BUSINESS PLAN TITLE: FRESHYLY FAST FOODS

PRESENTER: WABWIRE SHARON VIVIAN

INDEX NO: 4061040028

SUPERVISOR: MRS. YALA

INSTITUTION NAME: KIBONDENI COLLEGE

SUBMITTED: KENYA NATIONAL EXAMINATION COUNCIL

IN PARTIAL FULFILMENT FOR THE

AWARD OF DIPLOMA IN CATERING AND

ACCOMODATION MANAGEMENT

COURSE: DIPLOMA IN CATERING AND ACCOMODATION

MANAGEMENT

SERIES: JUNE – JULY

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ACKNOWLEDGEMENT

I extend my heartfelt gratitude to everyone who contributed to the realization of Freshly Fast Foods.
Special thanks to our investors for their unwavering support and belief in our vision. I also appreciate
the dedication and hard work of our management team and staff who have tirelessly worked towards
turning our dream into a reality. Additionally, I would like to thank our families and friends for their
encouragement and understanding throughout this journey.

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Dedication

Freshly Fast Foods is dedicated to all individuals who prioritize their health and well-being. My
commitment to providing nutritious and delicious food options is inspired by the desire to empower
people to make healthier choices without sacrificing convenience. This venture is dedicated to every
customer who seeks a better, fresher alternative in the fast food landscape.

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iv
Contents

ACKNOWLEDGEMENT ..................................................................................................... ii

Dedication ............................................................................................................................. iii

DECLARATION ........................................................................ Error! Bookmark not defined.

Executive Summary ............................................................................................................ viii

CHAPTER 1 .......................................................................................................................... 1

BUSINESS DESCRIPTION .................................................................................................. 1

1.0 The Sponsor ..............................................................................................................................1
1.2 Business Name ..........................................................................................................................1
1.3 Business Location and Address ..............................................................................................2
1.4 form of the Business Ownership .............................................................................................3
1.5 Products and Services..............................................................................................................4
1.6 Justification of the Business ....................................................................................................4
1.7 Industry ....................................................................................................................................4
1.8 Goals of the Business ...............................................................................................................5
Short-Term Goals .............................................................................................................................................................................5
Long-Term Goals..............................................................................................................................................................................5
1.9 Entry of the Business ...............................................................................................................6
CHAPTER 2 .......................................................................................................................... 7

2.0 Marketing ......................................................................................................................... 7

2.1 Customers .................................................................................................................................7
2.1.1 Primary Target Customers ................................................................................................................................................7
2.1.2 Secondary Target Customers ............................................................................................................................................8
2.2 Market Share ...........................................................................................................................8
2.3 Competition ............................................................................................................................10
2.4 Methods of Promotions and Advertisement ........................................................................11
2.5 Pricing .....................................................................................................................................12
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2.6 Sales Tactics ...........................................................................................................................13
2.7 Distribution ............................................................................................................................13
CHAPTER 3 ........................................................................................................................ 14

ORGANIZATION AND MANAGEMENT PLAN .............................................................. 14

3.1 The Business Sponsor ............................................................................................................14
3.2 Evaluation of Performance ...................................................................................................15
3.3 Recruitment, Training, and Promotion ...............................................................................15
3.3.1 Recruitment ........................................................................................................................................................................... 15
3.3.2 Training.................................................................................................................................................................................. 15
3.3.3 Promotion.............................................................................................................................................................................. 15
3.4 Remuneration and Incentives ...............................................................................................16
3.4.1 Remuneration ....................................................................................................................................................................... 16
3.4.2 Incentives ............................................................................................................................................................................... 16
Challenges of incentives ............................................................................................................................................................. 16
3.5 Legal Requirements and Licenses ........................................................................................17
3.5.1 Permits.................................................................................................................................................................................... 17
3.5.2 By-Laws .................................................................................................................................................................................. 17
3.6 Support Services and Professional Advisors .......................................................................18
CHAPTER 4 ........................................................................................................................ 20

OPERATIONAL PLAN ...................................................................................................... 20

4.1 Production Facility and Capacity.........................................................................................20
4.2 Production Strategy ...............................................................................................................23
4.2.1 Ingredient Sourcing ........................................................................................................................................................... 23
4.2.2 Food Preparation ............................................................................................................................................................... 23
4.2.3 Equipment Utilization ....................................................................................................................................................... 23
4.2.4 Production Process............................................................................................................................................................ 23
4.2.5 Quality Control ................................................................................................................................................................... 24
4.2.6 Service and Delivery ......................................................................................................................................................... 24
4.3 Production Process ................................................................................................................24
4.3.1 Ingredient Sourcing and Storage ................................................................................................................................. 24
4.3.2 Food Preparation ............................................................................................................................................................... 25
4.3.3 Quality Control ................................................................................................................................................................... 25
4.4 Regulations Affecting the Operations ..................................................................................26
4.4.1 Health and Safety Regulations ...................................................................................................................................... 26
4.4.2 Fire Safety Regulations .................................................................................................................................................... 27
4.4.3 Business Operating Regulations ................................................................................................................................... 27
4.4.4 Employment Regulations ................................................................................................................................................. 27
4.4.5 Environmental Regulations ............................................................................................................................................ 28
4.4.6 Consumer Protection Regulations ............................................................................................................................... 28
4.4.7 Licensing for Special Products ..................................................................................................................................... 28
CHAPTER 5 ........................................................................................................................ 29

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THE FINANCIAL PLAN .................................................................................................... 29
5.1 Pre-Operational Costs ...........................................................................................................29
5.2 Working Capital ......................................................................................................................1
5.3 Cash Flow Statements .............................................................................................................2
5.4 Pro-Forma Income Statement ................................................................................................1
5.5 Pro-Forma Balance Sheet .......................................................................................................2
5.6 Break Even Analysis ................................................................................................................2
5.7 PROFITABILITY RATIOS ...................................................................................................3
5.8 Desired Financing ....................................................................................................................4
5.9 Proposed Capitalization ..........................................................................................................4
6.0 Potential Risks ................................................................................................................... 5
Supply Chain Disruptions .............................................................................................................5
Intense Competition.......................................................................................................................5
Brand Recognition .........................................................................................................................5
Operational Efficiency...................................................................................................................5
Economic Volatility .......................................................................................................................5
Regulatory Compliance .................................................................................................................5

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Executive Summary

Business Name: Freshly Fast Foods

Overview

Freshly Fast Foods aims to revolutionize the fast food industry by offering healthier, high-quality
alternatives to traditional fast food options. Our menu will feature a diverse selection of freshly
prepared meals, catering to health-conscious consumers who seek convenient and nutritious dining
options.
Market Opportunity:
The fast food industry is experiencing a shift towards healthier eating habits, driven by increasing
consumer awareness of the importance of nutrition and wellness. Freshly Fast Foods seeks to capitalize
on this trend by providing a menu that emphasizes fresh ingredients, balanced nutrition, and flavorful
offerings.

Unique Selling Proposition

Unlike traditional fast food chains that prioritize speed and convenience over quality, Freshly Fast
Foods will prioritize both. Our menu will feature a variety of freshly prepared salads, sandwiches,
wraps, and smoothies made from locally sourced ingredients whenever possible. We will also offer
customizable options to accommodate different dietary preferences and restrictions.
Target Market
Our target market consists of health-conscious individuals, including millennials, young professionals,
and families, who value convenience but refuse to compromise on quality when it comes to their food
choices. We will also target fitness enthusiasts and athletes looking for nutritious post-workout meals.
Marketing Strategy:
To attract and retain customers, we will implement a multi-channel marketing approach, including
social media advertising, influencer partnerships, and community events. We will also leverage digital
platforms to offer online ordering and delivery services, ensuring convenience for our busy clientele.
Financial Projections

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Based on market research and projected sales figures, we anticipate steady growth in revenue over the
next three years. Our financial projections indicate that Freshly Fast Foods will achieve profitability by
the end of the second year of operation.
Management Team
The management team behind Freshly Fast Foods brings together a diverse range of expertise in the
areas of culinary arts, food service management, marketing, and finance. With a shared passion for
promoting healthy eating habits, we are committed to ensuring the success and sustainability of our
business.

