BUSINESS PLAN

BEST DRIVETROUGH CAFE

PRESENTED BY: MUTEGI CHRISTINE MWENDE

INDEX NUMBER:2021150495

INSTITUTION: THE NYERI NATIONAL POLYTECHNIC

UNIT CODE NO:2819/306

PRESENTED TO: THE KENYA NATIONAL EXAMINATION

COUNCIL PARTIAL FULLFILLMENT OF DIPLOMA IN CATERING

AND ACCOMODATION MANAGEMENT.

SUPERVISOR: MADAM MARGRET

SERIES: NOVEMBER 2024

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 DECLARATION
I hereby declare that this business plan is my work, it has never been written,
printed or presented to Kenya National Examination Council by anybody.

NAME: MUTEGI CHRISTINE MWENDE

Signature:

Date:.30/10/2024

SUPERVISOR: MADAM MARGRET

Signature:

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 DEDICATION
I humbly dedicate this project to the Almighty loving God, for the far He has brought me

since the start till my finalization. I also would like to dedicate to my loving family and

supervisor for the support and guidance he has given to me throughout the activity to ensure

that I come up with this excellent and successful work.

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 ACKNOWLEDGEMENT
I would first l give thanks to God for enabling me this far in carrying out this project. Then I give
thanks to my parents, siblings and friends for helping me financially and morally as I did this plan and
during my education process. Lastly to my lectures who helped me in guidance to writing.

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 TABLE OF CONTENTS
DECLARATION.............................................................................................................................ii

EXECUTIVE SUMMARY............................................................................................................vi

1.0 Business Description............................................................................................................vi

2.0 Marketing Plan.....................................................................................................................vi

3.0 Organization and Management Plan...................................................................................vii

4.0 Operational Plan.................................................................................................................vii

5.0 Financial Plan......................................................................................................................vii

2.0 BUSINESS DESCRIPTION.....................................................................................................1

2.3 Business Location and Address........................................................................................1

2.4 TYPES OF BUSINESS.........................................................................................................2

2.5 Business Ownership...............................................................................................................3

2.6 Products and Services............................................................................................................4

2.7 Justification of Opportunity...................................................................................................5

2.8 Industry..................................................................................................................................5

2.9 Business Goals.......................................................................................................................6

2.9.1 Short term goals..............................................................................................................6

2.9.2 Long-term goals..............................................................................................................6

2.10 Entry and Growth Strategy..................................................................................................7

2.10.1 Entry plan......................................................................................................................7

2.10.2Growth strategy.............................................................................................................7

CHAPTER THREE.........................................................................................................................8

3.0 MARKETING PLAN................................................................................................................8

3.1 Customers..............................................................................................................................8

3.1.1 Individual customers.......................................................................................................8

3.1.2 Institution all customers..................................................................................................9

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 3.1.3 Organization customers..................................................................................................9

3.1.4 Domestic customers........................................................................................................9

3.2 Market Share..........................................................................................................................9

3.3 Competition.........................................................................................................................10

3.3.1 Table Likent Scale Table.................................................................................................11

3.4 Methods of Promotion and Advertisement Strategies.........................................................11

3.4.1 Promotion.....................................................................................................................11

3.4.2 Advertising strategies...................................................................................................12

3.5 Pricing Strategy...................................................................................................................13

3.6 Sales Tactics........................................................................................................................13

3.7 Distribution Channel or Strategy.........................................................................................14

CHAPTER FOUR........................................................................................................................15

4.0 ORGANIZATION AND MANAGEMENT PLAN................................................................15

4.1Business Manager and Qualifications..................................................................................15

4.2 Personnel Duties.................................................................................................................16

4.3 Recruitment, Training and Promotion.................................................................................18

4.3.1 Recruitment...................................................................................................................18

4.3.2 Training.........................................................................................................................19

4.3.3 Promotion.....................................................................................................................20

4.4 Remuneration and Incentives..............................................................................................20

4.4.1 Remuneration................................................................................................................20

4.4.2 Incentives......................................................................................................................21

4.5 Licenses, Permits and By-Laws...........................................................................................22

4.5.1 Licenses and permits.....................................................................................................22

4.5.2 By-laws.........................................................................................................................23

4.6 Support Services..................................................................................................................23

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CHAPTER FIVE...........................................................................................................................24
 5.1.1 Machines tools and equipment.....................................................................................24

5.4.2 Safety............................................................................................................................28

5.4.3 Environmental regulations............................................................................................29

CHAPTER SIX..............................................................................................................................29

6.0 FINANCIAL PLAN................................................................................................................29

6.1 PRE-OPERATIONAL COSTS...........................................................................................29

Table6.1 pre-operational costs...................................................................................................29

