Auto-Burger

Business Proposal
Assignment 1

New Business Venture (ISYS 40151)

Prepared by:
Shahrukh Ahsan
(N0985892)
TABLE OF CONTENTS
EXECUTIVE SUMMARY ....................................................................... 3
INTRODUCTION................................................................................ 3
Literature Review: ......................................................................... 3
PRODUCT / SERVICE ......................................................................... 4
Concept of the product: .................................................................. 4
How to make it happen? ................................................................. 4
Supply Chain: ............................................................................... 5
MARKET ANALYSIS ........................................................................... 5
Description of the Market ................................................................ 5
External Analysis ........................................................................... 6
Political factors ........................................................................... 6
Economic factors......................................................................... 6
Social factors .............................................................................. 7
Technological factor .................................................................... 7
Market Competition ........................................................................ 7
Market Research ............................................................................ 8
BUSINESS DEVELOPMENT STRATEGY .................................................. 9
Differentiation Strategy .................................................................. 9
Product Development Strategy ........................................................ 9
Marketing Mix................................................................................ 9
Segmenting, Targeting and Positioning ........................................... 10
Key Takeaways ........................................................................... 11
Executing Lean Six-Sigma and Agile techniques ............................ 11
Investing in technology.............................................................. 11
Investing for effective promotion of brand .................................... 11
Training of employees ............................................................... 11
FINANCIAL PLAN ............................................................................ 12
Budgeting ................................................................................... 12
12-Month Profit/Loss Projection ..................................................... 12
4-year Profit/Loss Projection ......................................................... 12
Cash Flow Projection .................................................................... 12

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 Balance Sheet ............................................................................. 12
Break-Even Analysis..................................................................... 12
REFERENCES ................................................................................. 13
List of Appendices ........................................................................... 15
Appendix A (Operation Flow) ......................................................... 15
Appendix B (PEST/LE Analysis) ...................................................... 16
Appendix C (Porter’s 5 Forces) ...................................................... 18
Appendix D (SWOT Analysis) ......................................................... 19
Appendix E (Profit/Loss Projection) ................................................ 20
Appendix F (4-year Profit/Loss Projection) ...................................... 21
Appendix G (Cash Flow Projection)................................................. 22
Appendix H (Balance Sheet) .......................................................... 23
Appendix I (Break Even Analysis) .................................................. 24

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EXECUTIVE SUMMARY
The fast-food industry is a growing industry with a competitive market. If
a new entrant must enter, it should develop a unique product and a strong
image to compete with others.
The business proposal aims to present a smart fast-food eatery called
“Auto-Burger” that will serve burgers, fries and milkshakes which can be
customized. The whole restaurant would not require staff to operate. It will
make use of machinery to deliver excellent tasting food, everytime.
Relevant information to support the proposal was gathered by a short
literature review and the market details were reviewed by using a
secondary research method.
The benefit of opening a new fast-food restaurant is high, if the product
offers taste, convenience and value. It must be marketed well because the
industry hosts numerous strong brand names.
A differentiation and product development strategy were employed when
planning. The marketing mix, segmentation, targeting and positioning
methods were utilized too.
Lastly, equity funding is appropriate for this venture. After which, the
restaurant will become self-sufficient and will not be in debt nor loss.

INTRODUCTION
The opportunity to automate a restaurant’s kitchen arose from the Covid
situation. Covid brought bad effects but opportunities arise in problematic
times. Due to Covid, people prefer hygienic and healthy options when
selecting for restaurant.
Literature Review:
Covid has not only affected the revenue of the market but is also has
affected the way a business operates (Shah et al., 2020). It has been
observed that many businesses implemented various ways of working off-
site. Businesses also suffered loss in recent times. Small businesses
suffered a lot of the these detrimental consequences (Bartik et al., 2020)
In the recent years, robots are becoming involved in restaurants. Work is
being done on developing a humanoid type of a robot that can completely
replace a human (Mishra, Goyal and Sharma, 2018). Innovations are being
done for the restaurant industry.
The industry is also witnessing automation on a new level. Internet of
Things (IOT), is being utilized by various industries to operate and control
various machinery. The IOT network connects various machines together
by software and/or sensors. This enables low human interaction
manufacturing and also predictive analysis of the collected data. IoT
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systems have proven themselves by being reliable. “Researchers have
envisioned ”Plug and Produce” (PnP) approaches for industrial automation
already for more than 15 years” (Koziolek, Burger and Doppelhamer,
2018).
Although, a restaurant named “Creator” has already been using a burger
making machine, it still requires human attention. Auto-burger hopes to
take this to another level by automating the whole procedure. Utilizing
the IoT technology to automate machines and software to collect data,
Auto-Burger aims to serve scrumptious food consistently.

