SCORE 11

DIS DELICIOUSNESS

PRESENTED BY :SIFUNA DISMAS

COURSE CODE :1819/205B

INDEX NO:6021010665

CENTRE NAME :SANGALO INSTITUTE OF SCIENCE OF AND TECHNOLOGY

ADDRESS: P.O BOX 158-50200, BUNGOMA

DEPARTMENT: HOSPITALITY

PRESENTED TO: KENYA NATIONAL EXAMINATION COUNCIL AS APARTIAL

FULFILMENT

FOR THE AWARD OF CERTIFICATE IN CARTERING AND ACCOMMODATION

SUPERVISOR : SIMIYU

SERIES : NOV 2024

DEDICATION
I dedicate this business plan to my entire family for the time and support

They gave me during my research and writing of this work .I further extend the same to the
entire SIST fraternity for the support they gave me tirelessly to ensure success of the
course .May God bless you.
 ACKNOWLEDGEMENT
I would like to thank my parents for the support they gave during this work

I would also like to acknowledge my teacher also the typist and librarian for

directing me to books to get information above this work.

DECLARATION
I declare that this is my original work and it has not been presented by any other

Candidates to the Kenya national examination council for the certificate in

Catering and accommodation.

BUSSINESS DESCRIPTION

BUSSINESS NAME AND ADRESS

The business name will be named Sharon’s fast food dealing with offering cooking cervices in

wedding,funerals,birthday patties to the local community. It will operate mainly full

time,business rendering services at customers.the business will be located in kakamega town

next to khetia’s supermarket along the kaka mega mumias road.

BACKGROUND INFORMATION

The sponsor of the business will be Sharon Barasa who is currently persuing a certificate in

catering and accommodation.she is a Kenyan citizen by birth.She is 24 years old from

navakholo persuiing catering and accommodation corse that has enabled her to attain skills om

how to handle herself herself as a person and how to start and run a business by herself.

BUSSINESS LOCATION AND ADRESS

The business will be located in kakamega town next to khetia’s supermarket located along

ksakamega miumias road.the area is clean and has securitythe location has a good infrastructure

such as roads and communication system.the choice is suitable because many customers can

acces,the business will use the following address;

Sharon’s fast food

p.o.box 222-5024

telephone no:0714836802
EMAIL ADRES:sharon’s fast [email protected]

MAP OF BUSSINESS LOCATION

FORM OF BUSSINESS OUNERSHIP

The business will be ouned by a sole proprietor called Sharon Barasa. She would be

resp[onmsible for the management and funding the business with capital.the starting capital at

the bussinmes will be generated from the following .

Sharon Barasa 200,000

Farmily contribution 100,000

Friends contribution 100,000

Bank loan 100,000

Total capital 500,000.

JUSTIFICATION OF THE OPPORTUNITY

The most important role that will be played by the business is to ensure that the local demand is

fully satisfied. It will also ensure that there is a growth food industry and cut down the

importance in the field the local will bwnefit a lot because there will be creation of employment

and help them earn their living,it will also offer industrial attachment to those students takind

catering and accomodtion for them to gain more skills and knowledge for the perfect of their

course,it will also come with improvement in the area it will be situated such as improving

transport and communication system as well as the living starndard of people.

THE INDUSTRY

The business will operate as food industry.the business will be expected to grow and expand due

to the increase in number of customers who are in need of catering services.technology to be

issued will involve electrical such as electric cooker,oven and microwave.the business will offer

employment to the workers who would have undergon training .

ENTRY AND GROTH STRATEGY

The mail goals in this industry will be creation of employment to people of the local village

where the industry will be located and this will lead to uplifting of the living starndard of the

people.Sharon’s fast food will offer medium prices to customers so as to serve a good number of

those who can access the place and this will attract many customers.
CHAPTER TWO

MARKETING PLAN

Potential customers

The business will target customers from kakamega county where the business will be allocated at

the central point of kakamega county by allowing a chance for cusromers from nearby counties

such as Busia,Bungoma and Trans-nzoia .the business will target both individual customers and

institution

In order to have awide coverage.

INDIVIDUAL CUSTOMERS

Individual customers are members of the public who will come and seek services directly from

the business premise. the type of customer will be reached through poster adverts, the business

will empoy the salesman who will create awareness and explain services offered with an

intension of stimulating the demand. Technology intends to cater for the needs of an individual

customers with efficiency and satisfaction of in order to increase the business rate.

INSTOTUION CUSTOMER

Institution customers are those customers who are under a common group, the business will

target the following customers;colleagues,secondary schools,universities,primary schools and

companies, the business will establish a team of aggressive salesman who will visit the

institution and offer them with services they need and help the business to stimulate the demand

where it doesnot exist.

