MwaksFast Food intends to open chain stores in proximity to learninginstitutions as they provide a ready market. The organization willstart by operating a distribution center and five stores. To do this,a starting capital of $300,000 is required. It intends to be aworld-class organization in the delivery of tasty fast food mealsthrough increasing customer experience.
Theorganization will concentrate its efforts on selling common softdrinks, sandwiches, hamburgers, fried chicken, French fries, hotdogs, noodles, and Pizza. It will use fresh ingredients in thepreparation of the foodstuff.
Thegrowth in fast food industry is correlated to growth in technology(Franchise Help, 2016).This is because technology makes production easy and most productsare made at the mercy of innovation. However, despite this industryreceiving much criticism from the health sector, it continues to growas people are usually busy with their work and preparing a meal orhaving a chance to take a decent restaurant meal will be costly andmore time will be wasted in acquiring it. Nevertheless, this industryis adopting health precaution in the preparation of its products toappeal to a wide public (FranchiseHelp, 2016).The greatest market for this industry has been the millennialconsumers and their children.
Theorganization intends to station its store in proximity to learninginstitutions such as high school, colleges, and universities. As itsmarket is comprised of youths, low prices will be used as apenetration strategy. Furthermore, the consumer will participate indetermining, which products and service will be given. Theorganization will also personalize the services.
Theorganization faces competition from McDonald`s and other corporationthat are well established as they already have ready markets,customer base, and capital strength. The advantage that Mwaks FastFood business has is that it has decided to position itself close toconsumers reducing transport cost or walking distance in addition toproviding the goods at affordable price. Additionally, theorganization faces risks from other entities imitating its approachof establishing itself in proximity to learning institutions.
Thesupplier will take inventory to the organization’s distributioncenter. From there, it will supply its stores according to theircapacity and demand. The purpose of this is to ensure that theoperations of the stores are not interfered with. Since the fast foodbusiness is small, consisting of 5 stores and distribution center, itwill have 14 employees. Every store will have two employees the chefand service person, while the distribution center will have twopersonnel who will help in checking inventory and its distribution tovarious stores. Also, the organization will have a manager and theassistant who will oversee the operations of the store units.However, the organization projects that it will grow immensely andhave over twenty established chain stores. In that case, theorganization will hire more employees and expand the administrationaccording to the needs. Rational bureaucracy will be adopted as theorganization leadership system.
Fornow, the organization requires $300,000 to equip itself withnecessary facilities such as the stores, a distribution van andoperational machines and tools get permits and labor. Moreover,funds will be used in creation and designing of the website andavenues for social media platforms and intra connecting of the storesamong themselves and to the headquarters. Furthermore, some fundswill be needed as reserves to bail the business in hard times. Thebusiness expects to be very profitable by the first fiscal year.
FranchiseHelp. (2016). FastFood Industry Analysis 2016 – Cost & Trends.Retrieved fromhttps://www.franchisehelp.com/industry-reports/fast-food-industry-report/