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The Exordium

Nothing is deserving worship Almighty Allah, the most Merciful,


Compassionate and Gracious. All praises for him because He is the creator of
this mysterious universe and guides us with the Holy Prophet Mohammed
(Peace be upon him) and Holy Quran to explore it. We supplicate that Allah
grant us serenity to accept the things we cannot change, courage to change the
things we can, and wisdom to know the difference.

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Acknowledgement
Person is not perfect in all the contexts of life. He has a limited mind and minor thinking
approaches. It is the mercy of Almighty Allah that shows the man light in the darkness and
the person find his way in this light. Without mercy of Allah, person is nothing but a
helpless creature. We would like to acknowledge here following persons whose guidance
helped us to lead in the positive direction in search of light in the darkness.
First of all, we would like to express our sincere appreciation and gratitude to our course
instructor Mr. Farukh. His valuable suggestions comments and in sightedness for the
project really guided and helped us to structure our project. We learnt a lot from him and
we can never forget his kindness for us. We are also very indebted to our best friends, my
father and mother for their continuous support. We owe a lot of their unconditional love
and understanding. Well, their suggestions allowed us to think in many different ways.
Most importantly, they continually helped us improve our confidence. They really very
special entities of our life. What a journey! We will never stop admiring them.

Executive Summary

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We were assigned a Final Project of our subject Financial Management in which we have to give
one business idea but so for this purpose we select Fast Food and Takeaway restaurant for the
completion of our final project. Firstly in this business idea we give a detail of opening a fast
food and takeaway restaurant by the name of Oven Fast food Restaurant. We discussed that what
is fast food restaurant and also introduction of our business idea of oven fast food restaurant, we
also discuss our different services and also a tools that we chose for the promotion of our
restaurant. We also give the major segment variables of consumer markets and also we see the
scope of that business in Pakistan and that is a huge scope in the Pakistan as well as all over the
world. Secondly we do budgeting and apply different technique to check out whether this project
should be carry on or not. And after analysis we found that our project is earning huge revenue
and we can get back our initial investment in within 2 year so then we decide that we will carry
on our project and we can get a huge revenue by it.

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Table of Contents
Introduction of Fast Food Restaurant.............................................................................. 5
INTRODUCTION TO OVEN FAST FOOD RESTURANT...............................................5
Logo of Oven Restaurant and Slogan..............................................................................5
Scope of Fast Food Restaurant...................................................................................... 6
Vision of Oven Fast Food Restaurant..............................................................................6
Mission of Oven Fast Food Restaurant............................................................................6
Competitors of Oven Fast food Restaurant.......................................................................6
Location of Oven Restaurant........................................................................................ 7
Services Given by OVEN Fast Food Restaurant.................................................................7
Unique Services........................................................................................................ 7
Deals Offering by Oven Fast Food Restaurant...................................................................8
Oven Fast food restaurant offering a big Menu of famous fast foods and the menu is divided in to 9
parts as follow:......................................................................................................... 8
Menu Offered by Oven Restaurant................................................................................. 9
Target Audience of Oven Restaurant.............................................................................10
Customer Driven Marketing Strategy............................................................................ 10
Market Segmentation................................................................................................ 10
Segmentation Consumer Market.................................................................................. 10
Promotional Tools of Oven Restaurant ..........................................................................12
Promotion of Oven Restaurant.................................................................................... 13
Menu with Price list................................................................................................. 15
Budgeting.............................................................................................................. 16

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Introduction of Fast Food Restaurant


A fast food restaurant, sometimes known as a quick service restaurant or QSR, is a precise type
of restaurant categorized both by its fast food cuisine and by minimal table service. Food served
in fast food restaurants classically supplies to a "meat-sweet diet" and is offered from a limited
menu, is cooked in bulk in advance and kept hot; is finished and packaged to order; and is
frequently available ready to take away, though seating may be provided.

INTRODUCTION TO OVEN FAST FOOD RESTURANT


We are opening a Take Away and Dine In restaurant in which we will provide different service
related to the fast food like Burger, Pizza, Shawarma etc. We are opening this Take Away and
Dine in restaurant by name of OVEN which easily connect our business name with our
products and services and the reason of selecting this name is that customers will easily
remember and this name represent that we provide hot and fresh food every time. In this
restaurant we will provide the most famous fast food items to our valued customer. This is a Take
away restaurant and Dine in restaurant where people can come and buy want they want to eat
and take that thing with them at home and can eat it. We will hire different workers for providing
different services to beloved consumers.

Logo of Oven Restaurant and Slogan

Slogan of Oven Fast Food Restaurant: Yours Healthy option...

