Fast Food Restaurant Business Plan

FAST FOOD RESTAURANT BUSINESS PLAN
Table of Contents
Executive Plan.............................................................................................................................................3
Mission, Objectives and Keys to success.....................................................................................................4
Mission....................................................................................................................................................4
Vision.......................................................................................................................................................4
Core Values.............................................................................................................................................5
Keys to Success........................................................................................................................................5
Company Summary.....................................................................................................................................6
Our Company Activities...........................................................................................................................6
Company Location...................................................................................................................................7
Potential Products...................................................................................................................................7
Ownership.............................................................................................................................................10
Company Structure...............................................................................................................................13
Operational Requirements........................................................................................................................17
Location and Premises...........................................................................................................................17
Equipment.............................................................................................................................................20
Government Regulations.......................................................................................................................25
Marketing Strategies.................................................................................................................................31
Sales Strategy............................................................................................................................................36
Market Analysis.........................................................................................................................................37
Demand.................................................................................................................................................37
Market Segmentation............................................................................................................................37
Service Business Analysis.......................................................................................................................41
Competition and Buying Patterns..........................................................................................................42
Profitability of Fast food restaurants.....................................................................................................42
SWOT Analysis...........................................................................................................................................44
PEST analysis.............................................................................................................................................46
Financial Statements.................................................................................................................................48
Start-up Costs........................................................................................................................................48
Pro Forma Income Statement...............................................................................................................50

Monthly Cashflow Statement................................................................................................................53
Pro Forma Annual Cash Flow.................................................................................................................57
Pro Forma Balance Sheet......................................................................................................................58
Breakeven Analysis................................................................................................................................59
Risk Analysis..............................................................................................................................................60
Potential Sources of Finance.....................................................................................................................67
Equity Financing....................................................................................................................................67
Debt Financing.......................................................................................................................................68
Top reasons why fast food restaurants fail in Zimbabwe..........................................................................72
Executive Plan
Our company is a fast food restaurant that will be operating in the CBD of Harare. Our products
will include chips & chicken, rice & chicken, rice & stew, sadza& chicken, sadza& stew, rice &
pork, sadza& pork, sausages, hamburgers, sandwiches, hot dogs. We will also sell soft drinks
and juices to complement our food services. We intend to succeed by giving our customers a
combination of delicious and interesting food in an appealing environment, with excellent
customer service, whether on their first visit or their hundredth.
The service will be relaxed, very friendly and correct. We will hire the best people available,
training, motivating and encouraging them, and thereby retaining the friendliest most efficient
staff possible. Our team is comprised of individuals whose backgrounds consist of 20 years
experience in food, restaurant and hotel, catering, management, marketing and finance.
Most important to us is our financial success and we believe this will be achieved by offering
high-quality service and excellent food with an interesting twist. We have created financial
projections based on our experience and knowledge of the area. With a start-up expenditure of
ZWL$14,797,084.40 we can generate ZWL$126,720,000.00 in sales by the end of the first year,
and produce good net profits.
Mission, Objectives and Keys to success
Mission
Our main goal is to be one of the most successful fast food outlets in Zimbabwe, starting with
one retail outlet located in the CBD as a "market tester”. Our company will strive to be the
premier restaurant in the local marketplace. We want our guests to have the total experience
when visiting our company. Not only will our guests receive a great meal, they will also be
provided with a fun atmosphere. We will be doing unique things that will set us apart from the
competition. We will want the dining experience to be as pleasing to the senses as it is to the
palate.
Our main focus will be serving quality food at a great value. We will feature a large selection of
freshly-prepared food, most in full view of our guests. We will feature many items daily that are
full of flavour and zest at an unbelievable price!
Customer satisfaction is paramount. When approached by a customer with a request, our motto
will be, "Yes is the answer; what is the question?" We will strive for broad appeal. We want to
be the restaurant of choice for everyone: families and singles, young and old, male or female.
Employee welfare will be equally important to our success. All will be treated fairly with the
utmost respect. We want our employees to feel a part of the success of our company. Happy
employees make happy guests.
We will combine menu variety, atmosphere, ambiance, and friendly staff to create a sense of
"place" in order to reach our goal of over-all value in the dining experience.
Vision
To offer fresh and delicious food to our customers, coupled with a fun-filled dining experience.
Objectives
· To establish a presence as a successful local fast food outlet and gain a market share in
Zimbabwean’s fast food industry.
· To expand into a number of outlets by year four, and have outlets in other cities like
Gweru, Mutare, Masvingo and Bulawayo.
· Provide an income for founder-owner with income growth possibilities.
· Create an atmosphere where each person can work as a team member, with clear goals
and high standards that profit everyone.
Core Values
· Customer satisfaction
· Commitment to achieving results
· Sustainability
· Corporate Social Responsibility
· Employment Creation
· Innovation
· Integrity
Keys to Success
To succeed in this business we must:
· Create a unique, innovative, entertaining menu that will differentiate us from the rest of
the competition.
· Control costs at all times, in all areas and implement a conservative approach to growth
policy.
· Sell the products that are of the highest quality, as well as keeping the customers happy
with all of our product categories from food to store merchandising.
· Provide 100% satisfaction to our customers and maintaining the level of excellent
services among other competitors.
· Encourage the two most important values in fast food business: brand and image, as these
two ingredients are a couple of main drivers in marketing communications.
· Get access to high-traffic shopping malls near the target market.
· Promote good values of company culture and business philosophy.
· Repeat business. Every customer who comes in once should want to return, and
recommend us. Word-of-mouth marketing is a powerful ally.
· The right food, variety, with a price high enough to establish credibility, but not so high
as to limit customers.
· Hiring the best people available, training, motivating and encouraging them, and thereby
retaining the friendliest, most efficient staff possible.
· Friendly employees.
Company Summary
Our Company Activities

Our company sells various fast foods to the customers in Harare. Our products include chips &
chicken, rice & chicken, rice & stew, sadza & chicken, sadza & stew, rice & pork, sadza & pork,
sausages, hamburgers, sandwiches, hot dogs. We also sell soft drinks and juices to complement
our food services. Our outlet also provides excellent and friendly customer service to support the
ambience of fun, energetic and youthful lifestyle.
Youthful and fresh surroundings

We will imitate successful establishments, such as Chicken Slice and Nandos, which represent
the majority of our core target market. Our customers will also be able to read our in-house
brochures in regards to all knowledge about our featured products. Our store will be decorated
with fast food setting, such as a bright counter and display menu on the wall. We will have very
clean environments, and also provide bins for our customers to dispose of the food containers
and remains. Our employees will continuously clean the floor to make sure that it is smart.
Quality food
Our store will offer nothing but freshly, highly quality and appetizing food.
Open everyday
Our store is open every day from 9am to 7pm. We aim to provide service to everyone, including
those who do not like cooking their own supper, so that they can purchase food before they go
home.
Variety, variety, variety

A different selection of foods will always be available at our outlets, which include chips &
chicken, rice & chicken, rice & stew, sadza & chicken, sadza & stew, rice & pork, sadza & pork,
sausages, hamburgers, sandwiches, hot dogs, soft drinks and juices.
Company Location
Our company locations will range in size from 50 – 70 meter square and will seat from 15 – 25
guests. Our first location will be on the larger end of this range. The 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. We are currently looking at
several possible sites in Harare CBD.
Potential Products
Potential products to sell in your fast food restaurant include chips & chicken, rice & chicken,
rice & stew, sadza & chicken, sadza & stew, rice & pork, sadza & pork, sausages, fish, pasta,
eggs, hamburgers, sandwiches, hot dogs, pizza, cream donuts, soft drinks, pies, and fruit juices.
The important thing is to provide a variety of products for customers to choose from, which are
healthy, well prepared, delicious, affordable and attractive. Your menu will depend on your
target market. It is of great importance to consider the profit margins of your products, as this is a
business and it has to be profitable. The margins in the fast food sector can be as low as 20% and
as high as 70%. You should also strive to push volumes up, in order to increase your revenue and
profits
Steps to take in order to set up your business
Below are the steps which you need to take in order to set up your business
Step 1: You need to have a business plan for your business.
Step 2: If you have chosen a company as the legal structure of your business, then you have to
register the company with the Registrar of Companies Zimbabwe. There are many consultancy
companies which offer those services. If you check the Ads section of the Herald or Sunday
Mail, you will find the contact details of the consultancy companies which offer company
registration. After company registration you will have to open bank accounts for your company.
Step 3: You have to secure the premises where you are going to operate from. This will involve
negotiating the rentals, signing the lease agreements. You will also have to find the people who
will work for you. You have to buy the equipment you will need for your business e.g. stoves.
Step 4: You will then have to seek the shop license from the city council of where you intend to
operate from. Go to the city council in your area, e.g. if you are in Harare you go to Rowan
Martin Building (Close to Rainbow Towers) where the City of Harare offices are located.
Step 5: After securing the shop license, you can then start operating.
Ownership
You must choose a legal structure for your fast food restaurant business, and there are 3 options
you might consider. The structure you choose will depend on the size of your business, along
with your personal circumstances and how much you want to grow the business. Keep in mind
that if you need to, you can change your business structure later on if you find that a new
structure will meet your needs better.
Sole Trader
You can operate your restaurant as a Sole Trader. A sole trader is a person trading on their own.
The sole trader controls, manages and owns the business, is personally entitled to all profits and
is personally liable for all business taxes and debts. As a sole trader you can usually begin the
fast food restaurant business without following many formal or legal processes to establish it, but
you will have to obtain the shop licence. You will employ other people to help run the fast food
restaurant business.
The advantages of operating your fast food restaurant business as a sole trader are that it is a
simple set up and operation, you retain complete control of your assets and business decisions,
there are fewer reporting requirements, and any losses incurred by your business activities, may
be offset against other income earned (such as your investment income or wages). It is also
relatively easy to change your legal structure if the business grows, or if you wish to wind things
up. The disadvantages are unlimited liability which means all your personal assets are at risk if
things go wrong, and it is also harder to raise the start-up capital when you are alone.
Partnerships
In a partnership, two or more people run a business together. Each partner shares responsibility
for running the business, shares in any profit or loss equally, unless the partnership agreement
states otherwise, and is liable for any debt within the partnership. A partnership is relatively
inexpensive to set up and operate. It is wise to establish your partnership with a formal written
partnership agreement.
The advantage of a partnership is that it is easier to raise the start-up capital, as all the partners
will contribute towards the start-up capital. If 2 or more of the partners are actively involved in
the business, there will be an advantage of skills diversification, whereby one might have
experience in the fast food business, and the other experience with accounting issues etc. The
combined skills, experience and knowledge can provide better products and service in the fast
food restaurant. You can also consider a partnership if you are based outside Zimbabwe, and you
find someone in Zimbabwe who will run the business on your behalf. A partnership is also
simple and inexpensive to set up, there are minimal reporting requirements, and you can share
management/staffing responsibilities.
The disadvantages of a partnership include potential for disputes over profit sharing,
administrative control and business direction. Another disadvantage is joint and several liability
of partners, which means that each partner is fully responsible for debts and liabilities incurred
by other partners – with or without their knowledge. Changes of ownership can be difficult and
generally require a new partnership to be established.
Company
A company exists as a formal and legal entity in its own right. It is separate from its
shareholder(s) or owner(s).It’s responsible in its own right for everything it does and its finances
are separate to your personal finances. Any profit it makes is owned by the company, after it
pays Corporation Tax. The company can then share its profits. It will have to be registered at the
Registrar of Companies. A company is a complex business structure, with higher set-up costs
and administrative costs because of additional reporting requirements.
The advantages of registering your business as a company include limited liability to the owners
of the business, ability to raise significant amount of capital, and it is also easy to sell and pass
own ownership. A company will require you to open bank account, and as registered company
you will then have access to loans and credit facilities for you business. Operating as a company
increases trading confidence and credibility. Customers and suppliers will feel more confident
and comfortable doing business with you. A company will also be able to qualify to apply for
any formal tenders in the market
The disadvantages include significant set-up costs and maintenance costs, limited or no control
of company affairs, complex reporting requirements and company can't distribute losses to its
shareholders.
Company Structure
MANAGER/ACCOUNTANT
COOKING STAFF/ SALES STAFF

