one spot, and have to move to more distant locations in Kampala to find one.
So, opening a professional Ugandan-cuisine restaurant that offers the right
mix of meals, soft drinks and hot beverages will meet the great market
demand.
It is a profitable project to open a medium-sized professional Ugandanthemed restaurant in the area of Nkrumah Road with a capacity of 30 guests,
providing a perfect combination of different Ugandan cuisines and
refreshment drinks. So Ala Carte selection will be available for lunch, dinner
and supper. Buffet dinner is also available on Saturdays, Sundays and on
public holidays. Coffee & tea are served in afternoons & evenings.
Supplementary service should include outside catering.
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LITTLE TRIANGLE RESTAURANT BUSINESS PROPOSAL


Financial Budget
The total investment of the project is UGShs
down into the following four aspects:
Restaurant decoration & furniture:
Equipment & facilities:
Operating budget:
Current capital:

110,000,000, mainly breaking


UGShs 65,000,000
UGShs 15,000,000
UGShs 10,000,000
UGShs 20,000,000

This capital investment will all be raised from the financial resources and
savings of Ms. Abaho Flora:
Through a thorough customer survey and a market research, we forecast
that the revenue in the first fiscal year will be about UGShs 120,000,000.
And the profit in the first year can reach UGShs 40,000,000. It is estimated
that the investment can be returned in 2.0 years.

Appendix 2: Customer Profiles

Customer Profiles
1. Businessmen
Frequent business travelers transiting through the central Kampala CBD
Managers, customers and clients of Post Bank Uganda Nkrumah
Road Branch
Managers, customers and clients of other companies in the neighbourhood
Guests who want to hold business gatherings
2. White collars & corporate guests
3. Family customers
4. Young couples & lovers
5. Other guests
Individual guests who want to hold private gatherings
Individual guests who want to hold birthday parties
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LITTLE TRIANGLE RESTAURANT BUSINESS PROPOSAL


Our main customers are the business personnel and Post Bank Uganda
customers, so we will improve the Ugandan cuisine and refreshments service
to meet their needs.

Appendix 3: SWOT Analysis


Strengths:

The restaurant will be the newest and most professional Ugandanthemed restaurant around the Nkrumah-Bussel Road T-junction.
The western restaurant has a capacity of up to 30 people.
The restaurant will provide a perfect combination of different Ugandan
cuisines.
Seasonal cuisines promotion and chefs recommendation will be served
weekly.
The decoration, furniture, lighting, and ventilation will be of first class.
All the restaurants menu cards will be printed in English.
Weaknesses:

It takes time to train new waiters to be capable waiters.


It takes time to fine the persons who have professional management
knowledge and experience.
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LITTLE TRIANGLE RESTAURANT BUSINESS PROPOSAL


It takes time for the different level management staff to communicate
and coordinate.
It requires time to develop frequent guests.
Opportunities:

There is a high traffic flow of business people, white collars, corporate


workers traversing between Kampala Road and Nkrumah Road where
the restaurant will be located.
The proposed restaurant will be located in the city centre, the traffic is
very convenient.
The Post Bank Uganda Nkrumah Road Branch staff and the banks daily
customers provide a good potential market.
The many printing industry workers on Nkrumah Road and Nasser Road
and the stationery dealers with numerous shops in the same area will
also contribute to the business development and growth of the Little
Triangle Restaurant. More and more white collars in these
companies prefer Ugandan culture and Ugandan food and drinks.
Threats:

Competition from local counterparts in the neighbourhood is fierce.


Other new Ugandan-themed restaurant may be opened and similar
services will be offered.
It may require time and money to develop relationships with related
governmental administrations in the central Kampala CBD area.
Food prices are rising rapidly recently.
Appendix 4: Project Objective
Objectives
The general objective of opening this Ugandan-themed restaurant is to make
a profit by focusing on the market demand. Meanwhile, our proposed Little
Triangle Restaurant will be the best Ugandan-themed restaurant serving
original Ugandan-cuisine food and a variety of soft drinks and hot beverages
in the central Kampala CBD area. According to the timetable, the restaurant
will formally open by the end of April 2016.
Ms. Abaho Flora is the principal project promoter of the proposed Little
Triangle Restaurant. The objective of the business proposal is to solicit to
be granted to utilize the triangular-shaped annexe space next to the Post
Bank Uganda Nkrumah Road Branch for putting up and operating the
restaurant.
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LITTLE TRIANGLE RESTAURANT BUSINESS PROPOSAL


It is estimated that the restaurant will bring great profit: the goal of the first
year is to make a profit of UGShs 40,000,000 and get all the investment
return within 2.0 years since opening.
The precise location of this place is Plot 4/6 Nkrumah Road of the T-junction
of Nkrumah Road and Bussel Road.

Average Daily Revenue Forecast List


No.

