NATIONAL OPEN UNIVERSITY OF NIGERIA

UYO STUDY CENTRE

BUSINESS PLAN FOR THE ESTABLISHMENT OF A

RESTAURANT/FAST FOOD COMPANY

BY

MARY, ARTHUR EKEREOBONG

FACULTY: EDUCATION

COURSE TITTLE: BUSINESS CREATION AND GROWTH

COURSE CODE: GST302

APRIL 2020
 Marys Food

STUDENT PERSONAL DETAILS

NAME: Mary Arthur Ekereobong

MATRIC NUMBER: NOU181049453

EMAIL ADDRESS: johnmonica556@gmail.com

PHONE NUMBER: 08108301260

SEMESTER: 2020/2

SEX: Female

DISABLITY: None

CURRENT PROFESSION: STUDENT

PROGRAMME OF STUDY: B.Sc Biology (Edu)

FACULTY: Education

ZONE: South-South

SUSTAINABLE DEVELOPMENT GOAL: END HUNGER

 Marys Food

TABLE OF CONTENT

1.0 EXECUTIVE SUMMARY

1.1 OBJECTIVES
1.2 OUR SERVICES
1.3 SUSTAINABLE DEVELOPMENT GOAL
1.4 OUR MISSION AND VISION STATEMENT
2.0 BUSINESS STRUCTURE
2.1.1 CHIEF EXECUTIVE OFFICER (OWNER)
2.1.2 RESTAURANT MANAGER
2.1.3 HUMAN RESOURCES AND ADMIN MANAGER
2.1.4 CHEF / KITCHEN WORKERS
2.1.5 SALES AND MARKETING MANAGER
2.1.6 ACCOUNTANTS / CASHIERS
2.1.7 CUSTOMER SERVICES EXECUTIVE
2.1.8 CLEANERS
3.0 SWOT ANALYSIS
3.1 STRENGTH
3.2 WEAKNESS
3.3 OPPORTUNITY
3.4 THREAT
4.0 FINANCIAL PROJECTIONS
4.1 MARKETING PLAN
4.2 FINANCIAL PROJECTIONS AND COSTING
4.3 START-UP BUDGET AND EXPENDITURE
5.0 MARKET ANALYSIS SUMMARY
5.1 MARKET TREND
5.2 TARGET MARKET SEGMENT STRATEGY
5.3 COMPETITION
5.4 MARKETING STRATEGY
5.5 PAYMENT OPTIONS
6.0 FINANCIAL INDICATORS
6.1 SOURCE OF CAPITAL
6.2 FINANCIAL FORECAST AND PROJECTION
6.3 FINANCIAL PROFIT AND LOSS
6.4 GROSS PROFIT
7.0 CONCLUSION
 Marys Food

1.0 EXECUTIVE SUMMARY

MARY’S Food is a locally owned fast-food outlet that will be positioned as a
national franchise through our creative approach to the company's image and detail
presentation. MARY’S Food will provide a combination of excellent food at value
pricing, with fun packaging and atmosphere. MARY’S Food is the answer to an
increasing demand for snack-type fast food, to be consumed while window shopping
and walking around inside a shopping mall.

This plan is prepared to obtain a location for the initial launch of this concept.
Additional financing will need to be secured for the two subsequent outlets,
anticipated in month 13 and early in year three. The financing, in addition to the
capital contributions from shareholders, will allow MARY’S Food to successfully
open and expand through year two. The initial capital investment will allow
MARY’S Food to provide its customers with a value-driven, entertaining experience
through the creativity of its founder.

We are aware of the trend in the restaurant / fast food industry and we are not only
going to operate a system where our customers would have to come to our fast food
restaurant to make purchase or whatever they want, but we will also operate an
online fast food restaurant and our customers can place orders for our foods, snack
and drinks online and they will get it delivered to their houses or any location they
want us to deliver the goods to within Uyo – Akwa Ibomport State.

