You are on page 1of 28

FRANCHISE

BUSINESS PLAN
SUBMITTED BY:

Orion Food Products Limited


-

a concern of ORION GROUP

Orion House, 153-154 Tejgaon Industrial Area


Dhaka 1208, Bangladesh
Tel: + 880 2 887 0133, 887 0134
Fax: + 880 2 887 0108
E-mail: orion@orion-group.net
www.orion-group.net

November 25, 2013

1 | Page

INDEX

Contents
Disclaimer
Applicants Overview
Market Background
About Burger King
Franchise Tie up
Business Plan
Management hierarchy
TRANSACTIONAL OVERVIEW
Competitive Landscape
SWOT Analysis & Objectives

Page
03
04
10
13
14
16
20
21
22
24

2 | Page

DISCLAIMER

This Business Summary is exclusively prepared by Orion Food


Products Limited (the Company) for the purpose of an interest
of securing the Franchise of Burger King in Bangladesh from
Burger King Corporation (the Franchiser) of the USA. The
memorandum has provided necessary corporate, regulatory and
financial information of the company and its mother concern
Orion Group to Burger King Corporation. This document is
prepared and delivered by the company which is a strictly
confidential document and assumed that this confidentiality will
be maintained by the persons and entities being provided with.

The information as contained in this business summary are


based on factual data of the company and outsourced market
data.

This summary does not impart any promise or pledge the


correctness of the anticipations made herein. However, it is
enunciated
exaggerated

that

nothing

deliberately

is
in

concealed,

this

document.

understated
Full

and

or
fair

disclosures are made in this document to ensure transparency so


that the Franchiser may have an overview about the company.

3 | Page

4 | Page

APPLICANTS OVERVIEW
Orion Food Products Ltd (the Company) is a newly formed
company of ORION GROUP and is assigned for our envisaged
franchise. Incorporated just in February 2012 in the Registrar of
Joint Stock Companies & Firms (RJSC) of the Government of
Bangladesh vide registration number C 99566/12 the companys
registered office is Orion House, 153-154 Tejgaon Industrial Area,
Dhaka, Bangladesh.
The shareholders of the company are:
1)
2)
3)
4)

Orion Pharma Limited


Mohammad Obaidul Karim
Salman Obaidul Karim
Mrs. Arzuda Karim

Since Orion Food products is a newly formed company with least


financial credibility, the mother concern i.e., ORION GROUP will
provide the entire financial and regulatory back-up from its other
concerns.
ABOUT ORION GROUP
ORION GROUP is one of the leading conglomerates in Bangladesh
over the years having diversified business segments. ORION has
assumed the leadership role with its operations in pharma &
healthcare, power & energy, infrastructure development &
construction, cosmetics & toiletries, food & hi-tech agro products,
textiles & garments, sports & events and home appliance areas.
Some of the units are successfully listed in the Stock Exchange of
Dhaka and Chittagong and some are in pipeline.
Apart from ORIONs leadership in Pharmaceuticals, Cosmetics &
Toiletries sectors since many years, Orions business interests
successfully diverged into other intensifying sectors like
infrastructural development, power generation and energy. The
major break-through of Orion appeared when it came up with the
idea of introducing PPP concept in infrastructural development
5 | Page

sector of the country and was awarded to implement the first PPP
project of the country on BOOT basis; the Mayor Mohammad Hanif
Flyover, the longest flyover and first of its kind in Bangladesh.
ORIONs is constantly successful in all major investment
undertakings in the country and significantly contributing to the
country's national economy's stability through the right business to
business strategy.
The Group's main objective follows the principle to reduce rural
poverty and foster sustainable economic development of the
country.
Vision
"To be regarded as a world-class corporate house through
products, services & values" is the Group's main vision.
Mission
Continuous development of people competence.
Recognizing individual contribution.
Introducing new and innovative products and technologies.
Assuring quality products from advanced manufacturing
facilities.
Exceeding customer satisfaction and granting trust through
quality services.