Items

Lunch

Dinner

3
4

Supper
Coffee
Others

Average
Expense per
PAX (UGShs)

Revenue
(UGShs)

60%

5,000

90,000

80%

7,000

147,000

40%

4,000

48,000

3,000

45,000

Capacities
(PAX)

Occupan
cy

30
30
30
& 30

50%

Average Total Daily Revenue

330,000

Reduc
e:

132,000

Daily Food Cost (40%)

Electrical Power, Gas, and Water

Average Daily Profit

23,882
174,118

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LITTLE TRIANGLE RESTAURANT BUSINESS PROPOSAL


Average Monthly Gross Profit
Reduc
e:

5,223,553

Monthly Salary

759,868

Monthly Operating Tax


Other Monthly Operating Fee
Average Monthly Profit
Yearly Profit
Reduc
1
e:
2

268,125
43,421
4,152,138
49,825,658

Restaurant Income Tax

8,808,069

Advertisement Budget

301,342

Staffs Training

108,553

Public relations

151,974

Contingency allowance

Yearly Net Profit

499,776
39,955,944

Appendix 5: Action Plan


It will take twenty-two months to implement the project when it has been
approved. The following is the action plan:
By the end of Week One:
Negotiate the reasonable rental of the site, and sign the contract.
By the end of Week Two:
Apply for individual business license from Kampala Capital City Authority
(KCCA).
Apply for tax registration from the URA.
By the end of Week Fifteen:
Design the restaurant layout.
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LITTLE TRIANGLE RESTAURANT BUSINESS PROPOSAL


Build the restaurant.
Decorate the restaurant.
Order new equipment and furniture
By the end of Week Sixteen:
Start decorating the restaurant.
Make the regulation system of employee.
By the end of Week Seventeen:
Decide on the range of diets for retail and procurement channel details.
By the end of Week Eighteen:
Start training new staff.
By the end of Week Nineteen:
Order new materials based on the decision made.
Check and accept the decorating project.
By the end of Week Twenty:
Get the new equipment and furniture delivered and installed.
Clean the new restaurant.

By the end of Week Twenty One:


Get the new stock delivered and keeping properly.
Publicize the new fast-food restaurant opening to those will-being
customers.
By the end of Week Twenty Two:
Open the restaurant.

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LITTLE TRIANGLE RESTAURANT BUSINESS PROPOSAL

Appendix 6: Cost Breakdown

Cost Breakdown
Building & Decoration: The purchase of building material, labor costs, and
expense of design would be UGShs. 65,000,000
1. Building Costs

50,000,000

2. Design Costs

500,000

3. Labor Costs

3,000,000

4. Windows

1,800,000

5. Ceiling

2,000,000

6. Painting

2,000,000

7. Cement & Putty

400,000

8. Lighting

3,000,000
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LITTLE TRIANGLE RESTAURANT BUSINESS PROPOSAL


9. Lumber

2,000,000

10.

300,000

Glue & Tools

Equipments: The estimated cost of equipments in the restaurant would be


UGShs. 15,000, 000
3,000,0
1. Kitchen stoves
00
1,000,0
2. Refrigerators
00
1,200,0
3. Kitchenware
00
3,000,0
4. Restaurant furniture
00
1,000,0
5. Painting & curtains
00
500,00
6. Cash register, computer & printer
0
2,800,0
7. Air conditioners
00
8. Office
furniture
(including 1,500,0
armchairs)
00
150,00
9. Photocopier
0
500,00
10.
Office computer & printer
0
300,00
11.
Stationery
0
Operating Budget: The annual operating budget would be UGShs.
10,000,000
4,000,000.0
1. Wages
0
3,150,000.0
2. Utilities
0
3. Equipment Maintenance

250,000.00

4. Advertisement

800,000.00

5. Consultancy

300,000.00

6. Public relations

1,000,000.0
0

7. Staff training

500,000.00
19

LITTLE TRIANGLE RESTAURANT BUSINESS PROPOSAL


The Little Triangle Restaurant will require an initial capital investment of
UGShs 80,000,000 to build, equip and operate the restaurant at the
proposed site. This amount of funding will be raised by its principal project
promoter Ms. Abaho Flora.
Current capital: UGShs 20,000,000 of current capital will be used to run the
restaurant such as purchasing daily food and covering miscellaneous costs
etc.
TOTAL COST OF PROJECT
Initial costs:

Recurrent
costs:

65,000,000.
1. Building & Decoration 00
15,000,000.
2. Equipment
00
80,000,000
SUB-TOTAL
.00
10,000,000.
1. Operating budget
00
20,000,000.
2. Floating capital
00
30,000,000
SUB-TOTAL
.00
110,000,00
TOTAL COST
0.00

Appendix 7: Risk Analysis and Management Plan


As the saying goes better safe than sorry, prior to implementation of
the project, it is necessary to look at the project from different perspective.
Before putting the plan into practice, we find that the following problems

20

LITTLE TRIANGLE RESTAURANT BUSINESS PROPOSAL


might affect the successful completion of the project. We presume that the
following three areas are where problems likely occur.
People-related:

The new employees may not be satisfied with the wages.


The new employees may not be good at this job at all.
For a new restaurant, people may doubt about its credibility when they
come to us for the very first time.

Time-related:

The newly ordered raw materials may not arrive in time causing delays
in the opening of the new restaurant.
The decoration in the new restaurant cannot be finished on time.

Service-related:

The requisite financing to build, equip and operate the proposed


restaurant may not be forthcoming in time.
The new dishes may not cater to the interests of the customer.
We may not be able to purchase the raw materials ingredients at the
lowest price from the supplier.

Since it is impossible to eradicate all the risks, the restaurant manager deems she is
able to control and manage them. Now, she has thought of three measures which
are as follows:
To try to avoid the risks, for example, she will make sure that the new staffs
could accept the monthly wage during the selection and recruitment process
Carry out market research among target customers to improve the popularity
and the diversity of the proposed restaurant.
Monitor the lead time to make sure the materials arrive on time.
Set aside a certain percentage of the total budget as contingency allowance to
take account of the unexpected risks.
Public relations
UGShs 200,000 per year
Market research
UGShs 100,000 per year
Contingency allowance
1% of the annual profit

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