LOGISTICS
The required staff will depend on the scale of the business. This is just a simplified structure for
a small fast food restaurant.
Management
The initial management team depends on the founders themselves, with little back-up. As we
grow, we will take on additional help in certain key areas. Part of our basic philosophy will be to
run our executive management "lean and mean." We will not add additional overhead until
absolutely necessary. This will mean that the initial staff support team will have to "wear many
hats," so to speak. By doing this, we will keep our overhead as low as possible, allowing us to
adequately staff our restaurants. This will also allow our business partners to recoup their initial
investments as quickly as possible and enjoy a higher return.
Our company will implement specific strategies to attract and retain senior management with
extensive experience in the fast-food market and to maintain an experienced employee base.
These strategies include:
· The use of incentive-based remuneration structures that are linked to key performance
indicators;
· The availability of work skills and training programmes; and
· Opportunities to study towards nationally recognised qualifications.
All of these initiatives seek to lower the level of employee turnover experienced by our
company. The benefits of lower staff turnover are:
· Improved customer service levels;
· Lower operational costs and increased efficiencies, revenues and profitability; and
· Reduced risks
MANAGER/ACCOUNTANT
One person can act as the manger and accountant. This person will usually be the owner of the
business. In addition to the management of day to day operations, the manager, as principal
within the company, will oversee menu development, purchasing, portioning, pricing and
inventory control, including approval of all financial obligations of the company. The manager
will plan, develop, and establish customer service policies and objectives, and write, explain, and
enforce an employee's manual for all employee-related policies. The manager will be responsible
for hiring and firing employees.
The duties will include:
· Staff management, supervises and coordinates activities of all the workers, assigns
workers to duties
· Directs maintenance and repair of facilities and equipment

· Trains new workers
· Day-to-day operational decisions
· Business planning and operations, strategic planning, business management
· Giving employees their salaries
· Prepare, examine, and analyze accounting records, financial statements, and other
financial reports to assess accuracy, completeness, and conformance to reporting and
procedural standards.
· Analyze business operations, trends, costs, revenues, financial commitments, and

obligations, to project future revenues and expenses or to provide advice.
· Develop, maintain, and analyze budgets, preparing periodic reports that compare
budgeted costs to actual costs.
· Compute taxes owed and prepare tax returns, ensuring compliance with payment,
reporting and other tax requirements.
Sales Staff
· Carry out marketing activities for the company
· Perform till operations
· Distribution of flyers
· Recommendation of food to customers
Cooking and Logistics staff
· Preparation of the food
· Buying ingredients and food supplies
· Serving the customers

· Managing the company inventory

Operational Requirements
Location and Premises

Choosing a location
There are different kinds of locations where you can locate your fast food outlet/restaurant. We
will look at some options you have below.
CBD/Town centres
Most fast food restaurants are located in city centres due to the high walk in traffic available. The
CBD is the centre of the business, and thousands of people flock to it daily. These are all
potential customers, as they would want to eat and feed themselves. Many companies are located
in the town centres, and all the employees will want to eat during the day.
Advantages of locating your fast food outlet in the city centre include high walk in traffic at all
times of the day, thus the food outlets will likely to be busy all the time. Another advantage is
that town centres are centrally located, thus you get all kind of customers e.g. those who will be
coming from the low density suburbs, and also those from the high density suburbs. It is also
usually easier to find space for your food outlet in the town centres, compared to shopping
centres. The disadvantages of locating your fast food restaurant in the CBD are that the rental
charges are more expensive than outside the CBD, and there is also intense competition from
other fast food restaurants.
Shopping Centres
Shopping centres are usually located in the high and low density suburbs of the towns. For
example Glen View 1 shopping centre is located in Glenview 1 suburb, and Avondale shopping
centre is located in Avondale suburb. The potential customers of a fast food restaurant located at
shopping centres are already defined as those in low density suburbs will be exposed to high
income earners, while shopping centres in high density suburbs will be exposed to low income
earners.
One advantage of opening your fast food restaurant at a shopping centre is that you can easily
target your segment e.g. by locating in low density suburbs you will have targeted the high
income earners. The other advantage is that rentals are cheaper at shopping centres as compared
to city centres. You will also get a consistent traffic of customers who will be coming from the
suburb where your fast food restaurant is located. One disadvantage is that there is limited
number of potential clients as compared to city centres.
Identification and assessment of new sites

