BUSINESS PROJECT

HOME TRADITIONAL RESTAURANT

SUBMITTED TO
DR. MUHAMMAD SHAHBAZ

SUBMITTED BY
Adan Mustafa
Roll no 19176
Reg: 2017-GCUF-017580

LYALLPUR BUSINESS SCHOOL

GOVERNMENT COLLEGE UNIVERSITY FAISALABAD

2022

1
 CONTENTS
1 Problem statement ............................................................................................... 5
2 Idea Generation ................................................................................................... 5
2.1 Market Research .............................................................................................. 5
2.2 Search Findings ............................................................................................... 5
3 Idea Execution ...................................................................................................... 5
3.1 Business Name and introduction ..................................................................... 5
3.2 Tag Line .......................................................................................................... 6
3.3 Vision Statement ............................................................................................. 6
3.4 Mission Statement ........................................................................................... 6
3.5 Core Values ..................................................................................................... 7
3.6 Organization Structure .................................................................................... 7
4 7Ps.......................................................................................................................... 7
4.1 Product ............................................................................................................ 7
4.2 Price................................................................................................................. 8
4.2.1 Pricing Strategy ........................................................................................... 8
4.3 Place ................................................................................................................ 8
4.4 Promotion ........................................................................................................ 9
4.5 People (Talent Competencies) ........................................................................ 9
4.5.1 Job Requirements ........................................................................................ 9
4.5.2 Hiring Process and Remuneration ............................................................. 10
4.5.3 Training and development ......................................................................... 11
4.6 Physical Existence ......................................................................................... 14
4.6.1 Equipment .................................................................................................. 14
4.6.2 Furniture & Fixture.................................................................................... 16
4.6.3 Layout ........................................................................................................ 16
4.7 Processing...................................................................................................... 17
4.7.1 Departmental processes ............................................................................. 17
5 Business Analysis ............................................................................................... 17
5.1 SWOT Analysis............................................................................................. 17
5.1.1 Strengths .................................................................................................... 17
5.1.2 Weaknesses................................................................................................ 17
5.1.3 Opportunities ............................................................................................. 17
5.1.4 Threats ....................................................................................................... 18

2
 5.2 PEST Analysis ........................................................................................... 18
5.3 BCG Matrix Analysis .................................................................................... 19
5.4 Porter’s Five Forces Model Analysis ............................................................ 20
6 STP ...................................................................................................................... 22
6.1 Segmentation ................................................................................................. 22
6.1.1 Geographical Segmentation ....................................................................... 22
6.1.2 Demographical Segmentation.................................................................... 22
6.1.3 Behavioral Segmentation ........................................................................... 23
6.1.4 Physiological Segmentation ...................................................................... 24
6.2 Targeting ....................................................................................................... 25
6.2.1 Target Markets ........................................................................................... 25
7 Business Objectives ............................................................................................ 25
7.1 Financial Objectives ...................................................................................... 25
7.2 Non-Financial Objectives .............................................................................. 26
7.3 Market Objectives ......................................................................................... 26
8 Specify Goals & Policies .................................................................................... 26
8.1 Financial Policies .......................................................................................... 26
8.2 Management Policies .................................................................................... 27
8.3 Marketing Polices .......................................................................................... 27
9 Supply Chain ...................................................................................................... 28
9.1 Supplier selection .......................................................................................... 28
9.2 Backward / Forward Integration ................................................................... 28
10 Distribution Channels........................................................................................ 28
10.1 Feasibility analysis .................................................................................... 28
10.2 Market analysis .......................................................................................... 29
10.1 Product / Service ........................................................................................ 30
11 Product & service feasibility ............................................................................. 30
11.1 Market Need .............................................................................................. 30
11.2 Market Trend ............................................................................................. 30
11.3 Market Growth .......................................................................................... 30
11.4 Home Traditional Restaurant and Target Market ...................................... 31
11.5 Alternatives ................................................................................................ 31
12 Organizational Feasibility ................................................................................. 31
12.1 Operational capacity .................................................................................. 31
3
13 Financial Feasibility .......................................................................................... 32
13.1 Income Statement ...................................................................................... 32
13.2 Project Financing ....................................................................................... 32
13.3 Sales price .................................................................................................. 32
13.4 Revenue Generation At 1st Year ................................................................ 32

4
1 Problem statement
There are lots of restaurant in Faisalabad, but most of the restaurant are
providing fast food like burger, pizza etc. some restaurant are also providing home style
restaurant but there are some problem in these kind of restaurant. My restaurant will
provide good quality food, services, very friendly environment for all families near to
restaurant or visiting family.

2 Idea Generation
2.1 Market Research
Me and my friends are very fond of eating Home like food, we visited lots of
restaurant to full fill the need of fond. Here we order almost every special dishes which
are very popular and special of those restaurant but some how they are good quality and
service provide and some are not. Than I decided to start a good restaurant in my home
town and I selected the Kohinoor city for a Home style restaurant.
2.2 Search Findings
According to my search I finds lots of restaurant but they are miles away from
my home town. Some families are not interested to visit those restaurant which are very
far away from their home town. So I have decided to do it myself to provide facility to
those families and visitors.

3 Idea Execution
3.1 Business Name and introduction
The Traditional Home-Style Restaurant (“THR”) will be a moderately priced
86 seat restaurant offering family style food and service. Broasted chicken, pot roast,
steaks and pork chops along with classic hamburgers, wraps and generous salads are all
on the menu. We will offer specialty selections including a lighter options and smaller
portions for a children’s menu.
The restaurant will be family owned and operated by Adan Mustafa. The
Wrights will be leasing a 3,400 square foot space located at Kohinoor Plaza, Faisalabad,
Punjab, Pakistan. The site was previously leased as Fast Food Restaurant. Although the
location was previously utilized as a restaurant, the former tenant removed the majority
of the furniture, fixtures and equipment, which will need to be replaced. The location
will also require some additional renovation to update the lavatories and increase table
space in the dining area.