Values
To achieve its aspired vision, Orion subscribes the following
values:
Quality in everything we do.
Live up to our commitments.
Transparent and fair in all our dealings.
Take initiative to exceed standards.
Trust and respect to each other.
Work as a team.
Share social responsibility.
Business Portfolio of ORION GROUP
6 | Page

Sectors
Agro Products

Group Companies & activities


Jafflong Tea Company Ltd.
- A Tea Estate in Jaflong, Sylhet
Noakhali Gold Foods Ltd.
- 100% Export oriented fish processing
unit
Orion Agro Products Ltd.
- 100% export oriented Vegetable
processing industry
Panbo Bangla Mushroom Ltd.
- 100%
export
oriented
mushroom
processing, freezing & canning plant

Construction &
Allied

Interior Accom Consortium Ltd.


- Interior refurbishment of Pan Pacific
Sonargaon Hotel

Cosmetic &
Toiletries

Kohinoor Chemical Company Ltd.


- 2nd largest cosmetics & toiletries industry
with Tibet brand

Energy

Orion Gas Ltd.


- Under construction of a LPG bottling &
distribution plant

Infrastructure
Development

Orion Infrastructure Ltd.


- Implementing of the landmark project
12.0 km long Mayor Mohammad Hanif
Project under BOOT Basis, the first PPP
project in Bangladesh. The major part
is completed and opened for traffic.

Pharma &
Healthcare

Orion Pharma Ltd.


- Manufacturing general pharmaceutical
products through 100 brands and 250
presentations
Orion Biocare Ltd.
- Manufacturing
herbal,
ayurvedic,
nutraceutical, probiotics, prebiotics &
herbal cosmetic products
Orion Infusion Ltd.
- producing Intravenous Fluids (IV) like
Rehydration
Solution,
Electrolyte
Solution, Antiulcerant Solution

Power Generation

Orion Power Meghnaghat Ltd.,

7 | Page

- a 105MW HFO based power generation


facility in Dhaka
Dutch-Bangla Power & Associates Ltd.
- another 104MW HFO based power
generation facility
Digital Power & Associates Ltd.
- An 102MW HFO based IPP
Orion Power Dhaka Ltd
- under construction of a 630 MW Coal
based IPP
Orion Power Khulna Ltd.
- under construction of a 630 MW Coal
based IPP
Real Estate

City Centre
- the
40-storied
and
the
tallest
commercial-cum-parking complex in
the country.
Orion Properties Ltd.
- Engaged in construction of apartment
complexes.

Sports & Events

Orion Sports Ltd.


- Franchise
namely
Khulna
Royal
Bengal (KRB) to play Bangladesh
Premier League (hereinafter referred
to as BPL) for international T20
cricket tournament.

Textiles & Garments

Orion Knit Textiles Ltd.


- 100% export oriented composite knit
textile unit

Home Appliance

Orion Home Appliance Ltd.


- home appliance products for domestic
market.

Milestone Achievements of ORION


Among all segments that Orion is working on, we would furnish at
a glance the following few notable involvements most of which are
milestone achievements:

8 | Page

1) INFRASTRUCTURE: Orion has recently completed the


implementation of the construction of 12.0 km flyover Mayor
Mohammad Hanif Flyover in the country under PPP. This
milestone project is the first PPP and the LONGEST of this
nature to date based in Bangladesh on a Build Own Operate
and Transfer (BOOT) structure in Bangladesh. The success of
the project has already set the parameters against which all
future PPP projects will be judged in Bangladesh.
2) CONSTRUCTION: Orion has constructed City Center, the
TALLEST building of the country and the 40-storied
commercial complex cum car parking in Bangladesh;
3) POWER GENERATION: Orion generates 3x100MW electricity
and distributes to National Grid from its 3 (three) HFO based
power projects that are developed as the FASTEST projects
in record completion times of just 9 months each with
complete brand new machineries and equipment by Wartsila
OY, Finland.
Apart from that, Orion is currently developing 2 (two)
Supercritical Coal based IPPs with a range of 660MW each in
two places of the country. Both the projects will be the single
BIGGEST power generation projects in Bangladesh. GE of
the USA and Alstom of France are providing the main
equipment in the projects. The construction will be completed
in 2016.
4) PHARMA & HEALTHCARE: Orion runs 3 pharma
manufacturing plants in the country producing general drugs
and LVPs. Orion is now constructing the LARGEST
pharmaceutical plant (Pharma Park) with all manufacturing
facilities like general & anti-cancer, hormone, IV fluids, biocare and natural care products.
5) COSMETICS & TOILETRIES: Orion owns the 2nd biggest
cosmetics plant in the country with the well known Tibet
brand which has been very popular among the middle income
and rural people of the country for ages.