6.2 Working capital...................................................................................................................30

PROFORMA INCOME STATEMENT....................................................................................32

PROFORMA BALANCESHEET.............................................................................................33

BREAK EVENPOINT..............................................................................................................34

Total contribution..................................................................................................................35

Contribution margin percentage............................................................................................35

DESIRED FINANCING...........................................................................................................35

PROPOSED CAPITALIZATION.............................................................................................36

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 CHAPTER ONE

EXECUTIVE SUMMARY
1.0 Business Description

The sponsor of the proposed business will be Christine Mutegi who shall also be the

manager. The name of the proposed business is best drive through café which will be a

sole proprietorship. The business will deal with providing of guests with so delicious

and quality food. The proposed business will be located at Nanyuki town at Engen

petrol in Laikipia county. The address of the proposed business will be:

BEST DRIVE THROUGH CAFE

P.O BOX 836-10400

NANYUKI

Email: [email protected]

Telephone 0791154376

2.0 Marketing Plan

Best drive thru cafe will categorize its customers into four groups as follows.

i. Individual customers

ii. Institutional customers

iii. Organization customers

iv. Domestic customers

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The business will have 60% of the market share at the beginning of its operations the

competitors shall be mainly good hope and road side of Swahili Dishes Restaurant. The

main method, trades how the distribution channel to be adopted will be as follows

Retailer Customers

3.0 Organization and Management Plan

Best drive through café will operate under a sole proprietor form of business where the

owner of the proposed business will also be the manager. The manager will be assisted

by 5 others personnel to ensure the objectives of the firm are achieved promotion will

also be offered to employees in various ways in order to motivate them. This will be

mainly based on hard work and discipline

4.0 Operational Plan

For best drive thru café to operate effectively production facilities will be required. May

will include mainly tools and equipment which will make work easier to workers. The

production strategies that the business will focus on include product quality product

pricing customer relation and motivation. The business will employ permanent workers

to own land equipment will also remain fixed assets to the enterprise

5.0 Financial Plan

Objectives:

To determine the operational expenses of the year. To determine the ending cash of each

year.

To determine profit and loss of the business.

To establish the financial position of the business. To determine the performance rate

The business will have the following as sources

ix of funds.
Owner equity Ksh 100,000 Family and friend Ksh 50,000 Bank loan 350,000

TOTAL 500,000

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 CHAPTER TWO

2.0 BUSINESS DESCRIPTION

2.1 Background of the owner
The sponsor of the proposed business will be Mutegi Christine Mwende who will also be the manager. She is
24 years a old and single
2.2 Business name
The name of the business will be BEST DRIVE THROUGH CAFÉ which will be a sole proprietorship. The
term best is derived from the quality of services that shall be offered to customer which will be of high-quality
standards in relation to the establishments. The name of the business will be attractive to customers since
many in the people the areas are farmers. It would also be likeable simply because of the product offered
which are of I quality. It is also easier to pronounce, memorize and understood by customers.
2.3 Business Location and Address
The proposed business will be located at Laikipia county Muthaiga Street at NANYUKI Town. This will be at
the heart of a busy building at Engen petrol station. The business location was considered due to security good
transport, network, near potential customers whom over from the market, water availability and near the
farmer. These will be high probability of business to succeed in the regional most of the people in the region
are farmers, most of the farmers in the area are coffee farmers, dairy farmers and agricultural farmers such as
cabbages carrots, spinach, tomatoes, watermelon and cash crops. As the population of the area is medium, it
will enable the business to grow fast. Also as the geographical relief of me region is good having short rains
and long rains.

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2.3.1 : THE MAP LOCATON: ADDRESS
The address of the proposed business shall be:

BEST DRIVE THROUGH CAFE

P.O BOX836

NANYUKI

Email: [email protected]

Website: www.bestcafe. co.ke

Telephone:0791154376

Best drive through cafe

Engen petrol station

Laikipia county

Meru county

Nyeri Laikipia RD

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2.4 TYPES OF BUSINESS

The proposed business is expected to commence its operations from April 2024 and will require

the total capital of ksh 500,000. The proposed business will draw its capital as follows;

Owners’ savings 100,000

Friends and relatives 50,000

350,000
Bank loans
Total 500,000

2.5 Business Ownership

The business will be a sole proprietorship form of business the manager will be the case the

manager will enjoy all profits made by the business and also suffer the losses, the business was

chosen due to the following:

advantages

i. The business has a high level of confidentiality

ii. One enjoys profitable one :Since it is a sole proprietorship type of business the owner

will be getting all the profit alone after paying all the expenses and employees which is

an advantage.

iii. There is quick decision making: The business will have its own secrets and the manager

will be making final decisions, thus making her to decide faster even without any

consultation from anybody.

iv. Flexibility of the business is high. The proprietor can choose to change the business at his

own will

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 v. Capital required is small in relation to the business established

vi. Easy to the manager who is the owner will have all the freedom since there is no

supervision which is an advantage in sole proprietorship kind of business.

