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EXECUTIVE SUMMARY HENNY PENNY is the first online fast food restaurant in the history of Pakistan. Our aim is to provide the quality food of your own choice at your door steps with the most convenient online ordering and payment system. OUR BUSINESS We take great pride and care to provide you with the best food and dining experience in the quick service online restaurant business. We believe eating sensibly, combined with appropriate exercise, is the best solution for a healthy lifestyle. Whether you're taking back lunch or bringing back dinner, HENNY PENNY has all your favorite chicken, salads, sandwiches, snacks, sweets and Beverages. HENNY PENNY also offers a variety of menu items for those who want lower fat, lower calorie choices etc.To help you further, we've provided nutritional information so you can make informed choices about what to eat. PURPOSE The purpose to start this business is to serve people of new era with a different and the most competitive style. The prime purpose is to generate profit by providing superb customer services. We aim to be leader in providing quality food items that fit into a balanced diet. Our aim is to provide the hygienic and delicious tastes that the customers have never tasted before. We want to add convenience in the

Online Restaurant Business Plan

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Page 1: Online Restaurant Business Plan

EXECUTIVE SUMMARY

HENNY PENNY is the first online fast food restaurant in the history of Pakistan. Our

aim is to provide the quality food of your own choice at your door steps with the most

convenient online ordering and payment system.

OUR BUSINESS

We take great pride and care to provide you with the best food and dining experience

in the quick service online restaurant business. We believe eating sensibly, combined

with appropriate exercise, is the best solution for a healthy lifestyle.

Whether you're taking back lunch or bringing back dinner, HENNY PENNY has all

your favorite chicken, salads, sandwiches, snacks, sweets and Beverages. HENNY

PENNY also offers a variety of menu items for those who want lower fat, lower

calorie choices etc.To help you further, we've provided nutritional information so you

can make informed choices about what to eat.

PURPOSE

The purpose to start this business is to serve people of new era with a different and

the most competitive style. The prime purpose is to generate profit by providing

superb customer services. We aim to be leader in providing quality food items that fit

into a balanced diet. Our aim is to provide the hygienic and delicious tastes that the

customers have never tasted before. We want to add convenience in the lives of fast

food lovers by providing them the most wonderful dining experiences at their

doorsteps.

THE MOST FREQUENT CUSTOMER COMPLAINTS:

You can't get a table during busy periods of the day

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Food is cooked too far in advance of when I order it

Food is not served hot enough

Their food doesn't stay hot if you take it home

Packaging for take-out food doesn't' keep it warm

Restaurant is too crowded during meal times

They don't use high quality meat

Takes too long to get your order

People who come in after me get served before I do

You have to wait too long when you go back to buy something else

FEATURES OF ONLINE RESTAURANT

Aiming to serve you in a way that is more convenient than ever.

Our restaurant caters you 24/7 a week.

This e-restaurant allows greater customer service relationship by providing

enhanced service to their customers.

Our e-service ensures hygienic, nutritious, healthy food with quick delivery.

Customers can cancel or change the order by simply clicking without

disturbing their busy schedules.

Calorie guide and nutritional facts are displayed with each food item to help

the customer to make the most appropriate choice.

With the unique ordering system, clients can choose from a wide variety of

food offerings available in menu.

Clients make their food selections and designate the day and time the food

should be delivered.

Once the order is placed, HENNY PENNY remains in contact with the

customer to ensure that food is prepared according to the client's instructions

and then confirms the on-time delivery.

VISION STATEMENT

The company's goal is that of a multi-faceted success. Our first responsibility is to the

financial well-being of the restaurant. We will meet this goal while trying to consider;

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the effect of our products on the health and well being of our customers (and

our staff),

the impact that our business practices and choices will have on the

environment, and

The high quality of attitude, fairness, understanding, and generosity between

management, staff, customers, and vendors. Awareness of all these factors

and the responsible actions that result will give our efforts a sense of purpose

and meaning beyond our basic financial goals.

