Table of Contents
TOC o “1-3” h z u Introduction PAGEREF _Toc524560358 h 2Company Summary PAGEREF _Toc524560359 h 3Objective PAGEREF _Toc524560360 h 3Keys to Success PAGEREF _Toc524560361 h 4Goals PAGEREF _Toc524560362 h 4Mission and Vision PAGEREF _Toc524560363 h 4Target Market Specification: PAGEREF _Toc524560364 h 4Market Segmentation PAGEREF _Toc524560365 h 5Target Market PAGEREF _Toc524560366 h 5Positioning: PAGEREF _Toc524560367 h 5Market Analysis PAGEREF _Toc524560368 h 5Customer analysis PAGEREF _Toc524560369 h 5Competitive Landscape PAGEREF _Toc524560370 h 6Market Needs PAGEREF _Toc524560371 h 6Environmental Analysis PAGEREF _Toc524560372 h 6Political Factor PAGEREF _Toc524560373 h 6Economic Factor PAGEREF _Toc524560374 h 6Social Factors PAGEREF _Toc524560375 h 7Cultural Factors PAGEREF _Toc524560376 h 7Technological Factor PAGEREF _Toc524560377 h 7Environmental Factor PAGEREF _Toc524560378 h 8Legal Factor PAGEREF _Toc524560379 h 8SOWT Analysis PAGEREF _Toc524560380 h 8Service marketing mix PAGEREF _Toc524560381 h 9Products or Service PAGEREF _Toc524560382 h 9Price PAGEREF _Toc524560383 h 9Place PAGEREF _Toc524560384 h 9Promotion PAGEREF _Toc524560385 h 10Physical Evidence PAGEREF _Toc524560386 h 10Process PAGEREF _Toc524560387 h 10People PAGEREF _Toc524560388 h 11Transport and Facilities PAGEREF _Toc524560389 h 11Company Ownership PAGEREF _Toc524560390 h 11Start-up costs and funding PAGEREF _Toc524560391 h 12Start-up Requirements PAGEREF _Toc524560392 h 12Table of fixed asset and costs of the business PAGEREF _Toc524560393 h 13Financial Plans PAGEREF _Toc524560394 h 13Break-even Analysis PAGEREF _Toc524560395 h 14Projected Profit and Loss PAGEREF _Toc524560396 h 14Conclusion PAGEREF _Toc524560397 h 15
“Move on” is a privately owned movable fast food stat up business dedicated to providing excellent quality food to the service holder, students, businessman of Dhaka city who mostly travel by public transport and has less time to eat due traffic jam. It will focus on some specific routs of Dhaka city. Currently there is no such restaurant in Dhaka city. After spending several months in deciding the routes for the bus to move along the city we have fixed four routs for the buses of Move On. They are Motijheel to Mirpur, Motijheel to Uttora, Dhaka University to Mirpur (via Dhanmondi), Dhanmondi to Uttora. Move on will provide a combination of excellent food at value pricing. It is the answer to an increasing demand for fast food.
Company SummaryMove On is a new Moveable Restaurant service started in the city’s four important routes. It is a Partnership Business (managed by Khadiza Tun Nishat and Sadia Afrin). Bushra Mahbub; Partner of Move On has three years experience in the hospitality industry. His friend and company co-owner, Nahida Nayom has two years experience as a Manager. Both of them successfully conducted a food business in Dhaka city. Their focus is to meet or exceed the customer expectations for an exceptional quality food that is served to be eaten on the move or taken out quickly, and in a friendly manner. The company will serve almost half of the city with four buses transferred into a moveable restaurant with a target market of 5000 customers on the route.
Move On’s prices will not beat the competition. We are aware that we cannot compete on price only. That is why we prefer to focus on assessing customer expectations, and our core competencies, decide which expectations we can reasonably meet, then make sure to constantly exceed them whole heartedly. Thus, we will be able to maintain and increase the level of customer satisfaction, as a strong foundation for future growth.