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CHAPTER 1

BUSINESS DESCRIPTION

1.0 The Sponsor

The primary sponsor and owner, Vivian, is a 21-year-old who infuses her company with an abundance
of enthusiasm, commitment, and entrepreneurial energy. Her goal is to give the people of Nambale and
the neighboring areas good, reasonably priced, and high-quality quick food. Vivian has a solid history
in the food sector and a wealth of experience in both managerial and culinary roles. These experiences
have given her the tools she needs to successfully operate a fast food company. Her personal resources
of Ksh. 209,000, augmented by loans and gifts, are being invested. Vivian's vision is to ended up the
go-to put for quick, new, and top notch nourishment in Nambale. Her mission is to provide an
uncommon eating encounter that combines quality, comfort, and reasonableness. She accepts within
the control of great nourishment to bring people together and points to make a inviting environment for
all clients.

As the sole proprietor, Vivian will direct day by day operations, make vital choices, handle budgeting
and monetary arranging, and guarantee the business's budgetary wellbeing. She will enlist, prepare,
and oversee staff to guarantee tall levels of client benefit and operational proficiency. Vivian will too
create and execute showcasing techniques, counting social media showcasing, nearby publicizing, and
limited time occasions. Guaranteeing all nourishment items meet the most elevated measures of quality
and security, she will persistently make strides menu offerings based on client input.

Committed to making her trade community-centered, Vivian plans to source fixings locally, supporting
neighborhood ranchers and providers. She extreme to take part in community occasions and activities,
cultivating solid connections with Nambale inhabitants.

Vivian's long-term objectives incorporate extending the menu to cater to differing tastes and dietary
needs, opening extra areas in neighboring towns, and presenting conveyance and online requesting
administrations. By ceaselessly improving and adjusting to advertise patterns, she points to remain
ahead within the competitive quick nourishment industry. With her commitment to quality and client
fulfillment, Vivian is poised to lead her trade to awesome victory, making it a beloved establishment in
Nambale and past.

1.2 Business Name

The business will be named Freshly Fast Foods. This name was chosen to reflect the core values and
offerings of the venture. "Freshly" emphasizes the commitment to using fresh ingredients and
providing freshly prepared meals, which is a cornerstone of the business's philosophy. "Fast Foods"
conveys the quick service and convenience that the business aims to offer to its customers. Together,
the name Freshly Fast Foods communicates the promise of delivering delicious, high-quality fast food
efficiently and affordably, making it an appealing choice for the residents of Nambale and surrounding
areas.

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1.3 Business Location and Address

Freshly Fast Foods will be strategically located along the main street of Nambale Town. This prime
location was selected to ensure high visibility and accessibility for both local residents and visitors.
Being situated in the heart of Nambale Town, the business will benefit from the steady flow of foot
traffic, making it convenient for customers to drop in for a quick and delicious meal.

The exact address for Freshly Fast Foods is:

Freshly Fast Foods

Main Street,
Nambale Town,
P.O Box 30197 – 00100 Busia

This central location not only makes it easy for customers to find and visit but also places the business
in a vibrant area with a mix of retail shops, offices, and other amenities, fostering a lively atmosphere
conducive to attracting a diverse clientele.

Freshly Fast Foods

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1.4 form of the Business Ownership

Freshly Fast Foods will operate as a sole proprietorship. In this form of business ownership, Wabwire
Vivian will be the sole owner and have full control over all aspects of the business. This choice aligns
with Vivian’s vision of maintaining personal oversight and direct involvement in the day-to-day
operations and strategic decision-making processes.

Advantages of Sole Proprietorship

i. Full Control: As the sole owner, Vivian has complete authority over business decisions,
allowing for quick and flexible decision-making without the need for consultation or approval
from partners or board members.
ii. Simple Setup and Low Cost: Establishing a sole proprietorship is relatively straightforward and
inexpensive compared to other business structures. This simplicity in setup helps in starting
operations quickly.
iii. Tax Benefits: Income earned by the business is treated as the personal income of the owner,
simplifying tax filings. Additionally, Vivian can take advantage of certain tax deductions
available to sole proprietors.
iv. Direct Incentives: The profits of the business go directly to Vivian, providing a direct
correlation between effort and reward. This can be highly motivating and rewarding on a
personal level.
v. Easy Decision-Making: Decisions can be made quickly without the need for lengthy
discussions or meetings, which can enhance operational efficiency and responsiveness.
Privacy: As a sole proprietor, Vivian is not required to disclose financial information or business
strategies to the public, allowing for a higher degree of privacy in business operations.

Disadvantages of Sole Proprietorship

i. Unlimited Liability: One of the most significant drawbacks is that Vivian is personally liable
for all business debts and obligations. This means that her personal assets are at risk if the
business encounters financial difficulties.
ii. Limited Capital: Raising capital can be challenging in a sole proprietorship since it relies solely
on the owner's personal finances and credit. This can limit the potential for business expansion
and growth.
iii. Workload and Stress: Running a business single-handedly can be demanding and stressful, as
all responsibilities, from management to daily operations, fall on Vivian’s shoulders.
iv. Continuity Issues: The business’s existence is tied to the owner. If Vivian decides to leave or is
unable to run the business, it may cease operations unless arrangements are made to transfer
ownership.

By choosing a sole proprietorship, Wabwire Vivian aims to leverage the advantages of full control and
simplicity in management, while being mindful of the potential challenges associated with personal
liability and the demands of solo operation. This structure aligns with her entrepreneurial spirit and
commitment to building Freshly Fast Foods into a successful and beloved local business.

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1.5 Products and Services

Freshly Fast Foods aim to offer a diverse menu that caters to a wide range of tastes and dietary
preferences, ensuring that all customers can find something they enjoy. The product lineup will
include:
i. Burgers: A variety of burgers made with high-quality ingredients, including classic beef,
chicken, and vegetarian options.
ii. Fries and Sides: Complementary sides such as crispy French fries, onion rings, and fresh
salads.
iii. Sandwiches and Wraps: A selection of sandwiches and wraps filled with fresh vegetables,
meats, and sauces.
iv. Beverages: A range of drinks including sodas, fresh juices, smoothies, and coffee.
v. Desserts: Sweet treats such as ice cream, milkshakes, and pastries to satisfy dessert cravings.
vi. Healthy Options: Salads, fruit bowls, and other healthier alternatives to cater to health-
conscious customers.
vii. Specials and Combos: Regularly updated specials and combo meals that provide value for
money and keep the menu exciting.
The focus will be on using fresh, locally sourced ingredients to ensure the highest quality and to
support the local economy.

1.6 Justification of the Business

The establishment of Freshly Fast Foods is justified by several key factors:

i. Market Demand: There is a growing demand for convenient, affordable, and high-quality fast
food in Nambale town. Many residents seek quick meal options that do not compromise on
taste or quality.
ii. Lack of Competition: Currently, Nambale town has limited fast food options, providing an
opportunity for Freshly Fast Foods to fill this gap and become the preferred choice for fast
food.
iii. Local Sourcing: By sourcing ingredients locally, the business not only supports the local
economy but also ensures fresh and high-quality products, which can be a significant
competitive advantage.
iv. Consumer Trends: Increasingly, consumers are looking for healthier fast food options. Freshly
Fast Foods can cater to this trend by offering nutritious alternatives alongside traditional fast
food items.
v. Economic Contribution: The business will create job opportunities for local residents,
contributing to the economic development of Nambale town.

1.7 Industry

Freshly Fast Foods operate within the fast food industry, a sector characterized by its focus on quick
service, convenience, and affordability. The industry is highly competitive, with numerous players
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ranging from large multinational chains to small local establishments. Key trends in the industry
include:

i. Health-Conscious Offerings: An increasing number of consumers are seeking healthier menu

options, leading many fast food businesses to diversify their offerings to include salads, fruit,
and other nutritious items.
ii. Technological Integration: Many fast food businesses are integrating technology to enhance
customer experience, such as online ordering, mobile apps, and self-service kiosks.
iii. Sustainability: There is a growing emphasis on sustainability within the industry, with
businesses adopting eco-friendly practices such as reducing waste, sourcing sustainable
ingredients, and using biodegradable packaging.
iv. Customization: Customers increasingly prefer customized meal options, allowing them to
choose ingredients and build meals according to their preferences.

