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The most stable and fast-growing market is the public catering market, so the business idea “How to open fast food from scratch” is not only fashionable, but also in demand. The results of the RBC.research survey confirm that the number of establishments that run a successful business selling burgers, fries, burritos and pancakes is increasing every year. This is explained not so much by fashion as by the desire of most citizens to have a tasty, quick and satisfying meal.
Therefore, every year the trend of opening fast food outlets is gaining momentum. The popularity of such outlets directly affects the financial results of their work. Therefore, a fast food business is an ideal solution. The funds invested in the project will pay off fairly quickly.
- Business plan
- Selecting a room
- Package of documents
- Equipment
- Recruitment
- Range
Peculiarities
When organizing a fast food chain, the peculiarities of this business are taken into account. Its target audience is students, office workers and city guests. Restaurants are chosen to have a quick snack and not waste time on cooking. A typical representative is the famous McDonald's chain.
Features of fast food establishments:
- low cost of drinks and food;
- cooking from semi-finished products;
- fast service to visitors;
- simple room design;
- laconic and durable furniture;
- lack of waiters;
- the ability to take your order with you;
- constant assortment.
The main disadvantage of fast food is considered to be harmful to health. Due to the high calorie content and fat, such food contributes to excess weight gain. To reduce the harm from fast food, use fresh and natural products.
Revenues and profitability
According to statistics, the average bill for mobile eateries is 180–250 rubles.
To determine the possible number of visitors, it is necessary to count the traffic in the selected locations of the eatery three times a day. In this case, only representatives of the target audience should be taken into account - people under the age of 40 with an average level of income. For example, an entrepreneur determined that 80–85 people passed by the point within an hour. You can expect that 10% of them will make purchases: accordingly, during the day the enterprise will serve about a hundred people. It should be noted that the minimum acceptable level of attendance is 35–40 customers per day - otherwise the diner begins to operate at a loss. However, to solve this problem, it is advisable to take advantage of the main advantage of mobile fast food - the ability to move to a new location.
Fast food profit
Name | Meaning |
Average check, rub. | 220 |
Visitors per day | 100 |
Trade margin, % | 100 |
Daily revenue, rub. | 22000 |
Monthly revenue, rub. | 660000 |
Monthly expenses, rub. | 438440 |
Gross profit, rub. | 221560 |
Tax 15%, rub. | 33200 |
Net profit, rub. | 188360 |
Profitability, % | 42,9 |
Investments, rub. | 870350 |
Payback period, months | 4,6 |
Choosing a format and direction
There are two formats of fast food establishments:
- fast food outlet;
- kiosk on wheels.
The first business option requires large investments, but brings high profits. Be sure to rent space in a shopping center or other building. A kiosk on wheels is mobile, so it can reach a large audience.
Then choose the direction of business. The range of fast food and the purchase of equipment depend on this. It is allowed to include different types of snacks on the menu.
Main types of fast food establishments:
- Fast food cafe. Unlike restaurants, they have a limited selection. There are no waiters in the establishment; snacks and drinks are provided by the cashier.
- Free flow. Customers move freely around the trading floor. The food is prepared in front of the visitors. When the visitor has selected dishes, he goes to the checkout and pays for the order.
- Fast-fine. This business focuses on healthy and high-quality food. Moreover, its preparation takes a minimum of time.
- Street food. Street establishments offering various types of fast food.
- Fast food to go. The most budget-friendly business option. The dishes are placed in a cardboard or plastic container so that visitors can take them with them.
Location of the outlet in the food court
The food court is usually located on the second or third floor so that visitors can see and visit as many shops as possible on their way to food establishments. If the shopping center has already opened, then you will not have to choose the location of the fast food outlet in the food court. The most successful locations are taken apart during the construction phase of the complex.
Landlords carefully consider the concept of a food court and make sure that there are as many different fast food outlets as possible. More than two establishments with the most similar menus cannot be located in the same area. For example, several sushi bars or pizzerias.
The average kitchen size for one cafe in a food court is from 20 to 60 square meters, depending on the number of retail outlets planned by the landlords. The number of seats in the common hall is also regulated by the administration of the shopping center. On average, this is 25–35 seats for visitors to one establishment.