5
 The décor will feature wood accented chairs with blue and white checked table
cloths. Wooden chairs with comfortable seating cushions will surround dinner style
tables.
Sales projections assume 1700 customers per week resulting in weekly sales of
just over $19,777, or $1,028,000 annually. This equates to around $302 per square foot
in sales annually which positions THR as a highly desirable concept for ownership in a
table service market where $200 to $325 per square foot is considered moderately
profitable and therefore a good investment. Total start up costs will be $363,000,
$174,000 of which will be contributed by the owners and the remainder will be secured
by a proposed bank loan.
3.2 Tag Line
 To be the premier home-style restaurant in Kohinoor, Faisalabad
 To provide quality meals at reasonable prices with exemplary service
 Achieve Cover ratios of 1.00X at each lunch and dinner serving
 To achieve Prime Cost Ratios lower than 65%
3.3 Vision Statement
1. Being Mindful of our Customers and our Staff
Coinciding with our family values, we will treat both our customers
and staff in a manner in which we ourselves would want to be treated (or
better!).
2. Gratitude
“An attitude of gratitude” shown to our customers, employees and
vendors – because without their input, service, labor and time, our business
would not be here without them!
3. Our Service
Provide the warm and friendly service expected from a family-style
restaurant creating an informal, comfortable environment which will make
the customers satisfied and want to return again and again.
3.4 Mission Statement
Our Mission is to provide a unique and relaxing dining experience – similar to
dining at home. We will strive to achieve this goal by: 1) by providing menu items
incorporating quality ingredients at reasonable prices, and 2) we will be mindful of the

6
well being of our customers and staff– treating each and everyone with dignity and
respect – just like we would at our own home!
3.5 Core Values
 Repeat business. Every customer who comes in once should want to return,
and recommend us. Word–of–mouth marketing is a powerful ally.
 Hire top notch chefs and offer training to keep the chef on top of his/her
game, and pay top wages to ensure they stay with us.
 Location. Convenience is essential to us; we need to be close to our market
because we are not trying to get people to travel to reach us.
 A variety of menu offerings with a “down home” theme, reasonably priced
to establish credibility, but not so high as to limit customers.
3.6 Organization Structure
THR expects to hire 19 employees. Together, Adan Mustafa will personally
select each candidate. They’ve adopted an effective interview process designed to staff
the restaurant with highly qualified people for each position. Each applicant will be
rated and evaluated according to a pre-defined set of standards designed for each
position. Background checks will be utilized for designated positions. Recruiting efforts
will always center on referrals.
The restaurant will be open 7 days a week with hours as follows:
Monday 11:00 am – 1:00 am
Tuesday 11:00 am – 1:00 am
Wednesday 11:00 am – 1:00 am
Thursday 11:00 am – 1:00 am
Friday 11:00 am – 1:00 am
Saturday 11:00 am – 1:00 am
Sunday 12:00 pm – 1:00 am

4 7Ps
4.1 Product
The main reason why people would love to visit our restaurant would be the
food. We need to ensure there is variety and as well as the quality and the consistency
is maintained throughout. If the food does not maintain the quality and consistency, we
tend to lose the USP and customers in no time would move to competitors. For
maintaining quality, we need to identify reliable suppliers who supply us the ingredients
7
of acceptable standards. There needs to quality check is done consistently. We need to
maintain a recipe management module to ensure consistency in taste.
4.2 Price
The Traditional Home Restaurant is its price. It needs to be very competitive.
Although THR is low investment, ventures the margins are also very low. To maintain
profitability and viability it is important that we maintain the food cost and labor cost
at bay without affecting the quality. The ideal way of doing this would be-
 Menu Engineering- ensure one ingredient is used in multiple dishes to
reduce wastage and maximum utilization.
 Forecasting to reduce overstocking and wastage.
 Identifying the ideal portion size
 Avail credit facility from the suppliers.
4.2.1 Pricing Strategy
THR will be able to offer home-style meals for a reasonable price in a
comfortable ‘home-like’ setting. The average check price is expected to be between $8-
$15 which appears in line with Home Traditional Restaurant standards below $25.00.
Because of our current expertise with vendors, and our excellent credit, we can
negotiate better credit terms than say someone brand new starting a restaurant. We will
also be able to keep our menu reasonably priced by offering menu items that take
advantage of seasonal produce further reducing price. Finally we will keep our prices
in check by meticulous monitoring of our controllable expenses – keeping close eye on
our Prime Cost Report and Inventory. By initially employing family members who will
work for lower and reduced wagers, for example, we can further reduce our controllable
expenses.
4.3) Place
The Wrights will be leasing a 3,400 square foot space located at Kohinoor Plaza,
Faisalabad, Punjab, Pakistan.

8
4.4 Promotion
 Advertising through T.V, Radio, Cinema, Online, Postersites & Press like
News Paper & magazines. Other Promotional methods include-Point of
Sales Display, Merchandising, Direct mail, Loyalty Schemes, Door Drops
etc.
 Home base resturatn Prime focus is on targeting children in “Happy Meals”
to which are targeted at children-Small toys are given along with meal.
 Lucky draws, Scratch Cards.
 Hoardings at Major Places.
4.5 People (Talent Competencies)
4.5.1 Job Requirements
Before posting a job, confer with your team managers about the ideal candidate
for the job to get a good idea of exactly what you need. It’s also good practice to make
existing employees aware of the opening. Write a job description that matches what
you are looking for, including details such as job requirements, responsibilities and
expectations. Include information regarding your core values and company culture so
you can find the right cultural fit.