MISSION STATEMENT

"Change the way, food is served”

Tom Peter’s, the Management Guru states:

“Any business that does not change will be dead in five years”.

2008 will go down in history as the year of change, but still retailers who prefer the

old days and are, alas, losing market share.

Businesses don’t change for the sake of change, businesses generally change

because the consumer either asks or forces them to change.  It is not the industry

that is forcing change; it is you as consumers. 

CORE VALUES AND PHILOSOPHY

Customer satisfaction through offering high quality food with exceptional

service and good value.

Be topical, not typical.

Constantly involve the team in the ideas loop.

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More emphasis placed on the caliber and training of frontline people

We take great pride in serving each other, our customers and our

communities.

We seek continuous improvement in all that we do.

Build trust relation ship with customers by promoting love and expertise.

We value a sense of urgency and emphasize an innovative,

entrepreneurial approach to business.

We expect fairness and mutual respect in all our activities.

We know our success depends upon the initiative we take individually and

our ability to work as a team.

GOALS

We are committed to exceeding our customers' expectations every time.

We aim to be market leader by providing the superb customer experiences to

all our customers and thus by gaining their loyalty.

We will seize every opportunity to innovate and lead the industry on behalf of

our customers.

Our goal is to increase the profitability and reputation of business.

PROPOSED BUSINESS LEGAL STATUS

Although the legal status of business tends to play an important role in any setup,

the proposed fast food business is assumed to operate on a sole proprietorship basis

which may extend to partnership in case of addition of new products that might add

significant Business to the existing setup.

INDUSTRY ANALYSIS

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Although the restaurant industry is very competitive, the lifestyle changes created by

modern living continue to fuel its steady growth. More and more people have less

time, resources, and ability to cook for themselves. Trends are very important and

HENNY PENNY is tasking interest to provide lighter, healthier foods at moderate to

low prices.

THE RESTAURANT INDUSTRY TODAY

The food service business is one of the largest industries in the country. This number

has been increasing for the past seven years. In the past five years the restaurant

industry has out-performed the national GNP by 40%. The reasons given by the

Folkney Report (November 1994) are

1) lifestyle changes,

2) economic climate, and

3) Increase of product variety.

There are 600 new restaurants opening every month and over 200 more needed to

keep pace with increasing demand.

FUTURE TRENDS & STRATEGIC OPPORTUNITIES

The predicated growth trend is very positive both in short and long-term projections.

Folkney states that “as modern living creates more demands, people will be

compelled to eat more meals away from home”. The DMR Industrial Report (April

1995) estimates this as high as 30% over the next five years.

In 1988 The National Restaurant Association released the Foodservice Industry

2000 report that forecasted how the industry might look in the year 2000. Some

highlights from the panel's findings:

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"Consumers will spend a greater proportion of their food dollar away from

home.

Independent operators and entrepreneurs will be the main source of new

restaurant concepts.

Nutritional concerns will be critical at all types of foodservice operations, and

food flavors will be important.

Environmental concerns will receive increased attention."

OUR CUSTOMERS/TARGET MARKET

All the youngsters, children and fast food lovers who want to get the most exclusive

and the more innovative dinning experience

WHO EATS FAST FOOD

The food concept and product image of HENNY PENNY will attract 3 different

customer profiles;

THE STUDENT -- more and more young people have developed healthy

eating habits. Some also go through a "health food phase" while in college.

THE HEALTH CONSCIOUS PERSON OF ANY AGE OR SEX -- this includes

anyone on a restricted or prescribed diet or those who have committed to a

healthy diet.

CURIOUS AND OPEN-MINDED -- "if you try it, you will like it." Through

marketing, publicity, and word-of-mouth, people will seek out a new

experience and learn that nutritious food can be tasty, fun, convenient, and

inexpensive.

