NAME: MWADUDU MATANO FATUMA

ADM NO: DNDT/M-0008/MOM/22

SCHOOL: THIKA SCHOOL OF MEDICAL AND HEALTH
SCIENCES
HIGHWAY CHICKEN JOINT

Business plan
 Declaration

I, MWADUDU MATANO FATUMA, hereby declare that this business plan is my original work and can be
only be used for scholarly purpose

MWADUDU MATANO FATUMA DNDT/M-0008/MOM/22

Signature…………………………………. Dates ………………………….

This business plan has been submitted with the approval of the undersigned to Thika School of Medical
and Health Sciences.

Supervisor

Supervisor

Signature……………………………………… Date……………………………………
 Acknowledgement
I am grateful for my course instructor who help me throughout by assisting me in choosing of my
business, writing and correction.

It is in special gratitude that I thank all my course mates for their extended support all through the
period, as they have been my source of courage.

I thank the almighty God for making it possible for me to work efficiently

Contents
Declaration.......................................................................................................................................................1
Acknowledgement............................................................................................................................................2
Executive Summary.........................................................................................................................................5
CHAPTER ONE..............................................................................................................................................6
1.0 BUSINESS DESCRIPTION..............................................................................................................................6
1.1 BUSINESS NAME......................................................................................................................................6
1.2 LOCATION OF THE BUSINESS...................................................................................................................6
1.3 FORM OF BUSINESS OWNERSHIP............................................................................................................7
1.4 PRODUCTIS AND SERVICES......................................................................................................................7
1.5 JUSTIFICATION OF BUSINESS OPPORTUNITY..........................................................................................7
1.6 New products/services offered to attract customers.............................................................................8
1.7GOAL OF THE BUSINESS...........................................................................................................................9
1.8 ENTRY AND GROWTH..............................................................................................................................9
CHAPTER TWO.......................................................................................................................................10
2.0 MARKETING PLAN.................................................................................................................................10
2.1 POTENTIAL CUSTOMERS.......................................................................................................................10
2.2 MARKET SHARE.....................................................................................................................................10
2.3 COMPETITION........................................................................................................................................10
2.4 PROMOTION AND ADVERTISING..........................................................................................................11
2.5 PRICING STRATEGY................................................................................................................................11
2.6 SALES TACTICS.......................................................................................................................................13
2.7 DISTRIBUTION.......................................................................................................................................13
CHAPTER THREE...................................................................................................................................14
3.1 Organization and Management Plan....................................................................................................14
3.2 Summary of Personnel and their roles.................................................................................................14
3.3 Recruitment and Training......................................................................................................................15
3.3.1 Recruitment....................................................................................................................................15
3.3.2 Training...........................................................................................................................................15
3.3.3 Promotion.......................................................................................................................................15
3.4 Remuneration and Incentives...............................................................................................................16
3.5 Licenses, Permits and By-Laws..............................................................................................................16
3.6 External support services......................................................................................................................16
CHAPTER FOUR......................................................................................................................................17
4.1 Operations and Production facilities and capacities.............................................................................17
4.1.1 Human Resources...........................................................................................................................17
4.1.2 Physical Facilities/ Equipment........................................................................................................17
4.1.3 Materials for Production................................................................................................................18
 4.2 Day-to-Day Operations..........................................................................................................................19
4.3 Production strategy...............................................................................................................................20
4.4 Regulations Affecting Operations/Production......................................................................................20
CHAPTER FIVE.......................................................................................................................................21
5.0 FINANCIAL PLAN....................................................................................................................................21
5.1 PRE-OPERATINAL COST.........................................................................................................................21
5.2 WORKING CAPITAL REQUIREMENT.......................................................................................................22
5.3 Income statement for Six Months.........................................................................................................22
APPENDIX........................................................................................................................................................23
Menu...........................................................................................................................................................23
Premise layout.............................................................................................................................................23

Executive Summary
Right now, there is increase in growth and number of fast-food restaurants in developing as well as
developed countries because of their convenience. My business fits in the industry because it will
provide most of the elements of a fast-food industry, which include speed, convenience and
affordability. The form of the business is general partnership. The business is under the standard
industry classification of fast-food restaurant. The business name is “Highway Chicken Joint” the
name is derived from its location and that is “LIKONI-MSAMBWENI” highway”. The business is
located at Likoni, next to TOTAL Energies petrol station. The vision is to serve happiness to our
customers through delicious, quality meals and extraordinary experience and the mission is to offer
the highest quality product at the lowest price possible, the best consumer experience and respect for
our employees, business partners and community.