1.8 Goals of the Business

Freshly Fast Foods has set several short-term and long-term goals to guide its growth and success:

Short-Term Goals

i. Establish a Strong Brand Presence: Create a recognizable brand through effective marketing
and high-quality service.
ii. Achieve Customer Satisfaction: Ensure customer satisfaction by maintaining high standards of
food quality and service.
iii. Break Even: Achieve financial stability by covering all initial costs and reaching a break-even
point within the first year of operation.
iv. Build a Loyal Customer Base: Develop a loyal customer base through exceptional service and
engaging promotions.

Long-Term Goals

i. Expand Menu Offerings: Continuously innovate and expand the menu to include new and
exciting items that cater to changing consumer preferences.
ii. Open Additional Locations: Open additional Freshly Fast Foods outlets in neighboring towns to
expand market reach and increase revenue.
iii. Implement Delivery Services: Introduce delivery and online ordering services to enhance
convenience for customers.
iv. Adopt Sustainable Practices: Implement sustainable business practices to minimize
environmental impact and appeal to eco-conscious consumers.
v. Achieve Market Leadership: Strive to become the leading fast food provider in Nambale and
surrounding areas.

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1.9 Entry of the Business

Entering the fast food market requires a strategic approach to ensure a successful launch and
sustainable growth. The entry strategy for Freshly Fast Foods includes:
i. Market Research: Conduct thorough market research to understand the preferences, needs, and
behaviors of the target audience. This includes analyzing competitors and identifying market
gaps.
ii. Location Selection: Choose a high-traffic location in Nambale town that is easily accessible to
the target market. The selected location should offer visibility and convenience to attract walk-
in customers.
iii. Menu Development: Develop a diverse and appealing menu that balances popular fast food
items with healthier alternatives. Regularly update the menu based on customer feedback and
market trends.
iv. Marketing and Promotion: Launch a comprehensive marketing campaign to create awareness
and attract customers. This includes social media marketing, local advertising, promotional
events, and special offers.
v. Quality Control: Implement strict quality control measures to ensure that all food items meet
high standards of taste, freshness, and safety. This builds trust and encourages repeat business.
vi. Customer Service: Focus on providing exceptional customer service to create a positive dining
experience. Train staff to be friendly, efficient, and responsive to customer needs.
vii. Community Engagement: Engage with the local community through events, partnerships, and
sponsorships to build strong relationships and establish Freshly Fast Foods as a community-
oriented business.
viii. Feedback Mechanism: Establish a feedback mechanism to continuously gather and analyze
customer feedback. Use this information to make improvements and adapt to changing
customer preferences.
ix. By following this entry strategy, Freshly Fast Foods aims to establish a strong foothold in the
fast food market, attract a loyal customer base, and set the foundation for future growth and
expansion.

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CHAPTER 2

2.0 Marketing

Marketing is a crucial component of Freshly Fast Foods' business strategy, aimed at creating
awareness, attracting customers, and establishing a strong brand presence in Nambale town. The
marketing plan focuses on understanding customer needs, developing effective promotional strategies,
and utilizing various channels to reach the target audience.

2.1 Customers

Identifying and understanding the target customers is vital for the success of Freshly Fast Foods. The
customer base will be segmented into several key groups to tailor marketing efforts effectively.

2.1.1 Primary Target Customers

Local Residents

i. Demographics: Families, young professionals, students, and retirees living in Nambale town.
ii. Needs: Affordable, convenient, and tasty meal options suitable for various age groups and
dietary preferences.
iii. Behavior: These customers value quick service and frequently seek out local dining options for
both regular meals and occasional treats.
Students

i. Demographics: Students from local schools, colleges, and universities.

ii. Needs: Budget-friendly, filling, and easily accessible meals that fit into a busy schedule.
iii. Behavior: Students are likely to dine out during lunch breaks, after school, or on weekends,
making them a key segment for promotional offers and discounts.
Working Professionals

i. Demographics: Office workers, retail employees, and other professionals working in and
around Nambale town.
ii. Needs: Quick, satisfying, and nutritious meal options that can be enjoyed during work breaks.
iii. Behavior: These customers often seek out lunch options and may also purchase meals for
breakfast or dinner, especially if they work late hours.
Visitors and Tourists

i. Demographics: Domestic and international tourists visiting Nambale town.

ii. Needs: Convenient and appealing dining options that offer a taste of local flavors and comfort
foods.
iii. Behavior: Tourists are likely to explore local dining spots and are attracted to well-reviewed
and popular establishments.

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2.1.2 Secondary Target Customers
Health-Conscious Individuals

Demographics: Individuals focused on maintaining a healthy lifestyle.

Needs: Healthy, low-calorie, and nutritious meal options, including salads, wraps, and fresh juices.
Behavior: These customers appreciate transparency in ingredient sourcing and nutritional information.

Families with Young Children

Demographics: Parents with young children living in or visiting Nambale town.
Needs: Kid-friendly meal options, family-sized portions, and a welcoming environment for children.

Behavior: Families are likely to visit during weekends and evenings, often seeking out special deals
and family combo meals.
Customer Engagement Strategies

Loyalty Programs: Implement a loyalty program to reward repeat customers with discounts, free items,
and exclusive offers.
Special Promotions: Offer regular promotions such as “Happy Hour” discounts, student discounts, and
family meal deals to attract various customer segments.
Community Involvement: Participate in local events, sponsor community activities, and collaborate
with local organizations to build strong community ties and enhance brand reputation.

Feedback and Improvement: Regularly gather customer feedback through surveys, suggestion boxes,
and online reviews. Use this feedback to make continuous improvements to the menu, service, and
overall customer experience.
Digital Marketing: Utilize social media platforms, a user-friendly website, and email newsletters to
engage with customers, share updates, and promote special offers. Online ordering and delivery
services can also be introduced to cater to customers seeking convenience.
By understanding and catering to the needs and preferences of these customer segments, Freshly Fast
Foods aims to build a loyal customer base, increase market penetration, and establish itself as a
beloved dining destination in Nambale town.

2.2 Market Share

Establishing and growing market share is a crucial aspect of Freshly Fast Foods' marketing strategy.
The goal is to capture a significant portion of the fast food market in Nambale town and become a
leading choice for local residents and visitors alike.
Competitive Landscape

In assessing the competitive landscape, Freshly Fast Foods will conduct a comprehensive analysis of
existing competitors. This includes identifying key players in the local fast food market, understanding
their strengths, weaknesses, and market positioning, and monitoring ongoing market trends. By
8
studying competitors' pricing strategies, menu offerings, customer service standards, and promotional
activities, Freshly Fast Foods can identify opportunities for differentiation and areas where it can gain
a competitive advantage.
Customer Preferences
Understanding the preferences, needs, and behaviors of target customers is paramount for gaining
market share. Freshly Fast Foods will conduct market research, surveys, and feedback analysis to
gather insights into customer preferences. By identifying gaps in the market and areas of unmet need,
the business can tailor its offerings and marketing strategies to better resonate with the target audience.
This customer-centric approach ensures that Freshly Fast Foods delivers value propositions that align
with the desires of its potential customer base.
Competitors and Their Data

Freshly Fast Foods will closely monitor competitors' performance and gather relevant data to inform its
market share strategies. This includes analyzing competitors' market share, revenue, customer
demographics, and customer satisfaction ratings. By benchmarking against competitors and
understanding their market positioning, Freshly Fast Foods can identify areas for improvement and
opportunities for growth. Additionally, by keeping a pulse on competitors' activities and initiatives,
Freshly Fast Foods can adapt its strategies to stay ahead in the competitive landscape.

Market Share Percentage

Freshly Fast Foods aims to capture a significant portion of the fast food market in Nambale town.
While precise market share percentages may vary based on market conditions and competitive
dynamics, the business aims to achieve a notable presence and establish itself as a top contender in the
local fast food industry. Through effective marketing strategies, high-quality offerings, and exceptional
customer service, Freshly Fast Foods aims to steadily increase its market share over time, solidifying
its position as a leading fast food establishment in Nambale town.