Disadvantages

I. Limited capital Access- The proprietor may have challenges in raising funds where

by se may rely on personal savings , personal loans or credit to fund the business

II. No tax sifting strategies-unlike corporations, the sole proprietor cannot retain

earnings in the business income

III. Risk of personal financial ruin- If the business fails, the owner suffers all losses

which can lead to business failure

IV. Difficult in budgeting- managing finances can become complex without a clear

boundary because business and personal assets

V. The proprietor must handle all aspects of the business including service which may

lead to overwork and burn out

2.6 Products and Services

The major objective of the business is to sell high quality coffee with different tastes. The café

will of the first Cast services intake away sand also proper preparation and portioning of the

foods and thus leave my customers happy and satisfied. The future development plan of the

business will be having a pick-up to offer transport services to the customers. It will also expand

the business as opening other branches in other towns and also to home more products of

different types which will satisfy the customers.

The business intends to start operation on April 2024 of which It will start by offering products

like;
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  Fast foods e.g french fries, sausages and samosa

 Beverages, both hot and cold

 pastries

The owner will be having the knowledge of giving advisory services and free samples to her

customers .The Advisory Services will be free to all the customers. The advisory services will be

free to all the customers as most of products are used in agriculture section.

2.7 Justification of Opportunity

The business will be located at the heart of a busy petrol station where there is availability of

good roads, freshwater, good network connection, electricity and security.

Engen petrol station being the largest in NANYUKI surrounded by very many businesses, tourists

,animal conservancies and a dense population .It is also close to Nanyuki market .thus making

raw materials readily available and at affordable prices. The business will contribute to high

living standard to local people through creation of employment this is to help inefficient

workflow in the business.

2.8 Industry

Best drive thru cafe falls under the hospitality industry. This is because it will be concerned with
preparing, producing and selling food and services.
The industry is very competitive in that technology is rapidly changing and one has to be
adaptive to remain competitive by providing modern fast food production and beverage service.
By this appropriate technology will be employed to my business to make food production
faster, high quality and acceptable by customers. This will lead to the first growing of the
business to this industry. As the proprietor I will give offers and discounts to our products to
attract more customers. Hence high rate of growth and profit margins.
The industry is faced by problems such as;

 Insecurity

 Lack of well-equipped materials

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  Poor technology

Some of the solutions facing the industry include

 The government has introduced the rains measures such as deploying security officers in

various part of the country to protect the industry

 The government has should innovated modern technology from high developed countries

to help in the production of industry

2.9 Business Goals

2.9.1 Short term goals

Those are goals to be achieved with in a span of one year of operation and they include:

i. Increasing product variety

By the end of five months the business intend to have increased the product variety and offer

products of high quality

ii. Increasing sales

The business will increase its sales from 30 to 35% within eight months of its operation

iii. Advertisement of product

The business will have advertised its products through the media such as newspapers radio and

posters and also some TV stations.

2.9.2 Long-term goals

These are the goals to be achieved beyond one year of operation some of the long terms goals

that Anita agrovet attends to achieve include.

 The business intend to establish other branches in other areas like Naromoru town in the

next five years

 The business intend to buy private vehicles for the workers and some pick-up for offer

transport by the end of four years.

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  By the end of four years the business will create more employment through opening more

branches the number of employment shall increase from eight to twelve thus creating

employment.

 The proposed business shall have managed to build its own promises after a period often

years

2.10 Entry and Growth Strategy

The market will derive strategies to facilitate significance in the market. Pricing, the strategy is
to sell goods at affordable prices. There will be a promotion of products to the customers at at
least 2 days a week.
2.10.1 Entry plan

These are the methods used to reach to people for them to know about the enterprice. The

proposed business will use the following strategies to reach customers

 Billboards

The proposed business shall put billboards and posters which will be clearly written for people to

understand

 Free gifts/samples

The proposed business will be giving free samples for the customers who wil purchase in bulk

so that the business can maintain longterm relationship with customers

 Advertisement through radios

The proposed business will put some advert on radios channel that so as reach many people

2.10.2 Growth strategy

They will include

 Road shows

The proposed business will be organizing road show to show case the products that we wil be

offering this will attract more people to buy products.