The joint will offer services like packed meals to go (take away foods) and meals that will be served
and consumed at the premise. Products that will be offered are plain fried chicken, crispy fried
chicken, hot spicy chicken, potato wedges: spiced and plain, vegetable salad (carrot and cabbage)
and Fresh fruit juices: mango, pineapple and tamarind.

The potential customers are mostly people in the town and travelers who stop at Likoni town to get
refreshments. There are a number of few fast-food restaurants but they are located in the town,
which is far from the highway. Competition is present but it is not completely high. To be able to
start receiving profits from the sixth month after opening the business. A profit of up to 15% of the
production total. The sales projection for the first year to grow with a 10% growth rate over the next
2 years. We are seeking to raise 250,000 in order to set up the highway chicken joint business and
this money will be obtained from bank loans and added available savings.

CHAPTER ONE
1.0 BUSINESS DESCRIPTION
The form of the business is general partnership. The partners decided to start the business, which is a
chicken joint. The business is under the standard industry classification of fast-food restaurant. The
business will offer food services to the people in and around Likoni town and to those travelling. It
will mostly offer chicken dishes that will be accompanied by other side dishes.

1.1 BUSINESS NAME

The business name is “Highway Chicken Joint” the name is derived from its location and that is
“MSAMBWENI-LIKONI highway”

Business address
 HIGHWAY CHICKEN JOINT
P.O BOX 215-80108
LIKONI
TELEPHONE: +254768001412
EMAIL: highwaychickenjoint@gmail.com

1.2 LOCATION OF THE BUSINESS

The business is located at Likoni town opposite TOTAL Energies petrol station.

Factors that which led to considering starting the business at this location are;

 Security- the area has a high level of security due to the nearness to the district police
headquarters.
 Presence of potential customers because the area is approximated to be the midway of
Mombasa and Malindi.

1.3 FORM OF BUSINESS OWNERSHIP

The business will be a general partnership between two friends. There will be shared ownership and
managing responsibilities in the business. Similarly, profits, debts and liabilities will be equally
shared.

Vision

To serve happiness to our customers through delicious, quality meals and extraordinary experience.

Mission

To offer the highest quality product at the lowest price possible, the best consumer experience and
respect for our employees, business partners and community.
1.4 PRODUCTIS AND SERVICES
The joint will offer services like packed meals to go (take away foods) and meals that will be served
and consumed at the premise

Products that will be offered are

Main dishes

 Plain fried chicken

 Crispy fried chicken
 Hot spicy chicken

Side dishes

 Potato wedges: spiced and plain

 Vegetable salad (carrot and cabbage)
 Fresh fruit juices: mango, pineapple and tamarind.

1.5 JUSTIFICATION OF BUSINESS OPPORTUNITY

The reasons why the owners want to start the business are to be able to increase their earning
potential through diversifying their income sources; the business is a sideline income project. Putting
up the business will also help in improving other people’s lives because starting the new business
gives us the opportunity of hiring and training others.

1.6 New products/services offered to attract customers

1. For a customer ordering plain chicken product, a little amount of potato wedges will be
added.
2. Offering a good environment, a table and a chair for customers to be able to eat and enjoy
their meal at the premise.
3. Good packaging materials for packing take away meals.
4. Giving offers mostly on holidays.
5. The prices will be slightly lower than that of competitors and this will aid in coping with the
competition.
1.7GOAL OF THE BUSINESS
Short-term goals.

 The business will produce quality products at affordable prices to satisfy the customers.
 The business is expected to improve livelihoods of some of the local people by creating job
opportunities.
 The business will be expected to start profit generation after six months.
 The business will be able to increase is customers by 40% after the first one year

Long-term goals.

Within the next six years, the business will have started its branches in other parts of the country
under the same name.

1.8 ENTRY AND GROWTH

The business will enter the market through the following strategies

 Collecting lead documents like licenses and business name registration certificate.
 Pay the initial sent and finishing the room as well as displaying the name of the business
and what it offers on the doors.
 Creating awareness which will be made possible by strategically putting up posters
indicating the location varies of products and services offered.
 The pricing of our products and services shall be comparatively lower to our competitors
to attract customers.
The business intends to grow through the following
 Cleanliness (personal hygiene and working area)
 Time consciousness – opening at the fight time and also closing at the sight time.
 Cooperation and spirit of teamwork
 CHAPTER TWO
2.0 MARKETING PLAN

2.1 POTENTIAL CUSTOMERS

The potential customers are mostly people in the town and travelers who stop at Kilifi town to get
refreshments

The joint will offer services like packed meals to go (take away foods) and meals that will be served
and consumed at the premise. Products that will be offered are plain fried chicken, crispy fried
chicken, hot spicy chicken, potato wedges: spiced and plain, vegetable salad (carrot and cabbage)
and Fresh fruit juices: mango, pineapple and tamarind.