9
 “In some situations, hiring managers are less than upfront about exactly what
challenges the candidate will face, and this leads to mistrust, high turnover and an
overall negative impact on workplace culture,” Rassas said. “But that can be prevented
by being explicit with what is expected of the person filling the role and making sure
the candidates you’ve chosen can fulfill it.”
4.5.2 Hiring Process and Remuneration
Our restaurant follow these steps for an effective hiring process.
1. Evaluate which positions you need to fill.
Sonya Schwartz, founder of Her Norm, said this step is important to prevent
redundancy of positions in the company.
“The best thing you can do is approach the process with the mindset of filling
needs, not desks. You are looking for the best person to fill a specific need, not just
getting someone in and calling it a day.”
2. Figure out your recruiting strategy.
With recruiting, you always have options. Dailly suggests first figuring out
whether you are going to use a recruiting firm. “If not, state on job recruitment forms
‘no agencies, please,’ as this will save a ton of incoming sales calls.”
You may also want to have your current employees tap into their networks.
While the hiring process can be lengthy, you still want to make sure you find
the right candidate for the specific job you are hiring for. That doesn’t always mean
choosing the best candidate overall.
“Recruiters and hiring managers should take their time to find the best candidate
for the role and not settle for the best candidate in the applicant pool,” If you interview
10 candidates and none are a fit to their role, there will likely be pressure to just pick
the best candidate. Hiring managers should resist this pressure and go back to the hiring
pool to secure other candidates.”
3. Post your job opening.
Most businesses use career websites to advertise a new job opening. Start by
listing the job on your company website to reach a targeted audience. If you want to
widen your reach, turn to free and paid online career classifieds. Here are some job
posting sites to consider.
4. Sift through applicants.
“When we select and hire our employees … we’ll usually advertise [the job
posting] to target specific groups for certain skill sets,” Walden said. “Applications are
10
sent in, and we look through resumes first to immediately rule out anyone who’s just
completely unqualified or not what we’re looking for. If we’re on the fence, we read
cover letters and narrow down the pool.”
5. Interview the most qualified candidates.
Before interviewing the candidates, give them enough notice to make sure you
get the best out of them.
“Inform the applicant about the interview ahead of time so he/she could prepare
more,” This will allow you to know the applicant better and to know if they are a perfect
fit for the role, because you have given them the time to prepare.”
6. Follow up with the interviewees.
This stage isn’t just for calling or emailing the applicants “Don’t fall victim to
the halo effect and be blinded by any potential weaknesses, Maintain perspective and
take everything into account – not just the interview or resume but the totality of what
you’ve seen. Get input from others, but limit it to a small group to avoid brain drain.”
7. Extend the job offer.
If you’ve interviewed a lot of people and found high-quality candidates for the
position, you want to move quickly.
“Don’t delay in making a decision,” Make sure all the stakeholders (if
applicable) are available to interview and give feedback in a timely fashion. The
demand for skilled employees is still high, and you can lose a potential hire to other
opportunities if you delay
8. Conduct a background check.
A final step you should consider is conducting a background check to ensure
there are no significant red flags before bringing the person into your workplace.
“If you think the prospective applicant suits the position you require, you can do a
background check this will confirm the decision you made.”
4.5.3 Training and development
Food Safety
The importance of food safety can’t be overstated in the restaurant Home
Traditional Restaurant. Knowledge about food safety guarantees that the food served
to customers is not contaminated, prepared hygienically, and is safe for consumption.
It’s also important that your staff is aware of and compliant with food hygiene
standards, such as those imposed by the Food and Drug Administration, HACCP, or its
local equivalent.
11
Bussing
Bussing, while often overlooked, helps your restaurant run like a well-oiled
machine when done efficiently. The nature of the job mainly involves cleaning,
clearing, and resetting tables, in coordination with servers, to provide a seamless
experience for diners. However, it’s crucial to remember that customer interaction also
plays a pivotal role when it comes to bussing. Aside from discussing the technical
aspects of the job like proper table setting and clearing, you can also include other
topics, such as learning to read customers and tailoring your approach to provide the
best service suited to their needs and preferences. Although bussing is a responsibility
that may fall into the hands of a certain group of people, an all-hands-on-deck mentality
is expected of everyone so that all guests are attended to promptly.
Serving Food
Your restaurant’s serving staff is the face of your establishment, and they are
the ones who spend the most time interacting with customers. They must know how to
properly greet customers, seat them, and take their orders. Knowledge of the menu is
important so that they can answer questions about the food items and provide
suggestions based on preference or dietary restrictions to avoid hiccups, such as food
allergy reactions. Teaching different selling strategies, such as recommending dishes,
drinks, and desserts that go well together, can make a big difference to level up their
eating experience and making their food more palatable and enjoyable.
Cleaning and Sanitation
In the service and hospitality Home Traditional Restaurant, the cleanliness of
an establishment sets a precedent for food hygiene, service, and more. According to a
poll by Cintas Corporation, 75% of consumers will not visit a restaurant with negative
reviews about its cleanliness. This staggering statistic just goes to show how important
it is to keep your establishment clean and tidy as it leaves a lasting impression on
consumers, and even on those who haven’t visited yet.
Quality Customer Service
The restaurant Home Traditional Restaurant thrives on customer service as it
cannot exist without consumers in the first place. Remember that customer service can
either make or break the success of your restaurant. When discussing this topic, you
can start with the proper welcoming and greeting of guests as this is where their
customer experience begins. Being knowledgeable about your venue and menu is also
a must since it allows for flexibility to accommodate a customer’s needs or requests.
12
Checking on customers, calling them by their names, being proactive, and anticipating
their needs also demonstrates good customer service as they are likely to appreciate
your attentiveness and professionalism. To get a better understanding of how they felt
about the food and service, consider asking for their feedback — whether it be through
simple questions or through a comment card. Doing so shows that you care about what
they have to say when it comes to improving your services and continuing what you
did well.
Opening and Closing the Restaurant
Opening and closing a restaurant isn’t as simple as flipping the sign on your
door from “Closed” to “Open” and vice versa. Before you officially open and close for
the day, some procedures and duties have to be done to make sure that you’re all set for
the day and ready for the next one. Discuss what needs to be done before opening your
restaurant, such as counting your cash float, checking for cleanliness, turning on lights
and other facilities, and setting up your furniture. When closing your restaurant, make
sure that your staff is also aware of what to do during the last hour of service, as well
as after-service hours.
Food Handling and Storage
Proper food storage helps preserve the integrity and nutritional value of the food
you buy while assuring that the food prepared is safe to eat. This starts from the time
you accept food deliveries wherein you have to make sensory checks and quick
inspections and make sure that the food is in good condition. This also goes to say how
important it is that a food handler knows how to handle different types of food correctly,
such as raw meat and ready to eat foods. Lessons here will teach you how to wash your
hands correctly and make sure that you’re wearing the proper attire.
Cashiering
A restaurant’s cashier is responsible for processing payment transactions using
a cash register or other point of sale systems. Aside from handling money, which can
be unnerving for some, they also have to converse with customers at times. Having
excellent cashiering skills assures not only smoother transactions but also outstanding
customer experiences, whether you’re serving a quick-service lunch or a sit-down meal.
As working in a restaurant often requires job rotations, all staff should be provided with
this training so they can operate the register with confidence, which will also protect
your business from fraud or mishandling of funds. Customers will also surely appreciate
fast and accurate checkout processes.
13
Effective communication
Aside from their primary functions, restaurant staff usually wear multiple hats
and may also play the role of a host, salesperson, and customer service representative.
All of these roles boil down to being able to effectively communicate with customers
to give them the best dining experience and service. Practice active listening with your
staff so they can make a conscious effort to fully understand and retain the information
provided to them. Additionally, pay attention to common non-verbal cues, such as tone
of voice, nuances, and body language to determine your customer’s needs.
Workplace safety
In an Home Traditional Restaurant where workers are exposed every day to
sharp objects, heat, chemicals, and more, it’s no surprise that hazards and risks are
common in restaurants. These can result in work-related injuries, such as cuts, burns,
muscle strain, slips, trips, and falls, that can even be fatal. As restaurant employees face
several hazards due to the nature of their job, it’s important that they understand how
to minimize and eliminate these risks. For this restaurant staff training topic, acquaint
your staff with the layout of your workplace and determine areas to look out for where
these risks can happen, such as in the kitchen and storage area. Educate them about
OSHA workplace safety standards and give more in-depth training, such as knife safety,
safe kitchen machinery operation, and chemical hazard communication. By keeping
your employees safe, they’ll be able to do their jobs efficiently and without unnecessary
stress.
4.6 Physical Existence
4.6.1 Equipment
This list includes detail on all the following essential restaurant kitchen items:
1. Ovens
Convection ovens
Combination ovens
Pizza ovens
Conveyor ovens
2. Ranges and ventilation
Gas ranges
Electric ranges
Ventilation