1.1 OBJECTIVES
 To establish a presence as a successful local fast food outlet and gain a market
share in Nigeria's fast food industry.
 To make MARY’S Food a destination spot for mallgoers.
 To expand into several outlets by year three and sell the franchise to
neighbouring metropolitan cities.
 Marys Food

1.2 OUR SERVICES

MARY’S Food is a restaurant / fast food industry to make profits and we will ensure
we go all the way to make available a wide variety of fast food and soft drinks to our
clients. Our product and service offerings are listed below.

 Operating quick-service restaurants

 Operating fast food services
 Operating drive-thru and take-out facilities
 Sale of Burgers
 Sale of Sandwiches
 Sale of Chicken and Chips
 Sale of beverages, such as water, juice and sodas

1.3 SUSTAINABLE DEVELOPMENT GOAL

We have a goal to end hunger and poverty in a sustainable way by ending

malnutrition, supporting, and investing alongside local farmers, and their
communities.

1.4 MISSION/ VISION STATEMENT

Our main goal is to be one of the most successful fast food outlets in Nigeria, starting
with one retail outlet located inside a major shopping mall as a "market tester." Our
mission is to establish chains of fast food restaurants that will make available a wide
variety of fast food and soft drinks at affordable prices to the residence of Uyo -
Akwa Ibom State and other cities in Nigeria where we intend opening our chains of
fast food restaurants.
 Marys Food

2.0 BUSINESS STRUCTURE

MARY’S Food, do not intend to start a fast food restaurant business just like the
usual mom and pop business around the street corner; our intention of starting a fast
food restaurant business is to build a standard business in Uyo - Akwa Ibom State.

Although our fast food restaurant might not be as big as other restaurants but will
ensure that we put the right structure in place that will support the kind of growth that
we have in mind while setting up the business. We will ensure that we hire people
that are qualified, honest, customer centric and are ready to work to help us build a
prosperous business that will benefit all the stake holders (the owners, workforce,
and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our

senior management staff and it will be based on their performance for a period of
three years or more. In view of that, we have decided to hire qualified and competent
hands to occupy the following positions;

2.1 ROLES AND RESPONSIBILITIES

2.1.1 Chief Executive Officer – CEO (Chief Florist):

 Increases management’s effectiveness by recruiting, selecting, orienting,

training, coaching, counselling, and disciplining managers; communicating
values, strategies, and objectives; assigning accountabilities; planning,
monitoring, and appraising job results; developing incentives; developing a
climate for offering information and opinions; providing educational
opportunities.
 Creating, communicating, and implementing the organization’s vision,
mission, and overall direction – i.e. leading the development and
implementation of the overall organization’s strategy.
 Marys Food

 Responsible for fixing prices and signing business deals

 Responsible for providing direction for the business
 Creates, communicates, and implements the organization’s vision, mission,
and overall direction – i.e. leading the development and implementation of the
overall organization’s strategy.
 Responsible for signing checks and documents on behalf of the company
 Evaluates the success of the organization
 Reports to the board

2.1.2 Admin and HR Manager

 Responsible for overseeing the smooth running of HR and administrative tasks

for the organization
 Maintains office supplies by checking stocks; placing and expediting orders;
evaluating new products.
 Ensures operation of equipment by completing preventive maintenance
requirements, calling for repairs.
 Updates job knowledge by participating in educational opportunities; reading
professional publications; maintaining personal networks; participating in
professional organizations.
 Enhances department and organization reputation by accepting ownership for
accomplishing new and different requests; exploring opportunities to add value
to job accomplishments.
 Defines job positions for recruitment and managing interviewing process
 Carries out staff induction for new team members
 Responsible for training, evaluation and assessment of employees
 Responsible for arranging travel, meetings and appointments
 Oversees the smooth running of the daily office activities.
 Marys Food

2.1.3 Restaurant Manager:

 Responsible for managing the daily activities in the restaurant (kitchen

inclusive)
 Ensures that the restaurant facility is in tip top shape and conducive enough to
welcome customers
 Interfaces with third – party providers (vendors)
 Reports to the Chief Executive Officer
 Attends to Customers complains and enquiries
 Prepares budget and reports for the organization
 Handle any other duty as assigned by the CEO