WHEN DO PEOPLE EAT FAST FOOD

Lunch (44%)

Morning snack (40%)

Afternoon snack (31%)

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Dinner (19%)

Evening snack (14%)

Breakfast (12%)

The average person (over the age of 12) eats at a fast-food restaurant an average of

9.2 times monthly.

COMPETITIVE ANALYSIS

HENNY PENNY is not without competitive pressures. Chief competitors include Yum!

Brands, McDonalds, etc

Yum! Brands are the world's largest, with 33,000 restaurants in over 100 countries.

Four of the company's highly recognizable brands, KFC, Pizza Hut, are global leaders

of the Mexican, chicken, pizza, quick-service food categories. Yum! has a workforce

of 272,000 employees and is headquartered in Louisville, Kentucky.

McDonald's Corporation (McDonald's) is the world's largest foodservice retailing chain

with 31,000 fast-food restaurants in 119 countries. The company also operates

restaurants under the brand names 'The Boston Market' and 'Chipotle Mexican Grill'.

McDonalds operates largely in the US and the UK and is headquartered in Oak Brook,

Illinois employing 447,000 people.

MAJOR COMPETITORS

McDonald’s

KFC

SWOT ANALYSIS

HENNY PENNY restaurant is well positioned to leverage its strengths and address

reasonable threats, weaknesses, and opportunities. The table below highlights these

Strengths, Weaknesses, Opportunities, and Threats.

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Strengths

It’s the first online fast food restaurant in the history of Pakistan

Menu reflects demand for fresh, healthy and fast food.

Use of non-traditional channels.

Partnering with the Pakistan food association

Customizable menu offerings.

Staff training is structured and designed to assure rapid start-up and success.

Convenience is an important factor of fast food restaurant i

Weaknesses

Employee turnover is high.

Lack of trust of general public about online order placing and then finally get

their desired food item

Opportunities

Continue to Grow Business in the whole country

Update website decor to encourage more dine-in business.

Improve Customer Service Model.

Continue to expand channel opportunities to include event wagons.

Expand packaged dessert offerings.

Continue to revise and refresh menu offerings.

Develop more partnerships with movie producers and toy manufacturers to

promote new movie releases through children's menu packaging and co-

branding opportunities.

Threats

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Food contamination

Competition.

Economic downturn.

Government policies

Bird Flu

People with the access of internet only can place online orders.

COMPETITIVE STRATEGY

There are three major ways in which we will create an advantage over our

competitors:

 

1. Product identity, quality, and novelty

2. High employee motivation and good sales attitude

3. Innovative and aggressive service options

NUTRITION CALCULATOR

HENNY PENNY serves a wide range of quality foods that can easily fit into individual

diet needs based on the principles of balance, variety and moderation. Our varied

menu and range of serving sizes make it easy to fit our food into a balanced diet and

to create a range of meal combinations that fall within recommended guidelines for

calories, fat and other nutrients.

Concerned about fat content? Need a special order? With our cooking system,

customers can special order various menu items to help meet their nutrition needs.

. Today, building on our Food Facts program, nutrition information is also included on

our double-sided tray liners and on posters that are conveniently located near our

front counters. Also, customers can get nutrition information online. Simply visit our

Nutrition Calculator for nutrition and ingredient information and to customize menu

items to your needs.

FOOD QUALITY ASSURANCE

The bedrock of all our socially responsible

supply efforts is our commitment to ensuring

that all the foods and beverages we serve our

customers are safe. We do business only with

suppliers that share this commitment and

work with them to continuously monitor, test,

and track our ingredients. We have stringent

standards and checks in place in critical areas

throughout the food supply chain—from "fork

to farm."

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HENNY PENNY is also helping you learn more about our food by adding nutrition

information on some of our packaging. Some of our packaging now includes the

HENNY PENNY Nutrition Chart

Our goal is to provide you with the information you need to assist you in making

sensible decisions about balance, variety and moderation in your diet.