14
3. Food processors
Batch bowl processors
Continuous feed food processors
Buffalo choppers
4. Mixers
Hand mixers
Countertop mixers
Floor mixers
5. Slicers
6. Food prep counters and cutting boards
7. Freezers and refrigerators
8. Safety equipment
9. Storage racks and shelving
10. Restaurant kitchen supplies
11. Servingware
12. Storage containers
13. Sinks
Compartment sinks
Bar sinks
Disposal sinks
Drop-in units
Handwashing sinks
Mop sinks
Portable sinks
14. Kitchen Display System (KDS)
15. Restaurant point of sale system
16. Steam tables
17. Washing equipment
18. Sharpening stones
19. Microwave
20. Ice makers
21. Gas or electric grill

15
4.6.2 Furniture & Fixture
Dining and restaurant fixtures refer to the various custom fixed or moveable
spatial elements that contribute to a dining experience. Ranging from domestic dining
rooms to restaurants, dining fixtures are necessary for serving specific types of unique
meals and groups of customers beyond the standard dining table and chair
configuration. Typically, including large fixed elements such as countertops, fixed
tables, dining fixtures may also refer to a variety of outdoor fixtures such as heaters and
built-in patios that can also add to the dining experience. Restaurant fixtures can vary
significantly, as establishments have different appearances and offerings.
Buying restaurant fixtures doesn’t necessarily mean buying new equipment as
you can purchase quality used fixtures for a good price. Leasing can also be an option
restaurants that are just opening. Restaurant fixtures can be purchased through
restaurant supply retailers either online or in person.
Where do you hang light fixtures in dining rooms?
Lighting fixtures in dining rooms, such as a chandelier, typically hang above
the center of the dining room table. The standard height a chandelier should hang is
between 30 to 36 inches (76.2 cm – 91.4 cm) above the top of the dining room table.
This height can be adjusted to fit your room height, and lighting preferences.
4.6.3 Layout
The restaurant layout, including the dining room, kitchen and serving line, has
been designed for efficiency and flexibility to accommodate the fluctuation in customer
traffic and peak meal periods.
Upon arrival, guests will be greeted immediately by either the assistant manager
or a server and asked for the seating preference. Drink orders will be taken and guests
can munch on our complimentary rolls. Once the customer’s order is taken, the order
will automatically be printed to a requisition printer located in the grill area. The grill
cook will use the printed ticket to keep track of orders and place the meal under the
heating lamps until the order is complete. The kitchen preparation line has been
designed to be operated by a minimum staff of 1 line cook and a maximum of 4 cooks.
This design allows line staffing to be adjusted to the business volume. Shift changes for
all staff will involve cleanup, restocking and preparation. All monies will be settled at
the end of each shift. The closing shift will involve designated closing duties that will
leave the restaurant clean and fully prepared for the next day.

