TITLE; SUNRISE RESTAURANT

CENTRE NAME: RIFT VALLEY TECHNICAL TRAINING INSTITUTE

PRESENTED BY: CHEMTAI BOIYO LILIAN

COURSE CODE: 1802/2

PAPER NO: 205B

INDEX NUMBER: 5341010730

ADMISSION NO: 121R03857

CENTRE CODE : 534101

SUPERVISOR : MADAM ESTHER KARITHI

DEPARTMENT : HOSPITALITY AND MANAGEMENT

EXAM SERIES : JULY SERIES 2023

SUBMITTED TO: THE KENYA NATIONAL EXAMINATION COUNCIL IN

FUFILMENT FOR THE AWARD OF CERTIFICATE IN FOOD AND BEVERAGE
PRODUCTION AND SERVICE.

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ii
 DEDICATION
I dedicate this business plan to my family for their moral support they granted to me during the
time I was writing this project and to my teacher for the guideline.

iii
 ACKNOWLEDGEMENT
Many people have helped me in the preparation of this business plan and therefore, I would like
to express my sincere gratitude to my immediate family especially my parents
Finally to my Supervisor for taking his time to supervise and approve the project.

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 DECLARATION
I declare that the work reported in this business plan is my original work. It has not been
presented for examination purposes in any institution of learning for the award of Diploma,
Certificate or degree by anyone else.

PRESENTER: Lilian Boiyo

DATE:
SIGNATURE:

This project has been submitted for the examination with my approval as the supervisor.

NAME OF THE SUPERVISOR:

DATE:

SIGNATURE:

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 1.0 EXECUTIVE SUMMARY

1.1 INTRODUCTION
This contain the business description set up through marketing plan, organization and
management plan , production and operational plan and finally the financial plan which outlets
the finance collected.

1.2 BUSINESS DESCRIPTION

The proposed name of the business is SUNRISE RESTAURANT Company owned by Lilian
Boiyo The business ventures its business location and content of the main features. It also
contains its form of ownership, type of business. Products and services offered are of high
standard. Justification and opportunity. The industry, business goals and the strategies to be
employed in venturing market and its growth is put in place.

1.3 MARKETING PLAN

This will entail marketing objectives, talking to customers to provide a market, the competition
faced by the business, the suppliers, marketing strategy and pricing.

1.4 ORGANIZATION AND MANAGEMENT PLAN

This covers the general structures of an organization from top to bottom, their qualities and
duties. This also deals with recruitment, training and promotion techniques to be employed.
There is also remuneration and incentives.

1.5 PRODUCTION AND OPERATIONAL PLAN

This is the cost of installation of the business and facilities, maintenance and repair of the
materials used in production. It also covers firm layout of the business and the production
strategies to win the market segments. There is production process and regulations affecting
operations.

1.6 FINANCIAL PLAN

The business is intending to use the amount of capital estimated to be ksh 3,000,000

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vii
 Table of Contents
DEDICATION............................................................................................................................................iii
ACKNOWLEDGEMENT..........................................................................................................................iv
1.0 EXECUTIVE SUMMARY...................................................................................................................vi
1.1 INTRODUCTION................................................................................................................................vi
1.2 BUSINESS DESCRIPTION.................................................................................................................vi
1.3 MARKETING PLAN...........................................................................................................................vi
1.4 ORGANIZATION AND MANAGEMENT PLAN..............................................................................vi
1.5 PRODUCTION AND OPERATIONAL PLAN...................................................................................vi
1.6 FINANCIAL PLAN.............................................................................................................................vi
CHAPTER ONE:........................................................................................................................................1
1.0: BUSINESS DESCRIPTION:...............................................................................................................1
1.1: BUSINESS NAME:.............................................................................................................................1
1.2: BUSINESS LOCATION AND ADDRESS:........................................................................................1
1.2.1: BUSINESS LOCATION:..................................................................................................................1
1.2.2: BUSINESS ADDRESS.....................................................................................................................1
1.3: FORM AND TYPE OF OWNERSHIP................................................................................................1
1.3.1 Form of Ownership.............................................................................................................................1
1.3.2: TYPE OF BUSINESS.......................................................................................................................2
1.4: PRODUCTS/ SERVICES....................................................................................................................2
1.5: JUSTIFICATION OF OPPORTUNITY...............................................................................................4
1.6: INDUSTRY..........................................................................................................................................5
1.7: GOALS OF BUSINESS:......................................................................................................................5
1.7.1: LONG TERM GOALS:.....................................................................................................................5
1.7.2: SHORT TERM GOALS:...................................................................................................................5
1.8: ENTRY AND GROWTH STRATEGY...............................................................................................6
1.8.1: ENTRY STRATEGY........................................................................................................................6
1.8.2: GROWTH STRATEGY....................................................................................................................6

viii
 CHAPTER ONE:

1.0: BUSINESS DESCRIPTION:

1.1: BUSINESS NAME:

The name of the proposed business shall be SUNRISE RESTAURANT. The business owner
shall be called Lilian is currently a student pursuing a Certificate course in Food and Beverage in
RVTTI. She is 22 years of age intending to open the proposed business immediately after the
college 2024. She comes from Kakamega County. she has some experience of the proposed
business since her parents are having various restaurants within Nakuru town.

1.2: BUSINESS LOCATION AND ADDRESS:

1.2.1: BUSINESS LOCATION:

The proposed business shall be located in Kericho town on Kericho, Nakuru high way opposite
Mutai Whole sellers. The location is 200m from the highway.

1.2.2: BUSINESS ADDRESS

SUNRISE RESTAURANT

P.O BOX 112

KERICHO

CELLPHONE:

Email: sunriserestaurant@gmail.com

1.3: FORM AND TYPE OF OWNERSHIP

1.3.1 Form of Ownership

The proposed business shall be a sole proprietorship. The following are the features which
justifies the selected form of ownership:

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 • It does not call for tedious legal formalities to form.

