Acknowledgement

First of all, we would like to thank Almighty Allah, the OMNIPOTENT, OMNIPRESENT and SUSTAINER
of the universe, who gave us the strength, ability, courage, endless patience and dauntless
determination to work on this report.

Secondly, we would like to thank Mr. Zurrain Farhan, who provided us the opportunity to work on
such a research oriented and informative report. The preparation of this report was an enlightening
experience for all of us. The efforts made for the preparation of this report has enhanced our
learning of the course content and has increased our understanding.

We would like to pay special thanks to all the industry experts and authorities who have helped us in
the preparation of the report.

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Letter of Authorization
The course instructor, Mr. Zurrain Farhan, had authorized us to prepare this report for the course
titled Business Projects. We were asked to work on a Business idea and study how the Businesses
work in practical life.

In this connection, we decided to develop a business plan of an Independent Food Court. It has
proven out to be an effective and profitable utilization of the skill set available to us and also
provided flexibility to our customers to have a variety of options to select from.

In short, it was indeed a valuable learning experience for all of us.

Yours sincerely,

Muhammad Ishaq Mako & Tracey Michelle Dsouza

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 Table of Contents

Introduction...........................................................................................................................................6
World History of Food Courts................................................................................................................6
Independent Food Courts......................................................................................................................7
Food Courts in Pakistan.........................................................................................................................8
Business Objectives...............................................................................................................................8
Vision of our Business........................................................................................................................8
Mission Statement.............................................................................................................................8
Guiding Principles..............................................................................................................................9
Being Mindful of our Customers and our Staff...............................................................................9
Gratitude........................................................................................................................................9
Our Service....................................................................................................................................9
Customer Profile....................................................................................................................................9
Forecasted Startup Issues......................................................................................................................9
Market Analysis...................................................................................................................................10
Marketing Plan.................................................................................................................................10
Strategy Pyramid..............................................................................................................................10
Strategy:.......................................................................................................................................10
Tactics:.........................................................................................................................................10
Programs:.....................................................................................................................................11
Unique Selling Proposition (USP).....................................................................................................11
The 4Ps of Marketing......................................................................................................................11
Product Strategy..........................................................................................................................11
Pricing Strategy............................................................................................................................11
Promotional Strategy...................................................................................................................11
Placement Strategy......................................................................................................................11
Digital Marketing.............................................................................................................................12
Direct Mail...................................................................................................................................12
ATL Marketing Activities...............................................................................................................12
Website & Social Media...............................................................................................................12
Event Marketing...........................................................................................................................12

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Financial Analysis.................................................................................................................................12
Revenue Generation Model.............................................................................................................12
Primary Renting out the Spaces to Brands................................................................................12
Secondary The Fun Facility for Kids........................................................................................12
Tertiary Parking Place................................................................................................................12
Capital Requirements and Sources of Capital..................................................................................13
Start-up Expenses .......................................................................................................................13
Costs............................................................................................................................................13
Total.............................................................................................................................................13
Projected Sales of Slots and Rentals Income....................................................................................13
Annual Sales Forecast..................................................................................................................13
Year 1...........................................................................................................................................13
Year 2...........................................................................................................................................13
Year 3...........................................................................................................................................13
Net Payback period..........................................................................................................................14
Profits Drawing by Partners.............................................................................................................14
Operational Plan..................................................................................................................................14
SWOT Analysis.................................................................................................................................14
Business Model................................................................................................................................14
Daily Operations..........................................................................................................................14
Competitive Comparison.............................................................................................................15
Suppliers......................................................................................................................................15
Management Structure....................................................................................................................15
Organizational Structure..............................................................................................................15
Management Team Gaps.............................................................................................................15
Human Resource Requirement....................................................................................................15
Emotional Bank Account..............................................................................................................16
Business Go-Live Timeline................................................................................................................16
Involvement of Future Trends..............................................................................................................16
Conclusion...........................................................................................................................................16

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Introduction
Foodertainment will be an All-Under-One-Roof type Food Court, in which the shops / stalls will be
rented out to various renowned local and international food-chains. The place would have a spacious
seating arrangement segregated for Bachelors and Families and a Fun Facility for kids. The facility
would also contain a secure, underground charged parking, not limited only for the visitor of
Foodertainment but also available general passers-by. Valet Services for visitors of Foodertainment
will also be introduced and will be charged accordingly from customers.

