1

SO FRESH FAST FOOD SERVICES, BAMBILI

BUSINESS PRPOSAL

CHENWI BLESSING

MOBILE: EMAIL:

18TH JANUARY 2016

2

TABLE OF CONTENT

3

1. EXECUTIVE SUMMARY OF THE BUSINESS

SO FRESH FAST FOOD SERVICES is a restaurant that provides freshly cooked meals and a

takeaway service. Our aim is to consistently provide customer satisfaction by rendering an

excellent service, quality products and an enjoyable atmosphere at an acceptable price/value

relationship. Moreover, we also maintain a friendly, free and fair creative work environment.

1.1 MISSION

Our mission at SO FRESH FAST FOOD SERVICES will be to provide hot and cold served

salads, burgers and fillings alongside fruit juice which will have a unique taste and served in a

purely traditional manner to remind us of our roots and to give our brand a Cameroonian flavor.

SO FRESH FAST FOOD SERVICES will be the first of its kind in the local area with an

introduction of 3 course meals. Its unique services will cause its meals to be charged at a

premium in order to lock in a significant profit. We intend to offer a quality customer service so

as to save the time and reduce frustration. Our niche customers are students and we intend to be

at our best in terms of food quality and presentation, customer service and a lovely atmosphere in

order to have a massive turnover and reputable brand. We look forward to getting positive

feedback and enormous recommendations from our customers

1.2 OBJECTIVES

The objectives of SO FRESH FAST FOOD SERVICES are;

To maximize profit,

To satisfy customers and also providing them with quality products and service at

affordable prices

To be well known and famous as one on the best fast foods services in town

1.3 PULL FACTORS

A high student population with a buying ability and capability

Location. The place in which the business is found is accessible to all and secured.

The uniqueness of the service and its menu which are both entertaining and trendy, will

create room for a massive turnover

Very affordable prices compared to our peers in Bambili.

4

2. COMPANY SUMMARY.

Our business concept was greatly influenced by renowned fast food chains like McDonalds and

Kentucky Farmers. Moreover our core market constitutes an age group between 18 and 40 years

which make up the active work force. We thus intend to exploit this by providing quality meals

to cater for the bodily needs of this active population. Furthermore we intend to hand over

brochures to our customers in order to nourish them with our fantastic business concept and for

marketing purposes.

2.1 COMPANY LOCATION

SO FRESH FAST FOOD SERVICES will be located at BAMBILI. BAMBILI is one of the

most busy and populated areas in Bamenda .The reason for this location is to target the

population, which is largely dominated by students from CCAST, UBA, POLYTENIC AGRIC

SCHOOL as well as the active working class, traders and hawkers. The facility will include a 20

seat dining area with a reception desk and a kitchen. It is strategically located and we are

expecting to exploit the increase in population as a result of the influx of educational institutions

in Bambili.

2.2 COMPANY OWNERSHIP

NEBA ROSMARY- C.E.O

CHE BLESSING CHENWI, FOUH FEDORA BI- Business managers

NDIKUM SANDRINE- Technical Assistant

2.3 START- UP SUMMARY

The start- up cost and initial financing are shown on the table below. The main source of income

will be from debt (700,000 FCFA) and equity worth 150,000 FCFA. The table illustrates how the

capital would be used up in six months.

START UP COSTS TABLE:

5

DESCRIPTION QUANTITY UNIT PRICE AMOUNT

RENTS 1 50000 PER MONTH 300000

EQUIPMENTS

GAS COOKER

KITCHEN BOWLS

REFRIGERATOR

MICROWAVE

BAKING PANS

COOK $ FRY SPOONS

POTS

CHOPPING BOARDS

MULLINEX

2

4

1

1

3

4

3

2

1

25000

50000

FURNITURE

TABLES

CHAIRS

6

20

PACKAGING

FOOD CANS

PAPER BAGS

CUPS

200

200

200

50

15

50

10000

3000

10000

CONSTIGENCY 10000

3.0 PRODUCTS AND SERVICES OFFERED

SO FRESH FAST FOOD offers breakfast and lunch (with a drink). Thus we will have a

threefold menu.

Exceptionally, we intend to go about the fast food business differently and incorporate an

African approach and as such we will serve boiled rice, tomatoe sauce, beans .SO FRESH FAST

FOOD SERVICES will be organized and managed in a creative and innovative fashion to

generate very high levels of customer satisfaction and to create a working climate conducive for

employees and customers.

3.1 PRODUCT AND SERVICE DESCRIPTION

Breakfast

omelets, cereal, fried eggs, coffee, toast bread, harsh browns and tea.