• It is highly flexible.

• By laws its accounts do not have to be audited.

• It is limited to such finances as personal savings of the owner.

REASONS FOR CHOOSING THIS FORM OF BUSINESS

• Easy decision making

• Easy to manage

• It is flexible

• Enjoying of all benefits derived from the business.

Disadvantages of the chosen business are:-

• Risk in case of death or sickness of the owner.

• Bearing all the loses

1.3.2: TYPE OF BUSINESS.

The proposed business shall fall under service industry i.e. food and catering. It will be
dealing with foods and drinks. The following are the characteristics of this type of industry:-

• The services provided are just catering services.

• Foods and drinks are sold to the potential customers; however the exact business
being undertaken by the owner is a non-other than a restaurant.

1.4: PRODUCTS/ SERVICES

The products offered by the proposed business will be meals and drinks. The meals served will
be simple, the decisions to serve simple meals would arrive at, after thorough investigation
which revealed that a number of potential customers interviewed expressed willingly and ability

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to afford simple meals. Provision shall be made to ensure that those who want something
different are created for though it shall be done through order to ensure no unnecessary wastage
occurs hence increase profitability. The food and juice will be served safely to customers. Since
the owner target is being made up of students and how income earners, the proposed business
would provide them good quality food and soft drinks at affordable prices which others do not
consider in that location. The intended business will also grand them with a nice quiet and
hygienic environment for having their meals. Some customers’ especially students will be able
to pay their meals in advance.

The following are the products.

• Beverages

• Tea

• Coffee

• Soft drinks

• SNACKS

• Mandazi -

• Kebab

• Samosa

• Sausages

• MAIN DISHES

• Ugali beef fish kales

• Chips

• Chicken

• Liver

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 • Rice/ potatoes

• Green grams

• LOCAL DISHES

• Matoke/ peanut

• Kienyeji

• Githeri

1.5: JUSTIFICATION OF OPPORTUNITY

The proposed business shall exist because of the following reasons. It will be centrally placed
for easy accessibility by its customers. The business shall employ highly qualified and
experienced staffs capable of adopting changes as they come. This will ensure products of high
quality to be produced. Through success of the business the proprietor shall act as a sole model
to all youths who will be edging to become an entrepreneur in future. After intensive research of
the related businesses within the locality, it was discovered that many factor were in favor of the
proposed business.

This includes the following: -

• Other businesses around the region are having unqualified personnel making them not to
attract customers.

• The size of other businesses around the region is very small with limited space.

• Also the location is preferred because the population in the location is very high.

• The means of transport is also good with sufficient water and power supply and well
implemented drainage system.

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1.6: INDUSTRY
The proposed business belongs to food and catering industry. This industry is large compared to
other industries. It contributes over 13% of jobs to the private sector and is a source of income
to many people either directly or indirectly. The size of the firm shall be medium due to the
limited of some resources but with time, the firm will grow and expand in the chosen
environment because the population in the area is high.

The kind of technology used shall be the latest one e.g. the proposed business shall employ
equipment’s like oven, cookers, gas cylinders, driers and fridges. These equipments will reduce
the cost in terms of time management. The firm shall be able to employ various personnel i.e.
cookers, cashier, supervisor. Both of them shall be to employees. The basic requirements of
capital to enter into this industry shall be Ksh 650 000. The proposed business shall not face
stiff competition in the industry.

1.7: GOALS OF BUSINESS:

1.7.1: LONG TERM GOALS:

After the proposed business is penetrated well into the market share, it will be able to
implement the following:

• To be a market leader in the food and beverage industry.

• To be able to repay the borrowed loan within the time limit of two years.

1.7.2: SHORT TERM GOALS:

• Profits – within a short period of operation the proposed business shall increase its
services to gain more profits.

• Sales – within a short period of operation, sales shall be increased that customers
shall be aware of existing services.

• Market share – within a very short period the proposed business shall be able to
penetrate into the market share due to its layout promotional/ advertisement
strategies.

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1.8: ENTRY AND GROWTH STRATEGY

1.8.1: ENTRY STRATEGY

Before commencing the proposed business will acquire its trade license from within municipal
council of Kericho and recommendation from the health office. There will be an official grand
opening where the proprietor will invite the priest to bless the business. The first twenty people
will be served with free soft drinks and meals of their choice.

If the appropriator had to undertake, the best media to use is local decision where the public
could see how foods are specially prepared and service offered.

1.8.2: GROWTH STRATEGY

As the business continues its operation, its expected to attract more customers leading to
increase in production and diversification of current products. this means that more equipment
will be necessary to coup with the increasing demand such as deep freezer to aid in storage of
perishable food staffs hence minimizes loses.

New products shall be developed to meet the increasing diversified customer’s needs.

Sunrise Restaurant will open new branches in Bomet and Sotik Town. It will
later expand and open more branches within Kericho County.

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 CHAPTER TWO:

2.0: MARKETING PLAN:

2.1: CUSTOMERS:
The main customers that will be targeted by the proposed business are: -students from the
learning institutions and the people are working in the area.

• Students

This is a low income group since they don’t have a permanent source of income of their
own. They have to make use of the little resources available carefully. They will be
students from primary, secondary and colleges around. Majority of the students from the
primary and secondary schools are Muslims hence the proposed business won’t prepare
pork to avoid inconvenience.

• The community

The people residing around the location will also be targeted. This includes working
people around the area and those who are not working unlike students, these are expected
to spend more but they are fewer in number than students. Majority are adulthood of age.

2.2: MARKET SHARE:

From the reliable statistics, the area and its environs has a total population of approximately ten
thousand people (10,000). Out of this the expected people 3500 which will be the direct
customers to the proposed business. There fare the market share in terms of percentage will be
calculates as :

3500 X 100

10000 = 35%

Proportions of other business similar to the proposed one will be as follows.

