Final REport of AFC

Acknowledgment
All the thanks to almighty Allah, who bestowed us with courage & ability to
achieve this opportunity.
In the VERY FIRST, we are praying and thanking to ALLAH to

bless us with courage and success in achieving our target.
(INSHAH-ALLAH)
We wish to convey our sincere & deepest gratitude and great

acknowledgement to our respected teacher Ms Zainab Rehman who has
provided us an opportunity to visit AFC. We have visited AFC and KFC of
Multan for our research and we are in no confusion for saying that this
activity has enhanced our knowledge about the Research work. It is the
result of the efforts of our respected teacher who provided us all the
possible directions and information for this purpose & we are thankful to
all the consulting celebrities who also helped us in performing this task &
we are especially thankful to our parents & friends who help us to do this
task.
USMAN AHMAD RAZA MBC-09-22

MOB No: 03336934822
E-Mail Address: usman_mcu@yahoo.com
INSTITUTE OF MANAGEMENT SCIENCES. (CITY CAMPUS). BZU. MULTAN
Declarations
We hereby declare that this “Research Project” and it is neither as a whole

or as part have developed report entirely on the basis of our personal
effort, made under the guidance of our project supervisor “Ms Zainab
Rehman
No portion of this work presented in this dissertation has been submitted

in support of any application for any other course of any other degree
program or qualification of this or any other university or institute of
learning.
It is further stated that whole document is as the partial fulfillment for the
“Research” course in M.B.A Degree Program. We understand and transfer
the copyright for this material to the department of IMS(City Campus)
Multan.

MOB No: 03336934822
DEDICATION
“To Our Allah who is most beneficent and the merciful and who
is always with us in our loneliness and in all our difficulties.
AND
To our Parents, Teachers & Friends who always pray for us to

succeed in life.

MOB No: 03336934822
TABLE OF CONTENTS
Acknowledgment.................................................................................................................1
Declarations.........................................................................................................................2
DEDICATION.....................................................................................................................3
Executive Summary.............................................................................................................5
Problem Statement:..............................................................................................................6
Research Design...................................................................................................................6
SAMPLING.....................................................................................................................6
Research Methodology........................................................................................................6
PROBLEM IDENTIFICATION......................................................................................6
LITERATURE REVIEW................................................................................................6
Mission Statement........................................................................................................6
An Overview of Restaurant.........................................................................................7
ADDRESS:......................................................................................................................7
Main Competitors........................................................................................................7
Hypothesis Development.................................................................................................9
Data Collection..............................................................................................................15
Data Analysis.................................................................................................................15
Results:...........................................................................................................................27
Threats to Validity:....................................................................................................27
Conclusions:.......................................................................................................................28
References:.........................................................................................................................28
Appendices: .......................................................................................................................29

MOB No: 03336934822
Executive Summary
We were directed to prepare a Research Report by our respectable teacher Miss Zainab
Rehman.We decided to conduct Research on Al-Najam Fried Chicken (AFC), which
was facing a problem of declining rate of customers as compared to its main competitor
Kentucky Fried Chicken (KFC) .The Head Office of AFC is situated on 95-Main
Market, Samanabad, Lahore. And Multan branch is situated on Tehseel Chowk Gulgast
A Block. As AFC is providing its products and services all over the country through its
branches and franchises so it is a fast food restaurant growing very rapidly within a
strong competition.
For the purpose of finding solution to this problem we collected data by using
multiple methods of data collection. To know the reasons for declining trend to the
AFC .We got the questionnaires filled up from people of different areas. The
questionnaire was about asking the people about either they are price conscious or quality
conscious, or their preferences to products of restaurants are on the basis of food variety,
taste, environment provided by the restaurant, services provided by the staff or
presentation of the products. Open-ended questions were also asked for further
clarifications.

