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How to setup restaurant business in bangladesh.

How to Setup Restaurant Business in Bangladesh

REGISTRATION AND LICENSE PROCESS

There are several ways by which an investor can invest into the restaurant industry, eg Sole Proprietorship, Partnership Business, and Private Limited Company. The first two options are not available for Foreign investors. 

SOLE PROPRIETORSHIP 

In Bangladesh, a Sole Proprietorship does not constitute a separate legal entity, therefore, it is not distinct from the owner/proprietor. During the course of business if any liability arises, the business owner will be personally accountable for all liabilities. Any Bangladeshi citizen of a minimum age of 18 years is eligible for a sole proprietorship. 

Registration Procedure

In order to set up a sole proprietorship business in Bangladesh, the following steps need to be followed:

Step 1- Proposed business name. 

Step 2- Obtaining Trade License. 

General Licenses

Trade License – It is the basic requirement for proprietorship. This can be obtained by making an application to the respective City Corporation/local government along with the lease/rent document of the office space of the business. Entities which shall operate in commercial sector and the entities which shall operate in industrial sector shall have to apply for commercial trade license and industrial trade license respectively.

TIN Certificate -- The application needs to be made through online portal of National Board of Revenue (NBR).

VAT certificate --- The application needs to be made through online portal of National Board of Revenue (NBR).

PARTNERSHIP BUSINESS

A partnership business need to be registered with Registrar of Joint Stock Companies and Firm of Bangladesh (“RJSC”).

STEP 1- CHOOSING THE PARTNERSHIP NAME

A Name Clearance for the proposed name of the Partnership Business, must be obtained from the Registrar of Joint Stock Companies And Firms (RJSC).

STEP 2 – PREPARE A PARTNERSHIP DEED

The Partnership Deed should be written on a stamp paper in accordance with the Stamp Act and all partners should sign it and subsequently be notarized.

STEP 3- REGISTER PARTNERSHIP DEED WITH RJSC

The partnership deed along with filled up Form I should be filed with RJSC. The officials of the RJSC will review the documents shall issue a Certificate of Registration. Timeline – It usually takes around two weeks to obtain the Certificate of Registration from RJSC after the submission of the documents as per STEP 3.

General Licenses 

TIN Certificate ------- The application needs to be made through online portal of National Board of Revenue (NBR). Trade License -The application needs to be made, along with the appropriate government fees, to the relevant city corporation office/ local government office along with the business documents and the lease/rent deed of the office space of the Business. Entities which shall operate in commercial sector and the entities which shall operate in industrial sector shall have to apply for commercial trade license and industrial trade license respectively.

VAT certificate ---- The application needs to be made through online portal of National Board of Revenue (NBR).

PRIVATE LIMITED COMPANY

Procedure for company setup: The procedure of setting up a company are as below: Company Incorporation:

STEP 1 - A Name Clearance for the proposed name of the Company, must be obtained from RJSC.

STEP 2 – Drafting and signing the following: • Memorandum and Articles of Association of the company; • Filled in Form IX: Consent of director to act; • Filled in Form XII: Particulars of the directors, manager and managing agents.

STEP 3 – Opening the bank account for the Bangladeshi Company and remitting the share capital amount of the foreign shareholders (not required for local shareholders)

STEP 4 – Bank to issue encashment certificate of such foreign remittance (not required for local shareholders)

STEP 5 – The signed documents, as mentioned in step 2, shall be required to be submitted to the RJSC along with the encashment certificate and the government fees for the incorporating the company. 

STEP 6 – RJSC shall verify the documents and provide the certified incorporation documents. 

Timeline – It usually takes 3 to 4 weeks, after submitting the documents as per Step 5, for RJSC to issue the certificates.     General Licenses:

TIN certificate ------ In order to obtain the certificate, an online application needs to be made after the company has been duly formed. Additionally, a local phone number and registered office address are required to complete the application.

Trade License --- The application needs to be made, along with the appropriate government fees, to the relevant city corporation office along with the company documents and the lease/rent deed of the office space of the Company. Entities which shall operate in commercial sector and the entities which shall operate in industrial sector shall have to apply for commercial trade license and industrial trade license respectively.

VAT certificate --- The application needs to be made through online portal along, with Company documents. Specific licenses/approvals

The restaurants produce commercialize food products and beverages that is served to mass people, therefore, it needs to follow special health regulations and collect special permission and license from respective government authorities to operate business in Bangladesh.

Restaurant License

Step 1- To conduct a restaurant business application need to be made to respective registrar with prescribed fee and procedure.

Step 2- After receiving the application, the registrar will inspect the information provided in it. If the registrar gets satisfied, then he will issue registration certificate in favour of the applicant providing the time, procedure and conditions in the form. 

Step 3- Restaurant business should get started and a license should be obtained within 1 year from the date of issue of the registration certificate.

Step 4 – After that the owner of the business shall apply to the respective controller in prescribed form and fee to obtain license.

Step 5 – If the controller is satisfied after inspection, he will issue the license.

License shall get expired after three years and its renewable. 

Import Registration Certificate (IRC) - Entities which shall require to import Food products or machineries for restaurants requires to obtain the IRC. 

The application for IRC needs to be made to the Office of Chief Controller of Imports, with entity incorporation documents, TIN certificate, trade license, solvency certificate from the bank and chamber of commerce membership certificate and relevant government fees. The certificate need to be renewed annually.