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Scope of Fast Food Restaurant


There is huge scope of that business in current time period in any country. In current time period
there is number of people who want to eat fast food so thats why by seeing the behavior of our
customer and by seeing the scope of take away restaurants, we open a take away restaurant by
the name Oven Fast Food and Takeaway Restaurant.

Vision of Oven Fast Food Restaurant


Create the best and healthy fast food in the Pakistan and to be recognized for providing taste
food, entertainment and fast, efficient friendly service.

Mission of Oven Fast Food Restaurant


A passion to serve a Hot and healthier food

Competitors of Oven Fast food Restaurant


Oven Fast food restaurant are started by the local region of Pakistan thats why the very initially
competitors of oven restaurant are the local fast food chains of the Pakistan. It is started from the
Lahore city so all the local fast food chain of Lahore are the competitor of oven fast food
restaurant.

Fri Chicks

Smart Chicks

AFC

NFC

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Location of Oven Restaurant


We are opening our first branch at Abu Hassan Isfahani Road near Akbar Chowk and D-block of
Faisal town Lahore.

Services Given by OVEN Fast Food Restaurant

We will provide 24/7 services to customers.


We will provide home delivery service in any place of Lahore city.
People can call us and get home delivery service.
Mid- Night Deals also available after 12pm.

Unique Services

Oven Restaurant give Tablets for order placing to valued customer.


Oven Restaurant gives MENU displayed in LCD also.
Free Wi-Fi for the valued customer.

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Deals Offering by Oven Fast Food Restaurant


Oven Fast food restaurant offering a big Menu of famous fast foods and the menu is divided in to
9 parts as follow:

Appetizer
Shakes

Burger

Ice
Creams

Sandwic
h

Oven
Deals

Hot
Beverag
e

Steaks

Cola
Drinks

Salads

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Appetizer
CHICKEN
TEMPURA
Menu Offered
by Oven

Restaurant

Fried chicken strips in herbs serve with salsa


sauce

HOT WINGS
Three pieces bones fried wings served with
traditional hot sauce

CHICKEN NUGGETS
five pieces served with salsa sauce & fries

MEXICAN WINGS
Three pieces fried wings glace in Mexican
sauce and served with tartar sauce

FRIED JUMBO PRAWN


Marinated prawn and deep fried served with
herb sauce

Fries basket
French fries with salsa sauce

Burgers
Chicken burger
Grill chicken petti and fries

Jalapeno burger
Grilled chicken petti topped with jalapeno and
cheddar chees

Cow boy burger


Beef charcoal grilled Patti and terke baken
and hidden sauce

MASHROOM BURGER
CRISPY FRIED BURGER
OVEN SPECIAL BURGER

SANDWHICH
CHICKEN PRATHA ROLL
A traditional roll pratha with grilled chicken
and chees

COLA DRINKS
Coke
Sprite
Fanta
Diet coke/sprite
Red bull
Nestl water (small /large)

HOT BEVERAGES
Black tea
Cappuccino
Black coffee
Latte

ICE CREAM
Peach
Strawberry
Vanilla crunch
Mango delight
Tutti fruity

SHAKES
Vanilla
Old fashion Choco
Red shake
Mango fiesta
Caramel latte

SHAWARMA
Chicken Shawarma with chees

CLUB SANDWICH
Three layers of sandwich make of traditional
chicken paste and egg and fresh vegetable

OPEN MOUTH SANDWICH


Italian bread with grilled chicken and wedges
drizzled of cheese lover

STEAK
BLACK PEPPER STEAK
MEXICAN STEAK
Americano steak
Mushroom steak

SALADS
Chicken pineapple salad
Sweet corn salad
Russian salad

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Target Audience of Oven Restaurant


Oven Restaurant aims to offer a friendly, fun environment for everyone to enjoy.

Customer Driven Marketing Strategy


Market Segmentation
Buyers in any market differ in their wants, resources, locations, buying attitude and buying
practices. Through market segmentation, we divide large heterogeneous markets in to smaller
segments that can reach more effectively and efficiently with products and services that match
their unique needs.

Segmentation Consumer Market


There is no single way to segment a market. A marketer has to try different segmentation
variables, alone and in combination to find best way to market structure. There are four major
variables of segmentation Demographics, psychographic and behavioral variable.
1) Geographic Segmentation
Dividing a market into different geographical units such as region, country Region, City and
density or climate
2) Demographics Segmentation
Dividing the market into groups based on variables such as age, gender, family size, family life
cycle, income occupation, education, religion, race generation, and nationality.
3) Psychographic Segmentation
Divides buyers into different groups based on social class, lifestyle, or personality
characteristics. People in the same demographics groups have very different psychographic
makeups.
4) Behavioral Segmentation

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Divides buyers into groups based on their knowledge, attitudes uses, or responses to a product
Many markets believes that behavior variable are the best starting point for building market
segment.

