Home Education Mini Business Plan Example For Fast Food Restaurant

Mini Business Plan Example For Fast Food Restaurant

by admin
Published: Last Updated on 5.3K views


Minnesota Fast Food Restaurant (MFFR) is a small, fast food outlet at Minnesota and has been in operations for the last five years. The small unit is intending to transform itself into a proper fast-food restaurant using innovative and resourceful strategies. Currently the point is offering the public of Cottage Grave few local fast food goods. This business plan has been made after doing comprehensive research and evaluating a variety of issues concerning the fast-food restaurant industry in Minnesota in the city of Cottage Grove. The primary purpose and scope of this plan are to provide particular information about the industry and to highlight the critical areas for successful launching of a new fast food restaurant in Minnesota. The data discussed in this business plan is based on some facts and has been collected through several sources. A cautious attempt was made to present the data in real-time. However, this information may change at any time due to the occurrence of any changes in the target market, and thus the actual outcomes may differ from the projected results.

Mini Business Plan Example For Fast Food Restaurant

Mission Statement

Generation of revenue and profit is the primary purpose of any organization, and the same will be for Minnesota Fast Food Restaurant. Since it is a service provider unit, therefore, customer service is the base of its existence. We aim to become the first choice of the customers and make them stay with us repeatedly. We believe in PEARL as our fundamental interest i.e;

  • Passion for excellence in doing everything
  • Execute with positive energy and urgency
  • Accountable for growth in customer satisfaction and profitability
  • Recognize the achievement of others and have fun doing it
  • Listen and more importantly respond to the voice of the customer

Market Analysis

MFFR must conduct its business by maintaining a target audience of a very general nature, as Cottage Grove is a small area with only a community 34,589 in 2010 census According to the poll conducted in 2000, there were 9,932 households and 8,462 families living in the Cottage Grove. Our restaurant will target the youth population between the ages of 18 and 44 as its target market as it is 41.8 per cent of the total population. People under 18 are almost 32.7% of the total population (Census Redistricting Data, 2010). The per capita income for the town in Cottage Grove was $28,348 in 2009

The market behavior of the US fast food industry is exciting and it has been observed that generally, three types of orders are placed in a fast-food restaurant. These orders are placed concerning the nature of group and family. The statistic listed as Appendix-I reveals that lunch and dinner products have a greater market share as it is made up of 29 per cent of the fast food industry in the US. Snack items and related beverages contribute 22% and 21% respectively, whereas hot coffees, breakfast items and side dishes account for a combined 28% share (Menu Composition Analysis, 2010).

Since the fast-food several global companies dominate the fast-food industry; therefore, MFFR will face stiff competition in Minnesota. Presently McDonald, Domino, Yum, Papa John’s, KFC, and Little Caesars are the fast-food chains of the world. McDonald entered the fast food industry in 1955, and today it is the most dominating fast-food chain in the world. According to BHA’s Trends and Statistics 2007, it has more than 1300 outlets in the UK. The company deals about 47 million people daily on its 31,000 worldwide fast food restaurant chain (KFC is the second-largest fast-food company operating more than 5200 units in the United States.

Marketing Mix

Minnesota Fast Food Restaurant will face stiff competition with globally dominated companies. The focal point of its marketing strategy will be the introduction of innovative foods because, with limited resources, this will be the point from where it may stand one step ahead of its competitors. 


MFR has a well-sorted plan to launch exclusive brands to be prominent from the style of other competitors of the US fast food industry, especially in Cottage Grave. The menu of MFFR will be centred on a variety of dishes. The list will include a variety of burgers and pizzas, a line of Italian sandwiches, French fries, chips, snacks, and a variety of sauces and salads. The most attractive items of the menu will be grilled chicken breasts, salmon, and a unique pizza, named pizza. This pizza will be larger than the competitors at twenty inches, and to attract the customers, it will have twice the toppings that the competitors have.