MOB No: 03336934822
Problem Statement:
Customer satisfaction on AFC and which factors are declining the customer ratio
and how they can increase their sales.
Research Design
SAMPLING
During our Research work we chased about 100 respondents as sample size and
selected the different areas of Multan as broad Problem Area of our study.
Research Methodology
PROBLEM IDENTIFICATION
The management of the AFC observed that they are facing the problem of
declining customer ratio due to their competitor i.e. KFC and LASANI. After studying
the data gathered in preliminary data gathering we found that it is true that the customer
ratio is decreasing gradually from last couple of years.
LITERATURE REVIEW
Mission Statement
Our mission is to make the quality fast food available to all those people who
liked the fast food.
We did so without compromising the highest standards of food industry. We,
AFC, not only use the best raw materials available but we also provide the best of food at

MOB No: 03336934822
a very reasonable and competitive price. All our foods are processed and prepared using
of the art machines and equipments and we always used to say that,
“No Compromise on Quality”
An Overview of Restaurant
ADDRESS:
AL-NAJAM FRIED CHICKEN (AFC).
Tehseel Chowk Gulgast A Block Multan.
Telephone: +92-61-6212228
+92-61-6212229
E-Mail: afc786@afc.com.pk
Web site: http://www.afc.com.pk
Main Competitors
The main competitors of AFC are KFC and LASANI. They are providing the
services in Multan from many years but AFC Multan branch provided its services only
from last year. AFC is trying to improve its service to compete the competitors. Its
competitors are more established
In order to formulate Literature review, first we are to list and label the variables
of the study.
LIST Labels
Price Independent
Taste Moderating
Goodwill Intervening
Environment and Service Independent
MOB No: 03336934822
Declining Customer Ratio Dependent
The dependent variable is “Declining Customer Ratio”, which is the variable of primary
interest, to which the following Independent variables may cause to influence i.e.
• Price
• Environment
• Service provided
Goodwill as Intervening Variable.
Increase in Prices of products items and products ultimately cause less attraction of
people towards Restaurant. Due to lack in the quality of products and products items
people are dissatisfied. Lack of advertisement does not introduce restaurant in the far
away areas. That’s why people would join other restaurant products unknowingly.
INTERVENING VARIABLE
GOOD
WILL
ENVIRONMENT
SERVICE CUSTOMER
RATIO
PRICE
DEPENDENT VARIABLE
TASTE
INDEPENDENT
VARIABLES
MODERATING VARIABLES
MOB No: 03336934822
Hypothesis Development
We can develop these Hypotheses between dependent and independent variables:
Hypothesis # 1
Q#9
Prices are competitive
Develop Hypotheses
Ho: There is no relationship between Price and Customer Ratio

HA: There is relationship between Price and Customer Ratio
Level of Significance
0.05
Type of Test
Chi square
Fo Fe Fo-Fe (Fo-Fe)2 (Fo-Fe)2/Fe

Strongly 44 20 24 576 28.8
Agree
Agree 16 20 -4 16 .8
Neutral 7 20 -13 169 8.45
Disagree 15 20 -5 25 1.25
Strongly 18 20 -2 16 0.2
Disagree
Total 100 100 0 790 39.5
Degree of Freedom
DF = k-1
MOB No: 03336934822
5-1=4
Critical Value
9.49
9.49 39.5
Conclusion
Calculated value is greater than the critical value so we reject Ho and accept HA

MOB No: 03336934822
Hypothesis # 2
Q.5
How would you rate the taste of your Food?
Ho: Taste does not effect on customer ratio

HA: Taste effects Customer ratio
0.05
Type of Test
Chi square
Fo Fe (Fo-Fe) (Fo-Fe)2 (Fo-Fe)2/Fe
Excellent 34 20 14 196 9.8
Good 17 20 -3 9 0.45
Average 22 20 2 4 0.2
Below Average 18 20 -2 4 0.2
Poor 9 20 -11 121 6.05
Total 100 100 0 334 16.7

Degree of Freedom
DF = k-1
5-1=4
Critical value
9.49
USMAN AHMAD RAZA 9.49

MBC-09-22 16.7
MOB No: 03336934822
Conclusion
Hypothesis # 3
Q.
How was the environment in AFC?
Ho: There is no relationship between Environment and Customer ratio.