16
4.7 Processing
In restaurant process also play important role as serving time, overall operations
and information. There are many type of processes, in restaurant mainly management
should looks at the system used to deliver the food and service for example food serving
time. Other example of process is how customer will pay and how to main all records
and bills in place.
4.7.1 Departmental processes
 Food Producing Transparent to consumers
 New method of packaging & distribution
 Invented most Efficient cooking equipment. •
 Customers are invited to check the ingredients used in food.
 It allows customer to enter the area where the Process takes place to have a
Clearview of what they are consuming.

5 Business Analysis
5.1 SWOT Analysis
5.1.1 Strengths
 Prime location with easy access from Interstate 30
 Exceptional staff with the can do attitude. Combined many years in the
restaurant Home Traditional Restaurant
 Because owner has catering Home Traditional Restaurant experience, he
already has established a customer market and approved vendors
 Due to our small size, we believe we can provide exceptional quality by
hand selecting our market specials when compared to our larger corporate
competitors
 The same concept holds true in our staffing requirements, by hand selecting
our employees we will strive to offer unsurpassed service when compared
to our larger competitors
5.1.2 Weaknesses
 Recruiting and retaining quality employees
 Tight margins will allow little wiggle room for error
5.1.3 Opportunities
 Little barriers to entry allows for immediate business opportunities
 Offer additional catering services

17
5.1.4 Threats
 Government mandates (restaurant operation, food safety, and worker
protection at the federal level and health, sanitation, safety, fire at the local
level)
 Rising operating costs
 Building/maintaining sales volume
 Supermarkets and convenience stores
 Consumers that believe that meals at home are healthier than those prepared
in restaurants.
5.2 PEST Analysis
Political Factors:
These factors assess the extent to which government policies interfere in the
business. It can be the laws related to health and safety, taxation, trade policies, labor
law, environmental law, restrictions on trade, and more.
The health and safety-related policies affect the restaurant Home Traditional
Restaurant the most. Businesses must take care of cleanliness and hygiene while
carrying out cooking, packing, and delivering operations to abide by the guidelines
related to health and safety.
Economic Factors:
These factors help businesses plan their short-term and long-term goals.
Economic factors encompass economic growth, interest rate, exchange rate, inflation,
the purchasing power of the consumer, and more.
In general, the growing tendency of people to eat out has ensured better revenue
for the restaurant Home Traditional Restaurant. The increasing disposable income of
people has given it a boost. Growing labor costs can be a matter of concern for the
restaurant Home Traditional Restaurant. It will lead to less profit for the owners.
Social Factors:
Socio-cultural aspects that help the businesses develop a supply-demand model
come under this factor. They are- traditions, cultural values & beliefs, population
growth, age distribution, career attitude, and more. By studying these factors,
companies can also determine a potential market.
Technological Factors: Factors including innovation, automation, technical
awareness, and more influence the production, distribution, and communication
operations of a business come under the technical parameters.
18
 Technological advancement such as accepting payments via smartphones,
ordering food online, and operating CCTV cameras from mobile phones has opened
up, new revenues for the restaurant Home Traditional Restaurant. Automation is the
future of the restaurant Home Traditional Restaurant.
5.3 BCG Matrix Analysis
Tradition Home Restaurant, a renowned Pakistani chain of home food
restaurant; commonly known by the masses, as THR. It is located in Kohinoor. THR is
the subsidiary of ome, which owns Pizza hut and Taco bell chains of fast food
restaurants as well
BCG matrix of THR
BCG matrix is the representation of company different divisions, on a four
quadrant graph. Category of segments dimension can be identified with the help of
market share and industrial growth rate. It helps the companies to identify the suitable
strategies for the segments. Each profit center requires distinct strategies from other,
according to the financial standing of segment. Companies can identify that, where the
company’s each segment stands and which strategy should be adopted for each? With
the help of four dimensional BCG matrix. Following are the four dimensions of BCG
matrix, Question mark, Cash cows, Dogs and Stars.
Question Mark
Question mark are those segments, which market share is low and competing in
high growth Home Traditional Restaurant. THR India comes into the category of
Question Mark, India market has huge potential it is one of the most populated countries
in the word.
Those segment which have high market share in high Home Traditional
Restaurant sales growth rate, comes in to the category of stars. THR china fall in to the
category of stars with high market share in high Home Traditional Restaurant sales
growth rate. For such segments, market development, product development and market
penetration strategies should be formulated and executed. THR China market
development strategy is very aggressive, is exploring new market segments and
establishing 1 restaurant on average every day. In 2015; 743 restaurants were opened
in China, and planned to open 600 more in 2016. It has also used the strategy of product
development by offering traditional food items in menu. THR china offer 50 food item
to their costumer which are twice, compare to US menu.

19
Cash Cows
Cash cows are those segments which have high market share in low Home
Traditional Restaurant growth rate. THR franchising and licensing comes into the
grouping of cash cows segment. Franchising and licensing have generated 16 billion of
revenue in 2015. Total system growth rate was 11%, however, Russia system growth
rate was impressive in 2015, it has generated 40 % system growth rate. Such segment
should formulate and execute divestiture strategy, which THR is currently executing,
in US chains of THR restaurants.
Dogs
Segments which have low market share in low Home Traditional Restaurant
growth rate. THR target audience in FAISALABAD are African American people and
its menu contains only 26 food items and emphasis on low price and take out. Such
segment should use divesture strategy, which THR FAISALABAD has already
executed and have mostly franchised and licensed THR FAISALABAD.
5.4 Porter’s Five Forces Model Analysis
According to Porter, five forces represent the key sources of competitive
pressure within restaurant. They are:
1. Competitive Rivalry.
2. Supplier Power.
3. Buyer Power.
4. Threat of Substitution.
Threat of New Entry.
We stressed that it's important not to confuse these five forces with more
fleeting factors, such as Home Traditional Restaurant growth rates, government
interventions, and technological innovations. According to Porter, the latter are
examples of temporary factors, while the Five Forces are permanent parts of an Home
Traditional Restaurant's structure.
1 Competitive Rivalry
The first of Porter's Five Forces looks at the number and strength of your
competitors. How many rivals do you have? Who are they, and how does the quality
of their products and services compare with yours?
In Home Traditional Restaurant where rivalry is intense, companies attract
customers by aggressively cutting prices and launching high-impact marketing