Major Segmentation Variable for customer markets


Major segmentation variables for consumer markets
Segments
Geographic
Region
Country Region
City
Density
Demographic
Age
Family size
Gender
Income
Occupation
Education
Religion
Nationality
Race
Social class
Psychographic
Social class
Lifestyle
Personality
Behavioral
Occasions
Benefits
Loyalty status
Attitude toward product

Consumer market
Asia
Pakistan
Lahore
Urban and Sub Urban
Above 10
Small family consist of 3to 6 members
Female, Male
Above 30,000
Any
Not compulsory
All
All
No limitations
middle class, upper middle, upper upper class
Middle class, upper middle, lower upper, uppers uppers class
Outdoor-oriented.
Gregarious
Regular, occasion, special occasion, holidays
Get tasty and healthy food swiftly
Loyal strong
Enthusiastic, positive

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Promotional Tools of Oven Restaurant

Word of
mouth

News
Papers

Pamphle
ts

Promotio
nal Tools
Tools

Cable
Network

Social
Media

Broache
rs

Offical
Website
s

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Promotion of Oven Restaurant


The oven restaurant is opening new in the market and strong advertisement is very necessary to
grab the customers towards the oven fast food restaurant, oven restaurant decided to use
following promotional tools for the advertisement.

1) Word of Mouth
Words of mouth are a first tool used by oven restaurant. It is a healthy and the cheap source of
communication which we will also use in our advertisement as a source of promotional tool. It
really helps us for the strong promotion and it help to connect us with our target audience to let
them know what oven restaurant is.

2) Pamphlets
Pamphlets are the second promotional tool which help oven restaurant in its advertisement to tell
the general public and target audience that what we oven restaurant is, 2000 Pamphlets will be
distributed among our targeted audience to let them know about oven restaurant.

3) Broachers
Broachers are the third promotional tool used by the oven restaurant in its advertisement to tell
the general public and target audience that what is oven restaurant we distributed 2000 broachers
to the near areas of restaurant to let them know about the oven restaurant. Broachers have our
menu and introduction about oven restaurant.
4) Official Website
Official website is the fourth promotional tool used by the oven restaurant in the advertisement,
it is also a strong communication tool through which oven restaurant promote in the general
public and target audience easily connected with the oven restaurant. Official website contain the
menu in detail introduction, vision and mission of the oven restaurant also contain the
information of new offer of oven restaurant.

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5) Social Media
Social Media is a fifth promotional tool used by the oven restaurant. There are different blogs
websites which thousands of peoples are used so it is a strong way to communicate and convey
about the oven restaurant. We use Facebook, Twitter, YouTube and other social media websites
and blogs also as the promotional tools.
6) Cable Network
Cable Network is sixth promotional tool used by the oven restaurant. The area which we selected
is G-1 market near johar town it is a big town approaching other areas also oven restaurant
decided to use nearby Cable Network for advertisement of its restaurant which aware the people
of johar town and other areas about oven restaurant.
7) Newspaper
Newspaper is also a promotional tool used by the oven restaurant for advertisement of the
restaurant, The oven restaurant used the Dawn, Express and nawayewaqt newspaper for the
advertisement of the oven restaurant.

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Staff Hierarchy of Oven Fast Food Restaurant

RECEPTIONIST
MIS -MAHAM
MANAGEING DIRECTOR
MR.ABDULLAH IQBAL

RECEPTIONIST
MIS-ALINA
GERNAL MANAGER
MR.MUHAMMAD-BINASLAM

4
CHEFS

OWNER
MR.AHMAD-NUMA
FINANCE MANAGER
MR.ABD-ULL-MANNAN

2
sweepers
SOCIAL MEDIA
MANAGER
MR.AMIR-SOHIAL

Budgeting
Initial Investment
We will initially invest on our business that is 68, 10,000
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Expense
We will do different expenses that is mentioned below
Particulars
Advance payment for acquired a shop
Paid monthly Rent
Couches & tables
Security cameras
Tablets for making order by customer itself
LCD with sound system
Central Air conditioner plant
Professional fryers
Vertical fridges for cold drinks, ice-cream &

Expense
20,00,000
250,000
500,000
200,000
250,000
150,000
250,000
150,000
200,000

shakes
Cold storage plant
Coffee makers and Steamer
Shawarma maker
Baking ovens
Utensils
Professional Shakes maker
Other expense
Salary and maintenance expense
Promotional and advertisement expenses