The Buses will start from the starting points at a fixed time daily and it will maintain its time schedule in a very strict way, so that customer’s purpose of avoiding the traffic jam may fulfill.ObjectiveTo attract a minimum of 250 customers per day who will travel along the routes and take their Breakfast or lunch in the first year of operation
To offer our customers excellent food which will be served hot at a reasonable price and provide outstanding customer experience, measured by minimum 5% yearly sales growth and customer complaints less than 1%
To form a presence as a successful local fast food and achieve a market share in Bangladesh fast food industry.Keys to Success
Build a unique, innovative, entertaining menu that will differentiate us from the rest of the competitors
Must take certain policies that control costs all times and implement a conservative approach to growth policy
Always serve the products that are the highest quality
Endorse good values of company culture and business philosophyGoalsThe short term goals would be to pay back all the loans procured with interest if any loan needed. The long term goals include business to become an exclusive fast food among entire fast food of Dhaka city by providing higher quality of service, delicious food and quality transport which will meet the basic demand of its prospective for their satisfaction.
A future goal of the restaurant would be to expand and increase. In the long run we want to established ourselves as a leader in the local fast food market with a loyal client base, solid reputation and qualified employees.Mission and VisionMove On’s mission is to offer excellent food to the customers, Most of them whom would be Students, Service Holder, and Businessman along with free transport service along the route. We are committed to providing the service quality and value that our customers expect. Move On will use its strategy, staff, and systems to provide each customer with a seamless three-part customer experience — service product, service environment, and service delivery — each part of which will meet or exceed our customers’ expectations.
Our vision is to be a renowned moveable restaurant brand in the city in next 10 years, and a respected company as measured by our customers, our employees, and the community we live in.Target Market SpecificationMarket SegmentationIt has been seen that a number of young businessman are increasing very fast and these young businessman have tendency to spend more than adult businessman. These types of customer prefer well decorated, good food quality as well as service. The main market segments are Service holders and businessman who contribute more than 70% of our sales and students of different universities and colleges.
Move on will focus on its target market which are middle class people, along will local businessman and students that are located on the routes of the buses. The target individual customer prefers not to have a time consuming lunch or breakfast. We will strive to establish a reputable image from that target market perspective, by offering excellent quality foods, convenience, and transport services.
PositioningOur strategy is based on developing a strong customer value proposition in a new market. We are looking to offer Dhaka city a new method of travelling along the city while having food. We focus on satisfying the needs of middle class, corporate officials and businessmen as well as students.Market AnalysisCustomer analysisCurrently on a regular basis more than 200,000 people travels along the routes we have chosen. Most of them are service holders and businessman. The number of students is also high. Majority of these people travel by public transport and they have to face one other common problems in Dhaka city that is traffic jam. For this traffic jam so many people can’t reach in their destination on time and cannot have their breakfast and lunch properly. Sometimes due to traffic jam they even have to stay without eating for a long time. So, if Move On fast food can provide quality food along with transport facility, then people will obviously ride our buses to have food and to be carried to their destination. Our main target is to serve office going people in the morning and students and all sort of people in the noon. Also people can have snacks and coffee or tea while returning to home after all day of work.
Competitive LandscapeIn the past and now on there is no such fast food service in this country like Move On. The closest specialized in this sector are food carts on the street, in which the quality of the food is not up to the mark. Move On fast food will offer a better product, at a reasonable price, and will deliver the product hot or refrigerated, always serves it on time, to the customers on the move.
