Project Report

Project supervisor:

MR. FAROOQ JAMAL

Presented by

Mehvish Sultan AhsanZaffer Sajjidali M.Hussnan Tariq Mubeenakhtar

Department of Management Sciences National Textile University Shiekhupura Road, Faisalabad.

1 In the name of Allah, The most Beneficent, the most Gracious.

“By Time, man is in loss,

Except those who believe,

And do good deeds and

Exhaust on Earth each other

To truth and patience.”

2 (Al-Asr)

ACKNOWLEDGEMENT

We are thankful to ALLAH almighty, the most beneficent and merciful who enabled us to complete our project.

Mr. FAROOQ JAMAL has been the ideal project supervisor. His advice, insightful, criticisms, and patient encouragement enabled us to come our ideas into reality.

We are especially thankful to our parents whose prayers were in incessant and enabled us to reach this stage, and who assisted us financially to achieve the objectives.

3 Contents

4 Riwayat

Near commercial area, Kohinor city jaranwala road, Faisalabad. For booking and order:

Call # 041-8754686 041-8754685

 Or you can visit us at

facebook/ Riwayatfoodz [email protected], [email protected] order booking and for further details.

5 Executive summary:

Riwayat is a traditional restaurant that will attract those individuals who are ethnocentric and like their Pakistani tradition and culture, enjoy and like to eat traditional food.Riwayatmake them to eat delicious food from all provinces with best cultural environment at suitable price. Our purpose is to unite the whole nationunder one roof. We found (through market survey) that most of the people love to find a number of varieties in their food under one place and like to eat their traditional foods. So here, Riwayat has competitive edge by providing all traditional dishes to their customers. This is the uniqueness, that our entrepreneurial team has members with different provinces of the country that help us to better understand the culture and tradition over there.The return time period for investment in this enterprise is around one year.

6 Chapter : 1 Introduction

1.1Company overview:

Riwayat is located in some of the most commercial destination of Faisalabad. Riwayatexperience is modified to be a unique and unforgettable experience. Riwayatinfrastructure is grand and beautiful from inside as well as outside. Reception staff and waiters would treat you very well. Tastefully decorated hall are excellent with facilities and clean wash room. Riwayat has its own exclusive parking space.You would find flower lawn outside along with colorful fountains. So if you want comfortable environment and vast varieties of food from all over the Pakistan in Faisalabad then Riwayat is the right choice! Riwayat invites you with perfect accommodations and signature service. At Riwayat you'll find the team of finest and skillful people for providing best services to the customers. Our goal is to create buildings of outstanding ethnic design offering the standards of services and providing management and our staff with an environment which enables all of us to deliver operating standards beyond the level of our guests’ expectations. We improve appreciation of our cultural traditions that can help protect the environment and refresh and sustain these traditions.

1.2 Nature of business

Our business is at the start-up phase and it’s a partnership. This enterprise deals with providing a place where people can enjoy having food in particular and be entertained as well. Our target market is the elite class which consists of middle upper class and upper class of the population. The concept of attracting and satisfying culture lovers differentiates us from our competitors. Initially, the scope is to introduce the food with an

7 innovative cultural environment, but in future, the business is likely to expand and generate more facilities for their customers.

1.3 Size of Business

Initially, we’ll start with a restaurant at Faisalabad only. In future, Lahore will be our next target market and further our plans are to capture the market of other cities as well. Our target market is elite class, business class including people from all age groups.

Partnership deed:

An oral partnership concern between these following partners (which are shown under) for the business starting newly in 2014. A written partnership deed has been executed between the said

Partners:

1. Mehvish SultanD/ORiffat Sultan NIC No (33102-2218960-4) Address (House#E-2 manawalahFsd)

2. AhsanZafferS/O NIC No (32403-4234416-7) Address(Canal road fazilpur district Rajunpur)

3.Sajjid AliS/O NIC No (35404-6665766-3) Address (House#6 ArrianwalaSheikhupura)

4. Hafiz Muhammad Husnain TariqS/O NIC No (31102-4122463-1) Address (House#16 gulistan colony Chistian)

5.MubeenAkhterS/O NIC No (35501-0335017-7) Address (village DhorKot district Nankana)

Whereas the partners above named and described have agreed form and constitute a business to do business in partnership under the terms and conditions settled hereunder.