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 Competitors

14%

26%

10%
FastBite
QuickMunch
TastyTreats
Yummyburgers
Freshly Fast Foods

18%

32%

The pie chart visually represents the distribution of market capitalization among four key competitors
in the fast food industry in Nambale town, with Freshly Tasty Treats holding the largest share at 32%,
followed by Fast Bite at 26%, QuickMunch at 18%, Fast Foods at 14% and Yummy Burgers at 8%

2.3 Competition

i. Competitor Strengths: This section highlights the positive attributes or advantages of each
competitor in the fast food market. For example, Fast Bite is noted for its quick service and
affordable menu options, Quick Munch for its diverse menu offerings and convenient locations,
Tasty Treats for its flavorful dishes and generous portion sizes, and Yummy Burgers for its
gourmet offerings and trendy ambiance.
ii. Competitor Weaknesses: Here, the areas where each competitor may be lacking or facing
challenges are outlined. For instance, Fast Bite's weaknesses include limited menu options and
inconsistent quality, Quick Munch faces issues like limited seating and long wait times, Tasty
Treats has limited brand recognition, and Yummy Burgers has higher prices compared to its
competitors.

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 iii. Location: This column typically specifies the location of each competitor, although it appears
blank in this case. Location is often a critical factor in competition, especially in the food
industry where convenience plays a significant role in customer decision-making.
iv. Market Share: This column provides the estimated percentage of market share held by each
competitor. In this analysis, Freshly Fast Foods leads with the largest share at 30%, followed
closely by QuickMunch at 23%. TastyTreats and FastBite hold 19% and 20% respectively,
while YummyBurgers trails with 8%. Market share reflects each company's portion of the total
market capitalization, indicating their relative strength and position within the local fast food
market. This breakdown allows stakeholders to gauge the competitive landscape and make
informed decisions regarding investments, marketing strategies, and business operations in
Nambale's fast food industry.

Competitor Strengths Weaknesses Location Market

Share

Freshly Fast Located on Nambale Road,
Foods Freshly Fast Foods boasts
convenient accessibility. Its
strengths lie in consistency
and quality, offering a range
of popular fast food options
While they maintain a strong Nambale 14
market share at 14%, Freshly Road
Fast Foods may face challenges
in diversifying their menu to
cater to evolving consumer
preferences.

Fast Bite Quick service, affordable Limited menu options, Busia 26

menu options inconsistent quality Town

Quick Diverse menu offerings, Limited seating, long wait times Busia 18
Munch convenient locations Road

Tasty Treats Flavorful dishes, generous Limited brand recognition Nambale 32

portion sizes Junction

Yummy Gourmet offerings, trendy Higher prices compared to Nambale 8

Burgers ambiance competitors Road

2.4 Methods of Promotions and Advertisement

Freshly Fast Foods will employ various methods of promotion and advertisement to increase brand
awareness and attract customers:
i. Social Media Marketing: Utilize platforms such as Facebook, Instagram, and Twitter to
showcase menu items, engage with customers, and run targeted advertising campaigns.
ii. Local Events Sponsorship: Sponsor local events, sports tournaments, and community
gatherings to increase visibility and demonstrate commitment to the local community.

11
 iii. Digital Advertising: Invest in online advertising through platforms like Google Ads and social
media ads to reach a wider audience and drive traffic to the restaurant.
iv. In-Store Promotions: Offer in-store promotions such as buy-one-get-one-free deals, combo
meal discounts, and limited-time offers to incentivize purchases and encourage repeat visits.
v. Email Marketing: Send out regular newsletters with updates on menu additions, promotions,
and special events to keep customers informed and engaged.
vi. Collaborations and Partnerships: Collaborate with local businesses, influencers, and
organizations to cross-promote and reach new customer segments.

2.5 Pricing

Freshly Fast Foods will adopt a competitive pricing strategy that balances affordability with the
perceived value of its offerings. Prices will be set based on factors such as ingredient costs, competitor
pricing, and target customer preferences. Special discounts and promotions will be periodically offered
to attract customers and drive sales, while maintaining profitability.

Item Price (Ksh)

Classic Beef Burger 250

Crispy Chicken Sandwich 230

Veggie Wrap 200

Fresh Garden Salad 180

Chicken Nuggets (6 pcs) 150

French Fries (Regular) 100

Grilled Chicken Caesar Salad 280

BBQ Pulled Pork Sandwich 260

Fish Fillet Burger 270

Veggie Burger 220

Chicken Caesar Wrap 240

Onion Rings (Regular) 130

These prices reflect a diverse menu offering aimed at catering to different tastes and preferences while
maintaining affordability for customers.

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2.6 Sales Tactics

To maximize sales and enhance customer satisfaction, Freshly Fast Foods will implement the
following sales tactics:
i. Upselling and Cross-selling: Train staff to upsell complementary items or larger portions to
increase the average transaction value.
ii. Prompt Service: Emphasize quick and efficient service to minimize wait times and improve the
overall dining experience.
iii. Customization Options: Offer customization options for menu items to cater to individual
preferences and dietary restrictions.
iv. Suggestive Selling: Encourage staff to make personalized recommendations based on customer
preferences and promote special menu items or promotions.

2.7 Distribution

Freshly Fast Foods will focus on establishing a robust distribution network to ensure accessibility and
convenience for customers. Distribution channels will include:

i. Physical Locations: Open multiple outlets strategically located in high-traffic areas across
Nambale town to maximize reach and accessibility.
ii. Delivery Services: Offer in-house delivery services as well as partnerships with third-party
delivery platforms to cater to customers who prefer dining at home or in the office.
iii. Online Ordering: Develop a user-friendly online ordering platform integrated with the website
and mobile app for seamless ordering and delivery tracking.
iv. Catering Services: Provide catering services for events, parties, and corporate functions to
expand revenue streams and increase brand exposure. By employing these methods, Freshly
Fast Foods aims to effectively promote its offerings, maintain competitive pricing, implement
successful sales tactics, and ensure widespread distribution to capture market share and achieve
business growth in Nambale town.

13
CHAPTER 3

ORGANIZATION AND MANAGEMENT PLAN

3.1 The Business Sponsor

The driving force behind Freshly Fast Foods is Vivian Wabwire, who assumes the role of the business
sponsor. Vivian's responsibilities include providing financial support, strategic direction, and ensuring
the overall success of the venture. As the manager, she oversees all aspects of the business, ensuring
smooth operations and effective decision-making.

Personnel Qualifications Duties and Responsibilities Salary

Manager Diploma in Catering - Hire, train, and evaluate new employees - 50,000
and Management Ensure financial goals are met - Oversee staff
activities - Assist in decision-making

The staff Diploma in Catering - Produce products - Keep the business running 30,000
and Accommodation - Attend to customers each time they visit the
Management establishment

The driver Valid driving license - In charge of all deliveries - Responsible for 20,000
getting new stock to the establishment

Organization structure of Freshly Fast Foods

MANAGER

DELIVERY CLEANER/SERVICE CHEF

14
3.2 Evaluation of Performance

Effective performance evaluation is crucial for Freshly Fast Foods. We follow these steps:

i. Establish clear expectations from the outset.

ii. Encourage self-assessment by employees.
iii. Recognize and reward high performance.
iv. Provide frequent feedback.
v. Use a standardized performance appraisal form for consistency.

3.3 Recruitment, Training, and Promotion

3.3.1 Recruitment

Referrals, newspapers, online platforms. Importance: Introduce fresh ideas, boost morale, and enhance
skill set.

3.3.2 Training

Instill new skills, change attitudes. Methods: Weekly sessions, as needed based on performance.