20
campaigns. However, this can make it easy for suppliers and buyers to go elsewhere if
they feel that they're not getting a good deal from you.
On the other hand, where competitive rivalry is minimal, and no one else is
doing what you do, then you'll likely have tremendous competitor power, as well as
healthy profits.
2 Supplier Power
Supplier power is determined by how easy it is for your suppliers to increase
their prices. How many potential suppliers do you have? How unique is the product or
service that they provide? And how expensive would it be to switch from one supplier
to another?
The more suppliers you have to choose from, the easier it will be to switch to a
cheaper alternative. Conversely, the fewer suppliers there are and the more you rely on
them for help, the stronger their position and their ability to charge you more is. This
can impact your profitability, for example, if you're forced into expensive contracts.
3 Buyer Power
If the number of buyers is low compared to the number of suppliers in an Home
Traditional Restaurant, then they have what's known as "buyer power." This means they
likely find it easy to switch to new, cheaper competitors, which can ultimately drive
down prices.
Think about how many buyers you have. How big are their orders? How much
would it cost them to switch from your products and services to those of a rival? Are
your buyers strong enough to dictate terms to you?
When you deal with only a few savvy customers, they have more power.
However, your power increases if you have many customers and little competition.
Judging how to price your product to attract the customers you want, and to protect
your brand, requires great skill. Find out more in our article about Kotler's Pricing
Strategies
4. Threat of Substitution
This refers to the likelihood of your customers finding a different way of doing
what you do. For example, if you supply a unique software product that automates an
important process, people may substitute it by doing the process manually or by
outsourcing it.
A substitution that's easy and cheap to make can weaken your position and
threaten your profitability.
21
6 STP
6.1 Segmentation
6.1.1 Geographical Segmentation
Effective geographic segmentation is a crucial component of any marketing
campaign. It ensures that marketing dollars are appropriately spent on targeting
prospective customers with the most relevant message that appeals to their needs and
is most likely to trigger purchasing behaviors. Without geographic segmentation,
consumers would frequently encounter advertisements for products and services that
are unavailable where they live.
We have a small restaurant and it has limited marketing budget, making it vitally
important to get the most value for every customers. To achieve this, marketing efforts
must be highly targeted toward customers in the restaurant’s delivery area. Because it
is traditional home style base restaurant so we provide home base facilities to our
customers. We provide different portion to our customers, like we have family
separation, girls separation and boys separation, through which all feels very
comfortable.
6.1.2 Demographical Segmentation
Demographic approach including age, gender, life-cycle stage occupation,
religious belief, and so on. In terms of age, Traditional Home Restaurant segments them
into a variety of different groups. As for the young kid, Traditional Home Restaurant
designed a special meal for them which is called “Happy Meal”. Meanwhile, they all
consist of little rice and chicken which are products that are designed for young kids.
Oftentimes, there will be toys included in these meals. Though people in other age
groups may don't value them enough, its effect on young kids is huge. As for the
teenager group who are mostly students and families Traditional Home Restaurant has
not only priced their products aggressively to retain these group of people who are
sensitive about the price, but also provide amenities such as Wi-Fi to attract students .
As for the grown-up, Traditional Home Restaurant offers them coffee products which
cannot be compared to a conventional coffee shop. These designs clearly target
customers who belong to different age groups. As for other segment criteria, Traditional
Home Restaurant would create a framework that address all these characteristics.

22
6.1.3 Behavioral Segmentation
In terms of Behavioral Approach, it plays a significant role within Traditional
Home Restaurant segmentation system. Traditional Home Restaurant segmentation
builder includes the degree of loyalty to the restaurant and Benefits sought. The
research from Traditional Home Restaurant indicates that 36% of consumers eat
Traditional Home Restaurant food because of its value. This 36% of respondents buy
Traditional Home Restaurant food because they believe Traditional Home Restaurant
products bring them great cost benefits .In addition, these consumers feel like
Traditional Home Restaurant not only provides cheaper prices for rice, chicken, meat
and drinks compared to other home tradition type chains, the food portion is also very
ideal compared to their competitors. However, Traditional Home Restaurant realize
there are other customers who value time efficiency more than the cost benefits. These
groups of people may care less about how much they saved from each Traditional Home
Restaurant meal, but care more about having a meal which can provide enough energy
calories in a certain amount of time. Traditional Home Restaurant, therefore, comes up
with different services to satisfy those customers’ needs. While Drive-thru has been
implemented by Traditional Home Restaurant since the 2020, Traditional Home
Restaurant developed this Traditional Home Restaurant app order feature in 2022.
Customers just need to order products they want from their mobile apps in advance.
Then, they simply need to drive up to the curb of a Traditional Home Restaurant and
scan a code. Traditional Home Restaurant staff would automatically bring their food
outside to their cars. This would save the customer from waiting in the line inside the
restaurant and lower the burden on the kitchen during rush hour quite a bit.

23
6.1.4 Physiological Segmentation
The psychographic approach can be hard to describe. It indicates that
Traditional Home Restaurant's mainly values customers' patterns of work and leisure
and their lifestyle through the psychographic approach. For instance, customers who
come into an urban location between 12 pm to 6 pm indicates that they are the working
class who may simply try to grab lunch or dinner. For those who come in between 6om
to 12 am are mostly evening and night shift staff, working in various shops nearby
Traditional Home Restaurant's stores. Therefore, during their breaks and when they
finish their job, normally visit Traditional Home Restaurant's. The last group between
12 am to 12 pm, they are mostly the working class again who has to start their work
early. Interestingly, this group has proved to be a constant customer. Another reason
that explains why the Psychographic approach could be so hard to describe is how it
links to the other approach. For instance, similarities between the behavioral approach
and psychographic approach can be drawn when it comes to lifestyle. Customers who
have a busy lifestyle would value time efficiency as well. Furthermore, the table under
the geographical approach indicates there are countries that have vegetable burgers on
their menus. This would indicates there is a certain customer base who potentially live
in a vegetarian lifestyle. Thus, certain approaches could not be discussed individually.