2.1.4 Chef / Kitchen Staff

 Make burgers, Mexican, chicken and chips, Asians, sandwiches and pizzas as
supervised by the kitchen supervisor
 Responsible for carrying out all casual or unskilled jobs in the restaurant
 Responsible for packaging burgers, Mexican, chicken and chips, Asians,
sandwiches and pizzas meant for delivery
 Handles any other duty as assigned by the restaurant manager

2.1.5 Sales and Marketing Manager

 Manages external research and coordinate all the internal sources of

information to retain the organizations’ best customers and attract new ones
 Models demographic information and analyse the volumes of transactional
data generated by customer purchases
 Identifies, prioritizes, and reaches out to new partners, and business
opportunities et al
 Marys Food

 Identifies development opportunities; follows up on development leads and

contacts; participates in the structuring and financing of projects; assures the
completion of development projects.
 Responsible for supervising implementation, advocate for the customer’s
needs, and communicate with clients
 Develops executes and evaluates new plans for expanding increase sales
 Documents all customer contact and information
 Represents the company in strategic meetings
 Helps increase sales and growth for the company

2.1.6 Accountant / Cashier:

 Responsible for preparing financial reports, budgets, and financial statements

for the organization
 Provides managements with financial analyses, development budgets, and
accounting reports; analyses financial feasibility for the most complex
proposed projects; conducts market research to forecast trends and business
conditions.
 Responsible for financial forecasting and risks analysis.
 Performs cash management, general ledger accounting, and financial reporting
 Responsible for developing and managing financial systems and policies
 Responsible for administering payrolls
 Ensures compliance with taxation legislation
 Handles all financial transactions for the organization
 Serves as internal auditor for the organization

2.1.7 Waiters / Waitress

 Promptly attends to customers in a friendly and professional manner

 Ensures that un-occupied tables are always set and ready for customers
 Marys Food

 Pulls out chairs for customers as they arrive

 Handle any other duty as assigned by the Chief Operating officer / restaurant
manager

2.1.8 Cleaners:

 Responsible for cleaning the shop facility always

 Ensures that toiletries and supplies don’t run out of stock
 Cleans both the interior and exterior of the store facility
 Handles any other duty as assigned by the shop manager.

3.0 SWOT ANALYSIS

Our intention of starting just one outlet of our fast food restaurant in Uyo - Akwa
Ibom State is to test run the business for a period of 2 to 5 years to know if we will
invest more money, expand the business and then open other outlets within the states.

We are quite aware that there are several fast food outlets all over Uyo - Akwa Ibom
State and even in the same location where we intend locating ours, which is why we
are following the due process of establishing a business. We know that if a proper
SWOT analysis is conducted for our business, we will be able to position our
business to maximize our strength, leverage on the opportunities that will be
available to us, mitigate our risks and be welled equipped to confront our threats.

This is the summary of the SWOT analysis that was conducted for MARY’S Food;

3.1 Strength:

Our location, the business model we will be operating on (physical chains of fast
food restaurants with active online presence), varieties of payment options, wide
varieties of fast food and soft drinks and our excellent customer service culture will
definitely count as a strong strength for MARY’S Food
 Marys Food

3.2 Weakness:

A major weakness that may count against us is the fact that we are a new fast food
restaurant – business and we don’t have the financial capacity to compete with multi
– million-naira chains of fast food restaurants.

3.3 Opportunities:

The fact that we are going to be operating our fast food restaurant in one of the
busiest streets in Uyo - Akwa Ibom State, provides us with unlimited opportunities to
sell our dishes to many people.

We have been able to conduct thorough feasibility studies and market survey and we
know what our potential clients will be looking for when they visit our fast food
restaurant; we are well positioned to take on the opportunities that will come our
way.