8 And whereas the partners above named desire that the term so settled be reduce into writing to create legal evidence and keep the relations inters the partners quite clear and out of doubt hence this partnership deed witnessed as under:

1. That the name of the business shall Riwayat.

2. That the business shall be start from Faisalabad and the branches may be opened and or closed as and when necessary.

3. That the Nature of the business is to provide traditional food and environment. The nature of business may be added when deemed fit.

4. That the capital of partners shall as per books of accounts.

5. That the irrespective of capital investments and working ability the profit and loss of the business shall be divided equally.

6. That the any one of partner can operate their account.

7. That the regular account shall maintained which shall be open inspection to all the partners’ at all reasonable hours’ capital

8. That the partnership is at will and may be dissolved at any time by giving one month notice by any partner.

9. That in case of dispute or difference of opinion the name shall be decided mutually or through arbitration.

10. That the business can avail and loan facility form any scheduled bank as and when required and all the partners are equally liable to repay.

IN WITNESS WHERE THE PARTNERS HAVE SET THEIR HANDS ON THIS 15.9.2004 IN THE PRESENCE OF THE WITNESSES

9 Executants

WITNESSES PARTNERS

Sig.______Sig.______1.Name ( ) 1.Name (Mehvish Sultan ) NIC() NIC (33102-2218960-4) Adders ( ) Address (House#E-2 manawalahFsd)

Sig.______Sig.______2.Name ( ) 2.Name (AhsanZaffer ) NIC ( ) NIC (32403-4234416-7) Address ( ) Address (Canal road fazilpur district Rajunpur)

Sig.______Sig.______3.Name ( ) 3.Name (Sajjid Ali ) NIC ( ) NIC (35404-6665766-3) Address ( ) Address(House#6 ArrianwalaSheikhupura) Sig.______4.Name (M.Hussnain Tariq ) NIC(31102-4122463-1) Address (House#16 gulistan colony Chistian) Sig.______5.Name (MubeenAkhter ) NIC (35501-0335017-7) Address(village DhorKot district Nankana)

10 Chapter:2

2.1 Product line

Chapter:3

3. Industrial analysis

3.1 Trend in Pakistan

Pakistan is a country with an extremely rich food culture and a country where its people are famous for their love for food. The country thus offers a vast variety of its popular dishes when it comes to cuisine. In recent times, the style of food in Pakistan has achieved great popularity. People these days not only pay attention to what food is served to them, but also how it is served.

Therefore, Riwayat, the restaurant venture has been started while keeping in mind the great market segment in the country for food and culture lovers. Pakistan with its different regions and provinces has different cultures and tradition. People love to eat different varieties of food having the original taste of each culture.

3.2 Future Outlook:

The future plans of the business include:

 To expand the business nationwide  To conduct the different events in the various cities of Pakistan that will promote our cultures.

11 CHAPTER: 04

4.1 Marketing plan:

4.11Problem Identification

In Pakistan we have different cultures and each has its own specialties with respect to different aspects. Unfortunately, other different cultures (like Indian and other western) overcome to our cultures weather it is living, wearing and food styles. There is a need to explore our culture and promote our traditions nationwide to get people familiar that our traditional dresses foods and environment is not less than anyone else. So there must a place where people can see the whole package of cultures and traditions of all the provinces of Pakistan.

4.12 Solution of problem

We (Riwayat) identify the need and think a solution of this problem that we will start a restaurant that reflects our traditions and cultures. To promote our cultureswe start a restaurant that unites the whole nation under one roof. That will provide different varieties of traditional foods with original taste and best cultural environment to meet and exceed the dynamic expectation of our people.