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 Name No. of customers Percentage %
Tealand restaurant 2500 25
Saptet restaurant 2500 25
SUNRISE
RESTAURANT 3500 35
Ndegechai
restaurant 1500 15
Total 10 000 100%
Pie chart resenting the proposed business and its competitors are at the start of the business
operation.

This will be in the ratio of 120: 90: 90: 54

= 3:2:2:1

This is the relative of market share:-

2.3: COMPETITION:
The proposed business will be expecting stiff competitions from

• Tealand restaurant

• Saptet restaurant

• Ndegechai restaurant

Tealand restaurant -It is situated along KerichoNakuru town highway opposite the proposed
business (Marroon Restaurant)

Saptet restaurant - it is situated near Kericho Primary School which is directly opposite to the
proposed business.

Ndegechai restaurant

It is situated on the road heading to James Finlay’s which is adjacent to the proposed business.

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 Advantages of competitors location in regard to the proposed business is:-

• SUNRISE RESTAURANT is located near the schools and market centre next to the main
stage which has very high population.

• The proposed business is at the junction hence easily accessed by its customers unlike its
competitors.

Disadvantages

Saptet restaurant is located near primary school hence attracting students who are also targeted
by the proposed business.

2.3.1: SIZE OF THE COMPETITORS:

• Saptet restaurant

This restaurant is now three years since its operation. It has also not penetrated much of the
market. It is under sole proprietorship and it is not very much equipped. It is small in size and
very minimal products are offered.

• Ndegechai restaurant

This restaurant is now 2 years since its operation. It has also not penetrated much into the
market. It is under partnership but under very small facility. The minimal products and
services is also offered.

• Tealand restaurant

This restaurant is now 5 years since its operation. It is under sole proprietorship. The problem
with this restaurant is that: - it has employed unqualified staffs though the family is large.
This lowers the quality of products and services being offered.

A competitor’s analysis table showing comparison of basic business aspects

Business Age Form of own Products / Staff promotion

service
SUNRISE New Sole Wide variety Well Local news 7:30 –
RESTAURANT proprietor modern motivated papers, 8:00
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 equipments. trained posters and pm
High hygiene staff. sign board.
standards
cheap service
offers credit
facilities.
Tealandrestaurant 5 Sole Poor quality Untrained Posters 7:30 –
years proprietorship. low standards few Local radio 8:00
of hygiene. pm
Credit
facilities Is
offered.
Ndegechai 2 Sole Fair Qualified Only 7:00 –
restaurant years proprietorship Minimal few posters 8:00
Poor hygiene pm
Saptet restaurant 3 Sole Fair Over Local news 7:00 –
years proprietorship Minimal staffed papers 9:00
Fair hygiene Not pm
qualified
staff.
The following are ways by which the proposed business will take advantages of competitor’s
weakness to ensure that the business is successful.

• Employ high skilled and qualified personnel with good qualification and experience.

• The hygienic standard of the proposed business will be maintained at the highest
possible standard at all times.

• The location is at a strategic point.

• The proposed business shall offer credit features to the loyal customers.

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2.4: METHODS OF PROMOTION AND ADVERTISING:

2.4.1: ADVERTISING:
During the opening of the restaurant, the potential customers will be informed through
the following ways.

• Posters- this will be put at strategic places.

• Single page handouts will also be printed and distributed to potential customers.

• A grand opening will be organized where the first one hundred people will be
given free meals of their choice.

• The local television will be displaying or portraying an image of a cup of coffee

with two snacks during advertisement programs. This image is in regard of the
proposed business. The advertisement will be done every day for the first three
months of operation, and then it will be changed to once per week. This
advertisement will lost the proposed business around ksh 10 000 per month.

2.4.2: PROMOTION:
The proposed business will use the following methods to attract more customers.

• Television will be placed in the dining room; customers will be able to watch those
favorite programs.

• Offering of free complementary e.g. free salads, barbeque, sauces and tomato sauces
with every meal.

• Cooks will be in there respective uniforms.

The promotional campaign will be planned earlier before even the beginning of the business.
This will cost the business around kshs 5000 per month. The promotional campaigns will be
done for the first 6 months only. This will enable the business to pick up and penetrate in the
market.

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2.5: PRICING STRATEGY:
In order to maintain high sales license maximum profits, the proposed business will set
reasonable and customer’s friendly prices. The prices of the products will be determined by the
following factors

• Competitor’s price: --In order to attract more customers, it will be necessary to offer
slightly lower prices than the competitors.

• Cost of production – this includes the cost of raw materials, labor, rent, electricity,
water e.t.c.. This will ensure that the business pays its costs and makes a profit.

• Target market. – Prices of the products will also be determined by the purchasing
power of the targeted people in the market. In this case the purchasing power of the
students will be put into consideration.

• Market demand. – The pricing of the products will also be determined by the
demand of the products. These products with high demand will be slightly expensive
than those products whose demand is low.

2.5.1: PRICE LIST OF SOME OF THE PRODUCTS OFFERED.

1. Breakfast
Tea 10
Coffee 15
Milk 30
Full breakfast ( tea/ coffee, juice, toast) 80
Snacks
Sausages 20
Mandazi 5
Samosa 10
Toast 10
Main meal
Ugalisukuma 25
Ugali beef, fish, liver 60
Chips fried, liver, beef 80

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 Matoke/ peanut beef 45
Chapatti/green grams, beans 25
Chips/ chicken 130
Ugali plain 10
Chips plain 30
Matoke plain 30
Beverages
Uji 10
Fresh juice 30
Soda large 30
Soda small 40
Yoghurt 40

2.6: SALE TACTICS:

The proposed business will be the cross the count sales to reach out to its customers. The
proposed business will put its products in transparent cup-boards so that the customers can see
and come up with these choices. Staff persons who will be selling products will be of high
knowledge and experience to enhance efficiency and accuracy.

Recruitment will be done so as to come up with only the best sales. There is possibility of
utilizing distributors and agents who will be distributing products to other potential customers.
Distributors and agents will be motivated through the following ways.

