Report on New Business Plan

(Mr. Fast Food)

Submitted To
Zahidul Islam
Faculty of CBA
Collage of business administration
IUBAT

Submitted By: ABC

SI

Name

ID

Program

Md:Abu Hasan

12102494

BBA

12102496

BBA

Md:Shahidul
Islam
Soikot Hasan

12102204

BBA

Nashid Tarin

12102368

BBA

Date of Submission: 24th November 2014

IUBAT: International University of Business Agriculture and Technology

Page 1 of 24

Letter of Transmittal

24th November 2014

Zahidul Islam
Faculty of Collage of Business Administration
International University of Business Agriculture and Technology
4Embakment Drive Road,
Uttara ,Sector 10, 1230 Dhaka
Sub: Submission the term paper on A new Business plan.
Dear Sir,
This is a great pleasure for me to submit this successful Report upon Business Plan. During
my working period, I went through various places. I have tried my level best to prepare this
Business Plan on the perspective of Mr. Fast food. I have gathered a lot of practical
knowledge to prepare this report. Through this purpose I have been able to know the actual
market scenario. I think this is a great achievement for me as a student of BBA. I would feel
really great if this report is of any use.
Finally, I would like to thank you for valuable guidance & supportive in preparing this report.
I would be grateful for any clarification when required and highly obliged if you approve this
report and provide your valuable judgment on it.

Yours Truly,
Abu Hasan
Id: 12102494
International University of Business Agriculture and Technology

Page 2 of 24

Acknowledgement

We are very glad that in spite of having many limitations we have completed the business
plan successfully. Preparing this business plan, we received cordial and sincere assistance
from many concerns.
First of all we would like to express my gratitude and deepest thanks to almighty Allah for
whom we became able to prepare this business plan successfully.
We also would like to express my sincere gratitude and deepest thanks to our honorable
course instructor Mr. Zahidul Islam who encouraged me to prepare and submit this business
plan due manner and who provides our guidelines and materials to prepare the business plan .
we also thank him for assigning me such a practical business plan.
For collecting necessary information we would also like to give thanks to Mr. Zulfiqer Ali
owner of a sole proprietorship business for giving our all of the necessary information.
We also wish to express our gratitude to International University of Business Agriculture and
Technology (IUBAT) that gave me the opportunity to prepare this The business plan

Page 3 of 24

Student Declaration

We are the students of Bachelor of Business Administration (BBA), at IUBAT-International

University of Business Agriculture and Technology and declaring that, this report on the topic
A new business plan Mr. Fast Food. have not been previously submitted to any other
University/Collage/Organization for any academic qualification Certificate/ Diploma or any
other degree. The business plan contains no material previously published or written by
anyone except where due reference is made in the text of the thesis. It has been prepared for
the Fulfillment of Our BBA Program.

Md.Abu Hasan
ID: 12102494
Program: BBA

Page 4 of 24

Table of Contents
Contents
Preparatory Part
Executive Summary
Company Description
Introduction
Objectives

Page Numbers
01-06
07
08-09

Mission statement
Products of Mr. Fast Food
Keys to Success

Industry analysis

10

Future overlooks and trends

Industry forecast
11

Market Analysis
Market segmentation
Target Market selection :
Analysis of competitors
Mr. Fast Food will focus on two markets
Marketing Plan
Pricing Strategy

11-13

Promotion Strategy
Advertising and Promotion:
Pricing Strategy
Distribution Patterns
Over all Marketing Strategy

Management Team and Company Structure

13-15

Company Ownership
Management team background
Roles and Responsibilities of members of
organization
Organizational Structure

Page 5 of 24

Operations Plan

16-17

Production plan
Company Locations and Facilities
Manufacturing Process

Names of suppliers of raw materials:

Financial Projections

17-23

Financial Plan
Important Assumptions
Cost of production statement
Break-even Analysis
Projected Income Statement
Projected Balance Sheet
Sources and applications of funds

Conclusion

24

Page 6 of 24

Executive Summary
We have made a Business Plan on the perspective of Mr. Fast Food. The main goal of
our shop is to earn profit through providing quality service at a reasonable price. we
have tried to adopt new technologies to fulfill the customers demand.
Mr. Fast Food is different than others in our country introducing various sorts of facilities.
Mr. Fast Food provide cafe zone, kid zone, smoking zone, conference room, home
delivery service, accepting order through internet and state of the art facilities.
Mr. Fast Food offers its customers the supreme all the fast food related items and hot and
cold beverages, specializing in specialty Barger, Pizza, Sandwich, coffees, blended
teas, and other custom drinks. In addition, it will offer soft drinks, fresh-baked
pastries; Mr. Fast Food offers chocolates, frozen coffees, and more.