4.2 Situational Analysis for ‘Riwayat”

4.21 POLITICAL:

Political instability is one of the big problems from the time when Pakistan came into being. It is the main reason capitalists are hesitating in investing new ventures. The most pressing question in every one's mind these days, keeping in view the reverse progress of this government is: what is next?

12 In the tenure of previous president of Pakistan Asif Ali Zardari the economic and political environment badly affected. The popular view is that what happened next is a complete rule over by mismanagement and an absolute domination of corruption and negligence of rules and court. In this situation to establish a new traditional restaurant it will be a challenge for us to establish a brand. There are some laws imposed by the current government such as restaurants and marriage halls should be closed up to the 11 P.M. Riwayatis following all government rules and regulations, the license, employee’s compensation etc. We are following all the ethical responsibilities, which the government has directed for running business in Pakistan.

4.22 ECONOMIC:

The SBP said real GDP growth rate in fiscal 2014 is likely to remain between 3%-4%. In contrast, the annual plan for fiscal 2014 sets a GDP growth rate target of 4.4%. Core inflation estimated at 9.5% in FY 2010-11. The Real GDP was estimated to grow at 2.4% on the back of strong performance of services sector. The government has successfully achieved the inflation rate target during the previous financial year (July 2012 to June 2013), as it remained at 7.36 percent during the period under review against the target of 9.5 percent. Monthly inflation rises to 1.09%. The unemployment rate in Pakistan for the year 2013-14 as per the report of the Bureau of statistics is 6.0.This new venture helps to reduce unemployment to its own extent, GOVT also focusing on service industry to contribute with high percentage in GDP. The services sector grew by 4.1% against the target of 4.7%. Sales taxes are subjected to 17% GST. Riwayat is economically and financially strong enough so it can easily run good services. The economic condition of the country effect the company also in terms of procedures used for services.Riwayat start its business by cater a niche market of Faisalabad (who are ethnocentric) whereas a major chunk of Pakistani population is not our target market now but it can be after successful response from Faisalabad.

13 4.23 SOCIAL:

Pakistan is an Islamic country the demand of people should be meet by following Islamic factors. Pakistan is a country where culture changes after every 100 km. Increasing globalization has amplified the influence of "Western culture" in Pakistan. Population growth rate of Pakistan is 1.573%. People are rigid about their cultural values and like to enjoy sitting where cultures meet and eat their traditional foods.These factors will give us advantage to make our business successful. Our service has a positive impact on society of all upper middle class and lower upper class people in our country. Our service is unique in terms of quality, décor arrangements and card publishing service that we offer and so on.

4.24TECHNOLOGICAL:

Every aspect of life is largely dependent on technology. Technological impact on services industry is great. Internet, form filling advertisement, and concept of self service is possible with the help of technology.Technological innovations help great in introducing new businesses and making their services more standardized

We (riwayat) know the importance of having modern technology in business. Riwayatis using technologies as:

 3D innovation that increased A/V quality.  For cooking and preservations.  For faster fulfillment of orders to serve well.  Specialized machine for credit card for bill  Order processing system.  Use social media too for advertisement.  Customer databases.  Web page for customer’s awareness and feedbacks.  Sound and graphics (High Resolution LCDs, music system)

14 With the passage of time, Event studio needs a lot of modern and advanced procedure to improve our cooking standard and for preservation. The adoption of advanced and effective procedures for services is always the priority of Riwayat.

