Figure 1

CHICK QUEEN FAST FOOD RESTAURANT

NABEELA FAIZ 1/11/2012

PROJECT REPORT

CHICK QUEEN FAST FOOD RESTAURANT

CHICK QUEEN FAST FOOD RESTAURANT

HEAD OFFICE
1O-A, Street No 5 ,F-7/2, Super Market, Islamabad, Pakistan. Tel: (051) 111-111-456, Fax: (051) 5896619, 5899756 www.chickqueen.com.pk

SUBMITTED TO: Mr. FAISAL MEHMOOD SUBMITTED BY: NABEELA FAIZ RGT # FA08-BS(BA)-20 DATE: 11TH JANUARY, 2012

DEPARTMENT OF MANAGEMENT SCIENCES

COMSATS Institute of Information Technology Attock Campus

PROJECT REPORT

CHICK QUEEN FAST FOOD RESTAURANT

EXECUTIVE SUMMARY: Chick Queen is a locally owned fast food outlet that will be positioned as an international franchise through our creative approach to the company's image and detail presentation. Chick Queen will provide a combination of excellent food at value pricing, with fun packaging and atmosphere. Chick Queen is the answer to an increasing demand for snack-type fast food, to be consumed while window shopping and walking around shopping malls. In today's highly competitive environment, it is becoming increasingly difficult to differentiate one fast food outlet from another. Islamabad, a city state, is now becoming the model metropolis for Asia's new economic boom. Our main priority is to establish one outlet in a crowded mall, preferably in one of prominent shopping malls in Jinnah super market in Islamabad. Later, our effort will be a further development of more retail outlets in other cities of Pakistan. This plan is prepared to obtain a location for the initial launch of this concept. Additional financing will need to be secured for the two subsequent outlets, anticipated in first year. The financing, in addition to the capital contributions from shareholders, will allow Chick Queen to successfully open and expand through year five. Start-up funds will be utilized to pay for rent; leasehold improvements; supplies; advertising; administrative costs; inventory; and labor for the first six months. The initial capital investment will allow Chick Queen to provide its customers with a value-driven, entertaining experience through the creativity of its founders. Chick Queen will entice youngsters to bring their friends and family with our innovative environment, fresh-cut Belgian fries, and selection of unique signature dipping sauces. Our outlet also provides excellent and friendly customer service to support the ambience of fun, energetic and youthful lifestyle.

PROJECT REPORT PURPOSE OF PROJECT

CHICK QUEEN FAST FOOD RESTAURANT

The major purpose of this project is to develop skills and gain knowledge through learning and practice about various aspects of real working. The study enables me to get command on bookish knowledge through practical experience of industry and to understand the various trends in prevailing market and the law requirements. This thing increases the knowledge and brings better understanding of working within real organizational environment. Practical experience is the main thing that provides with hands-on, real-world experience in a work setting. As a student of Business Administration, it is a need of time to: Integrate and use knowledge and skills from the classroom, Discover where further competence is needed, Become better acquainted with the types of work settings in which such competence can be applied.

THEME OF PROJECT This document 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. This document gives an insight into various aspects of planning, setting up and operating a fast food restaurant, the legal requirements for starting up a public company under Companies Ordinance 1984. It also includes the business plan which calculates the cash flow required for success, along with a detailed financial plan for the venture. Start-up funds will be utilized to pay for rent; leasehold improvements; supplies; advertising; administrative costs; inventory; and labor for the first six months. 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. The food in these restaurants is often cooked in bulk in advance and kept warm, or reheated to order. Many fast-food restaurants are part of restaurant chains or franchise operations, and standardized foodstuffs are shipped to each restaurant from central locations. There are also simpler fast-food outlets, such as stands or kiosks, which may or may not provide shelter or chairs for customers. Because the capital requirements to start a fast-food restaurant are relatively small, particularly in areas with non-existent or medium income population, small individually-owned fast-food

PROJECT REPORT

CHICK QUEEN FAST FOOD RESTAURANT

restaurants have become common throughout Pakistan. Generally restaurants, where the customers sit down and have their food orders brought to them, are also considered fast food. OPPORTUNITY RATIONALE The Fast Food Restaurant Market is a growing industry in Pakistan relying heavily on the changing lifestyle patterns, population growth of the target age group and the related increase in employment of women. With today's hectic lifestyles, time-saving products are increasingly in demand the most obvious being the fast food. The rate of growth in consumer expenditures on fast food has led most other segments of the food-away-from home market for much of the last one decade. Demand for convenience has driven expenditures where people want quick and convenient meals; they do not want to spend a lot of time preparing meals, traveling to pick up meals, or waiting for meals in restaurants. As a result, consumers rely on fast food. Knowing this, fast food providers are coming up with new ways to market their products that save time for consumers. Consumers want to combine meal-time with time engaged in other activities, such as shopping, work, or travel, therefore allocating less time for food, hence the growing need for fast food. According to a recent public survey of people 15 - 45 years old, 80% of those interviewed like fast food. 90% of them like fast food on a regular basis, and 10% of them claimed that they like fast food "very much," or "love" fast food. The survey also provided the following particular reasons for the increasing popularity of fast food: People have 52 weekends and three long holidays a year. Most of people love to window shop, and when they do strolling around the shopping district, they need a quick bite to accommodate their activities. White-collar workers in offices have stopped bring lunch, and enjoy chicken, hamburger, pizza or other fast food joints in the vicinity. Parents give more money to kids and students to buy lunch. Fast food is naturally their first choice, because of the brand building effort that heavily targets their age group. Eating out still remains a common habit of life. They do not perceive fast food is a luxury, and they enjoy it by bringing their family, especially if they have smaller kids, in the environment of the western-style fast food outlets.