6

Lunch

Fried potatoes, pancake fillings, salads, cream cakes, juice or smoothies, fruit salads,

hamburgers, chicken sauce, sandwiches, chips and homemade potatoe salads

Drinks

Smoothies and beverages, fruit juice and canned drinks.

3.2 TECHNICAL STUDIES

The explanations of some basic recipes are explained below as an illustration of how the work

procedures are going to be done.

This part has to do with an elaborate explanation of the production process of some of the

services

Pancakes

• Place the Dry Ingredients in a bowl and whisk to combine.

• Make a well in the centre and place the Wet Ingredients in the well. Whisk until

combined and lump free (stop whisking as soon as it is smooth, don't over whisk).

• Melt ½ tsp butter in a non stick fry pan over medium heat. Once melted, wipe most

of the butter off with a paper towel.

• Take 3 Frozen Nutella Discs out of the freezer just before you start cooking.

• Dollop ¼ cup of batter into the fry pan. Working quickly, place 1 Frozen Nutella

Disc in the middle of the batter, then top with batter to cover the Nutella disc

• When bubbles start appearing around the edges (around 2 minutes), lift up the edge

and make sure the underside is golden. Then flip and cook until the other side is golden.

• Repeat with remaining batter. Melt more butter in the pan after the 3rd or 4th

pancake. You should be able to make 7 in total, but sometimes it makes 6 - depends on how

much batter you use on top of the Nutella.

• Serve warm with sliced strawberries, if using. You could also serve wi th cream but I

find that it's not necessary!

HAMBURGERS

• 1. Dump your ground meat into a bowl. (We go for ground meat with around 20% fat.)

Season it with salt, pepper, and whatever else you want; you can add spices, perhaps, or

Worcestershire sauce, or shallots, or chiles.

• 2. Shape your burgers into patties, using your thumb to make an indentation in the

center; this will keep the burgers from puffing up. Keep in mind that the burgers will

7

shrink up a bit once you cook them, so make your patties a bit bigger than you want them

later.

• 3. Oil your grill or a cast-iron pan, and grill or sear those patties. (How many

times to flip them is up for debate but when I'm grilling, I flip once so I can get those

nice grill marks.) Cook them until your desired doneness (around 125-130ºF for medium

rare, around 1 minute per side for each inch of thickness). But before you take them off

the grill...

• 4. ...add your cheese and toast your buns. Let the cheese melt while the burgers

are still on the grill; to speed things up, you can close the cover.

• 5. Once your burgers are finished cooking, and your cheese is melty and your

buns are nicely charred, throw some condiments and toppings on those burgers. Bite

into it and let those juices run down your chin, and rejoice that it's summer. And then

make another round, because now you know how.

SANDWICH

• Lay out 2 pieces of bread.

• Put a piece of cheese on 1 of the slices of bread.

• Take out a microwavable bowl with the bottom of the bowl about the size of the

piece of bread.

• Spread butter in the bowl.

• Crack an egg into the bowl.

• Whisk the egg.

• Put it in the microwave for 40 seconds.

• Take the egg out of the bowl.

•

Put the cooked egg on the piece of bread with the cheese on it.

• Put the other piece of bread on top. Enjoy.

3.3 Future Prospects

As the business runs on, we will have a period at the end of every two weeks where we will have

a brainstorm activity to carry out possible research on what we know can be added to our menu

based on the research and what we will gather from the customer base we have. This will be

through a customer survey that will be carried out at the same period of the research activity and

will be part of it. Other optional activities will be added as need be.

8

4.0 MARKET ANALYSIS

The market is constituted of 3 main participants or groups, they include

The student population which make up the greatest majority of the market

The workers, those who leave town and come and work in the area and those who stay

and work in the area

The local population, those who actually live in the area and are permanent residents

there.

It should be noted that each of the group is seen as fit for the business because, the students

renting in the place will be the main group of customers because at the end of the day, the

tiredness from school and crushing laziness from the thought of cooking will make them see the

business as a life saver. The workers on the other hand will also benefit from the services offered

either to come spend some time to chat about their own businesses or to have meal for relaxation

or if tight up, pick up something to go eat at work. Lastly, the local population will be more

interested in the place because of its unique nature and for the fact that it is a new place and the

type of service offered is not the one common to their knowledge. They will love to picj up

something which they feel they can share with family or friends.