PRODUCT / SERVICE
Concept of the product:
The service intended to launch is a smart automated fast-food restaurant
in Nottingham, which virtually eliminates human interaction from the entire
cooking and dine-in experience. With the help of machinery, that will be
connected via IoT, the plan is to create a production line that can serve
perfectly cooked customizable burgers, customizable crisp fries and
succulent milkshakes.
The customer can choose the type of meat, sauces and the burger toppings
they desire. For the fries, they can choose the size they want the potato to
be cut and can also add additional toppings on the fries. If selected, the
milkshakes will be automatically dispensed. Each order will be delivered to
the table via conveyors. The tables will be enclosed in separate cabins and
a safe dine-in option will be available.
Auto-Burger will also be equipped with a software that records sales and
inventory related data. This data can be used to inform on when to buy
new raw stock. It will save feedback from the customers. The software will
be able to notify the maintenance required and also keep track of the
preventive maintenance schedule.
The only labour required is to stock material on the machines, a technical
person to deal with minor downtimes and a representative that will deal
with complaints if they arise.
This concept of a restaurant will save labour costs and deliver a product
which is consistent in quality and taste, every time.
How to make it happen?
The smart restaurant’s production line can be broken down into several
components which can be referred to as stations. Appendix A shows the
stations and the order of the procedure that will be followed in the
preparation of the burger and fries. However, staff members will be needed
to stock material and supervise the machines.

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Supply Chain:
A supply chain plan is crucial to a business’s growth. It is better to plan
than to handle emergencies at the last moment.
The restaurant is armed with a software that will collect and store various
data on a regular basis. This data can be analysed to keep a tight control
on inventory and can be utilized to strictly monitor the whole operation.
The supply chain can be seen in the block diagram figure 1 below.

Smart Restaurant
Raw
Material Manufacturer Retailer Consumer
Suppliers

Distributor

Figure 1: Supply chain chart

Source: Author

All the raw materials required for the complete production are not scarce
resources. The existing suppliers are also high in number which serves as
an advantage to us. The power of suppliers is also depicted in Appendix C
This means locally sourcing the materials required would be a good
decision.
The eatery we plan to launch must be capable of transforming the raw
material to a finished product and then also then sell it to the targeted
audience. Hence, the restaurant would play both the roles of manufacturer
and retailer.
The product could also be sold by using a distributor and we can make use
of the existing delivery apps.
The raw material will be sourced locally from the suppliers. The restaurant
will play the roles of manufacturer and retailer. It will take in the raw
material and manufacture the product. After which it will provide the
customers with a quality good. The supply chain is discussed further in the
report.

MARKET ANALYSIS
Description of the Market
“The fast-food products market was valued at $647.7 billion in 2019 and is
estimated to reach $931.7 billion by 2027, growing at a CAGR of 4.6%

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during the forecast period” (ltd, 2021). It can be taken from the report that
this industry is forecasted to see sustainable growth in the coming years.
The reason that fast food has always attracted customers is because of its
convivence, taste and value. These three factors can help distinguish the
different segments of the market.
The convivence factor of the fast-food attracts individuals with busy
lifestyles. This particular segment does not pre-plan their daily meals and
avoid preparing food for themselves. Simply, because they do not have
time or are too exhausted to cook after a hectic day at work.
The second segment are the persons who select fast food restaurants based
on their preference of taste. If they find the taste desirable, they will eat at
a certain restaurant just because they like it.
The third and also an important segment of the market are the families who
regularly eat out and prefer fast food because of its value. Be it a
celebration or just a casual family dinner, fast food restaurants are the way
to go because they cater for all ages.
External Analysis
PEST tool was utilized to perform an external analysis. Since this tool is an
effective way to assess the market for our smart eatery and its products.
The PEST analysis is also shown in the Appendix B.
Political factors
The political situation in the UK is stable and more importance should be
given to the compliance of the regulations set by the government. Recently
the lockdown tiers have been announced and it is a must for businesses to
comply with.
Other acts regarding handling, preparation and labelling of food are set out
and so a restaurant business must adhere to these.
Workers related protocols have also been defined. A minimum wage has
been set and child labour is strictly prohibited.
Conforming to the government set policies is important and giving
employees their rights is necessary.
Economic factors
The Covid situation has affected the global economy. In the financial year
2020, UK has seen a 9.9% decrease on its GDP (Partington, 2021). This
also has affected the mindset of the general populace by making them
choose fast-food options over fine dining restaurants. Even during the
lockdown phase, eateries remain open and support the economy