9 | Page

6) FOOD & HI-Tech AGRO PRODUCTS: Orion owns and operates


the BIGGEST growing, processing & freezing Mushroom
plant in Bangladesh which produces 100% export oriented
fresh small button mushroom.
HOSPITALITY EVENTS & CATERING MANAGEMENT
Orion has a wide experience in successful running of a world class
convention Center, the Bangabandhu International Convention
Center (BICC). Awarded through a lease contract by the
Government for 5 years, Orion had this true experience of running
the biggest and the top notch convention center of the country.
BICC is the only multi-purpose convention facility in the country,
having 17 venues holding state functions, social events, seminars,
conferences, product launches, annual general meetings, fairs,
exhibitions, cultural programs, reality shows, etc. Orions
Professional and skilled team consisted of world class chefs, highly
skilled Managers and well trained catering team. Orion has
successfully and effectively contributed to the Event Management,
Hospitality Management & the Catering in holding this prestigious
event with its own well trained and highly experienced team.
Most of the team members are still working with Orion Group.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Enliven Patients Assistance Program (EPAP)
As a continuation of CSR practice, Orion Pharma introduces
Enliven Patients Assistance Program (EPAP). EPAP is an endeavor
to provide Enliven capsule (Imatinib 100 mg) at subsidised price or
in some cases at free of cost for the underprivileged blood cancer
patients in Bangladesh. Founded in 2004, EPAP has served more
than one hundred CML (Chronic Myeloid Leukemia) patients so far
with a vow of maintaining this further.
Orion Medical Scholarship
Orion Pharma Ltd. has decided to be with those masterminds in
this voyage towards a noble mission by offering scholarship to
those medical students of the country who cannot afford the
exorbitant cost of medical education. Orion Pharma Ltd. is offering

10 | P a g e

scholarships to 20 (twenty) students from different Govt. Medical


Colleges with 4 (four) students from each academic year (1st year
to 5th year).
Sports & Events
As part of its CSR activities Orion Group has been one of the key
promoters and patron of sports in Bangladesh over the years. The
Chairman of ORION GROUP, Mr. Mohammad Obaidul Karim is the
President of countrys prominent Mohammedan Sporting Club Ltd.
Orion Sports & Events Ltd. has procured a Franchise namely
"Khulna Royal Bengal" in BPL T20 tournament to be able to
achieve its social objectives of promoting and nurturing talent,
especially young cricketers in the areas around Khulna at the
grass-roots level. Orion hopes to continue in this path of
patronizing the sporting sector of Bangladesh and will implement a
form of corporate self-regulation integrated into its business
model.
FINANCIAL STRENGTH OF ORION GROUP
Apart from Orions remarkable experience in pharmaceuticals
sector over the years, we have widely invested in establishing large
scale infrastructure projects like power plants, multi-storied
commercial buildings, elevated expressways. Till date Orion has
successfully raised more than USD 500 million from the financial
markets in Bangladesh for various projects.
The Financial Summary of the Group is annexed herewith as
Appendix-A.

11 | P a g e

MARKET BACKGROUND
The restaurant and fast food industry analysts and the Government
are very positive about the growth of this sector as it can be a
driving force for the economy. According to the PESTEL analysis,
the restaurant & fast food industry in Bangladesh has a positive
external environment in overall because although pattern of food
consumption may vary due to the differences in culture, climate,
socioeconomic status, the habit of taking food among the
inhabitants of a country can change due to several factors.
Thus globalization, economic and income growth has led to an
increased amount of restaurant and fast food consumptions in
Bangladesh like any other Asian country. Today fast food &
restaurant industry is a highly growing sector in Bangladesh.
The fast food & restaurant industry worth around USD 2.5 million
of sales only in the capital city everyday, which puts the gross
revenue of these retailers at USD600 million annually (Bhuiyan
2010). The size of the industry has become up to BDT 4000 crore
(USD1.0 = BDT 81.00) and its still growing. Hence, it is high time
for Orion to consider this project seriously in accordance of the
below stated facts:
i. Young population, groups and random parties (corporate &
occasions) with highly globalized taste for products and
services;
ii. The success of brands like in Pizza Hut, KFC, Gloria Jeans
Coffee, Dominoes Pizza portrays the viability of such ventures
in the country.
iii.

