MBA Business Plan: Pizza Guru Inc. - Kuala Lumpur Pizza Startup Plan

This business plan details the launch of Pizza Guru Inc., a medium-sized pizza business in Kuala Lumpur, Malaysia, aiming to secure funding from investors. The company will focus on providing high-quality New York-style pizza and excellent customer service to residents, retail businesses, and corporate clients. The plan includes a market analysis of Kuala Lumpur's growing population and tourism sector, a competitor analysis identifying key players like Proof Pizza + Wine and Mikey’s Original New York Pizza, and a market segmentation strategy targeting individuals, retail, and corporate customers. The company's mission is to offer the best quality pizza with core values of performance excellence, teamwork, and integrity, differentiating itself through delivery services and continuous market research to ensure customer satisfaction. The plan also outlines the products and services offered, including a variety of pizzas, sauces, and beverages.

This business plan will show how to start and run a successful medium-sized business, engaged in preparing and supplying high-quality pizza within Kuala Lumpur city. The aim of
the business plan is to solicit funds from investors who might be willing to finance a potential business.
Pizza Guru Inc. is a privately owned company that interested in creating and proving a variety of delicious pizza to the citizens of Malaysia and specifically within the city of Kuala
Lumpur. The company will ensure that its customers get high-quality products and customer satisfaction will be its main goal.
Kuala Lumpur is a fast growing town in the country with an estimated population of about1.808 million people as per 2017 statistics. The city is a mix of Malays, Chinese and
Indians with diverse such as Eurasians, Kedazans, Iban and Indigenous people from East Malaysia and Peninsular Malaysia. The fast-growing population of the city will provide a
ready market for our products.
Objective
Executive Summary
To attract a good number of regular customers in our first year in business, at least 70
customers per day.
To ensure that our customers are provided with quality pizza services at an affordable price.
To generate positive cash flows from operations.

Pizza Guru Inc. mission will be to provide the best quality pizza to residents of Kuala Lumpur city and to ensure that customers are always satisfied with both our products and service.
Our vision is to be the providers of the best quality pizza in the Kuala Lumpur city and its environs.
Our company will be governed by core values that will put together to ensure that both our mission and vision are achieved. Our core values will include performance excellence, teamwork, and integrity. These
values will also be the distinguishing factor of our Pizza Guru from our competitors.
Keys to Success
Our keys to success are:
2.0 Background Information
Pizza Guru Inc. is a privately owned company which will be located within the city of Kuala Lumpur in Malaysia. The company will employ qualified and experienced management team and other staff to ensure
that quality is not compromised. The entire team will be dedicated to giving the best pizza in the town and to ensure that delivery services are provided where needed. There will be proper reporting channels to
ensure that there is no communication break down at any given time.
Mission and Vision
 Quality product and service
 Strategic business location
 Competent and dedicated management
 Our desire for continuous business growth

2.1 Industry Analysis
Due to the increasing competition and the growing consumer demand, the food industry has constantly remained dynamic. Food manufacturers have to reinvent themselves in order to continue
satisfying their ever-growing consumer demand. Food markets have been on a continuous change which is driven by consumer preferences, changes in technology and the prevailing policies and
business environments.
Statistics show that there are more than 2,000 establishments in Malaysia which are involved in the food processing industry. This is believed to have been brought by the ever-growing consumer
demand for processed food not only in Malaysia but in the entire globe. The food industry accounts for about one-tenth of Malaysian domestic manufacturing output.
The government of Malaysia has decided to chip in the industry to provide its integrated support. The government has laid several strategies to assist in the development of the small scale food
industries in Malaysia. The government, through its agencies, offers support to small scale food industries in terms of technical services, training and extension services, and financial assistance and
advisory and consultancy services.
SMEs should realize that the food economy is growing towards a new world of technology and knowledge base. All SMEs should, therefore, embrace technology in their operations to ensure that
they provide high-quality products and which are reliable and consistent to the consumer demands. Owners of SMEs need to take up the challenge and upgrade their enterprises to include modern
business intelligence and knowledge management solutions