Fire License - Considering the environment and to ensure the safety of the establishment along with the employees engaged in the business, it is mandatory for buildings and business organizations to obtain fire license. It is issued by the Fire Service and Civil Defense (FSCD) authority operating under the Ministry of Home Affairs, Bangladesh. 

The documents required to be submitted in order to obtain a fire license are as follows: -   1. Prescribed application form; 2. Trade license; 3. Yearly valuation certificates; 4. Deed of agreement; 5. Layout of the establishment; 6. Certificate of Incorporation; 7. Memorandum and Articles of Association; 8. No objection certificate from the local authority; 9. Clearance certificate from the FSCD office; 10. Deposit slip/treasury challan.  Certification Mark from Bangladesh Standards and Testing Institution (BSTI) - There are 71 Agricultural and Food Products which are under the compulsory Certification Marks (CM) scheme of BSTI which in other words means that marketing of any of these items needs conformity certificate of Bangladesh Standard from the BSTI. There are imported 23 Food Products required mandatory certification before customs clearance. If any restaurant use any of the products from these two lists it must check whether the products have the Certification Marks on it.  LEGAL ISSUES

Annul General Compliances of the business entities- The entities are required to comply with the annual filing requirements, such has updating trade license at the respective city corporation, renewal of chamber membership, renewal of IRC, filing taxes, updating the annual filings at the RJSC for limited liability companies and renewing branch office permission at BIDA after it expires.

Implication of Contract Law – The entities’ relationship with dealers/vendors is quite an integrate part who provides products or services for the business. There should be a presence of dealership/vendor Agreement while selling products to dealers or receiving any goods and/or services from the vendors. Vendor Agreements can cover a diverse area comprising software, professional services, office supplies, technology services, event planning, marketing, consultants and many others. In the time of dispute, in additional to the applicable laws, the agreement plays a vital role to resolve the disputes, hence it is very important to safe guard one’s the interest while drafting the agreements.  The franchise agreement is also an important aspect in this sector as a lot of entities brings the product of international bands on franchisee- franchisor basis.

It is crucial that such agreement is drafted clarifying all the legal aspect specially in compliance with the foreign exchange guidelines of Bangladesh Bank. This shall be helpful while remitting the royalty by banking channel to the franchisor.  In addition to the royalty payment, the foreign shareholders can also remit the dividend after deducting the applicable taxes. 

Requirements Labour laws – The entities need to ensure that its relation with the employees are coordinated with the labour laws of Bangladesh. The employees shall have an appointment letter which shall duly mention their job title, job description, salary, benefits and welfare, applicable working hours and leaves etc. It is to be noted that the employer cannot, by contract or appointment letter, provide anything less than that is provided by the labour laws. It is also the employer’s duty to provide a safe and healthy environment for the employees.   

Foreign Exchange regulations– The entities with foreign investors shall need to ensure that the initial investment are made via proper banking channel, eg.  at the time of company incorporation or buying shares of an existing company, the foreign investors should be remitting the share capital amount from their foreign bank account Company’s bank account with a note ‘investment in the share capital of the (Name of the Company)”. This will show that the investment has been made via proper channel and while remitting the profit such initial investment documents/information shall allow a smooth transection as per Bangladesh Bank guidelines.  

Certification Marks from BSTI - Standards Catalogue 2018 of BSTI provides a list of 166 products which are under the compulsory Certification Marks (CM) scheme of BSTI which in other words means that marketing of any of these items needs conformity certificate of Bangladesh Standard from the BSTI. Among those 71 items are food and agricultural products from number (Number 1-71 in the product list of BSTI). BSTI also provided a list of Imported 55 Products brought under mandatory certification before customs clearance among those 23 items are food products from number (Number 1-23 in the list of imported products)  Application of The Food (Special Courts) Act, 1956  The Food (Special Courts) Act, 1956 is an act to provide for setting up of Courts for speedy trial of offences in relation to foodstuffs. A Special Magistrate may take cognizance of any offence punishable under this Act. If any person commits an offence punishable under this Act, he shall be punishable with an imprisonment for a term which may extend to three years or with fine or with any one or both of them and the Court of Special Magistrate trying such offence may direct that any foodstuffs in respect of which the said Court is satisfied that a notified order has been contravened shall be forfeited to the Government.

Application of Fish and Fish Products (Inspection and Quality Control) Ordinance, 1983

The inspection and quality control of fish and fish products are regulated by the Fish and Fish Products (Inspection and Quality Control) Ordinance, 1983. Fish products which is decomposed, unwholesome or contaminated with pathogenic organisms should not be exported or sold for export or have in possession for export for human consumption. Any person who is suffering from leprosy, tuberculosis or such other contagious disease as the Government may, by notification in the official Gazette, specify, shall not catch, handle, carry or, process or cause to catch, handle, carry or process fish or, as the case may be, fish products or work in fish processing and fish packing plant and establishment. The punishment for contravening these provisions shall be imprisonment for a term which may extend to six months, or with fine which may extend to Taka five thousand, or with both. Application of The Food Safety Act, 2013

Food Safety act, 2013 deals with vast area to ensure the rights toward access to safe food for the protection of human health and life.  There are some prohibitions related to Food Safety Management System.

