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BUSINESS PLAN OF A PIZZA SHOP

Name of the business
Pizza Inn

Address
Commercial market, C block, street #2 opposite main mosque, NFC Society. Phone: 042 37555558 Name of the Entrepreneur: Dania Sarwar Mobile number: 0321 9889439 E Mail id: angel.shah98@yahoo.com Website of business: www.pi.com.pk Business plan for the period: July 2013 Expected opening date: September 2013

BUSINESS OVERVIEW
(Executive Summary) Pizza Inn is a new business venture that will be located in the central market of NFC Society. It is supposed to start its operations in September 2013. We will have the budget of 10, 00,000 for starting this new venture and carrying out our operations. We will be offering different types of pizza with different sauces as per demand, garlic bread, lazania, snacks, salads, and drinks. We plan to provide our products at competitive low prices and build strong customer base. Pizza Inn is providing free home delivery service to its customers, as well as take away service will also be available. There is no other restaurant in the area that is providing such services to customers. Residents of the area have to go to wapda town market to fulfill their desire. The target market of pizza inn comprises of students, old age people, families, couples, young children as we are planning to offer meal package accompanied with a toy for children. We will try to provide a friendly, comfortable atmosphere to our customers with a high quality of products and services so that pizza inn could become their first choice. Soft music will be played in the restaurant for amusement of our customers. The area of NFC is consisting of highly educated people who are assumed to focus on environment and quality of service. Our venture will be fulfilling all their requirements at its best. The PIZZA INN is a sole proprietorship venture managed and owned by Dania Sarwar.

MISSION STATEMENT
The mission of PIZZA INN is to provide the best possible value to customers who desire great tasting pizza and to provide customers with the satisfaction of receiving a great value, both tangibly and intangibly.

VISION STATEMEN
The vision of PIZZA INN is to be recognized around the world and maintain a profitable operation that will continue our tradition of Quality Family dining, at a reasonable cost, in a comfortable atmosphere, with exceptional services.

KEYS TO SUCCESS
The keys to success in this business are: Delivering the customer value proposition. Marketing: promoting a new company, product, and delivery channels to a rural community. Product quality and consistency. Pricing effectively with respect to the project quality and customer value proposition. Family-oriented atmosphere with occasional nights of family entertainment. Management: products delivered on time, costs controlled, marketing budgets managed. There is a temptation to fixate on growth at the expense of profits. Reporting and controls in place for inventory and financials.

OBJECTIVES
Our goal is to reach 85% recognition of the new product in our target market. As with all businesses, the most important goal of a company is to increase revenue and profits. Customer satisfaction is for most. Practice what we preach: integrity, ethics and open communication We will be PEARLS PASSION for excellence in doing everything. EXECUTE with positive energy and need. ACCOUNTABLE for growth in customer satisfaction. RECOGNIZE the achievement of others and have fun doing it. LISTEN and more importantly, respond to the voice of the customer.

OWNERSHIP
PIZZA INN is a sole proprietorship venture that is owned and managed by Dania Sarwar. She has done MBA from Hailey College of Banking n Finance and will apply her all management learnings in making this venture successful.

LOCATION
Pizza inn will be located in central market of NFC society near Wapda town. This market catches residents of Valencia town as well. I do not need to buy a building for my restaurant as I already own the one, but proper renovation is required. Our operations will be carried out in area of 800sq.yards. Ample space for parking is available.

PRODUCTS
Description:
Appetizers

Garlic bread Garlic bread Supreme Chicken wings Garlic mushrooms Salad

Beverages Coca-Cola Sprite Fanta Mineral water Diet coke Diet 7 up

Pan Pizza Cheese lovers (Melted layer of hundred percent cheeses) VEGGIE LOVERS (Tomatoes, onion mushrooms, black olives & green pepper) CHICKEN TIKKA (Chicken tikka, cubes &onions) CHICKEN FAJITA (Marinated chicken) FAJITA SICILIAN (Fajita chicken, onions, green peppers, green chilly & lots of cheese) THE EURO (Mushrooms, smoked chicken, tomatoes and olives) HOT AND SPICY (Green chilies, onions and tomatoes) Supremes SUPREME (Beef pepperoni, bologna, beef, onions, green peppers and mushrooms). CHICKEN SUPREME (Chicken sausage, spicy chicken, chicken fajita, smoked chicken, onions, green peppers, olives and mushrooms). SUPER SUPREME (Beef pepperoni, smoked chicken, bologna, beef, onions, green peppers, olives and mushrooms with double the toppings).

