Dedicated to our parents and to our beloved teacher Mr.
HAFIZ GHUFRAN without whom
We would be unable to write even a single word.
He made us to think and think positively while observing the
things in daily routine….
May Allah bless him and may he live long…
All the efforts are put a name and given recognition under the head and
patents of our beloved institute. This project has widespread scope to give
us experience of managing our self and others in organization. We stipulate
our thanks to those who render their help in data collection synchronized
with guidance to put it to an end of better words.
We are deeply indebted to our supervisor, Sir Muhammad Naveed whose
help, stimulating suggestions and encouragement helped us in all the time
of data collection and writing of this project.
3. Table of Contents
The business description
4. EXECUTIVE SUMMARY
The purpose of this business plan is to fulfill the desert need of customers in the region of
Islamabad and Rawalpindi. There is huge potential of ice cream business in this region but they
need a good quality and high variety of ice-cream. The business will be owned by F.A.J group E
and will be located in leased space at blue area ISLAMABAD. The business will serve healthy
and premium ice cream, yogurt, sandwiches, and nonalcoholic beverages to the generally upscale
target of Rawalpindi and Islamabad. The target market will be middle and upper class. because
we are providing high quality ice cream at reasonable price. According to the current situation of
the market and customer requirements Fast ‘n Fresh Premium Ice Cream Parlor will be
successful. It is anticipated that Fast ‘n Fresh Premium Ice Cream Parlor will become firmly
established in Rawalpindi /Islamabad within one year and will become known throughout
Punjab in five years with the potential of multiple locations. The Fast ‘n Fresh Premium Ice
Cream Parlor’s distinctive logo, its reputation for fast service and only the freshest foods, plus its
slogan, “Fast ‘n Fresh – good for you!” will provide a distinctive competitive edge. The owners
of F.A.J Group have experienced highly successful food service business in Pakistan.
5. THE BUSINESS DESCRIPTION
Fast ‘n Fresh Premium Ice Cream Parlor will be a start-up ice cream parlor located in leased
space at Blue Area Jinnah Avenue Khyber plaza Islamabad. The estimated opening date is June
F.A J. Group, who has experienced successful food service business in Pakistan last seven
years, will own the business as a sole proprietorship.. Fast ‘n Fresh Premium Ice Cream Parlor
will be an upscale business selling healthy and premium ice cream, yogurt, sandwiches, and hot
and cold nonalcoholic beverages. F.A.J Group will prepare its own Ice Cream and keep very
high quality standards.
Fast ‘n Fresh Premium Ice Cream Parlor will be successful because it is based on solid
market research demonstrating that there is a demand for an ice cream shop selling premium
products, it will be located in the most desirable retail space in Blue Area Islamabad, and the
owner has a seven-years track record of proven success.
Market analysis is favorable toward the ice cream business in Pakistan. According to
research survey, the overall ice cream market in Pakistan is expected to grow by a total of 25%
between 2009 and 2015, bringing category sales to Rs 70 million. Ice cream is a popular
indulgence, and people will spend money for such a treat. The International Premium Ice Cream
Institute has identified an indulgence-in-moderation buying style with a conservative approach to
most purchases, but splurging on certain items. This style is predominant both among affluent
Pakistani living in households with incomes of Rs 20,000 and less-affluent households with
incomes of under Rs 20,000.
The survey also shows that 80% of the Ice cream in Pakistan is consumed in summer while only
20% in other seasons. The consumption among children of age 5 to 15 is 38% and consumption
among adults is 62%. The survey also shows that the sales of frozen deserts will increase by 30%
and when asked where the greatest growth will be for the frozen dessert market, more than half
(70%) of the 10 manufacturers in the survey mention “healthy” products. While “healthy” ice
6. cream remains strong in the market, “premium” ice cream consumption has increased, especially
in Rawalpindi/ Islamabad.