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  Tradeshows

The proposed business will be organizing road show to show case the products that will be

organized by the various county government across the country

 Advertisement on television
The proposed business will be putting its adverts on the citizen and local television network

channels that most people like

 Advertisement on newspapers and magazines

The proposed business will be putting its advert on the daily nation newspaper especially in the

front page to attract more people and also on magazines.

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 CHAPTER THREE

3.0 MARKETING PLAN

3.1 Customers

They are those customers who have the potential and willingness to purchase certain product in

the business the group of customers are individual customers, domestic, customers, institutional

customers and organization customers.

3.1.1 Individual customers

Individual customers are those customers who will buy products at small percentages incase they

are purchasing for their need. There also other individual customers who may buy products in

large quantities especially those individuals who have a large family or came in a group to the

restaurant

3.1.2 Institution all customers

These includes schools and retail shops, all these people are esteemed customers who would

prefer good food or be taken to their offices or just flood in the restaurant.

3.1.3 Organization customers

The organization body will include mainly the staff from the animal orphanage, concervancies

and clubs who will always come to lunch since they are given a set aside time for lunch.

3.1.4 Domestic customers

The business will also offer services to domestic customers. These are customers who buy goods

for their use. The potential customers will get the best products and of great quality also our

business will offer after sale services like transport of meals to offices or homes.

The business will sell the product to everybody despite of their age, background or education.

These will ensure that everybody get the services when needed. It will also employ employee

according to their education background to ensure every employee fits to his or her area of
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working place.

The business will sell the product at any time since it will operate on 24/7 basis. The means of

payment will be on cash or cheque but also a credit to those customers who may not behaving

cash

3.2 Market Share

The proposed market share in absolute size will be 60% of the whole market dealing with similar

products and services. The competitors who are crave kitchen and Tai’s restaurant who will get

10% and 30%

The objective of the market share are:

 In 3-5 years ’time the business will have increased from 60-80% market share.

 The economy will have improved as the customers

3.3 Competition

The business have competitors who operate in the same area. They include Anka resort, beisa

hotel and Emess Restaurant competition I important tin those business since it will allow

operation to be taken keenly and by so doing the enterprise is able to identify the weaknesses and

solve them.

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Competitors Strength Weaknesses Opportunity Threats

Name

BEST  High  Low customer  Road  Lack capital

DRIVE quality service development to expand the

THRU  Low price  Raw materials business

CAFÉ  Qualified are locally

employees purchased

 Computeri

zed

system

BEISA  High  No  Lack of

RESTAUR quality computerized  High pricing finances

ANT  Low price system in relation to  Far from

 Qualified  Low customer portion development

staff service project

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’Anka  It  Low customer  Proposed  Lack of

resort strategical service Diamond city finance for

ly position  No and stadium expanding

 Low Price computerized  Far from road

system development

 Unqualified project

staff

3.3.1 Table Likent Scale Table

Competitors name Strength Weaknesses Opportunity Threat

BESTDRIVE 4 1 4 1

THROUGH

CAFÉ

BEISA 3 2 2 2

RESTAURANT

ANKA RESORT 2 3 1 3

3.4 Methods of Promotion and Advertisement Strategies

3.4.1 Promotion

Promotion is an attempt to influence customers to buy from an enterprise. The proposed will

focus on using the following methods:

i. Social media platforms

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The proposed business will promote the menu o the foods offered posting cooked foods from the

restaurant to get people’s eyes and attention even during offers.

ii. Free samples

The proposed business will also be giving free samples for those customers who will buy in large

quantity

iii. Tradeshow

The business will organize a tradeshow which the customers will get time to get in fee, to come

and see what we are selling.

iv. Posters

The proposed business will put some posters that is along the road for passer-by to road

3.4.2 Advertising strategies

Advertising is any paid formal non-professional presentation and promotion of ideas, goods and

services. Advertising aims at giving information of the products. Best drive thru café intends to

advertise to its customers by use of:

i. Billboards

This method will inform people move about the new business which has been opened. These

billboard will be put along the main Nanyuki-Nyeri road.

ii. Posters

The business will use posters to advertise its products on the noticeboard along Nanyuki and

Meru road and this will attract customers. This is because as people passes by they will be more

interested to know what is posted on the noticeboard.

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 iii. Social media
The business will use both local radio and television channels in all languages to reach the

customers

The proposed business will be using newspaper to advertise the product that the business is

offering to his customers and especially it will use the standard newspapers, front page and it will

be printed every Friday of the week.

3.5 Pricing Strategy

The following are the pricing strategy that the proposed business will use;

i. Open market pricing

The proposed business will use the open market pricing by comparing the competition price and

the products price will be slightly lower than the competitors

ii. Fixed pricing

The proposed business will use fixed pricing to consider the government policy determining the

current government pricing

iii. Cost pricing

The proposed business will use cost pricing method in that the cost of acquiring goods will be

determined and a small profit percentage of 10% will be added to determine the selling price.