One of the main objectives behind the introduction of grilled food and pizza is to create recognition for new products. Minnesota Fast Food Restaurant has the target to gain 85% recognition of this product in the primary market. This recognition will lead the restaurant to achieve its strategic objectives, i.e. to increase the revenue and profit. The new restaurant has assumed that the marketing of pizza and grilled chicken breasts will support it to improve the overall sales by 20% in the next two to three years. Minnesota Fast Food Restaurant will offer excellent services as well. The leading service and goal of each staff member will be customer satisfaction. The newly established restaurant will believe in the old slogan, i.e. “customer is always right”. Both eat-in and take-out options will be available to the customers in a friendly and smooth environment.

Further, the grassy lawn and dining hall will be available on booking for any huge party, wedding ceremony or any social gathering. Similarly, advance seat booking or advance order of food will be offered on discount rates. MFFR will provide a special discount to the students and foreign tourists. It will have a distinct and eye-catching slogan as “fresh and full of life fast food”. Since the restaurant will also operate on takeaway strategy, therefore, the packing of food will have an attractive slogan, especially to the primary target market, i.e. young generation.


We intend to apply high/low pricing strategy for most of our products but high prices for the grilled chicken items and pizza. The company will get several benefits through this strategy. The plan will allow us to set the rate above the competition level but also to promote frequent sales to lower the price below the competitors. By setting higher prices, the strategy will also create excitement, and customers will purchase the new products just for curiosity. It will also improve the product and service standards of the company. If the other competitors are not in this position to reduce their food cost, MFFR will get a competitive advantage on the base of cost leadership. The Barbecue, salmon, grilled chicken breasts, and pizza will have a significant impact on the general deliciousness of unique products. Extra sauces will be individually available with a price of 50% of food cost. Students will enjoy a discount of 15% of all food items except the soft drinks and wines. Similarly, our restaurant will provide a special 10% discount rate for foreign tourists and advance orders.


Minnesota Fast Food Restaurant will use the traditional direct channel distribution strategy for drilled chicken breasts and pizza, i.e. Choose home delivery or MFFR dining, or online ordering. MFFR’s key goal is to support the clients to the highest level. Like other competitive firms, it will virtually have a limited area of operations and mainly will emphasize the local youth, athletes, and student community. Minnesota Fast Food Restaurant will establish certain outlets along the grounds and parks to offer the sportsmen and bodybuilders with high quality of healthy food. It also has the plan to provide home delivery service at reasonable rates. The main restaurant serves breakfast early in the morning and stays open until 2400 hours in the evening. However, its temporary outlets will operate according to the nature of the environment they will work.            


MFFR will put its best efforts to enhance the customers’ awareness about its grilled food items and pizza especially the youth associated with bodybuilding and sports activity. In order to gain the initial short terms goals, we will highly depend on our communication strategy toward the target markets. Advertising policy will be a key factor. During the initial phase, MFFR will emphasize to keep itself present on regional basis i.e. within Minnesota. An electronic campaign will be launched that will include newspapers, radio, television, and online contacts to know the trends of local customers. To make the communication more effective and productive, an advertising consultant will be arranged to carry out this important campaign. Promotional plan of the newly established restaurant is diversified and therefore it will incorporate a variety of marketing connections. Therefore, in order to monitor and observe the services, products, and market position, Minnesota Fast Food Restaurant will arrange a program to receive the feedback from the customers. Different techniques will be applied to do this such as telephonic conversation, direct mailing system, opinion through public surveys, and online comments. Since internet is the most ready and widely used medium to communicate, therefore we would launch a website, which will be one of the main communication channels. Hierarchy-of-Effect Model (HEM) is a supporting tool as it is the predominant model of advertising and presents six steps of customers’ trends, i.e. awareness, knowledge, liking, preference, conviction, and purchase (Clow & Baack, 2007).