In summary, the general market analysis shows that both “healthy” and “premium” ice
cream/yogurt sales are on the increase and will continue to increase. Further, the target market
for these products is middle and upper income families. The market analysis also reveals that it is
highly desirable to serve sandwiches and other foods to balance the seasonal decline in ice cream
Since the market analysis identified middle and upper income groups as desirable target
markets, what is the growth pattern in Islamabad regarding these groups? Table 1 presents
Number And Percentage Increases in Islamabad
Families By Income Groups, 1990 to 2010Est)
Years Low Income Middle Income High Income
Families Families Families
1990 8,000 4,000 2,000
1995 8,500 4,800 2,400
2000 9.400 6,300 3,000
2005 10,000 8,200 3,900
2010(Est) 11,000 98,00 4,900
Note: Family is estimated to be 4 persons.
Source: CDA Planning Department
Table 1 reports two important trends: the total population of Islamabad and the number of
families in the middle and high income categories are both increasing at a dramatic rate. As the
Middle Income Families are increasing at a higher rate in Islamabad which is very beneficiary
for our business because they can easily afford our products.
7. In one year, Fast ‘n Fresh Premium Ice Cream Parlor will be established in Islamabad/
Rawalpindi, and expansion plans will be developed for company owned and franchise locations
in other cities of Punjab.
The catchy slogan of our business is: “Fast ‘n Fresh - - good for you!” The slogan “good for
you” will emphasize the premium quality of its products as well as representing that everything
about the business will be good for its customers. This will include fast service, inviting décor,
healthy, premium quality foods, and a selection broad enough to meet the needs of individual
Fast ‘n Fresh Premium Ice Cream Parlor’s mission is presented below:
We, the employees and management of Fast ‘n Fresh Premium Ice Cream Parlor, make this
pledge to you, our valued customers:
We pledge that we will serve fresh foods and tasty beverages in a prompt and friendly
We pledge that we will serve only quality foods that meet the nutritional standards of the
International Premium Ice Cream Institute.
We pledge that we will be good community citizens, respectful of the environment, and
friendly neighbors to the surrounding businesses.
We pledge that we will always present a positive public image and make our establishment
one that you can visit with safety and peace of mind.
We pledge that we will be responsive to your suggestions and concerns.
If we do not keep our pledge of satisfaction, you do not pay!
Fast ‘n Fresh Premium Ice Cream Parlor will have these business objectives during its first
year of operation:
1. Cash break-even by the end of its first year of operations.
8. 2. Increase in profit by 10% each year.
3. Open new branches in major cities like Lahore, Faisalabad, Multan etc.
The operation of Fast ‘n Fresh Premium Ice Cream Parlor will be described using the main
functions of the business: marketing, competitive analysis, legal structure, management
expertise, support personnel, and financial information.
Marketing is very important tool in this competitive world. without marketing companies can not
think about the success of their new product or service.
Target market identification is one of the important components of marketing.
We are targeting upper upper ,upper middle and upper lower class. Because we are not only
believing that our products will be according to their taste and desire ,we are sure abot it.
Similarly we are also offering our products to all the sub classes of middle class. Because or
products are not only of best quality but our prices are also in range of this class.
More specifically our target market will be kids, teenagers and youngsters.
Fast ‘n Fresh Premium Ice Cream Parlor will sell:
Fresh Premium ice cream and Ice cream shakes
9. Two lines of yogurt: low fat and regular.
Traditional hot and cold sandwiches.
Coffee, tea and beverages.
Ice Cream and Related Products
Fast ‘n Fresh Premium Ice Cream Parlor will sell the following ice cream, yogurt, beverages:
vanilla, chocolate Totti Fruity, Pistachio, Pineapple, Mango, Kulfa, Brazilian Coffee Crunch,
Strawberry Surprise, and other ice cream and yogurt flavors; ice cream and yogurt sandwiches;
beverages; and a variety of Ice cream and Milk shakes.
The five most popular ice cream flavors in Pakistan are as the follows:
F.A. J Group will produce all ice creams and yogurts by itself and the sandwiches will be
purchased from Imperial Bakers.
Beverages And Other Food Products
Five private branded beverages will be purchased from Muree Beverages, Pepsi, Cocacola,
Shezan, Nestle etc. Coffee, tea and related beverages will be purchased from a local wholesale
food distributor. Hot and cold sandwiches, and other foods will be purchased from Imperial
All other foods and beverages will be purchased from reputable suppliers with
careful attention to quality.