MARKETING ANALYSIS
Marketing summary:
PIZZA INN possesses sound information about the market and knows a good deal about the common attributes of target market which largely constitutes teenagers, families, old age retired people population. We will leverage this information to better understand who is served, their specific needs, and how PIZZA INN can better communicate with them.

Market demographics:
The profile for PIZZA INN customer consists of the following geographic, demographic, and behavior factors:

Geographic:
Our geographic target is NFC society and Valencia town Lahore.

Demographics:
Both male and female with average age of 15 60 years, we are actually targeting the teenagers as well as their parents.

Behavior Factors:
Enjoy a high quality meal with considerable concerns regarding food hygiene and subsequent health concerns. There is value attributed to the appearance or presentation of food.

Market needs analysis:

Trendy and popular food is the need of our target market. PIZZA INN is providing its customers with high-quality unique trendy recipe with pleasing presentation. Pizza Inn seeks to fulfill the following benefits that are important to the customers:

Selection:
Variously priced deals as well as individual items are available for the customers to select from. It ranges from appetizers to meal.

Accessibility:
Pizza Inn is located at such a place where people can have access even on walk. The market we selected is in the centre of the society and customers can easily access it at any time according to their mood and will.

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Customer Service:
Our service is likely to impress the customers will with the level of attention that they will receive and the comfortablity in the environment will persuade them to become loyal customer. Our main focus will be on the quality and comfort level of the customers.

Competitive Pricing:
Our mission is to provide product at low and affordable prices and build strong customer base.

Market trends:
There is a trend of sophisticated customer prevailing in the market. The customer today has become more sophisticated in a number of different ways.

Food Quality:
High-quality and hygienic food is preferred and customers will start to appreciate the differences in quality.

Presentation:
Customers seek a sense of presentation about the food they are served. Better presentation delights the customer. Presentation is so important to some customers that if food is well presented they even ignore the taste of the product. Presentation of the dish persuades the customer to have the product even if it is not according to the desired requirements.

Selection:
Customers are rejecting limited menus and are demanding a larger selection of food items. So some side dishes should be the part of the menu to attract the customers. It can be in form of starter or a desert.

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Market growth:
There is a tremendous market for food businesses in Lahore because the indigenous as well as other inhabitants have a strong sense for food. The market is ever-growing; however, there has been a severe competition in the market which has arisen in recent years due to opening of good food outlets and growing sophistication among customers.

Competition:
The place where Pizza Inn will be operating is in central market of NFC Society which is the one of the main hubs of food business in Lahore. Pizza Inn have many competitors in Pakistan because of "Pizza lovers". One of the major competitors is Pizza hut because it is very known Pizza restaurant in Pakistan and we will have to work very hard to stand in front of them. Other competitors are Pizza hem and other restaurant were also focusing to launch their new product line like pizza we will also consider them as our competitor. Some restaurants like Fri Chicks are offering Pizza as a new product line and becoming strong competitors because of the low pricing and good quality of taste. To increase the sale of the Pizza Inn, the management has to take step towards the price factor, to which the lower budget peoples can affords the pizza and can enjoy the Italian food.

Competitive edge:
Our competitive edge is to be first-to-the-market with pizza in a friendly, nonsmoking, family-oriented dine-in experience, and first-to-the-area with food delivery. Pizza Inn will differ from other pizza parlors because we will offer less expensive products than our competitors, but we will still main the high quality of our products. We will also offer sales promotion on monthly basis: Buy one, get other on half price. Buy one, get one free. 10% off on appetizers.

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PRODUCTION PLAN
The 40% of total area will be allocated to production sector. We will require two gas ovens for baking process. We will install the machine for making of fresh and chilled beverages that are already mentioned earlier in the plan. One large size fridge will also be installed in the kitchen area for storage of our raw materials. The kitchen will open through counter shelves near attendants so it will be easy for them to serve to customers. Our kitchen will form a work triangle so that cooks can easily move in the premises without any difficulty. We will be manufacturing different kinds of pizza using different recepies to attract our customers keeping in view the quality standards. We will be obtaining our raw material from well known bakeries and fresh vegetables will be obtained from hyper star like malls to ensure the freshness and quality. We will be requiring our raw material on daily basis as we cannot take the risk over the quality of our products.