PROJECT REPORT

CHICK QUEEN FAST FOOD RESTAURANT

THE FAST FOOD INDUSTRY The fast-food industry is popular in Pakistan, the source of most of its innovation, and many major international chains are based there. 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. Multinational corporations such as these typically modify their menus to cater to local Pakistan tastes and most overseas outlets are owned by native franchisees to ensure that cultural, ethnic, and community values are taken care of. Additionally, multinational fast-food chains are not the only or even the primary source of fast food in most cities of Pakistan. Many regional and local chains have developed around the main cities of Pakistan (for example Khan Broast in Karachi) to compete with international chains and provide menu items that appeal to the unique regional tastes and habits at comparatively low costs. In Pakistan, multinational chains are considerably more expensive; they usually are frequented because they are considered chic and somewhat glamorous and because they usually are much cleaner than local eateries. 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. INCREASING NUMBER OF FAST FOOD OUTLETS The rapid rate at which the fast food industry continues to add outlets is as much a reflection of consumer demand for convenience as it is a reflection of demand for fast food itself. Expanding the number of outlets increases accessibility, thus making it more convenient for consumers to purchase fast food. Especially in recent years, much of the expansion has been in the form of "satellite" outlets. These tend to be smaller in size, with little or no seating capacity, and are often in nontraditional locations, such as office buildings, department stores, airports, and gasoline stations; locations chosen specifically to maximize convenience and consumer accessibility. CONSUMER APPEAL Fast-food outlets have become popular with consumers for several reasons. One is that through economies of scale in purchasing and producing food, these companies can deliver food to consumers at a very low cost. In addition, although some people dislike fast food for its predictability, it can be reassuring to a hungry person in a hurry or far from home. Multinational Fast food chains rapidly gained a reputation for their cleanliness, fast service and a child-friendly atmosphere where families on the road could grab a quick meal, or seek a break from the routine of home cooking. Prior to the rise of the fast food chain restaurant, people

PROJECT REPORT

CHICK QUEEN FAST FOOD RESTAURANT

generally had a choice between greasy-spoon diners (kiosk) where the quality of the food was often questionable and service lacking, or high end restaurants that were expensive and impractical for families with young children. Modern, stream-lined convenience of the fast food restaurant provides a new alternative and appealed to consumers' instinct for ideas and products associated with progress, technology and innovation. Fast food restaurants have rapidly become the eatery "everyone can agree on", with many featuring child-size menu combos, play areas and whimsical branding campaigns, designed to appeal to younger customers. Parents can have a few minutes of peace while children played or amused themselves with the toys included in the premsises. Many consumers see multinational fast food restaurants as symbols of the wealth, progress and well-ordered openness of Western society and therefore become trendy attractions in many cities around Pakistan, particularly among younger people with more varied tastes. INCREASING MARKET FOR FAST FOOD THE POPULATION BOOM Pakistan, currently ranked as 6th in terms of total population, is characterized by a high population growth rate of 1.9% (Pakistan Economic Survey 2005).With this, the per capita income has increased to US$ 736 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. THE FUTURE OF THE INDUSTRY The Pakistani economy is becoming increasingly service-oriented, and over the past several decades, the foodservice industries that offer the highest levels of convenience have been rewarded with strong sales growth. In the face of rising population, incomes and increasingly hectic work schedules, a nearly insatiable demand for convenience will continue to drive fast food sales. Fast Food Outlets will strive to find ways to make their products even more accessible. Even if incomes stagnate or attitudes change, consumers are unlikely to return to meal preparation at home on a large scale. This suggests that even if consumers choose to spend more time at home, for family or other reasons, much of the meal preparation will still occur elsewhere.

PROJECT REPORT

CHICK QUEEN FAST FOOD RESTAURANT

Many more table service restaurants, which traditionally focus on full-service in house dining, will likely try to capture part of this market by offering take-out, and possibly experimenting with home delivery. The value of consumer time, as well as the demand for consistent, high-quality food products, will continue to shape the fast food industry. Fast food, once considered a novelty, has become an increasingly significant part of the young generations diet. The role of convenience in this dietary shift cannot be over-emphasized, and the future growth of the rest of the foodservice industry will be driven in large part by its ability to find new ways to save consumers time. OPENING A SUCCESSFUL RESTAURANT: From burger stands to barbeque steakhouses more and more restaurants are popping up in cities every day. Since restaurants are such a common business venture, people must enjoy running them. Chick Queen is a fast-food concept that specializes in burgers, pizza, beef and Chicken with a menu that includes items such as Chips, Toasted Rolls and a variety of Sausages. Chick Queen fast food restaurant came in the market with the aim of providing quality service to its customers. With the rapidly growing trend of hygienic and low calories food, customers became very conscious about their eating habits. So catering with the new demands of customers Chick Queen selected the best menu for every type of customers with a blend of variety of foods. COMPANYS PROFILE Company name: Chick Queen fast food restaurant Place of incorporation: Islamabad, Pakistan Nature of Business: Fast Food Restaurant Type of Company: Public Limited Company Authorized capital: Rs. 5,000,000/- divided into 500,000 ordinary shares of Rs. 10 each Debt: Equity: 25% : 75% MAIN PRINCIPLES Chick Queen recipe for success is based on three main principles:
Service: The customer is always king at Chick Queen Speed: We put the fast into fast food Satisfaction: Great food at great prices

PROJECT REPORT

CHICK QUEEN FAST FOOD RESTAURANT

OBJECTIVES To establish as a successful local fast food outlets and gain a market share in wolrds fast food industry. To make Chick Queen a destination spot for mall-goers. To expand into a number of outlets by year three, and sell the franchise to neighboring countries.

