Feasibility Analysis Report

Submitted by
Ahmad Tariq FA18-BAF-008
Ayesha Shafique FA18-BAF-017
Areeba Sheikh FA18-BAF-015
Batool Zia FA18-BAF-019
Eman Asif FA18-BAF-020
Sohaib Mansoor FA18-BAF-048

Date of Submission: 6h December 2021

Department of Management Sciences
BAF – 7 A
COMSATS University, Islamabad

Product/Service Feasibility
Product
Our ready-to-eat food is made from organic, non-GMO, no artificial flavors, no color added, and no
preservatives. Our huge ready-to-eat food selection of vegan, no-dairy and animal-free products come in the
form of frozen or dehydrated.

1. Flora food
The restaurant will use flowers as ingredients to make various dishes.

2. Snack
Snack is a unique characteristic of the restaurant, before or after the meal or when people are
discussing issues, we will offer flora deserts to let them feel this characteristic.

3. Porridge
There are many types of porridge which are very popular. We could imitate them using flowers to
make porridge to attract our customers.

4. Flora Soup
In Pakistan, soup is a tradition, especially in winters, therefore, we will push out tasty soup as another
characteristic.

5. Flora drinks
When we are running the restaurant, except the normal drinks such as green tea, beverage, we will also
provide new kind drinks using flowers such as flower tea.

Target Market
1. Health-Conscious People
While "health-conscious people" may be the obvious target market for a healthy restaurant, it is also a
broad one that can be segmented for more targeted, effective marketing efforts. The characteristics and
preferences of this market also can be used to inform restaurant design and menu decisions. For
example, some health-conscious people prefer to eat local, organic, in-season produce and shop at co-
ops and farmer's markets, so you could make your use of seasonal, regionally grown produce a selling
point.

2. Weight-Conscious People
Focus some of your menu design and marketing efforts on people who are trying to maintain or lose
weight. If you can offer delicious meals for a reasonable calorie count, you will be able to give hungry
dieters a way to indulge their desires for scrumptious restaurant cuisine and continued weight loss at
the same time.

3. People on Special Diets

Mention your special diet options in your marketing materials. People on special diets, including vegan
diets, gluten-free diets, "allergy-free" diets and low-carb diets, often have trouble eating in restaurants
because so many restaurants serve food brimming with butter, oil and carbohydrates. A healthy
restaurant with tasty, clearly labeled options for people with restricted diets will have wide appeal to
this typically underserved market.

4. Active People
Energize the marketing materials for a healthy restaurant by using imagery of people being active --
from walking, birding, and hiking to running, mountain biking and rock climbing. Many active people
lead a generally healthy lifestyle, including a healthy diet. The kinds of activities you show will depend
upon your region and whether you are trying to target hardcore young athletes with big appetites or
older folks who prefer gentler activities.
Why Lettuce Eat?
In the course of about three years, the number of people who identify as vegan – meaning they consume no
animal-based products (including dairy and eggs) – increased by 600%, according to Global Data. As this
market grows, restaurants will be under more pressure to accommodate vegans and vegetarians.

1. Providing unique food, excellent services, and elegant environment.

2. Enhance health, prolong life, cure illnesses, and improve physiological functions.
3. Making people to learn more about the vegan catering which can lead the booming of this industry.
4. Reducing local employment pressure.

Product Positioning
We will set up the position to be a top-grade restaurant with healthy, enjoyment, and deep cultural atmosphere.
Besides, we will provide unique flavor food and excellent service. Our target customers are wealthy and high
income as well as those affordable businessmen with high taste. Therefore, we will set the price at a high level.
The environment, atmosphere, service and taste present mature, exquisite, brilliant, and elegant culture.

1. Quality Position
The quality position includes 3 key points: Refined and tasty vegan food, elegant and refresh
atmosphere, and friendly service.
There should be three flavors: Flavor made by the chefs, constant innovative flavor which is suitable
for all customers, and flavor, which keeps up with the dynamic market, changing according to the
business development requirement. It should always keep learning from other businesses and making
new dishes. Based on the new things we learn; we will develop our own characteristics. We will also
give our support staff professional training on service to assure the service quality.

2. Price Position
 Premium
To entertain consumers with top-grade products and excellent services.

 Psychological Pricing
Psychological Pricing is to set up prices-based targeting on different consumers to meet their
different needs.

 Reputation Pricing

All the customers have the thoughts to pursue reputation of something. Based on this strategy, business
could set up prices which are higher than the similar function products.

Industry/Market Feasibility
A lot of Pakistani staples such as daal chawal and sabzi roti are meals that are either already vegan or can be
very easily made vegan with a few tweaks. But when you're eating out, most Pakistani vegan food
options usually sound like starters and sidelines instead of main courses.