Human Resource Plan

Minnesota Fast Food Restaurant will be located near the Blue Mountain County Park, as shown in Appendix-V. The area is one of the excellent points for tourists. Many people belong to India, China, and other Asian countries live there. MFFR will manage its full-time vacancies through online and newspapers advertising while part-time jobs will be offered to foreigners. In such a situation, we will apply a polycentric staffing policy for the first year of marketing. In this approach, parent-country nationals hold critical positions at company headquarters while foreign citizens are employed as subsidiaries (Hamblin, 1974).

The man who is highly responsible for the success or failure of a restaurant is the manager. Our restaurant will recruit 02 managers not only having professional knowledge, and related qualification from some renowned university but also the leadership skills, supervision proficiency, and creativity minded approach must be the salient features of their profile. The role of managers will be diversified as ranging from operational involvement to the administration of internal and external issues. They will remain concerned with food consumption, store operations, arranging the orders with suppliers, and ensuring in time delivery of food and beverages to customers. They will not only provide the quality and quantity of food concerning customers’ satisfaction but will also resolve their complaints. Managers will also be responsible for human resource development in terms of detailing, payment issues, and training of the personnel. Besides the bins, we will recruit 03 account officers, 02 receptionists, 09 cooks, 16 waiters, and 02 parking bays. The selected workforce will undertake several training, and some refresher courses will be arranged cyclically for the staff. For this, MFFR will hire the services of highly qualified experts to train its staff accordingly. The HRM plan of the initial phase is attached as Appendix-II at the end.


We expect that our restaurant will probably receive at least 500 users daily, that entails an excellent seating format avoiding any sort of frustration and complications at the time of rush. An area required for the restaurant is around 22,500 sq. Ft., which will be distributed in different rooms like office, dining hall and kitchen, stores, and kid’s playroom. A comprehensive seating plan will be required to facilitate about 200 customers at a time. For this, the restaurant will keep a valuable inventory with the potential to meet up the requirements thoroughly, e.g. tables (dining hall & offices), chairs (dining hall, offices, and counter), kitchen items (cutlery, dining cutlery, ovens, cooking ranges, grills, specialized equipment to prepare the burger, pizza, and grilled food items), ACs for dining hall and offices, hot water geyser, lights (wall, halogen & portable emergency lights), generator, and some miscellaneous items. To preserve the food items, the store will be equipped with several freezers and refrigerators. Fire appliances will be installed to handle any emergencies while to cater the security issues; close circuit cameras will be installed at various places.

Financial Forecast

The financial concerns include working capital like salaries of staff, utilities, and some miscellaneous expenditure. The budget experts of MFFR believe that preliminary financial support of $125,000 will be adequate to achieve the short-term profitability plans. It is estimated that by the end of the first fiscal year, MFFR will make a minimum gross margin of 17%. The restaurant is going to come in operations by 1 May, i.e. on Labor Day. The stakeholders expect that the grilled chicken products and pizza will observe the highest peak season in November and December, especially close to Christmas. Climatology of Minnesota is also the main factor to determine the initial sales projections. It reveals that the season from July to October is the best time for tourists and for local families as well to go outside for dinner or social gatherings. Cash flow forecast for the first twelve months is shown below. The expected sales projections of the first twelve months are shown as Appendix-III while the predicted cash flow may be changed concerning any change in the target market.

Variables Month Wise Forecast ($)
May Jun Jul Aug Sep Oct
Beginning Cash Balance 125000 8352 8379 11256 17513 26177
Sales 79445 95000 97000 102000 104000 108900
Total Cash Available 204445 103352 105379 113256 121513 135077
Cash Disbursements
Manufacturing 5000 4800 4770 4800 4890 5100
Expenses 27550 22220 21850 22555 22000 23550
Depreciation 778 778 778 778 778 778
Principal 1020 1020 1015 1035 1048 1070
General And Admin 2200 1780 1410 2075 1970 2070
Staff Salaries 46500 46500 46500 46500 46500 46500
Total Cash Disbursements 83048 77098 76323 77743 77186 79068
Net Cash From Operations 121397 26254 29056 35513 44327 56009
Loans and Capital Infusion
National Bank Fixtures 0 0 0 0 0 0
Capital Infusion 0 0 0 0 0 0
Other Disbursements
Proprietor’s Draw 12000 12000 12000 12000 12000 12000
Debt Service 1100 1100 1100 1100 1100 1100
Capital Disbursements
Furniture & Fixtures 66645 0 0 0 0 0
Equipment 33300 0 0 0 0 0
Net Cash Balance 8352 8379 11256 17513 26177 37409