MISSION Our main goal is to be one of the most successful fast food outlets worldwide, starting with one retail outlet located inside a major shopping mall as a "market tester." Chick Queen will strive to be a premier local fast food brand in the local marketplace. We want our customers to have the total experience when visiting our outlet(s) and website as they will learn about this fascinating new "pop culture." Our main focus will be serving high-quality food at a great value. KEYS TO SUCCESS To succeed in this business we must: Create a unique, innovative, entertaining menu that will differentiate us from the rest of the competition. Control costs at all times, in all areas and implement a conservative approach to growth policy. Although, we provide more than enough fund to open more than one outlet, we want to be on the safe side of the business. Sell the products that are of the highest quality, as well as keeping the customers happy with all of our product categories from food to store merchandising. Provide 100% satisfaction to our customers and maintaining the level of excellent services among other competitors. Encourage the two most important values in fast food business: brand and image, as these two ingredients are a couple of main drivers in marketing communications. Get access to high-traffic shopping malls near the target market. Promote good values of company culture and business philosophy.

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 public limited company in case of addition of new products that might add significant business to the existing setup.

PROJECT REPORT

CHICK QUEEN FAST FOOD RESTAURANT

LEGAL REQUIREMENTS The Pakistan Hotels and Restaurant Acts Act 1976 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. Application for registration and determination of fair rates shall be made to the controller in Form G together with a certificate of medical fitness in Form I from a registered medical officer of the civil hospital in respect of the staff of the restaurant. For registration of a restaurant, the owner of the restaurant is required to conform to the standard of health, hygiene and comfort which standards have been set out in Schedule II of the act. On receipt of application, the controller will carry out inspection of the aforementioned premises and once satisfied will initiate the registration process. Once registered the owner of the restaurant will apply to the controller for license as per the Act which needs to be renewed on a yearly basis for the prescribed fee. SECP REQUIREMENTS FOR SETTING UP THE BUSINESS Starting a new business in Pakistan has been made easier in modern times due to the use of technology. Most of the steps can be completed online. You will still need to visit local agencies to obtain necessary paperwork to start online registration and to complete the final steps of the process. PROMOTERS ROLE Following are the steps followed by the promoters of Chick Queen Co. Visited the Securities and Exchange Commission of Pakistan's (SECP) website to file company name online. It was made sure the name does not exist already by searching for our desired company name. Paid the name and registration fees on the SECP website through our bank account. Registered our company through the Registrar of Companies under the eServices section of the SECP website. For this, information from our company incorporation forms, national identity card, memorandum and articles of association was needed. Obtained digital signature and proof of registration. The digital signature and proof of registration will come through the SECP website from the National Institutional Facilitation Technologies (NIFT) two days after we registered our company (given that we followed all the registration guidelines properly on the SECP website and have the proper documents).

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PROJECT REPORT

CHICK QUEEN FAST FOOD RESTAURANT

Registered for income tax with our national tax number (NTN) on the SECP website. Applied for an NTN by providing proof of registration, our memorandum, articles of association and bank account number. NTN of directors and an attestation of our registered business address was also needed. Registered for sales tax. Once we had registered for income tax, we obtained a PIN code, a unique identifier number and a secure password by visiting the Federal Board of Revenue's website . Registered for the Pakistani Professional Tax with our local tax authority. Finded out where our local tax authority is located and then visited the office. There we met the District Excise & Taxation Officer to request to enroll our business as an "assessee." Register with the Employee Social Security Institution (ESSI). Visited the ESSI main office in Karachi to meet the registrar for new companies. Brought with us memorandum, articles of association and company incorporation documents. Registered for old age benefits with the Pakistani Employees Old-Age Benefits Institution (EOBI) and paid a registration fee.

DOCUMENTS NEEDED

Pakistani national identity card Pakistani memorandum and articles of association Pakistani bank account number National tax number (NTN) of each of your business directors Attestation of business address Registration forms

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PROJECT REPORT

CHICK QUEEN FAST FOOD RESTAURANT

After compliance of above mentioned steps, the promoter will prepare the following documents and submit with the Registrar of company. 1. Memorandum: It is regarded as the fundamental document which defines the objective of the company. It is signed by seven persons in case of public company. 2. Articles of Association: It is an important document which contains rules and regulations for internal management of company. It should be duly stamped and signed by the signatories of the memorandum of Association. A public limited company do not submit Articles of Association because it adopts Table-A of companies Act. Table A is simply the name given to the prescribed format for Articles of Association of a company limited by shares under the Companies Act 1985 and earlier legislation. The Articles set out the regulations by which the company will be managed. 3. The name and address of the registered office of the company. 4. A statement of nominal capital of the company, when it exceeds Rs. 5 lac, a certificate from the central government permitting such issue is submitted. 5. A list of proposed directors, their names and addresses and occupations. 6. The contract with managing director, secretaries and the treasurers. 7. A statutory declaration by an advocate with regard to compliance of legal requirements of company Act. The above document with necessary fees, stamp duty and registration fee is submitted with the registrar. If the registrar is satisfied, he may issue one certificate called certificate of companies can start their business. However, public limited company can start their business after issuing of prospectus or statement in lieu of prospectus. On receipt of prospectus, another certificate called certificate of commencement is issued.

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PROJECT REPORT

CHICK QUEEN FAST FOOD RESTAURANT

THE COMPANIES ORDINANCE, 1984 (COMPANY LIMITED BY SHARES) Memorandum of Association Of CHICK QUEEN FAST FOOD (PUBLIC) LIMITED

I. II. III.

The name of the Company is Chick Queen fast food (public) Limited. The Registered Office of the Company will be situated in Islamabad. The objects for which the Company is established are all or any of the following:

1. To carry on the business of buyers, sellers, traders, importers, exporters, manufacturers, processors, commission agents, distributors, dealers and representatives in any legal form for all kinds of food and beverages including but not limited to fruits, vegetables, confectionery, infant nutrition, clinical nutrition, performance nutrition, cereals, coffee, tea, wheat, flour, food grains, pulses, cereals, rice, spices, sugar, sugar products, vegetable ghee, edible oil, cooking oil, mineral oil, cocoa based and other food products. 2. To acquire, process, package, sell, import, export, preserve, deep freeze and otherwise deal in aerated, mineral and artificial waters and all kinds of beverages, non alcoholic drinks, syrups, juices, soft drinks, squashes, jams, murabbas, milk and all types of dairy products, ice cream, meat, live cattle and sheep, fish, prawns, shrimps, poultry, eggs and in all branches of such respective trades or business.