World History of Food Courts

Sharing a meal in a communal space is nothing newthe Grand Bazaar in Istanbul, which is well over
500 years old, is one of the worlds oldest indoor markets. Fast-forward to the early 1900s, and the
great department stores that presided over downtown shopping streets in the United States had a
variety of full-service restaurants aimed squarely toward the ladies-who-lunch. Marshall Field's on
Chicago's State Street was home to the famous Walnut Room (which now resides in a Macy's).
Wanamakers in Philadelphia had a spacious dining room, believed to be the largest in the city, which
provided diners a place not just to eat but also to enjoy the stores enormous pipe organ. Macys
Herald Square in New York City offered white tablecloth meals. But at some point, meals for the
masses became a selling point.

When shoppers moved from the urban centers to the suburbs in the post-World War II boom, the
retailers followed. By 1954, when Time published an article called "Flight To The Suburbs," 93
suburban shopping malls had been built around the countrys 20 largest cities and another 25 were
on the way. The enclosed suburban mall had to build the retail experience from the ground up since
it didn't have the benefit of the existing businesses or infrastructure of the downtown shops. These
malls included restaurantssome in the department stores were similar to their urban counterparts,
while others offered choices like a Morrisons cafeteria, or the food counter at the Woolworths Five
and Dime. The restaurants were more of a convenience to suddenly hungry shoppers rather than
their own destination. Woolworths counter in particular was an early quick-service concept, in
todays restaurant industry parlance, but it does point toward the food courts that were yet to come.

While there is some debate about where the first successful food court opened in a mall (some claim
it was in Canada at Torontos Sherway Gardens; others say it is the Paramus Park Mall in Paramus,
New Jersey), there is little doubt about the visionary behind the idea: James W. Rouse. Rouse was the
pioneering developer responsible not only for many suburban shopping centers (he's credited with
coining the term "shopping mall" in the 1950s), but also urban shopping renewal projects like
renewing Bostons historic Faneuil Hall in 1976 or New York Citys South Street Seaport in 1983.

The success and popularity of food courts began attracting developers of other types of commercial
buildings. Beginning in the '90s, colleges and universities started to convert some of their traditional
dining halls from cafeteria style to the now-familiar food court design, even bringing in brand name
franchises like Burger King, Taco Bell, and Subway. Hospitals followed suit in an attempt to combat
the old stereotype of bland and tasteless hospital food. Airports began renovating their snack bars

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and clustering restaurants together food court style. Sbarro, one of those mall stalwarts, began
appearing in terminals across the US.

Meanwhile, those original food courts were starting to show their age. The pink and turquoise Miami
Vice-era design stood in stark contrast to the ubiquitous '90s grunge. Malls began to modernize by
adding more casual sit-down restaurants as tenants, which continued to attract adults rather than
just teens needing to kill time; one of southern Californias classic malls, the Beverly Center, was
featured in the 1991 Woody Allen and Bette Midler movie Scenes From A Mall, which centered
around a middle-aged couple who had a nice, loud argument over ice cream in the food court.
Chains like the Cheesecake Factory and The Melting Pot opened locations in shopping malls. To
increase its presence, California Pizza Kitchen expanded beyond its home-base in southern California,
often setting up shop on the outer perimeter of a mall. This allowed for late-night access and liquor
license zoning.

Independent Food Courts

Now that shoppers spend more time and money online, malls have been struggling to attract guests.
But the food court mindset is thriving with new concepts that harken back to the ancient bazaars and
European food halls. In New York and Chicago, celebrity chef Mario Batali has opened outlets of
Eataly, his food hall design that is part specialty store and part dining experience. There is artisan
pizza and even a Nutella bar for desserts and crepes. In the basement of New York City's Plaza Hotel,
another celebrity chef, Bostons Todd English, has pioneered a food hall with gourmet desserts,
classic hoagies, and lobster rolls. The Zipper, a new addition in Portland, has been called a food

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court for grown-ups. At all three, visitors are encouraged to lingerthat time-honored tradition
recognized by Rouse and the other community developers.