Our company will review and assess potential new sites using a range of factors such as
demographics, population and population growth, actual and expected time frames for receiving
government planning approvals and actual and expected commercial activity. The potential
locations should also have parking space for our customers. An evaluation will performed to
compare the potential site to established benchmarks for profitability and return on capital
employed and to ensure that any cannibalisation of existing restaurant profitability is identified
and minimised.
Our company will also periodically consider developments in conjunction with petrol station
operators to co-locate on larger regional sites. This will assists our company by reducing the
overall site cost and allowing it to access sites that are otherwise not economically viable.
Practicalities of renting premises
Before renting a location it is critical that you consult the experts. A lawyer will be able to advise
you on legal points arising from the lease, the legal agreement between you and the landlord.
Think carefully before signing any agreement. Do not sign anything unless you completely
understand it and agree with it. Here are some of the things you will need to think about:
The rent ‐ Not only what it will be when the lease begins, but how much it could go up by.
The length of the lease: How long you want to commit yourself to renting the premises.
Remember that unless your landlord agrees that you can give up your lease or transfer it to
someone else; you will have to pay rent for the whole period of the lease, even if your income
dries up. Leases typically have agreements of between one and 25 years. Don’t lock yourself into
a long lease, at least not the first few years that you are in business. If your restaurant fails you
don’t want to be locked into four more years of rent that you cannot pay.
Quitting ‐ How easily could you give up renting if you no longer need your premises or run into
financial difficulties? Will you be able to transfer the premises to someone else? Will the
landlord allow you to give up? Do you have the opportunity to ‘break’ (end the lease) at certain
intervals – this would allow you to choose whether or not to continue renting the property;
Insurance ‐ The landlord may expect you to insure the premises yourself, or to pay for the
insurance if the landlord takes it out.
Repairs ‐Are building repairs included in the rent. If you make significant repairs to the
plumbing or heating, then ask if they can be deducted from your regular rent. Most landlords
would rather give free or reduced rent one month than shell out cash to make repairs.
Guarantees ‐ The landlord may ask you for a financial guarantee, or may ask you to provide a
guarantee or anyone who takes over your lease. If things go wrong, a personal guarantee could
bankrupt you and make you homeless.
Protection when the lease ends ‐ Will you have the right to renew the lease when it comes to an
end?
The landlord ‐ Is he or she someone you want to have a working relationship with?
The History of the property ‐ Find out the history of the property and whether any other
businesses have failed there and why. Was the property a restaurant before? Ask neighbouring
tenants for their input.
Will the space work for a restaurant. – Is there suitable ventilation, services, power etc? Finally
before renting a property, make sure you can get planning permission to make any changes you
need to the property.
Other Location Considerations
When making the analysis of potential sites take into account the following factors:
Who are your potential guests? What are their needs and purchasing possibilities? What is the
environment of the potential location for your restaurant? Location also determines menu item of
your restaurant, same as restaurant design and concept. Are there around some business
buildings, universities, schools? Follow the competition and how they do their business.
You should think also about accessibility, number of parking places, visibility and traffic around
your restaurant. These are all questions that you need to bear in mind when choosing a location
for a restaurant. Of course different types of restaurants require different locations or if you’ve
already picked a location your restaurant brand should fit with it. For example if the brand is
urban and trendy, a downtown crush with lot of traffic will be the best choice. But if you offer
romantic dining maybe it would be better to pick some more quiet location.
Equipment
The equipment you will need for a restaurant/fast food outlet will largely be contingent upon the
type of restaurant you open, and the products you want to offer. Most restaurants require
refrigerators and freezers for storing cold foods. Milk, eggs and most meats will require
refrigeration. Ovens, stoves and microwaves are also a necessity.
Other equipments to consider are sinks, pots, pans, various cookware, tableware, mixers, dicing
equipment, cutlery, stainless steel tables and cutting boards for meal preparation, meat grinders,
dish washing machines, dough rollers, bread slicers, cutlery, trays, knives, aprons, plates, cups,
fire extinguishers, cleaning equipment.
Buying the kitchen equipment and fitting out your restaurant will probably be your biggest
expense when starting up a restaurant. Look into buying second hand equipment. You may find
that another entrepreneur's misfortune will contribute to your success. Recently failed restaurants
probably left the owners needing money to bail them out of debt. One way that these
entrepreneurs recover finances is to dump their equipment quickly, often for far less than they
paid for it. Use this opportunity to get the equipment you need at a fraction of the price. Look in
the newspaper and online on classified ad sites to find where these sell offs are happening.
Freezers And Refrigerators
Obviously all commercial kitchens require a refrigeration unit of some type. Refrigerating food
items prevents them from perishing quickly, preserves freshness, and provides cold food storage
space. Industrial-grade refrigeration units are designed to meet the unique needs of the food
industry, so they're a key purchase for any food handling operation. There are many varieties of
coolers and freezers available, but your purchasing decisions will generally involve two types:
reach-in or walk-in units.
Before making a decision, consider the size of your operation. Although they have larger cold
storage space and can be custom built to fit any kitchen, smaller restaurants may not require a
walk-in cooler. There are even outdoor refrigeration and freezing options available if interior
space is an issue. Regardless of the type you choose, your cooling unit will be essential to your
business. Seek professional help for installation and make sure you know how to properly
maintain your unit as it can be costly to repair.
Cooking Equipment, Ovens and Stoves
Choosing the right cooking equipment is very important because the equipment has to be suited
for the preparation of the food offered in your restaurant. For instance, if your restaurant makes
pizzas, then it is certain that you will need ovens and grills for preparing pizzas. Therefore, it is
important to choose cooking equipment based on your restaurant offerings. On the other hand, if
your restaurant is the buffet type, then cook and hold ovens will be ideal. These are important
decisions when it comes to choosing the appropriate cooking equipment. Most restaurant food is
cooked in ovens, stoves (gas, electricity or fire) and microwaves. The size and type of stove is
largely determined by your potential sales volume and needs.
The first thing to consider when buying an oven is whether you need an oven that is powered by
gas or electricity, since this will quickly help you to narrow down the abundant options available
to you. Next, consider the design of your kitchen and the space available for all of the equipment
you will need. It is a good idea to consult with a professional that can help you to maximize
efficiency in your kitchen and still fit all of the necessary equipment into the space available.
Investing in deep fryers should not be such a bad idea, especially, if your restaurant includes
deep frying chicken and meat among others. Other restaurant cooking equipment that might
come handy to your restaurant business includes chair boilers and griddles, especially if your
restaurant includes vegetarian menu. Commercial toasters, steamers, and warmers are also good
additional supply for your restaurant.
Cooking equipment comes in a wide range beyond the aforementioned equipment list. Therefore,
it is important to list down your needs before setting out to buy. If you were working on a
constrained budget, you will need to prioritize your needs. However, price should not be the only
determining feature on whether or not to buy cooking equipment for your restaurant. If need be,
you should consult with the professionals in the industry, especially when it comes to the
determining the best cooking equipment.
Food Preparation Counters
Prep tables, counters, and cutting surfaces are essential to any commercial kitchen and come in
various sizes. Choose preparation surfaces made of stainless steel. Stainless steel is sturdy
against corrosion, resists attack from food and meat juices, and can withstand the harsh cleaning
products used in commercial kitchens.
As for cutting surfaces, choose either plastic or wooden cutting boards. Plastic boards are easier
to sanitize but can develop deep grooves that can hide bacteria. Wooden boards are generally
tougher than plastic ones and don’t develop grooves as easily.
Slicers
Slicers are often tasked with cutting meat, cheese, or other foods with speed and precision. If you
need to purchase a slicer, consider how often you’ll need to use it. If your slicing is low volume
or infrequent, a manual food slicer is a better, less expensive option, however for larger amounts
of food or foods that need to be cut to specific proportions, choose an electric slicer instead.
Electric slicers are automatic, which can save you time and labor. Moreover, most electric slicers
allow you to turn off the automatic function and operate the machine manually.
Mixers
If your operation involves baking or bread making, a commercial mixer is a mandatory purchase.
Just like slicers, it’s important to choose a mixer based on the volume of food you’ll need and
how frequently the mixer will be in use. If you need to mix dense materials for doughs like that
of bagels or pizza, buy a spiral mixer. Spiral mixers are named after the spiral-shaped agitator
(the mixing appendage). They mix at fast speeds and are capable of handling fifty to six hundred
pounds of dough.
For all other types of mixing, choose a planetary mixer. Planetary mixers offer versatility to your
kitchen. Named after the way the mixing bowl rotates around the agitator, planetary mixers have
lower mixing speeds than their spiral counterparts but allow you to make various things like
whipped cream and mashed potatoes. These mixers come in both countertop and floor types,
which can handle up to twenty and two hundred quarts, respectively.
Sinks
Sinks are vital to any kitchen because they provide running water as well as washing space for
food and dishes. Local health authorities typically require commercial kitchens to install a triple-
sink wash station and a commercial dishwashing unit.
Shelving
Appropriate shelving can provide an ideal solution for storing various appliances in your kitchen
as well as perishable and nonperishable foods. Moreover, having an organized storage system
will help streamline your kitchen operation. Shelves and racks come in a variety of sizes and
materials to satisfy your aesthetic preferences and storage needs.
Safety Equipment
Make sure your kitchen has proper safety equipment. Check your local fire department
guidelines before purchasing any fire, safety, or sanitation equipment, and avoid potential
complications by keeping your kitchen up to fire code standards.
Point of Sales System
One of the most important pieces of restaurant equipment is a point of sale system. A POS
systems can make your life easier by tracking your sales and inventory. POS systems help
specify the exact amount of product used for each purchase. Hence, you will subsequently be
able to calculate cost of goods sold, one of your most significant restaurant expenses. POS
systems connect register transactions to your restaurant computer. These POS systems also allow
you to print out reports so you can study ways to lower food costs.
Furniture
Furniture includes chairs and tables for the customers, and storage cupboards for food supplies.
Renovations and Interior Design
You may have to renovate your space to make the building proper for a restaurant, and to meet
Health department standards. Some interior designing may also be required to make the inside of
the restaurant appealing to customers.
Government Regulations
City of Harare Licence
You are required by law to have a licence for your shop. You obtain the licence from the city
council offices in your area. Below are the steps and fees of obtaining the license;
Procedure for Application for a Shop License
1. Pay ZWL$552 submission fee at banking hall (Rowan Martin Building/ City of Harare),
ground floor. Take receipt to Licensing office, also on ground floor.
2. Pay for shop license fee of ZWL$6 758 per annum
3. A Health inspection form will be issued, and a health inspector will look at your premises
and then completes a form.
Infrastructure Checks
The health department will check the below:

1. Building with approved plans
2. Male and female sanitary fitments
3. Approved means of lighting and ventilation
4. Approved wall and floor finish
5. Operating and storage space
6. Approved waste storage facilities
ZIMRA Registration
Income Tax
· All clients, including individuals, companies, partnerships and cooperatives who want to
venture into any business venture are required to register with ZIMRA and comply with
all obligations as stipulated in the legislation. To register, you are required to have a bank
account among other requirements.
· Once you have a bank account, you can then approach ZIMRA for registration. You will
be required to complete registration forms depending on the nature of your business
operations. All clients will be required to complete the REV 1 form, which can be
obtained from ZIMRA offices or can be downloaded from this website. Once registered,
you will be issued with a Business Partner Number (BP) which acts as the business’
identification number and is used for all transactions with ZIMRA, including remittances
of tax.
· After commencing operations, you are required to keep records of all your business
operations and pay Provisional Tax on the stipulated dates (as shown below). The dates
are referred to as Quarterly Payment Dates (QPDs). The Provisional Tax payable is based
on the respective percentage of estimated annual tax due. The annual estimated tax due
should be revised to update the estimate every quarter.
· The form ITF 12B, which is a return for provisional tax payments, has to be completed in
respect of these payments.
· The payment dates and the percentage of tax due for each tax year are listed below:
Installment Due
Due Date (as a % of the
QPD
(on or before) annual tax
payable)
1st QPD 10%

25th March
25th June 25%
2nd QPD
3rd QPD 30%

25th September
4th QPD 20th December 35%
·

· Some businesses, operators are required to pay Presumptive Taxes and this includes
operators of omnibuses, taxi-cabs, driving schools, goods vehicles, hairdressing salons,
informal traders, operators of restaurants or bottle stores, small scale miners, cottage
industry operators, operators of commercial waterborne vessels used for the carriage of
passengers for profit and fishing rigs.
· A tax return is required after the end of each tax year. The tax year runs from 1 January to
31 December of each year. Clients who have been specified in terms of Section 37A of
the Income Tax Act [Chapter 23:06] as being on Self-Assessment are required to furnish
Self-Assessment Returns in duplicate by 30th April of the following year.
· Operators will also require a Tax Clearance Certificate - form ITF 263 which is issued
by ZIMRA once you have met all the stipulated obligations which include submission of
tax returns and remittances of tax due. If you do not have this clearance, anyone who
pays you any amounts in excess of ZWL$250.00 are required to withhold and remit to
ZIMRA 10% of the amounts paid.
· There is need to strictly observe the requirements in Section 80 of the Income Tax Act
[Chapter 23:06]. It requires that all registered business taxpayers who enter into any
contracts which result in an obligation to pay any amounts whose total or aggregate is
ZWL$250.00 or more to withhold 10% of each amount payable to payees who fail to
furnish valid tax clearance certificates.
PAYE
· Every business person who becomes an employer is required to apply to the

Commissioner General for registration within 14 days of becoming an employer.
· The employer will be given the relevant tax deduction tables and informed of his/her
obligations as an employer.
Some of the obligations include:
· Calculation and deduction of PAYE in accordance with the tax deduction tables
· Remittance of PAYE to ZIMRA within 10 days after the end of the month during which
the amount was withheld. Please note that with effect from 1st September 2010, the
remittance of PAYE was moved from within 10 days after the end of the month during
which the amount was withheld.
· Keeping accounting records for a period of at least six (6) years.
· Submission of the ITF 16 return which contains details on annual earnings, deductions,
credits and PAYE for each employee within 30 days after the end of the year.
· You will note that failure to withhold any amounts which you are required to withhold
renders you liable to the amounts due as well as penalties and interest. Observing these
basic requirements will assist you in running your business professionally and helps
avoid the anxiety and stress associated with noncompliance and having to pay arrears,
interest, fines and penalties.
Customs and Excise
· In the event that you intend to import goods, you are still required to have registered with
ZIMRA so that you have the BP number that will identify you as an importer. You will
need a clearing agent approved and registered with ZIMRA to handle your importations
or you may register with ZIMRA to do your own clearances.
· For exports, you will also need an agent to handle the exports or register on your own
with ZIMRA.
· You are required to keep reasonable and proper records and books of accounts for all
transactions and maintain records of all the bills of entry, bills of lading, rail notes,
invoices and all other documents required to be accounted for in terms of the Customs
and Excise Act. Retain all records for at least six (6) years.
Value Added Tax (VAT)