Such as -  

• Use of poisonous elements, substance or ingredient, insecticides or, or intoxicated food colour of flavouring matter, or any other intoxicated additives or processing aids, which may cause injury or toxicity to human health,  • Use of radioactive, heavy metals etc. in excess of acceptable limit. • Production of adulterated article of food or food ingredient, etc • Uses of food additives or processing aids • Keeping of used industrial oil, industrial waste, adulterants, pollutants, etc. in food establishment. • Expired article of food or food ingredients • Uses of growth promoters, insecticides, pesticides or drug residues, microbes, etc. • Sale of diseased or decomposed fish, meat, milk, egg etc. or any food products made of such thing. • Keeping and exhibiting the name, address and receipt or challan of the concerned parties.

If any person breaches any act and is convicted and thereby punished with fine by a Food Court, the concerned complainant shall be entitled to get 25 (twenty five) percent of the said amount as incentive : Provided that if the complainant is an officer or employee of the Authority, he shall not be eligible to get such incentive.   Application of The Bangladesh Hotel and Restaurant Ordinance 2014 

“Restaurant” means a commercial institution where customers can have standard food on monetary consideration which conforms to the minimum prescribed criteria having seating arrangements for thirty persons and above. Under this act no one can run a restaurant business without having the registration certificate and license. Owner of the restaurant can transfer their ownership by informing the controller. The previous owner shall have to surrender the registration certificate and license to the controller and the new owner of restaurant shall have a new licnese by following the procedure and providing the fees. If any person or owner breaches any law under this act the punishment will be 6 months simple imprisonment or fine not more than 2 lakhs BDT or both. If any company breaches law under this act, the person who is directly connected with the offence will be liable. Application of Consumers’ Right Protection Act  The provisions for the protection of the rights of the consumers, prevention of anti-consumer right practices and for matters connected therewith are regulated by The Consumers’ Right Protection Act, 2009 (Act No. 26 of 2009) [ 6 th April, 2009 ] . If anyone breaches any law of this act he will be punished for the breaches.

• For not using cover of goods etc inscribing weight, amount, ingredients, instructions for use, maximum, retail; price, date of manufacture, date of packaging and date of expiry of that goods on the label, the punishment shall be imprisonment for a term not exceeding 1 (one) year, or with fine not exceeding Taka 50 (fifty) thousands, or with both. 

• For not showing price-list the punishment shall be imprisonment for a term not exceeding 1 (one) year, or with fine not exceeding Taka 50 (fifty) thousands, or with both. 

• For not preserving and displaying price-list of services the punishment shall be imprisonment for a term not exceeding 1 (one) year or with fine not exceeding Taka 50 (fifty) thousands, or with both.

• For mixing prohibited materials in foodstuff which is injurious to human life or health the punishment shall be imprisonment for a term not exceeding 3 (three) years, or with fine not exceeding Taka 2 (two) lacs, or with both.

• For deceiving buyers by false advertisement, the punishment shall be imprisonment for a term not exceeding 1 (one) year, or with fine not exceeding Taka 2 (two) lacs, or with both.

• For selling any date expired goods, the punishment shall be imprisonment for a term not exceeding 1 (one) year, or with fine not exceeding Taka 50 (fifty) thousands, or with both. Mobile application-based food delivery service – There is no particular regulation yet to regulate the service of mobile application-based food delivery service from restaurants. However, they shall require to take a license from the licensing authority under the Ministry of Posts, Telecommunications and Information Technology as per the Mailing Operator and Courier Service Rules, 2013 as they fall under the definition of courier services as per the above Rule and Post Office Act, 1898. 

Trademark ------ In order to protect trademark and other IP related matters, after the registration of the entity, it can apply to the Department of Patents, Designs and Trademarks (DPDT) for registering its trademarks and/or any other Intellectual Property. An applicant has to file application for the registration of a trademark to the Trademark Registry Wing of the DPDT.

An application for the registration of a trademark shall include the following- • the Mark /Logo • Name of the Applicant. • Full Address and nationality of the Applicant. • Status of the applicant i.e. Merchandisers / Manufacturers /Service Providers • Specification of Goods and Class. • User date of the mark (whether the mark is in use or proposed to be used in Bangladesh). • General/specific power of attorney may be required. • Application fee

Acceptance or Rejection of Trademark:

Once the application is made and the documents are verified and accepted by the Registrar, the same shall be provided to the journal publication to find out whether there is any objection against such mark. If there is an objection, the same shall be decided by the Registrar, based on the documents submitted by both the parties.  

However, if there is no opposition, DPDT will inform the applicant to pay certification fees and subsequently provide the registration certificate of the trade mark.  It usually takes 3 to 5 years to obtain the final trademark registration certificate. In the meantime, the entity can start using the mark. A registered trademark is valid for an initial period of seven (7) years from the date of filing and renewable thereafter for successive periods of Ten (10) years.

INTRODUCTION OF FMA AND ITS SERVICES

FM Associates, as a full service law firm, provides all types of legal and financial services with its experienced and skilled teams.

Entity registration and licenses: FM Associates provide the services for establishment of entities, i.e. sole proprietorship, partnership business and/or limited liability company, in Bangladesh, and obtaining the required licenses from the relevant government authority. The services include drafting relevant documents, forms and providing the required document list and procedure and subsequently file the application with the relevant documents to the relevant government office and liaising with them throughout the verification process and obtain the necessary certified documents.

Drafting, vetting agreement: The entities, as mentioned above, requires drafting of various types of agreements, eg, vendor, employment, franchises agreement, which are require to be drafted as per the applicable laws of the Bangladesh and at the safe time is requires to safe guard their interest in order to use these agreements for their favour in relation to any future disputes. 