HA: There is relationship between Environment and Customer ratio.
0.05
Type of Test
Chi square
Excellent 53 25 28 784 31.36
Good 28 25 3 9 0.36
Fair 7 25 -18 324 12.96
Bad 12 25 -13 169 6.76
Total 100 100 0 1286 12.86

MOB No: 03336934822
Degree of Freedom
DF = k-1
4-1
3
Critical value
7.82
7.82 12.86
Conclusion

MOB No: 03336934822
Hypothesis # 4
Q. 6
How would you rate your Service?
Ho: Services does not effects on customer ratio

HA: Services effects on customer ratio
0.05
Type of Test
Chi square
Excellent 5 16.67 -11.67 277.88 16.67
Good 15 16.67 -1.67 2.78 0.16
Average 34 16.67 17.33 300.33 18.02
Below Average 16 16.67 -0.67 0.45 0.03
Poor 22 16.67 5.33 28.41 1.7
Others 8 16.67 -8.67 75.16 4.51
Total 100 100 0 685.01 41.09

MOB No: 03336934822
Degree of Freedom
DF = k-1
6-1= 5
Critical value
11.07
11.07 41.09
Conclusion
Data Collection
Personal interviews of Management

Close ended and open ended Questionnaires from general public visiting AFC
Web site of AFC i.e. www.afc.com.pk
Data Analysis
We have collected scientific data from general people, by personnel interviews
and questionnaires. After that we have analyzed the data by using statistical tools i.e.
averages, percentages and proper graphical presentation of data has been applied. We

MOB No: 03336934822
have chosen the new technique to present the data analyzed through charts and graphs.
This will make the whole analysis easy to understand and attractive
Q#1
How many times you visit AFC in a month?
Percentage
Daily 3%
Weekly 27%
Monthly 57%
First Time 10%
Others 3%
This is the GRAPHICAL REPRESENTATION of this Question. In

this it shows that how many times customers go AFC in different
time period.

MOB No: 03336934822
60
50
40
30 Series1
20
10
0
Daily Weekly Monthly First Others
Time
Q#2
Was the waiter attentive and available when you needed him?
Yes 83%
No 17%

this it shows that weather the waiter is attentive or not.

MOB No: 03336934822
No
Yes
Q#3
Was the waiter knowledgeable and able to answer your

questions about the food?
Yes 89%
No 2%
Others 9%

MOB No: 03336934822
this it shows that weather the waiter is knowledgeable and able
to answer or not.
Yes
No
Others
Q#4
The menu has a good variety of items?
Strong Disagree 42%

Disagree 23%
Neutral 4%
Agree 20%
Strongly Agree 11%
MOB No: 03336934822
this it shows that in which category menu exits.
50
40
30
20
10
0
S trong D isagree Neutral A gree S tro ngly
D isagree A gree
Q#5
Excellent 34
Good 17
Average 22
Below Average 18
Poor 9

MOB No: 03336934822
this it shows that in which category taste of food exist.
Poor
Be low
Ex ce lle nt
Ave ra ge
Ave ra ge Good
Q#6
Excellent 5%
Good 15%
Average 34%
Below Average 16%
Poor 22%
Others 8%
MOB No: 03336934822
Others 8
Poor 22
Below Average 16
Average 34
Good 15
Excellent 5
Q#7
The food is served
Hot 29%
Fresh 23%
Hot & Fresh 32%
Normal 14%

MOB No: 03336934822
None 2%
40
30
20
10
0
Hot Fresh Hot & Norma None
Series1 29 23 32 14 2
Q#8
Employees are
Patience Speaking Clearly Friendly