· Any person who carries on trade in taxable supplies and whose annual taxable turnover
exceeds or is likely to exceed ZWL$60 000.00 must apply to register for VAT on Form
VAT1.
Responsibilities upon registration include:
· Keeping accounting records for a period of at least six (6) years after the tax period to
which the period relates.
· Completing and submitting VAT returns even if you do not owe ZIMRA. ZIMRA will
advise you of the frequency of submitting the returns though most clients submit returns
either monthly or after every two months.
· Calculating and remitting the VAT due to the Commissioner on or before the due date.
· With effect from 1st January 2012, the due date for the submission of VAT returns and
payment has been extended from the 20th to the 25th of the month following the end of
the tax period.
· Issuing tax invoices for any taxable supply whose value is more than ZWL$10.00.
· Record transactions electronically. With effect from 1st of October 2011, all registered
operators are also expected to comply with fiscalisation regulations .This is a requirement
where registered operators under category “C” and whose annual turnover exceed
ZWL$240 000.00 are expected to record transactions electronically.
· Advising ZIMRA of any change in business details, including address, addition of/or
change of partner, cessation of trade, etc.
· Allowing ZIMRA officials to enter your business premises and examine goods and all
business records.
Marketing Strategies
We realize that the success of our company will have to be achieved by doing more than serving
great food, and providing friendly service. We will utilize a marketing plan to build customer
traffic. At our company we will continually strive to win more customers by being proactive
rather than reactive in our marketing efforts and stay current with popular industry trends.Our
marketing strategy is based upon the marketing mix, which are the 4 p’s of marketing, which are
product (service), price, promotion and place (distribution).
Product/Service
Within the restaurant industry, customer service has always been the major draw for the dining
clientele. Food and atmosphere is far out-shadowed by superior customer service that turns a
new customer into a repeat customer. Management will demand the wait-staff provide the very
best in quality services to the customer, making certain that they are content and satisfied with
their dining experience. Wait-staff are thoroughly trained, and every 90 days they undergo a
performance appraisal. This is part of our Employee Manual, and Operations Manual guide.
Customers will be pleasantly surprised at how attentive our fast food restaurant is in regards to
their needs. The business operates on the assumption that it will do whatever is reasonably
necessary to keep the customer happy. This reflects the notion that if the customer is kept happy;
long-term profits are ensured.
Our fast food restaurant will offer high quality food. We will offer a wide variety of foods for
customers to select from. This will attract many customers, as we will be able to meet their
needs. It will also create repeat customers as they will certainly enjoy our food.
Price
All menu items are moderately priced. While we are not striving to be the lowest priced
restaurant around, we are aiming to be the value leader.The quality of our food will support the
prices we charge.
Promotion
Our fast food restaurant will use various ways of promoting our company so as to gain more
customers and increase general awareness of our fast food restaurant and the products we offer.
Word of Mouth
We believe that the best form of advertising is still "word-of-mouth." By providing an

entertaining environment, with unbeatable quality at an unbelievable price in a clean and friendly
restaurant, we will be the talk of the town. Therefore, the execution of our concept is the most
critical element of our plan.
Community Involvement
Our restaurant team will also be active in the local community and we plan to take an active role
by participating, sponsoring, and donating to local churches, sports clubs or teams in the market
area.
We will also strive to develop rapport with local business as a quick, comfortable lunch choice.
In the future, we plan on establishing a marketing campaign to call on the local business in the
market area, deliver samples, and encourage them to consider our restaurant as the restaurant of
choice for their next business luncheon.
Fliers
We will use colorful, informative fliers to increase awareness of our fast food restaurant in
Harare. These fliers will be distributed to random people in the CBD, especially close to where
we are located. We hope to get potential customers from the distribution of fliers.
Newspapers
We will place adverts in the Sunday mail so that more people can be aware of our fast food
restaurant. Placing our advert in the Sunday mail will ensure that our advert will be read the
whole week as it is a weekly newspaper. It will also ensure that we reach the all age groups as it
is a family newspaper. It also has a wide coverage in Zimbabwe and it is read by many people.
ZBC TV and Radio

We will place our adverts once every month on Radio, and once every 3 months on ZBC TV.
Television and Radio have a wide coverage in Zimbabwe, though they are more expensive than
other forms of advertising. We will advertise on ZBC TV and radio stations which include Star
FM and ZiFM. This will make more Zimbabweans aware of our fast food restaurant.
Public Transport Advertising
We will advertise our fast food restaurant on commuter omnibuses which commute from Harare
CBD to different locations in Harare. This will make more people aware of our fast food
restaurant.
Internet Marketing
Our company will have a dedicated website. It will be the virtual business card and portfolio for
the company, simple, contemporary and well designed. Our site will offer our menus,
prices, reviews and happenings at our company. This will attract more customers to our
restaurant.
We will also have active social media accounts on Facebook, Twitter and LinkedIn. The internet
is a very powerful marketing tool. We will also advertise our products on many Zimbabwe
advertisement websites. An increasing number of Zimbabweans are using the internet every day.
These internet marketing strategies will make more people aware of our fast food restaurant and
products.
Place/Distribution
Our fast food restaurant will be located in Harare CBD to take advantage of the high walk in
traffic available. The CBD is the centre of the business, and thousands of people flock to it daily.
These are all potential customers, as they would want to eat and feed themselves. Many
companies are located in the town centres, and all the employees will want to eat during the day.
Other Strategies
Ongoing operational excellence

Our company will continually focus on improving the customer experience, the quality and skills
of its workforce, and the speed of service. Improving these areas drives increased restaurant
revenue, reduces costs and enhances profitability. Operational initiatives and innovations have
the potential to increase the efficiency, revenues and profitability of existing restaurants through
new menu items and improvements to its menu range and better labour and space utilisation in
its restaurants.
Expanding product range and day parts
The introduction of new products and the expansion of existing products to target new day parts
is designed to increase the revenue and profitability of existing restaurants. Future initiatives for
our company in this area may include extending opening hours to target different parts of the
day.
Establishing new restaurants
Our company will have an active programme for the establishment of new restaurants. Our
company will seek sites to establish new restaurants. Our company will also assess the closure of
restaurants in appropriate circumstances. For example, we may close a restaurant if commercial
renewal terms cannot be agreed with the owner. Restaurants can also be closed if management
believed that the demographics or market conditions at a particular restaurant no longer
supported the restaurant.
Customer Database
We will have a customer database which we will continually update. We will also offer a weekly
or monthly drawing for our customers to win our company’s T-shirts and free meals.
Loyalty Program/Birthday Program
Our company will offer a birthday/loyalty club providing a complimentary hamburger or chicken
sandwich or wrap to the for the birthday person.
Sales Strategy
Our strategy is simple: we intend to succeed by giving our customers a combination of delicious
and interesting food in an appealing environment, with excellent customer service, whether on
their first visit or their hundredth.
Our marketing strategies are designed to get critics and initial customers into our doors. Our
sales strategies must take the next step and encourage customers to become repeat customers,
and to tell all their friends and acquaintances about the great experiences they just had at our fast
food restaurant.
New restaurants often make one of two mistakes: they are unprepared or underprepared for
opening, and initial poor service, speed, or quality discourages customers from returning, or they
spend all of their efforts at opening, and are unable to maintain the initial quality customers
expect on return visits, decreasing word of mouth advertising and leading to poor revenues.
Our company sales strategy requires consistently high quality food, service, speed, and
atmosphere. We can accomplish this by:
· Hiring employees who genuinely enjoy their jobs and appreciate our company unique
offerings
· Continually assessing the quality of all aspects mentioned above, and immediately
addressing any problems
· Interacting with our customers personally, so they know that their feedback goes directly
to the owners
· Evaluating food choices for popularity, and keeping favourites on the menu as we rotate
seasonal foods and specials
Market Analysis
Demand
The demand of fast foods in Zimbabwe is very high. The dollarization in 2009 stabilized the
economy, and the disposable income increased. The increased urbanization is leading to
increased demand in the fast foods sector. More people are flocking to urban areas from rural
areas, and pushing the demand of fast foods upwards.
The increased competition in the fast food sector, coupled with lower costs of production due to
cheaper chicken, and cheaper imports from South Africa, has pushed the prices of the fast-foods
down, leading to higher quantity demanded. Due to the high competition in the sector, fast foods
are now offering various promotions, variety of appetizing foods due to greater innovation within
the sector, and other marketing techniques, as a way to lure customers, and as a result the
demand for fast foods in increasing. Zimbabweans are also increasingly cooking less at home,
and buying out more often at fast food outlets.
Market Segmentation
The Business Person: They work hard all day. They need a competent establishment that helps
impress clients and prospects. Afterward, they want to relax and use the money they are
making (or expensed by their company). They spend the most on drinks and food. Our fast food
restaurant cosmopolitan flair and comfortable atmosphere will be perfect for sophisticated
business people, whether they live in and around Harare or are here for work.
Couples: The restaurant will have an intimate, romantic, enticing adult atmosphere that suggests
"date." Our fast food restaurant will be the best date location in town. These young couples are
generally very successful working professionals. In most cases they are budgeting to eat out on a
regular basis, as they don't have the time to prepare food nightly.
High-end Singles: We will attract them with our eclectic atmosphere and layout. Our striking
decor, entertainment and events, excellent service and engaging clientele will confirm the feeling
of being in "the in place" in Harare. These are the individuals that pride themselves on
socializing and dining at the premier locations - The Image Seekers.
Families: Families usually go out for food/dinner in restaurants/fast food outlets. Our fast food
restaurant will provide a family-friend atmosphere where the whole family including kids can
enjoy their meals.
Unemployed/Vendors: These are the people who spend the day roaming the streets of Harare or
selling their products in the streets and flea-markets of Harare. They usually buy low cost meals
at restaurants/fast food outlets.
Bachelors: These are the men who are not yet married and often do not like cooking on their
own and thus prefer to buy food from restaurants/fast food outlets.
Market Needs
Customers desire fast, healthy food that will appeal to their aesthetic tastes and is provided in a
comfortable atmosphere. In addition, they desire a memorable dining experience that provides
them with the chance to relax in the middle of the day. All of this needs to be delivered to the
customer with the least amount of hassle. Furthermore, customers will also need a facility that
can provide them with delicious, convenient take-home meals when there is no opportunity to
cook at home. Customers also want variety and flavour in their foods. They want a clean,
friendly, and attractive dining environment.
Industry Analysis
The Zimbabwean food industry is composed of many fast food outlets, restaurants, hotels.
Fast Food outlets
There are a lot of fast-food outlets in Zimbabwe which are being run by different entrepreneurs.
They sell a variety of foods including burgers, chips, chicken, sausages, sadza, rice, chicken,
sandwich, beef etc.
The market leader in the Zimbabwe fast food sector is Simbisa Brands (Formerly Innscor Foods
Zimbabwe) —which runs Nandos, Bakers Inn, Chicken Inn, Pizza Inn and Steers. Innscor Foods
Zimbabwe enjoyed a near monopoly in the fast food industry in the country for several years
before the coming on board of other brands like Chicken Slice. Innscor Foods commands a huge
market share in the fast food industry of at least 45%. It has branches in all the major towns of
Zimbabwe.
The other significant player in the fast food industry is Packers International which runs Chicken
Slice, Creamy Slice and Pizza Slice. Chicken slice is expanding the number of branches it has,
and is increasingly gaining more market share. There are also international franchises on the
Zimbabwean market which are Mugg and Bean, News Café and Ocean Basket and KFC, though
they are still yet to expand. KFC has indicated it has intentions to expand in Zimbabwe by
having at least 50 fast food outlets.
Hotels
Hotels in Zimbabwe provide food which is of high quality and expensive. Most hotels in
Zimbabwe are located where there is less traffic congestion hence it is highly accessible by
potential customers who want to eat at various hotels. Top hotels in Zimbabwe include Meikles
Hotel, Crown Plaza, Rainbow towers, Holiday Inn and Jameson hotel. The big players in the
hotel industry occupy skyscraper buildings which have many floors. The hotels will contain bars
and restaurants within. The targeted customers of the restaurants within hotels are those who
would have booked for accommodation in the hotel, and externals who also come for conference
and meetings. The foods sold in those hotels are expensive and have a high profit margin. The
food is of high quality and well cooked, that’s why it is expensive, and they will also be targeting
high income earners, who are less sensitive to the prices.
The hotels serve a variety of meals which include breakfast, lunch, dinner and snacks. Demand
for hotels is especially high during the festive season like Christmas, which is the time which
many families decide to eat out. It also gets high when there are church or other organization’s
functions which attract local and international guests.
Restaurants
Restaurants in Zimbabwe can be grouped into 3 classes: High End Restaurants, Medium class
restaurants and Low End Restaurants.
High End Restaurants
These restaurants target the high income earners, and most of them are located in or close to the
CBD, and in the low density suburbs and shopping centres. The food in these restaurants is
expensive just like the food in the five star hotels. High end restaurants in Harare are mostly
located in areas such as Sam Levy Village, Avondale, Belgravia and Gunhill.
Medium class restaurants
They target medium income earners. The price of the food in these restaurants is moderately
priced. They are usually located in the CBD to cater for the working class during their lunch
hours. In Harare, at Eastgate shopping centre you can find plenty of such restaurants.
Low End Restaurants