3.6 Sales Tactics

The sale method the proprietor will employ and be selling directly to customers who come to buy

the products from the business thus making sales. This will be done to those customers who

come direct to the business and require few sales. The sales policy for the business will be sales

of attractive quality product, favorable service will be received from the business. For the

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business

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to maintain and increase sales for there will be performed advertisements, free sample and also

offering special services.

3.7 Distribution Channel or Strategy

This are efforts or methods employed to ensure that the products reach targeted customers. For

any deliveries the business will have four motorbikes which will perform delivery services. The

implications for such transport is for the inaccessible local roads mostly during the rainy season.

The business anticipates to have late or poor deliveries dew to few transport channels. The

business shall therefore work smart, so as to add on the transport channels by adding two vans,

this is help in accommodating more deliveries at ago.

Manager
Cleaner

Security Officer
Barista

Non skilled
skilled

Cashier
Head chef

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 CHAPTER FOUR

4.0 ORGANIZATIONAL AND MANAGEMENT PLAN

The owner of the business will also be the manager she will be the senior in the business. While others
will be under her. The manager shall have skills and knowledge as she possesses the field. This will
enable the head chef to run smoothly. The manger will be assisted by other personnel.

4.1 Personnel Duties

Their duties and responsibilities include:

MANAGER
QUALIFICATIONS
I. Must have a diploma in catering and accommodation
II. Must have a food handlers license
III. Must be experienced for more than one year
Duties and responsibilities
I. Responsible for staffing the business increasing job descriptions, running advertisements,
interviews employees.
II. Passing and keeping communications intact to as to keep the work place run effectively
III. To ensure success of a company to run daily operations and coaching employees.
BARISTA
Qualifications
I. Have a diploma certificate
II. Experience in food and beverage preparation and customer service
III.Ability to communicate freely with customers.
Duties and responsibilities

I. Preparing and serving hot and cold beverages

II. Describing menu items and suggesting products to customers

III. Serving customers

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 HEADCHEF

Qualifications

I. Have a diploma certificate

II. Have an experience of one year

Duties and responsibilities

I. Preparing a wide range of foods and pastries such as cakes, burgers

II. Creating new and existing desserts to attract customers wants and satisfaction

III. Describing on new and existing menus to customers

CASHIER

Qualifications

I. Must have a computer certificate

II. Must have an experience of one year

Duties and responsibilities

I. Manage financial records of the business

II. Prepare pays lips and cash receipts

III. Draft financial

budget SECURITY

GUARD Qualifications

I. Must have a form four certificate

II. Must be 24 years of age and above

Duties and responsibilities

I. In charge of the security within the business

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 II. Direct guests on parking and other departments

III.Keep records of guests arrivals

JANITOR

Qualifications

I. Ready to work under minimum supervision

II. Must have a form four living certificate

III.Quick to learn and adapt

Duties and responsibilities

I. Dusting the establishment

II. Moping and drying surfaces

DRIVER

Qualifications

I. Have a driving license

II. Knowledge able about various areas

III.Have a six month experience

4.2 Recruitment, Training and Promotion

4.3.1 Recruitment

The initial recruitment of employees will be done according to the qualification needed for each

job vacancies hall be advertised locally through posters and direct conversation to various

people. It will for each job vacancies shall be advertised locally through posters and direct

conversation to various people .It will be the work of the manager to choose the most appropriate

and suitable candidate to fill line a certain post procedures which will be required to recruit

employees selecting the most qualified candidate in relevant field. It is the process of searching
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potential employees, motivating and encouraging them to apply for a job. It is also the process of

filling vacant position in the business with qualified employees.

The proposed business will use the following methods to recruit employees.

i. Application

The business will advertise in television whole people will be required to apply for the job
ii. Posters

The business will put posters to advertise vacant posts in the business

iii. Job vacancy

The business will put posts to advertise vacant posts in the business

iv. Job advertisement

The business will put job advertisement in magazines and newspapers for people to apply

4.3.2 Training
It is the process of equipping or teaching a person particular skills or form of behavior. This will

help in upgrading the skills of the employees especially for the purpose of technological change

The proposed business will use various methods for training which includes.

i. Seminars

Every employee will have their day to attend seminars which educate the people on how to treat

and serve customers

ii. Cooking lessons

iii. Lessons on how to clean different areas and surfaces

The proposed business shall apply this method to show customers the quality of the product

offered in the business

iv. Brainstorming

The business will use these method where employees will came together and raise their ideas
30
concerning the successful performance of the business

4.3.3 Promotion

Promotion will also be to ensure that the employees are rewarded and motivated to put extra

effort in their jobs promotion shall be mainly on job performance in increased hard work,

experience and commitment of the employees toward the job at each of the area.