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The taxes that needed to be paid, by a restaurant business, are the general
sales tax and the corporation tax. These taxes mean that the pricing needs
to be done accordingly. Also, the UK interest rate is low and this means
that consumers’ purchasing power is not greatly affected by it.
In a nutshell, the economy is facing a challenge but the demand for food
will never vanish
Social factors
As the world progresses, people are beginning to become busier and have
less available time. Fast food offers a quick solution to this.
It is also a trend to share good quality products on the internet. Majority of
the internet users are young people and since it has been observed that
youngsters consume more fast food (Grier et al., 2007), it is a plus for the
food business.
Covid has also affected daily social norms. People are now observing social
distancing and the public is now giving importance to hygienic food
preparation. Due to the lockdown, dine in is temporarily closed.
The societal factors do favour the premise of an automated smart fast-food
restaurant.
Technological factor
Nowadays, automation is becoming increasingly popular. Automation has
also proven itself as it has been successful in making operations more
precise and effective (Hwang et al., 2003). The world has also seen
businesses operating remotely because of the pandemic.
Industries are constantly implementing principles like six sigma and lean
manufacturing to streamline their procedures but the innovation in food
preparation techniques is low.
Some fast-food giants have made use of computerized till systems and
automated ordering systems to transform the customer service aspect of
restaurants.
The businesses are using technology to improve their marketing strategies
and customer service.
Market Competition
Porter’s 5 is an efficient tool to gauge the market competition. The complete
analysis is shown in Appendix C.
Supplier power – The intensity of this force is low. The suppliers for the raw
materials required are high in number and they are not united. The needed
material is also not a rare resource. It is very unlikely for a single supplier
to gain control. Due to this the bargaining power is low for suppliers.

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Buyer Power – The customer has a lot of power in this industry. Since the
market is saturated with fast-food retailers, the buyer has different options.
The buyer power is high as the switching costs are low and many
substitutes are present.
Threat of substitutes – As mentioned before, the market has various
different economical substitutes. Buyers can easily switch to other choices.
This means that the threat from other substitutes is high
Threat of new entrants – The threat of new entrants is low because fast-
food giants are famous and have become popular. Any new competitor
would have to invest a substantial amount to develop a brand. The profit
margin will be limited due to a high number of substitutes. High number of
substitutes means that a unique product would be needed to grasp market
attention. All of these factors make the threat low.
Competitive rivalry – The competition is very high. Well-known brands exist
in the market which lead to competitive pricing. Even the products offered
have a high quality to cost ratio.
Conclusion – The porter 5 analysis reveals two advantages and three
disadvantages. In other words, if a new business does not have a unique
product and a solid marketing plan it would not be able to sustain itself.
Market Research
A lot of research has already been done on the fast- food industry and so a
secondary research method is being employed. The following the
respondents’ answers from (Antunes, 2016)’s questionnaire:
• Out of 324 respondents, 50.9% were from the 18-24 age group
• Majority of the respondents were students and workers
• 59% felt insecure when buying a new/unknown brand
• 34% like to consume outside food
• 44% consumed outside food 1-2 times per week and 32% consumed
it 3-5 times per week
• 42% preferred fast-food restaurants when eating outside
• 60% respondents will try if a new type of hamburger was launched
• Majority of the respondents prefer beef and chicken burgers.
• Bacon, Mushrooms, Tomato, Onion and Mozzarella cheese were top
selections for burger toppings.
• Top selections for the sauces were Mushroom sauce, Four cheese and
garlic mayo.
This data can be utilized to segment the market and also incorporate the
food choices in Auto-Burger’s menu. It also depicts that majority of the
people eat out and will try new burger concepts.