These restaurants have low prices and will be targeting the low income earners. They are found
in the CBD and at shopping centres in the high density suburbs and at growth points. Since the
restaurants are targeting the low income earners, prices will be low.Some of them are not
licensed and operate in backyards of major buildings to avoid detection by law enforcement
agents.
Service Business Analysis

The fast food industry in Zimbabwe has experienced growth in the last decade. Many factors
contributed to the large demand for good restaurants/takeaways in Zimbabwe today. The
dollarization in 2009 stabilized the economy, and the disposable income increased. The increased
urbanization is leading to increased demand in the fast foods sector. More people are flocking to
urban areas from rural areas. The competition is strong, with many fast food outlets competing
for the consumer dollar. Only the strong will survive and prosper. Due to intense competition,
restaurateurs must look for ways to differentiate their place of business in order to achieve and
maintain a competitive advantage.
Due to the high competition in the sector, fast foods are now offering various promotions, variety
of appetizing foods due to greater innovation within the sector, and other marketing techniques,
as a way to lure customers, and as a result the demand for fast foods in increasing. Zimbabweans
are also increasingly cooking less at home, and buying out more often at fast food outlets.
The restaurant industry is highly competitive and risky. Most new restaurants opened by
inexperienced owners struggle or fail. However, those based on solid understandings of the
market needs, and management of inventory and staff have a much higher chance of success,
especially when combined with prior experience in the restaurant industry.
Restaurants make money by taking inexpensive ingredients, combining them in creative ways,
cooking them properly, and selling them at a much higher price. Any ingredients wasted in the
kitchen are money thrown out. Any time wasted in seating customers, taking orders or preparing
food is money walking away. While some entrepreneurs think that success is as simple as a good
location and a trendy concept, we know the truth:
To succeed in the restaurant industry, you need an understanding of the risks and financial
conditions, the ability to handle enormous pressure, and the right organizational skills
Competition and Buying Patterns

Customers consider a lot of factors when choosing fast food restaurants. The high income
earners are naturally attracted to high end fast food restaurants, which corresponds to their class.
Medium income earners are attracted to medium class fast food restaurants; while low income
earners are attracted to low end fast food restaurants. When choosing fast food restaurants,
consumers also consider menu. They tend to prefer fast food restaurants where they can get a
variety of foods to choose from on the menu. Customers, especially the low and medium income
earners are price sensitive, and will also consider the prices offered by the fast food restaurants.
They would not go to the fast food restaurants whose prices they consider to be too high.
Location is another important factor. Customers tend to go to fast food restaurants whose
location is convenient to them. Fast food restaurants with good customer care are preferred by
customers than those with bad customer care. Once a fast food restaurant has bad customer care,
it will lose customers. The type of foods offered is another important factor. They will go to fast
food restaurants which have the type of food they want at that moment e.g. sandwiches, pizza, or
Sadza and Chicken. Quality of food is also another important factor. High quality, delicious food
is preferred by customers. Customers also want healthy food, and thus consider the hygiene of
the fast food restaurants and the workers.
Customers also prefer to go to fast food restaurants where there are promotions and special
offers. For example when Chicken inn had its 2 piecer + 1 piece free promotion, it gained a lot of
customers who otherwise would have been taken by Chicken Slice. Chicken Inn Terrific
Tuesday’s pizza promotion also attracted a lot of customers.
Profitability of Fast food restaurants

The profitability will depend on the products you are selling, your pricing strategy and the
volumes. It is of great importance to consider the profit margins of your products, as this is a
business and it has to be profitable. The gross profit margins in the fast food sector can be as low
as 20% and as high as 70%. You should also strive to push volumes up, in order to increase your
revenue and profits. By pushing volumes, you will be able to get enough revenue to cover your
fixed costs which include salaries and rentals. It’s of great importance to have many customers in
this business.
SWOT Analysis
The following SWOT analysis captures the key strengths and weaknesses within the company,
and describes the opportunities and threats faced by our company.
Strengths
· Good location in the CBD with high walk in traffic
· Exceptional staff with the can do attitude. Combined 25 years experience in the
restaurant industry
· Because owner has catering industry experience, he already has established a customer
market and approved vendors
· Due to our small size, we believe we can provide exceptional quality by hand selecting
our market specials when compared to our larger corporate competitors
· The same concept holds true in our staffing requirements, by hand selecting our
employees we will strive to offer unsurpassed service when compared to our larger
competitors
· Innovative ideas
Weaknesses
· Difficulty in recruiting and retaining quality employees
· Limited capital which affects our ability to expand our operations
· Lack of a reputation in comparison to our competitors
Opportunities
· Little barriers to entry allows for immediate business opportunities
· Offer additional catering services

· Economic growth, which lead to higher disposable incomes and greater demand for food
· Deflation which leads to cheaper inputs
Threats
· Government mandates (restaurant operation, food safety, health, sanitation, safety, fire at
the local level)
· Rising operating costs
· Supermarkets and convenience stores who offer fast foods
· Consumers that believe that meals at home are healthier than those prepared in
restaurants.
· Instability in the Zimbabwean economy
· Competition for premises with other stores such as hardware, clothing boutiques etc
PEST analysis
We understand that our fast food restaurant business is affected by Political, Economic, Social
and Technological factors. Below we look at how some of those external factors may affect our
fast food restaurant business.
Political factors:
· Government regulations regarding employee hygiene, health and food regulations,

food standards, etc.
· Government policies regarding the restaurant industry and managing eateries. These may
include licenses, inspections by health and food departments, etc.
Economic
Zimbabwe introduced a new currency called Zimbabwean Dollar in 2019. The rate of the
Zimbabwean Dollar against the US Dollar is not stable, and the Zimbabwean Dollar has been
losing value. This is leading to inflation. Rate of inflation determines the rate of remuneration for
employees and directly affects the prices of our products. The proportion between the inflation
rate and wages/prices is direct. The rate of USD to Zimbabwean Dollar will continue
determining the cost of our inputs, and hence the price of our products and services. Acquiring
forex is a challenge as the official banks are failing to provide enough foreign currency, with
businesses resorting to the parallel market. Economic trends act as an indicator of
the sustainability and profitability of our business in Zimbabwe and will help us determine the
right marketing strategy. The Commonwealth, the European Union, IMF and World Bank are re-
engaging with Zimbabwe, giving hopes that the economy may stabilize with external funding.
The government is trying to implement policies which stabilize the economy.
Social factors:
· Eating habits of the people in your chosen business environment may, and certainly will,
affect your marketing decisions.
· Certain cultures/churches do not eat certain foods. For instance, apostolic sects
(Vapostori) and Adventists would not even touch pork. Thus those factors will determine
the kinds of food we offer.
· Ratio of people preferring to eat out regularly.
· Higher population growth leading to higher demand for our products
Technological factors:
· A good technical infrastructure would lead to better production, procurement and

distribution logistics, resulting in reduced wastage and lower costs.
· Effective technology may be a decisive factor for food technology innovation, better
presentation, more effective business marketing, etc.
Financial Statements
Start-up Costs
Item Value
Fixed Assets Purchase

Equipment & Utensils $4,800,000.00
Renovations and Interior Design $1,344,000.00
Shop Furniture $2,112,000.00
POS System And Computers $1,248,000.00
Total Fixed Assets $9,504,000.00
Working Capital
Stock $3,264,000.00
Rentals $768,000.00
Utility Bills $384,000.00
Licences $109,094.40
Marketing And Advertising $96,000.00
Insurance $480,000.00
Other Costs $192,000.00
Total Working Capital $5,293,094.40
Total Startup Costs $14,797,094.40

Funding Required
Total Startup Capital $14,797,094.40
Loan Required $10,909,094.40

Owner Contribution $3,888,000.00
The table above shows that the total capital required to do this project is ZWL$14,797,094.40.
The owners of the business will contribute ZWL$3,888,000.00 of their own funds into the
business. We thus require a loan of ZWL$10,909,094.40
Loan Repayment
Loan sought $10,909,094.40

Repayment term (Months) 36
Interest Rate per annum 60%
Monthly Repayment $659,285.20
The table above shows that we will be making a monthly repayment of ZWL$659,285.20 for 3
years to repay the loan.
Pro Forma Income Statement
Year 1 Year 2 Year 3