When choosing the location of a retail outlet in a food court, pay attention to competitors . It will be difficult for fast food that produces French fries and burgers to compete with such giants as Burger King, KFC, McDonald's. This proximity will have a bad effect on attendance, because most guests will choose well-known brands.
If you still decide to be located next to one of the representatives of the “Big Three”, there is an opportunity to lure the audience with a better price-quality ratio or an original menu.
Important points when choosing a fast food location are convenient access to warehouses and the presence of a technical corridor. Logistics are often poor in shopping centers. You have to wait a long time until the truck with the products arrives at the unloading site and the workers can move everything to the warehouse or kitchen. In addition, this happens before the opening or after the closing of the shopping center for visitors. If there is a technical corridor, then products can be delivered throughout the working day.
Registration
The first step in the procedure for opening a fast food cafe from scratch is registering a business. An individual entrepreneur or LLC is suitable for organizing fast food. In case of debt, an individual entrepreneur is liable with his personal property. Individual entrepreneurs are not required to have strict financial reporting, and the business owner can dispose of profits at his own discretion.
For an LLC, a more extensive package of documents is collected and the authorized capital is contributed. The organization is required to report on all financial transactions. At the same time, there is an opportunity to attract investors. This option is suitable for opening a chain of fast food cafes.
To register a business, a package of documents is prepared. In the case of an individual entrepreneur, it is enough to pay the state fee, make copies of your passport and write an application. For an LLC, they additionally provide a charter and a decision on establishment. The documents are sent to the tax service.
If you plan to sell tobacco products and alcohol, then issue a license. No additional permit is required for the sale of beer and other low-alcohol drinks.
Business plan for opening a fast food kiosk
Catering enterprises are very attractive for medium and small businesses. They are organized in busy and well-traveled places, near educational institutions, offices and other facilities. The payback period for such business investments ranges from 2-3 months.
Before organizing a catering point, an entrepreneur must calculate the potential risks. He also needs to take into account the specific food preferences of the population of his region. If there is not enough experience in this area, then it is better to seek the help of specialists. Otherwise, saving on calculations will lead to unexpected expenses.
How to open a fast food kiosk?
Before opening a kiosk, you need to solve several fundamentally important issues:
- Registration at the place of residence with the tax authorities as an individual entrepreneur (IP), as well as registration of a cash register.
- Choosing a room. Currently, shopping pavilions decorated with gray composite panels are very popular. In many regions of the country, these requirements have become mandatory, as they are imposed by the city administration. Trade pavilions from the CONVATE company are made from high-quality materials in factory conditions, so they have better thermal characteristics compared to handicraft ones. The company's competent specialists have all the relevant certificates and permits to produce products. For this reason, CONVATE modular pavilions and kiosks meet the highest demands and requirements of entrepreneurs.
- Source of initial capital. The best option is help from a small business support fund. If an entrepreneur prefers to use a loan, then it is advisable to discuss in advance possible options for deferring payment in the first months.
- Equipment. To sell hot dogs, sandwiches and drinks, you need a microwave, refrigerator, kettle, shelves and display cases for storing products and preparing meat dishes, pies, donuts and pizza.
- To open a kiosk or pavilion, you must obtain permission from the city authorities for trade, as well as, if necessary, a certificate from the sanitary and epidemiological service and approval from the Department of Architecture and Construction for the placement of small architectural forms. In addition, it is necessary to develop a financial plan and technical documentation.
- Selection of personnel to operate the kiosk. Usually a couple of salespeople handle this task, but for a larger establishment you need a cook, helpers, a delivery person, a cleaner and a manager.
- A source of energy saving and ensuring compliance with sanitary and epidemiological requirements by employees.
An entrepreneur can open such a business as his own brand, or use a ready-made franchise of a large fast food chain. When purchasing a franchise, you can obtain ready-made production technology, necessary equipment, and also insure possible financial risks.
The minimum area of a fast food kiosk should not be less than 4 square meters. At the same time, there should be a place in the area for collecting waste and installing a heater for operation in the cold season. If possible, it is advisable to open a kiosk in the spring and summer, since in winter the sales volume is greatly reduced.
Principles for successfully starting a fast food business
The top sellers in the fast food service system are fast foods: hot pastries, hot dogs, shawarma, grilled chicken, pancakes and pizza. If a retail outlet specializes in a certain type of product, then it is advisable to decorate the kiosk in the appropriate style. The sale of additional goods – tea or coffee, soft drinks – also plays an important role. The wider the range and the better the service, the higher the chances of getting a larger audience of buyers.