• Good pay as per the sales.

• Promotion.

• Rewards for good performers.

They will be selected formally as per the selection policy of the proposed business.

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2.7: DISTRIBUTION STRATEGY:
Customers will be coming to the restaurant to take these meals, though in special cases meals
will be delivered to them wherever they want though at a small fee. The proposed business will
use distributors as a channel of taking products to customers outside the facility. The business
will have a pick up for distributing its products.

The transport cost per month will be amount ksh,10 000. The problems that will be faced during
distribution of products will be associated by weather e.g. high rainfall.

Windy season

To overcome those problems, the proposed business will equip its staffs with the correct dressing
and other equipment’s.

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 CHAPTER THREE:

3.0: ORGANIZATIONAL AND MANAGEMENT PLAN

3.1 ORGANIZATION STRUCTURE

The organization structure of the proposed business will be as follows:

Manager

6 WAITERS

2 CLEANERS

4 cooks

Casher

Supervisor

3.2: MANAGEMENT TEAM

The proposed business will be managed by the owner of the business who is Lilian Boiyo. She is
at her final level of completing Certificate in Food and Beverage. she also has entrepreneurial
skills which are necessary for effective running of the business.

3.2.1: DUTIES AND RESPONSIBILITIES OF MANAGERS:

• She is the one to raise the initial capital.
• She is the one to set both long term and short term goals and initiate strategies to initiate
them.
• She is the one to recruit and dismiss staffs whenever necessary.
• She is the one to acquire all necessary legal documents.
• She is the one to control financial aspects of the business.
• She is the one to assign daily duties to workers.

3.3: OTHER PERSONNEL:

The proposed business intends to here 14 staffs other personnel .these are

• One supervisor
• One cashier
• Four cooks
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 • Two cleaners
• Six waiters

SUPERVISOR:
These types of personnel will be employed by the proposed business under the following
qualifications.

• Good communication skills.

• Should have computer knowledge.
• Should have at least a certificate in Business management.
Duties and responsibilities

• He/she will be carrying out supervisory duties.

• This is monitoring all the daily activities within the premises.
• He/she will be representing the manager in her absence.
• She will be the one to identify what is missing and making orders.
CASHIER

This type of personnel will be employed under the following qualifications.

• Should posses ATC final level.

• Should be computer literate.
• Should have experienced not less then two years in the same field.
• Should have good communication skills.
Duties and Responsibilities.

• Receiving cash from the clients.

• Repairing the budget.
• Balancing of cash flows.
• Paying other staffs.

COOKS.

Four cooks will be hired under the following conditions.

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 • Experienced of at least 5 years.
• Should have a certificate of food and beverage services.
• Good communication skills.
Duties and responsibilities.

There duties will be as follows.

• Preparing foods and drinks.

• Collecting relevant materials from the store e.g. firewood/charcoal and other
materials for cooking.
WAITERS.

Six waiters will be employed by the proposed business under the following qualifications.

• good communication skills

• A certificate in public relation
• Experience of at least four years in the same field

Duties and responsibilities

Their duties will be as follows

• Serving the customers

• Welcoming the clients
• Making sure that the serving table and utensils are in order

CLEANERS.

Four cleaners will be employed under the following condition

• Aged 18 years and above

• Healthy
• Good public relations
• Good communication skills
Duties and responsibilities

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Carrying out general cleaning within the premises and its environs after working hours and
before the working hours

Any duties assigned by their managers or supervisors

3.4. RECRUITMENT, TRAINING AND PROMOTION OF PERSONNEL

In order for the proposed business to succeed in its anticipated activities, a well outlined plan for
staffing the business will be put in place.

3.4.1. RECRUITMENT
This will be done at the start of the business operation as well as subsequent when adding more
staffs due to increased demand. Recruitment will involve finding the right person for each job;
the following process will be followed during recruitment of staffs.

3.4.2. QUALIFICATION REQUIRED FOR EACH POSITION

1. Supervisor

• Should be computer literate

• Should have at least a certificate in business administration
• Should have experience of not less than five years
• Should have good communication skills
• Should be able to work under maximum supervision
2. Cashier

• Should posses at least ATC final level

• Experience of at least two years in the related file
• Computer literate
• Should be able to work under maximum supervision
• Should be able to work under maximum supervision
• Should be 25 years and below 35 years

3. Waiters

• Should poses a certificate in food and service operations

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 • Should have good communication skills
• Should be neat and smart
• Should be 18 years to 35 years of age
• Cooks
• They should possess a certificate in cookery
• Experience of at least 5 years
• Able to communicate both Kiswahili and English
• Over 18 years ad below 35 years of age
• Cleaners
• Should be healthy
• Good public relation
• Good communication skills
• Able to work under maximum supervision.

3.4.3: TRAINING NEEDED FOR THE WORKERS

Since all staffs will be required to have at least two years working experience prior to being
recruited, it is assumed that they will be required to unless otherwise requirement conditions that
will call for training are:

• When the business introduces a new technology

• When a staff is promoted to a higher level
• When the need for motivation through training is identified

3.4.4. PROMOTION
Promotion means appointing and employee to a position of operator responsibilities or authority
this will be on merit basis i.e

• an employee whose performance would be exceptional good over a considerable period

of time, will be promoted to higher levels oat the first opportunity
• Upon the acquisition of additional training one will be promoted
Promotion on merit will enable the proposed business to retain competent employees who
might otherwise leave the organization for better prospect

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The proposed business will also use the following methods to control labour turn over

• Recognizing and recording competent staffs.