4.2 MARKET SEGMENTATION

As said above, the market is segmented into three groups as graphically illustrated below

9

Market Analysis

Year 1 Year 2 Year 3

Potential

Customers

Growth Rate

Students 15 % 4000 4600 5200

Workers 12 % 1500 1680 1860

Local pop and

Tourist

10 % 2000 2200 2400

total 27 % 7700 8480 9460

The youngster population is of an age of 15 to 25 years old and is having a limited budget and

their value- price relationship is known by the budget they allocate to their feeding.

The worker populations of an age rank of 25-40 years are people who mostly frequent outdoor

eating places and have more flexible buying attitudes. This is to say that their budget is not a

completely influencing factor on their value-price relationship.

So we are trying to keep the price tag which each of the groups can view as fair based on their

buying behavior and also be able to offer more exciting services which have the same value as

the meals offered.

4.2.1 Market Trends

market segmentation

students

workers

local pop and tourits

10

One of the most important trends in eating is the fact that people want to eat healthily and try to

keep fit and in form for their social standings and possibly work requirements. Things which are

greasy and fatty will on a general basis be avoided and those which offer better taste and less

fatty nutrients will be much more appreciated. To this fact, SO FRESH FAST FOOD

SERVICES will be offering what is both nice and dieted, with all nutrients and organic quality in

it.

4.2.2 Market Needs

As stated, customers will desire fast, healthy food that will appeal to their aesthetic tastes

and is provided in a comfortable atmosphere. In addition, they desire a memorable dining

experience that provides them with the chance to relax in the middle of the day. All of this

needs to be delivered to the customer with the least amount of hassle. Furthermore,

customers will also need a facility that can provide them with delicious, convenient take-home

meals when there is no opportunity to cook at home

4.2.3 Market Growth

We have no indication of market growth in this pulverized and diffuse market. No statistics are

available for a local food industry in Bambili. What we do know is that there is growth

potential, and plenty of potential market for the right combination of service, quality and choice.

4.3 SERVICE AND BUSINESS ANALYSIS

The restaurant industry is highly fragmented and competitive. Each company within this field

has low capital costs and low margins, which create this high intensity of competition.

There also exists a very high degree of rivalry among firms due to the perceived overcapacity

in this field. The larger companies often have cost advantages due to economies of scale that

allow them to out-compete smaller rivals.

The barriers to entry and exit are very low in this industry. Switching costs are virtually

nonexistent and the costs to entry and exit the market are low. The large number of competitors

in this field including substitutes such as local restaurants, bakeries and even groceries, mean that

the pricing for such services are very competitive. The only way to have an advantage in this

industry is either a low cost leadership principal applied aggressively to all aspects of the

business or to differentiate the entire eating experience through better and more unique food

and to build up customer relations to a point where the switching costs are raised.

4.3.1 Competition and Buying Patterns

Location is critical to success. Proximity to workers is very important, so is convenient

parking for the end-of-workday traffic stopping to pick up takeout dishes

11

Price is not very sensitive as long as we are not too high. Low price or lowest price is not

essential. Many target customers mistrust low price

Quality of food matters. If the price isn't too high and the food is good, we'll have

growth through repeat business.

Focus. To make sure the services offered are in line with what the target population wants

and desires, and not forgetting to change our pattern as theirs changes.

4.3.2 Main Competitors

The main competition witnessed are of two kinds; restaurants (local and professional) and

bakeries found in the area.

The restaurants are well established places which offer a variety of dishes and meals at a low

price and which can be afforded by the local population. These meals are seen as delicacies by

many and some will go a long way to purchase these meals at high prices to take them back

home for consumption. Also “achombo houses” and roasted fish are also seen as competition

because they offer pre-prepared dishes which is admired by the students and seen as a delicacy

by them at times

The next competition is the bakeries found around which offer the same or similar pastries like

the one offered by SO FRESH. These bakeries are branches of well known bakeries in town like

Imagine Bakery, Mr. Baker, amongst others. However neither company has the means enough to

ascertain their growth, explaining the reason why they are still small in nature.

5.0 STRATEGY AND IMPLEMENTATION.

The main focus of the business is to obtain maximum profit in a given time and create a large

sense of awareness of the business to the local and international public. Therefore we have to

understand the needs and buying patterns of the public in order that our plans should fall directly

in line with their desires.

5.1 Marketing Strategy

Our main opening up or initial strategy will be to make the public aware of the existence of the

business and create a customer base at the time. This will be succeeded by a grand opening,

distribution of flyers to the public, and possible caravan advertisements in the locality where the

business is to operate. Also the logo of the company has to create a sense of attraction to those

who but from us and to make it possible that what their eyes see, their minds can remember,

thus the need for a fashion like and friendlier design.