Pricing also plays a big role. The financial plan of the business should minimize the final cost of the finished portion, and beautiful branded clothing should add a respectable appearance to the establishment. You can fill the menu with healthy foods and salads.
A fast food kiosk must be mobile so that the entrepreneur has the opportunity to locate his establishment in the most advantageous location. It is also important to take into account that during the warm season, people's food preferences change. In summer, customers willingly take soft drinks and ice cream, and in winter they prefer a hot menu.
If the business development plan after 6 months does not coincide with the actual development, you should use audit services to avoid the accumulation of debts. If the profit is stable, you can open another outlet and create a chain of eateries.
Creating a mobile retail outlet is a very profitable activity. However, there is a lot of competition in this area. Therefore, it is very important for an entrepreneur to maintain an affordable pricing policy, maintain excellent service from the establishment, offer customers a wide range of products and locate retail outlets in well-travelled areas.
Room
Places with large crowds of people are best suited for fast food businesses. These are shopping centers, parks, pedestrian streets, universities, office centers, airports, and train stations. High traffic will ensure a constant flow of visitors.
The main problem is that such places already have fast food establishments. To stand out from competitors, customers are offered snacks that other establishments do not have. If you plan to install a kiosk on wheels, you can change the location.
It is best if the entrance to the catering point is located from the street. Be sure to take into account the ease of access and the availability of parking spaces. For a stationary fast food establishment, choose a premises with an area of 80 square meters or more. It is divided into several zones: a hall for clients, a retail outlet, a warehouse, and a bathroom.
Be sure to check the presence of ventilation, connections to sewerage, electricity, water and heat supply. It is most profitable to rent a room. After signing the lease agreement, they receive permits from Rospotrebnadzor, the city administration and the fire service.
Selecting a location
When thinking through a business plan for a fast food kiosk, pay special attention to choosing a suitable location. Good cross-country ability is very important. Choosing a crowded place is one of the necessary conditions in this business.
The best location is close to educational institutions, train stations, large offices, clothing and automobile markets. Good places are at public transport stops and on busy streets where people are moving to and from work.
By opening a kiosk in deserted places, in the absence of demand, you risk being left without profit and ending up in debt.
People who have experience opening fast food kiosks say that it is best to open several points at once. Having not one, but two or three kiosks will help spread the risks.
Equipment
The choice of equipment determines the range of fast food. For the fast food business, the following units are purchased:
- hot dog and shawarma machines;
- pancake maker;
- deep fryer;
- grill;
- waffle iron;
- microwave;
- coffee machine;
- boiler;
- refrigerators;
- showcase and order counter.
To equip the kitchen, they purchase a dishwasher, knives, spoons, plates, pots and other equipment. A cash register is installed on the counter. To serve visitors, they purchase dishes, forks, knives, napkins, and glasses. Fast food cafes usually use disposable utensils made of plastic or cardboard.
Tables and chairs are purchased for visitors in the hall. For such establishments, simple and practical furniture is chosen. If space is limited, purchase a bar counter and several chairs.
Market analysis
The business plan for the diner provides for a favorable location of the enterprise. This means that the main clients can be market visitors, bus passengers, drivers, and students.
You need to find out if there are cafes and snack bars similar to your establishment nearby, and what menu (and at what price) they offer. If the competition is too strong, you may want to consider changing your location. If there are few competitors, you need to offer customers something new - for example, vegetarian burgers and unusual puff pastries.
Staff
For a fast food business, it is better to find experienced workers. The staff depends on the size of the premises. For a kiosk on wheels, it is enough to hire 2 cashiers and organize their work in shifts. Typically, fast food establishments do not have waiters. Cashiers must remain friendly to customers and process orders quickly.
Staff for the catering business:
- administrator;
- cook;
- cashier;
- cleaner;
- accountant.
The administrator controls the work of staff, answers customer questions, and carries out a marketing strategy. The cook creates the menu and provides the complete cooking process. If necessary, an assistant cook is hired.
An entrepreneur can do his own accounting. The easiest way is to hire an outsourcing specialist or engage a third-party organization.
