Business Plan for Fast Food Restaurant in Malaysia

Read the business plan for Fresin Fries, a fast food restaurant in Malaysia offering gourmet fried food items with selected choice of sauces. Learn about their vision, mission, products, market assessment, and strategic implementation.

Business Plan
Fast food restaurant in Malaysia
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Table of Contents
Table of Contents.................................................................................................................2
Executive Summary.............................................................................................................3
Vision/Mission Statement and Goals...................................................................................4
A. Vision Statement.........................................................................................................4
B. Goals and Objectives..................................................................................................4
C. Keys to Success...........................................................................................................4
Company Summary.............................................................................................................5
A. Company Background................................................................................................5
B. Resources, Facilities and Equipment..........................................................................5
C. Marketing Methods.....................................................................................................5
D. Management and Organization...................................................................................5
E. Ownership Structure....................................................................................................5
G. Internal Analysis.........................................................................................................6
Products and/or Services......................................................................................................7
Market Assessment..............................................................................................................8
A. External Analysis........................................................................................................8
B. Customers....................................................................................................................8
C. Strategic Alternatives..................................................................................................8
Strategic Implementation.....................................................................................................9
Financial Plan....................................................................................................................11
A. Financial Projections.................................................................................................11
B. Contingency Plan......................................................................................................11
Monitoring.........................................................................................................................11
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Executive Summary
A. Vision/Mission Statement
The mission statement of Fresin Fries is to develop its business into a successful business
by settling down with several fast food outlets in Malaysia. The aim of the company is to
start with a single retail outlet in a shopping mall to begin as a tester market.
B. Company Summary
Fresin Fries is a local restaurant set up that is planned to be placed at a global shopping
mall through a creative initiative for building awareness on the organization. Fresin Fries
will offer a huge collection of various food items at an affordable price with exciting
packages. Fresin Fries will be developed as a purpose to the increasing demand to fight
against the other fast food products that are mostly available in Malls.
C. Products/Services
Fresin Fries will be set up to sell gourmet fried food items with selected choice of sauces.
The company in case of products will be using the concept of Belgian Fries that will be
made up of Potatoes and fried foods (Salleh et al. 2015, p.5). Moreover, the outlet will
also provide quality and friendly customer service to assist the environment with a
youthful ambience.
D. Market Assessment
The expenditure of customers in Malaysia has increased during the year 2000 that
helped to get back the economy of the country. It is the growing number of fast food
restaurant in Malaysia that will help the company to attract customers (Hanaysha, 2016,
p.31). The company will evaluate the surrounding market and that are present in the
shopping mall. The restaurant company will set up food items that will compete against
the snacks that are offered by the popular restaurant. The company has planned to imitate
successful outlets like Starbucks and Mac Donald’s that covers the majority of the
potential market (Janssen et al. 2018, p.35). The store will characterize a display on the
cooking of Belgian fries to track customers.
E. Strategic Implementation
Friesen Fries have decided to set up a website page as well and in-house brochures from
where the consumers will be able to read out the featured items available in the food
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store. In this context, the store will be furnished with a fast food environment with a
bright counter that will display a menu on the wall.
F. Expected Outcomes
Customers will be attracted to buy the products. As a result of which more number of
outlets will be set up in different neighbouring cities such as Bangkok, Jakarta and
Manila.
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Vision/Mission Statement and Goals
A. Vision Statement
The mission statement of Fresin Fries is to develop its business into a successful business
by settling down with several fast food outlets in Malaysia. The aim of the company is to
start with a single retail outlet in a shopping mall to begin as a tester market
B. Goals and Objectives
The plan is developed to accomplish a specific location for the initial beginning of the
concept. In this context, the major goal of the company is to retain young customers and
encourage them to bring in their family members as well as friends in the innovative
environment of the restaurant (Tan et al. 2015, p.53). Additional financing will be
needed to be arranged to build subsequent outlet prepared for a 3 years plan. The initial
investment capitals will Frisen Fries to offer the customer with value-oriented service and
entertain the consumers with innovation in service. The objectives of the company are:
 To develop a successful local fast food restaurant while gaining a share market in
Malaysia
 To create Fresin Fries as the most popular destination spot for the mall visitors.