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BUSINESS DEVELOPMENT STRATEGY
Based on the market analysis, we can observe that Auto-burger is entering
a competitive market but it does have substantial potential as well.
In order to build an effective and successful strategy, it is vital to first
identify the strengths, weaknesses, opportunities and threats. The SWOT
analysis is displayed in Appendix D.
Differentiation Strategy
With the notion an automated restaurant, Auto-Burger hopes to
revolutionize the fast-food industry. There are three unique selling points
of the restaurant. The processing of the food is automated, the product will
be consistent unlike other restaurants where human error may slightly alter
the product and also presents the management with valuable data. By
utilizing this strategy, it will be possible for the restaurant to gain a
significant portion of the market.
Product Development Strategy
The target is to increase sales by involving this intensive strategy.
Employing the product development strategy can be beneficial as Auto-
Burger competes in a high-growth industry and the major competitors offer
better quality products at comparable prices. The key to developing a
successful product is not only to include exciting features but to include
technical features that actually satisfy the customer’s wants.
Marketing Mix
Marketing mix is an essential tool as it assists in what a product can offer
and helps to plan for a successful product offering. It is executed using the
4 P’ s of marketing: Product, place, price, promotion
Product- The aim is to create a restaurant which can operate on its own.
It can take customized orders from customers, provide an efficient way to
pay and then serve the food. Not only that, but it can also collect important
data which can then be analysed to further improve the restaurant’s
operation, customer service and product. To sum it up, it is an intelligent
restaurant that produces consistent quality food while being aware of the
customer’s demands.
Place - The fast-food industry has many competitors as noted in the
market analysis. To gain a competitive advantage over existing businesses,
it is important to choose a place near the competitors. Majority of the
eateries are located between the areas of Hyson green and old market
square. The smart restaurant must ideally be located around that vicinity.
This will enable effective advertising and it can serve as an opportunity to
network with competitors as well.

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Price - The price set is a comparatively low price when compared with
other competitors in the vicinity. This is because we hope to penetrate the
market by using a low price. The set price offers value to the customers.
After reviewing marketing conditions and economic situation, Auto-Burger
hopes to capture more market share by using a lower price.
Promotion - Auto-Burger is a new fast-food chain. Initially, below the line
marketing strategies will be employed. Group Discounts, Coupons and pay-
per-click advertising. These will generate traffic on our website which in
return will spread the word for the restaurant. Long term strategies e.g.,
SEO, building a social media presence will also be pursued. Effective use of
the internet will support the brand’s reputation.
Segmenting, Targeting and Positioning
Segmenting refers to breaking the market into chunks. Some segmentation
was described in the market analysis but now those segments will be
classified on the basis of lifestyle, behavioural and demographic factors of
people
Lifestyle Factor – The individuals with busy lifestyles. These people are
not overly price conscious. Also, advertising has a moderate effect on them
because they chose fast food because of its convivence.
Behaviour Factor - the persons who select fast food restaurants based on
their preference of taste. This section of the market is brand loyal and
advertising new and unique products will have a strong influence on them
Demographic factor - The third and also an important segment of the
market are the families who regularly eat out and prefer fast food because
of its value. This segment is price conscious as the food is being purchased
for several people. Marketing various food ‘combos will definitely appeal to
this populace.
Targeting the mentioned sections will prove to be most effective. After
determining the segments of the market, it is easy to decide on what group
of people the business should be advertised to. Two segments of the market
consist of the 18-25 age group, these are the people who have busy
lifestyles and eat fast-food because of the taste. Auto-Burger will primarily
target this sector of the market along with targeted marketing towards the
more family-oriented segment. The smart restaurant can advertise its
product by mentioning convenience for the time savers, taste for the
enthusiasts and low-price high value to groups.
Positioning the product is important as it improves the business’s
perception to the consumer. Conceptual and physical positioning, both will
be employed. Sending out a clear and distinctive message will convey how