Orion Groups proven track record.

RESTAURANT MARKET IN BANGLADESH


Bangladesh is experiencing a steady economic growth which has
fueled a huge demand for various products including quality
restaurants, fast food chains and cafes. Like other developing
12 | P a g e

nations in the South-East Asian region, Bangladesh is trying to


adhere to open market policy to capitalize on its GDP growth.
From market point of view, the Restaurant and Institutional (HRI)
Sector of Bangladesh has seen consistent annual growth of over
7.5 % since 2008, fueled by growth of the domestic middle class
and the high rate of GDP growth. The sectors contribution to the
countrys GDP was $924 million in FY 2011-12, and $843 million in
the FY10-11; The Daily Sun reported on January 7, 2013, that the
Bangladeshi middle class is estimated at no fewer than 30 million
(20 percent of the population), a number more than the population
of Sweden, Norway, and Denmark. Another study by the
University of Dhaka indicates 31.3% (or 47 million) of Bangladeshs
150 million population may now officially be categorized as middle
class, with an additional 4 million rich or affluent. These
estimates stand in contrast to the estimated 10 percent of the
population considered middle class in 2007. Conversely, World
Bank data indicate officially defined poverty has been reduced from
half the population in 1996 to under a third today. Tourist arrivals
in CY 2010 marked a 13.58 percent rise compared to CY 2009,
according to government statistics. International tourism receipts
(in USD) were last reported at $77 million in 2009 and $103 million
in 2010, according to a 2012 World Bank report.
The below tables gives the summary of the HRI sector of
Bangladesh.
Fiscal Year (July/June)
HRI Sector GDP, million Taka at
nominal prices
HRI Sector GDP, million USD at
nominal prices
Annual Growth (in %) Base Year
1995-96
Contribution to GDP (in %)
Average Exchange Rate BDT=$1

200708
38,88
9
567

200809
44,59
8
648

200910
51,50
1
744

201011
59,98
0
843

201112
71,78
0
924

7.55

7.58

7.61

7.55

7.6

0.7
0.71
0.72
0.73
0.74
68.6
68.8
69.2
71.2
77.7
Source: Bangladesh Economic Review 2012

13 | P a g e

Fig: HRI Sector GDP 2007-2012

Fig: HRI Sector Annual Growth 2007-2012

14 | P a g e

ABOUT BURGER KING


Burger King (BK) is a global chain of hamburger fast food
restaurants which is the second largest fast food hamburger chain
in the world. Founded in 1954, it is reported that it had over
13,000 outlets in 79 countries today. Burger King Restaurants are
known for serving high-quality, great-tasting, and affordable food &
every day, more than 11 million guests visit Burger
King restaurants around the world. Known as the original Home to
Whopper, Burger Kings commitment to premium ingredients,
signature recipes, and family-friendly dining experiences is what
has defined the brand for more than 50 successful years. BK has
historically used several variations of franchising to expand its
operations. The Burger King menu has expanded from a basic
offering of burgers, French fries, sodas, and milkshakes in 1954, to
a larger, more diverse set of product offerings. This hamburger
chain has a huge potential to penetrate the Bangladeshi restaurant
industry and be very successful.
Burger King Growth & Market Potential

Fig: Burger King Restaurant Growth 2010-2013

Burger King has grown significantly in the last few years as


shown in the above Figure.

