FEASIBILITY REPORT

ON
ESTABLISHING THE RESTUARANT

SUBMITTED TO: -
Sir Armaan

SUBMITTED BY: -
Rao Abdul Razik 054
AamirUmrani 19

FEASIBLITY REPORT ON OPENING A

RESTUARANT
DEFINITION OF RESTRAURANT

“A restaurant is an establishment that serves prepared food and beverages to be

consumed on the premises. The term covers a multiplicity of venues and a diversity of styles of
cuisine”
In the restaurants, products and suppliers are used on a “first-in, first-out” basis to ensure freshness. All
restaurants provide warm, pleasant, and inviting environment and a variety of comfortable seating
arrangements to accommodate anyone – from a single individual to a large family. There also availability
of separate portion for families. tht
RESTAURANT CHAIN

Restaurant chain is a set of related restaurants, typically with the same in many difference locations either
under shared corporate ownership franchising agreements.

FAST FOOD–RESTAURANT

A fast-food restaurant is a restaurant characterized by food which Is supplied quickly after

ordering and by minimal services. Food purchased may or may not be eaten quickly as
well.

SCOPE OF THE PROJECT

The aim of preparing this project report is to know how to establish the restaurant. The
location of the restaurant is on near noonaricng,sakrand highway sakrand. The place has
been selected to capture the market potentiality and untapped opportunity present on this
highway. The area of the land covers 12000 Sq. Feet. The land is an agricultural land,
which is needed to be converted into Non -agricultural land. This procedure requires
minimum 4 months. Construction work can be started when the government approves this
land as a non-agricultural. The minimum time period for the completion is one year. The
restaurant is a part of service industry so that it very difficult is for marketer to provide the
services so; it’s a challenging job.

RESTAURANT PROFILE

Registered Name

WHITE WROSE RESTAURANT

Size of Restaurant

Medium Scale Restaurant

Products

Food & Beverages

Location of Restaurant

SAKRAND HIGHWAY NEAR NOONARI CNG

Partners
Rao Abdul razik
AamirUmrani

OBJECTIVES OF RESTAURANT

To provide high quality food to the customers.

To provide better services to the customers.
To provide better sitting facility to the customers.
To provide better environment to the customers.
To provide better waiting facility to the customers

MISSION

The mission of our restaurant is

“Every employee strives to provide 100 percent cust
o m e r satisfaction - for every customer – every visit. This includes
fast, friendly and attentive service, accuracy in order taking and filling,and
anticipation of customer’s needs.”
To achieve the economies of scale to minimize costs while maximizing value
to Customers.
To achieve leadership, core and functional competencies restaurant business.

OUR TEAM

The aim of our restaurant is to remain the customer satisfaction and we have an energetic
professional with proven caliber and the required expertise. Under the partnership of our team,
we are never lacking in our efforts to make every single deal resounding success.
Working together as a well-knit team with a common goal to satisfy customer by providing
quality food at competitive price and adhering tostrict delivery schedules.
This team consists of the experienced and dedicated staffs, who work in team sprite to achieve
common goals. In our pursuit for overall excellence, we have evolved pro-active mechanism and
work culture with introducing new foods and beverages to satisfy customer and attract new
customers, The Success of Organization will always depend on knowledge, experience and skills
of the promoters, so it is necessary that whosoever are the owners of the company they must pour
their blood to build image of the company
PLUS,POINTS OF OUR RESTAURANT THAN THECOMPETITORS
1.Give customers high quality foods.
2.Serve quickly than the competitors
3.Location of restaurant at clean and pleasant environment.
4. Serve the customers at a fair price than the competitors
5.Use of highest quality, freshest ingredients to make foods.
6.Use of the most current state of cooking equipment to ensure qualityand safety in
serving the customers.
7.Our restaurant provides a clean, comfortable environment especiallysuited for families.

ESTIMATED STAFFS IN RESTUARETN

Total staff 40
Morning staff 8
Afternoon staff 16
Evening staff 16

PRODUCT PROFILE
PRODUCT CHARACTERSTIC:

RESTUARANT
- A new concept of restaurant in the city
- Special facilities: membership cards
- Special discounts on festival
- Wide range of verities in menu and quality food
BANQUETST
lawn-cum-pool side banquets halls are there
capacity: lawn side 300 persons, inside: 200 persons
The main advantage of the design of banquet hall is that at the same time on the one place two
parties can be simultaneously arrange.
EQUIP
MENTS
IN
RESTU
ARENT
F & B
Equipme
nt
KITCHEN EQUIPMENTS
 ELECTRON
ICS EQUIPMENTS
EQUIPMENTS IN BENQUIT HALL
FOOD AND BEVERAGE DEPARTMENT
TOTAL SALARY OF ALL DEPARTMENTS