Page 7 of 24

Company Description
Introduction
To prepare this Business Plan of (Mr. Fast Food) we have worked in the practical field like
conducting a market survey, collecting accurate information of the market, gathering practical
knowledge of the market etc. I have applied the knowledge of Marketing; Finance & Human
Resource Management & Other sources. we have learned a lot of things to prepare this
Business Plan. we hope it will help us to conduct a Business in future.
Name and Address of this business
Name: Mr. Fast Food
Sector : 10,Road :13,Uttara , 1230
Names and Address of principals
Abu Hasan, Shahidul Islam , Nahid Tarin ,Saikot Hasan
Sector : 10,Road :13,Uttara , 1230 nearest of IUBAT.

Nature of business
This is a Partnership business. This is mainly a fast food and also it produces some
other beverage product like, fruit juice, drinks, chocolate, etc.

Objectives
Mr. Fast Food has established three firm objectives it wishes to achieve in the next three
years:
Five Drive-thru locations and four fully booked Mobile Cafes by the end of the third
year.
Gross Margin of 50% or more.
Net After-tax Profit above 10% of Sales

Page 8 of 24

Mission statement
Mr. Fast Food Mission is three-fold, with each being as integral to our success as the next.
Product Mission: Provide customers the finest quality fast food and beverage in the most
efficient time at an affordable cost.
Community Mission - Provide community support through customer involvement by
building more customer loyalty and providing customer life time value.
Economic Mission - Operate and grow at a profitable rate through sound economic
decisions.

Description of business enterprise

Mr. Fast Food uses a system that is new to the fast food and beverage service industry to
provide all kind of fast food and hot and cold beverages in a convenient and time-efficient
way. Mr. Fast Food provides its customers the ability to drive up custom blended espresso
drink, freshly brewed coffee, or other beverage. Mr. Fast Food is offering a high quality
option to the fast-food, and institutional coffee.
Products of Mr. Fast Food
Mr. Fast Food provides its customers the finest all kind of fast food and hot and cold
beverages, specializing in specialty Burger, Pizza, coffees and custom blended teas. In
addition, Mr. Fast Food will offer select domestic soft drinks, Italian sodas, fresh-baked
pastries, and other confections. Seasonally, Mr. Fast Food will add beverages such as
chocolates, frozen coffees, and so forth.

Keys to Success
There are three keys to success in this business, three of which are virtually the same as any
foodservice business. It is our fourth key--the Community Mission--that will give us that
extra measure of respect in the public eye.
The greatest locations - visibility, high traffic pattern, convenient access.
The best products - freshest Fast Food, hot and cold beverages, cleanest
equipment, premium serving containers and consistent flavor.
The friendliest attendants - cheerful, skilled, professional, communicative.

Page 9 of 24

Industry analysis
In this section I analysis the overall fast food industry analysis through various ways.
Future overlooks and trends
The demand for fast food is increasing day by day. By analyzing past 5years We realize that
the demand for fast food is increased by 10-15 per cent over a year. Here we mainly
focus the students of IUBAT students and Ahasania mission. We find that the students
of IUBAT are increasing very quickly over the coming semester. So it is good news
for me the customer of us will be increased very quickly.
Industry forecast
The demand for fast food is increasing day by day. By analyzing previous 5 years we found
the following information
Year

Consumption (Tk.)

Increased Percentage of
consumption than
past year

2007

30 million

10 %

2008

34.5 million

15%

2009

38.14 million

12%

2010

43.1 million

14%

2011

49.5 million

15%

So from the following information we can say that the fast food industry is growing industry.
So the investment in such type of business will be more profitable.