PURCHASING HIGH-QUALITY SAFE FOOD PRODUCTS

Companies that supply food products to the HENNY PENNY must have a number of

food safety programs in place. They include, among others, programs for sanitation,

pest control, and microbiological control, and a hazard analysis critical control point

(HACCP) plan and program. HACCP is widely recognized, worldwide, as an effective

method of preventing food-borne illnesses.

ENSURING FOOD SAFETY AT THE RESTAURANT LEVEL

Food safety training begins the first day an employee arrives for work, with an

orientation to our standards. It is reinforced and expanded in the curricula and

materials that prepare restaurant employees for more advanced positions. Shift

managers must successfully complete an entire course in food safety before being

certified as capable of managing a shift alone.

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Our Operations and Training manual for restaurant managers includes a whole

chapter on food safety, with requirements and guidance that cover all the critical

control points at the restaurant level—from supply and delivery through storage,

preparation, and holding.

Food safety procedures are monitored by staff operations consultants, who regularly

visit our restaurants to advise managers on operations. The consultants also conduct

periodic restaurant operations reviews, which include assessments of food safety

procedures. Managers are expected to correct any irregularities identified.

Onsite assessments are also used to identify needs for expert assistance and for

further development of our training programs. They are an important factor in

evaluating company-operated restaurant managers and in deciding whether

owner/operators are qualified for additional restaurants and for continuation within

the System.

INVENTORY MANAGEMENT SYSTEM OF HENNY PENNY

Just-in-Time (JIT) inventory is the big thing right now in operations. HENNY PENNY

is another example of a JIT system wherein henny penny’s doesn’t begin to cook its

orders until a customer has placed a specific order. Now, due to more sophisticated

PACKAGING

Packaging design is a fundamental part of our

top quality customer service. Many of our

menu offerings have unique packaging

designs to provide insulation, help ensure food

safety, and make them convenient for

carryout. This gives us many ongoing

opportunities to minimize the environmental

impacts of our packaging and to provide

industry leadership in natural resource

conservation.

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burger-making technology (including a record-breaking bun toaster), henny penny is

able to make food fast enough to wait until it's been ordered.

WHAT ARE THE BENEFITS FOR HENNY PENNY?

The major benefits for HENNY PENNY are better food at a lower cost.

HENNY PENNY has found something that allows them to improve quality and lower

costs.  Let's take a look at how it does both.

1. Improved Quality

the benefits of a better tasting burger should be fairly apparent.  Unless of course

you prefer aged burgers, the fresher burger is going to be higher quality if made

fresh just for you.

The less obvious benefit is the higher quality customer service that arises from the JIT

burger assembly.  When HENNY PENNY waits for you to order the burger, they do a

few things to improve customer service.  First of all, when you place a special order,

it doesn't send henny penny into a panic that causes huge delays.

Now that HENNY PENNY is in the practice of waiting until you order a burger until

they make it, they don't freak out when they have to make a special order fresh just

for you.  This higher quality customer service is subject to henny penny's ability to

actually produce faster.  Without this ability, henny penny's ordering costs would be

sky-high because the costs associated with ordering would be the loss of customers

tired of ordering fast food that really isn't fast.

2. Lower Costs

The holding costs for burger parts are fairly high because of its spoilage costs. 

Frozen ground beef that's good today might not be so good in a few months.  Once

cooked, the same ground beef's spoilage rate shoots through the roof.  Instead of

having a shelf life of months or weeks, the burger needs to be sold within 15 minutes

or so.  The holding costs go from roughly 20% per week to 100% per hour.

For HENNY PENNY, the benefits of JIT are fairly clear

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RAW MATERIAL SURVEY

RAW MATERIAL SURVEY

The adequate material will be available to support our project from local market

suppliers like K&N, Dawn bread. Raw material used in our products belongs to the

following categories

Natural form ( chicken , vegetables, rice)

Finished form ( oil, bread bun, butter cheese ,spices, beverages)

PRODUCTS

Henny Penny’s suppliers play a pivotal role in our success, providing quality products at competitive prices.