 To expand its business into several numbers of fast food chain outlet for the
period of three years thereby selling the franchise to different metropolitan cities
across Malaysia.
C. Keys to Success
To transform its outlet into successful business the company needs to:
 Develop an innovative and attractive set of food items that will make them
different from the competitive market.
 Need to set up the affordable cost of control in all the areas that are on par with
the conservative initiative for growth policy. The company will be providing
enough amounts of funds to develop more outlets for maintaining safe side for
business.
 They are required to sell the food products that are made of standard quality.
Moreover by maintaining the satisfaction of the customers by providing service
from the food store.
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 The company needs to offer 100 per cent satisfaction to all the visiting consumers
thereby maintain the quality of service.
Company Summary
A. Company Background
Fresin Fries will develop to sell gourmet fries within a package of a cone with an option
for the customers top chooses of their own choice. The major goal of the company is to
replicate popular products such as those that are offered by Starbucks, MacDonald's to
retain the target market for 20-35 year (Abdullah et al. 2017, p.13). Each of the stores
within the restaurant will provide freshly fried Belgian food, sandwich items and other
innovative product’s provided with homely environment and care.
Owners
Fresin fries are a private organization that will register as a limited organization with
collaborative ownership of Guy- Fry, Sam- sauce and Carl responsible for a cone. All of
them have over 8 years of experience in the fast food industry. Therefore, they will be
employed as the corporate employees of the company.
Milestones
During the period of initial development of the company, the founders will be 4 in
numbers who will be responsible for planning and conduct the development of the brand
for the initial outlet. The initial planning program will take almost 8 months. In addition
to this, the process of refinement will take around 12 months for a period before our
opening in the year 2018.
B. Resources, Facilities and Equipment
To provide service to the diverse customers through the webpage that will be in line with
the corporate operation (Kanyan et al. 2016, p.190). The diversity of the founders of the
company will be cost effective for the future purpose,
C. Marketing Methods
The company will set up a website for marketing its product and increase the visiting of
the shopping mall through the web page (Abdullah et al. 2015, p.502). The company will
post banners on the official website of tourism. In order to create the website,
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communicative Fresin Fries will deliver gift cards and promotional cards through the
internet for helping the customers to print the coupon.
D. Management and Organization
The present plan of the start-up company is to start an accounts section and salary issues
department that will be performed by the in-house employees. In this context, Mr David
will be held responsible for managing the department of sales and development. Mr
Harry will be managing the issues related to the sales department. Later the possible
positions will be increased with the inclusion of marketing, purchasing, control and R &
D assistive team.
E. Ownership Structure
The company will be owned by 4 founders and others who have supported the
development of the business. The 4 founders will share the consolidation of the business
at the suitable period of time
F. Social Responsibility
By planning to provide the customers with quality products and service with a variety of
innovative service the company has committed to maintaining the business ethics. They
have made the secure process to maintain the congeniality of the customers and
employees for maintaining CSR in par with the environmental standards (Mohsin and
Lengler, 2015, p.24).
G. Internal Analysis
The initial employee will be formed of two cashiers and two cooks working on the
premises of the opening hours. These will be considered as the ideal number of an
employee for the food outlet (Hanaysha, 2016, p.310). Later more employees will be
employees to ensure the security of management. The strength of the company will be its
service and products that are better from the competitive market.
Products and/or Services
Fresin Fries will be set up to sell gourmet fried food items with selected choice of sauces.