3. To establish an industrial unit for manufacturing of food and beverages and to do all such things as are incidental or conducive to the attainment of the object of the establishment and operation of such industrial unit. 4. To carry on the business of milling of grains by taking on lease, hiring, purchasing, erecting, or otherwise acquiring rice mills, husking mills, grinding mills, cleaning, grading, polishing of all kinds of pulses, rice, spices, and other food grains and cereals in any or all its branches as would be required for effective discharge of these objects.

5.

And for the purposes of achieving the above objects, the company is authorized:(1) To transact such other business as may be proper, necessary and desirable for or in connection with the objects of the Company or any of them.

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PROJECT REPORT (2)

CHICK QUEEN FAST FOOD RESTAURANT

To set up, erect, construct, purchase, take on lease, import, buy, install, run, operate and administer plants, machineries, other equipments and factories and to carry on all such functions and business as are necessary and incidental to meet the objectives of the Company and to dispose off such plants, machineries and spare parts which have become obsolete or worn out. To manufacture, import, export, store, process, purchase and sell raw materials, equipments, machineries, other equipments, spare parts or other articles of use required for or incidental to the manufacture, preparation, adaptation, treatment, use or working of the foregoing or the packing, storing or otherwise for the purpose of carrying on the business of the Company.

(3)

(4)

To acquire and undertake the whole or any part of the business, property and liabilities of any person or company carrying on any business which the Company is authorized to carry on, or possessed of property suitable for the purposes of the Company.

(5)

To establish laboratories and research and development centres to perform such research and development as the Company may deem advisable or feasible.

(6)

To train personnel and workers, both in Pakistan and abroad, to obtain technical proficiency in various specialties connected with the objects of the company or any of them.

(7)

To apply for, purchase or otherwise acquire any patents, invention, licences, concessions, and the like, conferring any exclusive or non-exclusive or limited right to use, or any secret or other information as to any invention which may seem capable of being used for any of the purposes of the Company or the acquisition of which may seem calculated directly or indirectly to benefit the Company, and to use, exercise, develop, or grant licences in respect of, or otherwise turn to account the property, rights or information so acquired.

(8)

To enter into partnership or into any arrangement for sharing profits, union of interest, co-operation, joint venture or reciprocal concession, with any person or company, local or foreign, carrying on or engaged in any business or transaction which this Company is authorized to carry on or be engaged in, or otherwise

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PROJECT REPORT

CHICK QUEEN FAST FOOD RESTAURANT

assist any such person or company, and to take or otherwise acquire shares and securities of any such company, and to sell, hold, re-issue with or without guarantee, or otherwise deal with the same, except doing business as an investment company.

(9)

To take, or otherwise acquire, and hold shares in any other company, having objects altogether or in part similar to those of this Company, or carrying on any business capable of being conducted so as directly or indirectly to benefit this Company, but not to act as an investment company.

(10)

To enter into arrangement with any Government or authorities, supreme, national, municipal, local, railway, or otherwise, public or quasi-public bodies, or with any other persons, in any place where the Company may have interest that may seem conducive to the objects of the Company or any of them and to obtain from any such Government, authorities or persons any rights, privileges and concessions which the Company may think fit to obtain, and to carry out, exercise and comply with any such arrangements, rights, privileges and concessions.

(11)

To establish and support or aid in the establishment and support of associations, institutions, funds, and conveniences calculated to benefit employees of the Company or the dependants or connections of such persons, and to grant pensions and allowances, and to make payments towards their insurance.

(12)

To amalgamate with any other company whose objects are and/or include objects similar to those of this Company, whether by sale or purchase (for fully or partly paid-up shares or otherwise) of the undertakings, subject to the liabilities of this or any such other company as aforesaid, with or without winding up or by sale or purchase (for fully or partly paid-up shares or otherwise) of all or a controlling interest in the shares or stock of this or any such other company as aforesaid, or by partnership, or any arrangement of the nature of partnership, or in any other manner.

(13)

To sell or dispose of the undertaking of the Company or any part thereof for such consideration as the Company may think fit and, in particular, for shares, debentures or securities of any other company having objects altogether or in part similar to those of this Company.

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PROJECT REPORT (14)

CHICK QUEEN FAST FOOD RESTAURANT

To purchase, take on lease or in exchange, hire or otherwise acquire, any movable or immovable property, and any rights or privileges which the Company may think necessary or convenient for the purpose of its business and, in particular, any land, buildings, easement, machinery, plant and stock-in-trade.

(15)

To construct, maintain and alter any buildings or works, necessary or convenient for the purposes of the Company.

(16)

To construct, improve, maintain, develop, work, manage, carry out, or control any manufactories, warehouses, shops, stores, and other works and conveniences which may seem calculated directly or indirectly to advance the Companys interests.

(17)

To sell, improve, manage, develop, exchange, lease, mortgage, enfranchise, dispose of, turn to account, or otherwise deal with, all or any parts of the property and rights of the Company.

(18)

To invest and deal with the money of the Company, not immediately required, in such manner as may from time to time be determined, but not to act as an investment, finance, or banking company.

(19)

To advance money to such persons or companies and on such terms as may seem expedient and, in particular, to customers and others having dealings with the Company, but not to act as an investment, finance, or banking Company.

(20)

To borrow or raise funds by means of loans or secure the payment of money from shareholders, directors, commercial banks and government approved agencies in such manner as the Company shall think fit for its manufacturing, trading and allied business and, in particular, by the issue of debentures or debenture-stock, perpetual or otherwise, charged upon all or any of the Companys property and other assets, both present and future, including its uncalled capital, and to purchase, redeem, or pay any such securities, but not to act as an investment, finance, or banking company.