3.3.3 Promotion

Promotion in Freshly Fast Foods is based on merit and performance. Factors that will determine
promotion include:
i. Performance Excellence: Employees who consistently demonstrate exceptional performance,
go above and beyond their job requirements, and contribute significantly to the success of the
business will be considered for promotion.
ii. Leadership Abilities: Individuals who exhibit strong leadership skills, take initiative, and
demonstrate the ability to lead and motivate others will be prime candidates for promotion to
supervisory or managerial roles.
iii. Adaptability and Learning: Employees, who show a willingness to learn, adapt to changing
circumstances, and take on new responsibilities will be recognized and considered for
advancement within the organization.
iv. Customer Satisfaction: Front-line employees who consistently deliver excellent customer
service, maintain positive relationships with customers, and contribute to high levels of
customer satisfaction will be rewarded with promotional opportunities.
v. Teamwork and Collaboration: Individuals who work effectively as part of a team, collaborate
with colleagues, and contribute to a positive work environment will be valued and considered
for promotion.

Challenges in the Fast Food Business and How to Overcome Them

i. High Employee Turnover: The fast food industry often experiences high turnover rates due to
factors such as low wages and demanding work conditions. To overcome this challenge,

15
 Freshly Fast Foods will focus on creating a positive work environment, offering competitive
wages and benefits, and providing opportunities for career advancement and skill development.
ii. Intense Competition: The fast food market is highly competitive, with numerous established
players vying for market share. To stand out, Freshly Fast Foods will differentiate itself by
offering unique menu items, exceptional customer service, and engaging marketing campaigns
that highlight its brand values and offerings.
iii. Health and Safety Concerns: Ensuring food safety and maintaining high standards of
cleanliness and hygiene are paramount in the fast food industry. Freshly Fast Foods will
implement rigorous food safety protocols, conduct regular inspections, and invest in employee
training to mitigate health and safety risks and build trust with customers.
iv. Supply Chain Disruptions: Dependence on suppliers for ingredients and raw materials leaves
fast food businesses vulnerable to supply chain disruptions. To address this challenge, Freshly
Fast Foods will diversify its supplier base, maintain adequate inventory levels, and establish
contingency plans to mitigate the impact of supply chain disruptions.
v. Changing Consumer Preferences: Consumer preferences in the fast food industry are constantly
evolving, with growing demand for healthier options, sustainability, and convenience. To adapt
to changing consumer preferences, Freshly Fast Foods will regularly review its menu offerings,
introduce new and innovative products, and leverage customer feedback to tailor its offerings to
meet customer needs and preferences.

By addressing these challenges proactively and implementing strategies to overcome them, Freshly
Fast Foods aims to establish itself as a reputable and successful player in the fast food industry,
providing value to customers and achieving sustainable growth.

3.4 Remuneration and Incentives

3.4.1 Remuneration

Remuneration refers to the total amount employees receive from performing a job. It will provide basic
attraction to the employees to perform job efficiency and effectively. Years of experience and
education level are one of the factors that will guide remuneration in the business. Providing
entertainment, supply and demand and the cost of not offering competitive pay can also be considered.

3.4.2 Incentives

Incentive is a reward or something that motivates or drives an employee to do something or behave in

a certain way. Freshly Foods will provide incentives to employees who will be working overtime
hours. Sponsorship will be offered to those employees who are unable to pay their training fees with
some capital for their fees.
Challenges of incentives

i. They can extinguish intrinsic motivation.

ii. They can crush creativity.
iii. They can become addictive.
iv. They can foster short-term thinking.
16
 v. They can encourage cheating, shortcuts and unethical behavior.
Solutions to the challenges

i. Focus on employees commitment to program goals.

ii. Use incremental incentives for effective programs.
iii. Make incentives visible.
iv. Consider desired outcome of your incentive program.

3.5 Legal Requirements and Licenses

A license is a permission in the form of a paper offered to a business to manufacture products. The
contents of the business license include:

 Name
 Serial number
 Issue date
 Business number
 Name of owner
 Tax pin number
 Type of business location

The business license for Freshly Fast Foods will be paid once a month at a cost of Ksh 5,500 and
will be renewed yearly.

3.5.1 Permits

A permit is a legal document that offers proof of compliance with certain city laws.

3.5.2 By-Laws

By-laws are legal documents setting rules and regulations governing the day-to-day operations of a
business. They help to ensure a business runs smoothly and efficiently.
Types of Food Permits and Licenses in Busia County

Health Permit

 Ensures compliance with health and sanitation standards.

 Required for all food establishments to operate.
Food Handlers' Certificate

 Required for all employees handling food.

 Ensures that all food handlers have undergone necessary health checks.

Food Hygiene License

17
  Ensures that the premises meet the required hygiene standards.
 Necessary for maintaining cleanliness and safety in food preparation areas.
Fire Safety Certificate

 Ensures that the establishment meets fire safety regulations.

 Necessary for the safety of employees and customers.

Business Operating License

 General license required to operate a business in Busia County.

 Covers various aspects of business operations and compliance with local laws.

Liquor License (if applicable)

 Required if the establishment plans to sell alcoholic beverages.

 Ensures compliance with regulations governing the sale of alcohol.
Limitations towards the Business

 Monthly payment is costly.

 Risks of signing a licensing agreement.
 Business secrets may be exposed to the foreign market.

Challenges and Solutions

 Being unsure of where and how to start their research to figure out what business licenses
are needed:
- Solution: This can be dealt with by researching online and noting any
requirements.
 Business complexity; one can be unsure of what kind of business license to have:
- Solution: It can be managed by determining what industry a business falls
under.
 Striking of a pandemic that affects every business, making paying for the license a
challenge:
 Solution: This should have been calculated earlier in advance.

3.6 Support Services and Professional Advisors

Business Management, This team works together to ensure customer satisfaction and smooth operation
of the business.

Consultancy Services, The customer care department provides necessary information to both new and
existing customers about the business.
Electricity, Electricity is essential for the smooth running of machines and lighting within the business
premises.
Banking, the business must have a banking system to help in the proper storage of money and payment
of staff.
18
Water, the business will acquire water from the Busia Water supply to help in proper working and
maintenance of cleanliness of the premises.

Transport, the business will ensure it has a proper transport system to help during the delivery of orders
to its customers.

19
CHAPTER 4

OPERATIONAL PLAN

4.1 Production Facility and Capacity

The production facility of Freshly Fast Foods will be strategically located in a centralized area of
Nambale town to ensure easy access to both suppliers and customers. The facility will be designed to
optimize efficiency, cleanliness, and adherence to food safety standards.
Facility Design
The production facility will consist of:

i. Kitchen Area: Equipped with state-of-the-art cooking equipment, prep stations, and storage
facilities to support the preparation of a wide range of menu items. The kitchen layout will be
designed to facilitate smooth workflow and minimize cross-contamination risks.
ii. Storage Area: Dedicated space for storing ingredients, raw materials, and finished products.
The storage area will be organized and monitored to ensure proper inventory management and
rotation of stock.
iii. Cleaning and Sanitation Stations: Designated areas for cleaning and sanitizing equipment,
utensils, and work surfaces to maintain high standards of hygiene and prevent foodborne
illnesses.
iv. Staff Facilities: Comfortable break rooms and restroom facilities for employees to rest and
recharge during breaks, fostering a positive work environment.

Capacity Planning
The production capacity of Freshly Fast Foods will be determined based on market demand, sales
projections, and operational efficiency. Key factors considered in capacity planning include:

i. Market Demand: Analysis of customer preferences, demographic trends, and competitor

offerings will inform production capacity to ensure adequate supply to meet demand.
ii. Sales Projections: Historical sales data and market research will be used to forecast future
demand and determine production capacity requirements.
iii. Operational Efficiency: Continuous improvement initiatives, staff training programs, and
investment in technology will enhance operational efficiency and increase production capacity.

Flexibility and Scalability

The production facility will be designed with flexibility and scalability in mind to accommodate
fluctuations in demand and future growth opportunities. Modular equipment layouts, adjustable storage
solutions, and adaptable workflows will enable the facility to scale production up or down as needed.
Quality Control Measures
Stringent quality control measures will be implemented throughout the production process to ensure
consistency, safety, and customer satisfaction. Regular inspections, product testing, and adherence to

20
standardized recipes and procedures will uphold quality standards and mitigate risks of product defects
or contamination.