2.2 MARKET SHARE

According to research done the competitors take 50% of the total market share. The business will
occupy 20% at the start up with a vision of increasing its market share up to 60% . this will be
achieved through proper marketing mix which include.

 Proper pricing.
 Efficient and reliable channel of distribution.
 Providing high quality.

This will be done with the aim of maintaining and improving market share, meeting competition
maximizing profit achieving target on investments and for survival.

2.3 COMPETITION
There are a number of few fast-food restaurants but they are located in the town, which is far from
the highway. Competition is present but it is not completely high.
2.4 PROMOTION AND ADVERTISING
a) Sales and price promotion

To grab attention of new customers there will be rewarding of existing customers like increasing
their portions.

This will also be achieved by adding a small amount of side dishes, which are potato wedges and
salad for the customers who buy plain chicken dishes.

There will be offers on certain products and days by temporarily reducing product price to attract
customers.

b) Business place promotion

Locating the place restaurant at the highway is already a promotion strategy since customers will
locate it easily. A billboard will be placed outside the joint to advertise the business. The place and
the board will be decorated by eye-catching colors that will attract the customers.

The business will use the following marketing channels to create awareness of existence of the joint:

 Posters- the posters will be written printed and displayed in various places in the area and
around town and neighboring towns to advertise the name of the business, the products
available and operating hours.
 Social media- the business is going to be advertised and marketed on social media platforms
like Instagram, Facebook, YouTube and Tiktok. Recorded audiovisual advertisement will be
posted on the online platforms.
 Asking for referrals- once a customer’s loyalty is gained a systemized approach will be
created to actively gain referrals from satisfied customers.

2.5 PRICING STRATEGY

For a startup. Pricing is critical stage that that will eventually dictate the fate of our business in this
case we shall consider the following as our starts pricing strategy.
 Market denotation

Pricing for marketing penetration as a method used to attract a high volume of buyers by
marketing products and services at a lower price than competitors.
 Economy pricing

This strategy intends to minimize business costs for the sake of products and services at a price
lower than the market average.

2.6 SALES TACTICS

The following sale factices will be useful for our business

• Listening and solving customer problems

• Making use of social media to find leads

Following up with each prospect

2.7 DISTRIBUTION.
The business shall use a direct channel of distribution which will be very short and no middle men
shall be involved from the manufacture which be main supplies the produce will be imported for
redistribution to customers or to others retails who will also sell to customers.
 CHAPTER THREE

3.1 Organization and Management Plan

Organizational Structure

Manager

accountant/Sales
Chef person

Assisstant chef waiter/

waitress

cleaners

Figure 1.Organizational structure

3.2 Summary of Personnel and their roles

Table 1. Summary of personnel’s and their roles.

Personnel Number duties

Manager 1 Planning, organizing and monitoring the business activities. Recruiting
employees and controlling the production activity. Keeping records.
Sales person 1 Responsible for making sales giving sales promotions and collecting
money from customers.
Cook 1 Cooking of the meals/ dishes to be served to the customers
Deputy cook 1 Help in preparation of raw products like vegetable, chicken, potato
preparation
Waitress/ 1 Preparation of tables, welcoming customers, taking customers’ orders
waiter and serving customers food and
Cleaner 1 Clean the kitchen and dining area floors, linen, and utensils.

3.3 Recruitment and Training.

The vacant position in the business will be filled up in the following ways:

Advertising – application – shortlisting – interview – job offer – training.