Page 10 of 24

Market Analysis
Market segmentation
The fast food is popular mainly to the young boys and girl from medium and upper class.
Here my main focus is on to the students of IUBAT and Ahasania Mission Students.
All the students of both of IUBAT and Ahasania Mission Students To come from
medium and upper class family. So we think establish a fast food shop is most
reasonable for this area.
Target Market selection :
Actually our Target is all the people those are directly and indirectly involved with the
IUBAT and Ahasania Mission Hospital and not only they but also all types of people
who love fast food ,especially the young generation because they are very much fond
of fast food.
Analysis of competitors
Here the main competitors of my business are food com. It is pleasure for me that they use
traditional business plan to produce the product and deliver the product. There
business size is small than that of me. They do not use any state of the art technology.
But they have also some strength side also that are, they are doing business for a long
time so they have large number of regular customer, so it will be more time to take the
market favorable to me.
Mr. Fast Food will focus on two markets:
The daily Customer/Commuter: Someone traveling to / from work, out shopping,
delivering goods and services, or just out for a drive.
The Captive Consumer- someone who is in a restricted environment that does not allow
convenient departure and return while searching for refreshments, or where refreshments
stands are an integral part of the environment.
Mr. Fast Food will penetrate the commuter and captive consumer markets by arranging
Drive-thru facilities and Mobile Cafes in the most logical and accessible locations. The
Drive-thru facilities are designed to handle two-sided traffic and distribute customerdesigned, specially ordered Barger, Pizza and Sandwich in less time than required for a visit
to the locally owned cafe or one of the national chains.

Page 11 of 24

Marketing Plan
Pricing Strategy
Mister Fast Food pricing will be comparable to the competition, but with the value-added
feature of immediate service and convenience.
Our strategy is to price our products at a level comparable to our competitors. Our strategy
takes into account production costs, competitive pricing strategies and consumer price
sensitivity. The household furniture market is very competitive and the price conscious
consumer market is looking for good value. Our company's goal is to provide good quality
product for a reasonable price. Such as
Items
Burger (per pies )
Pizza

Sandwich
Singara

Coffee
Fresh juice
Soft drinks

Price 2012 (Taka)

70
250
40
10
50
50
According to retail price

Price 2013(Taka)
90
270
50
15
55
60
According to retail price

Promotion Strategy
The long-range goal is to gain enough visibility to leverage the product line into other regions
and generate inquiries from potential inventors.
Our company's promotional strategy targets potential consumers. A brochure has been
developed on each product line that is distributed to interested consumers. The brochures
feature pictures of each product and highlight the unique item and quality of our products.
Advertising and Promotion:
In the first year, Mister Fast Food plans to spend Tk. 50,000 on advertising and promotion;
this would not be considered a serious advertising budget for any business.tor that we use
some media like

Banner
Visiting card.
Leafleted.
Face book etc.

Distribution Patterns
Page 12 of 24

The cafe experience comes from the Italian origins of espresso. The customer comes in to a
beautifully decorated facility, surrounded by wondrous aromas and finds himself involved in
a sensory experience that, more often than not, masks an average product at a premium price.
Over all Marketing Strategy
Mister Fast Food's target market is the mobile individual who has more money than time, and
excellent taste in a choice of fast food and beverage, but no time to remain in a cafe. By
locating the Drive-Thru in high traffic/high visibility areas, this unique--and abundant-consumer will seek Mister Fast Food out and become a regular guest.
To penetrate the target market for the Mobile Cafes, these units will do what they were
designed to do. Mister Fast Food will take the cafe to the customer! By using the community
support program Mister Fast Food is instituting, arrangements will be made to visit a campus,
or a corporate campus once or twice a month (Even visit these facilities for special games,
tournaments, recruiting events, or corporate open houses). And, for every cup or baked goods
sold, a portion is returned to the campus. It becomes a tremendous, painless way for the
institution to gain a financial reward while providing a pleasant and fulfilling benefit to their
students or employees.
Sales Forecast
In the first year, Mr. Fast Food anticipates having two Drive-thru locations in operation. The
first location will open in the third month of this plan and be fully operational beginning on
the 1st day of July. The second Drive-thru will open six months later. In the second year,
Mister Fast Food will add two more Drive-thru and, in the third year, Mister Fast Food will
add an additional nine Drive-thru facilities.
The sales forecast for the first year
1st
Quarter 2nd Quarter (Sales 3rd
Quarter 4th Quarter (Sales Total (Sales
(Sales Tk)
Tk.)
(Sales Tk.)
Tk.)
Tk.)
10,00,000
20,00,000
25,00,000
35,00,000
90,00,000

Management Team and Company Structure

Company Ownership
Mister Fast Food is incorporated under the laws of Indian act 1983 and is partnership
business and operated by four friends . we are the owner of this business & involved in its
operations and management.
Organizational Plan
Mister Fast Food is a relatively flat organization. Overhead for management will be kept to a
minimum and all senior managers will be "hands-on" workers. There is no intention of
having a top-heavy organization that drains profits and complicates decisions.