3.4 Threat:

Just like any other business, one of the major threats that we are likely going to face
is economic downturn. It is a fact that economic downturn affects purchasing /
spending power. Another threat that may likely confront us is the arrival of a new
sandwich shop, pizza shop or fast food restaurant in same location where ours is
located.

4.0 FINANCIAL PROJECTION

Sources of Income

Below are the sources of income, we intend to explore to generate income at

MARY’S Food:
 Marys Food

 Selling of local made dishes

 Selling of inter-continental dishes

 Selling of all kinds of drinks

 Home and office delivery of meals

4.1 MARKETING PLAN

A marketing plan is a comprehensive document or blueprint that outlines the
advertising and marketing efforts for the coming year. It describes business activities
involved in accomplishing specific marketing objectives within a set time frame.

This involves the following:

 Financial data
 Product data
 Sales and distribution
 Advertising, sales promotion
 Market data

To develop a good market strategy, the following must be put in place:

 The product
 The cost
 The target markets
 The distribution channels
 Advertisement

4.2 FINANCIAL PROJECTIONS AND COSTING

When it comes to calculating the cost of starting a commercial fast food company,
there are some key factors that should be noted. The different type of dishes to be
served determines the total cost of selling the business. The amount to lease/buy acres
land in Akwa Ibom State, the amount equipments and cooking materials, the amount
 Marys Food

to pay as salaries to workers, cost of advertisement in different radio and television

stations and also how widely accepted our products are.

4.3 START-UP BUDGET AND EXPENDITURE

The amount /cost will depend on the approach and scale you want to undertake.

The start-up can either be low or high depending on someone goals: vision and
aspiration for the business. The tools and equipment that will be used are nearly the
same cost everywhere.

Below are some basic areas we will spend or start-up capital in setting up our
Restaurant:

Start-up

Requirements Amount (N)

Start-up Expenses
Kitchen and Fixtures 82,600
Furniture and Interior 126,500
Legal 3,000
Rent 15,000
Packaging and Stationary 68,500
Contingencies 4,200
Total Start-up Expenses 468,800

Start-up Assets
Cash Required 200,000
Other Current Assets 0
 Marys Food

Long-term Assets 0
Total Assets 50,000

Total Requirements 981,800

Going by the report from detailed research and feasibility studies conducted, we
will need an average sum of 981,800.

5.0 MARKET ANALYSIS SUMMARY

5.1 Market Trend:

In this era when the online community is growing rapidly, you would do your
business a whole lot of favour if you create your own online presence. One of the
easiest ways to get people to see you as an expert in your line of business is to blog
constantly about fast foods. You may also want to leverage on social media platforms
like Instagram, Facebook, and Twitter, and others to publicize your fast food
restaurant.

You can as well go ahead to open an online portal where people can place order from
your fast food restaurant. You must ensure that your delivery system is efficient if
you intend to do well with your online fast food business. So also, keeping
consumers’ appetites satisfied, fast food restaurants / franchises have created new
menu options that capitalize on the trend of increasing awareness of the health risks
associated with a high-fat diet.

The industry has also thrived by developing products at price points attractive
enough to weather the slow recovery, resulting in strong revenue growth. As a result
of this, these trends are expected to continue and contribute to revenue growth going
forward.
 Marys Food

5.2 Target market segment strategy:

One thing about local and inter-continental dishes is that you can hardly find
someone who doesn’t patronize them. As a matter of fact, most fast food restaurants
now have menu designed specifically for vegan and others depending on their food
preferences.

In view of that, we have positioned our fast food restaurant to service the residence
of Uyo - Akwa Ibom State and every other location where our chains of fast food
outlets will be located all over the state. We have conducted our market research and
we have ideas of what our target market would be expecting from us.

We are in business to retail our products to the following groups of people.