Legal Opinion and/or due diligence report: FM Associates provides legal opinion to the clients, in relation to implication of laws and its impact in various matters which enables them to take informative business steps by considering the legal aspect.

Additionally, FM Associates also provides due diligence report to the interested clients for their entities which flags out all the legal requirements which are required to be followed and also non – compliances, if any, which needs to be fixed.  Litigation services: FM Associates has a very strong litigation team which assist and represent the clients to defend/file disputes at court or tribunals in relation to all types of litigation.  COVID-19 IMPACT ON BUSINESS

Breakout of COVID- 19 pandemic is wrecking the whole economy of Bangladesh; restaurants industry is not indifferent from this affect.    Border closures, restrictions of movement, closures of restaurants, community quarantines, and market, supply chain and trade disruptions have been significantly affected the restaurant business.

Usually, when reduced income and uncertainty make people spend less and result in shrinking demand. In the period of lockdown, the government asked the restaurant owners to follow the lockdown procedure for the safety of the restaurant employees as well as customers. All the restaurants are closed for any people gathering. However, some restaurants are providing delivery service of food in this time of emergency. Still customers are not feeling much safe of ordering food from restaurants in this situation.  Bengali New year celebration and Ramadan month are the two major seasonal business time for all the restaurants business. Bengali New Year has already passed without any celebration and due to lockdown, the restaurants stayed closed which hampered the restaurant business very much. In addition, the month of Ramadan already started, every year restaurants do huge business in this holy month. They offer different platters for iftar, seheri and some of the restaurants arranges cart to sell iftar items. Government allowed restaurants to sell their items, however, the restriction is still on dine in.  

The whole situation is affecting the income of mass people. People are already struggling to have regular food. The people who are still in a better position to afford the food from restaurants are cautious about the safety of their health and they are hardly having anything cooked at the kitchen of any restaurant.

Companies should get themselves prepared for the pandemic and circumstances where the outbreak brings an adverse impact on business generally and, more significantly, on the performance of commercial contracts. In particular, companies should consider whether they are entitled to invoke force majeure under the contracts, and thereby defer the performance of their contractual obligations without penalty.

A force majeure event is an extraordinary event or circumstance which is beyond the control of the contracting parties. These events include an act of God (like a natural calamity) or events such as a war, strike, riots etc. Generally, the parties get relieved from their respective contractual obligation and/or liability if a force majeure clause can be invoked successfully. A force majeure clause does allow a party's non-performance entirely, but only suspends it for the duration of the force majeure event. If properly drafted, the force majeure clause may provide that where a force majeure event continues for more than a stipulated period then either party may, at its own option, terminate the contract without any financial consequences to each other.

Its reliance is based primarily on the parties' agreement and the respective terms of the contract entered into between the contracting parties, since the doctrine of force majeure does not have any direct statutory basis under the laws of Bangladesh. 

All contracts are regulated by the Contract Act 1872 (the "Act of 1872") which are governed by Bangladeshi law. The doctrine of frustration is enshrined in Section 56 of the Act of 1872 which provides that a contract becomes void when it becomes impossible to perform or, by reason of some event, it becomes unlawful after it was entered into. Therefore, if the contract becomes impossible to perform for reason of Corona, it shall be treated as void under the laws of Bangladesh, provided that the defaulting party did not know, or with reasonable diligence, could not have known that the contract would be so frustrated. In simple terms, the effect of a void contract is that it cannot be enforced by law and the parties are relieved from their respective obligations. It is intermittent that, to attract the doctrine of frustration, the performance of the contract must become absolutely impossible due to the happening of some unforeseen event such as Corona Virus pandemic.

It can be summarized that in the absence of an appropriately worded force majeure clause in a contract, the parties in Bangladesh may have the option of relying on the existing provisions of Bangladeshi law -  particularly, Section 56 of the Act of 1872 - in order to excuse itself from the timely performance of their respective obligations under the contract.

Furthermore, government of Bangladesh has announced package of BDT 50000 million to revive the economy from recession which may follow due to the effect of pandemic. The business entities are hopeful that if this sector provide its fair share from the above package, then this sector can provide a boost to the local economy and play its part in overcoming the recession.

Taxation General rate of tax is 32.5% currently in the laws of Bangladesh. Nominal requirements for a limited company formed locally includes a number of reporting to be done to NBR, such as: Opening a TIN, Monthly Tax deduction statement, Half Yearly Withholding Tax statement, Yearly statement related to tax return submission of its employees, Yearly statement related to salary disbursed from company to its employees, Quarterly Advance tax deposition, Yearly Tax return submission, attending appeal/hearing session as required on behalf of the company, Monthly VAT return etc. FMA can advise and assist to satisfy all regulatory compliances to enable the company to run smooth and hassle free.  

CONCLUSION Bangladeshi restaurant industry is getting huge day be day. The business is getting more competitive and everyone is coming up with new ideas to stay in this industry. The customers demand is still on the rise; however, the demand is not exhausted yet. The market needs more investors to meet this increased demand.

EXECUTIVE SUMMARY The Restaurant market in Bangladesh has a huge potential as the demand of the local market is continuously growing. The continuous urge to experiment with different cuisines increasing the demand of restaurants.  

To become a part of this Restaurant industry there are various options of entities, Sole Proprietorship, Partnership Business and Private Limited Company are available for investors. To create a business-friendly environment, BIDA has now open up a one stop services center for investors where all the services from incorporation of entities to post incorporation licenses are available. 