• Motivating competent employees to greater efforts

3.5: REMUNERATION AND INCENTIVES:

3.5.1 PROPOSED REMUNERATION STRUCTURE:

Position No of workers Basic pay Allowance Gross pay

Manage 1 4500 1500 6500

r

Cooks 2 2500 x2 1000 x 2 7000

Waiters 3 2000 x 3 1000 x 3 9000

Total 22500

Remuneration and salaries will be offered as per the title or qualification held by each and every
employee

There will be bonuses and commissions for both staffs and customers

3.5.2: INCENTIVES
In addition to monitory rewards the proposed business will offer its staff incentives in form of
maternity leave with pay .the staff will also be provided with uniform free of charge and meals
while on duty .

3.6: LICENSES PERMITS AND BY LAWS

These legal documents will be obtained form the following sources.

• Public health certificate which will be issued after 6 months will be obtained from the
public health office at the cost of 1,800/=
• The trading licences issued by Kericho municipal council at the cost of 1,500.
• A head of state portrait which will be at the cost of kshs 100.

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3.7: SUPPORT SERVICES.
These are some of the services the proposed business will require form other business a well as
organization for a smooth and efficient functioning .these services are:

• Banking
The proposed business will have its financial services from equity bank P.o box
80 Kericho. The bank will be keeping the business money as well as advising how
to prepare financial statements

• Insurance
The proposed business will be covered with Madison Insurance P.O Box
22 kericho. The insurance will cover the business against expected occurrence

e.g fire

• Security
The proposed business will require security services from G4 s company ,
Kericho branch, they will provide security at night

• Transport services
Transport will be hired from the nearest farm to transport goods and services to
the proposed business

21
 CHAPTER FOUR:

4.0 OPERATIONAL PLAN

4.1: PRODUCT OR SERVICE DESIGN AND DEVELOPMENT

The proposed business will lay down comprehensive strategy concerning the production of items
as well as delivery of services to esteemed customers products and services will be unique and of
high quality. The proprietor will be both creative and innovative when giving services.

The following will be strictly adhered to in ensuring efficient and quality production of products
by the restaurant;

• Ensuring that the best and highest quality of raw material will be utilized for the production of
products and the highest quality thus ensuring customers’ satisfaction.
• Have the latest and best equipment and machine for the production process.
• Have highly qualified and trained personnel to engage in production processes.
• Engage customers in order to look for areas of dissatisfaction and work on improving them and
satisfying their needs.

4.2: PRODUCTION FACILITIES AND CAPACITY:

4.2.1 FACILITIES
Proposed business will be operating from the ground floor on the Buxton building. The room is
quite large and has already been partitioned into kitchen, store, and wash room as it was
previously used as a hotel. This will save a lot of money in partitioning cost
The room has already adequate sanitary facilities including well maintained toilets necessary for
a hotel. The premise has spacious packing facilities that can accommodate up to six cars at a
time.

The premise has a back yard which is quite large and can be used for expansion purposes like
putting up a tent where people can sit. The rent will be Kshs 4,000 monthly after paying a
deposit of Kshs. 8,000

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4.2.2 CAPACITY
Equipment No required Capacity Unit cost Total cost Source
Table 6 - 1000 6000 J Workshop
Chair 20 - 500 10000 J Workshop
Fixtures - - - 15000 Maiyo Supplies
T.v SETS 1 18 inches 17500 17500 Nakumat
Cooker 1 - 10500 10500 Nakumat
Video 1 - 12600 12600 Nakumat
Jiko 2 - 400 800 Juakali
Refrigerator 2 - 16500 16500 Uchumi
Sufurias (medium) 8 - 150 1200 SonduMaket
Sufurias ( large) 5 - 400 2000 Sondu Market
Plates 60 - 30 1800 K centre
Cups 30 - 25 750 K centre
Spoons and forks 140 - 10 1400 K centre
Serving spoons 4 - 50 200 K centre
Table knifes 20 - 20 400 K centre
Kitchen knifes 5 - 60 300 K centre
Frying pan 3 - 200 600 Uchumi
Thermos flask / 9 2 litres 250 2250 K centre
kettle
Blender 2 - 1500 3000 Tims house hold
Jugs 8 - 50 400 Tims house
Meat mincer 2 - 2000 4000 Tims hold
Trays 4 - 200 800 K centre
Dust bin 2 - 100 200 Juakali
Miscellaneous - - - 4000 Sondu Market
Total 112,200

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4.2.3 MAINTENANCE AND REPAIR
It’s only a few equipment that will need maintenance and repair, for those which have guarantees
or their guarantees have not expired will be serviced by the suppliers i.e. for those without
guarantee, or those guarantees which have expired, experts will be hired after every six months
to ensure that they do not fail hence affect performance of business.
If spare parts will be needed, the suppliers or other known dealers of the equipments will be
contacted to supply them such. Such spares will only be used after they have been confirmed to
be genuine.

4.2.4 FLOOR LAYOUT

24
4.2 PRODUCTION AND SERVICE STRATEGY
The proposed business room is quite large hence will 1 e arranged in a manner that will hold up
8 tables with chairs each hence can accommodate 48 customers at a time. This means that the
restaurant will have a sitting capacity to 48 customers at time. This i quite good enough capacity
compared to what most of its competitors have.
Each table will have colorful mats and flowers to give attractive environment for eating. The
floor will be covered with a carpet to maintain cleanliness and I r easy cleaning. Menu will be
displayed on each table so as to be accessed easily by customers.

4.4: PRODUCTION/OPERATION PROCESS

The restaurant will be open for 12 hours i.e. from 8:00 p.m to 8:00 pm, but the workers will be
required to be at their places of work at least an hour early to start proper function.
The business will ensure that quality is maintained through;
• Having well trained and experienced staffs who are well motivated.
• Good quality equipments and machine which are well maintained.
• Vaccinating all employees against communicable le disease and the hygienic standards of the
hotel will be maintained at the highest possible level at all times.

