1. Feasibility Report On Fast Food
Restaurant
Pr esen ted BY: -
A BHIJ EET
KA R M A KA R
MT1 4 I N D 0 01
In d u strial
En g in eer ing

2. 1.Introduction
Fast food is food which is prepared and served quickly at outlets
called fast-food restaurants. It is a multi-billion dollar industry
which continues to grow rapidly in many countries. A fast-food
restaurant is a restaurant characterized both by food which is
supplied quickly after ordering, and by minimal service.

3. Purpose
This project is developed to provide the entrepreneur with
potential investment opportunity in setting up and operating a
medium sized fast food restaurant offering a variety of food
items to the general public
The project is designed to provide relevant details (including
technical) to facilitate the entrepreneur in making the decision
by providing various technological as well as business
alternatives.

4. Fast Food Industries
The presence of multinational fast food chains like McDonalds,
KFC, Pizza Express, Pizza Hut, Subway etc. have somewhat
catered to the high income segment therefore developing a
niche as upscale fast food restaurants.
However much of the middle-income segment (which forms a
major chunk of fast-food goers) prefers visiting local outlets
that offer low cost fast food, hence more frequent visits.

5. 2.Raw material study
• Chicken, Fish, egg
• Vegetable-potato, Tomato, Onion, Ginger, carrot and many
more
• Cheese, Bread
• Wheat, Rice
• Milk
• Butter
• Oil
• Other ingredients
Approximately total cost of 150000 /- month Expected.
(Including its preparation)

6. 3.Market Study
India, currently ranked as 2nd in terms of total population, is
characterized by a population growth rate of 1.59% (Indian
Economic Survey 2013)
Total population of India in recent survey is 1.252 Billion
people .
 With this, the per capita income has increased to GNI US$
5300 while the productive age group (15 to 64) years is said to
take the major chunk of population (67% of total population)
by 2020.
The growth rate in food consumption is also augmented by
the rapid increase in the employment rate for males / female
population aging between 20 to 29 years (fast food goers)
hence the greater income contribution to the overall income
generated is expected to be higher.

7. PopulationGrowth-AsperNationalCommissionof
Population(NCI)andCensusIndia
1.06
1.08
1.1
1.12
1.14
1.16
1.18
1.2
1.22
1.24
1.26
1.28
2005 2006 2007 2008 2009 2010 2011 2012 2013
p
o
p
u
l
a
t
i
o
n
B
i
l
l
i
o
n
s
Series1

8. GDP (AsperUnionBudgetandEconomicSurvey)
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2005 2006 2007 2008 2009 2010 2011 2012 2013
US$
Billions
Series1

9. GNI growth rate (inUS$)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009 2010 2011 2012 2013
G
N
I
P
E
R
C
A
P
I
T
A
Series1

10. Frequency Of Fast –Food
ThisisthestudydonebyGULFnewsthisresultshowsthat
72%ofsurveygroupeatatafastfoodrestaurantonceaweek
44%
14%
8%
6%
28%
Fast-food consumption rate
Once
twice
More than thrice
Every Day
never

11. 4.Demand Study
• There is no restaurant in this region around 4-5 KM.
• Naya Raipur is going to be declared as a new capital of
Chhattisgarh.
• More traffic intensity
• Large number of industrial employee staying near by places
and they are likely to do their dinner at fast food places.
• This region required new market for food and technology.

12. How To Start A Restaurant?
• Work in a restaurant
• Know your target market
• Select a service style or food concept
• Develop a business plan
• Create “the menu”
• Chose a location and layout
• Getting the appropriate finding
• Be familiar with safety regulation
• Hiring employees
• Advertise and market

13. 5.Location Study
• Anticipated sales volume
• Accessibility to potential customers
• The rent-paying capacity of your business
• Restrictive ordinances
• Traffic density
• Visibility
• Customer parking facilities
• Proximity to other businesses
• History of the site.
• Future development

14. In this project Raipur is the good
location…
22%
20%
17%
24%
17%
Population
Bilaspur
Durg
Raigarh
Raipur
Rajnandgaon
According to Directorate of
economics and statistics of
Chhattisgarh 2011 total population is
25545198
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
N
S
D
P
Millions
NSDP(Trade hotel &Restaurant)
Series1

15. Project location is between RAIPUR-VIZIANAGRAM NH-30 at
NAYA RAIPUR.
Second largest traffic intensity in Chhattisgarh.
Climate-
 Temp ranges 40-42⁰C in summer day and in winter it falls
down to 10-12⁰C.
 Humidity-average56%
 Middle income area.
Topography- The Chhattisgarh state can be divided into
3physiological zones viz. Bastar plateau , Chhattisgarh plain
and Northern Hill region. The districts of Raipur (300 m above
MSL)and Dhamtari (305m MSL) are situated in the central flat
plain of Chhattisgarh.