24
6.2 Targeting
6.2.1 Target Markets
Adan selected the subject area for its restaurant primarily because of its location
to the very busy intersection of Kohinoor City. The restaurant located in a retail strip
center is located on “going home” side of Kohinoor. This will encourage families tired
from a day of work to stop in for a home cooked meal they can enjoy – without the
cleanup!

7 Business Objectives
7.1 Financial Objectives
The following sections outline our financial plan:
 Required Cost of Start-Up
 Profit and Loss
 Cash Flow
 Balance Sheet
 Financial Ratios
 Hourly Labor Costs

25
  Weekly Sales Projections
7.2 Non-Financial Objectives
7.3 Market Objectives
 Repeat business. Every customer who comes in once should want to return,
and recommend us. Word–of–mouth marketing is a powerful ally.
 Hire top notch chefs and offer training to keep the chef on top of his/her
game, and pay top wages to ensure they stay with us.
 Location. Convenience is essential to us; we need to be close to our market
because we are not trying to get people to travel to reach us.
 A variety of menu offerings with a “down home” theme, reasonably priced
to establish credibility, but not so high as to limit customers.

8 Specify Goals & Policies

8.1 Financial Policies
With a limited staff, it is crucial that the Adan Mustafa remain current with daily
cash outlay. The purchase of a POS system will immensely help them with these daily
Financial Policies.
Daily Cash Control.
Sales and receipts recorded by the POS system will be compared to actual cash
and credit card deposits on a daily basis. Acceptable over/short amounts will be limited
to $5.00 per day. Discrepancies greater than $5.00 will prompt management to conduct
an immediate audit to account for the difference. Monthly totals will be compared to
actual P&L statements for accuracy. Cash, debit card and credit card receipts will be
deposited in a deposit.
Weekly Prime Cost Control:
Adan Mustafa will prepare a weekly report that shows the gross profit margin
after cost of goods sold and labor cost has been deducted from the sales revenue. The
prime cost for this type of restaurant is expected to range from 60% to 65%. Proper
control of the prime cost is the single most effective measure of management’s ability
to operate the restaurant.
Purchasing Records/Payables:
A part time bookkeeper will process and record invoices and credits daily.
Reports detailing cash expenditures, payments by check, and accounts payable
transactions will be readily available. Check disbursements will be prepared by the
26
bookkeeper. Check signing authority for the general operating account will be given to
the general manager.
Payroll Processing:
Payroll checks will be issued bi-monthly. Adan Mustafa will run reports from
the time & attendance system, make necessary adjustments, and prepare for transfer to
the payroll system. Payroll will be processed by a payroll processing service.
8.2 Management Policies
The Adan Mustafa will practice sound management procedures in order to
control costs, insure quality of product and provide friendly customer service.
Management will use the following systems:
Order Guide:
The restaurant will use an item specific order guide to track order history and
maintain designated levels of product in inventory.
Weekly Inventory:
Management will conduct a weekly inventory to determine valuation for use in
the preparation of weekly profit and loss reports.
Daily Inventory:
Tracking: Daily inventory will be taken on specific items. Movement will be
compared to sales data to ensure designated products have been properly accounted for.
8.3 Marketing Polices
THR’s competitive edge is in its people. We truly believe that your business is
not only as good as your products (meals) but the quality of your staff as well. Our staff
is a reflection of us. Initially, we intend to employ our family members who will work
for lower and reduced wages. Our long term goal is to hire team members that are truly
hand selected and have the same honest to goodness family values we do. And unlike
our big chain competitors, because of our lean size, we can turn on a dime when
economically pushed and make changes quickly allowing us to be proactive. (Whereas
our corporate competitors have to adhere more closely to their company policies thus
impeding their reaction time)

27
9 Supply Chain
9.1 Supplier selection
Because of their years of experience combined with their existing catering
business, Adan has established relationships with qualified suppliers. These suppliers
can provide reasonably priced products, delivered according to the schedule.
9.2 Backward / Forward Integration
 Firstly, raw materials
 Secondly, manufacturing
 Thirdly, finished products
 Fourthly, packaging
 After that marketing
 Then shipping or transporting
 And then go to distributors and retailers
 At last, going to customers or consumers.

10 Distribution Channels
10.1 Feasibility analysis
Feasibility studies in the restaurant industry can answer questions such as:
 Is there a demand for this type of restaurant?
 Is there a risk of investing in this new restaurant?
 How frequently will community members eat at my restaurant?
 Who will be my main competitors?
 What are my competitors currently doing that the community likes and
dislikes?
 Where are there gaps in the market that my restaurant can fill?
What are the components of a restaurant feasibility study?
A feasibility study is typically broken down into three components to offer a
mixed-mode approach of both quantitative and qualitative research. The three
components recommended by our restaurant feasibility studies company are outlined
below.
Component #1: Syndicated Research
The first step of a feasibility study for a restaurant is conducting syndicated
research. This helps provide overall market insights and demographic data. At a high