However, there are other fast food restaurants on and near our selected route location but the quality of their products is no match with our intended product. And they also don’t provide quick service which is our most important feature, but we may consider them as our competitor because they offer better prices (for lower quality) and they are located within the route location of our buses. Market NeedsA recent Consumer Trend and Analysis can be identified by the following needs among our target markets. Our selected group-
wants variety and flavor in its food, preferably something fried
wants speed in service
enjoys eating out
has an active and busy lifestyle
comes from various backgrounds
wants an entertaining and fun experience in their busy life
insists for clean, friendly, and fresh environment Environmental AnalysisPolitical FactorThe political factors affecting fast food industry can vary from country to country. There are regulations related to wages, hygiene and food quality that need to be complied with. Now a days 15% tax included in all food items. Governments also press the fast food chains to include healthier items on their menus. These are the most important political factors that affect the fast food industry. After all, it is the attitude of the governments towards the businesses that affects their performance.Economic FactorSpending per consumer has increased a lot. However, the size of individual spending on fast food has always depended on the economic conditions in specific markets. Most of the restaurants have included cheaper options in their menus and improved customer service. For that we also included some cheaper option in our menu without compromising the quality. A number of changes including increased health consciousness can affect Move On fast foods sales. Delicious food was insufficient to attract the customers. So, we supplemented it with increased convenience and low costs to encourage customers. Overall, economic factors are a very important to influence the fast food industry. To better adjust to low economic activity, we included low priced items. We added to the variety of products on the menu. Social Factors
Health and lifestyle trends also influence the fast food industry. Health awareness has affected the entire food industry. It includes not just fast food, but snacks and beverages and all other foods. People now think before they eat. Consumers’ changed attitude pressed us to include low calorie options. The social perception of health has changed vastly. Media has played its own important role in creating this perception. The fast food industry has faced heavy criticism for targeting young children. Moreover, the attack on junk food led to people adopting low calorie foods. Such changing social trends impact the sales of the Move On fast food. As a result, we had to adopt measures like showing the nutritional content on the label and reduce calories in the items. Cultural FactorsCultural factors might also play an important role since some cultures do not encourage the consumption of fast food. Still, most cultures have adopted it with changes to suit the local preference. In Bangladesh especially in Dhaka city people adopted fast food and prefer this industry. So if we provide healthy and quality food so people will prefer us quite well.Technological FactorTechnological factors have been an important influence on the fast food industry. This sector does not depend only on the attractiveness of its menu and the food quality. Social media and online ordering have changed the style of customer service. Social media channels became the most important venue for engaging customers. The use of digital displays and kiosks affected ordering and the costs of labor. It has helped us serve customers through innovative channels and in innovative ways. We engage our customers on social media and collect feedback through several channels. Competition in the industry is heavy. This is also a reason that technology has become important for fast food brands.Environmental FactorSustainability was another important factor to impact the industry globally. Changing government rules and regulations pressed the brands to adopt a greener approach. Food related regulations grew stricter. Targeting children and waste management were some areas where brands were forced to change their approach. A green approach has helped brands enjoy improved customer loyalty. Legal FactorLegal aspect of the fast food business has seen important changes happening during the recent decades. The pressure due to changing legal requirements has risen. Food quality and nutritive value are the major areas affected by law. Apart from it, packaging and waste management are also critically impacted. Overall, law imposed new demands on the fast food industry. The entire sector changed its approach towards marketing and sales. For us, it is important that they comply with the legal changes. Bus permit, licensing every legal things need to be updated.
Completely new theme to offer food
Relatively new idea in this fast food business
Glass door policy
Free transportation service
Comparatively high price
As it is movable difficulties occur in serving the food
Fast and growing want of this kind of fast food restaurant in Dhaka city.
In locality there is no one who is specialized in this time if fast food restaurant
Large segment is targeted
Free transportation service
Changes in the business environment that might reduce our sales
15% tax is applied on the food sector
Tight credit times, higher interest rate, and higher inflation rate than predicted.
Political instabilityService marketing mix Products or ServiceMove on will offer to its customer with following products and services
Healthy and tasty food on the move
Free transport service for the customers on the route, 4 times a day
Hygienic and modern kitchen with glass door policy
Fast and easy service 6 days in a week
Different specialized menu in different occasionsPriceOur retail and corporate customers are especially sensitive to the service value. Move on must ensure that price and service are perceived to be a good value to our customers. High quality food will be offered at a reasonable price, but the price will certainly not be the lowest in the area. Our pricing strategy will be completive within the various product ranges, but not rely on the selling price to overshadow other advantages of doing business with our company, such a diverse line of high quality food products, that are readily available, reasonably priced and backed by service excellence and transportation service. In addition, we recognize that price flexibility is critical to our success. We are prepared to offer discounts and allowances, sales promotion prices, and to reduce the price over limited periods of time during the slow-sales hours, in order to increase our operating capacity usage, and reduce or eliminate idle capacity and subsequent losses.PlaceAs we already know MOVE ON is a movable restaurant. We will provide our service on the buses. We have fixed four routs for the buses of Move On. They are Motijheel to Mirpur, Motijheel to Uttora, Dhaka University to Mirpur (via Dhanmondi), Dhanmondi to Uttora.PromotionAdvertising are considered as the backbone of business. We will use various methods to promote our restaurant.
