FOUNDATION FOR ADVANCEMENT OF

SCIENCE & TECHNOLOGY

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 BUSINESS PLAN

O’LITES RESTAURANT + GYM

COURSE: ENTREPRENEURSHIP

SUBMITTED TO:

MS. SAIRA N. IBRAHIM

(COURSE INSTRUCTOR)
ON THURSDAY APRIL 30, 2009

SUBMITTED BY:

AZHAR ALI JUNEJO – MARKETING PLAN

(264.06)
MAAZ RAZA – ORGANIZATIONAL PLAN
(335.06)
NOOR-UL-AIN S AKHTAR – FINANCIAL PLAN (118.06)
SHAMAMA-TUR-RAFIQ – OPERATIONAL PLAN (002.05)

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FOUNDATION FOR ADVANCEMENT OF
SCIENCE & TECHNOLOGY

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 TABLE OF CONTENTS
Executive Summary........................................................................................10

Introduction.................................................................................................... 12

IDEA GENERATION.......................................................................................12

OPPORTUNITY ANALYSIS..............................................................................12

VISION STATEMENT......................................................................................13

MISSION STATEMENT...................................................................................13

O’LITES GOALS.............................................................................................14

LONG-TERM GOALS:.................................................................................14

Short-term Goals:.....................................................................................14

Key to Success.............................................................................................14

INITIAL SETUP COSt......................................................................................15

O’LITES RESTAURANT...............................................................................15

O’LITES GYM.............................................................................................15

Marketing Plan................................................................................................16

MARKET SUMMARY......................................................................................16

Market Analysis............................................................................................16

Market segmentation...................................................................................17

Products and services offered......................................................................17

Target Market..............................................................................................18

Industry Analysis.............................................................................................21

Local (Pakistan’s) Industry Analysis.............................................................21

Public health................................................................................................22

Facts and findings........................................................................................23

Competition & Competitive Advantage...........................................................25

The Competition..........................................................................................25

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Competitive Advantages..............................................................................25

Competitor’s analysis matrix.......................................................................27

Food Chains ..................................................................................28

GYM Business...........................................................................................28

Aerobics and Yoga Business.....................................................................29

Our Business.............................................................................................29

Assurance.................................................................................................30

Future Expansions ...................................................................................30

Competitor’s reaction...............................................................................30

Adverse effects on other competing businesses.......................................30

Pricing Strategy........................................................................................30

Competitive pricing..................................................................................31

CosT Leader..............................................................................................31

Membership or trade discounting.............................................................31

Price diversification..................................................................................31

Communication Channel’s...........................................................................31

Buzz Marketing.........................................................................................31

T.V programs............................................................................................32

Radio Advertisement................................................................................32

Internet Marketing....................................................................................32

Seminars...................................................................................................32

Brochures and flyers.................................................................................32

Trend and the size of the Market ................................................................32

S.W.OT. Analysis..........................................................................................33

Market Research..........................................................................................34

In Primary research..................................................................................34

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 Secondary marketing research.................................................................35

Marketing Mix 5 P’s one S............................................................................35

Graphical presentation according to marketing mix.................................37

Market Target..............................................................................................37

RESTAURANT............................................................................................37

Gym Services............................................................................................43

OPERATIONAL PLAN........................................................................................44

BUSINESS STRUCTURE ................................................................................44

SCOPE OF THE BUSINESS.............................................................................45

REGULATORY ISSUES...................................................................................45

INSURANCE..................................................................................................46

BUSINESS PREMISE......................................................................................46

LOCATION ................................................................................................46

PRODUCTION ARRANGEMENTS....................................................................46

QUALITY CONTROL.......................................................................................47

Things needed for Restaurant and Gym...................................................47

COMMUNICATIONS.......................................................................................47

Trading Hours..............................................................................................48

COMMENCEMENT DATE...............................................................................48

Organizational Plan.........................................................................................48

Members Job Description and Job Specification...........................................48

ORGANIZATIONAL CHART............................................................................49

Team member’s strength............................................................................50

Staff, their duties and salaries.....................................................................51

NumBer of Staffs..........................................................................................52

RESTAURANT............................................................................................52

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 GYM.......................................................................................................... 52

FINANCIAL PLAN..............................................................................................53

INITIAL SETUP COST AND PROJECT INVESTMENTS.......................................53

RESTAURANT............................................................................................53

GYM.......................................................................................................... 53

Project Parameters......................................................................................53

RESTAURANT...........................................................................................53

GYM.......................................................................................................... 53

PROPOSED PRODUCT COSTING ..................................................................54

RESTAURANT............................................................................................54

GYM.......................................................................................................... 56

COST AND REVENUE....................................................................................57

RESTAURANT ...........................................................................................57

COST AND REVENUE....................................................................................59

GYM.......................................................................................................... 59

GROSS PROFIT and Sales Breakdown..........................................................60

Restaurant................................................................................................60

GYM.......................................................................................................... 61

Machinery and Equipment...........................................................................62

Restaurant................................................................................................62

GYM.......................................................................................................... 63

Furniture and Fixtures ................................................................................63

Restaurant................................................................................................63

GYM.......................................................................................................... 64

AREA REQUIREMENT....................................................................................64

Restaurant...............................................................................................64

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 GYM.......................................................................................................... 64

HUMAN RESOURSE REQUIREMENT..............................................................64

RESTAURANT............................................................................................64

GYM.......................................................................................................... 65

UTILITY REQUIREMENT.................................................................................65

RESTAURANT............................................................................................65

GYM.......................................................................................................... 65

WORKING CAPITAL & PRE-OPERATING COST...............................................66

RESTAURANT............................................................................................66

GYM.......................................................................................................... 66

COST OF CAPITAL.........................................................................................66

RESTAURANT & GYM.................................................................................66

KEY ASSUMPTIONS.......................................................................................66

RESTAURANT............................................................................................66

GYM.......................................................................................................... 67

FINANCIAL SUMMARY...................................................................................68

RESTAURANT............................................................................................68

GYM.......................................................................................................... 68

Profit and Loss Statement of Year 1 (monthly Basis)...................................69

RESTAURANT............................................................................................69

GYM.......................................................................................................... 70

Statement of Cash Flow of Year 1 (Monthly Basis).......................................71

RESTAURANT............................................................................................71

GYM.......................................................................................................... 72

Balance Sheet of Year 1 (monthly Basis).....................................................73

RESTAURANT............................................................................................73

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 GYM.......................................................................................................... 74

Profit and Loss From Year 1 – Year 7...........................................................75

RESTAURANT............................................................................................75

GYM.......................................................................................................... 76

Cash Flow Statement from Year 1 – year 7..................................................77

RESTAURANT............................................................................................77

GYM.......................................................................................................... 78

Balance Sheet from Year 1 – year 7.............................................................79

RESTAURANT............................................................................................79

GYM.......................................................................................................... 80

BREAK-even.................................................................................................81

RATIOS......................................................................................................... 82

RESTAURANT............................................................................................82

GYM.......................................................................................................... 82

Graphs......................................................................................................... 83

APPENDIXES ................................................................................................85

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EXECUTIVE SUMMARY

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11
 INTRODUCTION

IDEA GENERATION
The intellectual group of four people sat together to start a new business which aims to serve the
society and make the members of society healthy and fit, so that they may live happy and healthy
life, these four intellectuals laid down many workable ideas which we analyzed together, with the
help of brainstorming session, as session ends the four undergraduate intellectuals decided to start
a Restaurant+Gym business. Our business has a unique concept of Restaurant and gym services
together so that people can eat healthy and make their self fit and smart, our business capture
those customer niche which really want to reduce fat and eat healthy food.

We made an extensive research, which conclude that this business concept is very much popular
in other countries, but this is not been pursued in Pakistan. We made O’lites to give complete
healthcare facility to every individual, our aim is to provide them good food, health care tips and
gym services, what people do when they became overweight? They start dieting but we have
something different we will provide them the food which not only remove their hunger but that
will also control their health and our gym services also help them to achieve their target body
shape.

OPPORTUNITY ANALYSIS
A very nice opportunity was seen by our intellectual members for this business. First and foremost
there is no other business which provide these health food and gym services combine, and other
the people became so lazy these days they want everything under one roof so that’s our idea the
business with food and gym which will fulfill both requirements of the society which want to live
happy, healthy and fit life with their family and loved ones. Many people all around the faces
many problems and diseases just because of eating unhealthy food and not doing the exercises.

“To insure good health: eat lightly, breathe deeply, live moderately, cultivate
cheerfulness, and maintain an interest in life.”

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 VISION STATEMENT

“To provide our customers with a

quality life style that enables them to
live a long, happy, health, fit and a
peaceful life.”