The majority of the business’ sales will come from ice cream and yogurt. Representative
prices are as follows: Rs 30.00 for a single scoop of ice cream, Rs 50.00 for a double scoop of
ice cream (both single and double scoops include a cone or cup), Rs 60.00 for a double scoop in
a chocolate waffle cone and Rs 70.00 for three scoop, Rs 80.00 for a triple scoop in a chocolate
waffle cone. Volume costs include Rs 16 per scoop of ice cream, Rs 2.00 per 5 ½ oz. plastic
cup, Rs 1 per plastic spoon, Rs 5.00 per chocolate waffle cone.
10. The general price range for sandwiches in the market is Rs 60.00 to Rs 400,Rs 25 to Rs 50 for
soft drinks, and Rs 75 for coffee. Fast ‘n Fresh Premium Ice Cream Shop will charge RS 70.00
for sandwiches, Rs 25.00 for soft drinks, and Rs 70 for coffee. Volume costs for sandwiches will
be Rs 60.00, soft drinks Rs 22.00, and coffee Rs 62.00.
The area of Islamabad is very suitable for any kind of business. People of this area have
buying power. In Islamabad, Blue Area is famous shopping spot and there are so many
restaurants over there. People come in Blue Area for shopping and food frequently. There are so
many offices of different national and multinational companies and the employees of these
companies want some good and fresh food on daily basis.
Customers would be attracted to Blue Area because of the anchor and supporting tenants.
There are several entrances/exits creating easy accessibility. All of these factors weigh in favor
of Blue Area as a potential location.
The ice cream parlor will be located on an approximately 1,500 sq. ft. building that can be
expanded. A commercial real estate broker representing Blue Area said that the decoration and
other furnishing etc, according to our specification will be done at a cost of Rs 250 per sq ft. Two
five-year options would be included in the lease agreement. Three months free rent would be
offered as an inducement. Consolidated area maintenance fees would be RS 4000/month
“Our aim is to spark the taste and feeling of summer in everyone’s day. Life is there to be
enjoyed and we are the fun part of vitality. We constantly provide new products and experiences
that excite the senses and inspire people of all ages to 'taste the fun side of life”
11. For any company to capture the market of its own wish and target, promotion plays the most
important role in fulfilling the quest for market share. Although the process of promotion is very
complex and can be looked in detail:
Companies inform the people when they don’t know about the product, persuasion takes place
when people already know about the product and company forces them to buy the product and
when companies is selling enough quantities of a product it reminds consumers about the product
to keep the sales at the same level in future.
Promotion is important for firms in many ways. It helps to establish image of product, which the
manufacture wants to portray, and also the personality of product. It informs the people, creates
awareness and helps in positioning and repositioning of the product. With promotional tools
company can tell about the availability of product, company can justify prices or can
communicate the features of the product.
As we are new in the market so for our promotion we will launch a campaign in which we will target
main wedding halls of twin cities. During this campaign we will provide ice cream on discount.
We will also target all the famous visiting places of Islamabad in which we will offer our ice creams on
discount prices. The purpose of these activities is to inform them that we are in the market too and we
can not only compete rather we will lead this market.
We are creating awareness for our products and for this purpose we using huge signboards on
the major square of the cities and more importantly both the print and electronic media for
We are using print and electronic media plus the signboards initially just to create awareness and
knowledge about our products.
12. As the public gets awareness about our products the next step is to create interest among the
target buyers about the product which is again done through advertisement.
We creates curiosity among the customers and transform that curiosity into the desire of the
Finally to make the customer purchase the product this is the final thing to be done in model. We
follows sequential pattern through which we strengthens our products.
Fast ‘n Fresh Premium Ice Cream Shop will be promoted with a variety of marketing
A grand opening will be held with free samples of food products and drawings for distinctive
hats, T-shirts, and other clothing bearing the store’s logo and the phrase, “I’m Fast ‘n Fresh!”,
worn by store employees.
Coupons will be published in bi-weekly ads in different weekly magazines . Coupons will
also be distributed at the Loke Virsa Programs.
and other community events. One to three-year sales forecasts are presented in Table 3
together with anticipated promotional costs.