(21)

To guarantee the performance of contracts, agreements, obligations or discharge of any debt of the company or on behalf of any company or person in relation to

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PROJECT REPORT

CHICK QUEEN FAST FOOD RESTAURANT

the payment of any financial facility including but not limited to loan, advance, letter of credit or other obligations through creation of all types of mortgages, charges, pledges, hypothecation, on execution of the usual banking documents/instruments or otherwise encumbrance on any or all of the movable and immovable properties of the company, either present or future or both and issuance of any other securities or sureties by any other means in favour of banks, Non-Banking Finance Companies or any financial institutions and to borrow money for purposes of the company on such terms and conditions as may be considered proper.

(22)

To open, close and operate banking accounts of the Company with any banker.

(23)

To draw, make, accept, endorse, discount, execute and issue promissory notes, bills of exchange, bills of lading, warrants, debentures and other negotiable or transferable instruments, but not to act as an investment or banking company.

(24)

To adopt such means of making known the products of the Company as may seem expedient, including, in particular, by advertisement in the press, circulars, purchase and exhibition of works of art or interests, publication of books and periodicals, and grant of prizes, rewards and donations.

(25)

To subscribe or contribute or otherwise to assist or to guarantee money to charitable, benevolent, religious, scientific, technical, national, public, or any other institutions, for its objects or purposes or for any exhibition.

(26)

To apply for and obtain any provisional order or Act of legislature or any consents, permissions and licenses from the Government, central or provincial, and any agencies of the Government for enabling the Company to carry on any of its objects into effect, or for effecting any modification of the Companys constitution, or for any other purpose which may seem expedient, and to oppose any proceeding or application which may seem calculated, directly or indirectly, to prejudice the Companys interests.

(27)

To sell any patent rights or privileges belonging to the Company or which may be acquired by it, or any interest in the same, and to grant licenses for the use and practice of the same or any of them and to let or allow to be used or otherwise deal with any inventions, patents or privileges in which the Company may be

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interested, and to do all such acts and things as may be deemed expedient for turning to account any inventions, patents and privileges in which the Company may be interested.

(28)

To extend money on experimenting upon and testing and improving or securing any process or processes patent, or protecting any invention or inventions which the Company may acquire or propose to acquire or deal with.

(29)

To distribute among the members of the Company, in kind or otherwise, any property of the Company and, in particular, any shares, debentures or securities of other companies belonging to this Company, or of which this Company may have the power of disposing.

(30)

To create any reserve fund, sinking fund, insurance fund or any other special fund, whether for depreciation or for repairing, insuring, improving, extending or maintaining any of the property of the Company or for any other purpose conducive to the interests of the Company.

6. Notwithstanding any thing stated in any object clause the company shall obtain such other approval or license from competent authority as may be required under any law for the time being in force to undertake a particular business. 7. It is decaled that notwithstanding anything contained in the foregoing object clauses of this Memorandum of Association nothing contained therein shall be construed as empowering the Company to undertake or to indulge in business of banking company, leasing, and investment, managing agency or insurance business directly or indirectly as restricted under the law or any unlawful operation. IV. V. The liability of the members is limited. The Authorized Share Capital of the Company is Rs. 5,000,000/- divided into 500,000 ordinary shares of Rs. 10 each with the rights, privileges and conditions attached thereto, with power to increase and reduce the capital of the Company and to divide the shares in the capital for the time being into several classes and attach thereto respectively, subject to the provisions of the Ordinance, such preferential, deferred, qualified, or special rights, privileges or conditions and to vary, modify or abrogate any such rights, privileges, or conditions in such manner as may for the time being be provided by the regulations of the Company.

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CHICK QUEEN FAST FOOD RESTAURANT PROJECT REPORT We, the several persons whose names and addresses are subscribed, are desirous of being formed into a company, in pursuance of this memorandum of association, and we respectively agree to take the number of shares in the capital of the company set opposite our respective names.
S . N o . Name and Surname (present & former) in full Block Letters) (in NIC No. Fathers/ Husbands Name in full Nationality(ies ) with any Occupati on Residentia l address Number shares by subscriber of taken each
Sign ature s

(in case of foreigner, Passport No.)

former Nationality

in full

AB

123541456877-1

Gh

Pakistani

Trading business

Street ---, No. Sadaf colony, Islamabad ----,

100

------

CD

258141456879-2

IJ

Pakistani

Import and export of sports goods

Street ----, No.-----, Pak Nagar, Akram Road, Lahore

300

------

EF

625841548795-3

KL

Pakistani

Advocate

Street-----, No. -----,

500

------

Queens Road, Karachi.

GH

354782549053-7

MN

Pakistani

manufact urer

Street ---, No. ----,

50

------

Peoples

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colony, Islamabad

IJ

409215789034-1

OP

Pakistani

Mill owner

Street ----, No.-----, , Liaqat abad Road, Lahore

1000

--------

KL

176329054723-9

QR

Pakistani

bottique

Street----,No. -----, ghori Road, Karachi

700

------

MN

238157216759-4

ST

Pakistani

Street ---, No. ----,

200

------

lallazar colony, Islamabad

Total number of shares taken: Dated: the 11th day of January 2010 Witness to above signatures. ______________ Signatures Full Name, _________ NIC Number,_________ Fathers/Husbands Name ________ Full Address_______________ Occupation____________________