COMPETITOR ANALYSIS

Business competitors are;

Modern kakamega catering

Big wigs catering

Sparckle meals

The business are providing similar services. in the fercisitibility study carried out gave the

followingstreng and weakness at competitor since it will be esterblished near the customers
 COMPETITOR STRENGTH WEAKNESS

Modernkakamegacatering large capintal base poor marketing

Better services poor customer

Provided services

Big wig catering better customers high prices

Relation poor services

good experience inadequate products

sparcke meals good customer limited experience

services

MARKETING SHARE DETERMINATION

The entrepreneur carried at the reastibility study in the market.the customer will be served

among the four complyinh firms ni the the following propotions modern kakamega catering 20%

of customers.bid wings catering commands 5% and sparckle meals commands 25%

customers.the business is expected to grow into high percenmtage follong superior market

strategy which will give a competitive advantage ove other conmpeting firms.
PIE CHART

Sales

1st Qtr
2nd Qtr
3rd Qtr
4th Qtr

PRODUCT STRATEGY

Sharon’s fast food is going to give good services to the members of the public. it will offer
services that are more appealing than those servicess of other catering groups.

PRISING STRATEGY

Sharon’s fast food will set its price offer carefully examining its competitor’s price. its price will
not be too high or too low.thy will be customers friendly depending on the size of people to be
fed and the distance from kakamega town.

COMPETITORS PRICE

This will influence the determine of the cost of any catering competitors may set prices
according to their own quality of services and will always come up with a fair price compared to
its competitors
DEMAND

Is the quality of service that will be acquired at a particular price and given period and also is
thec number of clients of particular products at a given time.

PROMOTIOM AND ADVERTISING STRATEGY

Our strategy will include;

A focus on good public image

Our target market will divide into three groups

The employees will inform their friends and fermily about the catering group.

We will use facebook,whatsup and twitter to update our potential customers.

PERSONAL QUALIFICATION AND RENUMERATIONS

BUSSINESS MANAGER

 She will be the owner

 Qualification of manager
 Must be 25 years and above
 Must be a Kenyan citizen
 Good communication skills in both English and Kiswahili
 Have a minimum of 5 years working experience
 Assistant manager in the same position
 Able to work in odd hours without supervision

DUTIES AND RESPONSIBILITIES

Control all the activities of the business

Making decisions in the organization

Provide all resources required in the organization

Responsible for the payment of salaries to workers

Planning the work and time schedule in the organization

Responsible for recruiting and appraisal

SALARIES AND RENUMERATIONS

A proposed salary of 30,000 per month

ACCOUNTANT

Qualifications of accountants

Should be 25 years and above

Should be able to work at odd hours

Should be a good team worker

Must have atleast cpa part (II)

DUTIES AND RERSPONSIBILITIES

 Prepare the accounts and balance them

 Prepare payroll and record records the salaries and wages of emerges
 Receive payments on behalf of the others.

CHAPTER THREE

ORGERNIZATION AND MANAGEMENT PLAN

Sharon’s fast food will be headed by the manager who will ensure there is smooth running of the
bushiness .it shall employ the logistic in charge, accountant, marketing officer, cooks and
helpers.

ORGERNIZATIONAL STRUCTURE

Structure used by manager who will control the work of members of the management team. her
has responsibly and objectives to set objectives to be achieved and coordinate the continuity of
the firm.
ORGERNIZATION CHART

MANAGER

Account Secretary logistic

Marketing officer

Cooks sales person cleaners

Artisan

SALARY

The account salary shall be cash 25,000

SALES PERSON

 Duties of sales person

 Takes records of the people entering the firm
 Allow vehicles to enter and live the firm
 Ensure that everything is inspected before entering the firm
 Ensure security is maintained in the firm

Qualifications

 Must be 25 years and above

  Must have two years experience in the same work
 Fluent in speaking Swahili and English

SALARY

 The security man hall earn 10,00 per month

CLEANERS

 The five helpers in the form will be having the following qualifications;
 Must have a KCSE certificate
 Be organized and hardworking
 Able to follow rules and regulations
 Have good communication skill

Duties of the cleaners

 Able to do any work assigned To them

 able to work under minimal supervision
 Maintain properties at the firm
 Ensuring every place is clean

COOKS

QUALIFICATIONS
 Be 25 years and above
 Fluent in good communication
 Have artisan in catering
 Have a KCPE certificate and above

Duties and responsibilities

 Able to complete to work assigned to
 Should be able to ensure all equipments are maintained
 Should clean and arrange the firm
 SALARY
Artisan will earn cash 10,000 per month