There will also be allowances which will be form of promotion to all workers. It will include

extra pay either in cash or material from. This will assist to improve the employees standard of

living and also increase others morale or the working free.

These allowance may include medical allowance, house and transport allowance. It is the transfer

of employees from one job grade to another or appointing an employee to a position of greater

responsibly or authority. The proposed business will use the following method for promotion

1) Incentives

These shall be offered to employees inform of allowances such as medical allowance and

recreation these will enhance hard work in the business by the employees

2) Merit

The owner shall ensure merit based on promotion from a group of qualified employees in case of

vacancy in the business

4.3 Remuneration and Incentives

4.4.1 Remuneration

This is the payment made to an employee after they had performed certain duty after they had

performed certain duty after a certain period of time. The salaries will based in a way that it will

enable the business to meet its financial needs

4.4.4.1Remuneration table

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 Employment No of staff Salary/month

Manager 1 30,000

Cashier 1 12,000

Barista 2 30,000

Head chef 1 18,000

Security guard 2 20,000

Janitor 2 14000

Driver 2 18000

Total 11 152,000

4.4.2 Incentives

These are acts done as a sign of appreciation for work well done in the business

The proposed business will use the following incentives:

i. Over time bonuses The proposed business will be giving bonuses to motivate its

employees to continue working hard and even extra hours

ii. Special offer

The proposed business will also be giving goods or services at a reduced price to motivate the

employees even to continue purchasing in the business

iii. Trips

The proposed business will be organizing trips to its employees to go visit other big premises to

see and learn how they are performing

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4.4 Licenses, Permits and By-Laws

4.5.1 Licenses and

permits Insurance:

Insurance company will be considered during terises involved in the business like fire, theft,

breakdown of properties to cover the losses the business would go through these security guard

will also be insured for his life.

Registration requirement

The business must obtain registration form from the ministry of trade. It will be obtained from

Laikipia county government which grants permission for the business to operate, the cost of

registration of the business will amount to shillings through thousand.

Taxation

It will be done by Kenya revenue authority which will have to be paid, it will be 10% of the total

profit made from the business.

Before the business commences, it will have acquired the entire legal requirement necessary to

open that kind of business. This legal requirement includes.

License

The registration of the business will be done by the owner where it will receive license and

permits. Therefore trade license will be obtained from Kikuyu municipal council from the

ministry of Health.

The license will be renewed annually in every year of operation.

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4.5.2 By-laws

It is the process of making rules to the employees in an organization to control the actions of its

employees these will be done through

Remote communication

They are communications that are held through telecommunication such as phone and internet to

make sure that all the employees have the message required.

4.5 Support Services

For the business run successfully and effectively. It will obtain a professional whom will guide

the business the tactics and strategies to the business. The support services includes.

Banking

i. This will be where the power will need to open an account from the bank of her choice.

She will open an account from ekcb bank. The banking services will be there to ensure

that her income are shared at the end of the day

ii. Risks and insurance

The proposed business are insure the business under the name best drive thru café gains non-

occurrence event such as fire outbreak ,road accident and other non-occurrence event .This shall

be acquired from blue shield insurance company office in Kikuyu town

iii. Local authority

This shall provide the business with permits that allows its operation in the market area. The

permit shall be renewed after everyone year by the owner of the business

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 iv. Auditing and accounting services
This will be where the owners will be evaluating the business documents now and then to see

whether activities will be or will result to proper management ,good plans and proper decisions

for the business

v. Postal services

The proposed business will have postal services in postal Kenya Offices

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 CHAPTER FIVE
5.0 PRODUCTION /OPERATIONAL PLAN
5.1 Production facility and capacity

The proposed business will require the removing facilities for production in order to run the

business smoothly.

5.1.1 Machines tools and equipment

The proposed business requires production tools and machines for qualify operation and

efficiency, the machines, tools and equipment will be helpful for the machines, tools and

equipment will be helpful for the business since they will make work easier.

Table5.4.1 shows production, equipment and machinery table 4.4.1 production equipment and

machinery

Items No. Uses Suppliers Cst Totalcost

Oven 1 Used in baking and other Lgkenya 15000 80,000

production processes

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 Weighingscale 2 Weighing of products Owuor 1,000 2,000

electronics

Mixer 2 Used in mixing Jamaa 1500 3,000

ingredients in production electronics

Blender 2 Used for blending juices Hot point 2000 4000

and other products such

as milkshakes

Refrigerator 2 Used for making goods Hotpoint 20000 40,000

not to go bad or ferment

Microwave 1 For preheating foods and Ramptons 8000 8000

drinks before service

Gas cooker 1 Used for actual food Motopoints 20000 20000

production eg cooking

5.1.2 Firm layout

 Entrance and waiting area (welcoming entryway, waiting takeaway counter)

 Service counter and cash register(order and payment area display area for food, point of

sale(pos) system

 Barista station/preparation area (coffee equipment, sink and cleaning area, storage for

ingredients.)