16. Miscellaneous
• This geographical place have large surface as well as land
water.
• Nearest to airport
• All the Historical place of Raipur is located just 0.5-1Km apart
from location in its surrounding.
• Nearest to market.
• Pollution free environment.

17. Project Location-(NAYA RAIPUR)

18. 58
30
12
% Contribution Area
Dining area
Kitchen space
Office space
6.Deciding Layout
Layout and design are major factors in your restaurant's
success You'll need to take into account the size and layout of
the dining room, kitchen space, storage .
Typically, restaurants allot 40 to 60 % of their space to the
dining area,approximately30 % to the kitchen and prep area,
and the remainder to storage and office space.
40-50% customer arrived in pair
30 % come alone or in
parties of three.
20 % come in groups of four or
more.

19. Followingthings shouldbe consideredbefore
start the restaurant…
Designing & Décor
Creating a menu
Restaurant Size- 1500 Sq. Feet
Hiring the Right Employees
• Manager / Owner-1
• Chefs and cooks-4
• Servers-6

20. 7.Legal Requirement
Food Safety and Standards Act, 2006 (FSSI) is the law which
requires the owners of all types of restaurants to register and
obtain a license with the government. The restaurant owner is
required to apply to the controller for registration of the
restaurant.
The Expenditure Tax Act, 1987 governs the taxation process
associated with the chargeable expenditure incurred by an
individual in a certain hotel or restaurant.
The Act applies to chargeable expenditure provided the
following criteria are fulfilled-
 If the charges are incurred in a hotel where the room charges
for an accommodation is INR 3000 per day or in excess of this
amount
 The charges are incurred in a restaurant

21. CHHATTISGARH FOOD SECURITY
ACT, 2012
“An Act to provide for food and nutritional security by ensuring
access to adequate quantity of food and other requirements of
good nutrition for people of the State, at affordable prices, at all
times to live a life with dignity and for matters connected
therewith or incidental thereto”.
A owner would not charge more than the standard price
including all taxes.
No provision of child labor
Waste and disposal policy of government

22. 8.Milestone Of Project
Work content
Month
1
Month
2
Month
3
Month
4
Month
5
Month
6
Month
7
Month
8
Month
9
Month
10
Month
11
Month
12
Project plan
Licensing and registration
Construction of
restaurant
Lightning and lamps
Furniture for restaurant
Decorations and cash
register
Production and
completion of menus
Advertising
Employee training

23. Project Investment
Cost
Land cost ₹ 1,125,000
Construction cost ₹ 2,500,000
Dining and Office furniture ₹ 200,000
Equipment and machine ₹ 200,000
Preliminary Expenses ₹ 10,000
Working Capital ₹ 562,000
Total ₹ 4,597,000
9.Financial Analysis

24. Land and Dedicated Space(1500 Sq. Feet)
%contribution Dedicated space
Cost per sq
feet Total cost
Dining 63 945 ₹ 750 ₹ 708,750
waiting 4 60 ₹ 750 ₹ 45,000
Kitchen 25 375 ₹ 750 ₹ 281,250
Office 1 15 ₹ 750 ₹ 11,250
Rest 7 105 ₹ 750 ₹ 78,750
Total ₹ 1,125,000
1. Land Cost

25. M/c and equipment
M/c and equipment Quantity Unit Price Total cost
Freeze
2 ₹ 25,000 ₹ 50,000
Broast M/c 1 ₹ 100,000 ₹ 100,000
Micro Wave 2 ₹ 10,000 ₹ 20,000
Hot plate for kabab
1 ₹ 25,000 ₹ 25,000
Other ₹ 5,000
Total
₹ 200,000
2. Machinery & Equipment-

26. Dining and office furniture
Description Quantity Unit Price Total cost
Dining Table(2×2) 15 ₹ 6,000 ₹ 90,000
Chairs 60 ₹ 500 ₹ 30,000
Office table 1 ₹ 10,000 ₹ 10,000
Lights ₹ 10,000
Generator 1 ₹ 50,000 ₹ 50,000
Other ₹ 10,000
Total ₹ 200,000
3. Dining& General Fixture