Equipment Capacity Where From Cost (Ksh)

Fridge 500 liters Busia Supplier 50,000

Oven 60 liters Busia Supplier 30,000

Microwaves 25 liters each Busia Supplier 15,000

Serviceware Local Distributor 10,000

Portion Scale 10 kg Online Retailer 5,000

Juicers 2 liters each Busia Supplier 8,000

Strainers Local Distributor 1,000

Cutting Boards Local Distributor 2,000

Knives Local Distributor 500

Mixers 5 liters Busia Supplier 12,000

Coolers 50 liters Busia Supplier 20,000

Gloves Local Distributor 500

Blenders 2 liters each Busia Supplier 6,000

Peelers Local Distributor 300

Straws Local Distributor 200

Storage Containers 10 liters each Local Distributor 1,500

Plates Local Distributor 2,000

Platters Local Distributor 3,000

First Aid Kit Standard Busia Supplier 4,000

Grills 2 burners Busia Supplier 35,000

Deep Fryers 5 liters Busia Supplier 15,000

Food Processors 2 liters Busia Supplier 10,000

Toasters 4 slots each Busia Supplier 3,000

Heat Lamps Online Retailer 8,000

Dishwashers 12 place Busia Supplier 40,000

settings

21
Hand Sanitizer Dispensers Local Distributor 1,500

Aprons and Chef Hats Local Distributor 2,000

Disposable Food Containers Local Distributor 3,000

Trash Bins and Liners 50 liters Local Distributor 2,500

Cash Register or POS System Online Retailer 25,000

Measuring Cups and Spoons Local Distributor 1,000

Thermometers Local Distributor 1,500

Spoons, Forks, and Utensils Local Distributor 1,500

Shelving Units Local Distributor 10,000

Ice Machine 20 kg/day Busia Supplier 50,000

Pans and Pots Local Distributor 5,000

Recipe Books or Digital Recipe Management Online Retailer 5,000

System

Cleaning Supplies and Disinfectants Local Distributor 5,000

Backup Generator (for power outages) 5 kVA Busia Supplier 70,000

Menu Boards Local Distributor 3,000

Factors to consider in selection of Equipment’s

i. Menu and product range
ii. Available space
iii. Ease of use
iv. Noise level
v. Future plans
vi. Customer experience
vii. Health and safety regulations
viii. Quality and durability
ix. Maintenance cost
x. The budget.

Mode of Equipment Delivery

i. Direct pickups; picking up equipment’s directly from the supplier or manufacturer.
ii. White Glove Delivery; The supplier delivers the equipment’s unpack and then set it up.
Convenient for complex or delicate equipment’s

22
4.2 Production Strategy

Freshly Fast Foods aims to provide high-quality, fresh, and fast food to its customers in Busia,
Nambale Road. Our production strategy focuses on efficiency, quality control, and customer
satisfaction. The following outlines our approach to achieving these goals:

4.2.1 Ingredient Sourcing

Local Suppliers: We will source the majority of our ingredients from local farmers and suppliers to
ensure freshness and support the local economy.
Quality Checks: Regular quality checks will be performed on all ingredients to ensure they meet our
standards.
Sustainable Practices: Preference will be given to suppliers who follow sustainable farming practices.

4.2.2 Food Preparation

Standardized Recipes: All food items will be prepared according to standardized recipes to maintain
consistency in taste and quality.
Trained Staff: All kitchen staff will undergo rigorous training to ensure they are proficient in food
preparation and safety procedures.
Hygiene and Safety: Strict hygiene and safety protocols will be followed in the kitchen to ensure a
clean and safe working environment.

4.2.3 Equipment Utilization

Efficient Use of Equipment: All equipment listed in the table will be used efficiently to maximize
productivity and minimize waste.
Regular Maintenance: Regular maintenance schedules will be adhered to, ensuring all equipment
functions optimally and reduces downtime.

Energy Efficiency: Equipment will be chosen for its energy efficiency to reduce operational costs and
environmental impact.

4.2.4 Production Process

Batch Cooking: Implement batch cooking for high-demand items to ensure quick service and reduce
wait times for customers.
Prep Stations: Designated prep stations for different food categories (e.g., vegetables, meats, desserts)
to streamline the cooking process.
Inventory Management: Implement a robust inventory management system to keep track of ingredient
usage and minimize waste.

23
4.2.5 Quality Control

Regular Inspections: Conduct regular inspections of the kitchen and storage areas to ensure compliance
with health and safety regulations.
Customer Feedback: Actively seek and analyze customer feedback to identify areas for improvement
and ensure high satisfaction levels.

Continuous Improvement: Regularly review and update production processes to incorporate new
techniques and technologies that can improve efficiency and quality.

4.2.6 Service and Delivery

Order Management: Utilize a reliable order management system to handle customer orders efficiently
and accurately.
Delivery System: Establish a robust delivery system to ensure timely delivery of orders to customers,
maintaining the freshness and quality of the food.
Customer Interaction: Train staff in customer service skills to enhance the overall dining experience
for customers, whether dining in or ordering delivery.

4.3 Production Process

The production process at Freshly Fast Foods is designed to ensure efficiency, consistency, and high
quality in all our food offerings. Below is a detailed breakdown of our production process from
ingredient sourcing to food delivery:

4.3.1 Ingredient Sourcing and Storage

Our signature dish is Spicy Grilled Chicken Wrap combines local flavors with a modern twist,
providing a delicious and unique offering for our customers. Below is the detailed production process
for this recipe.

Ingredients Sourcing and Storage

i. Chicken Breasts: Freshly sourced from local poultry farms.
ii. Spices: Locally grown chilies, garlic, ginger, and coriander.
iii. Vegetables: Fresh lettuce, tomatoes, onions, and avocados from local farmers.
iv. Wraps: Freshly made or sourced from a local bakery.
v. Dressing: Homemade spicy yogurt sauce with locally sourced yogurt.

Ingredient Procurement
Local Suppliers: Freshly Fast Foods sources its ingredients from trusted local suppliers and farmers.
Quality Control: Each batch of ingredients undergoes thorough inspection upon delivery to ensure they
meet our quality standards.
Storage
24
Refrigeration: Perishable items such as meats, dairy, and certain vegetables are stored in high-capacity
fridges and coolers to maintain freshness.

Dry Storage: Non-perishable items are stored in labeled, airtight containers in a clean, dry storage area
to prevent contamination and spoilage.
Inventory Management: A first-in, first-out (FIFO) system is employed to ensure older stock is used
before newer deliveries.

4.3.2 Food Preparation

Pre-Preparation

Washing and Cleaning: All fruits, vegetables, and other raw ingredients are thoroughly washed and
cleaned upon receipt.
Chopping and Slicing: Ingredients are chopped, sliced, or peeled as needed using knives, peelers, and
cutting boards.
Marinating: Meats and certain vegetables are marinated as per standardized recipes to ensure consistent
flavor.

Cooking
Batch Cooking: High-demand items are cooked in batches using ovens, grills, and deep fryers to
maintain efficiency and ensure quick service.

Individual Cooking: Items that require special attention are cooked individually to order using
stovetops, ovens, and microwaves.

Monitoring: Cooking temperatures and times are closely monitored using thermometers and timers to
ensure food safety and quality.
Assembly and Plating
Service Stations: Designated service stations for assembling meals ensure that each order is completed
quickly and accurately.
Portion Control: Portion scales are used to ensure consistency in serving sizes.

Presentation: Meals are plated attractively on plates and platters, ready for service or packaging.

4.3.3 Quality Control

Ongoing Inspections

Hygiene Checks: Regular hygiene checks are conducted to ensure all areas of the kitchen meet health
and safety standards.
Taste Tests: Periodic taste tests are performed to ensure all dishes meet our flavor and quality
expectations.

25
Temperature Monitoring: Food temperatures are regularly checked during preparation and before
serving to ensure safety.

Customer Feedback
Surveys and Reviews: Customer feedback is actively collected through surveys and online reviews to
identify areas for improvement.