2850

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PROJECT REPORT

CHICK QUEEN FAST FOOD RESTAURANT

THE COMPANIES ORDINANCE, 1984 (Public Company Limited by Shares) ARTICLES OF ASSOCIATION OF CHICK QUEEN FAST FOOD (PUBLIC) LIMITED 1. The Regulations contained in Table A to the First Schedule to the Companies Ordinance, 1984 (the Ordinance) shall be the regulations of Chick Queen fast food company (the Company) so far as these are applicable to a public limited company. PUBLIC LIMITED COMPANY 2. The Company is a Public Company within the meaning of Section 2(1)(28) of the Ordinance and accordingly: (1) (2) An invitation shall be made to the public to subscribe for the shares or debentures of the Company. The number of the members of the Company (exclusive of persons in the employment of the Company), shall not be limited to any number, two or more persons hold one or more shares in the company jointly, they shall be treated as single member; and The right to transfer shares of the Company is not restricted in the manner and to the extent herein appearing. Company will enjoy 30 years of its business. In case members are willing to continue the business ,however, it is supposed to carry on its business for the indefinite period of time. TRANSFER OF SHARES 3. A member desirous to transfer any of his shares shall first offer such shares for sale or gift to the existing members and in case of their refusal to accept the offer, such shares may be transferred to any other person, as proposed by the transferor member, with the approval of the Board of Directors.

(3)

(4)

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DIRECTORS

4. The number of directors shall not be less than seven or a higher number as fixed under the provisions of Section 178 of the Ordinance. The following persons shall be the first directors of the Company and shall hold the office upto the date of First Annual General Meeting: 1. 2. 3. 4. 5. 6. 7. .. .. ............... 2850

Total number of shares taken by the share holders: Dated: the 11th day of January 2010 Witness to above signatures. ______________ Signatures: Full Name, _________ NIC Number,_________ Fathers/Husbands Name ________ Full Address_______________ Occupation____________________

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PROPOSED PRODUCT MIX The proposed project is assumed to provide customers with a variety of fast food items as outlined in the following menu: Broast Chicken Broast (Qtr.) Chicken Broast (Half) Chicken Broast (Full) Burgers Price Chicken Burger Chicken Cheese Burger Beef Burger Beef Cheese Burger Zinger Burger Sandwiches Chicken Sandwich Egg Sandwich Beef Sandwich Club Sandwich Price 65 125 250 Chinese Price Hot & Sour Soup (2 Servings) 75 Hot & Sour Soup (4 Servings) 140 Chicken Corn Soup (2 Servings) 75 Chicken Corn Soup (4 Servings) 140 Plain Rice 40 Chicken Fried Rice 80 Vegetable Fried Rice 60 Egg Fried Rice 70 Beef Fried Rice 80 Beef Chilli (w/o rice) 75 Chicken Chilli (w/o rice) 85 Price French Fries (per plate) 25 Cole Slaw 15 Soft Drinks (Large) 80 Soft Drinks (Regular) 20

80 75 90 75 190 Price 55 40 45 80

Based on the above, our restaurant also offers low cost combo meals to its customers for increased value. Following are the proposed combo deals that can be further modified to meet increasing demand: Combos Items Price Combo Deal 1 Zinger Burger / French Fries / Regular Drink 105 Combo Deal 2 Chicken Broast (Qtr.) / French Fries / Regular Drink 90 Combo Deal 3 Chicken Burger, Broast (Qtr.), French Fries, Regular Drink 135 Combo Deal 4 Club Sandwich / French Fries / Regular Drink 105 Family Deal 1 Family Deal 2 Full Broast / Zinger Burger / Club Sandwich / French Fries (4) / Large Drink Zinger Burger (2) / Club Sandwich (2) / Broast (Half) / Large Drink / Fries (2)

535 515

Jumbo Deal 5% discount on purchase above Rs. 1,000/It desirable to have a vast variety of food items to capture a larger target audience. Once the restaurant achieves a steady sales pattern further food items like Barbeque will be added and similarly for desserts ice cream would be the best potential.

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CHICK QUEEN FAST FOOD RESTAURANT

PROJECT INVESTMENT Item Cost Dining & Office Furniture Advance Rent Construction Cost (all inclusive) Equipment & Machinery Preliminary Expenses Total (Rs.) 542,250 1,200,000 1,307,000 967,000 50,000 5,102,250

HUMAN RESOURCE REQUIREMENT

Our initial employees will include one manager, two cooks and two bus boys per location, with one of each on the premises during open hours. This is considered an ideal personnel number for a food outlet the size of our own. Each employee will work for 38-40 hours per week. In the long run, as we expand our product category and retail outlets, we will employ more people in the middle management to ensure the focus of our work, including site managers.The human resource requirement for the general and management staff are as follows:
Designation / Type Number Monthly Salary (Rs.) 25,000 10,000 12,000 4,000 6,000 10,000 67,000 Total Salary (Rs.) 300,000 120,000 144,000 48,000 72,000 120,000 804,000

Manager Cook Server Busboy Dishwasher, cleaner Guard TOTAL

01 02 01 02 01 01 08

COMPANY LOCATIONS AND FACILITIES Chick Queen locations will range in size from 50 70 meter square and will seat from 15 25 guests. We equiped the outlet with modern furniture and aim for cleanliness and an open feeling. The space selection is based upon the following criteria:

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Community size: minimum of 800,000 people within a radius of 8 kilometers. Tourist destination. Easy access. Large percentage of teenagers in the community.

All of these qualities are consistent with goal of Chick Queens providing a top quality fast food experience. We want "word-of-mouth" to be our best form of marketing, where our customers value our brand as something exciting and cannot wait to tell their friends and neighbours. MARKET SEGMENTATION The customers in the restaurant industry in Islamabad can be classified into following segments: Exotic: This segment consists of top executives and business people who can afford to spend Rs. 1000/- or more per meal. They eat in small groups, mostly to entertain peers from social networks, and clients. Excellent quality and taste in an exquisite environment is required. Personalized service is important for this segment. Executives & professionals: This segment includes top and senior executives and business people who spend Rs. 500/- to Rs. 800/- per meal. They eat in groups, socializing with peers from professional networks. The variety in menu offered, taste, environment and the service level is important to this segment. Quick and convenient: This segment represents the population that spends Rs. 300/- to Rs. 500/- per meal. They have quick working-lunches in groups. They prefer quick served meals at affordable quality and taste. The environment, freshness of food and the service level is important to them too. Bargainers: This segment consists of a population that affords to spend Rs.100/- to Rs. 200/- per meal. They are price conscious consumers who are less keen on service quality and environment. This group may also include students, office workers and white collar professional. Local taste and local food-meal is of primary importance to this segment.