4.3 SWOT ANALYSIS

4.31 STRENGTHS:

 Skilled and knowledge force.  Cultural understanding.  Cooperative environment among all the owners.  Efficient management to deliver noticeably superior services.  Specialized designers and qualified Manager are hired.  Value based pricing strategies.  Provide all traditional foods under one premises  Ever looking for changing customer’s preferences.  Keep history records of customers who avail the facilities i.e customer linking strategies.  Riwayat bears the great advantage on giving quality traditional taste.  Riwayat has advantage of having a team from different provinces that help to better understand our cultures and traditions. 4.32 WEAKNESSES:

 Currently limited to one city.  Number of detailed activities required highly sophisticated level of management.  Lack of experience.  Lack of reliable data and information

4.33OPPORTUNITIES:

 Giving a complete package of all traditional dishes with neat cultural environment will help to establish our brand.  Growing fast life, people are now very busy to visit and enjoy all cultures.

15  We intend to diversify the services further in near future.  It will be status symbol for people residing in Faisalabad.  To cash the strong trade name.

4.34 THREATS:

 Political instability.  New venture threat.  Hesitation among people.  Environmental uncertainty.  Economies of scale or break-even point achievement.  Potential entrants.  Easy availability of traditional services in the market.  Competition is expected in future.  Downward pressure of pricing due to expected competition in future. 4.4 Competitors Analysis Theme of our restaurant makes it one of its kinds. Generally the competitors of Riwayat,thus include all the restaurants located in the area of Faisalabad which are serving good quality food to its customers but specifically our competitor is Al-Nakhal. Other competitors are:

 Silver spoon  Sub way  Sariyas Riwayatplans to build a successful business by serving excellent food accompanied by excellent service, at reasonable prices, in a clean, well-maintained facility. Therefore, careful attention is paid to the following in this regard,

 Customer Service  Administration  Food Quality  Environment  Management Our unique services will give us a competitive edge over our competitors. We are coming with the aim of giving a tough time to our competitors and making them believe that we

16 have the stamina and we can do what we think to do. Dreams are meant to be achieved and we are a group of highly motivated individuals who want to be able to represent Pakistan at an international level.

Thus keeping in mind the competitionRiwayat quality standards ensure that customers remain loyal and visit the restaurant again and again. Competitions in the industry are fierce, and when a customer has just one ordinary experience they may never return. Since an enormous effort is made to attract customers to Riwayat, we simply can't afford to disappoint even one visitor. Chapter: 05 Marketing strategies

5.1Market segmentation:

The market segmentation (dividing a market into meaningful, relatively similar, identifiable segments or groups) is the first step which form the foundation of any successful business therefore it is necessary for an entrepreneur to segments its target market after through research and study of his target customer behavior in order to achieve his organization goal.Riwayat has adopted the strategy of niche marketing.

Market segmentation has been identified in the following criteria:

GEOGRAPHIC SEGMENTATION:

 World region South Asia  Country region Pakistan  City Faisalabad  Location Kohinor city main Jaranwala road  Climate 4 seasons

17  Market size The populations of Faisalabad have divided into middle and upper class Demographic Segmentation:

 Age 5-65+  Gender Both male and female  Family size All  Family life cycle All  Family income  Occupation Doesn’t matter  Education Doesn’t matter  RaceAsian  Nationality Pakistani

Psychographic Segmentation:

 Social class Higher middle and lower upper class  Life style Achievers and Strivers  Personality Ambitious (ethnocentric)

5.2 Behavioral Factors:

 Occasion: Regular  Benefits: Taste, Purity, Health, Affordable.  User Status: First Time Users  Readiness Stage: Aware  Attitude towards Product: Indifferent 5.2Target Market:

18 The target market of “Riwayat” includes higher middle class and lower upper class (elide class) people who are ambitious and ethnocentric. Target market has been decided after market segmentation.

5.3Positioning

A product position is the way the product is defined by consumers on important attributes-the place the product occupies in consumer’s minds. To simplify the buying process, consumers organize products and companies into categories and position them in their minds.

Positioning Statement: To all the tradition and food lovers who loved to have new taste and healthy food.Riwayat gives a new concept of cultural theme that makes a difference in market as compared to other typical restaurants.

Riwayat has been positioned as a unique service for those busy individuals who belong to the rich families of middle and lower upper class.Riwayatwill plan a position that will give it the greatest advantages in the selected target markets and it will design marketing mixes to create these positions.