Adjustments: Feedback is analyzed and incorporated into the production process to enhance overall
quality and customer satisfaction.
4.3.4 Packaging and Delivery

Packaging
Eco-friendly Materials: Meals are packaged in disposable food containers that are eco-friendly and
maintain the integrity of the food.
Labeling: Each package is clearly labeled with the order details, contents, and any special instructions.
Delivery
Efficient Transport: A reliable transport system ensures timely delivery of orders to customers,
maintaining the freshness and quality of the food.
Delivery Tracking: Orders are tracked from the kitchen to the customer to ensure accuracy and prompt
delivery.

Customer Service: Delivery staffs are trained in customer service to provide a positive experience upon
receipt of the order.

4.4 Regulations Affecting the Operations

The operations of Freshly Fast Foods are subject to various regulations to ensure the safety, health, and
welfare of our customers, employees, and the community. Compliance with these regulations is crucial
for legal operation and maintaining a good reputation. Below are the key regulations affecting our
operations

4.4.1 Health and Safety Regulations

Health Permits

 Requirement: Freshly Fast Foods must obtain a health permit from the Busia County Health
Department.
 Compliance: Regular health inspections will be conducted to ensure the premises meet the
required health and sanitation standards.
Food Handlers' Certificates

 Requirement: All employees handling food must possess a valid food handler's certificate.

26
  Compliance: Employees will undergo necessary health checks and training to obtain their
certificates.
Food Hygiene License

 Requirement: The business must have a food hygiene license indicating that it meets hygiene
standards.
 Compliance: Regular cleaning schedules and hygiene protocols will be strictly followed.

4.4.2 Fire Safety Regulations

Fire Safety Certificate

 Requirement: A fire safety certificate is required to confirm the establishment complies with
fire safety regulations.
 Compliance: Fire extinguishers, smoke detectors, and emergency exits will be installed and
regularly maintained. Staff will be trained in fire safety procedures.

4.4.3 Business Operating Regulations

Business Operating License

 Requirement: Freshly Fast Foods must obtain a business operating license from Busia County.
 Compliance: The business will adhere to the application and renewal processes annually,
ensuring all required documentation is up to date.
Zoning Laws

 Requirement: The business location must comply with local zoning laws.
 Compliance: Ensure the premises are in a zone that permits food service operations and follow
any specific local guidelines.

4.4.4 Employment Regulations

Labor Laws

 Requirement: Compliance with national and local labor laws concerning wages, working hours,
and employee benefits.
 Compliance: Ensure fair treatment, appropriate compensation, and safe working conditions for
all employees.

Workplace Safety

 Requirement: Adherence to workplace safety regulations.

 Compliance: Implement safety protocols, provide necessary protective equipment, and conduct
regular safety training sessions for employees.

27
4.4.5 Environmental Regulations

Waste Management

 Requirement: Proper disposal of food waste and other refuse in accordance with local
environmental regulations.
 Compliance: Implement a waste management system, including recycling and proper disposal
methods.
Water Usage

 Requirement: Efficient use and disposal of water, complying with local water usage
regulations.
 Compliance: Regular maintenance of plumbing systems to prevent leaks and water wastage,
and adherence to any water usage restrictions.

4.4.6 Consumer Protection Regulations

Food Labeling and Advertising

 Requirement: Accurate labeling of food products and honest advertising practices.

 Compliance: Ensure all marketing materials and product labels provide truthful information
about the food items.

Customer Data Protection

 Requirement: Safeguarding customer information, especially for delivery and payment

processes.
 Compliance: Implement robust data protection measures and comply with local data privacy
laws.

4.4.7 Licensing for Special Products

Liquor License

 Requirement: If selling alcoholic beverages, a liquor license is mandatory.

 Compliance: Adhere to the application process and ensure responsible sale and consumption
practices.

28
CHAPTER 5
THE FINANCIAL PLAN
5.1 Pre-Operational Costs

Item Amount (Ksh)

Registration fees 10,000
Trading license 2,000

Equipment and installation 150,000

Water deposit 3,000

Advertising and information 5,000

Telephone 3,000
Drainage system 2,000

Fixtures and fittings 15,000

Renovation and remodeling 10,000

Miscellaneous 5,000

Total Pre-Operational Costs 209,000

29
5.2 Working Capital

Item Year 1 (Ksh) Year 2 (Ksh) Year 3 (Ksh)

Current Assets
Cash in hand 30,000 65,000 70,000
Cash in bank 70,000 90,000 100,000
Debtors 10,000 19,000 11,000
Stock 40,000 55,000 65,000

Total Current Assets 150,000 229,000 246,000

Current Liabilities
Bank overdrafts 11,000 19,000 29,000
Creditors 16,000 29,000 20,000

Total Current Liabilities 27,000 48,000 49,000

Working Capital 123,000 181,000 197,000

1
5.3 Cash Flow Statements
Cash Flow Statement for Year 1:

CASH INFLOWS Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals

Balance brought 65,500 30,500 33,500 17,000 30,200 56,800 69,200 47,100 71,000 85,500 98,500 604,800
forward

Capital 123,000 123,000

Debtors 4,000 5,000 2,500 1,000 3,000 2,500 2,000 1,000 3,000 2,000 1,000 2,000 29,000
Cash sales 120,000 100,000 130,000 105,000 122,000 133,500 135,000 132,400 150,000 148,000 140,000 145,000 1,564,500

TOTAL CASH 247,000 170,000 163,000 139,500 142,000 166,200 193,800 202,400 200,000 221,000 226,500 245,500 2,317,400
INFLOWS

CASH Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
OUTFLOWS

Purchases 60,000 50,000 40,000 30,000 20,000 15,000 30,000 16,000 16,000 20,000 30,000 20,000 347,000

Rent 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 180,000
Salaries 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 840,000
Water bills 2,000 1,000 2,000 2,200 2,100 2,400 2,000 2,400 2,200 2,000 3,000 1,000 32,000

Electricity 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Telephone 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000

Transport 1,500 1,000 900 700 800 1,000 1,100 900 800 2,000 3,000 1,000 15,700
Creditor 3,000 7,000 20,000 18,000 15,000 63,000
Advertisement 4,000 4,000

Taxes 2,500 2,500 2,500 2,500 2,500 2,500 10,000

2
Stationary 1,000 1,000 2,000

Repairs 1,500 1,000 1,000 3,000 4,000 3,000 13,000

License 2,500 2,500
TOTAL CASH 161,500 140,000 129,500 122,500 111,800 109,400 124,600 155,300 129,000 114,500 128,000 127,100 1,553,200
OUTFLOWS
NET CASH Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals

65,500 30,500 33,500 17,000 30,200 56,800 69,200 47,100 71,000 85,500 98,500 118,400 723,200
ACCUMULATED Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
CASH

30,500 64,000 81,000 111,200 168,000 237,200 284,300 355,300 440,800 539,300 657,700 2,969,300

3
 Cash Flow Statement for Year 2

CASH INFLOWS Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Totals

Balance brought 118,400 326,900 318,400 262,400 225,500 240,400 267,000 300,500 325,500 359,600 387,500 428,100 3,630,100
forward

Capital 181,000 181,000

Debtors 2,000 1,000 2,100 1,500 1,400 1,000 1,600 1,200 2,000 2,500 2,000 2,600 19,900
Cash sales 138,000 148,000 132,000 131,000 130,000 137,000 135,000 141,000 139,000 146,200 150,000 143,000 1,670,000

TOTAL CASH 439,400 475,900 452,500 394,900 356,900 378,400 403,600 442,700 466,500 508,300 539,500 578,700 5,501,300
INFLOWS

CASH OUTFLOWS Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Totals

Purchases 80,000 50,000 60,000 55,000 25,000 10,000 8,000 10,000 15,000 9,000 20,000 15,000 357,000
Rent 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 180,000
Salaries 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 840,000
Water bills 2,500 2,000 3,000 2,200 2,000 2,200 2,600 2,000 2,200 2,000 2,000 2,000 24,700