Food Courts in Pakistan

Fast Food Industry in Pakistan is the 2nd largest in Pakistan. Accounts for 27% of its value-added
production & 16% of the total employment in manufacturing sector with an estimated 169 million
consumers, Pakistan holds the worlds eighth largest market when it comes to fast food and food
related business. More than 1000 large scale food processing enterprises in Pakistan. 75% of rural-
based food manufacturers are in so-called informal sector (difficulty in accessing raw material
finance informal sector (difficulty in accessing raw material, finance skills, knowledge &
management).

Pakistans fast food sector is changing significantly with an inclined shift in life styles and traditional
eating habits. According to the survey which was being made on the performance of the fast food
business in Pakistan it was being revealed that an average consumer spends 42% of ones income on
food. Retail sales of processed foods is expanding by 10 % annually and currently are estimated at
about US$1.4 billion, of which imported products account for US$325 million. Supermarkets are
gaining in popularity as a shopping venue and now account for about 10% of all retail food sales. In
addition, addition, Pakistan now hosts numerous western western-style fast food chains reflecting a
rising popularity with such eating style.

On an average calculation the fast food business in Pakistan and the trend of eating habits of the
locals in the country is increasing almost 21% annually which means the growth of the fast food
business in Pakistan is more than 20% on annual basis which makes it as one of the fastest growing
businesses not only in Pakistan but even in the entire world as well.

Business Objectives

Vision of our Business

The vision or long term objectives of our business are as follows:

To become the premier and pioneer independent food-court and entertainment center of
Karachi

To attract customers of all age groups and socio-economic classes

To make available the best of Karachis food under one roof at the most affordable prices

Mission Statement
Our Mission is to provide a unique and relaxing dining experience. We will strive to achieve this goal
by: 1) by providing best possible variety incorporating quality ingredients at reasonable prices, and 2)
we will be mindful of the well-being of our customers and staff treating each and every one with
dignity and respect just like we would at our own home!

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Guiding Principles
Being Mindful of our Customers and our Staff
Coinciding with our family values, we will treat both our customers and staff in a manner in which we
ourselves would want to be treated (or better!)

Gratitude
An attitude of gratitude shown to our customers, employees and vendors because without their
input, service, labor and time, our business would not be here without them!

Our Service
Provide the warm and friendly service expected from a family-style restaurant creating an informal,
comfortable environment which will make the customers satisfied and want to return again and
again.

Customer Profile
Demographics

Age Any
Gender Both
Family Size Any
Social Class Upper middle and upper class
Occupation Any
Geographic
Country Size Pakistan
Density or Area Karachi Urban particularly targeting residents of DHA, Clifton, Gizri
and surrounding vicinities
Climate All seasons
Psychographics
Lifestyle food lovers, innovators, believers, explorers, outgoing, fun-lovers,
hygiene conscious and health conscious
Value Extended Variety of Quality Halal Food Items
Behavioral
Benefits Quality, taste, value of money, Good for digestion, entertainment.
Product / Service Ambience, positive service, convenience, quality control,
Occasions Parties, regular occasions, daily consumption.

Forecasted Startup Issues

First and foremost issue at hand will be recruitment of quality manpower. Since our startup is new
and not known to the masses, it would be challenging for us to attract and retain good human
resource.

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Like Every Business startup, initial 5-7 years will be testing times. The business might not run at its
optimum profitability in the beginning for which we have to be prepared with deep pockets. The
profitability curve will follow a hockey stick shape, with losses and high expenses in the initial years
but higher profits late on.

Dealing with regulatory authorities such as Building Control Authority, Food Safety Authorities, Fire
Safety and Worker Protection Authorities can also pose issues which have to be dealt carefully.

Market Analysis
Pakistans fast food sector is changing significantly with an inclined shift in life styles and traditional
eating habits. According to the survey which was being made on the performance of the fast food
business in Pakistan it was being revealed that an average consumer spends 42% of ones income on
food. Retail sales of processed foods is expanding by 10 % annually and currently are estimated at
about US$1.4 billion, of which imported products account for US$325 million. Supermarkets are
gaining in popularity as a shopping venue and now account for about 10% of all retail food sales. In
addition, addition, Pakistan now hosts numerous western western-style fast food chains reflecting a
rising popularity with such eating style.