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Auto-Burger is a healthier, hygienic and a better value product than others
present.
The automated preparation of food is positioned to attract the safety-
conscious mindsets. Covid has also raised concerns about this. The fast-
food will attract the young populace towards the brand. The customisability
of the food will appeal to the more health-conscious people.
Key Takeaways
Below are some critical factors which will lead the business towards
sustainable growth.
Executing Lean Six-Sigma and Agile techniques
“The lean production management policy presents higher risks – any hiccup
will stop production totally. But the potential gains are great” (Krafick,
1988).
Lean policy works by improving the whole process which then improves the
quality. It is also an effective method which will lessen the risk of
overstocking the inventory. Implementing this strategy will minimize the
waste costs incurred and increase sales.
Six Sigma methodology works by reducing the number of defects in the
manufacturing process. As a result of using this method, we can
significantly reduce the downtime in our automated food preparation.
Agile focuses on responding to the changes. Applying this for Auto-Burger’s
customizable menu can streamline the whole process.
Combining these strategies will help us reduce wastage costs which will
help us boost sales.
Investing in technology
This factor is a critical success factor for Auto-Burger. The whole idea of
creating a new business is to automate the restaurant’s kitchen. Investing
in technology will not only increase the sales but will be beneficial in
increasing the efficiency of the operation of the business.
Investing for effective promotion of brand
Promoting the brand will not only introduce the product to the customer
but it will also explain the business. This in return would build a better
brand reputation and would increase sales as consumers will see the gain
in buying the product.
Training of employees
Auto-Burger will have few employees but is essential to train them in good
practices. As the kitchen would be like a mini factory, it is important that
the employees supervising must be well trained. Should anything go wrong,

11
the workers must know how to deal with the issue. Other training on how
to deal with customer problems, if they arise, must be given as well.

FINANCIAL PLAN
Budgeting
It is important for a start up to determine its initial costs. Auto-Burger
needs an initial investment of £70,000/-. The one-time costs are
£50,000/-. The rest £20,000/- is safety money to bear any unforeseen
situations.
12-Month Profit/Loss Projection
Before beginning the projection, it was necessary to estimate sales. This
was done by assuming that the restaurant will have maximum number of
customers during lunch hour. Since the product is unique and due to an
effective marketing strategy, a 12% growth rate for sales can be predicted
in the first year.
The Cost of goods sold (COGS) was taken to be 55% of the sales revenue.
The venture becomes profitable after 3 months.
The projection is present in Appendix E
4-year Profit/Loss Projection
The 4-year projections depict the annual growth of the business.
The first year would observe a 12% growth in sales.
The growth rate will decline for the second year as the product would not
be a new concept anymore and the prediction of sales growth rate is 8%.
For the third and fourth years, a growth rate of 5.5% can be estimated.
Cash Flow Projection
Cash flow projection shows the money going in and out of the business. It
is present in Appendix G.
The Cash Flow projection shows that an initial investment of £70,000/-
would be required and then the restaurant will sustain itself.

Balance Sheet
The Balance sheet is present in Appendix H. It gives us an idea of the
assets, liabilities and the equity of the owner and gives us an insight of the
current financial situation of the business
Break-Even Analysis
Break-even Analysis is present in the appendix I. The break even shows
us that when the sales reach a value of £20,111/- the business will reach

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break-even. This can also be observed in the Profit/Loss projection of the
business.

REFERENCES
Antunes, A. L. O. (2016) ‘Innovative business plan: a new hamburger
concept’, pp. 1–147.

Bartik, A. et al. (2020) ‘How Are Small Businesses Adjusting to COVID-

19? Early Evidence From a Survey’, SSRN Electronic Journal. doi:
10.2139/ssrn.3570896.

Grier, S. A. et al. (2007) ‘Fast-food marketing and children’s fast-food

consumption: Exploring parents’ influences in an ethnically diverse
sample’, Journal of Public Policy and Marketing, 26(2), pp. 221–235. doi:
10.1509/jppm.26.2.221.

Hwang, Y. N. et al. (2003) ‘Phase-change chalcogenide nonvolatile ram

completely based on CMOS technology’, International Symposium on VLSI
Technology, Systems, and Applications, Proceedings, 2003-Janua, pp. 29–
31. doi: 10.1109/VTSA.2003.1252543.