FM Associates as a full-service law firm provides all sort of legal and financial assistance starting from registering entities to obtaining required licenses; drafting agreements and notices to providing annual compliances and litigation services. FM Associates is enriched with experienced Barristers and Advocates who have expertise in different legal sectors which enables to provide the required services with high standard and the clients can obtain all the essential and ancillary legal services under one umbrella.  

Corona Virus Pandemic has hit this industry to the maximum due to lockdown imitative taken by the government before the festive occasion of Eid and Ramadan (i.e. the two pick period of restaurant business in Bangladesh). Due to continuing lockdown all the restaurants are closed to ensure the safety of their employees and customers and as a result business as whole is severely hampered. However, government announced recently restaurants can sell and delivery foods following required safety measure and online food services are operating on full swing. 

Nonetheless, it is expected that, as the epidemic starts to decline, business shall resume and find its steady growth in a short period of time.

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Fast Food Business Plan Template

Over the past 20+ years, we have helped over 7,000 entrepreneurs and business owners create business plans to start and grow their fast foods.

Below are links to each section of your fast food business plan template:

Next Section: Executive Summary >

Fast Food Business Plan FAQs

What is the easiest way to complete my fast food business plan.

Growthink's Ultimate Fast Food Business Plan Template allows you to quickly and easily complete your Fast Food Restaurant Business Plan.

Where Can I Download a Fast Food Business Plan PDF?

You can download our fast food restaurant business plan pdf here.  This is a business plan template you can use in PDF format.

What Is a Fast Food Business Plan?

A business plan provides a snapshot of your fast food restaurant as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why Do You Need a Business Plan?

If you’re looking to start a fast food restaurant or grow your existing one you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your fast food restaurant in order to improve your chances of success. Your fast food business plan is a living document that should be updated annually as your business grows and changes.

What Are the Sources of Funding for a Fast Food Restaurant Business Plan?

Fast Food restaurants are usually funded through small business loans, personal savings, credit card financing and/or angel investors.

This is true for a traditional fast food restaurant, a quick service restaurant and a takeout restaurant business plan.

FAST FOOD BUSINESS PLAN OUTLINE

  • Fast Food Business Plan Home
  • 1. Executive Summary
  • 2. Company Overview
  • 3. Industry Analysis
  • 4. Customer Analysis
  • 5. Competitive Analysis
  • 6. Marketing Plan
  • 7. Operations Plan
  • 8. Management Team
  • 9. Financial Plan
  • 10. Appendix
  • Fast Food Business Plan Summary

Start Your Fast Food Plan Here

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Restaurant business plan in Bangladesh

Restaurant Business Plan and Process in Bangladesh

In this post we gonna say about Restaurant business plan in Bangladesh like an assignment for you. You will be able to know whole concept for starting a restaurant business here.

Table of Contents

Restaurant business plan in Bangladesh

The dream of establishing a restaurant business among most young entrepreneurs often revolves around. For this reason, many are highly educated and are not looking for a job but are setting a goal towards business. Restaurant business is one of the most lucrative businesses nowadays. Many start their own hobby business again. Their main goal is to establish a business for whatever reason.

Therefore, considering the needs of the people, many people open restaurants. But the customer does not get the desired amount. There are a few things you need to keep in mind before starting a restaurant business that can benefit you.

Environmental Verification

The most important thing before starting any business is precise planning. Study the environment of the place where you want to have a restaurant. The environment is the geographical location, how fast you can expand the business, the number of your competitors, the business plan of the competitors, they did not bring any issues into the business but very important.

The success of a business depends on its geography and environment. You should first do market research and choose a good place. The perfect place depends on the communication system, the target customer, the financial status of the customers, their tastes, needs and abilities.

Talking to other traders

With other small traders get ideas about buyers, status of buyers, their trading methods, targeted buyers, raw materials. If necessary, talk about their various problems and challenges and find out how they overcome these challenges.

Market Analysis

Decide on your target buyer and what kind of food people prefer. Analyze the type of food they eat, such as what they don’t eat at regular restaurants. Put in your menu the type of food that most customers prefer. Keep a special item that is very tasty and seems to be a favorite of the customers.

Fix a specific niche

Such as Chinese food, Italian pasta, fresh seafood, if there is a variety of nice, it confuses the customers. That’s what this restaurant is actually favorite or famous for. To do this, focus on a specific niche. Check the geography of the place where you are going to start a business. There are rich, middle class and poor people living there. Which they prefer is fast food or ordinary food.

What kind of people are more likely to come – professional, student, tourist or foreigner. People have different choices in one profession. Those who bring professionals and family must give more importance to food quality. You have to think about what kind of restaurant you want to have. There are different types of restaurants such as fast food, mid scale restaurant, upscale restaurant etc. Choose a perfect restaurant for you considering the geographical location, environment, market, customer etc.

Concept Analysis

You must do a concept analysis before starting a business. That means your restaurant must have a clear vision. Customers need to be clear about what kind of food your restaurant offers and what kind of food it offers.

As your grandmother likes chicken fried, you must have a traditional food concept. If you offer Italian food then there will be no customer. Decide based on location, always offer fresh and fresh fish if your restaurant is by the river or by the sea.

Every business needs some capital to start up first. Create a potential budget for how much you can spend. Budget depends on location, business scale, property, equipment, etc. You start small and select a few menus to increase your reputation and gradually expand your business. You start with some delicious food and drink first.