TARGET MARKET We are targeting youngsters as our primary market. It is the place to meet and hang out with friends. Due to heavy extra-curricular activities among Pakistani's youth, it is common for them to have lunch inside shopping malls, and not at home. They tend to flock to fast food joints at shopping malls across Jinnah Super Market.

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Our secondary market segment is the "Working people." With so many shopping malls in the vicinity, Jinnah Super is the heaven for shoppers and job seekers alike. In the market Centre, there are more than 8,000 workers currently working as sales persons and boutique staff. Lastly, it is also the destination for tourists staying in the area. Tourists will stroll this Road, hunting for the latest trend in fashion and have no time to stop for a full meal during shopping. Chick Queen is the alternative for a quick bite while shopping the fancy boutiques in the area.

MARKETING STRATEGY Our strategy is based on serving our markets well. We will start our first outlet as a "market tester" that could become a model of the expanding number of outlets in the future. Concentration will be on maintaining quality and establishing a strong identity in the local market. A combination of local media and local store marketing programs will be utilized at each location. Local store marketing is most effective, followed by print ad. As soon as a concentration of stores is established in a market, then broader media will be explored. We believe, however, that the best form of advertising is still "buzz." By providing a fun and energetic environment, with unbeatable quality at an acceptable price in a clean and friendly outlet, we will be the talk of the town. Therefore, the execution of our concept is the most critical element of our plan. We will actively build our brand, through the selling of supporting materials, such as merchandise, promotional items and other marketing gimmicks similar to those of other fast food franchises. MARKETING PROGRAMS We will deploy different marketing tactics to increase customer awareness of Chick Queen. Our most important tactic will be "word-of-mouth". This will be by far the cheapest and most effective of our marketing programs because of the high traffic in targeted shopping locations. The second marketing effort will be utilizing local media. Although, this will be the most costly, this tactic will be used sparingly as a supplement where necessary. Other promotional tactics used are:

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PROJECT REPORT
o o o o o

CHICK QUEEN FAST FOOD RESTAURANT

Wall posters. Direct mail piece containing brochures sent to surrounding addresses. Web page containing company philosophy, history and news. Local magazines that target our core customers, such as Free! Magazine. Newspaper campaign placing several large ads throughout the month to explain our concept to the local area.

POSITIONING STATEMENT Our main focus in marketing will be to increase customer awareness in the surrounding community. We will direct all of our tactics and programs toward the goal of explaining who we are and what we are all about. We will price our products fairly, keep our standards high, and execute the concept so that word-of-mouth will be our main marketing force. STRATEGY AND IMPLEMENTATION SUMMARY At first, we will open one outlet in Jinnah super Market. This will become our "market testing area," and as we go further, Chick Queen is planning to open another in nearby shopping malls. In attracting customers to try our restaurant, we will provide a see-through kitchen, so that people will see how we are committed to freshness in our products. The kitchen will also let out an aroma of our freshly fried foods into the surroundings area, so that people will come and try our products.

STRATEGIC ALLIANCES Our business requires a long relationship with raw suppliers as well as partner vendors. We have a long and good standing relationship with local beef and vegetables suppliers. For chicken, KNN is the best option. Contracts are made with local bakeries and flour mills. COMPETITORS Hardees Islamabad: At Street 20, F7-2 Markaz, Specialized in Breakfast, Burgers, Chicken Products, Desserts & Beverages. McDonalds: Located at Fatima Jinnah Park F-9, Specialized in Burgers, Sandwiches, Chicken & Beef products, Desserts & Drinks Subway Islamabad: Blue Area, Jinnah Avenue, Islamabad. Best for Breakfast, sandwiches & Drinks.

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Kentucky Fried Chicken (KFC): Building, F-6/2, Super Market, Specialized in Burgers, Nuggets, Rice, Chicken meals & Drinks Pizza Party: 11, Street 41, F-6/1, Huge Verity of pizzas and Beverages Cock n Bull Islamabad: F-7, Markaz, Jinnah Super. Best and inexpensive Fast food corner offering huge verity of burgers, shakes, drinks, steaks and much more. Italian Pizza Islamabad: Shop No, 09-A, Block 12-E, First Floor, F-7 Markaz. Huge Verity of Italian food including Pizzas, burgers, snacks & Bevrages

PRICING STRATEGY Our pricing strategy is positioned as market penetration strategy. By keeping our prices low as compared to our competitors with a promise of providing high quality service, we will be able to penetrate in the market very successfully. REVENUE & COST PROJECTIONS The Sales are expected to increase by 15% every year while the cost of raw materials is assumed to increase by 10%. The 15% annual increase in revenue is expected to result from a part increase in population increase and part increase in product price. The prices used to calculate the gross revenue earned are based on the billing rate at which the entrepreneur will charge the customer. The prices are also inclusive of the General Sales Tax. Furthermore it is assumed that the following sales breakup will form the revenue streams for the fast food outlet: Revenue Stream Dine in Take away Home delivery Total revenue % of Total Sales 20% 60% 20% 100%

The minimum delivery order size is assumed to be Rs. 250/- per order with 3 delivery riders being employed at the charge out rate of Rs. 25 per delivery order wherein no transportation fuel is provided by the fast food outlet. For Take Away and Home Delivery another 1% of sales added cost due to packing is assumed.
ACCOUNT RECEIVABLES

All sales will be made strictly on cash basis. It is not advisable to operate a fast food restaurant on credit basis.