Together, suppliers and the Company create new products, help reduce costs and ensure our customers receive the same great taste of henny penny in every community across the country.

In essence, we shop where our customers shop - our shopping basket is just a bit bigger! Henny penny buys and serves the same wholesome foods our customers use at home, supplied by brand name companies which Pakistanis know and trust.

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Chicken Piece Chicken Burger Chicken Sandwich Coke

Chicken Cheese Egg Sandwich Sprite

Burger Club Sandwich Fanta

Zinger Burger French Fries

Product Raw material used

Fried chicken Chicken, floor, oil, spices

Burger Bun, chicken ,floor, oil, mayonnaise,

salad, cheese

Salads Fruits, Vegetables, chicken, pasta,

macaronis

Sandwiches Bread, chicken, egg, vegetables ,butter,

mayonnaise

French fries Potatoes, oil

Production process flow

Products

Fried Chicken

BurgersSandwiche

sSalads Beverages

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Fried chicken Burger Rice Sandwiches French fries

Raw material Raw material raw material Raw material Raw material

Freezing Freezing Cutting Cutting Pealing

Marinating Marinating Cooking Mixing Cutting

Frying Frying Serving Filling Washing

Serving Filling Serving Frying

Serving Serving

Operating Facilities and Equipment to run the business:

1. Kitchen Equipment

Commercial Fryers

Hot Food Storage

Steam Equipment

Commercial Ovens

Wood Cabinet Carts

Work Tables

Tissue rolls

Cutlery sets

Freezers

Generators

Microwaves

Waste bins

3. Cooking equipment

2. Kitchen apparels

aprons

bandannas

caps& hats

chef coats

chef hats

face masks

finger guard

kitchen gloves

4. Stationary

Register rolls

Sales book

Tape products

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Restaurant Toasters

Sandwich Grills

Sandwich Press

ORDERING SYSTEM

It is now easier than ever before to order a fast food delivery from your local

takeaway because you can do it over the internet. Using this website, you can

HENNY PENNY fast food restaurants in your local area and see the entire menu

online. Ordering is just a matter of clicking on what you want and entering your

address. The order be sent to the fast food restaurant for delivery to you - it's as easy

as that. Best of all its completely free!

You don't have to be a member to use this website but if you sign up for a free

account, it will make ordering food even easier in the future.  You can store all your

details so that you only have to enter them once.  Signing up also lets you to see a

past history of all your orders.  You can even see your favorite meals and quickly re-

order them.

Ordering

you start by entering your postcode.  Check out the list and select whichever type of

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food that you feel like.

Instead of ordering by phone and going for your usual burger and chips, you get to

see the full menu of this fast food place.  Decide what you want and simply click on it

to add it to your shopping list.  You'll see this at the left of the screen and it shows

you everything you've ordered along with the total price.

we give you the chance to customize your order by selecting the type of sauce you

want on your burger or whether you want salad on your kebab.  In your shopping list,

you might see a cross like this next to an item.  This means that you can customize

this item.  Just click on it to see all the choices you have.

When you're sure you've chosen everything you want, just click on 'Place Order'.

After letting us know the delivery address of your order and choosing whether you

want to pay by cash or card, just sit back, relax and wait for your food. 

What happens next?

At any time, you can check on the status of your order by using the order tracking

system on this website

PAYMENT PROCEDURE

On line payment through credit cards

in cash at the time of delivery of order

LOCATION

To run the business we have selected the most favorite site of fast food lovers i.e.

M.M ALAM Road

DEPARTMENTS OF FAST FOOD RESTAURANT

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Finance department

marketing department

Operations department

purchasing department

customer services department

Finance department:

This department is responsible to arrange the cash inflows of the business. it also

identifies the sources from where the finances can obtain to run the business

operations smoothly.

Basic source of financing are:

Banks.

Credit Unions

Family

Network of connections

With the loan provision proper accounts of cost and revenues are maintained round the year.