Kitchen details
Our kitchen will be of island style which have two oven installed on one side. Refrigerator will be installed on the other. At the centre of the kitchen there will be a counter for providing ample space for cutting purposes. A machine for formation of dough will also be installed in kitchen. Dishwasher will be at the wall opposite to the ovens. Kitchen will be opening in hall by means of two counter shelves. Refrigerator will be fulfilling the requirements of storing of meat and chesse. Vegetables will also be stored in it to maintain their freshness. We will use wooden pans for serving of pizza. Square italic style plates will be used for serving our customers with imprinted logo of PIZZA INN at the corner of it. Plates and pans will be washed frequently to maintain hygienic environment. Cooks will be using disposable gloves during their duty to meet the quality standards. The machine for beverages will be installed in one corner. Beverages will be served in pitchers with standing glasses. Extra ice will also be available for customers on demand and will be free. The environment of kitchen will be

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moderate so that employees dont face any kind of problem while working. Equipment is installed by keeping in consideration the work triangle. Equipment off high quality will be used and tools for remedy purposes will also be available all the time in kitchen so that if in any case any emergency arises it can be tackled within the restaurant.

Raw material
The raw material required for production will include only local available things. I will not need to import anything for my production. It will include: Chicken Beef Mutton Cheese 1. Mozzarella 2. Provolone 3. Italian hard cheese 4. Smoked gouda 5. Blue cheese 6. Cream cheese Tomato Onion Mushrooms Black olives Green pepper Green chili Pepperoni Tikka sauce Bologna Green onions Fresh coriander Tomato sauce Ginger Eggs

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Lettuce Basil Oregano Flour Cooking spray sauce Marjoram Instant dry yeast Olive oil Pizza sauce Jalapeno Bell pepper Marinara sauce Paprika Asparagus Broccoli

Suppliers:
Most of the ingredients needed for my production should be fresh so I have to purchase them on day to day basis. I will choose high quality whole sale dealer for delivery of fresh vegetables and herbs required for my production. I will make a contract with zenith meat dealers as their meat is of good quality and is pure and hygienic. And good quality is like the necessity of our business.

OPERATIONAL PLAN
PIZZA INN will remain open between 11:00 pm to 12:00 am. It will not close on Sundays even. We will be providing pizza in 4 different sizes according to the demand of the customer.

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Sitting area:
The sitting hall for PIZZA INN will comprise of five to six round and square shaped wooden tables with high back relaxing chairs. These will be ranging between two to eight chairs for different sizes of families or students visiting our restaurant. Tables will be of chinioti carving style that will attract the customers. Floor will be of fine marble and all walls will be painted with cool and harmonious colours that will not only please the old age but will also be appreciated by youngsters. Each table will have a vase of fresh flowers and bottles of sauces that will be complementary to our products. Different paintings portraying the heritage culture of our country will be posted on walls of the restaurant. Soft music will be played in the restaurant for amusement of customers. Soft one is selected as it will be tolerable by all age groups where as loud music may be annoying for some. Salad bar will be placed at one corner of the hall for those customers who desire to have starters before food. Customers will be provided with bowls to fill the salad from bar of their own choice after taking the slip from the service counter. Different types of salad will be placed in bar as people have different preferences. It will include: Beans salad Apple salad Chicken apple salad Mushroom salad Kachumar salad Russian salad Mix fruit salad Spicy gram salad

Service counter:
Service counter will be separating kitchen from sitting area. It will have two shelves at back that will be opening into the kitchen for collection of products ordered. Two attendants will be there at service counter who will be entertaining customer needs.

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Order taking: For dine in:

When the customer will walk into the restaurant he will be approaching to service counter where he will get the menu details and record his required items with the attendant. The attendant after noting the products required pass the slip to the employees working in kitchen. He will receive payment from the customer and provide him the copy of slip and request him to wait for ten to fifteen minutes so we can provide him with fresh products. For take away: For the purpose of take away we have a separate counter at one end of service counter. The customer will walk into the restaurant and get packed his required order in ten to fifteen minutes. We will try to reduce our waiting time as we flourish our business and get more employees. For home delivery: Orders for home delivery will be recorded on phone and address along with mobile number will be asked from customer to avoid any kind of inconvenience, then passes the slip of order into the kitchen for fulfillment, when orders are ready for delivery, the delivery boy will take the order at address mentioned on phone. It will take almost thirty minutes in this whole procedure to complete. We will be offering 10% discount on our all products for the first week of our operations.