MISSION STATEMENT

“To create a new style of leadership

in health food and healthcare
services that assures our customers
that they will be provided quality and
consistency in our restaurant keeping
in to consideration their health and
fitness needs.”

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O’LITES GOALS

LONG-TERM GOALS:
 Once the business is recognized we will expand our restaurant into providing full time
meal and 24-hour service at both restaurant and gym.

 After the business establishment and recognition we will expand it to other cities of
Pakistan.

 We will also expand in other business categories such as we will be making our own
yoga and aerobic kits, we start healthy food (salads and soups mainly) buffet and also
we will also launch our books about health food and gym techniques.

 We will also establish hotels under our name with complete facilities of living, eating,
and enjoyment for our customers.

SHORT-TERM GOALS:
 To position our name in the consumer’s mind so that whenever they think about
healthy life style the name O’lites should come.

 We will also look foreword to add the well-informed and intellectual people as our
workforce so that the customers would be delighted and served fully.

 We will be focusing on creating as much as awareness about health related issues as

we can in the areas of Karachi.

KEY TO SUCCESS
The following keys, which we think, are the ways toward success.

 Make food of the highest quality and to present it in a way that drives customer to
come again.

 Customer should be the top priority of the business and the staff should always be
ready at the customer call to serve them fully.

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  The customer feedback should be taken and try to work on them if feasible to
business.

 The relationship with the supplier should be good so that the customer can be served
timely.

 Innovativeness and creativity with menu and gym service.

 The ambiance should be created such which can make consumer fell good and
relaxing.

 A long-term relationship should be developed with all our customers, suppliers,

investors and all other stakeholders.

INITIAL SETUP COST

O’LITES RESTAURANT
Item Cost (Rs.)
Construction Cost (all Inclusive) 3,032,000
Furniture and Fixtures 487,000
Machinery and Equipment 4,862,000
Preliminary Expenses (Including Interior
Décor) 200,000
Working Capital 756,000
Advertising Expense 300,000
Total 9,637,000

O’LITES GYM
Item Cost (Rs.)
Construction Cost (all Inclusive) 2,872,000
Furniture and Fixtures 117,000
Machinery and Equipment 8,837,100
Preliminary Expenses (Incl. Interior
Décor) 500,000
Working Capital 1,830,000
Advertising Expense 300,000
Total 14,456,100

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 MARKETING PLAN

MARKET SUMMARY
Over the past two decades the food and gym business has cultivated into as acceptable trend in
Pakistan where before eating out and going to gym was not appropriate to be seen in outside of
the house, its now been emerging to eat outside going to the gym after the food chains established
in Pakistan and the gym service series increased in urban areas. People of Pakistan are very much
fond of food and always looking forward for the new variety of food to taste and for that they can
go anywhere, but the increased usage of fast food and oily dishes made our society fat and lazy
and this makes

In the past few years in our society many small and medium size restaurants had been opened
providing theses oily and unhealthy food such as zingers burgers, cheese burgers and many other
unhealthy products which not only effect person health but also make him eat more because the
food is tasty and have something magically which is difficult to remove. Our youngsters are the
main targets of these food chains. You hardly listen from youngsters that “lets eat something
healthy today” but you must have heard that lets eat burger with French fries and roll, basically
what these food chains are doing they are targeting the youngsters because in future they will be
their premium customers like they will get job and they can purchase as mush as they want for
them and for their family, right now the food chains are making them addictive to their unhealthy
food. It’s a kind of a virus, which is injected in our society, and making our youngsters unhealthy
and lazy these youngsters are future of our country and I think we are loosing our future for that
reason we are here with a different concept of providing healthy food and gym services which not
only provide good food to our customers but also make them physically fit to survive.

MARKET ANALYSIS
In the beginning of the business our target customers will be the people of north Nazimabad, to
create general awareness to our target market then we will start targeting the near by areas of
north Nazimabad people love to travel and for food they can go to anywhere and with food we
will be providing them the services of gym that would be our plus point to the services we offer.

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The area we have chosen to serve have people with the average and above average income and
their higher priority is to get good health care services and food for themselves and for their
family at affordable prices so if we give them the good food with the health services at reasonable
cost then there is no point saying that people will not come.

MARKET SEGMENTATION
Total population of Pakistan according to 2009 estimates 172,800,000
Total population of Karachi estimated Karachi figure for 2009 15,327,927
Our target market for Karachi 250,000

From this target market we are expecting to serve 65,000 customers

annually

250000

180,000,000

160,000,000 200000

140,000,000

120,000,000 150000

100,000,000

80,000,000 100000

60,000,000

40,000,000 50000

20,000,000

0 0
Total Population Karachi Population Our target M arket Expected # of people
172,800,000 15,327,927 fromKarachi to be served
Series1
Series1 250000 65000

PRODUCTS AND SERVICES OFFERED

The product and services we provide will be different and unique in a way that there is no
restaurant that provides the combine services of food and gym in Karachi. We will provide quality
health food and gym services to our customers at the reasonable prices. Professional chiefs and
trainers with fully equipped gym and beautifully designed restaurant will always ready to serve
the customers. The professionals will always be there to train people how to exercise. This will in
turn increase the loyalty of the customers. There will be the timings for our gym for males and
females. There will be different time allocated to male and female, to make sure that both are
served fully.

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Our products are basically the healthy yet delicious foods and the gym services where weekly
yoga and aerobic classes will also be scheduled.

In our product category we include the healthy food such as.

We will be earning through the food and services we will be providing to serve the society, 1 part
of the total earnings will be donated to EDHI and SUIT and the remaining earnings would be
shared equally to partners and the O’lites is a unique in way of providing food and gym services
to customers the prices are relatively reasonable as compare to the other competitors, we will
provide the proper health guidelines to people, care and consultancy they need plus we will be
providing them the complete record of their health before and after joining the O’LITES.

TARGET MARKET
We will focus initially on the highly health conscious people because these are the opinion
leaders. These include people from all age groups especially ranging from 18-35 where the
attitudes of individuals are to be healthy and look good in their social strata. If we attract and
keep these people they will be a source of attraction for other potential customers. To attract them
we need to provide best food and best equipment with a highly professional team.

We need to differentiate the health conscious people with from our other customers by mostly
advertising with the purpose of appealing to these customers. However our main target would be
the age group of 18-35 because this is the age where the individual is more concerned about health
and physique our marketing strategies, which will follow differentiated marketing, will be created
to cater the needs to each of the individual groups separately. Since our segments of lower upper
and middle upper class are price sensitive so the prices will be charged reasonable. Health-
conscious consumers are willing to search out and pay extra for foods they believe to be locally
grown, nutritious and wholesome.

The targeted customers of O’LITES will have the following characteristics:

Age Group: Children, teens, young adults, baby boomers, middle-aged, senior citizens.
Gender: Both Male and Female.
Occupations: Executives, doctors, lawyers, housewives, business owners, teachers, blue collar,
white collar, students, out of work and people from every field of work.
Monthly Income: Main focus on the segment with income more than Rs.60, 000/= per month.
Interests: Sports, hiking, music, arts, computers, reading television, animals, home decorating,
cars, walking, running, relaxation, health conscious, age conscious, physical fitness, etc.

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Health Status: Healthy, diseased, home bound, active, sedentary, etc.
Locality: Defence Housing Authority.
Social Class: Middle-Uppers to Uppers-Middle.

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35%
30%

25%
20%

15%
10%

5%
0%
business
Students Housewifes Job holders Executives
owners

Series1 22% 15% 32% 12% 19%

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 INDUSTRY ANALYSIS

LOCAL (PAKISTAN’S) INDUSTRY ANALYSIS

The world is altogether change people talk more about the healthy and fit life the health is the
major concern of our society and it is a major factor of today’s talk, Human development indices
incorporate health as a major indicator to assess development of nations and civil society. An
efficient health sector maximizing potentials of all related areas is the need of the hour.

Human health is a primary key for the development of better society better health improves the
efficiency and productivity of the workforce. Government has also subsidizes the health care
facilities for society. Physical exercise is important for maintaining physical fitness and can
contribute positively to maintaining a healthy weight, building and maintaining healthy bone
density, muscle strength, and joint mobility, promoting physiological well being, reducing
surgical risks, and strengthening the immune system.

Exercise also reduces levels of cortisol, thereby benefiting health. Cortisol is a stress hormone that
builds fat in the abdominal region, making weight loss difficult. Cortisol causes many health
problems, both physical and mental.