Page 13 of 24

Management team background

The Hasan have extensive experience in the fast food industry. For the past 7 years, Shahidul
islam has worked in making fast food related items in the UK.
Nashid tarin worked as manager in fast food Company in Soudi Arabia for 10 years. Soykot
worked as a marketing sector of a fast food company in India for 8 years.
Roles and Responsibilities of members of organization
Shahidul will act as a manager of the company, Abu hasan will act as production manager
and Nasdid tarin will act as marketing manager of this business.

Organizational Structure
The organization will be a relatively flat one, since the majority of personnel are involved in
production and there will be a relatively low headcount in management.
There are three functioning groups within the company: Production, Sales and Marketing,
and General and Administrative.

Page 14 of 24

Size of business
The size of business can be measure by its start up summary, this are..

Start-up Summary
The start-up expenses total just Tk. 11, 80,000, for two years land lease purpose it will cost
Tk. 8, 40,000. In addition there are some expenses which are shown in the following table. In
the same way, for office equipment the amount will be Tk- 7, 00,000 and its total start up
assets amounted in Tk. 18, 70,000. Starts up requirements are stated in the table:
Start-up (Requirements)

Amount (Tk.)

Start-up Expenses
Legal

15,000

Land Lease (2 Years)

8,40,000

Administration cost

2,00,000

Website Development

1,00,000

Identity/Logos/Stationary

10,000

Other

15,000

Total Start-up Expenses

11,80,000

Start-up Assets
Cash Required

8,00,000

Start-up Inventory

1,30,000

Other Current Assets

Long-term Assets

2,40,000

Office Equipment

7,00,000

Total Start up Assets

18,70,000

Total requirement

30,50,000

Page 15 of 24

Operations Plan
Production plan
We have some production plan by which we can produce product at a quality & reasonable
price.
Company Locations and Facilities
Mr. Fast Food will open its first branch on in front of IUBAT, Ahasania mission Hospital at
uttara 10 more branches will be placed throughout the metropolitan area over the next 5
years.
The demographic and physical requirements for a location are:
Visible from roadway.
Easy entry
Established retail shops in area.
Manufacturing Process
Mr. Fast Food is quality food in all of. Here we produce some beverage & Bread item like
Burger, Pizza, and Sandwich. For bread item Best Fast Food have a large oven some
tray& other necessary machine.
Physical Plant
All of our productions are done by the machine. Worker only give raw material into the
machine.
Machine & equipment
Mr. Fast Food tries to use the latest technology to produced product & survive them.
Technology:
The Daily delivery system is based on its technology. Mr. Fast Food is using state-of-the-art,
two-sided facilities to provide convenience and efficiency for its customers. Mr. Fast Food
has also designed state-of-the-art Mobile Cafes that will be deployed from time to time on
university and hospital campuses, , and at special events. Here also have some machinery
which is use like

Computer
Oven
Juice machine
Fan, light
C .C Camera
Page 16 of 24

Names of suppliers of raw materials:

For the purpose of production food & survive food item Mister Fast Food collect raw
material from some person such as
Local Bread Factory
Soft Drink company
Firm for egg.
Fruit shop

Product (or Service) Design and Development Plan

Product Description
Mr. Fast Food provides its customers, facility or one of the Mobile Cafes, the ability to
custom order all kind of fast food and coffee beverage that will be blended to their exact
specifications. Mr. Fast Food 's serving the highest quality Burger, Pizza and hot and cold
beverages, with exceptional attention to detail.
Besides fast food, Mr. Fast Food will offer teas, domestic and Italian sodas, frozen coffee
beverages, seasonal specialty drinks, pastries, and other baked goods. Through the website
and certain locations, Mr. Fast Food will market premium items such as coffee mugs, Tshirts and ball caps, and more.

Financial Projections
Financial Plan
The Daily financial picture is quite promising. Since Mr. Fast Food is operating a cash
business, the initial cost is significantly less than many start-ups these days. The process is
labor intensive and Mr. Fast Food recognizes that a higher level of talent is required. The
financial investment in its employees will be one of the greatest differentiators between it and
Mr. Fast Food competition. For the purpose of this pro-forma plan, the facilities and
equipment are financed. These items are capital expenditures and will be available
for financing. There will be a minimum of inventory on hand so as to keep the product fresh
and to take advantage of price drops, when and if they should occur. Mr. Fast Food
anticipates the initial combination of investments and long-term financing of 21,00,000 to
carry it without the need for any additional equity or debt investment, beyond the purchase of
equipment or facilities
Page 17 of 24

Important Assumptions
The financial plan depends on important assumptions, most of which are shown in the
following table. The key underlying assumptions are:
Mister Fast Food assumes a slow-growth economy, without major recession.
Mister Fast Food assumes of course that there are no unforeseen changes in public
health perceptions of its general products.