4.5 REGULATIONS AFFECTING PRODUCTION/OPERATION

The following regulations compliances will affect operation/production of proposed
business.
a) HEALTH
All employees will be required to have a health certificate from the ministry of health which is
acquired after medical examination. They will also be required to go for medical check-ups after
every six months; this is usually to avoid spread of diseases are contamination.

b) UNIFORMS
Workers will be required to wear uniforms; all the VQ ) workers will have to wear white aprons
while the waiters will wear blue short sleeved jackets. This is to Identify the workers from
customers.

c) INSURANCE

25
This is a very important requirement for the business since it will cover it against any future
catastrophes like fire break-outs, theft of property and even injury to workers. It will enable her
to have a starting point incase such unfortunate circumstances occur.
d) TAX REGULATION

All tax levies will have to be paid to the income tax department to avoid any conflicts with
authorities. This will also include tax charged earnings.

The business will also require to remit employee monthly contribution to the National Social
Security Fund (N.S.S.F) and to the National Hospital Insurance Employee Fund (N.H.I.F) to
cater for the future well being of its employees.

4.3 PRODUCTION/SERVICE STRATEGY

4.3.1 MATERIAL REQUIREMENT

The table below shows the material, qualities and cost )f commodity on monthly basis;

Materials Quality Unit cost Total cost Source

Beans 1 debe 280 280 Grace grains

Green grams 20kg 50 1000 Grace grains

Rice 40kg 45 1700 Sokomjinga

Wheat flour 1 bundle 865 865 Hassan wholesaler

Maize flour 2 bundles 392.5 785 Hassan wholesaler

Banana 2 stocks 200 400 Nabongo market

Potatoes 1 bag 800 800 Nabongo market

Beef 15 kg 100 1500 Kabis meat product

Chicken 10 150 1500 SokoMjinga

Fish 40 pieces 25 1000 Vunya fish pot

26
 Tomatoes 1 crate 300 300 Nabongo market

Onions 2 nets 250 500 Nabongo market

Cabbages 3 heads 150 450 Nabongo market

Carrots 20kg 10 200 Nabongo market

Kales 1 bag 500 500 Sokomjinga

Cooking oil 20 litres 1300 1300 Shariff Supermarket

Soda 15 crates 320 4800 Coke bottlers

Sauce 10 litres 250 500 Shariff Supermarket

Fruits - 2000 2000 Nabongo market

Charcoal 10 sacks 200 2000 Makena stores

Sugar 50 kg 3500 3500 Hassan wholesaler

Serviettes 5 cartons 550 10500 Rahani supplier

Margarine 4kg 150 600 Rahani supplier

Milk 300 litres 150 6000 Maziwa dairy

Flowers 4 bundles 80 320 Blossom florist

Total 43,300

4.3.2: MONTHLY PRODUCTION FOR OPERATION COST

Monthly production for operation cost will be;
Labour cost 22,500
Add cost of material 43,300
=65,800
The table below shows the monthly production overheads

ITEM MONTHLY COST

27
 Rent 4,000

Electricity bill 800

Water bill 400

Telephone bill 1 ,200

Disposal bill 100

Transport 1,200

Miscellaneous 300

Total 8,000

CHAPTER FIVE:

5.0: FINANCIAL PLAN

5.1: PRE-OPERATIONAL COST:

Before the proposed business commences operation, adequate preparation would be necessary in
terms of acquisition of basic facilities, equipment and services. This will enable the business to
have a successful start leading to ultimate pre-operational costs ill be as estimated below

PRE-OPERATIONAL COST FOR THE PROPOSED BUSINESS

ITEM COST (Ksh)
Business registration 500
Post office box rental 2000
License permits 1500
Electricity meter account 7000
Water meter account 5000
Equipment / furniture 112200

28
 Stock 43300
Rent 4000
Miscellaneous 1300
TOTAL 181300

5.2: CASH FLOWS PROJECTING

5.2.1: CASH FLOW OF SUNRISE RESTAURANT FOR YEAR 2023

A TO
PARTIC JA FE MA AP MA JU SE NO DE
JUL U OCT TA
ULARS N B R R Y N P V C
G L
Dash Ksh Ksh Ksh Ksh Ksh Ksh Ks Ksh Ksh Ksh Ksh
Kshs. Kshs.
inflow s. s. s. s. s. s. hs. s. s. s. s.
22 286
Beginnin 402 233 240 246 239 233 2283 207 20460 202 202
36 383
g cash 500 330 060 640 840 511 92 143 4 035 116
63 4
62
690 703 708 600 718 725 7400 758 779 655 845
Sales 10 76200
00 00 00 00 00 00 0 00 00 00 900
0
Debtors 0 0 0 0 0 0 0 0 0 0 0 0 0
28 370
Total 471 303 310 306 311 306 3023 282 28080 279 267
57 973
flow 500 630 860 640 640 011 92 943 4 935 616
63 4
Cash
outflow
Pre-
159 159
operation 0 0 0 0 0 0 0 0 0 0 0
500 500
al cost
Purchase 302 302 302 300 303 303 3042 30 305 30560 306 301 363
s 70 70 70 00 50 50 0 00

29
 0 60 00 50 800
1-
400 400 400 40 400 400 400 480
Rent 200 0 0 4000 4000
0 0 0 00 0 0 0 00
0
Salaries 22
225 225 225 225 225 225 2250 225 225 225 270
and 50 22500
00 00 00 00 00 00 0 00 00 00 000
wages 0
Electricit 130 130 125 140 135 148 12 135 142 155
1490 1400 600
y 0 0 0 0 0 0 00 0 0 40
45 628
Water 400 400 500 500 550 600 610 580 590 600 500
0 0
Stationer - 180
0 0 0 600 0 0 0 600 0 0 0
y 600 0
Advertisi 360 250 250 106
0 0 0 1000 0 0 1000 0 0
ng and 0 0 0 00
promotio
n
50 600
Postage 500 500 500 500 500 500 500 500 500 500 500
0 0
170 140 150 120 130 132 135 1150 137 130 100 159
Transport 1390
0 0 0 0 00 00 00 200 00 0 0 80
250 250 250 250 250 250 25 250 250 250 300
Insurance 2500 2500
0 0 0 0 0 0 00 0 0 0 00
150 150 150 150 150 150 15 150 150 150 180
Security 1500 1500
0 0 0 0 0 0 00 0 0 0 00
Creditors -0 0 -0 0 0 0 0 0 0 0 0 0 0
Loan 10
104 104 1041 104 104 104 833
repaymen 0 0 0 0 41 10417
16 17 6 16 16 17 32
t 7
Interest 156 156 15 156 156 156 125
0 0 0 0 1563 1562
on loan 3 2 62 3 3 2 00