SALES EXCECUTIVE
Qualifications
 Must have a diploma in sales and marketing
 Must be 25 years and above
 Must be presentable
 Must be clean
 Must have experience in the same position for two years

Duties and responsibilities

 Marketing the organization online
 Carrying out road show and advert on radio and tv
 Maintaining and protecting kitchen equipment

SALES PERSON

Qualifications

 Must be 18 years and above

 Must be clean
 Must be presentable
 Must have good etiquette
 Must have good communication skills
 Must have a KCSE certificate

Duties and responsibilities

 Reaching out to customers and selling bread to them

 Getting feed back from customers
SECRETARY
Qualifications
 Must be 20 years and above
 Must have knowledge in computer packages
 Must be organized
 Must have good communication skills
 Must have good etiquette
 Must be presentable
DUTIES AND RESPONSIBILITIES
 Do typing
 Perform manual work such providing tea to his/her boss
 Taking calls
 Welcoming and directing guests
 Cleaning office

RECRUITEMENT,TRAINING AND PLACEMENT OF

EMPLOYEES
Sharon’s fast food will employ potential and qualified employees to
facilitate the efficiency of the firm.
Advertisement of application of the job will be posted through newspapers,
televisions and social media, application letters and curriculum vitae to be
addressed.
TRAINING
The business enterprise will improve the skills, capital and experience of its
employees through training activities.
They include
1. Allowing employees to attend shows and exhibitions
2. Sending employees to learning institutions to get required skills
3. Allowing employees to attend seminars
PROMOTIONS
The manager will be the one who will be promoting workers
Workers will be promoted if they have the following aspects
 Hardworking
 Respectful
  If one has added his/her education level
 Cooperative
 Organized and punctual

SUPPORTIVE SERVICES

In order to run a business successful, it is nesseccary to seek consultancy advice

from your competent firm so as to solve problem affecting the enterprise
accordingly.

BANKING SERVICES

The enterprise will seek banking for the following reasons

 Making payments
 Paying salaries
 Keeping money
 Making transactions

The business will use Kenyan commercial bank to do those transactions. the
address of service provided will be;

KCB BANK

ACCOUNT NUMBER

P.O.BOX:9

Kakamega

Email

Tel
CHAPTER FOUR

4.0 OPERATION PLAN

4.1 Production and service design and development

The proposed business will require production facilities in order to operate
smoothly. It will include tool, equipment and machines to operate efficiently.

The equipment and machine will help the business too in providing higher output
because machines can provide a lot of labor compared to human labor.

4.1.1 Machine tools and equipments

The proposed business will require equipment for smooth efficient and quality
production.

4.2 Production and service strategy

The business will use various methods to cater efficient production which will
motivate the workers by providing various initiatives that will move the business t
highest level.

The following methods will be applied in production strategies

o Pricing of products
o Product quality
o Relation with customers
o Ways of motivation

Pricing of the products- The proposed business will offer fordable and affordable
prices of the products to the market to satisfy the needs of the customers and attract
more customers.
Product quality- the business will offer quality products to the customer due to fact
that it will be good and shaped according to customers specification

Relation with customers-The business will maintain good contact with customers
through good language

Ways of motivation-It will motivate the employees by increase their salary and
giving them allowances

4.3 Production process

The proprietor will use the key strategy items like competitive advantage,
distinctive computers and strategies. In destructive capillarity the proprietor will
use every kind uniqueness in producing food and beverage and service to outsmart
its competitors. The competitive advantage is where the proprietor will survey its
strength to improve innovation quality and maintain steady production of food and
beverage and service to capitalize on the competition weakness and threats.
Quality of stock will be expanded once the business has stable suppliers with
output sales.

4.4. Regulations affecting operation

The business will acquire production operation license and permit from county
council of Kakamega at estimated cost of sh. 2700.

