2024 DEPAR T MENT O F C HEMIC AL EN G IN EER IN G
FEASIBILITY
REPORT
Starting a New Family Restaurant
ENTREPRENEURSHIP (CE-510)
MISBAH IBRAHIM
B21108006012
B
Executive Summary
This feasibility study explores the potential of starting a family restaurant on
a limited budget of 1 lac rupees in Karachi, Pakistan. While the capital is
constrained, the concept of a family-friendly restaurant with a focus on
affordability and quality food offers a promising opportunity. The study
analyzes various aspects, including market demand, competition, financial
projections, and potential challenges to determine the viability of this
venture.
1. Introduction
Family restaurants are popular dining options, known for their welcoming
atmosphere and diverse menus. With the growing trend of family-oriented
dining, this report outlines the steps to establish a family restaurant within a
budget of 1 Lac.
2. Market Analysis
2.1 Industry Overview: The restaurant industry is projected to grow
steadily, with increasing consumer spending on dining out. Family-oriented
restaurants cater to diverse age groups, providing an opportunity to attract
families.
2.2 Target Market: Families with children, local residents, and young
adults looking for a casual dining experience. Demographics should include
middle-income households within a 5-10 km radius.
2.3 Market Demand: Karachi's growing population and rising
disposable incomes indicate a growing demand for dining out experiences.
A gap exists in the market for affordable, family-friendly restaurants that
prioritize quality food.
2.4 Competitive Analysis: Analyze existing restaurants in the target
area to identify their strengths, weaknesses, and pricing strategies. Assess
the level of competition and identify potential niches to differentiate the
proposed restaurant.
3. Business Model
3.1 Concept Development: Decide on a theme (e.g., Italian, Indian,
or multi-cuisine) and develop a family-friendly menu. Choose a strategic
location with high foot traffic, like near schools or parks.
3.2 Legal Structure: Register the business as a sole proprietorship or
partnership to keep initial costs low.
3.3 Unique Selling Proposition (USP): Focus on affordability, a kid-
friendly atmosphere, and quality service to distinguish from competitors.
4. Operational Plan
4.1 Startup Costs:
Item Estimated
Cost
Rental Deposit (3 months) 30,000
Furniture and Fixtures 20,000
Kitchen Equipment 25,000
Initial Inventory (Groceries) 15,000
Marketing and Promotion 5,000
Miscellaneous Expenses 5,000
Total 100,000
4.2
Staffing: Hire a small team: a chef, a waiter, and a cleaner to minimize
payroll costs. Offer training to ensure quality service and food preparation.
4.3 Menu Development: Create a diverse menu that includes
vegetarian and non-vegetarian options. Price dishes affordably, ensuring a
balance between quality and cost.
4.4 Marketing and Promotion: Develop a marketing plan to attract
customers and build brand awareness.
4.5 Financial Management: Establish a system for tracking expenses
and revenue to monitor the restaurant's financial performance.
5. Financial Projections
5.1 Revenue Projections: Determine competitive pricing that attracts
customers while ensuring profitability. Estimate the expected number of
customers per day and their average spending. Project the total sales
revenue based on customer traffic and pricing.
5.2 Break-even Analysis: Calculate fixed and variable costs to
determine the break-even point. Expected to break even within 6-12
months if operational efficiency is maintained.
5.3 Profit Margins: Aim for a profit margin of around 20-30%, taking
into account food costs, labor, and overheads.
6. Risks and Challenges
6.1 Competition: Differentiate the restaurant by offering unique selling
points, such as a specific cuisine or a family-friendly ambiance.
6.2 Economic Fluctuations: Develop contingency plans to address
potential economic downturns, such as reducing operating costs or
introducing promotional offers.
6.3 Limited Budget: Explore cost-saving measures, such as sourcing
ingredients from local markets or negotiating favorable terms with
suppliers.
7. Conclusion
While starting a family restaurant on a limited budget presents challenges,
the feasibility study indicates that it is a viable opportunity in Karachi. By
carefully analyzing the market, managing costs effectively, and focusing on
quality food and customer service, the restaurant can achieve success and
contribute to the local dining scene. Starting a family restaurant with a
budget of 1 Lac is feasible with careful planning and execution.
8. Recommendations
Conduct a detailed location analysis and finalize the venue. Invest time in
menu development and staff training. Implement a robust marketing
strategy to generate buzz before the launch.