Frequent and regular aerobic exercise has been shown to help prevent or treat serious and life-
threatening chronic conditions such as high blood pressure, obesity, heart disease, Type 2
diabetes, insomnia, and depression Strength training appears to have continuous energy-burning
effects that persist for about 24 hours after the training, though they do not offer the same
cardiovascular benefits as aerobic exercises do.

The WHO makes the following 5 recommendations with respect to both populations and
individuals for food:
 Achieve an energy balance and a healthy weight
 Limit energy intake from total fats and shift fat consumption away from saturated fats
to unsaturated fats and towards the elimination of trans-fatty acids
 Increase consumption of fruits and vegetables, legumes, whole grains and nuts
 Limit the intake of simple sugars
 Limit salt / sodium consumption from all sources and ensure that salt is iodized

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Other recommendations include:
 Sufficient essential amino acids ("complete protein") to provide cellular
replenishment and transport proteins. All essential amino acids are present in animals.
A select few plants (such as soy and hemp) give all the essential acids. A combination
of other plants may also provide all essential amino acids (except rice and beans
which have limitations).
 Essential micronutrients such as vitamins and certain minerals.
 Avoiding directly poisonous (e.g. heavy metals) and carcinogenic (e.g. benzene)
substances;
 Avoiding foods contaminated by human pathogens (e.g. E. coli, tapeworm eggs).

There are numbers of policies, which Government describes to control the health issues. These
include: Health related Millennium Development Goals; Medium Term Development Framework;
2 Poverty Reduction Strategy Papers; National Health Policy, and; Vision 2030. Even these
policies our health ration seems shaking the unhealthy food and increasing weight of individual
make them less reliable in terms of their life. The average life of individual is decreasing. Non-
communicable diseases (NCD), caused by sedentary life styles, environmental pollution,
unhealthy dietary habits, smoking etc. Evidence shows that infant and child mortality rates
become lowest in countries with high shares of health care spending devoted to primary
(preventive) health care facilities.

PUBLIC HEALTH
Fears of high cholesterol were frequently voiced up until the mid-1990s. However, more recent
research has shown that the distinction between high- and low-density lipoprotein ('good' and 'bad'
cholesterol, respectively) must be addressed when speaking of the potential ill effects of
cholesterol. Fast foods are portrayed as offering excitement, escape and instant gratification.

Particularly within the last five years government agencies have attempted to combat the amount
and method of media coverage lavished upon "junk" foods. Governments also put pressure on
businesses to promote healthful food options, consider limiting the availability of junk food in
state-run schools, and tax foods that are high in fat. Most recently, the United Kingdom removed
the rights for McDonald's to advertise its products, as the majority of the foods that were seen
have low nutrient values were aimed at children under the guise of the "Happy Meal". The British
Heart Foundation released its own government-funded advertisements, labeled "Food 4 Thought",

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which were targeted at children and adults displaying the gory nature of how fast food is generally
constituted.

Physical activity is thought to have other beneficial effects related to cognition as it increases
levels of nerve growth factors, which support the survival and growth of a number of neuronal
cells. Both aerobic and anaerobic exercise also work to increase the mechanical efficiency of the
heart by increasing cardiac volume (aerobic exercise), or myocardial thickness (strength training).
Such changes are generally beneficial and healthy if they occur in response to exercise.

Not everyone benefits equally from exercise. There is tremendous variation in individual response
to training: where most people will see a moderate increase in endurance from aerobic exercise,
some individuals will as much as double their oxygen uptake, while others will never get any
benefit at all from the exercise. Similarly, only a minority of people will show significant muscle
growth after prolonged weight training, while a larger fraction experience improvements in
strength. This genetic variation in improvement from training is one of the key physiological
differences between elite athletes and the larger population. Studies have shown that exercising in
middle age leads to better physical ability later in life.

FACTS AND FINDINGS

Every year and every day we say to ourselves "tomorrow I will start to eat healthier".
Unfortunately, tomorrow rolls around and we still have the same old eating habits. What can be
done to push us toward eating nutritious foods and practicing healthy lifestyles? A little of
motivation and a lot of will power. Of course, all this is often easier said than done. In today's
fast-paced, fast food culture, it's all too easy to starve your body of the nutrition it requires. Many
foods such as spinach and brown rice contain nutrients that are essential to the body. But we all
know it's easier to grab a burger and fries than sit down and have a spinach salad or stir-fry with
rice.

It may seem obvious, but eating right is one of the first steps in living a healthy life. Our diet
provides the nutrients and energy we need to survive, so it makes sense to eat the right foods.
Often your body will tell you what it needs. Have you ever had a craving for cookies and milk?
Perhaps you body is letting you know it needs calcium. When you start feeling dried out, your
body is screaming for more water. Proper nutrition includes a balance between what is "good for
you" and what "tastes good". Remember that moderation is the key on what tastes good, and
eating what is good for you can lead you to feeling and looking great! Even for women taking

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good care of the skin starts from the inside. Proper nutrition, diet and supplementation can help
make skin healthier and beautiful.

In our loose-weight-quickly society exercise has become a bad word, making most of us shy
away, for many people exercise is a series of boring activities that aren't enjoyable. It's something
we do and hate, or avoid completely. We need to change our mind set. Don't think of exercise as
an unpleasant task. Try to think of it more in terms of activities you enjoy like when you used to
"go outside and play".

“Healthy lifestyles are about changing destructive habits and building good ones.”

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 COMPETITION & COMPETITIVE ADVANTAGE

THE COMPETITION
There are so many restaurants placed in different areas of Karachi. We in Pakistan for the first
time providing such an idea of putting Health food plus gym services to serve the community and
make the society fit and healthy.

In Pakistan we have a so many competitor, in regards of food but we are different in terms of
providing food and gym services together, the main advantage of our business is that theirs very
few restaurants who deal in health food but they are very expensive a common man can not afford
it these are for the elite class but our prices are that much reasonable that a common man who
earns an average income can afford and live a healthy and better life the food of our restaurant
will be healthy and hygienic and pure from all health hazards. The idea of O’lites is unique by
itself the O’lites will have a professional team to inspect the quality of food and the gym, the
management will also carryout inspection every week to reassure that everything is up on
standards. Our quality of food and oath to make our society healthy and fit lead us to success in
our business.

COMPETITIVE ADVANTAGES
Basically we are going to differentiate from our competitor in following ways:

 Balanced Healthy food providers.

 Reasonable prices.
 Professional staff.
 Hygiene assurance.
 Quality assurance.
 Well-Equipped gym.
 Infrastructure and supports.

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 COMPETITOR’S ANALYSIS MATRIX
Competitive O’LITES Fast Food Chains Gym Service Yoga and aerobic
Information Restaurant+ Gym Provider centers

Products or Services Health foods Zingers, burgers, fries, Body building, Yoga and aerobic
Offered rolls, kababs, ice creams, providing diet sessions
Organic in nature juices, cold drinks Home plan, mentoring
delivery, take away you, for
Take away, Dine in achieving good
Gym, aerobics, Yoga .physique
classes

Product/service Organic,Healthy Taste, affordable prices, Professionalis Its easy exercise and
Strength removes hunger, the good m, better many men and women
Low fat, ambiance used to support coaching are looking forward to
.it, good atmosphere .it

Product/ service The food is not that Not hygienic, oily, Dehydration, People feel it wastage
Weaknesses tasty as other restaurant increase fat, a big chunk different of time and for yoga
offers and for gym and invested on physiques of there are many rumors
other exercises advertisement. Adults are different like many fatwas has
awareness and people overweight or obese and people, people .been given to YOGA
interest has to be parents are trying not to don’t want to
developed. provide them fast food. .go to gym

Competitive The atmosphere, Taste, Task Accuracy Professionals The growing

(Advantage(s Professionals, best people love to eat fast popularity about
Equip. Comfort, food, growing popularity aerobics and yoga and
Convenience, Interior .in youth the simplicity of
.Design .exercises
Competitive Some cannot afford. Children are overweight Unawareness Unawareness and
(Disadvantage(s Some are lazy, less now that means their and location at location at unknown
awareness about health future sales are also unknown .places
.food and exercise .impacted by that .places

With the help of this competitors analysis matrix we got our target position each of these three
other competitor businesses are working on single factor either providing food or gym services

27
but here is our competitive advantage that we are providing both services food as well as gym
services.

FOOD CHAINS
 For food business their basic strengths are their unhealthy but tasty food and the
ambiance.
 That will be addressed through providing awareness about the health foods, nutrition’s,
and organic foods, exercises benefits.

In the fast food restaurant mainly they hire a group of people like
 A Restaurant Manager
 Helpers and Chefs for Kitchen
 A Receptionist
 Waiters
 A Cashier
 A Security Guard
 Cleaners

The fast food business in Pakistan started in about late 90s and early 2000s almost 10 to 15
years back.