28
level, this component is advantageous for new ventures because it highlights market
supply and shifting target populations.
Component #2: Competitive Assessment
It is no secret that the restaurant industry can be tough to break into. Before
choosing a site location and opening your doors for business it is important to assess
what restaurants will serve as your biggest competitors with a competitive assessment.
This component will evaluate competitor pricing, the share of market, customer likes
and dislikes, etc.
Component #3: Market Survey
Finally, the third recommended component of a restaurant feasibility study is a
market survey. A market survey will help asses the concept and location of your
establishment to understand the appeal, barriers, and how often the community will eat
there.
10.2 Market analysis
The restaurant Home Traditional Restaurant is a large and diverse business:
Restaurant-Home Traditional Restaurant sales are forecast to reach $580.1 billion in
2021 – an increase of 2.5 percent over 2020. Restaurant-Home Traditional Restaurant
sales are projected to total $604 billion in 2021 and equal 4 percent of the Faisalabad
gross domestic product. The overall economic impact of the restaurant Home
Traditional Restaurant is expected to exceed $1.7 trillion in 2021. On a typical day in
Pakistan in 2021, more than 130 million people will be foodservice patrons. Sales at
full service restaurants reached $184.2 billion in 2010. Sales at limited service
restaurants increased to $164.8 billion in 2010, while snack and non-alcoholic-beverage
bar sales rose to $24.7 billion. (National Restaurant Association).
The Punjab restaurant Home Traditional Restaurant includes about 480,000
restaurants with combined annual revenue of about $400 billion. Major companies
include Traditional Home Restuarant; YUM! Brands (THR, Pizza Hut,).The Home
Traditional Restaurant is highly fragmented: the 50 largest companies hold just 20
percent of the market. (First Research).
The Home Traditional Restaurant consists of full-service restaurants (FSR) and
limited service eating places, which include quick-service restaurants (QSR).

29
10.1 Product / Service
Upon arrival, guests will be greeted immediately by either the assistant manager
or a server and asked for the seating preference. Drink orders will be taken and guests
can munch on our complimentary rolls. Once the customer’s order is taken, the order
will automatically be printed to a requisition printer located in the grill area. The grill
cook will use the printed ticket to keep track of orders and place the meal under the
heating lamps until the order is complete. The kitchen preparation line has been
designed to be operated by a minimum staff of 1 line cook and a maximum of 4 cooks.
This design allows line staffing to be adjusted to the business volume. Shift changes for
all staff will involve cleanup, restocking and preparation. All monies will be settled at
the end of each shift. The closing shift will involve designated closing duties that will
leave the restaurant clean and fully prepared for the next day.

11 Product & service feasibility

11.1 Market Need
The Kohinoor area is in great need of a family style restaurant. This section of
Kohinoor is commonly referred to as “fast food alley” The selection of fast food is vast
however; the area is limited on its family restaurant choices. THR’s nearest competitor,
The good restaurant is located over 5 miles away from the location.
11.2 Market Trend
According to the National Restaurant Association, the top 10 trends for are:
1. Locally sourced meats and seafood
2. Locally grown produce
3. Sustainability as a culinary theme
4. Nutritious kids’ dishes
5. Hyper-local items
6. Children’s nutrition as a culinary theme
7. Sustainable seafood
8. Gluten-free allergy conscious items
9. Back to basics cuisine
10. Farm brand ingredients
11.3 Market Growth
Faisalabad consumer spending on services, an indicator of restaurant sales, rose
1.8 percent in November 2021 compared to the same month in 2020. The average
30
Faisalabad retail price for diesel and regular gas, which influences discretionary
consumer spending on eating out, rose 13.1 percent and 9.3 percent respectively in the
week ending January 2022, compared to the same week in 2021. Local and National
families spending for food services and drinking places, an indicator for restaurant
revenues, increased 6.1 percent in the third quarter of 2021 compared to the same period
in 2020. (First Research)
11.4 Home Traditional Restaurant and Target Market
Adan Mustafa selected the subject area for its restaurant primarily because of
its location to the very busy intersection of families and visitors. The restaurant located
in a retail strip center is located on “going home” side of Kohinoor city. This will
encourage families tired from a day of work to stop in for a home cooked meal they can
enjoy without the cleanup!
11.5 Alternatives
12 Organizational Feasibility
12.1 Operational capacity
THR will be open 7 days a week for lunch and dinner requiring multiple shifts.
Adan will write the schedules. The schedules will be written in a manner that will allow
the ability to increase or decrease hourly labor according to sales volume in order to
maintain a consistent labor cost control.
Proper labeling and rotation techniques, accompanied by ample storage
facilities will ensure that high quality prepared product will be sufficiently available to
meet the demands during peak business hours. Replenishment and ongoing preparation
will continue during off peak business hours.
Adan will be responsible for ordering, receiving and maintaining sufficient
inventory to meet production demands. Ordering schedules will be staggered with
perishable products being ordered multiple times per week to preserve freshness.
Standard grocery and supply orders will be ordered less often, according to a
predetermined schedule and storage capacity.
Adan will rely on operational checklists to verify that each work shift has been
properly prepared for and to insure the operational standards are followed before,
during and after work shifts.

31
 The restaurant layout, including the dining room, kitchen and serving line, has
been designed for efficiency and flexibility to accommodate the fluctuation in customer
traffic and peak meal periods.
Upon arrival, guests will be greeted immediately by either the assistant manager
or a server and asked for the seating preference. Drink orders will be taken and guests
can munch on our complimentary rolls. Once the customer’s order is taken, the order
will automatically be printed to a requisition printer located in the grill area. The grill
cook will use the printed ticket to keep track of orders and place the meal under the
heating lamps until the order is complete. The kitchen preparation line has been
designed to be operated by a minimum staff of 1 line cook and a maximum of 4 cooks.
This design allows line staffing to be adjusted to the business volume. Shift changes for
all staff will involve cleanup, restocking and preparation. All monies will be settled at
the end of each shift. The closing shift will involve designated closing duties that will
leave the restaurant clean and fully prepared for the next day.

13 Financial Feasibility
13.1 Income Statement

13.2 Project Financing

13.3 Sales price

13.4 Revenue Generation At 1st Year

32