In recent years, a lot of Pakistanis have reduced their meat intake and resorted to a primarily vegetarian diet.
This is reportedly because of the rising prices of meat and inability of many people to afford it. That is
indicative of how eating plant-based meals is relatively inexpensive compared to meat-based meals.
On the other hand, the fact that dairy alternatives are not manufactured locally means that swapping out dairy
could be heavy on the pocket. A Pakistani vegan future potentially could be a sustainable and beautiful one with
endless possibilities.

In recent years, on the beverage market, natural flowers and plants are booming, they are with rich nutrition, no
pollution and deeply welcome by consumers. Therefore, the vegan food and flora drinks will have a great
potential market, currently, in Pakistan, there is no exclusive restaurant serving with flora drinks, therefore, it
has a large market perspective.

Organizational Feasibility consists of Management Prowess which is the overall skills of the
management team that will be running the business in general. It includes expertise or skills of getting a job
done. Therefore, the human resource aspect of the business is important while concluding the feasibility of the
business.

Therefore, the human resource should comprise of workforce of the business and upon which the business will
rely on, and the business depends heavily on its workforce. The management team of Lettuce Eat comprises of
individuals that have sufficient knowledge and substantial passion for running the business. The feasibility
analysis of Lettuce Eat is catered towards having high skilled workers on the lines of chef, its architecture, and
the management team.

The management team of the vegan-centered restaurant lacks first-hand experience of running the business, but
what it lacks in business; makes up for in-depth understanding of the market, and passion for making it
successful. The founding team has collectively shown great enthusiasm for making it a success and has done
research revolving around how food start-ups operate and become triumphant.

The important factors of management prowess require founding individuals to be honest and candid in the
assessment of the business and themselves. The three important factors in this area that the team of Lettuce Eat
insured are,

1. All the founding members are confident and on-board with the business idea.
2. All the founding members are equally passionate about running the business.
3. Lettuce Eats’ management team has done thorough investigation into the market.

Aside from the passion of the management team, the founding members are well equipped with tactical and
technical skills in this business sector. It includes strengths such as:

1. All founding members of Lettuce eat have relevant educational background in this field.
2. Rich professional and social network.
3. Creative and agile thinking among the team members.
4. Expertise and experience in cash management.
5. Social media presence.

Organizational feasibility also investigates non-financial resources that have moderate influence on the business.

Local Support

Veganism is still an emerging concept in Pakistan, that gives Lettuce Eat the opportunity to be one of the first
movers in this industry as majority of local cafes and diners are yet to introduce full vegan options. Lettuce Eat
expects to entice customers through delicious vegetarian meals that offer both health and taste. According to a
local report, Pakistan in recent times has become the nation that has the highest spending on food.

Proximity to key Suppliers

As the business concept is based around food, our core beliefs are enrooted in giving the best to the customers,
which includes making sure only the freshest food is made available to the customers. And the team intends to
source the produce from local farmers to help support the cause as well.
High Quality Employees

Human resource is an important factor in running the business, although a newly start-up business. Lettuce eat
believes in hiring the most qualified personnel for the job whose goals are aligned with the business and in the
best interest of the customers. Restaurants are fast paced businesses; they need proper support of qualified
employees both on the upper and lower level of the hierarchy to function. Lettuce Eat intends to employ those
individuals that are best suited for the job, not just based on skills.

As mentioned previously, the concept of veganism is slowly entering the food industry in Pakistan. What sets
apart this particular business from the rest is that we focus on selling vegan-healthy options that cater to the
sophisticated taste pallets of the locals.

Financial Feasibility
The start-up expenses contain rent, facilities, expenses on marketing, sales and promotion, building website,
license and so on. The start-up assets include tables, chairs, kitchen facilities, various utensils, and
computers.
Start-up Capital
Requirements Unit: PKR
Start-up Expenses
Legal 280,000

Rent 220,000
Facilities 1,400,000
Marketing, sales, and promotion 280,000
License 75,000
Other 1,300,000

Total Start-up Expenses 3,275,000

Start-up Assets

Cash required

Start-up Inventory 1,600,000

Other Current Assets 1,400,000

Long-term Assets 280,000

Total Assets 3,280,000

Total Requirements 6,555,000
Start-up Funding Unit: PKR
Start-up Expenses to Fund 3,275,000
Start-up Assets to Fund 3,280,000
Total Funding Required 6,555,000
Assets
Non-cash Assets from Start-up 0
Cash Requirements from Start-up 3,280,000
Additional Cash Raised 0
Cash Balance on Starting Date 3.280,000
Total Assets 3,280,000
Liabilities and Capital
Liabilities
Current Borrowing 0
Long-term Liabilities 1,400,000
Accounts Payable (Outstanding Bills) 0
Other Current Liabilities (interest-free) 0
Total Liabilities 0
Capital
Planned Investment
Parents 2,800,000
Other 0
Additional Investment Requirement 0
Total Planned Investment 2,800,000
Start-up Expenses 3,270,000
Total Capital 1,000,000
Total Capital and Liabilities 1,200,000
Total Funding 6,555,000