CHAPTER FIVE

5.1. Pre-operational cost

The proposed business will incur the following pre-operational cost
 ITEM COST

License and permit 31000

instralation 98450

rent 75000

Tools and equipment 140000

Machines 500,000

Electricity 2000

Transport 30000

Water bill 3550

Telephone 1000

Advertisement 19000

TOTAL 1000000

5.2 Estimation of working capital

ITEM 1ST YEAR 2ND YEAR 3RD YEAR

Current
assets

Cash in 100000 1650000 235000

hand

Cash at bank 267950 350000 450000

 Stock 543600 700000

Debtors 520000 680000 700000

Total current 2331550 338000 440000

assets

5.3 PRO- FROMA INCOME STATEMENT FOR BALANCE SHEET

WANGWELOS JOYLAND HOTEL AS AT 2021 AND 2022
ITEM JAN FEB MA APRI MA JUN JUL AU SEP OCT NO DEC TOT
CASH RCH L Y E Y G V AL
FLOW
SALES 280, 230, 230, 250,0 2600 2700 2700 2500 2400 2800 2800 2900 3130
0000 000 000 00 00 00 0 00 0 00 00 00 00
DEBTOR 130,0 1400 1200 1300 5200
S 00 0 00 00 00
TOL 2800 230, 230, 280,0 2600 2700 4100 2500 3600 4100 2800 2900 3650
FLOW 00 000 000 00 00 00 0 00 00 00 00 00 000
CASH-
OUTFLO
W
PURCH 8000 35,0 31,0 52,00 8400 8500 8400 8600 9000 3000 1000 9000 9970
ASE 0 00 00 0 0 0 0 0 0 0 00 0 00
SALARY 106, 106, 106, 106,0 1060 1060 1060 1060 1060 1060 1060 1060 1272
000 000 000 00 00 00 00 00 00 00 00 00 000
LICENS 1000 7000 1000
E 0
WATER 6000 3000 5000 6000 6000 5000 6000 4000 5000 4000 3000 6000
BILL
ELECTR 2000 3000 2000 3000 4000 4000 2000 2000 1000 2000 2000 3000 3000
ICITY 0
INSUAR 2500 2500
ANCE 0 00
TELEPH 1000 1000 2000 1000 1000 1500 1000 1000 1000 1000 1500 1500 1450
ONE 0 0 0 0
ADVER 9000 8000 9000 7000 7000 8000 9000 5700
TISEME 0
NT
TOL 269, 223, 216, 188,0 2310 2295 2330 2700 2350 1750 2500 2416 2760
OUTFLO 000 000 000 00 00 00 00 00 00 00 00 00 500
W
NET 1100 7000 14,0 9200 2900 4050 1770 3000 1250 2350 2950 4850 8395
CASH 0 00 0 0 0 00 0 00 00 00 0 00
ACCUM 1100 18,0 32,0 1240 1530 1935 3705 4010 5265 7615 7910 8395
ULATED 0 00 00 00 0 00 000 00 00 00 00 00
CASH

5.4 Preparation of Performa

ITEM 2020 2021 2022
Sales 4850000 7200000
Less cost of 830000 184900
sales
Gross profit 4020000 535100
Less expenses
Salaries & 1400000
expenses
License & 15000 18000
permit
Electricity 35000 38000
Transport 350000 4000000
Telephone 17000 20000
Advertisemen 65000 70000
t
Water 70000 80000
Insurance 68000 75000
Total 2020000 2351000
expenses
Net profit 200000 300000
before tax
Less prov for 200000 300000
10% tax
Net profit 1800000 2700000
after tax 10%
5.5 Calculation of the breakeven point

PARTICULAR AMOUNT

Fixed cost

Rent 100000

Salaries and wages 1272000

Insurance 25000

License 10000

Loan payment 100000

Total fixed cost 1507000

Variable cost

Advertisement 57000

Transport 295000

Telephone 14500

Electricity 30000

Water 60000

Total Variable cost 456500

5.5.1 Total contribution

Sales-variable
130000-456,500

=2,643,500.

5.5.2 Contribution margin percentage

= total contribution/sales x 100

=88.4

5.5.3 Total fixed cost

= 1,507,000

5.5.4 Breakeven point

Fixed cost/ contribution margin

=1,5o7ooo/ 84.45 = 1, 7844.879

5.6 calculation of profitability ration

5.6.1 Gross profit percentage

Gross profit/sales x 100

=2,363,500/3,130,000 x 100

=16.24

5.6.2 Return on equity x 1oo

Net profit after tax /owners equity x 100

=540,000 x 100
=2,000,000

=27%

5.6.3 Return on investments

= net profit after tax / total investment x100

= 540,000 / 3,972,050 x 100

=13.59%

5.7 Desired financing

item Amount

Pre- operational cost 1,732,050

Working capital 1,599,500

Fixed assets 3,972,05

Total desired financing 7303600

5.8 Proposed capitalization

ITEMS AMOUNT

Owners equity 2000000

Bank loan 700000

Friends and relatives 300000

 TOTAL 3000000

5.9 Business Risks and Uncertainties

Death

Sickness

Pests and disease attack

Drought and floods

Fire outbreak

Stiff competition

Robbery

Accidents

Price changes

5.9.1 Solution to uncertainties

Insurance covers for the business

Security intensity

Contracting with market agencies

Control of pests and diseases

Production of quality and quantity products to fetch more customers