Restaurant business promotes and spreads based on food quality. So always maintain food quality. Analyze the average salary of customers. This will help you to create the right business plus. The first six months attracted customers with partial profits.

Creating a business plan

To make a business successful, you need to create a beautiful business plan. Many successful entrepreneurs and entrepreneurs around the world place a high value on business planning. A business plan is the outline of doing business. Business Plus highlights some aspects in particular. E.g.-

Business identity or restaurant identity, food items, location, your short and long term goals. Gives ideas about all kinds of costs. Cost of lease, salary of employees, furniture, equipment etc. Take a specific marketing strategy and take different types of strategies to attract your target customers.

Make a list of your competitors and work with them on appropriate strategies and market and business policies for how to survive in the market. Create a Customer Friendly Menu Make a list of what special foods you will be serving. You must determine the price of the menu considering the cost.

To make the outlook and interior of a restaurant much more attractive, you need to create beautiful designs. Customers can be easily retained by combining beautiful designs with good food. Moreover people go to a restaurant only to eat but no, everyone wants an elegant and beautiful environment where some time can be spent.

Keeping the space open: People always prefer places where there is adequate light and air. So when designing a restaurant site, determine where the light and air will be needed for the customers.

Suppose you are creating a business plan. Now all you need is funding. You need millions of rupees to build a restaurant. Where to get money now – you can start from your own fund. You can choose any business partner.

You can raise funds from him by sharing your business plan with him or enter into a partnership agreement with him. In this case, you must keep the documents of the partnership agreement. You can take a loan from a bank.

Food Security

The quality and type of food should always be maintained. Special care should be taken to avoid stale, rotten food. Foods that can cause controversy with customers over food quality cannot be served. Food quality and cooking quality should be of good quality. That’s why you can have a good quality cook. Because, no matter how good the cooking utensils, if the cooking is not delicious, there will be no customer. So this issue has to be taken care of.

Customer Satisfaction

At present, customers are a bit skeptical about food cooking and environment. There is a dilemma as to where the cooking is taking place and whether the food is being prepared in a healthy environment. So customers will be more satisfied if you show your cooking and dining environment. Therefore, if the overall image of the restaurant is captured by the CCTV camera, more customers will be found.

Parking facilities

Restaurants must have parking facilities. Many customers will come who will bring the car so parking facility has to be provided for the customers. With good parking facilities, customers will be able to park their cars, resulting in increased sales. Type, your restaurant has good food environment but no parking facility, in this case if someone brings a car then your restaurant will not be able to eat. Because your restaurant has no parking facilities. Thus, there must be restaurant parking facilities at the present time.

Product Review

Nowadays people look at what kind of food is offered wherever they go to eat. You need more than luck to succeed in affiliate business. Moreover, if the review of a food is good, then other customers will also be attracted.

Many entrepreneurs are choosing this business keeping in mind the needs and preferences of the people. Moreover, people now want to spend more time outdoors, which has grown exponentially over the years. People from all walks of life want to spend time with their family and loved ones. That’s why they choose restaurants to spend time and enjoy food.

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An Overview of the Restaurant Industry in Bangladesh

The research was conducted by   Marufur Rahman Abir

The market size for the restaurant industry in Bangladesh has been growing for quite a few years now. It was not too long ago when there were very limited options and people would have a hard time to find a decent budget friendly place to socialize with others over some quality food. The days of despair are now over and there is ever growing love for the dining out culture.

There was a prominent gap in the restaurant industry which was explored and experimented with by only a handful number of restaurants . Over time, it has turned out to be one of the industries with the highest potential for high profit margins.

The   fast food scenario took off in the early years of this decade with the emergence of food carts in residential areas and city centres. The people in Dhaka was introduced to all the different types of cuisines. With new food carts popping up in almost all the corners of this busy city, people started to actually consider trying them out. These carts offered fast food at a highly competitive price in contrast to the fewer posh restaurants without compromising too much on quality.

Restaurant Industry in Bangladesh

Over the years, food-cart businesses like Takeout, Chillox or Madchef (popular local burger joints) became household names in the city. More and more restaurant businesses in Dhaka are opening up to cater to budget friendly customers, which in turn have seen a boom in the growth of these restaurants and cafes.

RESTAURANT TYPES IN BANGLADESH

There was once a time in Bangladesh, when if you wanted to go for something as simple as coffee, the number of specialist coffee places or a café was non-existent. Now, there is Crimson Cup, Second Cup Coffee and Gloria Jeans among numerous coffee places, and that too in Dhaka city.

With the entire world becoming smaller day by day and with state-of-the-art communication and technology, thanks to globalisation, a large proportion of the population seeks a lifestyle where they are able to eat foods, which maybe are sought out by their favourite food blogger on YouTube.

Today there’s popular cafes in Dhaka like the ones mentioned above where a group of friends can sit around and gossip as they take a sip on their caramel lattes. With a large part of this population belonging to the middle-income group, casual dining and family style restaurants are also on the rise. Ethnic restaurants selling different cuisines like Lebanese, Japanese and Indian are also gaining popularity amongst people.

It is safe to say that Bangladesh currently has almost all the types of restaurant – from small sized fast food to premium exotic dining, nothing is excluded.