Page 18 of 24

Cost of production statement

Cost Statement is most important of any business, because its depends on the company
profits margin. So Mr. Fast Food cost statement show in the belowCost of production statement
For the two years (2012-2013)
Particular

2012 (taka)

2013(taka)

Purchase of goods

500,0000

700,000

Delivered cost of purchase

100, 000

150000

Tax & duty

100,000

130,000

Cost of goods sold

700,000

980,000

Staff salaries

600,000

800000

Legal expanse

100,000

170000

Office expenses

150,000

250000

Total of office & administrative

800,000

1220,000

Marketing selling

200,000

220000

Advertising

500,000

800000

sales promotion

20,000

50000

Total selling & marketing

720,000

1070,000

Total cost

2 ,220,000

3,270,000

40 % profit

888000

1308000

Total sales

3108000

4578000

Direct materials:

Add: administrative expense:

Marketing & selling overhead:

Page 19 of 24

Break-even Analysis
Mr. Fast Food calculated the fixed costs to be Tk. 34, 45,000; average variable cost per unit is
Tk. 50. Mr. Fast Food concludes that we will need at least about 68900 units per year with
average pricing Tk. 100 per unit to reach break-even at Tk.68,90,000 per year.
Break-even Analysis
Yearly Units Break-even
Yearly Revenue Break-even

68,900
68, 90,000

Assumptions
Average Per-Unit Revenue

100

Average Per-Unit Variable Cost

50

Estimated Monthly Fixed Cost

34,45,000

Page 20 of 24

Projected Income Statement

Cash flow will have to be carefully monitored, as in any business, but Mr. Fast Food is also
the beneficiary of operating a cash business. After the initial investment and start-up costs are
covered, the business will become relatively self-sustaining. With the exception of seasonal
dips, which Mr. Fast Food has attempted to account for, through changes in the menu items.
Assuming an initial investment and financing of Tk.30,50,000, which would include Tk.
10,00,000 of operating capital, Mr. Fast Food anticipates the cost of goods sold would be Tk.
50 per unit, and sales will be about 90,000 units per year.

Pro Forma Income statement

2013

Sales

90,00,000

Cost of Goods Sold

45,00,000

Gross Margin

45,00,000

Operating Expenses
Advertising/Promotion

70,000

Website

1,00,000

General and Administrative Payroll

24,00,000

Depreciation

40,000

Utilities

60,000

Insurance

1,00,000

Rent

6,00,000

Interest

75,000

Total Operating Expenses

34,45,000

Net Profit

10,55,000

Page 21 of 24

Projected Balance Sheet

With the present financial projections, Mr. Fast Food expects to build a company with strong
profit potential, and a solid balance sheet that will be asset heavy and flush with cash at the
end of the first year. Mr. Fast Food has strong desire using the excess cash for continued
growth.
Pro Forma Balance Sheet

2013

Assets
Cash

25,500

Inventory

5,89,500

Long-term Assets

2,40,000

Office equipment

7,00,000

Depreciation

(40,000)

Total Assets

15,15,000

Liabilities and Capital

Accounts Payable

50,000

Current Borrowing

3,35,000

Interest

75,000

Profit

10,55,000

Total Liabilities

15,15,000

Page 22 of 24

Source and application of fund

Years 2012(TK.)
Particular
Source of fund:
Mortgage loan
Term loan
Personal funds
Total funds provided
Applications of funds:
Purchase of equipment
Loan repayment

Amount
6,00,000
4,00,000
50,000
10,50,000
12,0000
15,000

Assessment of risk
There are many risk face any new business. So I have to face a risk of my business. Such as Technology change
To competitors of substitutes
To competitors of food Com
Price reduce
Face difficult environment
And to face uncrating problems etc.
Evaluate weakness of business:
When starting a new business here have some weakness. So my business plan is Mr. Fast
Food has some weakness, such as Lack of resources.
Lack of operation.
Reduce employees.
Not sufficient technology etc.
Prick hack
Transportation

Page 23 of 24

Conclusion
As the student of business area it is compulsory to work in the practical field. To work in the
practical field we have to acquire the proper knowledge about actual market scenario.
Through this Business Plan we have learned a lot of things that are very much essential to
build up my carrier. If we can implement this Business plan in current market then we hope
we can be able to gain my desirable target. This Business Plan will help me to start a small
business successfully. Last of all we would like to say that this Business Plan is very much
essential & effective for me.

Page 24 of 24