One of the biggest challenges faced by the entire country is lack of enough supply for raw materials. The country is currently in a crossroad of whether to provide the raw materials indigenously or
source it from overseas. In some areas, raw materials are imported hence affecting the production flow and the local market setup. The food industry, and especially in Malaysia calls for firms
which are quick to respond to market changes and which can make adjustments at any stage of production to keep the pace of the growing consumer demand. SMEs are therefore advised to
embrace organizational structures which are flexible and thus can accommodate changes any time change becomes inevitable.
2.2 Competitor Analysis
Kuala Lumpur is a big city with a lot of pizza restaurants which have been in operation for years. However, this does not scare us from venturing into the market. We have carried enough market
research and we fully understand the dynamics of completion in the Malaysian food industry. Despite the existence of several pizza restaurants in the city, the demand for fast foods especially pizza
continues to overcome the supply.
Examples of our main competitors are Proof Pizza + Wine, The World is flat @ The Bee, Mikey’s Original New York Pizza, L Risata Damansara, and Skippys Pizza. These are the established pizza
restaurants in the city. Despite the fact that they are our competitors, we expect to learn a lot from them and they will also serve as our role models. Proof Pizza+ wine is well known for its simple
but well thought of pizza. The company has tried to satisfy its customers and that remains the sole reason why long queues are experienced in their restaurants. This tells us, even before we take off,
that quality and customer satisfaction is the key in this industry. The World is flat @ The Bee is the other dominant company in this industry. They are experts in making American-style pizza. They
are known for the art of mixing just the right ingredients and the right quantities to produce wonderful pizza of different flavors.
Mikey’s Original New York Pizza follows closely with their big, bold and beautiful pizza. La Risata Damansara and Skippys Pizza have been in the market for quite some time and they have tried
in maintaining consistency with their quality and prices. Skippys Pizza specializes mostly with pork pizza and they seem to have mastered their areas of strength in the market.

Since we are aware of our competitors' strengths and weaknesses, we will learn from their strengths and capitalize on their weaknesses. We are going to ensure that we turn their weaknesses into
our strengths. One of their weaknesses is that all these companies have not been able to reach out to all potential customers. Our business will ensure that it provides delivery services to the
customers' places of residents. We will deliver our pizza to customers' workplaces and other convenient places. We are sure that our customers will find it convenient with our delivery services and
will see it as a cheap means since they will not need to travel to the restaurants as it is the case with the other pizza companies.
3.0 Market Analysis and Research
Kuala Lumpur is a growing city with a population of around 1.808 million people living in the city. A higher percentage of the population is made up of
people between the age of 15 to 59 years in which most of them are the working class with an average monthly income of RM 64,638 and thus their
possess high purchasing power. The main activities in the city are infrastructure and building. The city has a set of recreational and entertainment facilities.
This creates an opportunity for us to supply pizza to entertainment events.
Kuala Lumpur is the most industrialized in the country and is economically growing faster than expected. It vies with the cities such as Singapore, Bangkok,
Manila, and Hong Kong for a primary position in the Asia Pacific Region. The city is almost realizing its vision to become a World-Class city. The city is a
tourism center and thus offering a good market for fast food services. Kuala Lumpur is fast becoming the shopping center for most of the surrounding
countries. Its diverse culture and entertainment have enabled the city to experience frequent visitors from the neighboring countries and also local tourist
from the country.

Target customers % composition of the targeted market
Individual customers 75%
Retail business customers 15%
Corporate business customers 10%
Pizza Guru Inc. is expecting to take advantage of the growing business opportunities in the city to fast establish its operations and grow tremendously within the first year of operation. The
company is targeting around 75% of its customers to be individuals, 15% from retail businesses and 10% from corporate businesses. It is worth noting that most of the corporate business customers
and retail business will be making large orders for their staff and during business events. In such, despite their small percentage in our market segmentation, they may be the ones to give more sales
volume.
3.1 Market Segmentation
As mentioned earlier, our market segmentation will comprise of three categories. These are the individuals who will be ordering pizza for personal and family consumption, retail and corporate
business customers who may order pizzas for their staff or during special business events. The segmentation can be presented in a table as below.