POPULAR FOOD ITEMS THAT WE PREFER

With over 50% of the population in this country being under 25 years of age, fast food is what majority of us prefer when eating out. Also considering the fact that a large proportion of the population is also working population who are always on the run and often struggle to get proper meals throughout the day and thereby reliance on fast food is increasing. Pizzas, pastas, burgers, hot dogs and coffee are some of the favourite. A large part of the market segment also demand for cheap, filling and tasty food in a crisp environment and thereby restaurants today are offering plenty of buy one get one offers, discounts on payments, and so much more. Food platter or set menu has a high number of loyal customers too; and you can’t forget about the local champions – biriyani, kacchi, and grill with naan. A large group of young people also experiment for all new kinds of food and they have special preference for exotic and rare foods. Sushi, seafood, and steak have an increasing demand as well.

CURRENT STATUS OF RESTAURANT BUSINESS IN BD

One of the integral reasons behind the increasing number of restaurants in Bangladesh is that it’s deemed to be quite profitable. Bangladesh today is known as the tiger economy in Asia due to the high economic growth rate. Along with high economic growth and developments in the country the living standard and disposable income for people is on the rise. When we go to a restaurant, it’s not only because of the food but rather a bunch of other variables come into play before we actually make a decision.

We visit restaurants to spend quality time, for the good quality food, the hygienic condition and the whole dining experience matters to the modern-day consumer. As a result, people do not mind paying a little extra for the value-added services that a good restaurant provides. Restaurants with good interior designing and premium quality food are at a competitive advantage and the high prices they charge is thereby justified.

However, starting a new restaurant here in Bangladesh can be a costly venture. Quite a lump sum amount of initial capital expenditure is required to get things started. Starting with the rent of the location, the interior designing, raw materials, hiring employees and so much more. Also provided that the food quality monitoring authorities in Bangladesh has aggressively started to investigate into the food industry given the current condition of food contamination practices in our country. This is why restaurant owners have to be extra careful about hygienic conditions and ensure top notch quality to avoid paying hefty fines which adds up to business costs.

The dining-out culture is becoming increasingly popular for reasons like an increase in the income levels of the general population which led to a decline in the number of people who actually don’t carry home cooked food with them like they used to because we are becoming busier every day. Changing consumer tastes and preferences has also caused a lot of people to seek out foreign cuisines. Availability of decent quality food at affordable prices which is appealing to the students has also contributed to the growing popularity of restaurants. More to that, the ease of getting food has increased due to rise in food delivery services all over Bangladesh; uber eats, pathao food, and food panda are few great examples.

There is a major growth potential for the restaurant industry in Bangladesh. According to various data collected from social media groups concerning food reviews has shown that the market for restaurant business is growing exponentially!

A STATISTICAL REPORT ON THIS BUSINESS

Khurshid Irfan Chowdhury, executive director of Transcom beverages ltd, says that the fast food market is going to be huge within 2022, and they are expecting that the market value will worth 450 crores. More to that, he says, this industry will create huge employment opportunities in the future.

On the other hand, the whole restaurant market of Bangladesh has estimated at BDT 4500 crores in the last year and by 2021 the restaurant sector will contribute 2.1 percent of the country’s GDP by the recent report.

LOCAL AND MULTINATIONAL BRANDS IN BANGLADESH

Due to increasing market demand, the multinational brands understood the opportunities available for them in this country. One by one many major brands came to Bangladesh and they are statistically doing well. Few example can include Dominos, Burger King, Pizza hut, KFC, Cold Stone Creamery, Kenny Rogers Roasters, Baba Rafi, Nando’s, SBARRO, Mr.Manik and others.

The affluent class in Bangladesh travels abroad and has a fairly good idea about the food brands out there, and that creates a natural demand for those brands in local community. More to that, the globalization led by social media and movie industry is a huge factor that got the local people in acquaintance with these international brands.

LOCAL BRAND (BANGLADESHI BRANDS) IN FOREIGN MARKET

A great example of local brands in foreign market is Takeout lanka. The renowned burger joint “takeout” of Bangladesh has officially launched their outlet in Srilanka . There are no other significant example of local restaurant brands in foreign market at this moment. But we are hopeful that our beloved local brands will grow beyond the border of this country.

FUTURE OF RESTAURANT INDUSTRY IN BD

Bangladeshi restaurant market is getting saturated day by day. The businesses are getting more competitive and they are coming up with all new ideas in the market. But according to the statistics, the customer segment is still on the rise and demand is not exhausted yet. People are getting more busier, and they want to outsource food making to the specialist, hence it is safe to say that the market will expand a lot more in the upcoming years and there are great opportunities for those who want to get a piece of this business.

We Bangladeshi people love to eat; it can be rephrased that – people out there eat to live, and we live to eat. Eating out is a becoming a cultural integration of our country gradually. Maybe we cannot predict what the future exactly holds, but we do know that, the demand from the restaurants are still on the rise.

References https://thefinancialexpress.com.bd/others/eating-out-international-food-chains-operating-locally-1511273112 https://thefinancialexpress.com.bd/public/index.php/economy/bangladesh/hotel-and-restaurant-sector-set-to-post-higher-growth-1523184592 https://businessdaily24.com/bangladeshi-young-entrepreneurs-should-invest-food-industry/ https://www.bproperty.com/blog/rise-food-service-industry-bangladesh/ FBG 1 – https://www.facebook.com/groups/foodbankbd/ FBG 2 – https://www.facebook.com/groups/foodbloggersbd/learning_content/ https://en.wikipedia.org/wiki/Food_industry_in_Bangladesh

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Fast Food Restaurant Business Plan PDF Example

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  • February 23, 2024
  • Business Plan

The business plan template for a fast food restaurant

Creating a comprehensive business plan is crucial for launching and running a successful fast food restaurant. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your fast food restaurant’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a fast food restaurant business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the food and beverage industry, this guide, complete with a business plan example, lays the groundwork for turning your fast food restaurant concept into reality. Let’s dive in!