There position in the market is just because of their services, their food taste and even prices
are also reasonable.

GYM BUSINESS
 About gym business the basic advantage they have is the trainer and the word of mouth
communication.
 With this advantage the gym business has other disadvantages like the place for their gym
is unknown to many of their target market and here we have opportunity to make our gym
at the place where the target market can have an easy access and we will create awareness
among them by different communication channels such as radio, news paper, broachers
etc.

In the gym mainly people who are hired include

 A trainer on shift basis
 Different trainers for males and females

The gym business in Pakistan is very old somewhat in early 90s but not popular on that time
but in the late 90s it emerges and still it is growing.

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There position in the market is just because of their services and their training quality and
even prices are also reasonable.

AEROBICS AND YOGA BUSINESS

 For the business of yoga and aerobics their basic strength is their simplicity of exercises
and increasing popularity among people.
 This was their basic and main advantage but their disadvantage is that many people still
have no idea about those things and many people don’t know about the location where
they provide their services, from here our advantage starts we will not only give customer
full awareness but also provide him/her the best services along with good food to
maintain his/her health.

In the aerobics and yoga business mostly these people are hired

 1 as instructor
 1 as assistant instructor

The Aerobics and yoga business in Pakistan is very new somewhat 3 to 5 years before but
now it’s increasing and day-by-day gaining more and more popularity.

There position in the market is just because of their services and their training quality,
simplicity of the exercises.

OUR BUSINESS
Our basic aim is to make our society fit and healthy. Our business is different from all our
competitors their focus is limited but our focus is wide that we will not only be providing the good
health food but also providing them the gym services and at their the weekly yoga and aerobic
classes will be arranged for our customers, One more thing to be considered is to motivate a
customer and this can be done through the health appeal means creating proper awareness about
the health and fitness of an individual and to make him feel confident that they can reduce weight
by following easy process of controlling diet eating healthy and going gym, and If they get these
things under one roof food and gym there is no point that they will go to others.

29
ASSURANCE
As our business provides health food and gym services it assures that the food is up to standards
and the staff is competent and professional and they will serve the customers very well we will be
certified and also we always try to provide the fresh food to customer and give him the ultimate
experience of health food.

FUTURE EXPANSIONS
We may start our own show about heath food and exercise and we will also provide the
equipments of gym and yoga and aerobic kits and dresses and we may expand into many other
areas of Karachi and n many cities of Pakistan.

COMPETITOR’S REACTION
Basically there is a lot of competition among these food chains and health service provider if we
came into competition the reaction will be that here is another competition every business has its
own niche and our niche is the health conscious people the competitors will treat us as they are
treating to other competitors and so do we.

ADVERSE EFFECTS ON OTHER COMPETING BUSINESSES

Our aim is not to make any other business out from competition GOD has written already that
how much we will get in this world not less than that and not more than that, basically all
competing business are established they have some loyal customers as well which will never
wanted to switch, we might get some share but all we can not because we can not cater the whole
target market.

PRICING STRATEGY
We will consider these pricing strategies during the life cycle of our business; there is another
concept of price life cycle, which we will also follow.

PRICE LIFE CYCLE

This concept basically entails that with growing demand and popularity the prices increases and
also the benefits and ambiance and the services to customers.

30
Initially the prices will be set to be low so that customers can be attracted with some benefits as
time passes prices increases and so as the benefits to customers because ones you are in market
and appreciated by customers they will be willing to pay you more for your services.

Some pricing strategies we consider will be:

COMPETITIVE PRICING
We start with competitive pricing relatively below or as same like our competitors do have so that
we can remove the difference between our and competitor pricing that’s we are trying to build
point of parity so that customer can think that we are the same by pricing.

COST LEADER
This strategy will be followed often to boost up the sales, its basically one item is to be sale below
cost to attract customers but other items not people are willing to pay for this as well as other high
price items this is for customers who purchases several items at a time.

MEMBERSHIP OR TRADE DISCOUNTING

We will be charging our members differently because they are our profitable segment, they will
get special prices like lower prices for the food they will eat and some times free food rewards and
other gifts.

PRICE DIVERSIFICATION
As the next technique, is absolute must if we want to cover more people with different financial
capabilities, It is a mutually beneficial pricing policy for its ability to satisfy much wider demand
then "bold" asking for Rs.199 only.

COMMUNICATION CHANNEL’S
The main consideration and issue is to create awareness among people within our budget and to
make them feel the need of our product and service and at the same time need to be careful
choosing mediums of communication that shouldn’t get adverse effect on business.

BUZZ MARKETING
We will be starting by the buzz or viral marketing (word of mouth) now a days it’s been the most
widely used communication tool which is cost free.

31
T.V PROGRAMS
In our country there are many local and private channels are on air we will make our infomercial,
which will be played on those T.V channels.

RADIO ADVERTISEMENT
We have planned to take 3min/month for advertising on radio on FM 103 and 106.2 and on that a
complete name address and punch line will be said about our restaurant and we will hire the peek
time for playing them in evening and in mornings.

INTERNET MARKETING
The Internet marketing will be used in the sense that we will make our appearance on different
websites such as Apna Karachi, funmaza, and kalpoint because these are the websites where
mostly people visit.

SEMINARS
We will arrange seminars where the professional trainers and Doctors will address the public
about the health food and about the exercising benefits and its importance in our daily life, and
these will be sponsored.

BROCHURES AND FLYERS

These will be distributed among different organization to general public and to the professional
peoples at any touch point.

TREND AND THE SIZE OF THE MARKET

The market is very competitive and attractive too because now a days in our culture two things are
very inn one is eating and second is exercising. As we are catering 2 businesses in a single
business so our competition also became double and this makes us to invest our best resources in
addition of product and services, we need to create more awareness as compare to our
competitors, basically our business focus on the health conscious people who think they have
become fat and want to be fit in their old cloths, and here we are going to provide them the
product and services they were waiting for.

There are many questions by which you can determine your target market size, and from those
some are the following:

32
  Who are the customers?

All of those people who think they became overweight and worried about their health.

 Where are they located and how can they be contacted?

They are everywhere in our surroundings they can be contacted through creating
awareness telling them about your food and services.

 What quantity and quality do they want?

People want the food, which should be healthy, hygienic, tasty, and in exercises they want
to be fit and wanted to wear their old cloths as they were wearing before. Fat people are
always being criticized by friend’s family society but now they can become fit with small
consideration.

S.W.OT. ANALYSIS
O’LITES Restaurant and Gym basic strength is its uniqueness of idea, professional services,
capabilities these are the tools on which we can make our competitive advantage, the basic
weakness of this business is unique by its nature and it will take time to be accepted by our
communities. Our place is our big advantage its at a good location where the target market have
easy access and many of our competitors lack in this they are good but not have a good exposure
to their target audience, with all that there are certain threats associated with business and the
main threat is that people may not come to us because we will be new for them. The
environmental analysis helps us to find out more opportunities to grow and expand to cater market
but at the same time the external changes may impact the business such as the tax policies of
Government.

33
Strength Weaknesses
 Unique idea  No practical experience
 Professional staff  Limited budget
 Management is committed and confident  It’s a new business it will take time to be
 Quality processes and procedures accepted.
 Good Location of a business  Lack of access to key cost efficiencies

Opportunities Threats
 None of the business provides this  Price war
combine service of food and gym to the  Tax rates are increasing
society  People may not come to us because we are
 The market segment of middle uppers and new to them
upper middles are less price sensitive  Government policies
 We can expand into many other  Competitors have superior access to
businesses distribution channels.
 People become more health conscious

MARKET RESEARCH
In market research we used both primary and secondary sources to collect data.

IN PRIMARY RESEARCH
INTERVIEWS

We took interviews face to face on the internet to our friends and to our relatives and some
general public about the health food and what they think about going to gym and reducing weight.

QUESTIONNAIRES

We have distributed questionnaires to many people to know about our business and their
preference that do they need what we will be going to provide them it give us also a brief picture
about their preference.

OBSERVATION

34
We observe the people in a restaurant how much they are fond of eating and how much they
spend on food and we went to gym and see their feelings and their hard work to reduce the extra
fat.

SECONDARY MARKETING RESEARCH

WEBSITES

We collected the previous data from the web about people comments their plans and their thinking
about the health food and the exercising this helps us a lot to know what people think across the
world.

PUBLICATIONS

We also saw some publications in newspapers and magazines about health food and exercising
from which we get an insight of the demand and the need of people for our business.

