Business Plan

(Mister Fast Food)

Course Information:

Course Title: Entrepreneurship

Course Code: MGT-404

Submitted To
Rofiqul Amin
Lecturer, Dept. of Management
School of Business
BUBT

Submitted By
Joglul Hasan
ID:08092101359
Intake: 18th
Program: BBA
School of business

Date of Submission: 10th September 2011

Bangladesh University of Business & Technology

(BUBT)
Page 1 of 18

Letter of Transmittal
10th September 2011
Rofiqul Amin
Lecturer in Management
Bangladesh University of Business and Technology (BUBT)
Mirpur-2, Dhaka-1216.
Sub: Submission the term paper on 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 Mister 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,
Joglul Hasan
School of Business
Bangladesh University of Business & Technology (BUBT)

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Acknowledgement

I am very glad that in spite of having many limitations I have completed the business plan
successfully. Preparing this report, I received cordial and sincere assistance from many
concerns.
First of all I would like to express my gratitude and deepest thanks to almighty Allah for
whom I became able to prepare this report successfully.
I also would like to express my sincere gratitude and deepest thanks to my honorable course
instructor Mr. Md. Rofiqul Amin who encouraged me to prepare and submit this report due
manner and who provides me guidelines and materials to prepare the report. I also thank him
for assigning me such a practical report.
For collecting necessary information I would also like to give thanks to Mr. Aslam Uddin,
owner of a sole proprietorship business for giving me all of the necessary information.
I also wish to express my gratitude to The Bangladesh University of Business & Technology
(BUBT) that gave me the opportunity to prepare this research report.

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Table of Contents
Contents
Introduction
Executive Summary
Industry analysis
Future overlooks & trends
Analysis of competitors
Market segmentation
Industry Forecast
Description of venture
Product
Company Ownership
Size of business
Company location and facility
Production plan
Manufacturing Process
Physical Plant
Machine & equipment
Names of suppliers of raw materials:
Marketing Plan
Market Segmentation
Target Market Segment Strategy
Product
Pricing Strategy
Promotion Strategy
Distribution Patterns
Sales Forecast
Organizational Plan
Form of ownership
Management Background team
Roles and responsibility of members of organization
Organizational Structure
Financial Plan
Important Assumptions
Break-even Analysis
Projected Income Statement
Projected Balance Sheet
Cost of production statement
Assessment of risk
Conclusion

Page Numbers
05
05-07
07-08

08-09

10

10-13

13

14-17

18

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Introduction
To prepare this Business Plan I 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. I have learned a lot of things to prepare this Business Plan. I
hope it will help us to conduct a Business in future.
Name and Address of this business
Name: Mister Fast Food.
Plot No: 10/A, Dhaka Commerce College road, Mirpur-2, Dhaka-1216
Names and Address of principals
Joglul Hasan
P-6-15, BISF colony, Mirpur-1, Dhaka-1216.
Nature of business
This is sole proprietorship business. This is mainly a fast food and also it produces
some other beverage product like, fruit juice, drinks, chocolate, etc.
Statement of financing needed
First we need about Tk.30, 50,000 to start the business.

Executive Summary
I have made a Business Plan on the perspective of Mister Fast Food. The main goal of
my shop is to earn profit through providing quality service at a reasonable price. I
have tried to adopt new technologies to fulfill the customers demand. Mister Fast
Food is different than others in our country introducing various sorts of facilities.
Mister Fast Food provide cafe zone, kid zone, smoking zone, conference room,
home delivery service, accepting order through internet and state of the art facilities.
Above all I will provide Drive-thru and Mobile Cafes facilities.
Mister 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; Mister Fast Food offers chocolates, frozen coffees, and more.

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Mister 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.
Mister 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.
Mister Fast Foods financial picture is quite promising. Since Mister 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 Mister 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 Mister Fast Food's competition. For the purpose of this pro-forma plan, the
capital expenditures of facilities and equipment are financed. There will be
minimum inventory on hand so as to keep the product fresh and to take advantage of price
drops, when and if they should occur.
Mister Fast Food anticipates the initial combination of investments and long term
financing of Tk. 30, 50,000 to carry the business
.

Objectives
Mister 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.

Mission
Mister 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.
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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.

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 I realize that the
demand for fast food is increased by 10-15 per cent over a year. Here I mainly focus
the students of Commerce College and students of BUBT. I find that the students of
BUBT are increasing very quickly over the coming semester. So it is good news for
me the customer of us will be increased very quickly.

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.

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 both Commerce College and BUBT. All
the students of both Commerce College and BUBT come from medium and upper
class family. So we think establish a fast food shop is most reasonable for this area.

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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

2006

30 million

10 %

2007

34.5 million

15%

2008

38.14 million

12%

2009

43.1 million

14%

2010

49.5 million

15%

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

Description of venture
Mister 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. Mister Fast Food provides its customers the ability to drive up custom blended
espresso drink, freshly brewed coffee, or other beverage. Mister Fast Food is offering a
high quality option to the fast-food, and institutional coffee.