5.4 Differential Advantage

 A Unique Idea: Idea of having all cultural foods under one roof.  Outstanding Services: We offer unparalleled services that people will definitely appreciate.  Exceptional Quality: We will not compromise on quality of service. Customer satisfaction is our success. The quality of food and preservation methods are of best quality.

19  Team: Team is the strength of any business. This is our advantage that our team includes the members from different provinces that help us to better understand our cultures.  Social media networks:We have our own Facebook page named as Riwayatfoodz Web sites as [email protected], [email protected] have all the information of detailed services we are providing. 5.6 Production Plan

5.61 Physical Plant:

Our restaurant will be constructed on a land of area 1 Kanal in the commercial are of Faisalabad. We plan to decorate our restaurant and construct it in a manner that leads clients to the world of illusion and make them feel that they are sitting in a pure cultural environment. Infrastructure will be designed appropriately. Floor would be of greenish and white tiles that will give a look national flags color. The Main sitting area will be designed appropriately as well.

5.62 Machinery and Equipment:

Equipment and machinery is required for cooking, preservation of food and to entertain the customers as well. So we using best equipments and machinery.

5.62 Name of Supplier of Raw Materials:

Suppliers would include for providing good raw material to us (vegetables, fruits and meat etc). The contract for this had been made. All the food will be supplied from different suppliers in Faisalabad that supply raw food to the large number of food chains.

5.7 Marketing Mix

5.7.1 Product:

Riwayat's specialty is vast variety of food along with traditional theme. The products we offer in restaurant are physical productsalong with services that are part of our

20 offerings.Our products have varieties of traditional dishes from all provinces of Pakistan. Market size and product form are two important aspects of a product. The product form we choose to offer, it is important to establish and maintain a reputation as a reliable supplier of high-quality products.

5.7.2 Price:

Riwayat is currently using skimming strategy for pricing. As we are introducing a new product to elide class and providing them high quality products environment infrastructure and services in a competitive market. Price of food is determined by the price of raw material and government policies. Political and legal forces also affect the price of food and eventually change in the price that is due to imposing of taxes.

5.7.3 Place:

Faisalabad is one of the main cities of Pakistan our First Outlet will be in kohinor city to cater the need of people who are living in Faisalabad. This is commercial area and mostly populated by the people who are in hurry so they can get their food in 20 minutes and enjoy their favorite traditional food. We will also provide free home delivery to offices and homes in near future.

5.7.4 Promotion:

ADVERTISING  Face book advertisement.

Facebook Ads represent a completely new way of advertising online media to pushed out to people, so we are going to be a part of this conversation., Face book Ads will provide us help in three ways; we will connect with customers, it facilitates the spread of information our products and we will tell our customers about our themes according to

21 traditional events. So, we set out to use this action to build new kind of ad system. Facebook provides a free service to make page so there will be no cost.

 Website advertisement:

We make proper websites in which we will give information about company, information about product or review of restaurant. Our ads appear to left side of website and other marketing messages appear on the middle of the page. There is the option to take suggestions that how we can improve our product quality. Customers can get online memberships through our website. This website will be maintained by one of our partner.

 Campaigns :

This is basically the direct way of marketing. We conduct campaigns in different universities and colleges in Faisalabad and distribute brushers to them. These campaigns are focused on our specific target market.

 Banners and newspaper advertisement:

With respect to our target market we placed banners and bill boards at the main places and nearby targeted place. We also advertise our brand in both Urdu and English newspapers ( Dawn, Express) .

5.8 SALES PROMOTION: We will offer our customers various form of incentive to buy its food. Using coupons that one can acquire by spending a particular amount of over a period of fixed time. Additionally we provide the meal vouchers and exciting offers in print ads. Chapter :06

Human Resource Plan

22 Human resources management is all about your employees. It covers their rights, their training, and their use in your business and their well-being.