Variables Month Wise Forecast ($)
2012 2013
Nov Dec Jan Feb Mar Apr
Beginning Cash Balance 37409 49601 50073 44830 35357 19709
Sales 111000 102000 98000 94000 88000 94000
Total Cash Available 148409 151601 148073 138830 123357 113709
Cash Disbursements
Manufacturing 5325 5500 5610 5800 6100 6100
Expenses 24250 25500 26855 27125 27200 27000
Depreciation 778 778 778 778 778 778
Principal 1055 1040 1050 1055 1055 1055
General And Admin 2100 2710 2650 2615 2515 2420
Staff Salaries 46500 46500 46500 46500 46500 46500
Total Cash Disbursement 80008 82028 83443 83873 84148 83853
Net Cash From Operation 68401 69573 64630 54957 39209 29856
Loans and Capital Infusion
National Bank Fixtures 0 0 0 0 0 0
Capital Infusion 0 0 0 0 0 0
Other Disbursements
Proprietor’s Draw 12000 12000 12000 12000 12000 12000
Debt Service 1100 1100 1100 1100 1100 1100
Capital Disbursements
Furniture & Fixtures 0 0 0 0 0 0
Equipment 0 0 0 0 0 0
Net Cash Balance 49601 50073 44830 35357 19709 10256




US Market Behavior

Appendix-II: Human Resource Plan (Amount in $)

Human Resource Plan (Amount in $)

Appendix-III: Sales Projections (Amount in $)

Sales Projections (Amount in $)

Appendix-IV: Resources Used (Amount in $)

Details %

(Sq. Feet)


(Sq. Feet)

Civil Works Total Construction


Dining 63 14017.5 21 294357
Waiting 4 112.5 21 2362
Kids Play 3 667.5 26 17355
Kitchen &


25 5562 10 55620
Office 1.5 33.75 10 338
Stores 3 667.5 10 6675
Total 100 22,250 376,707



 Machinery and Equipment (Amount in $)

Item Details Quantity Unit Price Total Price
New Broast Machine (15 Pound


2 11500 23000
Hot Plate for Burgers, Kebab, Sandwiches

(30” x 22”)

2 630 1260
Potato Cutter (8mm) 2 70 140
Microwave 2 80 160
Keg Racks & Shelves 3 210 630
Freezers (12 cf) 6 520 3120
Deep Well Frier (Single Valve With 2


2 800 1600
Bin Marry Soup Container (2 Valve With

Steel Cabinet)

2 615 1230
Pillar (4.5 Kg Potato Peeling Capacity) 2 120 240
Working Tables 3 640 1920
Total 26 33300


Dining Furniture, General Fixtures and Land Requirements (Amount in $)

Item Details Quantity Unit Price Total Price
Dining Table – Square


50 120 6000
Chairs (Standard 14”) 300 80 24000
Kitchen Cutlery Set 3 450 1350
Dining Cutlery* (Plate,

Fork, Knife, Spoon, Glass)

300 50 15000
Air Conditioner Split Units

(6 Ton)

3 2200 6600
Hot Water Geyser Large 2 500 1000
Halogen Lights 40 40 1600
Wall Lights (Large) 10 125 1250
Portable Emergency Light 5 125 625
Generator (1.5 KVA) 2 2100 4200
Counter Chairs 2 110 220
Office Table & Chair Set 1 3000 3000
Waiting Chairs for Take

