Degree

Master of Business Administration Executive

Faculty / School

Faculty of Business Administration (FBA)

Year of Award

2016

Project Type

MBA Executive Research Project

Access Type

Restricted Access

Executive Summary

Our aim for this project was to understand the food market of Lahore and subsequently to decide whether we should launch our food business in this city or not. We had run a similar business in Karachi for a period of five months and had gotten a lot of positive feedback. The name of the business is My Wife & I since both my wife and I started it together and have been working on it since early 2015. We started offering home-cooked HalwaPuris and then expanded the menu to include Chicken Lasagna, Biryani, Nihari, Chinese, and Burgers as far as the savory palate was concerned. For desserts, we offered desi desserts such as firni, and western dishes such as chocolate mousse, pineapple upside down cake, banana muffins, and cheesecake.We also did catering for our friends and family and made all the dishes requested by them, regardless of whether they were on our menu or not. Food business is booming in Pakistan. All the food companies are showing unprecedented growth year after year. At the same time, cases of food adulteration are also on the rise. While people are demanding more food options, they are generally dissatisfied with the quality of food that they are getting. In a survey conducted by The Express Tribune of around 300 plus individuals, almost 70% complained of falling sick at least once when they have eaten something from the outside. In 2015, a thirteen year old girl lost her life after having food from Dilpasand. Cases of food poisoning have become fairly common. PFA closed down more than 500 restaurants in 2015 on the basis of them serving sub-standard food.

Based on the primary and secondary research, we have made an extensive business plan. We will longer just be asking for order over the weekends, as was the case in Karachi. In Karachi, both my wife and I were working from nine to five during weekdays. That is why we were unable to take orders on a daily basis, which constricted our revenue stream to a great degree. This time round, my wife will be leaving her job and will be focusing all her time on the running of our business. While I will continue to work, I will be handling number of tasks, which are not time-sensitive. I will be taking care of inventory management, and procurement. My wife, on the other hand, will be taking care of all the cooking and order-taking.

We have devised two menus. One menu will be the same one as that of our Karachi business and customers will be expected to give their orders 12 hours prior to the delivery time since most of these dishes require extensive preparation before-hand. We will also have a regular menu which will have day to day items that are delicious to taste but quick to prepare. We will also be charging a lower margin on this menu in order to make it more affordable to the students and make our business a viable option for anyone who wants to become a regular customer of The orders from this menu can be placed till three hours prior to the delivery time. ours. 8 The start-up cost includes the cost of buying a gas cylinder as well as the marketing cost. The total is quite minimalistic coming to a mereRs. 19,000. Past the first year, we are assuming that the word of mouth would have helped us get enough traction that we will no longer have to conduct extensive marketing exercises. Operational costs include salaries and utilities and comes out to be around Rs. 30,000/month. Total cost of first year will be Rs. 379,000 and with an average contribution margin of 88%, our break-even sales point is Rs. 430,000/Yl.

Pages

108

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