FIXED INSTALATION COST

VARIABLE COST
MARKET POTENTIAL
•Lot of developments already done as well as still to be done on thehighway.
•Very long distance from Sakrand and Hyderabad
•Road having a lot of traffic.
•Surrounding residential area.
•Major entertainment and other sources on highway. E.g. multiplexes,temples, Automobile
showrooms, Car repairers.
•Adoptive nature and culture of people in region.
•People in search of a high standard/ quality service to come back intothe market.
•Away from city area. Generally, people like to have a peaceful anddifferent place for the parties.

MARKET TRENDS
There are, certain restaurant in proper city, in Sakrand and nawabshahSuch as,

Hyderabad
Qazi ahmed
Saedabad
Halla
Matiari

•But in the surrounding 2 – 5 kms of area, from the region chosenthere is no availability even of
any restaurant.
•People want a place where they can get everything “from fun to rest.”
•Highest traffic is being noted on this highway.
•This highway meets to the way of Karachi

ADVERTISING
Advertisement in all the local news paper
KAWISH
AWAMI AWAZ
SHAM

INTERACTIVE MARKETING
•All the customers are targeted through interactive marketing.
•Helps managers or marketer to know customer’s satisfaction levelas well as to know new
expectations. Also helps to think towardsserve new segments.
•One way to get customer as well as stakeholders’ feedback andthus help to increase
the value.
MEMBERSHIP CARDS

•Membership cards for regular/ special customers.

•R e g u l a r c u s t o m e r s w i l l b e i n c l u d e d i n t h e m e m b e r s h i p c a r d scheme.
•Under this scheme the special benefits that customer can get
15 % discount in Restaurant
10 % discount in Banquets

ENTERTAINMENT PROGRAMS

Food Festival
Musical and cultural nights
Exhibition of arts of different states
Fix rate of dish and Buffet

CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

Customer relationship management to build long-term relationshipwith customers and to retain

existing customers.
CRM practices would include:
Greetings on birthday and special occasions
Gifts to valuable customer.
Cards customers on birthday and special occasions with anattractive offer to the
customers for special occasion in therestaurant.

CUSTOMER QUERY HANDLING

Query handling on the telephone as well as personally.

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED ON 18-MARCH-2019
 year 1 year 2 year 3 year 4 year 5 year 6 year 7 year 8 year 9 year 10
sale of food and Beverage & Benquet2895000 3188900 3227913 3319097 3478032 3607816 3754318 3809321 3901871 4020321
Cost of sale:
Purchase foods 765715 857291 891731 921721 1017311 1027301 1042310 1055102 1078912 1095602
Transport cost 71200 73100 73900 74561 75201 76982 77021 78621 79010 80191