 Seating area (seating types e arm chairs, tables etc., table layout, natural lit and decorations

 Kitchen or food preparation area(food preparations stations, storage for ingredients and

utensils, cleaning stations)

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  Rest rooms( customer restrooms, hand washing seating)

 Outdoor seating (shade and covering)

 Back of house and storage area( inventory, staff area)

 Circulation and workflow(customer path ways, zoning).

5.2 PRODUCTION STRATEGIES

The proposed business shall be producing products or high quality soon as the market can be

efficient and economical the proposed business shall be motivating its customer by giving them

credit facilities in order to retain them. The business shall be having a good customer relation

with customers

5.3 PRODUCTION PROCESS

The main production process will involve the railway steps

a. Welcoming the customers

The waiters will welcome the guests to their preferred table and pull chairs for them and also

welcome them with a glass of water as you wait for them to order

b. Asking the customer the order

After welcoming the customer the waiter will take orders from the customers

c. Confirming the availability of the foods present

The waiter will be confirming foods present from the chef.

d. Give the price

The price of each item is always indicated in the menu which is always at the table or the waiter

brings it for you

e. Packaging of products

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Chefs or waiters will be packaging the guests meals incase of take away orders or if the customer

wasn’t able to finish his food and request sit to be packed.

f. Bill the customers

Here the customer will be given a receipt that’s how the total amount of the products their have

purchased the customer will them pay for the goods to the cashier

The production process is likely to be affected by external factors such as

iv. Political factors

This affect the business operations during campaigns and general sections.

v. Competition

The proposed business will be experiencing competition from other Restaurants like Crave

Kitchen

vi. Government policy

The county government may impose heavy tax over the product the business will be dealing with

and this will minimize profit maximization by the owner of the business

vii. Change in technology

When there is change in technology most business normally suffer because they cannot afford to

upgrade the level of technology. Some of the possible solutions for external factors affecting the

production process will include.

i. Cheaper raw materials

The business will look for the cheaper raw materials in order to maximize the profit but the

products will be of high quality.

ii. Improved technology

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When there will be any improvement in technology, the business will make sure that it has

enhance it to be maximum in order to produce the product or good quality

5.4 Production affecting operation

5.4.1 health regulations

Are critical to ensuring the safety, hygiene, and wellbeing of both customers and employees.

They include

 health regulations require food safety and handling that is food temperature control to

prevent bacteria growth

 Should have hand washing facilities, surface and kitchen equipment sanitization, regular

pest control, restoration cleanliness for proper sanitization and cleanliness.

 Employee health checks, personal hygiene stands and protective wear to promote

health and hygiene of employees.

 Waste must be stored in covered bins and removed frequently to prevent attracting pests

and odors

 health inspections to ensure they comply with local and nation health organizations.

5.4.2 Safety

 Non slip flooring in wet areas e.g. kitchen this will prevent slips, strips and falls
 Chemical safety- tis will be achieved through h training the staff on the safe handling of
hazardous materials.
 Proper use of personal protective equipment such as gloves and aprons etc. for
the employee safety.

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5.4.3 Environmental regulations

Pollution control for instance noise restrictions, air quality standards and sewage and waste
management
Environment impact assessment (EIA)- the projects are required to undergo an environmental
impact assessment before they being operations.
Waste management that is recycling requirements e papers, plastic, lass to reduce land fill waste,
reducing food production waste.
This will ensure a favorable environment for workers and business operations

Measures of conserving the environment

A) Energy conservation- energy efficient lighting whereby replacing traditional bulbs wit

LED or CFL lighting can significantly reduce energy consumption.

B) Water recycling systems- in order to recycle water from sinks, showers etc. for non-

portable uses like landscaping and cleaning.

C) Reducing waste e.g. food waste reduction etc.

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 CHAPTER SIX

6.0 FINANCIAL PLAN

6.1 PRE-OPERATIONAL COSTS

Those are the preliminary expenses that the business will incur before it start operating

The project pre-operation costs areas presented in table 5.1

Table6.1 pre-operational costs

ITEMS Amounts

Advertising 10,000

Goodwill 30,000

Insurance 8,000

Electricity 2,000

Water deposit 2,000

License fee 10,000

Rent 20,000

Total 82,000

Cash balance = capital-pre-operational cost

500,000-82,000

=418,000

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6.2 Working capital

This is the total amount of money that will be used to run the day to day activities of the business

in order to be in the position that there is enhancement of the smooth continuity of the business,

it ensures that the business continue through the months.