30
 Capital
and 600 600
0 0 0 0 0 0 0 0 0 0 0
Investme 0 0
nt.
Telephon 45 613
500 200 400 600 600 590 600 500 550 540 600
e/mobile 0 0
Miscellan 130 39 600
500 800 600 400 300 280 400 300 380 350
eous 0 0 0
78 106
Total 238 635 642 668 781 776 7872 783 778 836
61 78769 446
cash flow 170 70 20 00 29 19 9 39 19 79
9 2
20 1’2O 264
2333303 246 239 233 228 2236 204 202 183
Net cash 71 2’O3 527
240060 640 840 511 392 63 604 116 937
44 5 2

5.2.2: PROFOMA CASH FLOW OF SUNRISE RESTAURANT FOR YEAR 2024

PARTIC JA FE MA AP MA JU AU SE OC NO DE TOT
JUL
ULARS N B R R Y N G P T V C AL
Cash Ksh Ksh Ksh Ksh Ksh Ksh Ksh Ksh Ksh Ksh Ksh Ksh Kshs
inflow s. s. s. s. s. s. s. s. s. s. s. s. .
Beginning 183 187 192 197 190 198 207 220 219 230 248 270 2549
cash 937 556 706 767 208 939 840 871 881 122 993 504 324
828 830 836 730 865 885 910 779 894 961 986 885 1038
Sales
00 00 00 00 00 00 00 00 00 00 50 00 950
529 400 380 100 420 420 435 360 410 570 630 405 5059
Debtors
8 0 0 0 0 0 0 0 0 0 0 0 8
Total 272 274 280 271 280 291 303 302 313 331 353 363 3638
inflow 035 556 106 767 908 639 190 371 381 922 943 054 872
Cash
outflow
Pre- 0 0 0 0 0 0 0 0 0 0 0 0 0
operation

31
al cost
307 308 308 302 309 309 309 304 311 312 313 306 3701
Purchases
00 50 50 50 20 50 60 00 20 00 00 00 00
400 400 400 400 400 400 400 400 400 400 400 400 4800
Rent
0 0 0 0 0 0 0 0 0 0 0 0 0
Salaries
255 255 255 255 255 255 255 255 255 255 255 255 3060
and
00 00 00 00 00 00 00 00 00 00 00 00 00
wages
100 105 111 120 125 136 136 120 1308
Electricity 800 870 900 980
0 0 0 0 0 0 0 0 0
Water 550 600 650 480 530 620 680 610 650 710 710 600 7390
Stationery 650 0 0 0 650 0 0 0 650 0 0 0 1950
Advertisi
160 160
ng and 0 0 0 0 0 0 0 0 0 500 3700
0 0
promotion
Postage 500 500 500 500 500 500 500 500 500 500 500 500 6000
140 145 142 100 105 130 134 120 134 142 142 124 1558
Transport
0 0 0 0 0 0 0 0 0 0 0 0 0
Repair
and 150 150
0 0 0 0 0 0 0 0 0 0 4500
Maintena 0 0
nce
250 250 250 250 250 250 250 250 250 250 250 250 3000
Insurance
0 0 0 0 0 0 0 0 0 0 0 0 0
150 150 150 150 150 150 150 150 150 150 150 150 1800
Security
0 0 0 0 0 0 0 0 0 0 0 0 0
100 130 136 110 120 125 146 146 1348
Creditors 800 900 800 850
0 0 0 0 0 0 0 0 0
Loan
104 104 104 104 104 104 104 104 104 104 104 104 1249
repaymen
16 17 16 17 16 17 16 17 16 17 16 17 98
t

32
 Interest 156 156 156 156 156 156 156 156 156 156 156 156 1875
on loan 3 2 3 2 3 2 3 2 3 2 3 2 0
Capital
and 750
0 0 0 0 0 0 0 0 0 0 0 7500
Investmen 0
t
Telephon
500 300 400 250 430 600 650 300 420 460 560 340 5210
e/mobile
Miscellan 130
500 680 400 530 600 400 500 600 610 650 400 7170
eous 0
Total cash 844 818 823 815 819 837 823 824 832 831 834 907 1001
flow 79 49 39 59 69 99 19 89 59 99 39 09 408
187 192 197 190 198 207 220 219 230 248 270 272 2637
Net cash
556 707 767 208 939 840 871 882 122 723 504 345 464

5.2.3: PROFOMA CASH FLOW OF SUNRISE RESTAURANT FOR YEAR 2025

PARTIC JA FE MA AP MA JU AU SE OC NO DE TOT
JUL
ULARS N B R R Y N G P T V C AL
Cash Ksh Ksh Ksh Ksh Ksh Ksh Ksh Ksh Ksh Ksh Ksh Ksh Kshs
inflow s. s. s. s. s. s. s. s. s. s. s. s. .
Beginning 277 285 305 331 342 374 411 460 486 540 602 676 5094
cash 345 995 986 157 008 328 638 678 068 018 678 398 297
100 104 107 977 110 116 125 106 130 137 148 121 1405
Sales
500 000 800 00 500 200 600 000 500 600 000 000 400
460 530 680 310 700 730 790 420 840 960 120 620 8240
Debtors
0 0 0 0 0 0 0 0 0 0 00 0 0
Total 382 395 420 431 459 497 545 570 624 687 762 803 6582
inflow 445 295 586 957 508 828 138 878 968 218 678 598 097
Cash
outflow
re- 0 0 0 0 0 0 0 0 0 0 0 0 0
operation