Inventory & maintenance cost 24618 25622 25800 27681 28101 28700 29026 29323 29905 30102
Total Cost of sale 861533 956013 991431 1023963 1120613 1132983 1148357 1163046 1187827 1205895
Gross profit 2033467 2232887 2236482 2295134 2357419 2474833 2605961 2646275 2714044 2814426
Adminstrative & selling expense;
salaries expense 1161600 1161600 1161600 1161600 1161600 1161600 1161600 1161600 1161600 1161600
Adminstrative expense 69780 70156 71231 71963 72537 73432 75602 76430 78923 79567
electricity expense 21000 21789 22205 22709 22910 23890 24911 25617 26100 27890
Staff meal expense 28250 28250 28250 28250 28250 28250 28250 28250 28250 28250
communicaion
Office expenses(expense
janitorial 31000 31200 31350 31540 31653 31700 31850 31990 32100 32300
services) 119750 121700 122030 122500 122970 123110 123309 123400 123717 123900
Gas expenses 13600 13900 14050 14100 14300 14500 14700 14800 14900 15000
Newspaper expences 1800 1800 1800 1800 1800 1800 1800 1800 1800 1800
Generaor & diesel expenses 53025 55167 56570 56900 57110 58699 59990 60567 61564 62450
Fire fighting expense 16300 16300 16300 16300 16300 16300 16300 16300 16300 16300
Decoration expenses 65000 65000 65000 65000 65000 65000 65000 65000 65000 65000
Depreciation expense 114359 114450 114541 114632 114723 114814 114905 114996 115087 115178
Sub total 1695464 1701312 1704927 1707294 1709153 1713095 1718217 1720750 1725341 1729235
operation income 338003 531575 531555 587840 648266 761738 887744 925525 988703 1085191
gain and loss of equipment
earning before and interest &tax 338003 531575 531555 587840 648266 761738 887744 925525 988703 1085191
Interest loan 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000
earning before tax 238003 431575 431555 487840 548266 661738 787744 825525 888703 985191
Tax 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500
Net profit 234503 428075 428055 484340 544766 658238 784244 822025 885203 981691
CASH FLOW STATMENT FOR THE YEAR ENDED 18-MARCH-2019
 year 1 year 2 year 3 year 4 year 5 year 6 year 7 year 8 year 9 year 10
Operating Activity
Net profit 234503 428075 428055 484340 544766 658238 784244 822025 885203 981691
Add.Deprecation
expense 114359 114450 114541 114632 114723 114814 114905 114996 115087 115178
Raw material 765715 857291 891731 921721 1017311 1027301 1042310 1055102 1078912 1095602
Equipment in
restaurant and
banquet halll 266800 274700 282600 290500 298400 306300 314200 322100 330000 337900
Gas connection 209467 209467 209467 209467 209467 209467 209467 209467 209467 209467
Electronic
equipment 191855 192006 192006 192006 192006 192006 192006 192006 192006 192006
Cash proved by
operation 251269 361407 334938 369224 342051 453524 572512 605492 652851 740640
Financal Activity
loan project 130000 150000 170000 190000 210000 230000 250000 270000 290000 310000
working capital-
repayment
Financal Activity 130000 150000 170000 190000 210000 230000 250000 270000 290000 310000
Net cash 121269 211407 164938 179224 132051 223524 322512 335492 362851 430640
BALANCE SHEET FOR THE YEAR ENDED 18-MARCH-2019

year 1 year 2 year 3 year 4 year 5 year 6 year 7 year 8 year 9 year 10
Asset
land and equipment 6200000 6200000 6200000 6200000 6200000 6200000 6200000 6200000 6200000 6200000
Food and beverages
equipment 65548 66901 68254 69607 70960 72313 73666 75019 76372 77725
Kitchen equipment 665475 678632 691789 704946 718103 731260 744417 757574 770731 783888
Gas connections 209467 209467 209467 209467 209467 209467 209467 209467 209467 209467
Computer 25000 26000 27000 28000 29000 30000 31000 32000 33000 34000
Furniture 665091 642189 619287 596385 573483 550581 527679 504777 481875 458973
Electronic equipment 191855 192006 192006 192006 192006 192006 192006 192006 192006 192006
Equipment in
restaurant and 266800 274700 282600 290500 298400 306300 314200 322100 330000 337900
Fire figher equipment 16300 16400 16500 16600 16700 16800 16900 17000 17100 17200
Generator 65000 65000 65000 65000 65000 65000 65000 65000 65000 65000
Total Asset 8370536 8371295 8371903 8372511 8373119 8373727 8374335 8374943 8375551 8376159
laibilities
long term debt 4000000 3900000 3800000 3700000 3600000 3500000 3400000 3300000 3200000 3100000
total Liabilities 4000000 3900000 3800000 3700000 3600000 3500000 3400000 3300000 3200000 3100000
Share holder equity
Paid up capital 4136033 4136033 4136033 4136033 4136033 4245017 4245017 4245017 4245017 4245017
retain earnnig 234503 428075 428055 484340 544766 658238 784244 822025 885203 981691
Total equity 4370536 4564108 4564088 4620373 4680799 4903255 5029261 5067042 5130220 5226708
Total owner equity &laibilities
8370536 8464108 8364088 8320373 8280799 8403255 8429261 8367042 8330220 8326708

Breakeven Point
Fixed Cost 7851333
selling price 1200
varibale cost 630
breakeven slae 13774.27

CONCLUSION
After preparing the project report on Entrepreneurship &
management of innovation. We conclude that establishment
of any organization is really a crucial task. the promoters
h a v e t o d e a l w i t h many, circumstances which require high
involvement in d e c i s i o n ma k i n g a n d strategic planning regarding proper
innovations.However, it is essential that the good top management
personnel for the entire Unit who carry out their responsibilities in well manner.
The motto of our restaurant is:
“TO SERVE THE CUSTOMERS AT FAIR PRICE.”
The only thing that we have to keep in mind that as the
m a r k e t potential for restaurant is increasing, we have to maintain our reputation
by maintaining the quality of the services and customer relationship also.
The net profit of our restaurant in the year 2018 is Rs.234503

Andwe always try our best to achieve the targeted profit in the later years.