Pizza Guru Inc. will target middle-class individuals working within Kuala Lumpur city along with the retail and corporate businesses operating in the city. Our survey indicates that most people in
the city have no time to sit and have meals in the restaurants and thus they will prefer takeaway fast foods or better still when it is delivered to their places of work. Most of the retail and corporate
businesses hold events regularly and especially the end of quarter or year parties. In such events, they tend to treat their employees with goodies and pizza is one of their best choices during such
events.
The company will strive to maintain its acquired customers through meeting customers demand and ensuring that customer satisfaction remains our sole purpose in the business. The company will
also do its best to create and maintain a good product reputation. This will be achieved by providing high-quality pizza at an affordable price. Market research will remain a continuous exercise
especially during the first year of operation to ensure that we monitor customer satisfaction and for us to be able to address all the arising complaints and compliments.
3.2 Target Market

4.0 Products and Services
Pizza Guru Inc. will offer a wide variety of New York-style pizza. Together with this type of pizza, the company will also offer other related products such as sauces, sodas and fruit juices. Our market research indicates
that most of those who buy pizza also buy a soft drink and thus we want our customers to get all that they need in one roof.
According to the research done, we found out that New York-style pizza originated in Manhattan, NY in the early 1900s. This type of pizza is said to closely resemble that of Naples, Italy. It has thin, wide and foldable
slices. Our pizza will have the toppings of tomato juice and mozzarella cheese. We may also opt to use additional toppings to be placed on the cheese part of the pizza. Our pizza will be hand-tossed, light-sauced and
the slices will often be eaten folded in half.
Pizza Guru Inc. will create and sell pizza as a slice or as a whole. The pizza will be served with red chili pepper, oregano, and parmesan cheese or garlic powder. These will be made available to the customers who want
to put additional toppings to the pizza other than the one originally prepared with it. Our pizza will be served over the counter or can be delivered to the customer’s place. However, deliveries to customers’ places will
be done mostly to those customers who make large orders.

4.1 Business Model
Pizza Guru Inc. will be a takeaway restaurant as opposed to most of our competitors' restaurants where customers sit and eat from the restaurant. In our case, customers will order pizza from the
counter or use their phone. Within the first year of operation, Pizza Guru will have developed an online platform where customers can place orders and monitor the whole delivery process
online.
Our company will employ high technology in producing and preserving pizza to ensure that there is no wastage during the process of preparation and the entire handling of the product. We will
use modern kitchen equipment and refrigerating machines. Since the restaurant will be a take-out restaurant only, we will not have the Wait-staff and this will help us to minimize the operation
cost. The delivery process will be well coordinated and high standards of hygiene will also be kept.
4.1.1 Competitive Landscape
As discussed earlier, in Kuala Lumpur there are several pizza restaurants. However, they have not been able to meet the growing demand for pizza in the city. Kuala Lumpur city is the capital
city of Malaysia and it has a large population which has been always underserved by the existing pizza restaurants. Despite the fact that the existing pizza restaurants have already established
their market, Pizza Guru Inc. will penetrate in the market very fast because of its high-quality pizza and the friendly prices that the company will offer to its customers. Our competitors'
weaknesses are going to be our strength and we have analyzed their strengths and weaknesses as indicated in the table below.

Competitors Their strengths Their weaknesses
Proof Pizza + wine Simple and well thought of pizza, well pleasing and satisfying
to customers.
High prices
The World is flat @ The Bee Good toppings ingredients High prices
Mikey's Original New York pizza Big, bold and beautiful pizza Lack of delivery services
La Risata Damansara Long time in the market High prices
Skippy's Pizza High specialization with pork pizza Lack of wide variety of products.
5.0 Strategic Manpower Plan
Pizza Guru Inc. is a startup company and it looks to minimize the operating cost as low as possible. As a result, we will employ only five staff but who are multi-skilled such that they can shift from
one task to another. We will have staff in the following departments:
 Manager
 Cook
 One kitchen staff
 Two servers
Our company recognizes the value of the human resource and it will offer a good package of incentives to the well-dedicated staff. We will put in place performance appraisals based on the
commitment to work and the quality of service. The food industry is well developed in Kuala Lumpur city and we, therefore, expect to get highly qualified and experienced employees from within
the city. The restaurant will be open from Monday to Saturday and it will embrace a forty hours working week. The working time will be allocated as shown below:

Day Begin Time (AM)
End Time (PM) Hours Worked
Friday 10:00 4:00 6 hours
Saturday 10:00 5:00 7 hours
Sunday OFF OFF none
Monday 10:00 4:00 6 hours
Tuesday 10:00 5:00 7 hours
Wednesday 10:00 5:00 7 hours
Thursday 10:00 5:00 7 hours
Totals 40 hours
The sole goal for Pizza Guru Inc. is to meet and exceed our customers’ needs. This should also be the goal for our employees. To best achieve this, both the company and employees should
keep updated to the latest technological development in the industry. The company will develop a continuous improvement strategy to ensure that employees are always up to date with the
latest technology and processes.
To start a business is one thing, but making it survive the competitive environment is totally another thing. Pizza Guru Inc. will ensure that we always remain at the top of what our customers
need. We will contact regular market surveys to ensure that we always meet and exceed our customers’ expectations.
The company will always embrace the best technology and personnel. We will ensure that our staff possesses the necessary skills and experience for them to provide quality services to our
customers. Pizza Guru Inc. will employ multi-skilled personnel who are able to handle a multiple of tasks. This will help the company to reduce the operating cost and be able to price the
products at an affordable price in order to remain competitive in the market.
6.0 Sustaining the Business

7.0 Financial Projections
The financial projections for Pizza Guru Inc. are based on the market research since the company is a startup and there are no historical financial data available for the company. As mentioned
earlier, the aim of this business plan is to seek funding from willing investors. Pizza Guru Inc. is depending on investors funding for its startup and operational capital. This section of financial
projections will give the investors a picture of the company's financial base.
7.1 Projected Profit & Loss
Revenue $655,154 $756,703
Direct Costs $357,714 $405,214
Gross Margin $297,440 $351,488
Gross Margin % 45.40% 46.45%
Operating Expenses
Salary $1o8,600 $114,030
Employee Related Expenses $8,000 $8,500
Total Operating Expenses $116,600 $122,530
Operating Income $180,840 $228,958
Interest Incurred $6,810 $6,120
Depreciation and Amortization $9,996 $9,996
Income Taxes $26,442 $40,036
Total Expenses $43,248 $56,152
Net Profit $137,592 $172,806

7.2 Projected Balance Sheet
Cash $60,961 $158,416
Accounts Receivable $9,733 $11,241
Inventory $15,857 $17,963
Other Current Assets $9,000 $9,000
Total Current Assets $95,551 $196,620
Long-Term Assets $80,000 $80,000
Accumulated Depreciation $9,996 $19,992
Total Long-Term Assets $70,004 $60,008
Total Assets $165,555 $256,628
Accounts Payable $13,749 $44,496
Income Taxes Payable $0 $0
Sales Taxes Payable $0
$0
Short-Term Debt $0 $0
Prepaid Revenue $0 $0
Total Current Liabilities $13,749 $44,496
Long-Term Debt $54,000 $48,000
Total Liabilities $67,749 $92,496
Paid-in Capital $101,500 $101,500
Retained Earnings $(65,392) $(30,785)
Earnings $61,698 $93,418
Total Owner's Equity $97,806 $164,133
Total Liabilities & Equity $165,555 $256,628
FY2019 FY2020

Net Cash Flow from Operations
Net Profit $61,698 $93,418
Depreciation and Amortization $9,996 $9,996
Change in Accounts Receivable $0 $(1,508)
Change in Inventory $0 $(2,106)
Change in Accounts Payable $0 $30,747
Change in Income Tax Payable $0 $0
FY2019 FY 2020
7.3 Projected Cash Flow Statement

Cash flow cont.
Change in Sales Tax Payable $0 $0
Change in Prepaid Revenue $0 $0
Net Cash Flow from Operations $71,694 $130,547
Investing & Financing
Assets Purchased or Sold $0 $0
Investments Received $0 $0

Cash flow cont.
Change in Long-Term Debt $0 $(6,000)
Change in Short-Term Debt $0 $0
Dividends & Distributions $0 $0
Net Cash Flow from Investing & Financing
$0
$(6,000)
Cash at Beginning of Period $0
$71,694
Net Change in Cash $71,694
$124,547
Cash at End of Period $71,694
$196,241