Koziolek, H., Burger, A. and Doppelhamer, J. (2018) ‘Self-Commissioning

Industrial IoT-Systems in Process Automation: A Reference Architecture’,
Proceedings - 2018 IEEE 15th International Conference on Software
Architecture, ICSA 2018, pp. 196–205. doi: 10.1109/ICSA.2018.00029.

Krafick, F. J. (1988) ‘Triumph of the Lean Production System’, Sloan

Management Review, 30(1), pp. 41–52.

Mishra, N., Goyal, D. and Sharma, A. D. (2018) ‘Automation in

Restaurants: Ordering to Robots in Restaurant via Smart Ordering
System’, International Journal of Converging Technologies and
Management, 1(4), pp. 1–4.

Shah, A. et al. (2020) ‘Since January 2020 Elsevier has created a COVID-
19 resource centre with free information in English and Mandarin on the
novel coronavirus COVID- 19 . The COVID-19 resource centre is hosted
on Elsevier Connect , the company ’ s public news and information’, Brain,
Behavior, and Immunity, (January).

ltd, R., 2021. Fast Food Market by Type and End User: Global
Opportunity Analysis and Industry Forecast, 2020-2027. [online]
Researchandmarkets.com. Available at:
<https://www.researchandmarkets.com/reports/5118788/fast-food-

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market-by-type-and-end-user-
global?utm_source=CI&utm_medium=PressRelease&utm_code=94fbxc&u
tm_campaign=1414183+-
+Global+Fast+Food+Market+Worth+%24931+Billion+by+2027+-
+Industry+Assessment+Featuring+Auntie+Anne%27s%2c+Domino%27s
+Pizza%2c+Dunkin%27+Brands+Group%2c+McDonald%27s%2c+Yum!
+Brands+and+More&utm_exec=joca220prd> [Accessed 17 February
2021].

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List of Appendices
Appendix A (Operation Flow)

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 Political Economic Social Technological

• Food Standards Act 1999
• Food Safety Act 1990
• Food safety order 1991
• Child labour Act
• Announcement of lockdown tiers
• National minimum wage UK
• 9.9% decrease in GDP in FY-2020
(Partington, 2021)
• Corporation taxes 19% on profits
over financial year
• GST
• Interest rate
• Regardless of tough times,
Demand for food will never vanish
• Fast food becomes a part of busy
lifestyles
• Aesthetic food attracts social
influencers
• Youngsters consume more on
ready to eat food
• Social distancing
• Healthy and hygienic eating
• Dine-in trend is fading away
• Everything is being automated.
• Remote working solutions
• New manufacturing procedures
e.g., six sigma, lean manufacturing
• No major technological
innovation in food preparation
techniques.
• Online marketing which attracts a
wider audience
• Computerized till systems
• Automated ordering systems
Appendix B (PEST/LE Analysis)

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 Legal
Legal: changes to employment law,
recruitment, visas etc.
What is happening with changes to
legislation? This may impact employment,
access to materials, quotas, resources,
imports/ exports, taxation etc.
• Labelling of ingredients and
calories
• Other general laws regarding
labelling of genetically modified
contents
• Licensing and registration of
business
• Compliance to taxes and other
food related laws
• Compliance of Covid SOPs
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Environmental
Environmental: the space available, what
can or cannot be moved where etc.
What is happening with respect to
ecological and environmental issues? Many
of these factors will be economic or social
in nature.
• Obesity caused by fast food
• Reducing CO2 emissions to
counter global warming.
• Global energy transition towards
renewable sources of energy
• Increased attention towards
recycled goods
Appendix C (Porter’s 5 Forces)
Porter's 5 Forces Description Intensity
.High availabilty of required suppliers
in the market
.Lack of alliance between suppliers
Supplier Power .The raw material is abundantly present Low
.High vertical integration cost for suppliers
.High switching costs for suppliers

.High number of fast food retailers

.Low switching costs for buyers
Buyer power High
.Variety of substitues are available

.Plenty of fast food substitues are present

Threat of
.High performance to cost ratio of substitutes High
substitutes
.Low switiching costs for buyers