15 | P a g e

FRANCHISE TIE UP
ORION GROUP strongly believes in the potential of the Restaurant
& Fast Food industry in Bangladesh and wants to provide impetus
to this sector by integrating the most recognized chain restaurants
of the world to the marketplace. The Restaurant & Fast Food has
seen a massive growth over the last two decades driven by
increased income level of consumers and harmonization of
consumers taste due to globalization. Todays world is defined by
more consumers who are better aware of their needs and wants.
We increasingly see more people who show more specialized
demands and who are willing to pay the premium to get that
service. The demographics of Bangladesh are characterized by a
young population living increasingly high paced urban life. This
fact creates a huge opportunity for the global restaurant chain in
Bangladesh. If we observe our Asian neighbors like Singapore,
Malaysia, Thailand and India, it becomes conspicuous that
restaurant & fast food industry can play a pivotal role in shaping a
courtiers economy and image. As well, food spans from need to
want and beyond when we add taste and variety to it. The
restaurants industry is a pretty enormous one in Bangladesh which
attracts Franchises all over the world.
An upscale restaurant is characterized by offering a full menu, full
table service, quality food made with fresh ingredients and
personalized service. The upper end of this segment is a fine dining
restaurant which generally offers high quality food, dcor and
service and charges high prices. As a nation, hospitality is deep
rooted into the Bangladeshi culture. Food spans from need to want
and beyond when we add taste and variety to it. The restaurants
industry is a pretty enormous one in Bangladesh which attracts
Franchises all over the world.
HOSPITALITY & EVENT MANAGEMENT EXPERIENCE

16 | P a g e

Orion has a strong core


Management experience in
running the world class
convention
Center,
the
Bangabandhu International
Convention Center (BICC)
for Five (05) years, under
Agrabad Accom Consortium
Limited
(AACL),
a
prestigious concern of Orion
Group.
Orion has held
highest rating programs like
state functions, social events, seminars, conferences, fairs,
exhibitions, cultural programs, reality shows, etc that called for
massive interaction of visitors. It has been the venue for many
renowned economic, social and cultural events. Orion proudly
hosted a number of international conferences and summits. Our
Professional and skilled Management team consisted of world class
chefs, highly experienced Managers and skilled and well trained
catering team made this venue one of the finest convention centers
in this sub continent. Orion has successfully and effectively
contributed to the Event Management, Hospitality Management &
the Catering in holding this prestigious event with its own well
trained and highly experienced team. Most of the team members
are still working in Orion.

ORIONS INTEREST
Given the above success and experience in consideration,
Orion Group would be happy to clinch the exclusive
Franchise of Burger King (BK) in Bangladesh on long term
basis.

17 | P a g e

BUSINESS PLAN
Tips: Offer and Approach to Customers

In Bangladesh, Burger King will be similarly popular to Kids,


Teenagers and adults between 20-50 years. So the packages
offered by Burger king like Smart Shopper, King Box, Fast
Food Fan & Health Conscious would be perfect.
But the most important factor that Burger King must adopt to
enter and do business in Bangladesh is by offering & ensuring
Halal Food, as our society being very conservative based on
Religion & Culture. This is a vital aspect of the Franchisees
entering Bangladesh that they must ensure Halal Food to respect
the values of the Bangladeshi culture. It is also suggested that BK
should innovate some products or introduce new products keeping
in mind the high demand of Spicy & Crispy Food in Bangladesh
which is very popular here. Bangladeshi people are huge
consumers of Rice and also vegetables along with meat, thus
Veggie delights with Rice items will go very well apart from the
main course, the Burger. The existing Franchisees namely, KFC,
BFC, Pizza Hut etc have strictly ensured Halal Food along with the
targeted population preferred tastes, which made them very
successful over the years. Burger King with innovation in their
items or introduction to newer items can be very successful here
in the country. Some suggestions regarding the Menu could be as
follows:

18 | P a g e

Rice: Rice is the primary staple food in Bangladesh so it would be


a great idea to introduce Rice items. This could include different
Fried Rice, Plain Rice, Basmati Rice items which would go very
well for Lunch or late Dinner along with Spicy curries. Existing
franchisees have introduced Rice items along with their Regular
items and are doing very well.
Salad: Salad is popular among the people it would be preferable if
innovative salad items like, Black Forest chicken salad, Cold cut
combo salad, tuna Salad etc can be added to the Menu.
Burgers: The Burger Patty could be made from different types of
fish, steaks, Chicken Teriyaki, Veggie delights (only vegetable
based), etc which would be newer versions from the current
existing Menu.
Chicken Strips and Nuggets: There could be options for
providing spicy Chicken strips & nuggets which the customers in
Bangladesh would love to consume.
Dessert: Some new types of ice creams and dessert items could
be also added to the Menu, just to add more variety and flavor to
the current Menu.
Drinks & Coffee: Some new Coffee options would be added as
Coffee is very popular in Bangladesh. Coffee would attract a great
deal of customers from young to old people.