The company in case of products will be using the concept of Belgian Fries that will be
made up of Potatoes and fried foods. Moreover, the outlet will also provide quality and
friendly customer service to assist the environment with a youthful ambience. The plan is
developed to accomplish a specific location for the initial beginning of the concept
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(Oleynik et al. 2015, p.186). In this context, the major goal of the company is to retain
young customers and encourage them to bring in their family members as well as friends
in the innovative environment of the restaurant
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Market Assessment
A. Examining the General Market
In the Malaysian context, it has been seen that there is a presence of near about 56% of
consumers who are likely to spend their expenses on consuming fast food and rest 15%
that are desirous to spend on another purpose (Hasri et al. 2016, p.306).
There are clear segments in the market that are aimed towards local youngsters and
couple who are willing to visit the restaurants. Most of the youngsters are likely to invest
in fried food in Malaysia.
It is the changing food habit and trends in the market the companies are not able to fulfil.
Customers nowadays prefer healthy food habit to protect health.
According to the survey, almost 80% of the young generation prefers fast food and 90%
prefer fast food for regular consumption (Rani and Suradi, 2017, p.212).
The company has several opportunities to offer innovative ways to provide services and
opportunities to bring innovation to their food items. The popular organization such as
Starbucks, Mac Donald's can be challenging for the companies
Emerging fast food organization and other international organization are growing threats
for the company as suggested by the five forces model.
The healthy food habits are the trends that are relevant for the business. The new
changing trends are the major drivers of change.
Fluctuating policies on tax rates on food items and service are the legal issues that the
companies may face. Policies’ on environmental issues may also pose challenges for the
business.
B. Customer Analysis
The potential customers will be aged in between 18-30 mostly the youngsters who are
enrolled in colleges and schools. For each of the customers, the customer will be selling a
variety of fried food with a sauce of their choice. Family members will be comprised of a
young family with children. The target will be on both males and females along with
income will attract the medium income people and low-income people.
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In order to solve the problem of customer the company service department communicates
with the customer through their website. The company listens to all the problems of the
customers and notes it down to solve quickly (Aftab et al., 2016, p.164).
It is quite difficult to attract customers with growing and changing demand. However, for
satisfying the needs of the customers, the company has decided to create attractive
pictures of Belgium fries to retain customers. For doing so, the company had to invest a
huge amount in the promotional activities.
C. Industry Analysis
In spite of the prolonged impacts of economic Crisis Malaysian food industry
experienced growth over the years with an increase of 4-6% (Rao and Srinivas, 2015,
p.14). Most of the growth was accelerated by cafes and fast food chains whose target was
the young generation. The growth in this industry is driven by the demand of the market
and change in lifestyle (Razak et al. 2015, p.2).
D. Strategic Alternatives
The business requires strategic alternatives so they built up sustainable relationships with
different raw suppliers and partnership vendors. They bolt up alliances with Chinese
companies with V Company and company Y as a strategic alternative in case of downfall
(Wong, 2016, p.368).
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Strategic Implementation
A. Production
How will you produce your product?
At the initial period, one of the outlets will be established inside the New Paragon centre.
This initiative will turn in to a marketing testing area. However, Fresin is also planning to
start another outlet in the nearby shopping malls by attracting customer through fries. By
offering the products the company will provide through the kitchen to ensure
determination towards the products.
The kitchen will allow spreading the aroma of the freshly cooked fries and international
taste into the surrounding environment. The marketing strategy of the company is based
on the providing service in the market (Aftab et al., 2016, p.161).
Competitive advantage
 The innovative dip sauces blended with a regional taste and international taste
into one will be the signature item for the company.
 They will provide enthusiastic and overwhelming employees.
 The company will offer assistive merchandise products that support the
organisation’s development of the brand.
 The fries provided will be made up of 100% freshly chopped potatoes different
from the frozen fries that are usually used by the competitive market.
 They will offer unique packaging that will be positioned at the same level along
with foreign fast food outlets.
Technology
Frisen Fries will be using new types of technology such as Mobile ordering system
attached with GPS tracker to track the progress of the order through mobile phones.
Moreover, they will be using Ipad order kiosks, Tab e order provisions and checkout
system along with biometric systems to ensure the security of the operations (Tan and
Mitra, 2016, p.73).