.Weaknesses of competitors

• Cost prices of services in other fast food like services is very high

12

• Other restaurants offer just the services and then neglect other services after-sale

services, customer retention services amongst others.

• Poor treatment of customers by staffs in fast food services and the management in

general, disrespectful, rude and ill-mannered towards customers. Hence customers are not

happy.

• Poor hygienic conditions of other fast food services; dirty towels, floor, surrounding and

equipment’s.

• Lack of well trained specialist to ensure that hair do is done smoothly , most fast foods

around hire or rather employ amateurs or apprentices to do the services of customers

which makes most customers totally dissatisfied because they know the apprentices have

no skill

• Lack of adequate finances to be able to afford the necessitated raw material and keep the

place organized at any point in time

• Most fast foods in the area are very tight and small, having inadequate space to host a

large number of customers

• Strategies to overcome the weaknesses of the competitors

After feasibility study of the market has been carried out SO FRESH FAST FOOD SERVICES

SERVICES will use or implement the following strategies so as to have a competitive advantage

over its competitors and also to have a large market share

• We will differentiate ourselves from our competitors by offering well trained nutrition

and food cookery experts who are not only certified in their professions but will be

trained in understanding the dynamics of customer service so as to maximize the

connection of their clients and more easily to exceeds clients expectations

• SO FRESH FAST FOOD SERVICES will not only make fast food for their customers

but also engage in after-sale services and also in advicing on the diet of their consumers.

This will keep customers to continuously be coming because if they are not for the hairdo

they will be for facials, massage or nails.

• We will ensure we purchase relevant equipment’s to make work in the beauty salon easy

going, equipment like modern gas cookers, fridge amongst others will be present.

• We will ensure maximum cleanliness of the fast foods services, ensure the environment is

beautiful, neat and serene. Also ensuring that the equipment’s of the salon, towels and

floors are always very neat.

13

• We will ensure the price of the services are affordable to all and not seen as a blockade to

the enjoyment of our services.

• Another strategy is to ensure that our clients are satisfied. When a client leaves with a

new smile on the face due to our services offered and pays allegiance to us for his

satisfaction then we can be proud as well as them. Word of mouth is one of the best

advertising tools for this kind of business

Judging from the fact that SO FRESH FAST FOOD SERVICES SERVICES will

make all dissatisfied customers satisfied , the can therefore assume that all the dissatisfied

customers will come to them .thereby by assuming a market demand of say 80%. They

are willing and capable of selling to a very large unit of the population and with the

availability of well-trained operators we can sell 20 units per day maximum

5.1.1 Promotion Strategy

The first idea of promoting the business will be to reduce the price of sales on the launching day,

and increase the amount of each set of meals provided. Keeping in mind that the value of each

meal has to be at an optimal level because it will cause the public to be both aware of the place

and have a high esteem for it thanks to the value or taste of the fast foods provided.

Another promotional idea will be to remove the transportation of meals for those who command

at home and at the office. This will be to make sure that the public have a firsthand experience on

the speed and delivery service which we provide. Prices will be allocated on the transportation as

time passes and the need arises.

5.1.2 Positioning Statement

The main market segment will be the student family (tutors and students) and business men. The

groups are composed of people who have little or no time to dedicate to eating and are always on

the move, either studying or attaining to their various customers, as such far from home and

food. There will be a wide variety of monetary tools to be used in payment but at the start up

there will be the use of cash only. Due to the work congestion of some businesses found there

and institutions which might not permit people to move out for a meal, the delivery service of the

company will be of great service since the consumers will have the means to eat these meals

which meet up their nutrient requirements at their various offices.

5.1.3 Pricing Strategy

Since the enterprise is sure of producing high quality meals which will have both high desired

taste and value, the enterprise will be charging three types of prices at different intervals. They

include;

14

Value Pricing: The types of services provided will be charged according to the products offered.

We can assure that they will be having both unique and exceptional services.

Penetration Pricing: this pricing policy will be where prices are set far lower than industry price.

This will be to attract customers and create an awareness of the business. This will be the first

pricing method used by the company since its just starting and will be run for a period of about 4

weeks.