6.1 Mission of HR department

“To meet the organizational need in the perspective of human resource by aligning the organizational policies as well as with focused social responsibility and increase responsiveness to the environmental forces.”

6.2 Tasks of HR

First of all we will identify tasks and list down all the tasks at functional and unit level.

 Customer dealing  Overseeing the field staff  Documentation  Order taking  Contacts database  Suppliers list manage

6.3 Organization structure

Human resource department will determine the number of employee and type of employees requires by the organization.

23 CF Ei On a n c i a l m a n a g e r

Supplie Chefs Waiters rs (Province And vice) helpers

We have 3 different suppliers from different areas of Faisalabad. One supplier is for providing vegetables and fruits to us. Second is for meat and third is for providing other items (grains, rice wheat etc). Chefs are specialized in making traditional dishes. We have 5 waiters for order taking and providing good services to customers.

6.4 Training & Development

Riwayat has efficient training and development programs because we know for a restaurant with high standards then we must train your employees and develop their skills in order to maximize their potential and increases the level of service customers receive. we trained our restaurant staff should be trained in:

24 Customer Care. Health & Safety. Fire Safety. Food Hygiene. Service Style & Technique. Up-Selling Techniques.

6.5 Employee Agreement

Temporary employees will be hire by the as per policy of the HR department. Permanent employee will be hired and contracts will be renewed after a year by reviewing their performances.

6.6Compensation and benefits

Temporary employees will be hired as per the daily wages rate

 Waiters 2000 per event  Manager 20000-40000  Chefs  Security and insurance policy for the employees. As per the growth of the organization we’ll also increased the benefits and compensation for the employees.

25 Chapter :07

Financial plan

Riwayat STATEMENT OF OWNER EQUITY Serial No Names of Owners Amount Amount 1 Husnain Tariq 12,000,00.00 2 Mehvish Sultan 10,000,00.00 3 Sajid Ali 10,000,00.00 4 MubeenAkher 10,000,00.00 5 AhsanZaffer 10,000,00.00

Additional capital 10,000,00.00 TOTAL 62,000,000.00 BALANCE SHEET Riwayat 2014 Assets Amount Owners’ equity & liabilities Amount Current Assets Liabilities (1) Cash 126,980 Loan from Bank 10,000,00 salaries Owner equity Non-Current Assets Share capital 52,00,000 (1)Equipment purchased Projectors(3) 225,000 Interiors 211,200 LCds(8) 496,000 Refrigerators(2) 80,000 Kitchen Items 29,50820 Furniture 15,00,000 Sound system 80,000 Marketing Expense 50,000 (2)pre-paid building 480,000

26 Rent Total 62,000,00 Total 62,000,00 Financial summary regarding the Capital budgetingtechniques

Projected Cost IRR NPV Payback period

Revenue and cost Projection:

Age group Avg No. of persons served Percentage Revenue Cost in a week 45% of revenue 80-100 10-25 60% of revenue 90-110 26-35 35% of revenue 70-80 36-45 20% 0f revenue 50-60 46-65+

27 It is assumed that 800,000 are financed by a commercial bank for 5 year at a rate of 15% annual.

PROJECTED INCOME STATEMENT Riwayat

2014 Rs. Gross sales(540,000*12) 648,000,0 Less Cost of goods sold 807,333,3 Gross profit 159,333,3 other operating Less expences 0 Operating profit 159,333,3 tax and intrestexpences 20.00% 318666 Net profit 127,466,6 Exit strategies

Unfortunately if we will fail in doing business, according to situation we will either liquid it or merge with other restaurant.

References

Economic suvey of Pakistan. (n.d.). Retrieved December 12, 2010, from Trends :

http://www.finance.gov.pk/survey_0910.html

28 Robert D.Histrich. Michael P.Peters, D. A. Entrepreneurship. McGraw-Hill Irwin. http://en.wikipedia.org/wiki/Islamabad www.smeda.com

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