MEDIA

We have seen many programs and videos regarding the health food and exercises on the media we
always seen many fat people struggling for their healthy and fit life as in India one program was
also telecasted on it which has total focus on health food and exercise and that is “THE BIGGEST
WEIGHT LOOSER JETEGA” on SAHARA ONE.

CONCLUSIONS OF MARKETING RESEARCH

We collected data from both primary and secondary sources and we came to know that there is
huge scope of our business success now a day’s people became more health conscious they want
the food which is healthy and also they want to become fit by going to gym and doing exercises.
With the help of the market research techniques it concludes that the society need a restaurant,
which can provide health food and gym services under one roof so that gives us a positive signal
to be in the business, and take the full advantage of this opportunity.

MARKETING MIX 5 P’S ONE S

PRODUCT:

35
Our main products are health food and they are made to serve people hygienic and healthy food,
the food is available in four varieties Continental, Mexican, Italian, and Chinese. The food will be
based on 100% quality and fully inspected by our quality assurance officer.

PRICE:

Our pricing will be same as our competitors in start but will change as the business grow, we will
start with competitive pricing and keep changing our strategies as market trends. Discounts and
other offers will be provided to our customers often.

DISTRIBUTION (PLACE):

Our placing will be the convenient place, where people from the locality have easy access. We
will provide customer the free delivery of food and this will be restricted to the near by area of our
business locality, we will manage our inventory within our restaurant and our distribution will be
open to customers and we will also accept the reverse products if customer fell any thing wrong.

PROMOTION:

For the promotion purpose we will use different mediums to reach our potential customers such as
buzz marketing, T.V programmes, radio advertisements, seminars, flyers, broachers etc. we will
try to create along term relations with our customers.

Some marketers also consider positioning as the 5th P of marketing mix because it is as
important as other 4P’s

POSITIONING:

It’s for those people who are really worried about their health and increasing weight and for those
who wants the high quality food and can pay relatively high prices for food and gym services, our
business cater the age bracket of 10 to senior citizens, we will position O’lites as a restaurant+gym
services provider that creates a combine experience for customers of delicious and health food +
the gym services. We want to create brand equity in customers mind so that he always thinks
about us whenever he thinks about food and exercise.

SERVICE:

As our business is not only a restaurant it is also gym and we are providing the gym services to
our members we will be providing them gym and weekly yoga and aerobics services to make

36
 them fit and healthy. It is our target to make our society look good and live happy and healthy life
with their family.

GRAPHICAL PRESENTATION ACCORDING TO MARKETING MIX

HIGH QUALITY

LOW PRICE HIGH PRICE

LOW QUALITY

MARKET TARGET
As our business is about a restaurant + gym so we have different products and services for our
customers.

RESTAURANT
In restaurant we will be providing the following types of healthy food:

The food will include all cuisine such as Continental cuisine, Mexican cuisine, Italian and French
cuisine, Chinese cuisine, Indian and Pakistani cuisine, Singaporean and Indonesian cuisine and
many others.

37
The Menu will cover the Salads of all the above cuisine, soups, sandwiches / burgers, appetizers
/snacks, cakes and cookies, fresh juices, tea, coffee and other beverages.

Salads:

Salads

Cashew Chicken Salad

Vegetarian salad

Chicken pasta salad

Seafood Pasta Salad

Salad on Stick with Dressing

Mediterranean Chicken and Pasta Salad

Tossed Salad with Eggs and Cheese

3-bean Salad

Spring Salad with Meat

Tomato and Herb Salad

7-layer Salad

Deluxe Spinach Salad

Cinnamon Almond Fruit Salad

Tropical Fruit Salad

Low Fat Creamy Fruit Salad

Fruity and Nutty Chicken Salad

Soups:

Soups

Carrot Soup

Tomato Soup

French Onion Soup

38
 Tomato Soup with Orzo and
Basil

Chicken Noodle Soup

Pasta and Bean Soup

Seafood Soup

Chicken Soup

Thai Chicken Soup

Vegetable Soup

White Bean and Veggie Soup

Sandwiches / Burgers:

Sandwiches / Burger

Chicken Burger with Ginger Lemon

Mayonnaise

Low Fat Cheese Burger

Low Fat Beef Sandwich

Grilled Cheese Sandwich

Egg and Cucumber Sandwich

BBQ Chicken Sandwich

Appetizers and Snacks:

Appetizers / Snacks

Veggie Finger Platter

Baked Potato Chips

Grilled Shrimps

39
 Low Fat Buffalo Wings

Roasted Vegetables

Stuffed Vegetables

Spicy Roasted
Almonds

Baked Sweet Potato

Cakes and Cookies:

Cookies / Cakes

Marble Cake

Chocolate Cake

Carrot Cake

Fruit Cake

Honey Wheat Bread

Muffins

Chocolate Chip
Cookies

Almond Cookies

Cheese Cookies

French Bread

Italian Bread

Low Fat Brownie

Fresh Juices:

Fresh Juices
(Seasonally
Available)

Apple Juice

40
 Pumpkin Juice

Watermelon Juice

Carrot Juice

Grape Juice

Guava Juice

Peach Juice

Spinach Juice

Mango Juice

Pineapple Juice

Tropical Fruit Juice

Orange Juice

Other Beverages, Tea and Coffee:

Other Drinks

Summertime citrus
chill

Pineapple cooler

Peach-watermelon
slush

Fruit colada

Lemonade

Cherry Vanilla
Smoothie

Fresh Fruit Pudding

Milk Mixer

Pomegranate Punch

Strawberries and Half

Cream Smoothie

Seasonal Milk Shakes

41
Coffee

Just for me Coffee

Coffee Mocha

Black Coffee

Cappuccino Coffee

Almond iced Coffee

Creamy Espresso

Frosty Chocolate
Coffee

Tea

Instant Spiced Tea

Chai Tea Mix

Iced Mint Green Tea

Lemon Ginger Iced

Green Tea

Iced tea

Honey Bee Surprise

Healthy Pick me up
Tea

Fruit Tea

Green Tea

Mango Iced Tea

42
GYM SERVICES
In gym services we will provide the professional assistance to our customer the trainers will
always be there for the customer to teach them how to do exercise and also which exercise is good
for them, we also decided to give free classes of yoga and aerobics to our gym members weekly to
add value to their membership.

It would include the following equipment:

10 Station Commercial Gymnasium

Full Body Remote Control Massage Chair

Stand up Twister

Commercial Tread Mill

Steam Suana Bath

Blood Circulation Massager

Compact Home Gym

Super AB King Pro

Vinyl Dumb Bells

Gym Ball

Yoga Exercise Mat

Aerobic Step

Deluxe Air Bike

Rubber Coated Iron Weights

43
 OPERATIONAL PLAN

BUSINESS STRUCTURE
 Although the legal status of business tends to play an important role in any setup, the
business is assumed to operate on a general partnership basis.

 The reason for selecting this business structure is that it would be a good way for us to
raise capital as those of us who would be limited partners would be risking only a limited
amount of liability.

 They would be viewing the investment in as a good source for potential financial returns
and those who would be general partners would have the opportunity to obtain funds with
out having to go through a financial institution.

44
  The name of our business is “O’LITES Restaurant and Gym” and the name of our
business is registered and is patented.

SCOPE OF THE BUSINESS

The scope of our business is very wide. Our business is not only a restaurant that serves health
food but also provides health care services in it’s gym as well. The food served in our restaurant
although being organic and health food is delicious keeping in to full consideration the quality
control standards that would attract health conscious people as well as general public. The gym
provided with our restaurant would not only be having latest gym equipments but also cooperative
yoga and aerobic instructors who would always be there to guide people regarding their health and
fitness. We would be having ten employees for our restaurant which include three chefs, three
waiters, one cashier and two security guards and for our gym we would be having two trainers one
for aerobics and one for yoga. Our restaurant and gym is basically a local business meant to serve
the health conscious and general public of Karachi that aims to provide quality food and service to
its customers.

REGULATORY ISSUES
 O’LITES Restaurant and Gym would be governed by the Pakistan’s Hotels and
Restaurants Act 1976 and Pakistan’s Hotel and Restaurants Rules 1977.

 This deals with the control and registrations of hotels and restaurants.

 O’LITES Restaurant and Gym from the opening apply to the controller for registration,
without first getting the restaurant or gym registered and obtaining a license later in order
to qualify for the registration.

 O’LITES is required to conform to the standard of health, hygiene, comfort, medical

certificates of staffs in good health, its building is structurally safe and to fulfill other
requirements in accordance with law.

 After getting registration the O’lites would be required to obtain a license from the
controller. Normally, registration and license are issued at the same time.

 A license granted shall remain in force for a period of one year and is renewable every
year on payment of prescribed government fee.