.Capital Cost depends on type of restaurant

.High cost of brand development
Threat of
.Low profit margin due to high number of substitutes Low
new entrants
.Easy free registration for food businesses
.Unique Product to enter market

.Abundance of competitors
.Few well-known brands e.g. Mcdonald's, Gregg's,
Competitive
KFC High
Rivalry
.Competitive pricing - limited profit margin
High quality to cost ratio

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 Appendix D (SWOT Analysis)

Strengths
1. Automated, hygienic, healthy, and Weaknesses
efficient preparation of fast food.
2. Interactive menu can display calories
in real time while choosing meal. 1. Costly set up
3. Software able to record and analyse 2. Downtime may stop processing
data. line
4. Low operational costs as compared to 3. No brand reputation
traditional staffed restaurants 4. Limited catering of customers
5. Food can be customized as per 5. Inventory needs to be stocked
customers’ need daily
6. Consistent quality products. 6. Financing required (Investor
7. Daily fresh inventory stocking required)
8. Remote staff-less operation of the 7. No waiters so less human
restaurant unlike others interaction
9. Compliance with all food safety and 8. Disposable Cutlery and plates
quality standards. made from recyclable material
10.Effective payment methods increase waste
11.Dine-in option during covid
12.Unique preparation of product.
13.Less staff required during operation
14.Quick response to customers’ problems
and/or queries

Opportunities Threats
1. Despite economic problems, fast food
sector continues to grow.
2. Multiple loan schemes for businesses
announced by government during
covid.
3. Unique products become ‘viral’ due to
the internet.
1. Developing new products/machinery is
4. Possibility Vertical expansion of the
expensive and risky
business
2. High competition
5. Chance to use tech and revolutionize
3. Risk of not achieving flavourful taste
the restaurant industry
4. Price war against competitors
6. 59% of Nottingham’s population
5. Same idea can be implemented by
consists of working individuals and
other fast-food giants
increase rate
6. Negative perception of health-
7. Growing consumer interest in hygienic
conscious people towards products.
food due to covid
8. Possibility of collaboration and alliance
with big fast-food chains
9. Possibility of marketing the restaurant
to beverage retailers
10.Chance to become a new tech-savvy 19
restaurant brand
Appendix E (Profit/Loss Projection)

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 4-Year Profit/Loss Prediction
Year 1 (12%) Year 2 (8%) Year 3 (5.5%) Year 4 (5.5%)

Burger Sales revenue 232836.47 251463.39 265293.87 279885.04

Milkshakes revenue 72761.40 78582.31 82904.34 87464.07
Fries revenue 43656.84 47149.39 49742.60 52478.44
Total Sales revenue 349254.70 377195.08 397940.81 419827.56
COGS (55% of Sales) 192090.09 207457.29 218867.45 230905.16
Gross Profit 157164.62 169737.79 179073.36 188922.40
Less: Fixed Operational Cost 108600.00 120000.00 130000.00 140000.00
Less: Depreciation Cost 664.80 664.80 664.80 664.80
Appendix F (4-year Profit/Loss Projection)

Operating Profit before tax 47899.82 49072.99 48408.56 48257.60

Tax Rate (19%) 10115.71 9323.87 9197.63 9168.94
P/L 37784.11 39749.12 39210.94 39088.66

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 Appendix G (Cash Flow Projection)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash Inflows
Investment 70000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Sales Revenue 22672.80 25393.54 28440.76 31853.65 35676.09 39957.22 44752.09 50122.34 56137.02 62873.46 70418.28 78868.47

Total inflow 92672.80 25393.54 28440.76 31853.65 35676.09 39957.22 44752.09 50122.34 56137.02 62873.46 70418.28 78868.47

Cash Outflow

Expenses
Rent 2250.00 2250.00 2250.00 2250.00 2250.00 2250.00 2250.00 2250.00 2250.00 2250.00 2250.00 2250.00
Wages 5600.00 5600.00 5600.00 5600.00 5600.00 5600.00 5600.00 5600.00 5600.00 5600.00 5600.00 5600.00
Utilities 400.00 400.00 400.00 400.00 400.00 400.00 400.00 400.00 400.00 400.00 400.00 400.00
maintenance 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00
Cost of goods sold 12470.04 13966.44 15642.42 17519.51 19621.85 21976.47 24613.65 27567.29 30875.36 34580.40 38730.05 43377.66
miscellanous 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00