150,000
60,000
50,000
200,000
100,000
50,000
103,500
200,000
25,00,000

Fixed cost

+ promotional and advertisement expenses

43, 10,000

25, 00,000

= Initial-Investment
=

68, 10,000

Running cost = Salary and maintenance expense + other expense + Paid monthly Rent
5, 53,500

200,000

103,500

250,000

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Appetizer
CHICKEN TEMPURA
219
Fried chicken strips in herbs serve with salsa
sauce

Menu
with Price List
HOT WINGS
219

Three pieces bones fried wings served with


traditional hot sauce

CHICKEN NUGGETS
200
five pieces served with salsa sauce & fries

MEXICAN WINGS
250
Three pieces fried wings glace in Mexican
sauce and served with tarter sauce

FRIED JUMBO PRAWN


650
Marinated prawn and deep fried served with
herb sauce

Fries basket
150
French fries with salsa sauce

Burgers
Chicken burger
200
Grill chicken petti and fries

Jalapeno burger
250
Grilled chicken petti topped with jalapeno and
cheddar chees

Cow boy burger


350
Beef charcoal grilled Patti and terke baken
and hidden sauce

MASHROOM BURGER
350
CRISPY FRIED BURGER
300
OVEN SPECIAL BURGER
700

SANDWHICH
CHICKEN PRATHA ROLL
150
A traditional roll pratha with grilled chicken
and chees

SHAWARMA
150
Chicken Shawarma with chees

CLUB SANDWICH
250
Three layers of sandwich make of traditional
chicken paste and egg and fresh vegetable

OPEN MOUTH SANDWICH


220
Italian bread with grilled chicken and wedges

COLA DRINKS
Coke
50
Sprite
50
Fanta
50
Diet coke/sprite
65
Red bull
250
Nestl water
small 40/large 70

HOT BEVERAGES
Black tea
70
Cappuccino
150
Black coffee
200
Latte
200

ICE CREAM
Per scoop rs. 70
Peach
Strawberry
Vanilla crunch
Mango delight
Tutti fruity
200

SHAKES
Vanilla
150
Old fashion Choco
200
Red shake
150
Mango fiesta
150
Caramel latte
250

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Revenue
Deals category
Appetizer
Burgers
SANDWHICH
STEAK
SALADS
COLA DRINKS
HOT BEVERAGES
ICE CREAM
SHAKES

Per day
5,500
12,000
3,000
2,000
1,750
1,500
2,500
1,000
1,500

Per month
165,000
360,000
90,000
60,000
52,500
45,000
75,000
30,000
45,000

Per year
19,80,000
43,20,000
10,80,000
720,000
630,000
540,000
900,000
360,000
540,000

Capital budgeting
Participle
Revenue

Year1
1,10,70,00

Year 2
1,27,30,000

Year 3
1,46,40,075

Year 4
1,68,36,086

73,06,200

80,36,820

88,40,502

54,24,300

66,03,255

79,95,584

5,77,500

5,77,500

5,77,500

48,46,800

60,25,755

74,18,084

8,23,956

10,24,378

12,61,074

40,22,844

50,01,377

61,57,010

5,77,500

5,77,500

5,77,500

46,00,344

55,78,877

67,34,510

0
- Expense
66,42,000
EBDIT
44,28,000
- Dep
5,77,500
EBIT
38,50,500
- Tax
6,54,584
NOPAT
31,95,916
Dep.
5,77,500
OCI
37,73,416

Timeline
37, 73,416

46, 00,344

55, 78,877

67, 34,510

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Year
2

Year
1

Year
4

Year
3

68, 10,000 (Initial-Investment)

Capital budgeting techniques


Payback period
Payback period of our project is 2 year but at that time we will receive extra 15, 63,760 Rupees.
From our initial investment so thats why we accept the project.

Net present value


Formula of Net Present Value
NPV=Discounted cash inflows - Initial investment

Cash inflows
PV =

PV =

FV
(1+i )n

37,73,416
( 1+.12 )1

46,00,344
( 1+.12 )2

55,78,877
( 1+ .12 )3

67,34,510
( 1+.12 )4

PV= 33, 69,121 + 57, 70,671 + 78, 37,920 + 10, 59,688


Sum of all discounted cash inflows=. 1, 80, 37,400
NPV= Discounted cash inflows - Initial investment
=

1, 80, 37,400

68, 10,000

NPV= 1, 12, 27,400

Comment on Acceptability According to NPV


NPV of our project is greater than 0 and positive so we accept the project.
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Profitability index
Profitability index=

Discounted cash inflows


Initial investment

1, 80, 37,400
68, 10,000

2.64

Comment on Acceptability According to Profitability Index


The profitability index of our project is greater than 1and positive so we accept the project.

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