We will throw an opening party to attract our potential customers. We will give them special gifts and discount for that day.
The leaflets, bearing the information about the restaurant and other materials with the restaurant logo like pen, calendars, and key rings, note pads will be distributed. The promotional message can be displayed on the buses, taxies. Special menu will be providing according to season. Special type of food will be offering during different occasion such as Eidul-fitar, Ramadan, Pohela boisakh (Bangla New Year) and so on. In addition, another special package will be offered for the students in reasonable price based.
Radio is most effective in the Dhaka city, followed by print media. Radio and newspaper advertising will include our core Service offering message, and the Food quality that we offer, in order to differentiate our service from the competition.
In addition, we will also distribute brochures near Uttara, Dhanmondi, Farmgate, Shahbag, and Motijheel. Facebook fan page and Twitter page will also be used in promotional activity.Physical EvidenceMove On buses will be purchased from BRTC. The old buses they have which are very much unused, will be purchased after judging their conditions. After purchasing all the buses will be renovated, painted with color, and furnished with our necessary equipments and kitchen tools.
There are several local manufacturers and suppliers of new equipment, food supplies, ingredients, packing, and accessories for food preparation. The specific restaurant equipment vendors will be chosen based on competitive bidding process. All the selected manufacturers produce and supply high-quality, energy-efficient kitchen and restaurant equipment.ProcessMove On is a typical Moveable restaurant where customers order food and drinks at the counter, and have their food in the sitting area while the bus moves along the route as opposed to sit-down restaurants that provides food. Our main products are food and drinks as ordered from menu. To prepare food, we use high quality ingredients and traditional recipes.
Energy-efficient food preparation equipment and technology will be available to our kitchen staff, as we plan to invest our capital in valuable long-term assets. Food can be delivered hot or refrigerated. Special package offers protection and quality conservation in case of take-out., along with other items ordered by the customer, such as soft drinks, cookies, or other dessert items.
Buses will be move along the route during the day time. We will offer breakfast and lunch and also snacks in the afternoon.PeoplePeople will include service employees, customers and other customers. Our management philosophy is based on team work, responsibility, and mutual respect. People who work at Move On would want to be part of our team because we operate in an environment that encourages creativity, diversity, growth, and performance.Transport and FacilitiesThe company’s Buses are very favorable, providing high comfort, nice outlook, and a
Better sitting arrangements (for travelers) wishing to visit at our restaurant. Accordingly, the buses will start from a specific location of the routes and travel along the routes while customers will have their food on the journey, and after eating, at their convenient places, they can get down from the bus. Other advantages of the chosen location include:
Music system to keep the journey more comfortable
Mobile Toilet system
Free Wi-Fi service for the customers
Strategically located on the busiest streets in the city
All utilities required for operating a restaurant are available
All these characteristics of the Buses are consistent with Move On’s goal of providing excellent food supply and transportation service
As the company gains community recognition, and our City market is developed, further expansion to more buses and routes will be considered as a possible second stage capital investment option.Company OwnershipMove On will be a partnership business and the partners are Khadiza Tun Nishat, Sadia Afrin, Nahida Noyom and Bushra Mahbub. At the time of formation, Move On will be owned equally and the liability will be equal for the above mentioned partners.
The operations will be carried on by Khadiza Tun Nishat and Sadia Afrin. But all the other members will have the same amount of voting right. No decision regarding to extend the business will not be taken without the permission of all the other members.Start-up costs and fundingThe start-up capital will be used for legal expenses, kitchen inventory and equipment, packing and other materials, insurance, promotion, business sign, and inventory on hand at start-up.
We have estimated total start-up costs of 18,000,000. The numbers in the start-up and the start-up funding tables are meant to reflect these estimates. The company capital will be 10,000,000.
Each Partner, as co-owners, will provide the bulk of start-up financing in the amount of 2, 500,000. Approximately 8,000,000 additional funding is needed. The purpose of this business plan is to secure financing for that amount.