Set-up Costs
Website 400.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Software 3000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Security deposit 13500.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Furniture 3000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Recipe
development 250.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Segregated cabin 10000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
HVAC system 3000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Patty maker 500.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Conveyor oven 1000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Patty collector 300.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Bun toaster 2000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Sauce dispenser 200.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Vegetables
dispenser 700.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Cheese dispenser
and melter 300.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Potato rinser 500.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Fries cutter 500.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Frying and
collecting basket 300.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Toppings dispenser 700.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Cup dispenser 150.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Milkshake dispenser 200.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Conveyor belt 3000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Intial Marketing 1500.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Misc 5000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Outflows 71520.04 23016.44 24692.42 26569.51 28671.85 31026.47 33663.65 36617.29 39925.36 43630.40 47780.05 52427.66

Net Cash Flow 21152.76 2377.09 3748.34 5284.14 7004.24 8930.75 11088.44 13505.05 16211.66 19243.06 22638.22 26440.81

Opening Balance 92672.80 25393.54 28440.76 31853.65 35676.09 39957.22 44752.09 50122.34 56137.02 62873.46 70418.28 78868.47
Closing Balance 21152.76 2377.09 3748.34 5284.14 7004.24 8930.75 11088.44 13505.05 16211.66 19243.06 22638.22 26440.81

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 Appendix H (Balance Sheet)

Assets 2021
Current Assets
Cash 10,000
Prepaid expenses (Deposit) 13,500
Total current assets £ 23,500
Fixed (Long-Term) Assets
Equipment & Machinery 13,350
(Less: accumulated depreciation) (665)
Furniture 3,000
Intangible assets (Recipe, Website & Software) 4,550
Total fixed assets £ 20,235
Total Assets £ 43,735

Liabilities and Owner's Equity

Current Liabilities
Accounts payable (suppliers) 5,000
Total current liabilities £ 5,000.00
Owner's Equity
Owner's investment 38,735
Total owner's equity £ 38,735.00

Total Liabilities and Owner's Equity £ 43,735.00

Common Financial Ratios

Debt Ratio (Total Liabilities / Total Assets) 0.11
Current Ratio (Current Assets / Current Liabilities) 4.70
Working Capital (Current Assets - Current Liabilities) 18,500
Assets-to-Equity Ratio (Total Assets / Owner's Equity) 1.13
Debt-to-Equity Ratio (Total Liabilities / Owner's Equity) 0.13

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 Appendix I (Break Even Analysis)

FIXED COST 9050.00

FIXED COST $ 9,050
VARIABLE COST 2.20
VARIABLE
NUMBER OF UNITS
COST
500.00
$ 2.20
NUMBER
UNIT PRICEOF UNITS
4.00 500
UNIT PRICE $ 4.00
NET NET FIXED TOTAL TOTAL
UNITS REVENUE COST VARIABLE COST COST PROFIT
0 0.00 9050.00 0.00 9050.00 -9050.00
500 2000.00 9050.00 1100.00 10150.00 -8150.00
1000 4000.00 9050.00 2200.00 11250.00 -7250.00
1500 6000.00 9050.00 3300.00 12350.00 -6350.00
2000 8000.00 9050.00 4400.00 13450.00 -5450.00
2500 10000.00 9050.00 5500.00 14550.00 -4550.00
3000 12000.00 9050.00 6600.00 15650.00 -3650.00
3500 14000.00 9050.00 7700.00 16750.00 -2750.00
4000 16000.00 9050.00 8800.00 17850.00 -1850.00
4500 18000.00 9050.00 9900.00 18950.00 -950.00
5000 20000.00 9050.00 11000.00 20050.00 -50.00
5500 22000.00 9050.00 12100.00 21150.00 850.00
6000 24000.00 9050.00 13200.00 22250.00 1750.00
6500 26000.00 9050.00 14300.00 23350.00 2650.00
7000 28000.00 9050.00 15400.00 24450.00 3550.00
7500 30000.00 9050.00 16500.00 25550.00 4450.00
8000 32000.00 9050.00 17600.00 26650.00 5350.00

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