3.3.1 Recruitment
It is the process of obtaining competent and qualified personnel for the designated positions
Advertising – The business will advertise the vacant position to the public through posters that will
be placed in town and around the town.
Application – The interested candidates will send application letters and CV to the business through
the manager for selection.
Short listing – successful candidates will be shortlisted for interview
Interview – Face-to-face communication between the manager and the interviewee will take place.
3.3.2 Training
The manager will orient the personnel for the first once a week as regards the business codes and
ethics so as to familiarize the recruit with the workplace. The business may prefer the following
methods of training to be used in the business.
On-job training – As the workers gain the experience while they are in work.
Seminars – The business may provide seminars to workers to be educated in their working areas.
Giving of magazines and journals – The magazines and journals will provide training materials to
the business personnel thus advancing in their skills and knowledge.
3.3.3 Promotion
Promotion is upward mobility of employees from one rank to another in an organization.
Promotion in the business will be done considering the following factors:
Hardworking – Employees showing interest and commitment to one’s work in the business will
increase the chances of being promoted
Education – The higher one is educated the more chances of promotion increases.
3.4 Remuneration and Incentives
The manager will be paid a basic salary of Ksh. 20,000 and will be entitled to a house allowance of
Kshs.3000. The cook will receive 12,000 shillings monthly, the deputy cook, salesperson and waiter
will be paid 10,000 shillings, and the cleaners will receive Ksh 5,000. The suggested amount will be
starting salary but may be increased by a certain percentage if the business performs well. The
personnel will be paid their basic pay at the ending date of every month. There will be a seven
working day leave for every employee per year at different and well-spaced months and there will be
a party at the end of every year.
3.5 Licenses, Permits and By-Laws
Highway Chicken Joint will be a legal business. It will abide by the laws regarding its operation by
acquiring all the necessary licenses and permits as required by the law, adhere with government
registrations and regulations. The following are licenses and permits that it will require in order to
operate legally;

Business registration certificate from the county council with a fee of 3000 each and the permits
will be renewed annually.

Food handler’s permit; this is an employees’ health permit which guarantees that the grocery
meets product sanitation, storage and preparation regulations. This permit also ensures that staffs
does not suffer from communicable diseases such as tuberculosis top avoid infections. This permit
expires within 3-4 months.

The by-laws that will govern the business are the food & Poison Act, which require, selling of fresh
products, compliance with health requirements of proper dumping, selling of products measured on
weight quantities to comply with the Standard measurements and weight.

3.6 External support services.

The business will require other support services from the following;

a) Banking services; the Fresh Grocery Store will work together with Equity Bank for the safety
of the cash; the business daily income will be deposited to the bank.
b) Insurance company: this will be required in order to offer a security cover for the business in
case of fire outbreak, thefts and damages from public riots.
c) Security: The Kenya Police, Likoni Police Station and theft risk.
 CHAPTER FOUR

4.1 Operations and Production facilities and capacities

Production is the core function of the organization. The business will require human resources,
equipment, tools and machines for maximum production operations on the day-to-day basis to
give good quality products and services.

4.1.1 Human Resources

The business will require a manger who will oversee the whole organization. An sales person
who will also be a sales person to keep records and making sales and sale promotion. Chefs who
will prepare the products. Business will need a waiter/waitress to serve the customers and a
cleaning person to clean the area.

4.1.2 Physical Facilities/ Equipment

The food premise will be a permanent building. It will be a rented facility, which will be
renovated to fit the desired layout for the premise. It will have a food preparation area, a kitchen,
receiving area for the raw materials being delivered, dining area and reception/cashier area. Rent
will be paid for the building every end month. The building will have large window spaces to
allow continuous circulation of fresh air, efficient water supply and electricity for proper
lighting. The main source of energy that the business will use for food production will be
electricity and gas.
Budget

Table 2. Physical facilities and equipment budget

S/NO. Equipment Price (ksh)

1. Fridge 15,500
2. Freezer 10,000
3. double electric chips deep fryer 9,700
4. Blender 3,000
5. Brown khaki food bags 6,000
6. Disposable juice cup with lids 6,000
7. straws 950
8. kitchen towels 2000
9. Serviettes 400
10. plates 10,000
11. glasses 5,000
12. cutlery 10,000
13. furniture 10,000
TOTAL 88,550

4.1.3 Materials for Production.

The business will require the raw materials listed in the table below. Most of the non-perishable
raw materials will be purchased in bulk at wholesale prices in order to cut down on operational
cost. Perishable raw materials will be acquiring in bulk but in smaller portions like two to three
times a week. The materials below will be used to prepare the food and beverages to be sold.
Table 3. Raw materials budget

S/No. Product Price (Ksh)-

initial capital
1. Potatoes 8,000
2. Chicken(broiler) 10,000
3. Cabbage(white) 2000
4. Carrots 2000
5. Mangoes 3000
6. Pineapples 15,000
7. Tamarind 30,000
8. Tomato sauce 8,200
9. Chili sauce 5,000
10. Salt 1,000
11. Sachet salt(1.75g) 2,000
12. Sachet tomato sauce 1,000
13. Sachet chili sauce 8,000
14. Cooking oil 10,000
15. Sugar 5000
16. spices 5000
TOTAL 115,200
.