Revenue
Food & Drinks $126,720,000.00 $152,064,000.00 $182,476,800.00
Cost of goods $63,360,000.00 $76,032,000.00 $91,238,400.00
Gross Profit $63,360,000.00 $76,032,000.00 $91,238,400.00
Operating Expenses
Salaries $13,248,000.00 $13,248,000.00 $13,248,000.00
Rentals $9,216,000.00 $9,216,000.00 $9,216,000.00
Utility Bills $4,608,000.00 $5,068,800.00 $5,575,680.00
Licenses $109,094.40 $109,094.40 $109,094.40
Advertising and Marketing $1,152,000.00 $1,152,000.00 $1,152,000.00
Insurance $480,000.00 $480,000.00 $480,000.00
Repairs & Maintanence $1,152,000.00 $1,152,000.00 $1,152,000.00
Other Costs $2,304,000.00 $2,764,800.00 $3,317,760.00
Depreciation $1,900,800.00 $1,900,800.00 $1,900,800.00
Interest Paid $6,099,568.26 $4,657,592.70 $2,068,011.77
Total Operating Expenses $40,269,462.66 $39,749,087.10 $38,219,346.17
Net Profit Before Tax $23,090,537.34 $36,282,912.90 $53,019,053.83
Tax (24%) $5,541,728.96 $8,707,899.10 $12,724,572.92
Net Profit After Tax $17,548,808.38 $27,575,013.81 $40,294,480.91
Assumptions
Initial Stock Value $3,264,000.00
Expected Average Monthly $10,560,000.00

Revenue
Average Markup 100%
Annual Revenue Growth 20%
Position Number of Monthly Total Salary

Employees Salary
Cashiers & Waiters 4 $96,000.00 $384,000.00
Cooks 3 $96,000.00 $288,000.00
Logistics Personell 1 $144,000.00 $144,000.00
Manager & Accountant 1 $288,000.00 $288,000.00
Total Monthly Salaries $1,104,000.00
Operating expenses Per month Per Year
Salaries $1,104,000 $13,248,000.00

Rentals $768,000.00 $9,216,000.00
Utility Bills $384,000.00 $4,608,000.00
Licenses $109,094.40
Advertising and Marketing $96,000.00 $1,152,000.00
Insurance $480,000.00
Repairs & Maintanence $96,000.00 $1,152,000.00
Other Costs $192,000.00 $2,304,000.00

Monthly Cashflow Statement
Year 1
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Mo

CASH
INFLOWS
Equity Capital
Injection 3,888,000 - - - - - - - -
Loan Capital 10,909,094 - - - - - - - -
Sales 8,448,000 8,870,400 9,292,800 9,715,200 10,137,600 10,560,000 11,616,000 11,616,000 11,616,000 11,616,
Total Receipts 23,245,094 8,870,400 9,292,800 9,715,200 10,137,600 10,560,000 11,616,000 11,616,000 11,616,000 11,61

CASH
OUTFLOWS
Stock 4,224,000 4,435,200 4,646,400 4,857,600 5,068,800 5,280,000 5,808,000 5,808,000 5,808,000
Salaries 1,104,000 1,104,000 1,104,000 1,104,000 1,104,000 1,104,000 1,104,000 1,104,000 1,104,000
Rentals 768,000 768,000 768,000 768,000 768,000 768,000 768,000 768,000 768,000
Utility Bills 384,000 384,000 384,000 384,000 384,000 384,000 384,000 384,000 384,000
Licenses 109,094 - - - - - - - -
Advertising
and Marketing 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000
Insurance 480,000 - - - - - - - -
Repairs &
Maintanence 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000
Other Costs 192,000 192,000 192,000 192,000 192,000 192,000 192,000 192,000 192,000
Loan
Repayment 659,285 659,285 659,285 659,285 659,285 659,285 659,285 659,285 659,285
Equipment &
Utensils 4,800,000 - - - - - - - -
Renovations
and Interior
Design 1,344,000 - - - - - - - -
Shop Furniture 2,112,000
POS System
And
Computers 1,248,000 - - - - - - - -
Tax QPD
Payments - - 554,173 - - 1,385,432 - - 1,662,519
Total
Payments 17,616,380 7,734,485 8,499,858 8,156,885 8,368,085 9,964,717 9,107,285 9,107,285 10,769,804 9,10
SURPLUS /
(DEFICIT) 5,628,715 1,135,915 792,942 1,558,315 1,769,515 595,283 2,508,715 2,508,715 846,196 2,508,7
OPENING
BANK
BALANCE 5,628,715 6,764,630 7,557,572 9,115,886 10,885,401 11,480,684 13,989,398 16,498,113 1
CLOSING
BALANCE 5,628,715 6,764,630 7,557,572 9,115,886 10,885,401 11,480,684 13,989,398 16,498,113 17,344,309 19,85
Year 2

CASH
INFLOWS
Sales 12,672,000 12,672,000 12,672,000 12,672,000 12,672,000 12,672,000 12,672,000 12,672,000 12,672,000 1
Total Receipts 12,672,000 12,672,000 12,672,000 12,672,000 12,672,000 12,672,000 12,672,000 12,672,000 12,672,000 12,67

CASH
OUTFLOWS
Stock 6,336,000 6,336,000 6,336,000 6,336,000 6,336,000 6,336,000 6,336,000 6,336,000 6,336,000 6
Salaries 1,104,000 1,104,000 1,104,000 1,104,000 1,104,000 1,104,000 1,104,000 1,104,000 1,104,000
Rentals 768,000 768,000 768,000 768,000 768,000 768,000 768,000 768,000 768,000
Utility Bills 422,400 422,400 422,400 422,400 422,400 422,400 422,400 422,400 422,400
Licenses 109,094 - - - - - - - -
Advertising
and Marketing 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000
Insurance 480,000 - - - - - - - -
Repairs &
Maintanence 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000
Other Costs 230,400 230,400 230,400 230,400 230,400 230,400 230,400 230,400 230,400
Loan
Repayment 659,285 659,285 659,285 659,285 659,285 659,285 659,285 659,285 659,285
Tax QPD
Payments - - 870,790 - - 2,176,975 - - 2,612,370
Total
Payments 10,301,180 9,712,085 10,582,875 9,712,085 9,712,085 11,889,060 9,712,085 9,712,085 12,324,455 9,71
SURPLUS /
(DEFICIT) 2,370,820 2,959,915 2,089,125 2,959,915 2,959,915 782,940 2,959,915 2,959,915 347,545
OPENING
BANK
BALANCE 22,930,849 25,301,669 28,261,584 30,350,709 33,310,624 36,270,538 37,053,478 40,013,393 42,973,308 43
CLOSING
BALANCE 25,301,669 28,261,584 30,350,709 33,310,624 36,270,538 37,053,478 40,013,393 42,973,308 43,320,853 46,280
Year 3

CASH
INFLOWS
Sales 15,206,400 15,206,400 15,206,400 15,206,400 15,206,400 15,206,400 15,206,400 15,206,400 15,206,400 1
Total Receipts 15,206,400 15,206,400 15,206,400 15,206,400 15,206,400 15,206,400 15,206,400 15,206,400 15,206,400 15,20

CASH
OUTFLOWS
Stock 7,603,200 7,603,200 7,603,200 7,603,200 7,603,200 7,603,200 7,603,200 7,603,200 7,603,200
Salaries 1,104,000 1,104,000 1,104,000 1,104,000 1,104,000 1,104,000 1,104,000 1,104,000 1,104,000
Rentals 768,000 768,000 768,000 768,000 768,000 768,000 768,000 768,000 768,000
Utility Bills 464,640 464,640 464,640 464,640 464,640 464,640 464,640 464,640 464,640
Licenses 109,094 - - - - - - - -
Advertising
and Marketing 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000
Insurance 480,000 - - - - - - - -
Repairs &
Maintanence 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000
Other Costs 276,480 276,480 276,480 276,480 276,480 276,480 276,480 276,480 276,480
Loan
Repayment 659,285 659,285 659,285 659,285 659,285 659,285 659,285 659,285 659,285
Tax QPD
Payments - - 1,272,457 - - 3,181,143 - - 3,817,372
Total
Payments 11,656,700 11,067,605 12,340,062 11,067,605 11,067,605 14,248,748 11,067,605 11,067,605 14,884,977 11,06
SURPLUS /
(DEFICIT) 3,549,700 4,138,795 2,866,338 4,138,795 4,138,795 957,652 4,138,795 4,138,795 321,423
OPENING
BANK
BALANCE 49,152,833 52,702,533 56,841,328 59,707,666 63,846,460 67,985,255 68,942,907 73,081,701 77,220,496 77,541,
CLOSING
BALANCE 52,702,533 56,841,328 59,707,666 63,846,460 67,985,255 68,942,907 73,081,701 77,220,496 77,541,919 81,68
Pro Forma Annual Cash Flow
Opening Balance $0.00 $22,930,848.66 $49,152,832.80
Cash Sales $126,720,000.00 $152,064,000.00 $182,476,800.00
Subtotal Cash from Operations $126,720,000.00 $152,064,000.00 $182,476,800.00
Additional Cash Received
Equity Capital $3,888,000.00 $0.00 $0.00
Loan Capital $10,909,094.40 $0.00 $0.00
Subtotal Cash Received $14,797,094.40 $0.00 $0.00
Cash Expenditures
Cost of goods $63,360,000.00 $76,032,000.00 $91,238,400.00
Operating Expenses $32,269,094.40 $33,190,694.40 $34,250,534.40
Subtotal Spent on Operations $95,629,094.40 $109,222,694.40 $125,488,934.40
Additional Cash Spent
Taxes $5,541,728.96 $8,707,899.10 $12,724,572.92
Loan Repayment $7,911,422.37 $7,911,422.37 $7,911,422.37
Purchase of Assets $9,504,000.00 $0.00 $0.00
Subtotal Additional Cash Spent $22,957,151.34 $16,619,321.47 $20,635,995.29

Net Cash Flow $22,930,848.66 $26,221,984.13 $36,351,870.31
Cash Balance $22,930,848.66 $49,152,832.80 $85,504,703.10

Pro Forma Balance Sheet

Long Term Assets
Fixed Assets $9,504,000.00 $9,504,000.00 $9,504,000.00
Accumulated Depreciation $1,900,800.00 $3,801,600.00 $5,702,400.00
Total Long Term Assets $7,603,200.00 $5,702,400.00 $3,801,600.00
Current Assets
Cash $22,930,848.66 $49,152,832.80 $85,504,703.10
Other Current Assets $0.00 $0.00 $0.00
Total Current Assets $22,930,848.66 $49,152,832.80 $85,504,703.10
TOTAL ASSETS $30,534,048.66 $54,855,232.80 $89,306,303.10
EQUITY AND LIABILITIES
Equity
Shareholders Capital $21,436,808.38 $49,011,822.19 $89,306,303.10
Total Equity $21,436,808.38 $49,011,822.19 $89,306,303.10
Liabilities
Loan Outstanding $9,097,240.28 $5,843,410.61 $0.00
Other Liabilities $0.00 $0.00 $0.00
Total Liabilities $9,097,240.28 $5,843,410.61 $0.00
TOTAL EQUITY AND $30,534,048.66 $54,855,232.80 $89,306,303.10
LIABILITIES
Breakeven Analysis
Breakeven Analysis Value
Mark Up 100%
Fixed Costs/month $3,355,788.55
Breakeven point $6,711,577.11
Therefore our monthly sales should be at least ZWL$6,711,577.11 for our revenue to cover all
our costs.
Risk Analysis
Food safety and sanitation