Target Customers & Locations

19 | P a g e

We would target customers from all ages from kids to adults aged
up to 60 years old. The prime target is the students from the
Private Universities where the Business has tremendous potential
to flourish. Currently Bangladesh has over 80 private universities
where most of them located in Dhaka in Posh areas like
Bashundhara, Banani, Dhanmondi, Uttara etc, where the
development of numerous Franchisee Restaurants and Fast Food
shops have been established. In Dhaka, North South University,
American International University, Independent University of
Bangladesh, East West University, Prime University, Presidency
University, South East University etc are very Popular, which have
attracted numerous fast food chains. In Chittagong, Chittagong
University, Chittagong University of Engineering & technology,
East Delta University, International Islamic University, Chittagong
Premier University etc also have opened up the market for fast
food and restaurant franchisees.
We propose to introduce BK Express design kitchen format
(discussed later) for the Universities containing their own
campuses and cafeterias, which is in most of the universities. This
would be simply perfect setup in the Popular Booming Universities
like North South University (NSU) (Bashundhara R/A), American
International University Bangladesh (AIUB) (Banani), Independent
university
Bangladesh
(IUB)
(Bashundhara
R/A),
United
International University (UIU) (Dhanmondi), Prime Asia University
(Banani) etc. If in case we dont get a chance to implement the
kitchen concepts of Burger King inside the Campuses, we can still
situate the stores near the Universities in these targeted posh
areas where the Business Potential is still very high.
Apart from these Primary targeted segment, the Burger King
would have to be ready for the crowd of Kids, Teenagers, Adults &
people of all ages to visit and dine according to their Meal
preferences.
KITCHEN FORMAT & DESIGN

20 | P a g e

Burger King shops can range from Super Mini to Standard,


depending on the site we choose for the establishment. However it
is evident that we can accommodate large spaces for the standard
size and also smaller spaces for the super minis. The best design
that can be considered for the store would be the LCCR which is fit
for prime locations with limited area and gives a garden feel,
relaxing and cozy. Whereas BK Express is suitable for variety of
places and locations and the effective investment and higher ROI is
expected. But the 20/20 Design & Dessert Kiosk could also be
considered depending on the area space, customers and the
investment made. These 2 formats can be established as other
Franchisees have managed to do getting reach of huge posh areas
in Dhaka City. The advantage of the 20/20 Design and the
Dessert Kiosk can be very great brand building assets and
extremely attractive investment return ratios.
MARKETING & SALES EXPERIENCE
ORION has an well-experienced Marketing Division consists of
talented, experienced, skilled & well trained individuals who have
played a huge role in spreading our Brand Image throughout the
country and abroad. The marketing department itself is an existing
body which has successfully marketed our products and making
our member companies very profitable. We have vast sales
experience and our brand image is very high.
MANPOWER PER STORE

21 | P a g e

Opening Hours from 8AM-11PM. The target is 14 shifts/week with


2 shifts a day. Each shift consists of 8 hours. We can accommodate
2 Managers, 3 Assistant Managers and 20-30 Team Members.
MARGIN & MAJOR ADMIN EXPENSES IN RESTAURANT
MARKET
Upon interviewing few entrepreneurs, we have noted that gross
margin amongst the restaurants in Bangladesh varies from 30% ~
40%. Major admin & selling expenses include rental, royalty,
depreciation, marketing & advertisement etc.

22 | P a g e

MANAGEMENT HIERARCHY
BOARD

Managi
ng
Directo
r/CEO

Chief
Financi
al
Officer

General
Manager

Restaurant
Manager

Executi
ve Chef

Head
Waiter
Drinks

Butler

Logistic
s&
Service

Nutritionist

Accounts
&
Finance

Purchase

Quality
Assuranc
e

Head
Waiter
Station

Carver

Head
Waiter
Buffet

Waiter

Butler

Waiter

Resumes of the Managing Director / CEO and the General Manager


are enclosed as Appendix-B.