1 65% 44% 49%
2 11% 10% 18%
3 5% 1% 7%
4 8% 3% 5%
5 2% 2% 4%
6 2% 4% 8%

MOB No: 03336934822
7 7% 36% 9%
70
60
50
40 Patience
30 Speaking Clearly
Friendly
20
10
0
1 2 3 4 5 6 7
Q#9
Strongly Agree 44
Agree 16
Neutral 7
Disagree 15

MOB No: 03336934822
Strongly Disagree 18
Strongly
50 Agree
Agree
40
30 Neutral
20 Disagree
10 Strongly
Disagree
0
1
Q # 10
Excellent 53%
Good 28%
Fair 7%
Bad 12%
MOB No: 03336934822
60
50
40
30
20
10
0
Excellent Good Fair Bad
Q # 11
Which type of music you like?
Modern 35%
Old Fashioned 11%
Slow 32%
Fast 22%
22
35 Modern
Old Fashioned
Slow
Fast
32 11

MOB No: 03336934822
Q # 12
How was the music Volume?
Low 22%
Moderate 51%
High 27%
60
50
40
30 51
20 27
22
10
0
Low Moderate High
Results:
Threats to Validity:
• Respondents may not give us the exact information in the

questionnaire due to the lack of interest.
• Due to controversial topic respondent may provided the
biased information.

MOB No: 03336934822
Conclusions:
The main purpose of our Research work for the preparation of Research Proposal
was to analyze the products of both the restaurants and to find the reasons, why the
customers’ ratio of AFC is declining day by day and to know the reason that why KFC is
more appreciated by the people as compared to AFC. From our research analysis we
found that KFC provides more special packages and offers more quality products to
attract the customers.
On the basis of our data analysis we see that people also like AFC as well and it is
growing rapidly in the race and strong competition of Fast food restaurants but yet its
percentage is less as compared to KFC on the basis of various factor which are discussed
one by one in the Data Analysis by graphical and tabular representation of data gathered
by different methods.
So we can conclude over here that there were various independent variable like
quality of the products provided, prices of the products offered, service provided by the
staff and environment provided by the restaurants counts a lot due to which the dependent
variable i.e. Decline in Customer ratio was badly effected.
References:
During the research process, besides our practical research, we also have
consulted some book about our practical research for the preparation of this proposal in
an effective manner. A list of all references, which has been consulted and the data has
been derived from, are given as under:

MOB No: 03336934822
 Class Notes by Miss Zainab Rehman, during our class lectures
 Mr. Zeshan, Manager of AFC branch Multan
 Field surveys through which data has been collected from different types of
questionnaires and different areas of Multan
 (AFC) Restaurant’s Booklet and brushers
 http://www.afc.com.pk
Appendices:
Q#1
How many times you visit AFC in a month?
□ Daily 3%
□ Monthly 27%
□ Weekly 57%
□ First Time 10%
□ Others 3%
□ Q#2
Was the waiter attentive and available when you needed him?
□ Yes 83%
□ No 17%
Q#3
Was the waiter knowledgeable and able to answer your questions about the food?
□ Yes 89%
□ No 2%
□ Others 9%
Q#4
The menu has a good variety of items?
□ Strongly Disagree 42%
□ Somewhat Disagree 23%
□ Neutral Somewhat 4%

MOB No: 03336934822
□ Agree 20%
□ Strongly Agree 11%
Q#5
□ Excellent 34%
□ Good 17%
□ Average 22%
□ Below average 18%
□ Poor 9%
Q#6
□ Excellent 5%
□ Good 15%
□ Average 34%
□ Below average 16%
□ Poor 22%
□ Others 8%
Q#7
The food is served
□ Hot 29%
□ Fresh 23%
□ Hot and Fresh 32%
□ Normal 14%
□ None of the above 2%
Q#8
Employees are:
□ Patient 65%_11% _ 5 %_ 8% _ 2%_ 2 %_ 7 % _
□ Speak clearly 44% _10 %_ 1 %_ 3% _ 2%_ 4%_ 36% _
□ Friendly 47%_18 %_ 7% _ 5% _ 4% _ 8 %_ 9% _
Q#9