Basic operating principles
Cafe-bistro is a small establishment with a wide selection of dishes at low prices and very fast service. The initial capital for a bistro is needed much less than for other cafes. It will also take little time to prepare the establishment for opening, and the first income can be received within 2-3 months after the start.
Operating principles of a fast food cafe
For the fastest possible payback, the cafe must work actively from the first day and serve as many visitors as possible. Success in this business depends precisely on high turnover.
The bistro must meet the following requirements:
- Varied dishes. It is important to develop the right menu with a variety of dishes and drinks.
- Prompt service. Employees must quickly serve the visitor, provide assistance in choosing dishes if necessary, place an order and receive payment.
- Delicious, prepared in compliance with all the rules. “Fast food” is no longer considered an eatery. To obtain maximum profits, customers need to offer only high-quality food.
- Low cost of food. Savings do not come from using low-quality and cheap products. In such cafes there are no waiters or extra staff.
Thinking through the assortment
A fast food business can be focused on one direction: selling pizza or pasties. A wide range attracts more customers. Products are purchased to prepare fast food. Agree in advance with reliable suppliers.
Main types of fast food:
- Hot dogs. The most popular type consists of a soft bun and sausage. Add salads, ketchup and sauces if desired.
- Corn dogs. Sausages baked in corn dough will be an excellent addition to the menu.
- Shawarma. It is a lavash roll with various fillings. The menu includes shawarma made from chicken, meat, fish, and vegetables.
- Burgers and sandwiches. Hearty buns filled with vegetables and meat are loved by adults and children. The main competitors are the Burger King and McDonald's chains.
- Pizza. A traditional Italian dish that has become widespread throughout the world.
- Pancakes. Russian dish served with fillings of meat, salads, vegetables and fruits.
- Chebureks and pies. Fresh baked goods are always in demand. Especially if you can buy it to go.
- Confectionery. Donuts and buns can be prepared on site from semi-finished products or you can arrange supplies with the bakery.
- Rolls and noodles. Oriental cuisine is very popular. You can take a package of rolls for a walk or home.
- Grill. Grilled meat is in demand in winter and summer. Salads and vegetable slices are served as a side dish.
- Salad bar. Fast food is not always junk food. For lovers of healthy food, you can prepare vegetable salads and serve freshly squeezed juices.
In addition to fast food, the menu includes drinks: tea, coffee, juices, mineral water, cocktails. In summer, ice cream and fruit desserts are in great demand.
Selecting a room
The next step is to find a suitable premises for the activity. The following are suitable for this: a regular stall, a stationary kiosk, a wooden house, a tent, a pavilion, a trailer.
Please note that the area of the kiosk must be at least 4 square meters. Be sure to allocate a place to install the heater (in winter) and a place for waste.
The kiosk should be opened in the spring and summer. In winter, sales typically drop significantly.
Whatever type of premises you choose for a kiosk, it must be equipped with high quality.
Marketing plan for the project
Marketing policy helps to attract customers. The following types of promotion are used for fast food establishments:
- advertising on radio and television;
- distributing leaflets and business cards in shopping centers and other busy places;
- bright signboards, signs, streamers and banners;
- promotions and special offers.
Fast food businesses actively use the Internet to advertise. It is best to make your own website or page on social networks. It is convenient to accept pre-orders and publish information about promotions on the Internet.
Visitors are attracted by special offers. You can set discounts on products on weekdays, offer snacks as a gift for a certain amount of purchases. Discount coupons are distributed in shopping malls and other places near the establishment.
Sources of food court visitors
There are three main types of food court visitors:
- Guests of the shopping center who had been shopping for a long time and wanted to relax and eat a little.
- Mall employees, workers in nearby office buildings, and passers-by looking for a quick snack during their lunch break.
- Guests of the shopping center who come after work to diversify their leisure time, meet friends, and shop at the supermarket.
Very often it is the latter category of consumers that is the main one. They come with their family on weekends and holidays to the cinema, skating rink, game room, bowling alley, etc.
To understand what kind of audience you will have to work with, visit the shopping center you are interested in on the weekend and on a weekday. Determine the purchasing power of the food court, the leader among fast food outlets, analyze why this establishment has a greater influx of visitors.
A common mistake of new restaurateurs is the belief that through advertising and concept they will be able to attract another audience to the shopping center.