Away Customers

10 180 1800
Total 728 66645


Total Cost

            Item Capital Required
Construction Cost (all inclusive) 376,707
Equipment & Machinery 33,300
Dining & Office Furniture 66,645
Working Capital (Utilities, salaries, bills etc) 10,23,325
Total 14,99,777


Appendix-V: Projected Profit and Loss Statements (Amount in $)

Cost 2012-13
Sales 11,71,900
Direct Cost of Sales 297,655
Other 125,000
Total Cost of Sales 422,655
Gross Margin 949225
Gross Margin % 63.9%
Payroll 608400
Sales and Marketing and Other Expenses 191,525
Depreciation 81633
Utilities 26000
Insurance 40,000
Miscellaneous 5000
Total Operating Expenses 952,558
Profit Before Interest and Taxes 201,374
EBITDA 284,912
Interest Expense 25,360
Taxes Incurred 85,585
Net Profit 355,327
Net Profit/Sales 37.3%


Appendix-VI: Site Map of MFFR Close to Blue Mountain County Park

Site Map of MFFR Close to Blue Mountain County Park

Appendix-VII: Projected Facilities

Food Item Brand
Broast Chicken Broast (Qtr.)
Chicken Broast (Half)
Chicken Broast (Full)
Sandwiches Chicken Sandwich
Egg Sandwich
Beef Sandwich
Club Sandwich
Hot & Sour Soup (2 Servings)
Hot & Sour Soup (4 Servings)
Chicken Corn Soup (2 Servings)
Chicken Corn Soup (4 Servings)
Plain Rice
Chicken Fried Rice
Vegetable Fried Rice
Egg Fried Rice
Beef Fried Rice
Beef Chilli (without rice)
Chicken Chilli (without rice)
Burgers Chicken Burger
Chicken Cheese Burger
Beef Burger
Beef Cheese Burger
Zinger Burger
Miscellaneous French Fries (per plate)
Soft Drinks (Large)
Soft Drinks (Regular)

xPizza (a special one)


Food Item Brand
Combos Combo Deal 1 Zinger Burger / French Fries / Regular Drink
Combo Deal 2 Chicken Broast (Qtr.) / French Fries / Regular Drink
Combo Deal 3 Chicken Burger, Broast (Qtr.), French Fries, Regular Drink
Combo Deal 4 Club Sandwich / French Fries / Regular Drink 105
Family Deal 1 Full Broast / Zinger Burger / Club Sandwich / French Fries (4) / Large Drink
Family Deal 2 Zinger Burger (2) / Club Sandwich (2) / Broast (Half) / Large Drink / Fries (2
Jumbo Deal 5% discount on purchase above 20₤


Appendix-VIII: Promotional Material

Online campaign through website
Advertising campaign through newspapers, TV channels, and radio as well
Feedback system
Pamphlets and broachers
Online and offline surveys
Arranging special functions


Appendix-IX: Organizational Chart

Organizational Chart

  • Census Redistricting Data (Public Law 94-171) Summary File (2010). American FactFinder. U.S. Census Bureau, 2010 Census. ttp://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=DEC_10_PL_GCTPL2.ST13&prodType=table. Retrieved 23 April 2011
  • Clow, K. E. & Baack, D. (2007). Integrated Advertising, Promotion, and Marketing Communications 3rd Edition, Pearson Education. pp. 165-171
  • Hrebiniak, L.G. (2006). Obstacles to Effective Strategy Implementation, Organizational Dynamics, 35, PP. 12-31.<http://maps.google.com/maps?blue_mountain_county_park> <http://www.city-data.com/city/Cottage-Grove-Minnesota.html><http://www.mcdonalds.ca/en/aboutus/faq.aspx>
  • KFC (2007). “About Us”. KFC. http://www.kfc.com/about. Retrieved July 7, 2011.  Menu Composition Analysis, 2010

related articles