45
INSURANCE
O’lites Restaurant and Gym is going to be an insured business. Our insurance policy would be
covering insurance in the areas of food spoilage coverage, food contamination coverage,
equipment break down coverage, employment related practices coverage, Business Interruption
coverage to reimburse for lost income when the restaurant and gym would be temporarily shut
down. Coverage related to risks and customers credit card information, Recharge and clean up
expenses as well as lost income replacement when automatic extinguishing system discharges.

BUSINESS PREMISE

LOCATION

 O’LITES Restaurant and Gym is going to be situated in Defense Housing Authority.

(DHA)

 The reason for choosing this particular geographic location is that the people which we
have targeted have income of Rs. 60,000.

 Our research tells that people who will be our customer are actually health conscious who
are very particular about their diet and fitness.

PRODUCTION ARRANGEMENTS
 Our customers’ health and fitness is our major concern and all our efforts are directed
towards the health and fitness of our customers.

 To ensure that they get the best quality health food in our restaurant the food in our
restaurant would be prepared in Olive Oil and that non stick pans cookers, casseroles and
spoon sets are used for cooking.

 We would try to use less and less plastic and rubber containers. In case of gym we would
be providing the best quality exercising equipments to our customers, which would
include allegros, treadmills and highly qualified trainers.

 Yoga and gym instructors who besides teaching how to exercise would also give them
valuable tips on how to look after their health and fitness in a better way.

46
QUALITY CONTROL
 At O’lites, our customers are the focus of all our activities.

 The focus is to keep our customers satisfied and happy; we will continue to improve in
food, gym services, value and environment.

 We will ensure that our food is fresh, delicious and prepared keeping in to consideration
what is the best for our customers, health and fitness.

 Our service is prompt, personalized and friendly, we will also be keeping in to

consideration that we continuously innovate and introduce new variety of dishes to the
menu that not only taste great but also are fit for the health.

 The food will be according to our customers suiting customers of all ages and types.

 Our attempt would also be towards keeping our prices reasonable and provide the best
value for money.

 We will also try to make our environment as peaceful and soothing as possible for our
customers making it a perfect place for their work out and eating.

THINGS NEEDED FOR RESTAURANT AND GYM

RESTAURANT GYM
Kitchen Appliances Treadmills
Tables Allegros
Chairs Push Ups
Air Conditioners Aerobic Steps
Food Ingredients Exercise Ball
Non Stick Utensils and Spoons Yoga kit
Generator and UPS Gym related equipment
Table cloth and napkins First aid kit
Interiors Interiors

COMMUNICATIONS
We can be contacted at the O’lites Restaurant and Gym through our website (www. olites.com)
and through e-mail addresses (olitesrestaurantngym@gmail.com). Our customers can also
contact us through Cell# (0334-3065919), (0344-3884771)

47
TRADING HOURS
For Restaurant

7:30A.M to 12:00 P.M

For Gym

06:00 A.M. to 11:00 A.M. and 04:00 P.M. to 11:00 P.M. Daily

09:00 A.M. to 12:00 A.M. and 07:00 P.M. to 09:00 P.M. Daily for females only

Yoga and aerobics only on weekends

9:00A.M. to 12:00 P.M. both males and females

COMMENCEMENT DATE
O’LITES Restaurant & Gym is going to start operating from 1st January 2012.

ORGANIZATIONAL PLAN

MEMBERS JOB DESCRIPTION AND JOB SPECIFICATION

Mr. AZHAR ALI JUNEJO

(Head of Marketing)

He will be responsible for all the marketing and promotional activities for our business, such as
advertisements, arranging seminars and to make positioning of the business in our customers
mind. She will also take care of the related marketing issues and decisions.

Mrs. NOOR UL AIN S AKHTAR

(Head of Finance)

48
 She will be responsible for all the finance related issues such as the payroll, budgeting, making
annual reports, talking to the lenders and also to make annual financial statements, she will also
look after the related financial issues.

Mr. MOHAMMAD MAAZ RAZA

(Head of Human Resource)

He will be responsible for all the HR related activities such as Hiring, recruiting, compensating,
change agent services and also looking after the health, security and legal issues of the employees,
and also the related HR issues to work better with staff and to lead business toward success.

Ms. SHAMAMA-TUR-RAFIQ
(Head of Business Operations)

She will be responsible for the business related operations, such as the quality of food, customer
relations and also check out all the activities and behavior of the employees and the staff and also
look after the general conditions and the things working properly.

ORGANIZATIONAL CHART

Head of Head of Head of Head of Human

operation finance Marketing Resources

Shamama-tur- Noor-ul-Ain Azhar Ali Mohammad Maaz

Rafiq Akhtar Junejo Raza

Restaurant Gym Trainer

Receptionist
Manager

49
 Security Lady
guard aerobic
Waiters Lady Gym and yoga
trainer trainer

TEAM MEMBER’S STRENGTH

 Dynamic and innovative thinking
 Members are ready to learn and innovate.
 Good interpersonal skills
 Members are helpful to each other.
 Diversity of skills
 Good relation with friends and other colleagues.

“All as the partners and owners of the company”

50
 STAFF, THEIR DUTIES AND SALARIES

Job Job Responsibility

He will be responsible for the customer support and resolvance of any
Restaurant quality issue if exist, looking after the staff, the general environment and
Manager taking care about the ambiance.
They will be responsible for preparing health food according to
Chef customer preference and also take care of kitchen accessories and also
check the food taste accordingly.
She will be responsible for making calls to vendors our suppliers and
Receptionist also receive calls and transferring of calls to concern dept. and also
welcoming of customer.
They will be responsible for the serving of food and checking the
Waiters customer’s comfort and also look after them and they should be very
attentive and polite towards customer so that they may serve fully.
He will be responsible for the training of the members and the
Gym Trainer maintenance of the gym equipment and also about the body and the
health of their members, he has to keep the record of every member
She will be responsible for ladies training and also about their health she
Lady Gym has to keep record of the members and also tell them about the food and
Trainer necessary nutrition’s.
She will be responsible for training of yoga and aerobic and also about
Lady aerobic and the health and fitness of each member and maintain the personal record
yoga trainer of the members so that she may know how to treat each member.
He will be responsible for taking care of the security of the customers
Security Guard and also to welcome him.
They 1 male and a female will be responsible for neatness and cleanness
Cleaner plus for the hygiene of the premises.
Cashier He / she will be responsible for cash counter and will be one of the
owners on turn basis.

51
NUMBER OF STAFFS

RESTAURANT
Designation / Type Number
Owner (Cashier on turns) 4
Restaurant Manager 1
Chef 2
Waiter 4
Receptionist 1
Security Guard 1
Cleaners 2
Total 15

GYM
Designation / Type Number
Owner (Cashier on turns) 4
Gym Trainer Male 1
Lady Gym Trainer 1
Lady Aerobics and Yoga Trainer 1
Receptionist 1
Security Guard 1
Cleaners 1
Total 10

52
 FINANCIAL PLAN

INITIAL SETUP COST AND PROJECT INVESTMENTS

This provides the total initial setup cost:

RESTAURANT
Item Cost (Rs.)
Construction Cost (all Inclusive) 3,032,000
Furniture and Fixtures 487,000
Machinery and Equipment 4,862,000
Preliminary Expenses (Including Interior
Décor) 200,000
Working Capital 756,000
Advertising Expense 300,000
Total 9,637,000

GYM
Item Cost (Rs.)
Construction Cost (all Inclusive) 2,872,000
Furniture and Fixtures 117,000
Machinery and Equipment 8,837,100
Preliminary Expenses (Incl. Interior
Décor) 500,000
Working Capital 1,830,000
Advertising Expense 300,000
Total 14,456,100

PROJECT PARAMETERS

RESTAURANT
Capacity Human Resource Equipment Location Target Market
250 Customers per Day 12 Local and Imported DHA Middle Upper and Upper Middle

GYM
Capacity Human Resource Equipment Location Target Market
150 Customers per Local and Middle Upper and Upper
Day 7 Imported DHA Middle

53
PROPOSED PRODUCT COSTING

RESTAURANT
COST (Rs.) PRICE (Rs.)