But you still have to work with those people whom you see during the period of analysis of shopping center visitors, and you should count on them first of all.
When determining the target audience, be sure to take into account the territorial factor. Most consumers of a local shopping center are willing to spend a maximum of half an hour on the way to it. Therefore, most potential visitors live in close proximity to the building - within a radius of 1–2 kilometers.
If you organize a fast food outlet correctly: think through the concept, allocate money for advertising, work on the service, etc., people will come to the shopping center in the evenings and weekends to visit your establishment.
Calculating the costs of opening a fast food restaurant
The fast food business plan determines the size of the initial investment. The total amount depends on the type of establishment, its area and rental cost.
Approximate cost of opening a fast food establishment:
Expense item | Amount, rub. |
Registering a business and obtaining permits | 10 000 |
Rent | 50 000 |
Repair of premises, communications | 50 000 |
Equipment purchase | 70 000 |
Purchase of office equipment, stands, equipment for the hall | 50 000 |
Food and drinks | 100 000 |
Other unexpected expenses | 20 000 |
The total investment in the fast food business is 350 thousand rubles.
Which staff should you choose?
To operate a fast food restaurant in a shopping center you will need:
- manager (administrator) who controls the operation of the entire establishment - service and kitchen. Often, he also keeps records at the point: orders products, conducts inventories and checks cash register shifts;
- cashier (operator) - an employee with access to a cash register and accounting system who counts the cash register at the end of the shift, counts visitors and takes orders;
- cook (any kitchen worker) - heats semi-finished products and makes preparations;
- also, depending on the type of establishment, you may need a barista, sushi chef, etc.
Employee turnover is another big problem for food court outlets. Of course, you can't constantly increase your employees' salaries and go over budget. But at a minimum, you can promote an employee’s position, let him grow, transfer him to other points or improve his qualifications.
A turnover of 20–30% per year is considered normal. If the percentage is higher, you should think about changing recruitment standards and adjusting working conditions.
Motivation - bonus system “percentage of sales” or bonuses for overtime, etc.
Many large restaurants and cafes cooperate with recruitment agencies. If you have a chain of establishments, this may be justified, but for 1-2 points in food courts you can select the staff yourself. In addition, this way you will personally control the hiring process, know each employee by sight and name, and will be able to create a more friendly and trusting atmosphere within the team.
For efficient operation of fast food, it is better to install an automation system at the very beginning in order to correctly maintain inventory records, control finances and compile statistics, as well as to control personnel and prevent theft.
One of the options is the Poster POS accounting system, which has a big advantage - it works on any tablet, which is much more economical than buying a separate candy bar. You can use Poster for free for 15 days.
Fast food business plan: financial section
The financial section of the business fee indicates monthly expenses. These are the funds necessary for the operation of the establishment.
Costs for maintaining and developing a fast food project
Table of costs for maintaining and developing an establishment:
Expense item | Amount, rub. |
Renting premises | 50 000 |
Salary fund | 150 000 |
Purchase of products and consumables | 50 000 |
Taxes and social contributions | 20 000 |
Communal payments | 15 000 |
Other expenses | 10 000 |
The total cost will be about 300 thousand rubles. In the future, there may be other costs associated with repairs to the premises, equipment breakdowns, and the purchase of new equipment.
How much does it cost to open a fast food restaurant in a food court area?
The first thing any budding restaurateur is interested in is how much does it cost to open a fast food restaurant? In each individual case the final figure will be different. It depends on the costs of the components:
- rental of premises;
- set of equipment;
- repair;
- marketing;
- registration of permits;
- purchases of basic goods;
- staff salaries.
All costs are conventionally divided into starting and monthly . The latter include wages, food purchases, rent, utility bills and advertising. Costs may vary. For example, the cost of renting an area in a food court depends on the size of the city (in the capital, over a million people and in the regional center they are different), location in the city, area of the establishment, status of the shopping center, etc.
If you buy a franchise, then all the calculations have already been done for you, you only need starting capital. It should be remembered that there are no specific franchising standards, so each network includes different points in the franchise. Thus, some companies do not take into account the cost of renting and repairing a point. Don't be surprised if the cost of opening a fast food restaurant ends up being $3,000 to $5,000 higher than what the franchisor stated.