Electricity 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Telephone 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000
Transport 2,000 2,500 2,100 2,200 1,500 1,200 2,000 2,200 2,700 1,800 1,400 2,000 25,600
Creditor 15,000 20,000 10,000 15,000 20,000 15,000 95,000
Advertisement 4,000 4,000
Taxes 2,500 2,500
Stationary 1,000 1,000
Repairs 1,500 1,000 1,000 3,000 4,000 3,000 13,000
License 2,500 2,500
TOTAL CASH 182,500 157,500 168,200 143,400 128,000 124,400 124,200 117,200 106,900 120,800 111,400 122,000 1,571,800
OUTFLOWS
NET CASH Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Accumulated
Cash
Previous 326,900 318,400 262,400 225,500 240,400 267,000 300,500
Accumulated Cash
4
 Cash Flow Statement for Year 3

CASH INFLOWS Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Totals

Balance brought 451,700 596,200 575,950 577,650 606,150 640,750 678,950 694,350 752,350 783,150 791,950 811,050 8,018,200
forward

Capital 197,000 197,000

Debtors 1,000 2,250 2,500 2,000 2,600 2,700 2,000 2,600 2,000 2,200 2,600 2,000 26,450
Cash sales 160,000 150,000 168,000 170,000 169,000 171,000 181,000 180,000 182,000 170,000 150,000 149,000 2,000,000

TOTAL CASH 809,700 748,450 746,450 749,650 777,750 814,450 861,950 876,950 936,350 955,350 944,550 962,050 10,210,650
INFLOWS

CASH OUTFLOWS Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Totals

Purchases 90,000 80,000 60,000 30,000 20,000 40,000 60,000 30,000 50,000 70,000 40,000 30,000 6,000,000
Rent 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 180,000
Salaries 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 840,000
Water bills 3,000 2,500 3,200 2,500 2,000 3,000 2,200 3,600 4,000 2,400 2,500 2,000 32,900

Electricity 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Telephone 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000
Transport 2,500 2,000 2,600 3,000 2,000 3,500 2,400 3,000 2,200

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 Cash Flow Statements for Year 1, Year 2, and Year 3

Category Year 1 (Ksh) Year 2 (Ksh) Year 3 (Ksh)

Cash Inflows
Balance brought forward 604,800 3,630,100 8,018,200
Capital 123,000 181,000 197,000
Debtors 29,000 19,900 26,450
Cash sales 1,564,500 1,670,000 2,000,000

Total Cash Inflows 2,317,400 5,501,300 10,210,650

Cash Outflows
Purchases 347,000 357,000 6,000,000
Rent 180,000 180,000 180,000
Salaries 840,000 840,000 840,000
Water bills 32,000 24,700 32,900
Electricity 12,000 12,000 12,000
Telephone 24,000 24,000 24,000
Transport 15,700 25,600 31,200
Creditor 63,000 95,000 106,000
Advertisement 4,000 4,000 4,000
Taxes 10,000 2,500 2,500
Stationary 2,000 2,000 2,000
Repairs 13,000 4,500 5,000
License 2,500 2,500 2,500
Total Cash Outflows 1,553,200 1,571,800 1,836,100
Net Cash 764,200 3,929,500 4,210,650
5.6 Break Even Analysis

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Break Even Analysis
Category Amount (Ksh)

Total sales for Year 1 1,564,500

Variable Cost 102,700

Fixed Costs 296,000

Contribution Margin 1,461,800

Contribution Margin Percentage 93%

Break Even Level of Sales 20%

Total Cost 398,700

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5.4 Pro-Forma Income Statement

Pro-Forma Income Statement:

Year 1 Year 2 Year 3

Item
(Ksh) (Ksh) (Ksh)
Sales 1,564,500 1,670,000 2,000,000
Less cost of goods sold 320,000 400,000 450,600
Gross Profit 1,244,500 1,270,000 1,549,400
Labour Cost 840,000 840,000 840,000
Net Margin Profit 404,500 430,000 709,400
Overheads
Rent 180,000 180,000 180,000
Water bills 32,000 24,700 32,900
Electricity bills 12,000 12,000 12,000
License 2,500 2,500 2,500
Transport 15,700 25,600 31,200
Advertising 4,000 4,000 4,000
Stationary 2,000 2,000 2,000
Repairs 13,000 4,500 5,000
Telephone 24,000 24,000 24,000
Taxes 10,000 2,500 2,500
Total Overheads 295,200 281,800 293,600
Net Profit 109,300 148,200 415,800
Tax (5%) 5,465 7,410 20,790
Net Profit After Tax 103,835 140,790 395,010

1
5.5 Pro-Forma Balance Sheet

Pro-Forma Balance Sheet

Year 1 Year 2 Year 3

Assets
(Ksh) (Ksh) (Ksh)
Current Assets
Cash in hand 30,000 65,000 70,000
Cash in bank 70,000 90,000 100,000
Debtors 10,000 19,000 11,000
Stock 40,000 55,000 65,000
Total Current Assets 150,000 229,000 246,000
Non-Current Assets
Machine and Equipments 27,500 42,895 40,000
Furniture and fittings 25,635 30,000 115,070
Vehicle 35,000 40,000 31,700
Other fixed assets 15,700 27,895 121,470
Total Non-Current Assets 88,135 140,790 395,010
Total Assets 238,135 369,790 641,010
Liabilities
Creditors 16,000 29,000 20,000
Bank overdrafts 11,000 19,000 29,000
Total Liabilities 27,000 48,000 49,000
Net Assets 211,135 321,790 592,010

5.6 Break Even Analysis

Break Even Analysis

Category Amount (Ksh)

Total sales for Year 1 1,564,500

Variable Cost 102,700
Fixed Costs 296,000
Contribution Margin 1,461,800
Contribution Margin Percentage 93%
Break Even Level of Sales 20%
Total Cost 398,700

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5.7 PROFITABILITY RATIOS

Return on Sale = Net Profit after tax × 100 / Sales

For Year 1:

 Net Profit after tax = 103,835 Ksh

 Sales = 1,564,500 Ksh

Return on Sale for Year 1 = (103,835 / 1,564,500) × 100 ≈ 6.64%

For Year 2:

 Net Profit after tax = 140,790 Ksh

 Sales = 1,670,000 Ksh

Return on Sale for Year 2 = (140,790 / 1,670,000) × 100 ≈ 8.42%

For Year 3:

 Net Profit after tax = 395,010 Ksh

 Sales = 2,000,000 Ksh

Return on Sale for Year 3 = (395,010 / 2,000,000) × 100 = 19.75%

So, the Return on Sale ratios for each year are approximately:

 Year 1: 6.64%
 Year 2: 8.42%
 Year 3: 19.75%

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5.8 Desired Financing

5.8 Desired Financing:

Particulars Amount (Ksh)

Pre-operational cost 209,000

Working capital 123,000

Fixed assets 88,135

Others (advertising) 4,000

Total Startup Finance 424,135

5.9 Proposed Capitalization

Proposed Capitalization

Amount
Source
(Ksh)
Owners contribution 123,000
Debtors 10,000
Bank loan 30,000
Family contribution 100,000
Friends 50,000
Total 313,000

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6.0 Potential Risks

Potential Risks for Freshly Fast Foods

Supply Chain Disruptions

Risk: Dependence on fresh, locally sourced ingredients could face seasonal or logistical challenges.

Mitigation: Establish relationships with multiple suppliers and have backup sourcing plans.

Intense Competition

Risk: Competing against established fast food chains and new entrants with similar healthy options.
Mitigation: Emphasize unique selling points like ingredient quality, customization, and exceptional service.

Brand Recognition

Risk: Building a new brand in a crowded market may slow initial customer acquisition.
Mitigation: Invest in targeted marketing, influencer partnerships, and community engagement to build brand
awareness quickly.

Operational Efficiency

Risk: Balancing fresh meal preparation with the need for speed could cause service delays.
Mitigation: Streamline kitchen workflows, use technology for order management, and ensure staff training
for efficiency.

Economic Volatility

Risk: Economic downturns could reduce consumer spending on dining out, impacting sales.
Mitigation: Offer a range of price points and promotional discounts to attract budget-conscious customers.

Regulatory Compliance

Risk: Stringent health and safety regulations could impact operations.

Mitigation: Stay updated on regulations and maintain strict compliance to avoid fines or business
interruptions.