DRAFTED PROPOSAL FOR RESTAURANT

Kamran bhai, as you plan to open an outlet I would suggest that you seek
for Barbecue Restaurant reason being that Barbecue is famous all across the
country, and is available in a variety of regional styles as Desi People love to
have it. Many customers enjoy stopping at smaller barbecue businesses
because they typically offer affordable prices, quick service and good-quality
barbecue items. Here, Barbecue restaurants provide dine-in as well as take-
away facility. If you agree with the above and are serious in opening a
Barbecue Outlet then you will have to focus on following variables:

Technology

The proposed setup with used Barbecue cooking machinery including Grilling
Machine, Instant Marinating Machine, Fryers, and Pre-Processing equipment
would serve popular Barbecue.

Location

The business is predicted to be established as a Barbecue restaurant, with

seating capacity on rented premises of around 500 sq ft., near a heavily
populated area suitable for Barbecue lovers.

Product

Mainly yoiu should plan to offer popular Barbecube items including Chicken
and Beef Burgers, Chicken Tikka, Russian salad, Kebab items, Beef
sandwiches and steaks have been selected to be served separately or as
combo meals through the restaurant as these items are in demand. It has
installed capacity of serving 335 customers per day but is estimated to start
with 140-150 customers per day.

Target Market

The middle income segment of Karachi is mainly targeted. Specifically we

need to target youngsters and families who love to have get-togethers.
Critical Factor

Whether you are opening a new Barbeque Restaurant or trying to expand an

existing Barbeque outlet (i.e. if you buy a running business), there are
winning principles that can improve the chances of success. Some key
success factors in my opinion are as follows:

Selecting the right location and layout

Hiring well experienced staff especially Cooks and Servers
Quality & Hygiene
Creating the right menu
Menu Pricing
Operational food quality consistency
Knowing the competition

Process Flow

In the Barbecue Restaurant business, the installed capacities are mainly

dependant on the location and layout of the outlet, service style, food
concept and the target market. The restaurant is expected to serve around
335 customers in a day. At start up, the operational capacities are estimated
to be around 140-150 clients. Once the business gains popularity and
acceptance, sales are expected to increase with the same installed capacity.

RESTAURANT COST SUMMARY

Financing of Restaurant

Description (Note: The figures are fictitious) Details

Total Equity (10%) Rs. 220, 0000

Bank Loan (90%) Rs. 1980, 000

Markup on Borrowing (% age/annum) 08%

Tenure of Loan (Years) 08

Grace period (Year) 01

PROJECT COST

Following requirements have been identified for operations of the proposal

business (Note: All these are fictitious figures to understand the function).

Cost of Project

Restaurant Building 233,00,000

Restaurant Furniture 181,850

Machinery & Equipment 933,000

Advance Rent and Gas

505,000
Security

Preliminary Expenses 25,500

Total Capital Cost 1,878,350

Initial Working Cost 321,650

Total Project Cost 3,845,350

Space Requirement
The land requirement is 500 sq. ft. The cost per sq. ft. is Rs.466 . It is
recommended that the Barbecue outlet be established in an open area or any other area with high retail
consumer traffic. As per the proposed service style, the floor space needs to be carefully allocated to
allow for maximum space for food preparation and store. The allocation of space between different
sections would be as follows:

Space requirement Area Sq. Total

(In. Ft.) Ft. Cost
Kitchen and
300 139,800
Preparations

Store 100 46,600

Front Desk / Reception 25 11,650

Family Area 75 34,950

Total 500 233,000

Machinery and Equipment

Machinery are also easily available in the market but you also have the
choice to select from international brands. The machines can be purchased
through international vendors, with a minimum delivery period of 3 months
while refurbished machines are also available. The typical Barbecue
restaurant as outlined above would require the following machine/equipment
for its operations.
 Cost (Rs. Per
Description Quantity Total Cost Rs.
Unit

Deep Freezers 2 40,000 80,000

Grilling Machine 2 307,500 615,000

Deep Fryers
2 40,000 80,000
(with 2 Baskets)
Hot Plates for Burgers,
1 33,000 33,000
Kebabs & Sandwiches

Potato Cutter 2 3,500 7,000

Peeler 2 7,000 14,000

Microwave Oven 2 10,000 20,000

Generator (5 KVA) 1 71,000 71,000

Keg Rack & Other

2 10,000 20,000
related items

Total 9,40,000
Above is the picture of a Hot Plate for your clarity.

Above is the picture of a Keg Rack with related

items for your clarity.