Item 1styear2024 2ndyear2025 3rdyear2026

Current assets

Cash in hand 150,000 200,000 300,000

Cash at bank 350,000 380,000 400,000

Stock 50,000 80,000 100,000

Debtors 50,000 80,000 90,000

Pre-paid expenses 55,000 30,000 45,000

Total assets 655,000 770,000 935,000

Less: current liability

Bank overdraft 70,000 60,000 50,000

Creditors 30,000 10,000 5,000

Pre-payment 5,000 0 0

Total current liability 105,000 70,000 55,000

Working capital 550,000 700,000 880,000

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Working capital=current asset-current liability

Fist year=655,000-105,000=550,000

2ndYear=770,000–70,000=700,000

3rdYear=935,000-55,000=880,000

PROFORMA INCOME STATEMENT

This is the statement that is prepared inform of an account and it serves a great purpose in the

business. It used to determine the gross profit of each and every business in every financial year.

Also, its used to determine the net profit brought down in every business without giving this

statement in a business. It will be very hard to determine how the business is progressing whether

making a profit or a loss

The Proforma income statement is indicated in table

Proforma income statement

Items 2024 2025 2026

Sale 1,000,000 1,500,000 2,000,000
Less: Cost of sales 400,000 700,000 1000,000
Gross profit 600,000 800,000 1,000,000
Less Expenses
Salary and wages 152,000 152,000 152,000
Transport 10,000 12,000 15,000
Rent 20,000 20,000 20,000
Advertisement 10,000 12,000 15,000
Insurance 8,000 10,000 12,000
License and permits 10,000 12,000 15,000
Electricity 2,000 5,000 8,000
Total expenses 202,000 223,000 237,000
Net profit before tax 398,000 577,000 763,000
Less :provision for tax(10%) 39800 57,700 76,300
Net profit after tax 358,200 519,300 686700

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ASSUMPTIONS YOU ARE MAKING

Assuming working capital policy doesn’t directly impact the income statement but influences
cash availability for personal needs, potentially affecting growth.
Assume that pro forma income impact rates directly affects net income after taxes and financing
Operating expenses and fixed costs assumes, fixed costs remain stable or vary in line with
inflation while variable costs align with sales levels.
Inventory turnover rate, assumes how quickly inventory is bought sold and replaced
high turnover means less cash tied up in inventory, improving cash flow

PROFORMA BALANCESHEET

Table shows the proforma balancesheet

proforma balancesheet

Items 2024 2025 2026

FIXEDASSET

Machinery 157,000 180,000 220,000

Furniture 50,000 50,000 70,000

Equipment 90,000 120,000 165,000

Computers 9,000 17,000 24,000

Motor vehicle 500,000 500,000 1,000,000

Total asset 806,000 867,000 1479,000

ADD:CURRENTASSET

Stock 50,000 80,000 100,000

Debtors 50,000 80,000 90,000

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 Cash in hand 150,000 200,000 300,000

Cash at bank 350,000 380,000 400,000

Pre-paid expenses 55,000 30,000 45,000

Total current asset 655,000 777,000 935,000

TOTALASSET

LIABILITIES

Owner’s equity 100,000 250,000 500,000

Bank loan 350,000 - -

Add:, net profit 358,200 519,300 686,700

Less; Drawings 2,433,700 3,344,800 3702,100

Add: current liabilities 10,500,000 70,000

NETPROFIT 2,838,700 3,414,800 3757400

BREAK EVENPOINT

Particular

Particulars Amount

Fixed costs

Rent 20,000

Salaries and Wages 152,000

Insurance 8,000

Total fixed asset 180,000

Variables costs

Advertisement 10,000

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 Transport 10,000

Electricity 2,000

Purchasing 350,000

Licensing 10,000

Total 382,000

Total contribution

=Sales-variables

1,000,000-382,00

=618,000

Contribution margin percentage

Total contribution /salesx100%

618,000/1,000,000x100
61.8%

DESIRED FINANCING

Items Amount

Pre-operational Cost 82,000

Working Capital 500,000

Fixed Asset 180,000

Fixed Cost 250,000

Total 1,012,000

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PROPOSED CAPITALIZATION

The proposed capitalization will be as shown in table

Proposed Capitalization

Items Amount

Owners contribution 100,000

Relative and friends 50,000

Bank loan 350,000

Total 500,000

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