MARKETING MIX
The marketing mix is a business tool used in marketing and by marketing professionals. The marketing mix is often crucial when determining a product or brand's offering, and is often synonymous with the four Ps: Price. Product. Promotion.

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Place.

Marketing Mix of PIZZA INN:

Pizza inns marketing mix is comprised of these following approaches to product, pricing, distribution, advertising and promotion.

Product:
The main product of PIZZA INN is pizza of different kinds keeping in consideration the demands of customers observed during the industry analysis. Pizza will be available in four different sizes and different toppings are also available. Appetizers and beverages are also available as complimentary to our main product. We will be offering fried chicken and fries later on as we flourish our business.

Pricing:
Pizza inn will use market penetration and psychological pricing strategy which implies that prices will be low as well as matching customer's perceived price and his needs. We will offer four different sizes of pizza: 1. Small pizza for Rs.300 2. Medium pizza for Rs.450 3. Large pizza for Rs.600 4. Family size pizza for Rs.800 Garlic bread will be offered for Rs.50 each slice Salad will also be available in three sizes: 1. Small bowl for Rs.60 2. Medium bowl for Rs.80 3. Large bowl for Rs.140 Beverages will be offered for Rs.45 per glass

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Place:
Pizza inn is located in central market of NFC society and its food will be distributed within Lahore. Customers can either dine-in or take out. Food will also be delivered to the desired location with the help of free home delivery service. The market will attract the customers of Valencia town as well. There is ample space for car parking and motorcycle parking just beside the pizza inn.

Promotion and Advertising:

Pizza inns advertising budget is very limited. The most successful advertising will be teasers, banner ads, brochures and posters, websites and local news papers and magazines.

Marketing Strategy:
Our marketing strategy will not exceed 5% of our annual gross sales. Marketing will be via: Dimension website (to be launched prior to store opening) Radio Advertisement TV advertisement Social Networking (Face book, Twitter) Business Cards Word of mouth Local news papers

Sales strategy:
The area of NFC Society has expressed its need for additional restaurants, specifically a desire for pizza. Because of this, there is pent-up demand for pizza in this area. We will expect a high rate of sales growth within the first 3 months as this customer desire is met.

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For the next year, we continue to focus on a growing presence in the community and advertising heavily throughout the community. As a major convention center is opening in the area, we will focus our attention on becoming the recognized provider of pizza to that establishment.

Sales forecast:
Our sales forecast assumes a modest change in annual costs to accommodate new entry into the market. We are expecting to increase sales modestly but steadily over the next year, which is a respectable growth rate. The growth forecast is assumed given this is a new product for the area using new channels of availability. We are not projecting significant change in the product line, or in the proportion between different lines. Based on industry averages and the presence of competition for pizza, we are predicting an average of 25 pizzas sold each week days (Monday Friday). On the weekends (Saturday - Saturday), we are estimating 40 pizzas are sold each day. Of those pizzas ordered, we are expecting approximately 1/3 to be dine-in customers. Those customers dining in will most likely order drinks. Additionally, we are estimating that approximately one-third of the pizza orders will be accompanied by an order for appetizers.

MANAGEMENT AND STAFFING

Organizational structure:
The structure of our organization will be of pyramid style. Employee and owner will be working at same level to take their business at the top level in market.

Management:
Dania sarwar will be handling the management of the PIZZA INN by applying her abilities at best level. She will also tackle and look after the financial requirements

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of the organization. She will have a great work load in start as she is the sole proprietor of the business and have to be there in restaurant all the time to check and control the employees.

Staffing:
At the initial level we will not be hiring much people as the payment of salary would not be an easy task for us. We will hire two cooks graduated from well known universities who have a great experience in baking of products. One helper will be required for carrying out kitchen responsibilities. We will need at least two attendants for taking of order from customers. At least one delivery boy will e required as we are also going to offer free home delivery service to our customers residing in nearby areas. One guard will be required keeping in view the security measures. We will appoint those people as attendants who are educated but jobless and reside in nearby areas so they may not suffer any problem because off late closing of PIZZA INN. The staff will wear a decent uniform to give a look of a well organized restaurant. We will expand our hiring procedure as we grow step by step. We will consider many things while hiring attendants. Boys should neither be shy nor outspoken while dealing the customers. They should be using humble and polite way of talking so that customer feels comfortable.