What growth options will you use to develop the business unit?
 Enterprise Expansion
The outlet will be set up at a location that will vary in size from 40- 60 meters square and
will accommodate the seat for almost 30 guests. The initial location will be bigger than
the end of the range, the location characterizes its innovation and merchandise along with
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other attributes of the brand. The company will furnish the store with modern furniture
addressed towards cleanliness and feeling of opening.
 Replicate
The company’s food products will replicate the products of larger fast-food brands such
as Starbucks and MacDonald’s to compete against their snack food products.
 Integrate
They will integrate Belgium experience of fries with a fusion of local and international
taste. The company aims to provide consistent quality and standard fast food experience
with a value of customers.
 Network
The company directly develops a channel with the other fast food chains in the selected
shopping mall location consisting of Tori Q, Chinese sausage restaurant and bakeries.
Freshly potatoes will be distributed from us with an agreement with company q to
manufacture products.
What is the anticipated timeline?
The anticipated timeline for the accomplishment of the project is approximately a period
of one year. The initial program will take around six months to complete the construction
and planning of the outlet.
B. Resource Needs
In order to effectively organize your business, you need to ensure the resources are
available. Assess those needs here.
a) Human
What skills are needed?
For a resource, it is necessary to have skilled employees who have knowledge
of managing fast food restaurants and people skilled in dealing with cooking
facilities.
How will human resources be acquired?
In the case of human resource, the company will have some staffs at the front
desk to manage the entire restaurant and account operations dealing with sales
issues. Advertisement for recruitment will be provided by the HR managers in
their official website and in the newspaper as well. Through the advertisement
provided candidates with excellent skills and proper attitude will be selected.
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They will be selected on the basis of their merits in sales and customer delaying
ability who will be able to interact with all kinds of consumers.
b) Financial
What level of financial resources will be needed?
Online advertisement financial resources using web business platform that has
details on the price. Flyers will be disseminated across the mall and their
surrounding area provided with discount rates that will be given to couples and
family members.
c) Physical
What type, quantity and quality of physical resources will be required?
1800 coloured brochures will be disseminated across the location of the shopping mall
and the facilitative area such as in-house movie halls, eateries'. A half page magazine will
be published for providing a review in Malaysia that will promote the awareness of the
market.
C. Sourcing/Procurement Strategy
The food products will be provided at an affordable price with a high quality of products
for satisfying the customers. Moreover, the products will be offered with the combination
of existing offers and discounts on the food products.
Local marketing campaigns and website sources will promote the setup of the venue to
create awareness amongst the local and other customers.
D. Marketing Strategy
Fresin Fries will be using advertising and program of sales to retain the number of
customers. In this content, they will be offering more than 1000 brochures in different
areas to attract customers. Fresh potatoes will be offered on a regular basis that will
directly come from the US under the agreement of other company (Ooi and Yazdanifard,
2014, p.273).
Each of the openings of the company will have an identical marketing program allocated
in different locations. The company will use tray toppers to represent the concept of
Fresin fries.
a) Hedging, forward pricing, options
There will different pricing options for each of the food items that will be affordable in
price.
b) Contracting
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They have built a contract with many company partners to develop strategic alliances.
c) Insurance
The company have prepares an investment insurance in case of risk that can be used for
the future purpose.
E. Performance Standards
A collection of social media and local marketing programs will be arranged to use each
of location to promote the newly opened outlet. It is the manager and supervisory
members who will be responsible for measuring the performance of the employees and
industry benchmarks to evaluate the performance.
One of the most essential systems that will be set up within the restaurant is the customer
database process and POS process to provide the system such as I connect and e-food
service. The system will help to manage the management consumer database and also to
report customers to change in pattern season to season along with payment of the
employees.
Moreover, these processes will help in booking the orders and in tracking the revenue of
the fast food restaurant. In this context of performance standards, quality reportig of
performance and shared program of performance improvement will help to enhance the
performance of the employees.
