Friend’s Fries

(Business Plan)

The Miniwarma
Manufacturing Company
(Business Plan)
TABLE OF CONTENTS

Executive Summary 2

Industry Analysis 5

Company Description 8

Product and Services 10

Market Description 12

Marketing Strategy 13

Operational Description 17

Staffing Description 23

Financial Description 26

Financial Projection 30

Capital Needs 44

Milestone 45

Exhibits 46
 CHAPTER I

EXECUTIVE SUMMARY

Industry Analysis

The Fast food industry’s ability to provide convenient food at a lower price will remain popular
as costumers continue to seek affordable and convenient food options.

The Friend’s Fries fast food business is owned by two best friends and has started a business
venture together. Friend’s Fries was created to serve customers with a variety of different flavored French
fries with a twist and drinks.

Company description

Vision
For everyone has access to good quality of service and satisfying flavors of good food with
reasonable price.

Mission
To be one of the local’s favorite fast food restaurants that serves good food that satisfies the
customer’s needs and wants.

Objectives

The objective of this business plan is to introduce it to the local market the newly discovered
French fries with different twist and toppings. This restaurant will create different flavored French fries
that are not common to customers who are willing to try and pay the food. The business plan of Friend’s
fries is to increase the demands and supplies to be able to serve it to the locals. It will also expand the
labor opportunities that will be given to unemployed locals and to be included in larger industries that will
serve for many years to come.

Product and Service

Friend’s Fries will provide a combination of excellent food at value pricing, with fun packaging
and atmosphere to satisfy customers. Friend’s Fries is the answer to an increasing demand for snack-type
fast food, to be consumed while window shopping and walking around the community.

Market description

To define and analyze the target market to be able to compete with large established companies,
innovators to disrupt the market, and other companies to get an advantage over the competitors. The main
target market for this business is an essential step to remain viable. Friend’s Fries will succeed in serving
the right product and service to the local market.

Marketing Strategy

Social media will be the top of the list in marketing the business, along with a combination of
local media and local store marketing programs will be utilized. By providing a fun and energetic
environment, with unbeatable quality at an acceptable price in a clean and friendly outlet, we will be the
talk of the local social media. We will actively build our brand, through the selling of supporting
materials, such as merchandise, promotional items and other marketing gimmicks similar to those of other
fast food franchises.

Operational Description

Locations & Facilities

The Friend’s Fries’ location will feature its own originality in merchandise display and other
brand building attributes. We will equip the outlet with modern furniture and aim for cleanliness and
an open feeling. Friend’s Fries will range in size from 50 – 70 square meters and 20 – 25 customers can
occupy.

The space selection will be chosen based upon the following criteria:

 Tourist destination.
 Easy access.
 Large percentage of teenagers in the community.

All of these qualities are consistent with Friend's Fries’ goal of providing a top quality fast food
experience. We want "word-of-mouth" to be our best form of marketing, where our customers value our
brand as something exciting and cannot wait to tell their friends and neighbors. And of course these days
word of mouth is amplified word of mouth, via social media.  

Financial Description

Friend’s Fries has Php 1.2 million start-up funds to open the fast food restaurant. The funding will be
dedicated for the build-out and design of the restaurant, kitchen, and drive-thru as well as cooking
supplies and equipment, working capital, three months worth of payroll expenses and opening inventory.
The breakout of the funding is below:

 Restaurant Build-Out and Design – Php 950,000

 Kitchen supplies and equipment – Php 40,000
 Opening inventory – Php 20,000
 Working capital (to include 3 months of overhead expenses) – Php 50,000
 Marketing (advertising agency) – Php 140,000
Milestone

Friend’s Fries has 10 months in order to achieve its goal before the grand opening. The following are the
milestones needed in order to obtain this goal.

08-01-2022 – Execute lease for prime location at busy intersection and finalize architectural design of fast
food restaurant.

08-10-2022 – Begin construction of fast food restaurant build-out.

08-15-2022 – Finalizing menu.

09-10-2022– Hire advertising company to begin developing marketing efforts.

10-05-2022 – Start of marketing campaign with social media; billboard goes up.

01-10-2023 – Final walk-thru of completed fast food restaurant build-out.