IMPLEMENTATION PLAN
After all the analysis and estimation now we will have to decide that how our plan will be implemented. First off all we start the task of renovation of our building. We will have to paint the walls, floor will be marbled and it will be polished. The kitchen cabinets will be fitted into the walls keeping in view the ease of access of the employees. Shelves and counters will be fitted into the kitchen and dining hall. Our next task will be the installation and purchase of required equipment. It will include:

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Gas oven o Dough making machine o Refrigerator o Beverages maker o Microwave oven After that we will start working on advertising of our venture and decoration of dining hall. Some wood work will be done on walls. Paintings, furniture arrangements, placement of vases, all will be included in this decoration. Preliminary advertisement about opening will also be started side by side. Broachers will be distributed; advertisement in local news papers will be published. And then finally on the date of commencement of business the operations will be started.
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FINANCIAL PLAN
Financial summary: Money needed
Needed for Estimated Amount (Rs) 700,000 Source Amount (Rs)

Start up cost

Personal cash

800,000

Working capital

300,000

Parents

200,000

Total

1,000,000

Total

1,000,000

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Start up cost

Description Office supplies Interior arrangements Utilities Inventory Insurance Renovation equipments Total

Cost(Rs) 30,000 150,000 20,000 50,000 350,000 200,000 800,000

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Estimated income statement For the year 2013

Rs Sales Less: cost of goods sold Gross profit Less: other expenses Utilities Salaries 2,000,000 (200,000) 1,800, 000 150,000 250,000 ( 400,000) 1,400,000 Taxes Net profit ( 100,000) 1,300,000

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SWOT ANALYSIS
Strengths:

Selection and Variety:

We are offering variously priced deals along. This provides variety to the customer to choose from and it delights the customer. Moreover, we are also offering variety in sauces with Chili Garlic Sauce, Tomato Sauce, Green Chili Sauce and Savory Sauce as well as variety in drinks with Coca-Cola, Fanta and Sprite on the menu for the customers to select from.

Loyalty of employees:
The employees will be provided with comfortable environment to work in and certain incentives will be provided to them so they become more loyal and serve as long term assets for restaurant.

Offering quality product at affordable prices:

Our quality will be our strength. We will be providing best standard food at a relatively low price and build strong customer base. Our products will be in range of even lower middle class customers.

Weakness:

Electricity:
Now a day's electricity is one of the major problems in Pakistan and it is also the major weakness of our restaurant.

Gas:
Loadshedding of gas has also increased in Pakistan which is hindering the progress and working of all industries of country. In same manner our working will also be hindered by this factor and it will be our major weakness.

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Opportunities:

Increase in sale due to price:

Our target market is largely composed of teenagers which are inherently price conscious. This fact provides us with an opportunity to set a low price for our deals in harmony to the economical behavior of the customers. Seizing this opportunity is likely to earn us more customers and profit.

Threats:

Entrance of new competitors:

In this industry more and more people are planning to enter and thus the level of competition will increase for us. People of our country like to explore new things so entrance of new competitors will be a greatest threat for us.

Economics instability:
The economy of our country is not stable and it directly affects the buying patterns of our customers. And even with introduction of new rules and regulations of changing governments it is quite difficult to move.

Pizza lover.

PEST ANALYSIS
Economic Factors:
Currently, the global economy is in recession and the scenario isn't different for our economy which has rendered customers as pessimistic and price conscious. Besides, our target market largely constitutes teenagers which are inherently price conscious. All these factors make our target customer's price conscious seeking

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economical, value-priced products. This scenario provides us ample opportunity to target customers with affordable deals.

Social Factors:
Factors like demographics; income distribution, life style etc. can also affect the company in different ways. After the opening of Pizza inn market message of "Affordable Pizza" the new era of fast food began in Pakistan and it will change the life style of the Pakistani people.

Technological Factors:
The ever-changing technology is surely a force to be reckoned as important for our business. We will need high technology in order to compete Pizza hut. Moreover, in the face of current energy crisis, UPS systems will be helpful in ensuring uninterrupted power supply.

Cultural Forces:
Our socio-cultural accept food businesses well since they satisfy our traditional roots. Therefore, cultural forces are favorable for our business.

Environmental Protection:
There is not any such item that may be harmful for the environment. The company fully compliance with Environmental act/regulation.

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