33
al cost
316 316 317 310 318 319 319 313 320 320 321 316 3808
Purchases
00 00 20 00 80 70 70 00 00 00 60 50 50
500 500 500 500 500 500 500 500 500 500 500 500 6000
Rent
0 0 0 0 0 0 0 0 0 0 0 0 0
Salaries
310 310 310 310 370 370 370 370 370 370 370 370 4200
and
00 00 00 00 00 00 00 00 00 00 00 00 00
wages
110 120 100 139 145 145 130 138 140 150 142 1557
Electricity 980
0 0 0 0 0 0 0 0 0 0 0 0
later 600 630 700 560 760 810 830 680 790 820 900 850 8930
Stationery 720 0 0 0 720 0 0 0 720 0 0 0 2160
Advertisi
150 0 150 100
ng and 0 0 0 0 0 0 0 0 4000
0 - 0 0
promotion
Postage 500 500 500 500 500 500 500 500 500 500 500 500 6000
120 141 100 100 128 134 148 120 1357
Transport 900 920 990 850
0 0 0 0 0 0 0 0 0
Repair
and 200 200 25 250
0 0 0 0 0 0 0 0 6500
Maintena 0 0 00 0
nce
250 250 250 250 250 250 250 250 250
Insurance 2500
0 0 0 0 0 0 0 0 0
150 150 150 150 150 150 150 150 150 150 150 150 1800
Security
0 0 0 0 0 0 0 0 0 0 0 0 0
125 133 130 120 150 155 160 126 139 145 153 140 1676
Creditors
0 0 0 0 0 0 0 0 0 0 0 0 0
Loan
104 104 104 104 4166
repaymen 0 0 0 0 0 0 0 0
16 17 16 17 6
t

34
 -
Interest 156 156 156
156 0 0 0 0 0 0 0 0 6250
on loan 3 2 2
3
Capital
and 900
0 0 0 0 0 0 0 0 0 0 0 9000
Investmen 0
t
Telephon .39
400 500 540 580 600 630 450 530 580 690 560 6450
e/mobile 0
Miscellan
900 870 500 470 650 400 480 320 360 450 520 600 6520
eous
Total cash 914 893 894 899 851 861 844 848 849 845 862 956 1052
flow 49 09 29 49 80 90 60 10 50 40 80 80 226
290 305 331 342 374 411 460 486 540 602 676 707 5529
Net cash
996 986 157 008 328 638 678 068 018 678 398 918 871

5.3: PRO—FORMA INCOME STATEMENT:

PARTICULARS 2023 2024 2025

Fixed costs 48000 48000 60000
Salaries and wages 270000 306000 420000
Insurance 30000 30000 30000
Security 18000 18000 18000
Interest on loan 12500 18750 6250
License and permits 1500 1500 1500
Total 380000 422250 533750
Variable cost
Electricity 15540 13020 15570
Water 6280 7370 8930
Telephone / mobile 6130 5210 6450

35
 Advertising and promotion 10600 3700 4000
Postage 6000 6000 6000
Stationery 1800 1950 2160
Transport 15980 15550 13570
Repair and maintenance 5000 4500 6500
Miscellaneous 6000 7170 6520
Purchases 363800 370100 380850
Total 437130 434570 450550

5.4: PROFOMA BALANCE SHEET FOR THE YEAR ENDING DEC 2023, 2024, 2025
PARTICULARS 2023 2024 2025
ASSETS
FIXED ASSETS
Machinery and equipment 68200 70200 71200
Furniture and equipment 44000 46000 46500
TOTAL FIXED ASSETS 112200 116200 117700
CURRENT ASSETS
Cash at hand 60000 72345 150000
Cash at bank 123937 200000 557918
Stock 43300 45000 46000
Debtors - 5298 82400
TOTAL CURRENT 227237 322643 836318
ASSETS
TOTAL ASSETS 339437 438843 954018
LIABILITIES
CURRENT LIABILITIES
LONG TERM
LIABILITIES
BANK LOAN 166667 41667 -
Investment Equity 109232 203648 560748
Net profit 63538 193528 393270
TOTAL LIABILITIES 339437 438843 954018

36
5.5: BREAK EVEN ANALYSIS FOR THE YEAR 2023, 2024, 2025.

PARTICULARS 2023 2024 2025

380000 422000 380000

Break even = Fixed = 1- (437130) 1- (437130) = 1- 50555)
Cost 1845900 1038950 1405400
1- (variable cost) sales =380000 =422250 =535750
. 0.48 0.58 0.68
=791666.67 =728017.24 =787867.65

Break even point Kshs 791666.6 Kshs 728017.24 Kshs 787867.65

37
5.6: PROFITABILITY RATIOS FOR THE YEAR 2023, 2024, 2025

RATIO TYPE WORKING 2023 2024 2025

FORMULA

GROSS Gross profit x 100 482100 x 100 668850 x 1024550 x 100

845900 100
Total sales
1038950 1405400
PROFIT =57%
=64.38%
72.9%

RATIO

RETURN ON Net profit after tax 63538 x 100 193528 x 393270 x 100
EQUITY x 100 Owners 15000 100 150000
equity =42% 150000 =262%
=129%

RETURN ON Net profit after tax 63538 x 100 193528 x 393270 x 100
INVESTMENT x 100 Total 33943 100 954018
investment =19% 438843 =41%
=44%

38
5.7: DESIRED FINANCING
The desired financing for the proposed business will e as per table below

ITEM AMOUNT (Kshs)

Pre-operation cost 181300

Working capital
221200

Total 402500

5.8 PROPOSED CAPITALIZATION

The proposed capital for the proposed business will be as indicated below

ITEM AMOUNT (Kshs)

Owners contribution 150000
Borrowing from friends 2500
Bank loan 250000
Total investment 402500

39