Company plans to receive a five-year term commercial loan facility which will meet the cash flow requirements. The borrowed funds will be used exclusively to buy equipment, based on the list that will be made available to the lending institution. The loan could be repaid in equal monthly installments over a five-year period. Our cash-flow analysis demonstrates the company’s ability to repay the loan and meet the interest payment obligations, while maintaining adequate liquidity and generating positive cash flow, and sufficient cash reserves for unforeseen future events.Start-up RequirementsStart-up Expenses In BDT
Business Sign 30, 000
Permits 800, 000
Other 700, 000
Total Start-up Expenses 27, 55, 000
Start-up Assets Cash required 17, 00, 000
Start-up inventory 120, 000
Long term Asset 83, 20, 000
Total Assets 10, 140, 000
Total requirements 12, 895, 000
Table of fixed asset and costs of the business
Item name Quantity Cost per item Total cost
Bus 4 15, 00, 000 60, 00, 000
Furniture ; Other Equipment 5, 00, 000 20, 00, 000
Fridge x 2 ; TV 4 80, 000 320, 000
Oven 4 15, 000 60, 000
Coffee machine 4 15, 000 60, 000
Total 8, 440, 000
Financial PlansAccording to our conservative estimates, Move On is expected to maintain a healthy financial position over the next five years. The following plan outlines the financial development of our company. The business will be initially financed by a BDT. 80, 00,000 10 years loan for purchasing the bus and a total capital investment of 1crore (BDT 2 million each members of the partnership).
The source to repay the loan will be the cash flow generated from operations. The company will also finance growth through cash flow. After an initial period of five years, the company will be able to make a further expansion. At that time, it is envisioned that a bank loan or equity funding will be sought to finance the new development, in addition to retained earnings.
The projected financial statements have been prepared in accordance with the general accounting principles, and necessarily include some amounts that are based on reasonable estimates and judgment. For accounting purposes, the long-term assets are expensed using the straight-line depreciation method, and inventory is accounted for based on the First-In, First-Out (FIFO) method. The following sections outline important financial information.Break-even AnalysisFor our break-even analysis, we assume running costs of approximately BDT 12, 00,000 per month, which include payroll, utilities, food supplies, insurance, Fuel of buses and other fixed costs. We need to sell our food for minimum 16, 00,000 per month to break even, based on our assumptions.
Since our normal operating capacity is expected to be much greater than the computed break-even point, we believe that our company is likely to easily reach and maintain profitability. Move On is expected to break even in the eleventh month of operations.Projected Profit and LossWe expect to be profitable in the first year of operations, with profits increasing over the next four years, as we establish and increase our customer base. The following table and charts show the projected profit and loss for five years.
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Sells 19,200,000 22,080,000 25,392,000 29,200,800 33,58,0920
Direct costs of Goods 7,800,000 8,970,000 10,315,500 11,862,825 13,642,248
Other production Expenses 1,500,000 1,725,000 1,983,750 2,281,312 2,623,509
Cost of goods 9,300,000 10,695,000 12,299,250 14,144,137 16,265,758
Gross margin 9,900,000 11,385,000 13,092,750 15,056,662 17,315,161
Expenses Payroll 3,408,000 13,919,200 4,507,080 5,183,142 5,960,613
Sales and marketing and other expenses 200,000 230,000 264,500 304,175 349,801
Depreciation 1,000,000 900,000 800,000 700,000 600,000
Utilities 2,400,000 2,760,000 3,174,000 3,650,100 4,197,615
Insurance 2,000,000 2,300,000 2,645,000 3,041,750 3,498,012
Others 250,000 287,500 330,625 380,218 437,251
Total operating expenses 9,258,000 10,396,700 11,721,205 13,259,385 15,043,293
Profit before interests and taxes 642,000 988,300 1,371,545 1,797,276 2,271,868
Taxes incurred 77,040 118,596 164,585 215,673 272,624
Net profit 564,960 869,704 1,206,959 1,581,603 1,999,244
ConclusionThis business plan will be using as a working tool for the successful operation of the “Move On” fast food. The location and route analysis, target market analysis, SWOT and competitor analysis all suggest that the fast food will be popular and successful. Our dedication is to run the business according to business plan we made which would work as a working tool. We will change our strategy according to trends. To acquire our objectives we will be looking at our sales, production, personnel, inventory, customer profile and demand, customer satisfaction, repeat customer, disbursements etc.