Salads Single Double Serving Single Double Serving

Serving Serving for 4 Serving Serving for 4
Cashew Chicken Salad 125 265 545 140 280 560
Vegetarian salad 95 205 425 110 220 440
Chicken pasta salad 115 245 505 130 260 520
Seafood Pasta Salad 165 345 705 180 360 720
Salad on Stick with Dressing 110 225 485 125 240 500
Mediterranean Chicken and 125 265 545 140 280 560
Pasta Salad
Tossed Salad with Eggs and 100 215 445 115 230 460
Cheese
3-bean Salad 95 205 425 110 220 440
Spring Salad with Meat 115 245 505 130 260 520

Tomato and Herb Salad 95 205 425 110 220 440

7-layer Salad 155 325 665 170 340 680
Deluxe Spinach Salad 95 205 425 110 220 440
Cinnamon Almond Fruit Salad 115 245 505 130 260 520

Tropical Fruit Salad 95 205 425 110 220 440

Low Fat Creamy Fruit Salad 105 225 465 120 240 480
Fruity and Nutty Chicken 135 285 585 150 300 600
Salad

COST (Rs.) PRICE (Rs.)

Soups Single Double Serving for Single Double Serving

Serving Serving 4 Serving Serving for 4
Carrot Soup 95 205 425 110 220 440
Tomato Soup 95 205 425 110 220 440
French Onion Soup 100 215 445 115 230 460
Tomato Soup with Orzo and 125 250
Basil 110 235 485 500
Chicken Noodle Soup 135 285 585 150 300 600
Pasta and Bean Soup 120 255 525 135 270 540
Seafood Soup 165 345 705 180 360 720
Chicken Soup 125 265 545 140 280 560
Thai Chicken Soup 145 305 625 160 320 640
Vegetable Soup 110 235 485 125 250 500
White Bean and Veggie Soup 120 255 525 135 270 540

COST PRICE
(Rs.) (Rs.)

Sandwiches / Burger Single Single

Serving Serving
Chicken Burger with Ginger Lemon Mayonnaise 210 225

54
Low Fat Cheese Burger 184 199
Low Fat Beef Sandwich 210 225
Grilled Cheese Sandwich 184 199
Egg and Cucumber Sandwich 135 150
BBQ Chicken Sandwich 210 225

COST PRICE
(Rs.) (Rs.)

Appetizers / Snacks Single Single

Serving Serving
Veggie Finger Platter 135 150
Baked Potato Chips 160 175
Grilled Shrimps 184 199
Low Fat Buffalo Wings 184 199
Roasted Vegetables 135 150
Stuffed Vegetables 135 150
Spicy Roasted Almonds 184 199
Baked Sweet Potato 160 175

COST PRICE
(Rs.) (Rs.)

Cakes / Cookies Single Single

Serving Serving
Marble Cake 95 110
Chocolate Cake 95 110
Carrot Cake 95 110
Fruit Cake 95 110
Honey Wheat Bread 35 50
Muffins 35 50
Chocolate Chip Cookies 20 35
Almond Cookies 20 35
Cheese Cookies 20 35
French Bread 40 55
Italian Bread 35 50
Low Fat Brownie 30 45

COST PRICE
(Rs.) (Rs.)

Fresh Juices (Seasonal) Single Single

Serving Serving
Apple Juice 35 50
Pumpkin Juice 35 50
Watermelon Juice 35 50
Carrot Juice 35 50
Grape Juice 40 55
Guava Juice 35 50
Peach Juice 35 50
Spinach Juice 35 50
Mango Juice 35 50
Pineapple Juice 40 55
Tropical Fruit Juice 50 65

55
Orange Juice 35 50

COST PRICE
(Rs.) (Rs.)

Other Beverages, Tea & Coffee Single Single

Serving Serving
Beverages
Summertime citrus chill 55 70
Pineapple cooler 60 75
Peach-watermelon slush 65 80
Fruit colada 75 90
Lemonade 55 70
Cherry Vanilla Smoothie 95 110
Fresh Fruit Pudding Milk Mixer 135 150
Pomegranate Punch 105 120
Strawberries and Half Cream Smoothie 115 130
Seasonal Milk Shakes 95 110

Coffee
Just for me Coffee 110 125
Coffee Mocha 95 110
Black Coffee 60 75
Cappuccino Coffee 105 120
Almond iced Coffee 115 130
Creamy Espresso 105 120
Frosty Chocolate Coffee 115 130

Tea
Instant Spiced Tea 35 50
Chai Tea Mix 20 35
Iced Mint Green Tea 40 55
Lemon Ginger Iced Green Tea 55 70
Iced tea 25 40
Honey Bee Surprise 45 60
Healthy Pick me up Tea 50 65
Fruit Tea 55 70
Green Tea 35 50
Mango Iced Tea 45 60

GYM
No. of customers per day = 150

Cost per Customer = Rs. 240

Rs. 2,000 week

Rs. 8,000 / month
Rs. 24,000 / 3 months
Rs. 48,000 / 6 months
Rs. 96,000 / year
Rs. 300 / daily

56
COST AND REVENUE

RESTAURANT

57
58
COST AND REVENUE

GYM

59
GROSS PROFIT AND SALES BREAKDOWN

RESTAURANT

60
 GYM
No. of customers per day = 150

Cost per Customer = Rs. 240

Rs. 2,000 week

Rs. 8,000 / month
Rs. 24,000 / 3 months
Rs. 48,000 / 6 months
Rs. 96,000 / year
Rs. 300 / daily

61
MACHINERY AND EQUIPMENT

RESTAURANT
Quantit
Item Details y Unit Price (Rs.) Total Price (Rs.)

Refrigerator (6 cf) 1 55,000 55,000

Freezer (12 cf) 1 45,000 45,000
Oven (5 burners) 2 47,000 94,000
Microwave (with griller) 1 35,000 35,000
Hot Plate (30" x 22") 1 33,000 33,000
Peeler (4.5 kg potato peeling capacity) 1 6,000 6,000
Cutter (8mm) 1 3,000 3,000
Soup Container (8 Valve with Steel Cabinet) 1 50,000 50,000
Juicer 2 9,000 18,000

62
 Grinder 1 12,000 12,000
Mixer 2 10,000 20,000
Exhaust Fans (3 wings) 2 5,000 10,000
Air Condition (split unit, 6 tons) 3 32,000 96,000
Generator 10 KVA 1 2,500,000 2,500,000
Kitchen Utensils 3 600,000 1,800,000
Kitchen Cutlery 2 10,000 20,000
Reception (Personal Computer) 1 25,000 25,000
Office Laptop 1 40,000 40,000
Total 27 - 4,862,000

GYM
Quantit Unit Price
Item Details y (Rs.) Total Price (Rs.)

10 Station Commercial Gymnasium 2 175,900 351,800

Full Body Remote Control Massage Chair 2 69,900 139,800
Stand-up Twister 4 5,900 23,600
Commercial Treadmill 2 259,900 519,800
Steam Sauna Bath 4 12,900 51,600
Blood Circulation Massager 2 10,900 21,800
Compact Home Gym 1 19,900 19,900
Super ABKing Pro 1 3,500 3,500
Vinyl Dumbells-6kg (3kg each dumbbell) 4 550 2,200
Gym Ball 2 950 1,900
Yoga Exercise Mat 8 950 7,600
Aerobic Step 4 1,900 7,600
Deluxe Air Bike 4 8,200 32,800
Rubber Coated Iron Weights 60 120/kg 7,200
First Aid & Medical Supplies 1 5,000 5,000
Stereo System 1 45,000 45,000
Air Condition (split unit, 6 tons) 3 32,000 96,000
Generator 30 KVA 1 7,500,000 7,500,000
Total 106 - 8,837,100

FURNITURE AND FIXTURES

RESTAURANT
Quantit Unit Price
Item Details y (Rs.) Total Price (Rs.)

Dining Table - Square (2 x 2) 25 6,000 150,000

Dining Table - Square (3 x 3) 5 8,000 40,000
Chairs (wooden) 130 1,500 195,000
Waiting Sofa (set of 7) 1 10,000 10,000
Reception Table/ Chair 1 10,000 10,000
Office Table / Chair 1 10,000 10,000
Office Sofa (set of 7) 1 12,000 12,000
Kitchen Working Table 2 20,000 40,000
Racks and Shelves 2 10,000 20,000
Total - 487,000

63
 GYM
Quantit Unit Price
Item Details y (Rs.) Total Price (Rs.)

Chairs (wooden) 10 1,500 15,000

Reception Sofa (set of 7) 1 10,000 10,000
Reception Table/ Chair 1 10,000 10,000
Office Table / Chair 1 10,000 10,000
Office Sofa (set of 7) 1 12,000 12,000
Kitchen Working Table 2 20,000 40,000
Racks and Shelves 2 10,000 20,000
Total - 117,000

AREA REQUIREMENT

RESTAURANT
% (sq. Size (sq. Civil Works & Décor (cost in Total Construction Cost
Details feet) feet) Rs. / square feet) (Rs.)
Dining 65% 650 3,500 2,275,000
Waiting 4% 40 2,000 80,000
Kitchen &
Preparation 25% 250 2,500 625,000
Office & Reception 2% 20 1,000 20,000
Stores 4% 40 800 32,000
Total 100% 1000 9,800 3,032,000

GYM
% (sq. Size (sq. Civil Works & Décor (cost in Total Construction Cost
Details feet) feet) Rs. / square feet) (Rs.)
Gym Space for Men 30% 300 3,000 900,000
Gym Space for Women 30% 300 3,000 900,000
Aerobics and Yoga for Men 17% 170 3,000 510,000
Aerobics and Yoga for Women 17% 170 3,000 510,000
Office & Reception 2% 20 1,000 20,000
Stores 4% 40 800 32,000
Total 100% 1000 13,800 2,872,000

HUMAN RESOURSE REQUIREMENT

RESTAURANT
Monthly Salary Total Salary
Designation / Type Number (Rs.) (Rs.) Annual Salary (Rs.)