One to Three-year Sales Forecasts And Related Promotional Costs
Years Sales Revenue Promotion Cost
One 40,00000 500000
Two 48,00000 2500000
Three 55,00000 3,00000
13. COMPETITIVE ANALYSIS
Our major competitors in Rawalpindi Islamabad are
Chaman Ice cream:
Chaman ice cream is a well reputed ice cream parlor and are specialist in ice cream. They are
very reputed in Lahore and are now spending themselves to many areas of Pakistan.
Rahat Bakers is located in Blue Area. Rahat Bakers is specialzed in bakery products. They are
also providing Ice cream in many different flavors. Rahat Bakers has been in business from
many years and enjoy a reputation as a well-run quality business.
Savour is very famous throughout Rawalpindi/Islamabad region. Their specialty is rice and fast
food but they are also providing a good quality of ice cream as well.
Fast ‘n Fresh Premium Ice Cream Parlor will be operated as a partnership owned by F.A.J
One of the owner of F.A.J group has a successful business of ice cream in pakistan.
The owners holds degrees in business education from a reputed organization. All the partners are
very energetic and are knowledgeable about business strategies .
Items Fast’ n Fresh Chaman Rahat Sogo Grill Savour
14. Summer Hours 9am-1am 10am-1am 10am-1am 10am-12am 10am-2am
Winter Hours 10am-12am 10am-11pm 10am-12am 10am-11pm 11am-1am
Days Open 7 days a week 7 days a week 7 days a week 7 days a week 7 days a week
Price Level Moderate Moderate High High Moderate
Specialty Ice cream Ice cream Bakery Ice cream Rice
And shakes Ice cream
Sandwiches Yes No Yes Yes No
Reputation Unknown Fair outstanding Excellent Outstanding
National No Yes No Yes No
Methods of Magazines Magazines Magazines Magazines Magazines
Promotion Newspaper Flyers Flyers Newspaper HS Events
F.A.J. group have used several reputable professionals who provide business services. These
include the Habib Insurance Agency and Sadat law firm. The owners have good terms with few
15. SUPPORT PERSONNEL
The business will operate using local young personnel with good looks, education, politeness
and good communicational skills as its employees. Focus will be to hire the people of Islamabad
and Rawalpindi. This will reflect a youthful, invigorating image consistent with its “Fast ‘n Fresh
- - good for you!” slogan. The manager will be an experienced person from one of the owner’s.
A special employee benefit will be Fast ‘n Fresh employee of the month who will be awarded a
cash prize. The majority of the employees will work part-time with a full-time manager.
Sources of Cash
1. Personal Funds. The owner will invest Rs 2000000 into the business.
2. Loan Proceeds. The owner will borrow Rs 1000000 from National Bank as a five-year revolving
line of credit at 10%. Interest will be charged only on the amount actually borrowed with
principal payments of 20% of the amount borrowed due each year.
3. Cash Receipts From Business. Rs 4000000 in cash receipts net of sales taxes is estimated. This
projection involves selling 15,000 single scoop, 6,000 double scoop cones, 10000 double scoop
cups, 3000 triple scoop cones, 5000 triple scoop cups, 8,000 sandwiches, about 6000 cups of
coffee, and the remaining sales were that of other items like softdrink, milk shakes, beverages
etc.. This is a conservative estimate of cash receipts.