There is a risk that a serious food-poisoning incident could occur at our restaurant as a result of
an operational lapse in food safety or sanitation procedures or malicious tampering. The
occurrence of a serious food-poisoning incident at our restaurant is likely to have very significant
consequences for our same branded restaurants. It may involve:
· A loss of consumer trust in the relevant brand that results in reduced revenues;
· An increase in expenditure on advertising to seek to attempt to restore consumer trust in

the relevant brand;
· Some or all restaurants for the relevant brand being partially or wholly closed while the
relevant food safety authorities satisfy themselves that the underlying issue has been
resolved satisfactorily. Revenues from these restaurants would be forgone as a result; and
· The payment to affected consumers (or their dependents) of some form of compensation
and to the relevant food authorities of some form of penalty or fine (unless the incident
results from malicious tampering).
Security of supply chain

The is a risk that the supply chain for one or more of our restaurants will be materially disrupted
with the result that sufficient quantities of supplies are not delivered on time. This could result
from the occurrence of a natural disaster that affects the delivery by suppliers of supplies to
restaurants; for example, a flood, or alternatively some industry-wide phenomena affecting the
availability of supplies to suppliers; for example, a widespread disease in chickens. The
occurrence of such an event would potentially have significant consequences for all our
restaurants, including the inability to sell some or all products, with an associated loss of revenue
and (potentially) brand damage, increased costs flowing from alternative delivery arrangements,
or a combination of both.
Change in regulation
There is a risk that laws or regulations will be introduced that seek to reduce the advertising or
consumption of foods sold by fast food outlets generally which would affect our restaurants
including by imposing restrictions on the location of restaurants, by the introduction of
mandatory dietary content disclosures or by the introduction of taxation measures that reference
food content. While the Directors do not believe any specific proposals are currently being
considered in Zimbabwe, there is the potential for such measures to reduce materially revenues,
increase its costs or cause both to arise.
Brand and reputation calamity

There is a risk that some incident beyond the control of our company could occur which would
have the effect of reducing consumer confidence or preferences for our brands or for any of the
component menu items sold by those businesses, such as:
· A widespread loss of consumer confidence in one or more of the products sold by our
restaurants; and
· A widespread loss of consumer confidence in the food safety procedures in the

industry as a whole.
The consequences of such an incident could be very significant for our restaurants, including
reduced revenues, loss of consumer trust in the relevant brand or products, reduced desirability
of restaurants for the relevant brand to landlords and reduced prominence of the relevant brand in
customers’ minds.
Failure of growth driver (open insufficient number of new restaurants)

There is a risk that our company will be unable to open new restaurants in accordance with its
capital expenditure programme, including as a result of an inability to secure:
· Government development approvals in accordance with the capital expenditure

timetable;
· Sufficient numbers of professional builders to construct the new restaurants;
· Suitable sites for new restaurants on acceptable terms or at all;

· Landlord approvals
The effect of such a failure would be reduced or no growth for the relevant our company
business.
Failure of growth driver (insufficient successful new products )

There is a risk that our company will be unable to offer a sufficient number of successful new
products or limited time offers at its restaurants, which could potentially result in reduced or
negative organic growth.
Reduction in customer numbers

There is a risk that economic conditions in or consumer sentiment affecting the markets in which
our company operates could deteriorate, with the potential result that customer numbers reduce
leading to lower or negative organic growth.
Insufficient supervision of operations by management

Close attention by management to the day to day operations of its restaurants and other aspects
of the business is critical to our company performance. A failure to do this would be likely to
result in reduced revenues, increased costs, or a combination of both.
Competition (existing competitors)

There is a risk that the existing competitors of our restaurants will develop strategies for
the conduct and advertising of their businesses that result in sustained and material reductions in
revenues for our company.
Lease renewal (inability to renew on acceptable terms)

There is a risk that our company will not be able to renew its site leases on acceptable terms or at
all, which would result in the closure of the restaurants operated at the relevant sites and thereby
an associated loss of the revenue previously generated by those restaurants. Given the scarcity of
appropriate sites in some areas, it may also result in the inability to operate a restaurant within
those areas at all.
Failure of advertising programmes

There is a risk that the advertising programmes conducted by our company nationally and in
Harare, will be poorly constructed or executed with the result of reduced growth in or lower
revenues for the relevant businesses.
New restaurants
There is a risk that new restaurants opened by our company will be unprofitable because they are
not supported by a sufficient market or are not adequately staffed or managed. There is also a
risk that new restaurants:
· Waste construction costs or incur construction costs earlier than necessary; and
· Cannibalise revenues of existing restaurants to a greater extent than predicted.
Suppliers (change in pricing dynamics)

There is a risk that the supply chains for our company businesses will develop in such a way that
our company becomes exposed to material pricing risk; for example, by a reduction of
competition for the supply of key product components.
Reduced demand (material change in consumer dietary preferences)

There is a risk that consumer dietary preferences will develop in such a way that demand for our
company products is reduced. The owners do not believe this is currently occurring in any
material respect; however, if this occurred it could potentially result in materially reduced
revenues.
Litigation risk
Ourcompany is exposed to litigation risk principally relating to customer and employee personal
injury claims. There is the potential for one or more claims that are material in cumulative
quantum to occur with the result that costs are increased or the brand is damaged.
Fluctuations in commodity prices and in the availability of inputs, especially feed grains
beef, chicken and other inputs could negatively impact our earnings.
Our results of operations and financial condition, as well as the selling prices for our products,
are dependent upon the cost and supply of commodities and raw materials such as pork, beef,
poultry, rice, flour and packaging materials. Production and pricing of these commodities are
determined by constantly changing market forces of supply and demand over which we have
limited or no control. Such factors include, among other things, weather patterns throughout the
world, outbreaks of disease, the global level of supply inventories and demand for grains and
other feed ingredients, as well as agricultural and energy policies of domestic and foreign
governments.
Volatility in our commodity and raw material costs directly impact our gross margin and
profitability. The company’s objective is to offset commodity price increases with pricing
actions over time. However, we may not be able to increase our product prices enough to
sufficiently offset increased raw material costs due to consumer price sensitivity or the pricing
postures of our competitors. In addition, if we increase prices to offset higher costs, we could
experience lower demand for our products and sales volumes. Conversely, decreases in our
commodity and other input costs may create pressure on us to decrease our prices.
Over time, if we are unable to price our products to cover increased costs, to offset operating cost
increases with continuous improvement savings, then commodity and raw material price
volatility or increases could materially and adversely affect our profitability, financial condition
and results of operations.
Changes in consumer preference and failure to maintain favourable consumer perception

of our brands and products could negatively impact our business.
The food industry in general is subject to changing consumer trends, demands and preferences.
Trends within the food industry change often, and failure to identify and react to changes in these
trends could lead to, among other things, reduced demand and price reductions for our brands
and products. We strive to respond to consumer preferences and social expectations, but we may
not be successful in our efforts. We could be adversely affected if consumers lose confidence in
the safety and quality of certain food products or ingredients, or the food safety system generally.
Prolonged negative perceptions concerning the health implications of certain food products or
ingredients or loss of confidence in the food safety system generally could influence consumer
preferences and acceptance of some of our products and marketing programs. Continued
negative perceptions and failure to satisfy consumer preferences could materially and adversely
affect our product sales, financial condition and results of operations.
Failure to continually innovate and successfully launch new products and maintain our
brand image through marketing investment could adversely impact our operating results.
Our financial success is dependent on anticipating changes in consumer preferences and dietary
habits and successfully developing and launching new products and product extensions that
consumers want. We will devote significant resources to new product development and product
extensions, however we may not be successful in developing innovative new products or our
new products may not be commercially successful. To the extent we are not able to effectively
gauge the direction of our key markets and successfully identify, develop, manufacture
and market new or improved products in these changing markets, our financial results and our
competitive position will suffer. In addition, our introduction of new products or product
extensions may generate litigation or other legal proceedings against us by competitors claiming
infringement of their intellectual property or other rights, which could negatively impact our
results of operations.
Deterioration of economic conditions could negatively impact our business.

Our business may be adversely affected by changes in economic conditions of Zimbabwe,
including inflation, interest rates, access to capital markets, consumer spending rates, energy
availability and costs (including fuel surcharges) and the effects of governmental initiatives to
manage economic conditions. Any such changes could adversely affect the demand for our
products, or the cost and availability of our needed raw materials, cooking ingredients and
packaging materials, thereby negatively affecting our financial results.
Extreme factors or forces beyond our control could negatively impact our business.
Our ability to make, move and sell products is critical to our success. Natural disasters, fire,
bioterrorism, pandemic or extreme weather, including droughts, floods, excessive cold or heat,
hurricanes or other storms, could interfere with our operations due to power outages, fuel
shortages, damage to our production and processing facilities or disruption of transportation
channels, among other things. Any of these factors could have an adverse effect on our financial
results.
Potential Sources of Finance

Equity Financing
Equity financing means exchanging a portion of the ownership of the business for a financial
investment in the business. The ownership stake resulting from an equity investment allows the
investor to share in the company’s profits. Equity involves a permanent investment in a company
and is not repaid by the company at a later date.
Personal Savings
Not everybody has savings but if you do, they are a good place to start. If you don’t have savings
yet, now is a good time to start. Your timeline for starting your business may be six months to a
year anyway, so if you start putting money away now, you’ll have at least a starting point from
which to raise more cash. Starting a business is about sacrifice and so you should cut down your
lifestyle as far as possible and save the cash, you’ll be glad you did.
Come up with a savings plan, save a certain percentage e.g. 20% of your salary/income towards
start-up capital for your business. Open a savings account with a reputable bank. Be disciplined.
Cut your expenses. Yes, with proper planning you can do it. Yes, it will take time, but it’s worth
it. A year from now you will wish you had started today.
Friends and Relatives