MOB No: 03336934822
□ Strongly Disagree 44%
□ Somewhat Disagree 16%
□ Neutral Somewhat 7%
□ Agree 15%
□ Strongly Agree 18%
Q # 10
□ Excellent 53%
□ Good 28%
□ Fair 7%
□ Bad 12%
Q # 11
Which type of music you like?
□ Modern 35%
□ Old fashioned 11%
□ Slow 32%
□ Fast 22%
Q # 12
How was the music Volume?
□ Low 22%
□ Moderate 51%
□ High 27%

MOB No: 03336934822

Final REport of AFC

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Acknowledgment

In the VERY FIRST, we are praying and thanking to ALLAH to

We wish to convey our sincere & deepest gratitude and great

USMAN AHMAD RAZA MBC-09-22

We hereby declare that this “Research Project” and it is neither as a whole

No portion of this work presented in this dissertation has been submitted

USMAN AHMAD RAZA MBC-09-22

To our Parents, Teachers & Friends who always pray for us to

USMAN AHMAD RAZA MBC-09-22

USMAN AHMAD RAZA MBC-09-22

USMAN AHMAD RAZA MBC-09-22

USMAN AHMAD RAZA MBC-09-22

“No Compromise on Quality”

Ho: There is no relationship between Price and Customer Ratio

Fo Fe Fo-Fe (Fo-Fe)2 (Fo-Fe)2/Fe

USMAN AHMAD RAZA MBC-09-22

Ho: Taste does not effect on customer ratio

Excellent 34 20 14 196 9.8

Below Average 18 20 -2 4 0.2

Poor 9 20 -11 121 6.05

Total 100 100 0 334 16.7

USMAN AHMAD RAZA 9.49

Ho: There is no relationship between Environment and Customer ratio.

Fo Fe Fo-Fe (Fo-Fe)2 (Fo-Fe)2/Fe

Excellent 53 25 28 784 31.36

Fair 7 25 -18 324 12.96

Bad 12 25 -13 169 6.76

Total 100 100 0 1286 12.86

USMAN AHMAD RAZA MBC-09-22

USMAN AHMAD RAZA MBC-09-22

Ho: Services does not effects on customer ratio

Fo Fe Fo-Fe (Fo-Fe)2 (Fo-Fe)2/Fe

Excellent 5 16.67 -11.67 277.88 16.67

Good 15 16.67 -1.67 2.78 0.16

Average 34 16.67 17.33 300.33 18.02

Below Average 16 16.67 -0.67 0.45 0.03

Poor 22 16.67 5.33 28.41 1.7

Others 8 16.67 -8.67 75.16 4.51

Total 100 100 0 685.01 41.09

USMAN AHMAD RAZA MBC-09-22

Personal interviews of Management

USMAN AHMAD RAZA MBC-09-22

This is the GRAPHICAL REPRESENTATION of this Question. In

USMAN AHMAD RAZA MBC-09-22

This is the GRAPHICAL REPRESENTATION of this Question. In

USMAN AHMAD RAZA MBC-09-22

Was the waiter knowledgeable and able to answer your

USMAN AHMAD RAZA MBC-09-22

The menu has a good variety of items?

Strong Disagree 42%

USMAN AHMAD RAZA MBC-09-22

How would you rate your Service?

Below Average 16%

The food is served

Hot & Fresh 32%

USMAN AHMAD RAZA MBC-09-22

Patience Speaking Clearly Friendly

USMAN AHMAD RAZA MBC-09-22

USMAN AHMAD RAZA MBC-09-22

Which type of music you like?

Old Fashioned 11%

USMAN AHMAD RAZA MBC-09-22

How was the music Volume?

• Respondents may not give us the exact information in the