5.3.1 SALES FORECAST

We are estimating that we will be making at most a 15% interest or profit from the sale of each

product, our forecasted sales for each time season is represented below.

period Menu Items Price Quantity Daily sales Monthly sales Sales per 6 months

breakfast

Hash browns 500 7 3500 105,000 630,000

Stuffed Pancake 200 12 2400 72000 432,000

Fried eggs $ toast 500 5 2500 75000 450,000

Cakes

Banana cakes

Plain cakes

300

300

7

7

2100

2100

63,000

63,000

378,000

378,000

lunch

Salads 500 10 5000 150,000 900,000

Hamburgers 500 7 3500 105,000 630,000

Homemade

potatoes salads

500 5 2500 75000 450,000

15

Sandwich 300 8 2400 72,000 432,000

Deep fries and

sauce.

500 10 5000 150,000 900,000

drinks

Smoothies 500 10 5000 150,000 900,000

Can drinks 500 10 5000 150,000 900,000

Fruit juice 300 8 2400 72000 432,000

Total 106 30,800 924,000 5,544,000

Forecasted Sales formulae = 𝒇𝒐𝒓𝒄𝒂𝒔𝒕𝒆𝒅 𝒒𝒖𝒂𝒏𝒕𝒊𝒕𝒚 𝒑𝒆𝒓 𝒊𝒕𝒆𝒎 ×

𝒇𝒐𝒓𝒄𝒂𝒔𝒕𝒆𝒅 𝒑𝒓𝒊𝒄𝒆 𝒑𝒆𝒓 𝒊𝒕𝒆𝒎

Determination of cost of production

𝒕𝒐𝒕𝒂𝒍 𝒄𝒐𝒔𝒕 = 𝒔𝒆𝒍𝒍𝒊𝒏𝒈 𝒑𝒓𝒊𝒄𝒆 − 𝒑𝒓𝒐𝒇𝒊𝒕𝒔

𝒑𝒓𝒐𝒇𝒊𝒕𝒔 = 𝒆𝒙𝒑𝒆𝒄𝒕𝒆𝒅 𝒆𝒂𝒓𝒏𝒊𝒏𝒈𝒔 𝒑𝒆𝒓𝒄𝒆𝒏𝒕𝒂𝒈𝒆 × 𝒔𝒆𝒍𝒍𝒊𝒏𝒈 𝒑𝒓𝒊𝒄𝒆

Therefore the Total Costs per day = 30,800 – (30,800* 15/100) = 26,180 frs CFA

Total Costs per month = 924,000 – (924,000* 15/100) = 785,400 frs CFA

Total Costs per 6 months = 5,544,000 – (5,544,000 * 15/100) = 4,712,400 frs CFA

Forecasted Profits

Profitability threshold is calculated below;

𝒑𝒓𝒐𝒇𝒊𝒕𝒔 = 𝒔𝒂𝒍𝒆𝒔 − 𝒄𝒐𝒔𝒕

Daily profits = 30,800 – 26,180 = 4620 frs CFA

Monthly Profits = 924,000 – 785,400 = 138,600 frs CFA

16

Profits per six months = 5,544,000 – 4,712,400 = 831,600 frs CFA

Exploitation charges (variable charges)

Variable cost Amount per month

Electricity bills 10,000frs

Water bills 5000frs

Patent rights 35000frs

Taxes per month 10000frs

Raw materials 200000frs

Total 260,000frs CFA

5.4 STRATEGIC ALLIANCE

The company is still small but will be in contact with local bakeries for the supply of needed

flour products like breads for its hamburgers and also the local market for potatoes. This is

because at the time they can’t produce the afore mentioned themselves. This will be also

advantageous because it will be a means of making their presence known in the public. Also the

company is trying to be in touch with the various schools in the area to be able to supply the

products in their school canteens and sales points. Also they can assist in the launching of

sporting activities and supply their services at lightly reduced prices.

6.0 FINANCIAL PLAN

The financial plan shows that the finance is mostly from bank loan, with no savings from the

owners mentioned. A bank loan of 700,000 is granted by the bank (UNICS PLC), it should be

noted that the company follows an aggressive approach, whereby 20% of profits are ploughed

back in the business,30% is paid as reimbursement of the loan, 10% is used to settle the monthly

taxes, 20% is saved in the company’s bank account and 20% is used to motivate the

entrepreneurs as and a strict loan policy is put in place. The debts of the company are paid first,

the remaining amount is put back in the business and dividends are shared only when residuals

are available.

6.1 Basic Financial Assumptions

Current interest rate = 5%

Longterm interest rate = 7%

7.0 CONCLUSION

17

In a nut shell from the market analysis, the technical studies ,the forecasted cost

involved SO FRESH FAST FOOD SERVICES will be a success taking in to

consideration the aforementioned factors