4.2 Day-to-Day Operations

The chicken joint will be open from 8.00am to 10.00pm on weekdays and 9.00am to 9.00pm on
weekends. The operations that will be done at the joint include cleaning of the area early in the
morning. Marinating the spiced chicken, blending of fruits and chilling of the fruit juices, peeling
of the potatoes in preparation for cooking, cooking of the foods and welcoming and serving the
customers. There will be continued cleaning of the surfaces during the day to ensure tidiness.
Before closing hours, the premise will be cleaned and other simple preparations made to ensure
ease in beginning the next day’s work.
4.3 Production strategy
(i) Production control
For effective work, the manager will be giving instructions to employees per task. That sales
controlled are cash sale, which will be recorded in receipt book and daily sales, transferred to
ledger book. The manager will inquire from the suppliers on the availability of the product to
satisfy the customer’s needs products will be displayed in the premises.
(ii) Quality control
The business will ensure high standards of hygiene in both preparations, cooking and serving of
foods. A health office will be inspecting the facility after every three months. Management to
ensure they have clean standards always will closely monitor workers.

4.4 Regulations Affecting Operations/Production

(i) Safety measure

To prevent injuries during production the business will give high precaution measures for their
safety. There will be aprons and closed shoes to be used by the employees working in the
kitchen for safety measures.
(ii) Health regulations
For health regulations smoking will not be allowed in certain parts of the premises. Cleanliness
of the workers and the premises will be observed and sanitation will be maintained to the
required standards.
(iii) Environmental regulations
Dustbins will be provided to dispose waste to avoid dirt in the environment. The bins will be
categorized according to the waste to be placed in them like recyclable waste, non-recyclable
waste and organic waste products. The municipal council cleaning services for proper
management will then collect the dirt three times in a week.
 CHAPTER FIVE

5.0 FINANCIAL PLAN

This involves determining the course of actions to achieve desired results. In ensures economic
operations.
Improve motivation and facilitates control by reducing uncertainties

5.1 PRE-OPERATINAL COST

This startup money is required by an individual entrepreneur to create a new business. The
businesses initial capital will come from the family savings and borrowed loans from banks

Table 4. Pre-operational cost

ITEM ITEMS AMOUNT KSHS

NO
1 Loan processing fee 1,000
2 Electricity deposit 4,000
3 Miscellaneous cost 2,000
4 Bank account opening 2,500
5 Trading license 3,000
6 Installation of equipment and pictures 3,000
7 initial stock 203,750
TOTAL 219,250
5.2 WORKING CAPITAL REQUIREMENT
Operating expense and utility expenses
ITEM AMOUNT (Ksh)

Physical facilities 88,550

fuel (gas and electricity) 1500

license permits and registration 1,500

food materials 115,200

fire extinguisher 2,000

water system 5,000

waste management 5,000

total 219,250
5.3 Income statement for Six Months
ITEMS 1st 2 2nd 2 3rd 2
months months months
Total sales 985885 990775 1270800
Credit sales 3100 4000 61800
Total sales 988985 1010775 1332600
Cost of goods sold 360700 374000 381500
Total cost of goods 628285 636775 95110
sold
Gross profit
Expenses
Rent 21600 413280 433944
Salaries 393600 21600 21600
Telephone bills 12000 9300 12000
Electricity bills 10800 6200 4350
Advertisement 4000 17000 40000
Water bill 2470 2200 2260
Transport 3000 700 450
Repair & maintenance 4000 500 500
Loan payment 4250 1990 30000
Insurance premiums 12800 2120 3900
Miscellaneous 3000 3000 3000
Creditors 2400 1000 1000
Total expenses 473920 478890 526004
Net profit before tax 154365 157885 425096
Tax at 15% 23154.75 23682.75 63764.4
Net profit 131210.25 134202.25 361332.6
APPENDIX
Menu

Figure 2. Highway chicken joint menu

Premise layout

WASHROOM RECIEVEING
S STORAGE AREA
AREA
WASHING
AREA

DINING AREA KITCHEN

PREPA
COOKING RATIO
AREA N
SINKS AREA

Figure 3. Premise layout