Furniture and Fixtures

The Restaurant is envisaged to operate as a take away Barbeque restaurant

and a limited seating arrangement around the outlet for families, would be
provided to entertain a maximum of 40 customers at a time. The following
table gives the detail of the furniture and fixtures requirement for the front
and back-house operations.
 Cost (Rs. Per
Description Quantity Total Cost Rs.
Unit

Dining Tables 10 3,500 35,000

Chairs (Standard 14 ") 40 1,500 60,000

Kitchen Cutlery set 2 2,500 5,000

Dining Cutlery (Plate, Fork, Knife,

60 150 9,000
Spoon, Glass)

Hot Water Geyser Large 1 18,000 18,000

Lights/CFLs (Compact Florescent

15 250 3,750
Lights)

Wall Lights/Tube Lights 6 750 4,500

Portable Emergency Light 5 2500 12,500

Working Tables/Counter 1 15,000 15,000

Counter Chairs 2 1,800 3,600

Office Counter and Chair Set 1 8,000 8,000

Chairs for Takeway Customers 5 1,500 7,500

Total 181,850

Raw Material Requirements

It is assumed the material inventory for 5-6 days would be kept at the restaurant. The Raw Material cost
is estimated to increase by 12 % annually. The cost of material required is as under:

Description Cost (Rs.)

 Material for Beef/Chicken Burger 21,165

Material for Beef Sandwitches 9,772

Material for Kebab items(Seekh, Behari,

20,234
Shami Kebab)

Material for Chicken Tikka 19,323

Soft Drinks, Fries, Chapati, Salad etc. 15,432

Packaging Material 1,134

Total 87150

Human Resource Requirement

The Human Resource requirement is as follows: Human Resource

Requirement

Salary Per Month Total Monthly

Description No. of Employees
(Rs.) Salary (Rs.)

Owner/Manager 1 35,000
35,000.00
Kitchen Supervisor 1 15,000
15,000

Cook 3 15,000
45,000

Servers 4 8,000
32,000

Dishwashers 2 8,000
16,000

Cleaner 1 6,000
6,000

Total 12
149,000

It is assumed that You as owner would be managing the overall affairs of the
Barbeque setup. You as Owner will process and check bills, invoices and
cash and also maintain accounts etc. It is essential to hire experienced
cooks, trained staff for operating machinery for the Restaurant. The
proposed project would need a total of 12 persons to handle the restaurant
operations. Salaries of all employees are estimated to increase at the rate of
10% annually.

Revenue Generation

The Sales are expected to increase by 12% every year. The 12% annual
increase in revenue is expected to result from a part of increase in customer
tariff and part increase in product price. The prices used to calculate the
gross revenue earned are based on the billing rate at which you will charge
the customer. The item-wise estimated revenue for the restaurant is as
follows:

First Year Sales First Year Sales

Description Unit Sales Price
No. Revenue

Chicken Tikka No 550 1800

990,000
Chicken Burger No 120 4320
518,400
Beef Burger No 100 3600
360,000
Beef Cheese Burger No 120 3600
432,000
Beef Sandwich No 110 1500
165,000
Beef Club Sandwich No 140 360
50,400
No 150 1440
Katakat 216,000
Beef Steaks No 280 720
201,600
Chicken Steaks No 250 1800
450,000
Behari Kebab
No 160 2800
(4 Per Plate) 448,000
Behari Kebab
No 320 1000
(8 Per Plate) 320,000
Seekh Kebab
No 150 2500
(4 Per Plate) 375,000
Seekh Kebab
No 300 1500
(8 Per Plate) 450,000
Chapli Kebab
No 150 2500
(4 Per Plate) 375,000
Chapli Kebab
No 300 1550
(8 Per Plate) 465,000
Malai Boti No 280 900
252,000
Beef Boti No 250 850
212,500
Chicken Behari Boti No 200 1200
240,000
Beef Boti Roll No 80 1500
120,000
Chicken Roll No 80 1600
128,000
Beef Chatni Roll No 70 1800
126,000
Salad & Raita No 3500
40 140,000
Puri Paratha No 15 6000
90,000
Chapati No 10 4988
49,880
Fries No 60 1300
78,000
Kheer No 45 2500
 112,500

Beverages No 30 71284
2,138,520
Total Revenue
9,503,800

Utilities Requirements

Description Monthly
Electricity 38,000
Gas 20,000
Telephone 2,500
Water 2,500
Total 63,000

Working Capital Requirement

It is estimated that an additional amount of Rs. 321,650 will be required as

cash in hand to meet the initial working capital requirements / contingency
cash. The requirement is based on the Utilities, Salaries and Rent expenses
for at least one month and 5-6 days Raw Material inventory. The following
table gives the breakup:

Description Days Charges

Utilities 30 63,000
Salaries 30 129,000
Raw Material 5 87,150
Rent 30 42,500
Total 321,650

Please Note:

For Common Size Income Statement and Balance Sheet do open the Excel
File Attached in the email named:

Income Statement and Balance Sheet Kamrans BBQ.