It is the human resource department manager who is responsible for managing the
salaries of the employees.
Guy fry and Sam sauce who is responsible for the management food have over 10 years
of experience in the food industry.
Sam has an MBA degree from Foreign University who will be managing the
entrepreneurial project in the store in Singapore.
Guy fry has a degree in Graphic designing so he will be responsible for managing the
designing of the product and development of the brand.
Carl has a BS degree specializing in Management and IT. So, he will be specifically
responsible for handling the performance of the employees.
In order to develop the company the management strategy of the company needs to be
parallel to the corporate colour in the webserver. Therefore, more employees from IT
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domain and website development are required to build a cost effective process of web
development.
Mr. David Lu will be responsible for the salaries and accounting development of business
in the company, assisted by Mr. Harry who will be responsible for acting as the HR
department of the company. There will be probable position that might be added in
sections of marketing, purchasing, control and other administrative department. These are
key employees who will be responsible for managing business of the company.
Since it is a small organization, the entire support and advice department will consist of
all the four individuals who will be responsible for solving queries and making major
decision and will also be supervising all the activities of business.
The current revenue of the company is low for investing for all the employees. Later the
company will be expanding in to various locations with increase in number of
administrative site managers and other personnel.
Employee investment
Year 1 Year 2 Year 3
Site supervisors $0 $55,000 $86,000
Accountants $20,000 $75,000 $135,000
Cook $35,000 $62,000 $120,000
Equipment handlers $30,000 $50,000 $85,000
No of people 10 23 35
Total wages $85,000 $250,000 $450,000
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Figure 1: Organisational structure of Frisen Fries
Financial Plan
A. Financial Projections
Presently the company will be run by the original founders who will be responsible for
$200,500 for the limited amount of share of 30%. This amount will eventually cover the
requirements of the start-up and offer the business with cash cushion to use the expansion
over the period of initial three years.
Start-up expenditure - $65,500
Assets and funds- $ 45,000
Total required funds: $128,800
Assets
Non-pricing assets from the beginning- $23,000
Cash necessities- $45,000
Extra cash acquired- $652,000
Cash balance- $732,250
Net total- $771,300
Accountabilities and capital
Accountabilities
David Lu
(Business
Development
Manager)
2 Accountants 2 Cooks 2 Equipment
Handlers
Harry Hip
(Human Resource)
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Present lending -$0
Long-term lending- $0
Accounts to be paid -$0
Additional - $0
Capital investment
Investment
Yam -$250,000
Martin -$250,000
David - $250,000
Sagita - $250,000
Additional investment -$0
Total -125, 0000
Loss estimated -$60,000
Total -$721,000
Total rents- $725,000
Total funds- $600,000
Breakeven evaluation
The breakeven evaluation points out that the more than 9,700 unit of sales in needed for
each month of break even. It is estimated that there will be no profits till the end of three
years.
Analysis
Monthly break-even- 9,500
Monthly revenue- $35,000
Estimations:
Average unit revenue -$3.35
Average cost of variable- $0.67
Estimated fixed cost - $25,800
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Figure 1: Break-even analysis
(Source: Tan and Mitra, 2016, p.72)
B. Contingency Plan
As per the estimation, Fresin Fries will have to run its business at loss during the initial
years thereby using some of the cash reserved that have been investment during the initial
period. With the increase in sales, there will be an expansion if outlets to spread brand
awareness (Tan and Mitra, 2016, p.72). The growth of visibility will help the company to
take up less expensive location thereby managing operation of the flagship.
In case if the decided plan is not followed the company has a reserved investment for the
entire employee to ensure the health and protection of all the staffs by reducing down the
interruptions towards the business capability. The company needs to have a planned
process of contingency by monitoring the sales and finances to reduce the financial loss.
In case if an employee is injured, the workplace will have a workplace first aid kits and
source of emergency from the retailed store and successful plan for data backup. These
will help the company in continuing the business and help the employees in case of plan
failure or disaster.
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