27. Human resource Requirement
Quantity
Salary per
month
Total
Owner 1 - -
Kitchen supervisor 2 ₹ 6,000 ₹ 12,000
Shift Supervisor 3 ₹ 8,000 ₹ 24,000
cook 4 ₹ 4,000 ₹ 16,000
Server 6 ₹ 3,000 ₹ 18,000
Cashier 1 ₹ 6,000 ₹ 6,000
Dish Washer 2 ₹ 2,500 ₹ 5,000
Guard 1 ₹ 6,000 ₹ 6,000
Total ₹ 87,000
HumanresourceRequirement

28. Utility (Monthly)
Electricity ₹ 20,000
Water ₹ 1,000
Gas ₹ 10,000
Telephone ₹ 5,000
Total ₹ 36,000
Utility Requirement

29. Working Capital
Monthly 4×Monthly
Utility ₹ 36,000 ₹ 144,000
salary ₹ 87,000 ₹ 348,000
Raw Material ₹ 70,000
Total ₹ 562,000
4. Workingcapitaland Operatingcost-

30. Other Cost-
• Machinery Maintenance-
All machines require routine cleaning and maintenance after
every three months and an annual service which costs around
1% to 5% of the total cost.
• Depreciation on Building & Equipment-
Depreciation on Shop, Equipment, Machinery and Fixtures is
assumed to be at the rate of 10% per annum based on the
diminishing balance method for the projected period.

31. Food Description Cost Price
Units
Sales
Total Sales Total Cost
Hot soup ₹ 25.00 ₹ 75.00 6 ₹ 450.00 ₹ 150.00
Chicken soup ₹ 50.00 ₹ 140.00 6 ₹ 840.00 ₹ 300.00
Plain rice ₹ 12.00 ₹ 40.00 3 ₹ 120.00 ₹ 36.00
Chicken fried rice ₹ 30.00 ₹ 80.00 12 ₹ 960.00 ₹ 360.00
Chicken chilly ₹ 30.00 ₹ 85.00 6 ₹ 510.00 ₹ 180.00
Egg rice ₹ 20.00 ₹ 70.00 5 ₹ 350.00 ₹ 100.00
Veg rice ₹ 18.00 ₹ 60.00 5 ₹ 300.00 ₹ 90.00
Beef chilly ₹ 30.00 ₹ 75.00 6 ₹ 450.00 ₹ 180.00
Manchurian ₹ 25.00 ₹ 70.00 10 ₹ 700.00 ₹ 250.00
Chicken roast ₹ 35.00 ₹ 65.00 36 ₹ 2,340.00 ₹ 1,260.00
Burger ₹ 20.00 ₹ 50.00 24 ₹ 1,200.00 ₹ 480.00
Club sandwich ₹ 35.00 ₹ 80.00 30 ₹ 2,400.00 ₹ 1,050.00
Cheese burger ₹ 23.00 ₹ 45.00 18 ₹ 810.00 ₹ 414.00
Zinger burger ₹ 40.00 ₹ 80.00 24 ₹ 1,920.00 ₹ 960.00
Total daily sales ₹ 13,350.00 ₹ 5,810.00
Monthly sales ₹ 400,500 ₹ 174,300.00
Yearly sales ₹ 4,806,000 ₹ 2,091,600.00
Additional ₹ 5,000.00
Total cost ₹ 2,096,600.00
Gross profit (yearly) ₹ 2,709,400
Monthly ₹ 225,783
Daily ₹ 7,526

32. Assumption in this analysis
Sales Increase- 15% per year
Increase in Cost of Raw Materials-10% per year
Increase in Utilities-10% per year
Increase in Office Expenses-10% per year
Debt / Equity Ratio-50:50
Depreciation-10% per year
Equipment Annual Maintenance Cost-10% per year
Tax Rate- As per the government policy

33. Loan Provider
MSME-(Micro small Medium enterprises)-Gov. of India
Which provide loan for small enterprises above 2500000 Rs.
Various Banking options are-
 SBI
 HDFC

34. Income Statement and cash Flow
analysis
• E:PPTAbhi.xlsx

35. 10.Machinery Suppliers
• Kamla Enterprises
Infront of Bohara Masjid, Near Saddani Chowk, Nayapara, Sadar Bazar,
Raipur (C.G.)
• Klowin Buisness India Limited
C-3, Sri Ram Nagar, Raipur Ho, Raipur-Chhattisgarh - 492001,
• Prem Enterprises
Saraogi House, M G Road Raipur, Raipur-Chhattisgarh - 492001, Near
Ram Sagar Para, Jawahar Nagar, Ram Sagar Para

36. 11.Impact Of This Project
Job creation- Provide jobs to the local community.
Tax revenue- Provide sale Tax to local economy.
Increase Farmer income
New market formation
Improved Health

37. Thank you !!