23 | P a g e

TRANSACTIONAL OVERVIEW
Master Franchise & Development Agreement
The Master Franchise & Development Agreement with
exclusive rights to develop business in the territory will be
provided by Franchisor Burger King Corporation.
5 Year Development Plan, commitment and predefined
targets
For the start, we are proposing 3 potential places in Dhaka for
Burger King: 1) Gulshan / Banani, 2) Dhanmondi, 3) Uttara,
where we have surveyed and found them as the most potential
areas. As well, the other international Franchisees have created
hubs to attract the people. In terms of Outlets, we have
considered the following number of outlets for first 5 years:
In Dhaka
: 3 outlets; (1st year target)
then subsequent following years:
In Dhaka
: 7 outlets
In Chittagong
: 4 outlets
In Sylhet
: 3 outlets
In Khulna : 3 outlets
Master Franchise & Exclusivity Fee

The Company offers Master Franchise & Exclusivity Fee of

US$ 1.1 million.


Exclusivity to be the sole Burger King developer with full sub
franchising rights.

The Franchise will be initially made for 20 years then may


subsequently be extended upon mutual understandings.

Royalty rate of 5% to BKC


Agreed
Minimum contribution of 5% of revenues to Advertising
Fund to be managed and spent by the Master Franchisee?
Agreed

24 | P a g e

Franchise fee of US$60k per store, paid once for each 20


Year period?
Agreed
Reimbursement of Franchise Expenses (lawyers, market
studies, supply chain assessment, etc)?
Agreed

COMPETITIVE LANDSCAPE
Consumer taste and personal income drive demand. The
profitability of individual companies depends on the ability to
secure prime locations, drive store traffic, and deliver high-quality
products. Large companies have advantages in purchasing,
finance, and marketing. Small companies can compete effectively
by offering specialized products, serving a local market, or
providing superior customer service. The industry is laborintensive. Chain restaurants & fast foods shops compete with
businesses such as convenience stores, gas stations, quick service
and fast food restaurants, gourmet food shops, and donut shops.
Competitors
Competition will be high as there is existence of strong Franchises
like KFC, A&W, Pizza Hut, Nandos etc. Apart from these fast food
chains, there are also numerous Restaurants like Topkapi, Abacus,
Xenial, Xindian, Khazana in the Gulshan, Dhanmondi and Uttara
areas in Dhaka which will also be strong competitors.
Bangladesh restaurant & Fast food industry has greatly matured
over the course of last two decades. Globally recognized names like
Pizza Hut, KFC, Dominoes, Baskins Robins are doing good business
and are gradually expanding into cities other than capital Dhaka
like Port City Chittagong. The restaurant and caf culture is
relatively new to Bangladesh and has only taken off substantially in
the last two decades. But this particular segment has a huge
potential given the surge in demand bolstered by the needs and
demand of the urban dwelling population.
The massive harmonization of taste that has occurred over the last
two decades through the advent of satellite television and internet
25 | P a g e