Founders of a start-up business may look to private financing sources such as parents or friends.
It may be in the form of equity financing in which the friend or relative receives an ownership
interest in the business. However, these investments should be made with the same formality that
would be used with outside investors.
Venture Capital
Venture capital refers to financing that comes from companies or individuals in the business of
investing in young, privately held businesses. They provide capital to young businesses in
exchange for an ownership share of the business. Venture capital firms usually don’t want to
participate in the initial financing of a business unless the company has management with a
proven track record. Generally, they prefer to invest in companies that have received significant
equity investments from the founders and are already profitable. In Zimbabwe we have few if
any venture capital firms.
Angel Investors
Angel investors are individuals and businesses that are interested in helping small businesses
survive and grow. So their objective may be more than just focusing on economic returns.
Although angel investors often have somewhat of a mission focus, they are still interested in
profitability and security for their investment. So they may still make many of the same demands
as a venture capitalist. Angel investors may be interested in the economic development of a
specific geographic area in which they are located. Angel investors may focus on earlier stage
financing and smaller financing amounts than venture capitalists. Angel investors are hard to
come by in Zimbabwe. To get one, you need strong networking at many business functions
where you can try to befriend the wealthy.
Debt Financing
Debt financing involves borrowing funds from creditors with the stipulation of repaying the
borrowed funds plus interest at a specified future time. For the creditors (those lending the funds
to the business), the reward for providing the debt financing is the interest on the amount lent to
the borrower.
Debt financing may be secured or unsecured. Secured debt has collateral (a valuable asset which
the lender can attach to satisfy the loan in case of default by the borrower). Conversely,
unsecured debt does not have collateral and places the lender in a less secure position relative to
repayment in case of default.
Debt financing (loans) may be short term or long term in their repayment schedules. Generally,
short-term debt is used to finance current activities such as operations while long-term debt is
used to finance assets such as buildings and equipment.
Friends and Relatives

There are a number of pitfalls associated with borrowing from friends and family; on the positive
side, such borrowing arrangements can often be made on more attractive terms than might
otherwise be available from a more formal source of funding. For example, it may be possible to
borrow either without any form of security against the loan and it may also be possible to borrow
at either a lower rate of interest, or even interest free. Repayments may also be possible over an
extended period of time and a detailed business plan may not be necessary.
It is best to keep any arrangement formal, however, and to give your benefactor as much
financial information as possible upfront. You will be responsible for their money and as such it
is in everyone’s interest to manage your money effectively
Banks and Other Commercial Lenders

Banks and other commercial lenders are popular sources of business financing. Most lenders
require a solid business plan, positive track record, and plenty of collateral. These are usually
hard to come by for a start- up business. Once the business is underway and profit and loss
statements, cash flows budgets, and net worth statements are provided, the company may be able
to borrow additional funds. It is usually easier to get loans from local owned banks like
CABS,CBZ, ZB. You will have to take a personal loan, as they rarely fund start-ups. We do not
advise borrowing money from micro-financial institutions to start a business. Their interest rates
are too high and unsustainable.
Tips for Applying For A Loan

1.Look objectively at the future of your business. What do you need funding for? Do you need
short-term or long-term funding? How are you going to generate the money needed to repay the
loan?
2. Be confident when you seek a loan. You are selling a business proposition and the lender
should make a profit from lending you the money. You have to convince the lender that they are
not taking a huge risk. Have plans ready to show how you would cope if a risk arises.
3. Approach your bank to see if they would be prepared to consider lending you money against
the securities you can offer. You will need to prepare a proper application, including a business
plan.
4. Get together the following information for your application:
· How much money do you need?
· What type of loan do you want?

· When will you need the money?
· What will you use the money for?
· How will you repay the loan? Have copies of any contracts that you have negotiated.
Detail your projected income and ALL of your costs.
· How long do you want the period of the loan to be?
· What security can you offer in return for the loan? You might need to get independent
and realistic valuations of the assets offered.
· Personal information should include your age, education, experience and personal worth,
together with a statement of your personal financial needs. Consider what funds you will
need to cover your living costs while you are setting up your business.
· Information about your business should be included in your business plan. Include a short
history of your business, your plans for the future, current and past years’ accounts if it is
an existing business, and a cash flow projection for both existing and new business
ventures.
· Also include information about funds that you already have and amounts owing to you.
List your assets and liabilities, bank balances and other deposits or investments.
· What is your previous borrowing history? What other commitments do you already have?
List any loans, hire purchase and leasing agreements.
5. Present the information in a bound document if you can – ideally make three copies: two for
the bank and one for your files. Include copies of all relevant documents and contracts. If your
accountant prepares the documents for you, make sure that you get an explanation of everything
that is included so that you can answer any questions put to you by the bank.
Be absolutely honest with your claims. Do not exaggerate your earnings; do not downplay your
expenses or conceal your shortcomings. You must get your loan solely on the basis of merit
because your venture is viable. Above all, do not delude yourself by being overly optimistic.
Top reasons why fast food restaurants fail in Zimbabwe
Location
A bad location is one of the biggest reasons a restaurant fails. Poor visibility, no parking, no foot
traffic is a combination to disaster.
Restaurant Owners Who Don’t Work
Being a restaurant owner usually means working at the restaurant. Many people open a
restaurant thinking they will pay a manager to run the front of the house and pay a chef to run the
back of the house, while they sit at the bar with their friends and collect a pay check. Wrong. If
you want to own a restaurant, but not work in it, then don’t expect to get paid. Restaurants can’t
support dead weight very long.
Hiring Poor Management
You hire someone who you think will be a great general manager, or kitchen manager, or bar
manager, since they have experience and excellent references. Then a few months down the road
not only don’t they manage the restaurant, they alienate staff, drink away the profits and/or steal
money. Hiring a manager is fine, in some cases it is a necessity, but don’t ever trust anyone
completely with your money or your business reputation. Remember that no one is going to care
about your business the way you do.
Bad Customer Service &Low quality food
This is an obvious reason for any restaurant closing. Customer service, along with good food, is
integral to staying open. Therefore, don’t shy away from getting customer feedback, whether in
the form of comment cards or just asking patrons how their meal is. It is said for every customer
complaint you get, three more are left unsaid. If that is true, then there are a lot of unhappy
dining patrons out there who don’t bother to say anything. And they don’t bother return to
restaurant they think have bad service, either.
If your guests can rely on good food and good service, it is certainly a reason to return to your
restaurant. If the quality is not constant chances of retaining regular guests are small. The
competition is too strong to retain them. Make sure that the quality of food and customer service
in your restaurant is at high level and more importantly keep it constant. You need to have
scheduled restaurant operation to keep everything under control. Good recipes and ways of
cooking that have already been accepted among the guests should not be changed. Guests
coming back to restaurants where they know what they can expect to get for their
money regarding food and customer service.
Not Watching Your Cash Flow
Cash is king. It is vital that restaurants (well, any business for that matter); keep a close eye on
their cash flow. Make sure you have enough cash to cover big expenses, like food orders and
payroll, every week, along with all the other bills that come with a restaurant. If your bank
account starts running into the red, it is time to look for ways to save money at your restaurant.
Not Understanding Food Cost
Knowing how to properly price your restaurant menu is the first step toward making a profit. Put
the right margins on your products.
Low start-up capital
Lack of operational funds can cause concepts that could succeed to fail after all. It’s important
that you have enough money to keep your restaurant alive until you begin making profit. The
restaurant that runs out of working capital before it can start running optimal performance and to
make a profit is doomed to failure. When this happens, it s rarely possible to finds a way out of
financial problems and to pay expenses.
You should have enough cash in reserve to make sure that you have enough capital for all the
uncertainties that you are going to face in the initial period of operation. This is very important
because in the first year you can not accurately predict the course of your financial operations.
Neglecting finances
Mismanagement causes your cash funds to deplete quicker than expected. Using the company’s
money for personal use is a recipe for failure. Things such as (i) spending too much money on
equipment, atmosphere, advertising, (ii) not watching the controllable costs like food cost, labor,
direct expenses, (iii) not using a restaurant bookkeeping system in order to keep costs in check,
(iv) getting into a lease agreement that is too costly, (v) expanding too fast will cause you to
fail.First-time owners who choose a location that is too expensive for their budget set themselves
up for failure from the start.
Lack of Inventory and Staff Control
Profitability analysis and inventory control is an important task of every manager or owner of
restaurant and bar, which must be carried out regularly in order to prevent theft and reduce
unnecessary costs. Your employees maybe stealing from you and giving free foods to their
relatives and friends. Pay special attention when creating ingredients list for inventory items. It is
important that you specify correctly amounts that are required to prepare dishes before cleaning,
shaping, freezing, etc. in order to have an accurate insight into the requirements of goods and to
have proper stock control.
Lack of Marketing
There is no success without good promotion. People have to be aware of your restaurant. You
have to push volumes up in order to be successful.

Fast Food Restaurant Business Plan

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Fast Food Restaurant Business Plan

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FAST FOOD RESTAURANT BUSINESS PLAN

Pro Forma Income Statement...............................................................................................................50

Mission, Objectives and Keys to success

· Provide an income for founder-owner with income growth possibilities.

· Commitment to achieving results

· Corporate Social Responsibility

· Get access to high-traffic shopping malls near the target market.

· Promote good values of company culture and business philosophy.

Our Company Activities

Youthful and fresh surroundings

Variety, variety, variety

Steps to take in order to set up your business

Step 1: You need to have a business plan for your business.

COOKING STAFF/ SALES STAFF

· The availability of work skills and training programmes; and

· Opportunities to study towards nationally recognised qualifications.

· Improved customer service levels;

The duties will include:

· Directs maintenance and repair of facilities and equipment

· Trains new workers

· Day-to-day operational decisions

· Business planning and operations, strategic planning, business management

· Giving employees their salaries

· Analyze business operations, trends, costs, revenues, financial commitments, and

· Carry out marketing activities for the company

· Perform till operations

· Recommendation of food to customers

Cooking and Logistics staff

· Preparation of the food

· Buying ingredients and food supplies

· Serving the customers

· Managing the company inventory

Location and Premises

Identification and assessment of new sites

Practicalities of renting premises

Other Location Considerations

Freezers And Refrigerators

Cooking Equipment, Ovens and Stoves

Food Preparation Counters

Point of Sales System

Renovations and Interior Design

City of Harare Licence

Procedure for Application for a Shop License

2. Pay for shop license fee of ZWL$6 758 per annum

The health department will check the below:

1st QPD 10%

3rd QPD 30%

4th QPD 20th December 35%

· Every business person who becomes an employer is required to apply to the

· Keeping accounting records for a period of at least six (6) years.

Customs and Excise

Value Added Tax (VAT)

We believe that the best form of advertising is still "word-of-mouth." By providing an

ZBC TV and Radio

Public Transport Advertising

Ongoing operational excellence

Expanding product range and day parts

Establishing new restaurants

Loyalty Program/Birthday Program

Fast Food outlets

High End Restaurants

Medium class restaurants

Low End Restaurants