On an average calculation the fast food business in Pakistan and the trend of eating habits of the
locals in the country is increasing almost 21% annually which means the growth of the fast food
business in Pakistan is more than 20% on annual basis which makes it as one of the fastest growing
businesses not only in Pakistan but even in the entire world as well.

Marketing Plan
Foodertainment will position itself as brand of choice in the Eating-out segment. We will do this by
applying a bi-directional marketing and demand generation approach, attracting Local Food Brands
and general customers.

Specialty brands of Karachi, such as Karachi Foods, ZahidNihari, Food Center, ShaheenShinwari&
Karachi Haleem will be marketed the idea of extending their reach to those customers who live in
distant areas such as DHA, Clifton, Gizri, MalirCantt. etc. and are reluctant to drive to citys populous
areas.

All brands will be convinced of the idea that opening up an outlet through us would have a much
lower cost than opening up their own facility, thus extending their reach to the customers at a very
low cost.

Strategy Pyramid
Strategy:
To be the premier and pioneer All-Under-One-Roof eating-out and entertainment center for
customers of all classes and age groups.

Tactics:
First create awareness via a rigorous and extensive marketing campaign, making customers realize
that the choice of their favorite brands is not restricted to shopping malls only now. Foodertainment
has it all covered!

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Programs:
Creating the best environment and ambiance for the visiting customers, providing them with the
best of services on & off the table.

Unique Selling Proposition (USP)

Eating out at a Food Court is an enjoyable experience in its own, where you have the luxury of eating
whatever and from wherever you like, and all the options are available at one place. Currently, this
Food Court concept has restricted to large Shopping Malls only, which are scattered across the city.
There are numerous such areas in Karachi where the residents have significant buying power but
they dont go out regularly to eat due to a sense of inaccessibility and hindrance caused by growing
traffic. We, at Foodertainment, will bring the same experience in to their areas.

Our USP will be that we will bring in Karachis specialties together under one roof. Customers will find
outlets of the famous Zahids Nihari, Food Center, Shaheen Shinwari and Karachi Haleem, etc. This
will bring more choice to the customer and will serve as a One-Stop Food Solution.

The local food chains partnering with us will have the advantage of extended customer reach,
resulting in greater revenues.

The business model will allow us to have a quick recovery of our capital employed, if marketed
properly to the food chains. This would be done similar to the likes of Imtiaz Stores or LuckyOne
Mall, where the brands pay heavily in advance to have their outlet / shelf space in the facility.

The 4Ps of Marketing

Product Strategy
As per the infrastructure plan of the food court, we will have 10 slots for various food brands
available. We will not open up the restaurant for public unless we have 60% of the space occupied,
i.e. atleast 6 brands should be ready with their stalls, when the business is opened up for customers.
To achieve this, visits will be carried out to head offices / owners of these brands to convince them to
invest in our business and get greater returns.

Pricing Strategy
Our primary and foremost Revenue Generation Model is to rent out the stall spaces to various
famous local and foreign brands / food chains. If marketed properly, higher revenues can be
generated by charging higher rents from Multinational Fast Food franchises. Also, as the business
progresses, revenue generation can be enhanced by increasing the rent as the business progresses.

Promotional Strategy
Extensive Marketing Campaign will be run through Social Media Channels through paid content on
Facebook, YouTube, and a Twitter handle will be created as well to communicate effectively with our
customers.

Placement Strategy
Our target location would be those areas of Karachi in which people have a significant buying power
but they dont have large Shopping Malls or prominent restaurants in their vicinity. Due to this
reason, people living in such areas dont usually go out to eat and usually rely on delivery services of

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Major Brands. To name a few, DHA, Clifton, MalirCantt&Gizri are such areas. So we intend to bring
the same experience of eating out at their favorite brands right into their own area.

Digital Marketing
Direct Mail
Bulk mailing either directly to potential customers or by including a postcard in a value-pack-type
mailing.Our initial marketing campaign will consist of contacting our databases clients and notifying
them of our grand opening.

ATL Marketing Activities

We will have Signage on the Roads, Shopping Centers as well as signage over our entrance.

Website & Social Media

We will stay current with industry trends and have a webpage, Facebook page and Twitter site. Our
menu, map, and hours of operation will be easily accessed. In the future we may consider fax or
email orders as well on an Android / iOS application.