has successfully created a market niche for such products and


services. Even though the industry is new, the very recent trend
shows tremendous growth in this industry introducing high end
restaurants with specialization in one cuisine and authentic cuisine
specialist to serve even the pickiest consumer from foreign
countries. Like Samdado, Nagasaki, Izumi, etc. provide Japanese
cuisine; OCalcutta, Koyla, Heritage, etc. offer Indian cuisine;
KebabZone, Kebab Factory, Dhanshiri, Star Kabab provide
Pakistani & Gulf cuisines; Moos barn, El Toro, etc. provide
Mexican cuisine; Spaghetti Jazz, Zizzi Ristorante, etc. present
Italian cuisine; Le Saigon provides Vietnamese cuisine; Lemon
Grass, Royal Thai, etc. offer Thai cuisine; Mainland China, Golden
Rice, Pan Tao, etc. present Chinese cuisine; Doomiok, Koreana
Restaurant, Arirang, Sura, etc. provide Korean cuisine; Caspian
Persian Cuisine provides Persian cuisine. Other than specialization
in one cuisine, many restaurants serve more than one cuisine like
Topkapi, Aristocrat, Baton Rouge, Casablanca, Platinum Suites,
Red Tomato, Atrium, Abacus, Broccoli, Xenial, Xindian, etc.
Signature restaurants and chains by international celebrity chefs
are also in Bangladesh like Khazana by Sanjeev Kapoor. Imported
ingredients based restaurants are emerging in Bangladesh like
Steak House for steak and Spitfire for Bar-B-Q and grill. Also there
are Star, Fakruddin Biryani, Purnima, Hajhi Biryani, Kasturi
Garden, Shad Tehari Ghar which represent Bangladeshi cuisines
mainly Asian.
Following is a list of premium restaurants, fast food and coffees
operate in Bangladesh:
RESTAURANT QUICK REFERENCE
AFRO-PORTUGUESE ASIAN
BANGLADESHI
Nandos
Seasonal Tastes
Purnima, Karai Gost
The 8
Kasturi, Khusboo
Dhanshiri, Koi
Pabda
BBQ & GRILL
Kebab Zone, Spitfire
Bar B Q Tonight
Star Hotel, Jharna Grill

CHINESE
FRENCH
Golden Rice, Mainland Le Souffl
China, Samarkhand,
Shing Heong,
Bamboo Shoot
26 | P a g e

GREEK
Casa Greek

INDIAN
INDONESIAN
Baton Rrouge,
The Sky Room
Bukhara, Dish &
Dessert, Efes,
Heritage, Oh Calcutta,
Sajna, Santoor,
Topkapi, Ulta Voot

INTERNATIONAL
IRANIAN
Cafe Bazar, Charcoal Caspian
Steak House, Flambe,
Palm View
Steakhouse, The
Glasshouse Brasserie,
Vintage Restaurant
Watercress, Water
Garden

ITALIAN
Club Wheels
Ciao Bistro
Don Giovanni, Prego
Spaghetti Jazz, Bella
Italia

JAPANESE
Ichi, Izumi, Samdado
Wasabi

KOREAN
Aarirang, Sura,
Koreana
Korean Club &
Restaurant The
Restaurant

MEXICAN
Sublime, El Toro

MULTI CUISINE
Grandiose Restaurant

SEA FOOD
Lake Terrace
Saltz

CAFE
Gloria Jeans, North
West Caf, Barista
Lavazza
Coffee World

FASTFOOD
KFC, Pizza Hut, Pizza
Inn
Helvetia, A&W

THAI
@ Corner, Bamboo
Shoot
Pan Tao, Royal Thai
Soi 71, Thai House

TURKISH
Istanbul

SWOT Analysis
STRENGTHS
The strength is that the government of the Peoples Republic of
Bangladesh is very welcoming and accommodative towards foreign
Franchisees and Investors who willing to invest and do Business in
Bangladesh. Today Bangladesh accommodates lots of World Class
Franchisees namely KFC, Pizza Hut, Kenny Rogers, A&W and many

27 | P a g e

renowned Restaurants. It should also be mentioned that


Bangladeshi people are historically food lovers and spend a lot
behind consumption of food, especially fast foods. The restaurant
business has thus flourished significantly in the last decade.
WEAKNESSES
City Centers are the only potential places for the Burger King
Franchisee to give a good start but it would be challenging for it do
get accommodated it a proper location in the City Centre of Dhaka
as its already have lots of fast food chains existing, and finding a
proper space for site in the City is a great challenge.
OPPORTUNITIES
The size of the population, the craze for fast foods especially
renowned brands, and the governments regulations & the
governments openness towards welcoming Franchisees from
abroad is a great opportunity for the Burger King Chain.
THREATS
Competition from other Fast Food Franchisees & Restaurants
would be a threat.

OBJECTIVES
Offer high-quality food and a wonderful experience at
reasonable prices
Prepare and sell quick service food accurately, quickly,
courteously, and in a cleaner
environment than the
competitors.
Conduct all the business affairs ethically, and with the best
employees.
Continue to grow profitably and responsibly, and provide career
advancement opportunities for every willing member of our
organization.
Provide customized menu choices to meet customers individual
diets and lifestyles.
Develop Innovative Menu using trained chefs.

28 | P a g e

You might also like