Such as:

Average Sale per Customer = Total Sales / Number of Customer transactions

This can be done by the year, month, week or day.  The important thing is sales

members need a target to aim for and this is one of the most effective ways of doing

this

Sales per Full time Team Member = Total Sales / Number of full time equivalent

team members.

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To allow you to benchmark with other businesses you need to look at full time

equivalent team members to get a comparable figure

Labor Costs as a Percentage of Sales = All payroll expenses related to Sales x 100 \ Total Sales.

This tells you the cost of doing business with your present team

Return on Investment:there are two ways of doing this:

Return on Total Assets (ROA %) = Earnings before Interest & Tax (EBIT) x 100 \ Total Assets

Return on Equity (ROE %) = Earnings after Tax (EAT) x 100 \ Owners Funds

NOTE: An old saying "If you can't measure it then you can't manage it."

Marketing department:

The marketing department focuses on designing colorful advertising and promotion materials.

WE BELIEVE:

Your team has the ideas that can help you be topical.  Typical businesses tend not

involve the team in marketing strategies.  Topical businesses constantly involve the

team in the ideas loop.

Once a month take a couple of hours to work “on” your business with your team,

provide some refreshments, and brainstorm ideas.  Set a budget (which could be nil)

prior to the session so the team have a parameter to work within.  The subject could

include how to develop unique displays, marketing campaigns or advertising to get

more people through your front door

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MARKETING PLAN & SALES STRATEGY

MARKET PENETRATION

Entry into the market should not be a problem. The store has high visibility with

heavy foot traffic all day long. The local residents and students always support new

restaurants and the tourists do not have fixed preferences. In addition, $10,000 has

been budgeted for a pre-opening advertising and public relations campaign.

Marketing Strategy

Focusing on the unique aspect of the product theme (healthy, tasty foods) a mix of

marketing vehicles will be created to convey our presence, our image, and our

message.

Currently advertisement is being done through:

E-mails Bill boards

Advertisement on different entertainment sites

Print media

Operations department:

This department focuses on preparing food efficiently

Purchasing department:

Is responsible to manage the adequate number of supplies and chicken purchases at

the right time and in the right quantity.

Customer services department

Are concerned to tackle and answer the complaints of customers in the most

congenial way. Any inconvenience faced by customers is tried to resolve through

FAQs

E-mails

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If you're having any problems with this website then please don't hesitate to contact

us.  You can find all our details on our contact page.

If you have any problems or disputes with any of the fast food order that we serve,

please contact us and we will investigate.

We are also interested in your comment and suggestions.  This website is for you so

if you can think of anything we can help with, just let us know.

MANAGEMENT REQUIRED TO RUN THE BUSINESS

1. Fast food manager

2. HR manager

3. Quality assurance manager

4. Training & development officer

CALIBER OF HR

Designation/type no

owner 1

kitchen supervisor 2

shift supervisor 3

cook 4

take away order taker 1

dish washer 2

cleaner 1

guard(12hour) 1

Total 21

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Excellent customer service skills

Ability to lead and motivate teams and influence people

Good organizational skills

Energy and stamina

Decision making ability and problem solving skills

Strong communication skills, tact and diplomacy

LONG-TERM DEVELOPMENT

GOALS

HENNY PENNY is an innovative concept that targets a new, growing market. We

assume that the market will respond, and grow quickly in the next 5 years. Our goals

are to create a reputation of quality, consistency and security (safety of food) that

will make us the leader of a new style of dining.

STRATEGIES

Our marketing efforts will be concentrated on take-out and delivery, the areas of

most promising growth. As the market changes, new products may be added to

maintain sales.

MILESTONES

After the restaurant opens, we will keep a close eye on sales and profit. If we are on

target at the end of year 1, we will look to expand it to other countries.

RISK EVALUATION

With any new venture, there is risk involved. The success of our project hinges on the

strength and acceptance of a fairly new market. After year 1, we expect some

copycat competition in the form of other independent units. Chain competition will be

much later.

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