Event Marketing
Loyalty and Birthday Club members will notified of upcoming special menu items on various brands
and will be alertedwith special promotional offers. Discount vouchers and Promo Codes of various
brands may be distributed via our Facebook page to attract more customers. All-you-can-eat offers
will be advertised.

Financial Analysis
Revenue Generation Model
Primary Renting out the Spaces to Brands
Our primary and foremost Revenue Generation Model is to rent out the stall spaces to various
famous local and foreign brands / food chains. If marketed properly, higher revenues can be
generated by charging higher rents from Multinational Fast Food franchises. Also, as the business
progresses, revenue generation can be enhanced by increasing the rent.

Secondary The Fun Facility for Kids

We intend to create a Play area / Entertainment Zone for kids and Mid-aged youngsters comprising
of modern electronic gaming consoles and other physical activity based games. For this, we would
charge an entry fee of Rs. 500 per kid. Membership facility would also be made available to
encourage regular visitors.

Tertiary Parking Place

Our facility would also contain a secure, underground parking which would be charged. The Parking
Place would not be limited only for the visitor of Foodertainment but general passers-by can also
avail this facility. Valet Services for visitors of Foodertainment will also be introduced and will be
charged accordingly from customers.

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Capital Requirements and Sources of Capital
Total Capital requirement is PKR 500,000,000 which will be solely equity financed by three partners,
i.e. no debt involved. The partners include:

Mr. Ishaq Mako

Mr. Tariq Dawach (Landlord)

Mr. Zameer Ahmed Ghumro (Advocate General Sindh)

The tentative breakup of capital expenditure is as follows:

Start-up Expenses Costs

Graphic Logo and Name Registration PKR 20,000,000
Permits & Licenses Costs PKR 30,000,000
Land Acquisition PKR 100,000,000
Building Construction & Improvement PKR 200,000,000
Working Capital PKR 100,000,000
Pre-Opening Expenses PKR 50,000,000

Total PKR 500,000,000

Projected Sales of Slots and Rentals Income

Assuming that all the slots will be rented out by third year of business and a rent of Rs. 150,000 per
month will be earned from each of the brands.

Annual Sales Forecast Year 1 Year 2 Year 3

Sales
Rental Revenue from Slots PKR 10,800,000 PKR 14,400,000 PKR 18,000,000
Earnings from Fun Facility PKR 1,000,000 PKR 1,500,000 PKR 2,000,000
Earnings from Parking Place PKR 500,000 PKR 700,000 PKR 1,000,000
Total Sales PKR 12,300,000 PKR 16,600,000 PKR 21,000,000
Controllable Costs
O&M Cost PKR 7,500,000 PKR 8,000,000 PKR 9,000,000
Payroll PKR 5,000,000 PKR 5,000,000 PKR 6,000,000
Indirect Expenses PKR 2,000,000 PKR 2,500,000 PKR 3,000,000
Total Prime Cost PKR 14,000,000 PKR 15,500,000 PKR 18,000,000
Controllable EBIT PKR (1,700,000) PKR 1,100,000 PKR 3,000,000

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Net Payback period
Assuming a total capital cost of PKR 20 million and our per year profitability increasing further from
PKR 3 million per year, we will achieve Breakeven in Six years time.

Profits Drawing by Partners

It has been mutually agreed among all business partners that for first 08 years (06 years of Breakeven
+ 02 additional years), all profits earned shall be reinvested in the business to help it stabilize and
grow further. From 09th year onwards, the profits will be drawn and shared by the partners.

Operational Plan

SWOT Analysis

Business Model
Daily Operations
We will be open 7 days a week for lunch and dinner requiring multiple shifts. The schedules will be
written in a manner that will allow the ability to increase or decrease hourly labor according to sales
volume in order to maintain a consistent labor cost control.

Proper labeling and rotation techniques, accompanied by ample storage facilities will ensure that
high quality prepared product will be sufficiently available to meet the demands during peak
business hours. Replenishment and ongoing preparation will continue during off peak business
hours.

Operational checklists will be made to verify that each work shift has been properly prepared for and
to insure the operational standards are followed before, during and after work shifts.