64
Owner (Cashier on turns) 4 - - -
Restaurant Manager 1 20,000 20,000 240,000
Chef 2 15,000 30,000 360,000
Waiter 4 7,000 28,000 336,000
Receptionist 1 8,000 8,000 96,000
Security Guard 1 6,000 6,000 72,000
Cleaners 2 3,000 6,000 72,000
Total 15 - 98,000 1,176,000

GYM
Monthly Salary Total Salary
Designation / Type Number (Rs.) (Rs.) Annual Salary (Rs.)
Owner (Cashier on turns) 4 - - -
Gym Trainer Male 1 12,000 12,000 144,000
Lady Gym Trainer 1 10,000 10,000 120,000
Lady Aerobics and Yoga Trainer 1 9,000 9,000 108,000
Receptionist 1 8,000 8,000 96,000
Security Guard 1 6,000 6,000 72,000
Cleaners 1 3,000 3,000 36,000
Total 10 - 48,000 576,000

UTILITY REQUIREMENT

RESTAURANT
Utility Monthly Charges (Rs.) 3 Months Charges Annual Charges (Rs.)
Electricity 25,000 75,000 300,000
Water 2,000 6,000 24,000
Gas 15,000 45,000 180,000
Telephone 7,000 21,000 84,000
Total 49,000 147,000 588,000

GYM
Utility Monthly Charges (Rs.) 3 Months Charges Annual Charges (Rs.)
Electricity 60,000 180,000 720,000
Water 2,000 6,000 24,000
Gas 500 1,500 6,000
Telephone 7,000 21,000 84,000
Total 69,500 208,500 834,000

65
WORKING CAPITAL & PRE-OPERATING COST

RESTAURANT
Item Monthly Cost (Rs.) Annual Cost (Rs.)
Utilities 49,000 588,000
Salaries 98,000 1,176,000
Raw Material Inventory 100,000 1,200,000
Maintenance Premises 5,000 60,000
Total 252,000 3,024,000

GYM
Item Monthly Cost (Rs.) Annual Cost (Rs.)
Utilities 69,500 834,000
Salaries 48,000 576,000
Raw Material Inventory - -
Maintenance Premises and Equipment 35,000 420,000
Total 152,500 1,830,000

COST OF CAPITAL

RESTAURANT & GYM

Particulars Rate
Required Return on Equity 20.00%
Cost of Finance (Operating Lease) 16.00%
Weighted Average Cost of Capital 18.00%

KEY ASSUMPTIONS

RESTAURANT
Item Assumptions
Inflation Rate 14% as per 2009
Sales Increase 15% per year
Increase in Cost of Raw Materials 10% per year
Increase in Staff Salaries 10% per year
Increase in Utilities 10% per year
Increase in Office & Miscellaneous Expenses 10% per year
Increase in Advertising Expense 10% per year
Debt / Equity Ratio 80 / 20
Depreciation
Building 10% per annum
Furniture & Fixture 10% per annum

66
 Machinery and Equipment 10% per annum
Inclusive in Financial Cost at
Insurance Cost 1%
Raw Material Inventory - Meat & Sea Food 3 days
Raw Material Inventory - Vegetable 1 day
Raw Material Inventory - Spices & Sauces 14 days
Lease Period 5 years
Lease Installments monthly
Financial Charges (Lease Rate) 18%
Tax Rate (after registration) 18% GST
Constant Growing Economy without any major Boom or Recession
No any unpredictable change in fitness and medical
No such Global or National Events to threaten Economy
All the Lease is Operating Lease, Hence no Maintenance Cost

GYM
Item Assumptions
Inflation Rate 14% as per 2009
Sales Increase 15% per year
Increase in Cost of Raw Materials 10% per year
Increase in Staff Salaries 10% per year
Increase in Utilities 10% per year
Increase in Office & Miscellaneous Expenses 10% per year
Debt / Equity Ratio 80 / 20
Depreciation
Building 10% per annum
Furniture & Fixture 10% per annum
Machinery and Equipment 10% per annum
Inclusive in Financial Cost at
Insurance Cost 1%
Lease Period 5 years
Lease Installments monthly
Financial Charges (Lease Rate) 18%
Tax Rate (after registration) 18% GST
Constant Growing Economy without any major Boom or Recession
No any unpredictable change in fitness and medical
No such Global or National Events to threaten Economy
All the Lease is Operating Lease, Hence no Maintenance Cost

67
FINANCIAL SUMMARY

RESTAURANT
Project Payback
Cost IRR NPV Period Cost of Capital (WACC)
Rs.
9,637,000 47% 12,865,513.44 4.5 years 18%

GYM
Payback
Project Cost IRR NPV Period Cost of Capital (WACC)
Rs.
14,456,100 42% 27,096,613.00 6 years 18%

68
PROFIT AND LOSS STATEMENT OF YEAR 1 (MONTHLY BASIS)

RESTAURANT

69
GYM

70
STATEMENT OF CASH FLOW OF YEAR 1 (MONTHLY BASIS)

RESTAURANT

71
GYM

72
BALANCE SHEET OF YEAR 1 (MONTHLY BASIS)

RESTAURANT

73
GYM

74
PROFIT AND LOSS FROM YEAR 1 – YEAR 7

RESTAURANT

75
GYM

76
CASH FLOW STATEMENT FROM YEAR 1 – YEAR 7

RESTAURANT

77
GYM

78
BALANCE SHEET FROM YEAR 1 – YEAR 7

RESTAURANT

79
GYM

80
BREAK-EVEN

B re a k -E v e n

100000000
90000000
80000000
70000000
60000000
R e ve nue
50000000
Cost
40000000
30000000
20000000
10000000
0
1 2 3 4 5 6 7

81
 RATIOS

RESTAURANT
Ratios Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Liquidity Ratios
Current Ratio 1.14 1.28 2.30 Infinity Infinity Infinity Infinity
Quick Ratio 0.20 0.50 1.63 Infinity Infinity Infinity Infinity
Leverage
Debt to Assets 0.88 0.80 0.56 0.40 0.00 0.00 0.00
Debt to Equity 65.75 3.93 1.28 0.18 0.00 0.00 0.00
Times Interest Earned 0.51 1.87 3.55 5.59 7.95 Infinity Infinity
Operating Ratios
Inventory Turnover 32.73 37.63 43.28 49.77 57.24 65.82 75.70
Total Assets Turnover 4.29 5.08 5.01 4.25 3.35 2.23 1.65
Profitability
Profit Margin (0.02) 0.03 0.07 0.10 0.14 0.18 0.21
Return on Investment (0.08) 0.13 0.33 0.44 0.45 0.41 0.35
Return on Equity (5.70) 0.65 0.75 0.52 0.45 0.41 0.35

GYM
Ratios Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Liquidity Ratios
Current Ratio 0.10 0.60 0.60 Infinity Infinity Infinity Infinity
Quick Ratio 0.10 0.60 0.60 Infinity Infinity Infinity Infinity
Leverage
Debt to Assets 0.95 0.96 0.85 0.33 0.00 0.00 0.00
Debt to Equity 19.69 21.97 5.50 0.33 0.00 0.00 0.00
Times Interest Earned 0.75 1.06 0.14 0.18 0.22 Infinity Infinity
Operating Ratios
Inventory Turnover Infinity Infinity Infinity Infinity Infinity Infinity Infinity
Total Assets Turnover 1.13 1.43 1.70 1.84 1.88 1.12 0.80
Profitability
Profit Margin (0.09) 0.01 0.08 0.14 0.20 0.41 0.44
Return on Investment (0.10) 0.02 0.14 0.27 0.38 0.46 0.35
Return on Equity (2.10) 0.47 0.92 0.40 0.38 0.46 0.35

82
GRAPHS

83
84
APPENDIXES

85