 Corporate Organizations
 Schools
 Tourists
 Households
 Individuals

Market Segmentation

2%
0%
20% Corporate Organizations

31% Schools
Tourists
16% Households
Individuals
8%
Others
23%
 Marys Food

5.3 Competition

A close study of the restaurant / fast food industry reveals that the market has
become much more intensely competitive over the last decade. As a matter of fact,
you must be highly creative, customer centric and proactive if you must survive in
this industry. We are aware of the stiffer competition and we are well prepared to
compete favourably with other sandwich shops, pizza shops and chains of fast food
restaurants in Uyo - Akwa Ibom State.

One of our business goals is to make MARY’S Food, a one stop fast food restaurant.
Our excellent customer service culture, online options, various payment options and
highly secured facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be
among the best within our category (start-ups fast food restaurants) in the restaurant /
fast food industry, meaning that they will be more than willing to build the business
with us and help deliver our set goals and achieve all our aims and objectives. We
will also give good working conditions and commissions to freelance sales agents
that we will recruit from time to time.

5.4 Marketing strategy

Before choosing a location for MARY’S Food, we conduct a thorough market survey
and feasibility studies for us to be able to be able to penetrate the available market
and become the preferred choice for residence of Uyo - Akwa Ibom State. We have
detailed information and data that we were able to utilize to structure our business to
attract the numbers of customers we want to attract per time.

In other to continue to be in business and grow, we must continue to sell our fast
food and drinks which is why we will go all out to empower or sales and marketing
 Marys Food

team to deliver. In summary, MARY’S Food, will adopt the following sales and
marketing approach to win customers over.

 Open our fast food restaurant in a grand style with a party for all.
 Introduce our fast food restaurant by sending introductory letters alongside our
brochure to corporate organizations, schools, event planners, households and
key stake holders in Uyo - Akwa Ibom State
 Ensure that we always have a wide variety of fast food and soft drinks in our
restaurant.
 Make use of attractive hand bills to create awareness and to give direction to
our fast food restaurant
 Position our signage / flexi banners at strategic places around Uyo - Akwa
Ibom State
 Create a loyalty plan that will enable us to reward our regular customers
 Engage on road shows within our neighbourhood to create awareness for our
fast food restaurant.

5.5 Payment Options

At MARY’S Food, our payment policy is all inclusive because we are quite aware
that different people prefer different payment options as it suits them. Here are the
payment options that will be available in every of our outlets.

 Payment by cash
 Payment via Point of Sale (POS) Machine
 Payment via online bank transfer (online payment portal)
 Payment via Mobile money
 Payment with check from loyal customers

In view of the above, we have chosen banking platforms that will help us achieve our
payment plans without any itches.
 Marys Food

6.0 FINANCIAL INDICATORS

6.1 SOURCE OF CAPITAL
- Personal saving
- Loan

6.2 PROFORMA FORCASTED AND PROJECTION

Proforma forecast is a financial forecast based on income statement, balance sheet
and cash form. This firm is expected to generate 500,000 per week after the first
seven months thereafter maybe more than that as the company gains popularity
with increasing customers.

6.3 PROFORMA PROFIT AND LOSS

EXPENSES
Rent 120,000
Equipment 500,000
Personnel Salary 600,000
PROFORMA PROFIT AND LOSS

year1 year2 year3

Gross profit 4,000,000 6,000,000 10,000,000

Expenses 1,200,020 2,000,000 4,000,000

Net profit 3,200,020 4,000,000 6,000,000

 Marys Food

6.4 GROSSPROFIT

year1 year2 year3

Sales 6,000,000 7,000,000 13,000,000

Purchase 2,000,000 1,000,000 3,000,000

Gross profit 4,000,000 6,000,000 10,000,000

7.0 CONCLUSION

This business project will to be helpful to all. We were able to plan and we’re
looking forward to executing a business though with little profit at first. From the
report, we have learnt a lot about the process of starting up a business. We gained a
lot of experience how to handle the business as well as the operation and what a
business must undergo to become successful by conducting this report. In addition,
we have also learnt about the risk we have to face and how to overcome the risks.
Through perseverance and hard work, we were successful to achieve our budget.
Marys Food