The foodcourt layout, including the dining hall, kitchen and serving line, has been designed for
efficiency and flexibility to accommodate the fluctuation in customer traffic and peak meal periods.

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Upon arrival, guests will be greeted immediately by either the assistant manager or a server and
asked for the seating preference. Customers order will be taken at stalls of their desired outlet and
payment will be made via Cash / Debit / Credit Card at the POS. The kitchen preparation line has
been designed to keep the serving time as minimum as possible. This design allows line staffing to be
adjusted to the business volume. Shift changes for all staff will involve cleanup, restocking and
preparation. All monies will be settled at the end of each shift. The closing shift will involve
designated clclosing duties that will leave the restaurant clean and fully prepared for the next
day.

Competitive Comparison
Small food streets located in various areas, such as the ones in Azizabad, Samnabad, Dastageer
Society & Five-star Chowrangi, will give us the major competition as they also offer variety of food
items. Also, these food streets are able to get easy endorsements during festive events due to their
popularity among masses. Hamara Karachi Festival is a popular example in this regard.

Suppliers
In our operations, we will try to facilitate and assist suppliers of all our partners as much as we can.
This will be done to ensure timely delivery of products to the foodcourt. A small store space will also
be provided to the brands to maintain their necessary inventory to maintain uninterrupted supply.

Management Structure
Organizational Structure
We expect to hire 10 employees initially. Each employee will be selected after an in-person interview.
We will adopt an effective interview process designed to staff the restaurant with highly qualified
people for each position. Each applicant will be rated and evaluated according to a pre-defined set of
standards designed for each position. Background checks will be utilized for designated positions.
Recruiting efforts will always center on referrals.

Management Team Gaps

Initially I and Tracey will fill in many of the management gaps. Over time, we have plans to hire a
sales director, a general manager, a facility manager, and two management trainees.

To meet the gaps associated in payroll, inventory management, and cost accounting, we will
purchase a POS (point of sale system). Because the POS system acts as a time clock, it can help
prepare payroll which will save some money in the bookkeeping department. Along with the daily
operations of running a foodcourt, a POS system can organize profit and loss statement and sales tax.

Human Resource Requirement

Initially, we will need a staff of 10 employees for the following responsibilities:

1. Facility Manager (01 Nos.)

2. Building Electricians / HVAC staff (03 Nos.)

3. Plumbers (03 Nos.)

4. Janitorial staff (02 Nos)

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 5. Security Guard (01 Nos.)

Emotional Bank Account

Employees are the strength of any business, and if the employees love their jobs, their contribution
towards the growth and success of the business can be enormous. In order to achieve this success,
we need to open an Emotional Bank Account in the hearts of our employees. If we keep on drawing
high amounts of efforts from the account and dont replenish it with appropriate monetary and non-
monetary benefits, the Emotional accounts will go bankrupt. Therefore, to prevent bankruptcy, the
accounts should be timely and appropriately recharged with monetary and non-monetary benefits.
Apart from good salaries, rewards and bonuses, even a pat-on-the-back or a few words of
appreciation could mean a lot to an employee and can motivate him to make a difference. On
organizational level, this would be ensured by creating an environment of mutual respect and
harmony so that the employees remain satisfied with their jobs, and put their best contribution
towards business growth.

Business Go-Live Timeline

Considering the time required for arrangement of funds, land acquisition, facility construction,
interior decoration, equipment purchase and installation, we expect to launch our business within a
6 8 months span of time.

Involvement of Future Trends

As described earlier as well, Digital Marketing initiatives will have a major role in expanding our
business. The facility will be completely computerized and all stalls will be POS supported to enable a
cashless transaction flexibility for customers. CCTV cameras will be installed to provide maximum
security coverage to the facility. A mobile application of Foodertainment can be launched, through
which the customers can look out for latest offers, menus and promotional discounts by our partner
brands.

Conclusion
Foodertainment will be a great and unique initiative for outgoing and food-loving residents of
Karachi City. The place will attract customers of all age groups and will serve as a great blend of
restaurant and entertainment centre. Having covered Industry Analysis of Food courts, Market,
Finance and Operational Analysis of our business, we are strongly convinced that the idea would
prove to be a success, and we will see our business prosper day-by-day.

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