Products
Mister 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, Mister Fast Food will offer select domestic soft drinks, Italian sodas, freshbaked pastries, and other confections. Seasonally, Mister Fast Food will add beverages
such as chocolates, frozen coffees, and so forth.

Company Ownership
Mister Fast Food is a Limited Liability Corporation. All liability and benefit will be
owned by Joglul Hasan and its a form of sole proprietorship business.

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

Start-up Summary
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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

Company Locations and Facilities

Mister Fast Food will open its first branch on in front of BUBT, Commerce College Road in
Mirpur-2. 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.
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Production plan
I have some production plan by which I can produce product at a quality & reasonable price.

Manufacturing Process
Mister First Food is quality food in all of. Here I 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 my productions are done by the machine. Worker only give raw material into the
machine.

Machine & equipment

Mister Fast Food tries to use the latest technology to produced product & survive them.
Technology:
The Daily delivery system is based on its technology. Mister Fast Food is using state-of-theart, two-sided facilities to provide convenience and efficiency for its customers. Mister Fast
Food has also designed state-of-the-art Mobile Cafes that will be deployed from time to time
on high school and college campuses, corporate campuses, and at special events. Here also
have some machinery which is use like

Computer
Oven
Juice machine
Fan, light
C .C Camera

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

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Marketing Plan
Mister Fast Food will focus on two markets:
The Daily Commuter- someone traveling to or from work, out shopping, delivering
goods or 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. Under captive customer
we mainly focus the students of both Commerce College and BUBT.

Market Segmentation
Mister Fast Food will focus on two different market segments: Commuters and Captive
Consumers. To access both of these markets, Mister Fast Food has two different delivery
systems. For the commuters, Mister Fast Food has the Drive-thru fast food house. For the
captive consumer, Mister Fast Food has the Mobile Cafe.

Target Market Segment 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 high
school, college 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 high school or college. 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.

Product Description
Mister 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. Mister Fast Food's serving the highest quality Burger, Pizza and hot and cold
beverages, with exceptional attention to detail.
Besides fast food, Mister Fast Food will offer teas, domestic and Italian sodas, frozen
coffee beverages, seasonal specialty drinks, pastries, and other baked goods. Through the
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website and certain locations, Mister Fast Food will market premium items such as coffee
mugs, T-shirts and ball caps, and more.

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 2011 (Taka)

70
250
40
10
50
50
According to retail price

Price 2012(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

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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.

Sales Forecast
In the first year, Mister 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

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.

Ownership
Mister Fast Food is incorporated under the laws of Indian act 1983 and is owned and operated
by Joglul Hasan. He is the only owner of this business & involved in its operations and
management.

Management team background

The owners Joglul Hasan have extensive experience in the fast food industry. For the past 7
years, Akramul Hoq has worked in making fast food related items in the UK.
Samar Das worked as manager in fast food Company in Soudi Arabia for 10 years. Saiful
Islam Ahmed worked as a marketing sector of a fast food company in India for 8 years.

Roles and Responsibilities of members of organization

Joglul Hasan will act as a manager of the company, Akramul Hoq will act as production
manager and Samar Das Ahmed will act as marketing manager of this business.
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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.

Financial Plan
The Daily financial picture is quite promising. Since Mister 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 Mister 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
Mister Fast Food's 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. Mister 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

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.

Cost of production statement

Cost Statement is most important of any business, because its depends on the company
profits margin. So Mister Fast Food cost statement show in the belowCost of production statement
For the two years (2011-2012)
Particular
Direct materials:
Purchase of goods
Delivered cost of purchase
Tax & duty
Cost of goods sold
Add: administrative expense:
Staff salaries
Legal expanse
Office expenses
Total of office &
administrative
Marketing & selling overhead:

2011 (taka)

2012(taka)

500,0000
100, 000
100,000
700,000

700,000
150000
130,000
980,000

600,000
100,000
150,000
800,000

800000
170000
250000
1220,000

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Marketing selling
Advertising
sales promotion
Total selling & marketing
Total cost
40 % profit
Total sales

200,000
500,000
20,000
720,000
2 ,220,000
888000
3108000

220000
800000
50000
1070,000
3,270,000
1308000
4578000

Break-even Analysis
Mister Fast Food calculated the fixed costs to be Tk. 34, 45,000; average variable cost per
unit is Tk. 50. Mister 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

Projected Income Statement

Cash flow will have to be carefully monitored, as in any business, but Mister 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 Mister 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, Mister 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

2010

Sales

90,00,000

Cost of Goods Sold

45,00,000

Gross Margin

45,00,000

Operating Expenses

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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

Projected Balance Sheet

With the present financial projections, Mister 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. Mister Fast Food has strong desire using the excess cash for
continued growth.
Pro Forma Balance Sheet

2010

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

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Interest

75,000

Profit

10,55,000

Total Liabilities

15,15,000

Sources and applications of funds

Source and application of fund

Years 2011(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 Mister Fast
Food has some weakness, such as Lack of resources.
Lack of operation.
Reduce employees.
Not sufficient technology etc.
Prick hack
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 Transportation

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

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