One-Year Cash Flow Projection
Sources of Cash
1. Personal Funds 2000000
2. Loan Proceeds 1000000
3. Cash Receipts from Business (Net) 4000000
Total Sources 7000000
Uses of Cash
16. 4. Equipment/Supplies 1600000
5. Vehicle Purchase/Lease 25000
6. Real Estate 0
7. Fixtures 200000
8. Security Deposits (Rent and Utility) 200000
9. Signs 29,200
10. Leasehold Improvements 100000
11. Cost of Goods Sold 480000
12. Telephone and Utilities 18000
13. Rent 600000
14. Business License Fee 75000
15. Insurance Premiums 200000
16. Office Supplies 35000
17. Legal and Accounting 50000
18. Advertising 500000
19. Real Estate Taxes 50000
20. Miscellaneous Expenses 250000
21. Payroll Taxes and Benefits 15000
22. Payroll Wages (Excluding Withholdings) 1500000
23. Loan Payments (Principal and Interest) 300000
24. Owner’s Draw 1000000
Total Uses 7000000
17. Uses of Cash
4. Equipment. Basic equipment cost is estimated to be Rs 1600000. This expense includes:
dipping cabinets, refrigerators, tempering freezer, display freezers, holding freezer, three-
compartment sink, ice machine, stove, serving equipment, dishwashing equipment, and
5. Vehicle Purchase/Lease. A utility van will be leased at Rs 25000 for three years from bank Al
6. Real Estate. Real estate expense is included in lease expense.
7. Fixtures. Fixture costs will total about Rs 200000 based on an estimate from Hussain Restaurant
Fixtures Supply. These cost will include purchasing tables, chairs, and removable service items.
8. Security Deposits. Security and other deposits will include Rs 200000 for lease-related deposits,
utility deposits, and miscellaneous deposits.
9. Signs. Fast ‘n Fresh Premium Ice Cream will have signage on all four side of the building. Signage
and installation will cost Rs 29,200.
10. Leasehold Improvements. Net leasehold improvements after the $10/sq.ft. allowance by the
landlord will total $7,500. This estimate was provided by Smith Construction of Valley City and
includes floor and wall coverings, window treatments, painting and decorating, window
decorations, and miscellaneous minor improvements.
11. Cost of Goods Sold. Cost of goods sold is based on the sales projection of Rs 480000 and is
estimated to be an average of 14% of sales totaling Rs 4000000.
12. Telephone and Utilities. Valley City Gas, Electric, and Telephone Company estimate telephone
and other utilities at 1500/month for an annual total of Rs 18000.
18. 13. Lease/Rent. Lease payments are Rs 50000/month for an annual total of Rs 600000. This
information was provided by the commercial real estate agent.
14. Business License Fee. The business license fee based on business revenue (1.88% of gross
revenue) will be Rs 75000 (License and Permits Office).
15. Insurance Premiums. K.K Insurance Agency, Islamabad estimated annual premiums at Rs 6,
00000. These premiums will cover business liability, property damage, workman’s
compensation, and all other types of insurance.
16. Office Expense. This item includes all office-related expenses including copying and paper
supplies. The owner will perform office duties. Total is estimated at Rs 35000 annually based on
the owner’s previous experience.
17. Legal And Accounting. Masoom Akhtar and co and Sadat law firm will provide basic
bookkeeping, accounting, and legal services. The total estimated annual cost is Rs 50000.
18. Advertising And Promotion. Rs 500000 will be allocated to the advertising and promotion
campaigns discussed in the Marketing section above.
19. Real Estate and Other Taxes. Real Estate and Personal Property taxes will total Rs 50000/year.
The Management Office, CDA, provided this information.
20. Miscellaneous Expenses. Rs 250000 has been estimated for miscellaneous expenses based on
information provided by our partner who has a previous experience.
21. Payroll Taxes and Benefits. These are estimated to be 15000.
19. 22. Payroll. Wages total Rs 1500000. workers’ compensation. Wages include all the salaries of
workforce and manager who will be one of our partner and will be given extra compensation in
term of salary.
23. Loan Payments (Principal and Interest). All of the Rs 1000000 loan allocation will be used
during the first year of operations. Assuming this amount was available at the beginning of the
business’ fiscal year, interest at 10% totals Rs 100000. In addition, according to the loan
agreements, principal payment of Rs 200000 was also required.
24. Owner’s Draw. The owners drawn Rs 100000 at the end of one year.
Fast ‘n Fresh Premium Ice Cream Parlor will be successful. This business plan has
documented that the establishment of Fast ‘n Fresh Premium Ice Cream Parlor is feasible. All of
the critical factors such as industry trends, marketing analysis, competitive analysis, management
expertise, and financial analysis support this conclusion.
We invite you to attend our grand opening. We promise that we will make the experience,
“Fast ‘n Fresh - - good for you!”