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MISCELLANEOUS OUTLET EXPENSES

A monthly figure of Rs. 6,000 (200 per day) is assumed to be incurred for miscellaneous expenses which are expected to increase at the rate of 10% per annum for the projected period. DEBT: EQUITY 75% : 25% WINDING UP As regards the company itself winding up does not mean that the company has ceased to exist. The company exists as a corporate entity with all the rights of such entity, with only change that its management and administration is to be carried on through liquidator / liquidators till the final dissolution of the company. VOLUNTARY WINDING UP OF MEMBERS OF THE COMPANY A company can be wound up voluntary: (a) on expiration of the period fixed for the duration of the company by its Articles of Association or on occurrence of event leading to dissolution of the company as provided in the Memorandum and Articles of Association and company has to pass a special resolution in general meeting for its wound up voluntarily within five weeks of filing of declaration of solvency, and (b) on passing of the special resolution that the company be wound up voluntarily. A voluntary winding up is deemed to commence at the time of passing of the resolution for voluntary winding up. The company ceases to carry out business just on commencement of winding up. However, it can carry on its activities and business for beneficial winding up of the company. PROCEDURE FOR VOLUNTARY WINDING UP The following steps are to be taken for Members voluntary winding up under the Provisions of the Ordinance, and the Companies Rules. Step 1: Where it is proposed to wind up a company voluntarily, its directors make a declaration of solvency on Form 107 prescribed under Rule 269 of the Rules duly supported by an auditors report and make a decision in their meeting that the proposal to this effect may be submitted to the shareholders. They, then, call a general meeting (Annual or Extra Ordinary) of the members (Section 362 of the Ordinance)

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Step 2: The company, on the recommendations of directors, decides that the company be wound up voluntarily and passes a Special Resolution, in general meeting (Annual or Extra Ordinary) appoints a liquidator and fixes his remuneration. On the appointment of liquidator, the Board of directors ceases to exist. (Sections 358 and 364 of the Ordinance) Step 3: Notice of resolution shall be notified in official Gazette within 10 days and also published in the newspapers simultaneously. A copy of it is to be filed with registrar also. (Section 361 of the Ordinance) Step 4: Notice of appointment or change of liquidator is to be given to registrar by the company along with his consent within 10 days of the event.(Section 366 of the Ordinance) Step 5: Every liquidator shall, within fourteen days of his appointment, publish in the official Gazette, and deliver to the registrar for registration, a notice of his appointment under section 389 of the Ordinance on Form 110 prescribed under Rule 271 of the Rules. Step 6: If liquidator feels that full claims of the creditors cannot be met, he must call a meeting of creditors and place before them a statement of assets and liabilities. (Section 368 of the Ordinance) Step 7: A return of convening the creditors meeting together with the notice of meeting etc. shall be filed by the liquidator with the registrar, within 10 days of the date of meeting. (Section 368 of the Ordinance) Step 8: If the winding up continues beyond one year, the liquidator should summon a general meeting at the end of each year and make an application to the Court seeking extension of time. (Section 387(5) of the Ordinance) Step 9: A return of convening of each general meeting together with a copy of the notice, accounts statement and minutes of meeting should be filed with the registrar within 10 days of the date of meeting. (Section 369 of the Ordinance) Step 10: As soon as affairs of the company are fully wound up, the liquidator shall make a report and account of winding up, call a final meeting of members, notice of convening of final meeting on Form 111 prescribed under Rule 279 of the Rules before which the report / accounts shall be placed. (Section 370 of the Ordinance)

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Step 11: A notice of such meeting shall be published in the Gazette and newspapers at least10 days before the date of meeting. (Section 370 of the Ordinance). Step 12: Within a week after the meeting, the liquidator shall send to the registrar a copy of the report and accounts on Form 112 prescribed under Rule 279 of the Rules. (Section 370 of the Ordinance)

DOCUMENTS REQUIRED FOR VOLUNTARILY WINDING UP BY MEMBERS Special Resolution on Form-26 (prescribed under the Companies(General Provisions and Forms) Rules, 1985 for voluntary winding up. Declaration of Solvency on Form 107 under the Rules. Affidavit by Directors of the company including Chief Executive verifying the attached auditors report, profit and loss account, balance sheet, statement of assets and liabilities prepared from the date of closing of last accounts till the latest practicable date, immediately before the making of declaration. Consent of liquidator. A copy of Notice of resolution passed for winding up the company voluntarily and published in the Official Gazette. A copy of Notice for appointment of liquidator and published in the Official Gazette. A copy of Preliminary report prepared by the liquidator. Final report and accounts of the company prepared by liquidator presented in General meeting of shareholders after finalization of winding up.. Notice of final meeting. Return containing final report and accounts alongwith minutes ofmeeting to be filed with the concerned Company Registration Office.

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REFERENCES
http://www.bplans.com/fast_food_restaurant_business_plan/executive_summary_fc.php http://www.morebusiness.com/fast-food-restaurant-business-plan http://www.slideshare.net/babarzm/business-plan-of-fast-food-restaurant http://www.entrepreneur.com/article/73384 http://fastfoodmarketing.org/media/FastFoodFACTS_Report_Introduction.pdf http://www.ehow.com/how_5485804_start-new-business-pakistan.html http://www.publishyourarticles.org/eng/articles/how-to-incorporate-a-private-limitedcompany-in-india.html http://www.companieshouse.gov.uk/about/tableA/index.shtml http://www.bigals.co.za/downloads/prospectivefranchisee/Prospectus.pdf http://www.groupin.pk/blog/fast-food-restaurants-in-islamabad-scrumptious-burgersfries-and-drinks-at-perfect-rates/ http://www.secp.gov.pk/SECGuideSeries/pdf/Guide_WindingUp.pdf

If you want to be creative in your company,your career, your life,

all it takes is one easy step the extra one

When you encounter a familiar plan,

you just ask one question:

What ELSE could we do?

- Dale Dauten

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