01-15-2023– Hiring of chefs and staffs.

01-25-2023 – Training for hired employees.

06-01-2023 – Grand Opening of Friend’s Fries.

CHAPTER 2

INDUSTRY ANALYSIS

The Fast Food Restaurant industry consists of different varieties of restaurants around the world
where clients pay for quick-service food products. Fast food industry has become one of the largest
contributors in our socioeconomic status. The industry has become popular in providing convenient food
at a lower price. The unemployment rate in the country has declined at a lower rate because of the
continuous demand of the consumers. Additionally, fast food restaurants are expected to continue to
expand through the years.

Overview of Industry

The country’s most common and leading industry is fast food industry which provides high
quality of service and healthy good food. Fast food industry has become the most convenient food service
that could be easily access by consumers. The Friend’s Fries will manage to excel on the local markets
thou many franchises are already introducing this product. What makes the Friend’s Fries unique from
other competitors is that the Friend’s Fries will develop new combinations of French fries and other kinds
of food.

The Friend’s Fries will provide high quality of service and a clean environment that will satisfy
customer’s comfort. It will also entertain the customer’s feedback to improve its services and food
products. The Friend’s Fries has its goal to offer a lower price on the products that is worthy of the cost.

THEORETICAL FRAMEWORK

Qin, H. and Prybutok, R. V. (2009) investigated service quality, customer satisfaction and
behavioral intentions in fast-food restaurants. The objective of this research is that exploring the
relationship between three elements which are core service quality, relational service quality and
perceived value and customer satisfaction and future intentions across four services.

Competitive Rivalry

The Friend’s Fries has large numbers of competitors in the local markets that are already making
their brand names known in the community or even international market. Most of the famous fast food
restaurants are competing each other for market shares. The level of competitive rivalry in the fast food
industry overall is high.

Threats of new entrants

The threat of new entrants in the fast food industry is not very high. It is because any locals can
start with a small business with a small capital investment. However, to successfully bring out in a
national or international level or expand overseas and become a popular brand, there is a large risk
investment in operations, marketing and human resources. Another factor that is raising the barrier higher
is the regulatory scheme. The permitted management of food brands has grown high. In the Asia pacific
region markets, these barriers can be even high and can obstruct foreign brands from entry and expansion.
These factors prevent new brands from entry and the overall threat becomes moderate.

Buyer Power

Friend's Fries consumers have a moderate amount of buyer power. The customers now wield
more power and authority in the twenty-first century. This shift is due to a number of variables. The rise
of technology and rising competitiveness are two factors. Increased competition means that more
businesses are vying for market share. Brands are investing more on marketing, quality, and customer
retention since every customer is valued. To stay popular, each company tries to adhere to the highest
quality standards and give the highest quality cuisine to their clients. Friend's Fries is likewise attempting
to achieve the best level of quality and consumer convenience. That is why, in addition to focusing on
quality.

Supplier Power

Friend's Fries suppliers have limited bargaining leverage due to their enormous number and small
size. Friend's Fries has sourced food and raw materials from local farmers and ranchers since its
inception. Friend's Fries will also perform quality assurance audits at its suppliers' production plants on a
regular basis. At least once a year, the audit team will inspect the condition of the suppliers' operations.
Questions about worker health, safety, and welfare are also included in audits. As a result, suppliers must
obey the regulations and guidelines established by the company. Friend's Fries has the upper hand due to
its financial power and its ability to buy raw materials in large quantities. As a result, suppliers'
bargaining power is limited, and they are compelled to deliver the required quality at reasonable costs.

Threats of Substitution

Friend's Fries is under a moderate danger of replacement items. Other fast food brands, such as
those providing hamburger sandwiches and other types of fast food, serve as substitutes. Hamburger
sandwiches are a popular fast food item in many local markets. However, there are other options such as
chicken and pizza. The number of domestic and foreign brands has increased, resulting in a rise in the
number of replacement items. While fast food and its products are a direct threat, other local and
worldwide food and restaurant businesses are also a concern. As a result, the overall threat posed by
alternative products remains moderate. Quality and brand are two aspects that help to mitigate the threat
of substitute items.
 CHAPTER 3

COMPANY DESCRIPTION