Our fast food restaurant business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the restaurant’s operations, marketing strategy, market environment, competitors, management team, and financial forecasts.

  • Executive Summary: Offers a snapshot of your fast food restaurant’s business idea, market study, team, and money plan.
  • Restaurant & Location: Talks about the restaurant’s look, features, and why the spot is good for customers.
  • Menu & Pricing: Shows what food your place serves and how much it costs.
  • Key Stats: Tells about how big the market is, how it’s growing, and important numbers for fast food.
  • Key Trends: Points out new changes in fast food, like healthier options or tech for ordering.
  • Key Competitors: Look at the main other fast food places and how your restaurant is different.
  • SWOT: Lists your restaurant’s strengths, weaknesses, chances, and risks.
  • Marketing Plan: Plans for how to get and keep customers.
  • Timeline: Important steps and goals from starting to the first year.
  • Management: Gives information on who runs the restaurant and their jobs.
  • Financial Plan: Shows how your restaurant might do money-wise over 5 years, including sales, profit, and costs.

The business plan template for a fast food restaurant

Fast Food Restaurant Business Plan

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces the business plan for your fast food restaurant , providing a concise overview of your establishment and its offerings. It should highlight your market positioning, the variety of fast food items and services you provide, its location, size, and a summary of daily operations.

This section should also delve into how your fast food restaurant will fit into the local market, including the number of direct competitors in the vicinity, identifying who they are, along with your restaurant’s unique selling points that set it apart from these competitors.

Moreover, it should include information about the management and co-founding team, outlining their roles and contributions to the restaurant’s success. Additionally, a synopsis of your financial projections, including revenue and profits for the next five years, should be included here to give a clear overview of your restaurant’s financial strategy.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Fast Food Restaurant Business Plan executive summary1

Dive deeper into Executive Summary

Business Overview

For a Fast Food Restaurant, the Business Overview section can be effectively divided into 2 main categories:

Restaurant & Location

Provide a detailed description of the restaurant’s physical environment, focusing on its design, ambiance, and welcoming atmosphere that appeals to customers. Mention the restaurant’s location, emphasizing its accessibility and convenience for customers, such as proximity to busy shopping areas or availability of parking. Explain why this location is particularly beneficial in attracting your target customer base.

Menu & Pricing

Describe the variety of fast food items and beverages offered, ranging from classic favorites to unique specialties that differentiate your restaurant from competitors. Detail your pricing strategy, ensuring it aligns with the quality of food served and appeals to the market segment you are targeting. Highlight any special deals, combo offers, or loyalty programs that add value for customers, promoting frequent visits and customer loyalty.

Make sure to cover here _ Restaurant & Location _ Menu & Pricing

Business Plan_Fast Food RESTAURANT

Market Overview

Industry size & growth.

In the Market Overview of your fast food restaurant business plan, start by looking at how big the fast food industry is and how much it could grow. This helps you see how much room there is in the market and where you might grow.

Key Market Trends

Talk about what’s new in the fast food world, like how people want different and healthy options, meals they can get quickly, and new kinds of food. Mention how people are looking for good food that fits their busy lives and how they like to try new flavors from different places.

Key Competitors

Look at who else is selling fast food, from big chains to local places. Talk about what makes your restaurant stand out, like special menu items, great prices, or a fun place to eat. This part helps show why people would choose your restaurant and how you fit into the busy fast food world.

Make sure to cover here _ Industry size & growth _ Key market trends _ Key competitors

Fast Food Restaurant Business Plan market overview1

Dive deeper into Key competitors

First, do a SWOT analysis for your fast food restaurant . Talk about Strengths (like a great menu and quick service), Weaknesses (like lots of competition or high costs), Opportunities (like more people wanting fast, tasty food), and Threats (like changes in what people want to eat or less money to spend on eating out).

Marketing Plan

Next, make a marketing plan that shows how you’ll get and keep customers. You can use ads, special deals, fun posts on social media, and events in the community.

Lastly, make a clear timeline with important steps for starting your restaurant, getting the word out, getting more customers, and growing your business. This helps you stay on track and focused.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Fast Food Restaurant Business Plan Strategy

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the fast food restaurant’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the fast food restaurant towards its financial and operational goals.

For your fast food restaurant business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Fast Food Restaurant Business Plan management

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your fast food restaurant’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your fast food restaurant business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Fast Food Restaurant Business Plan financial plan

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A business plan for establishing a Bangladeshi restaurant in Helsinki

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  1. Business plan on new fast food resturant

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  7. Restaurant Business Plan and Process in Bangladesh

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  8. An Overview of the Restaurant Industry in Bangladesh

    More to that, he says, this industry will create huge employment opportunities in the future. On the other hand, the whole restaurant market of Bangladesh has estimated at BDT 4500 crores in the last year and by 2021 the restaurant sector will contribute 2.1 percent of the country's GDP by the recent report.

  9. Eat Well Business Plan

    Financial Plan. 7.1 Start-up Funding Currently, the company is owned by the original 5 founders, who each will contribute tk.20,00,000 for the same amount of share, 20%. This will cover start-up requirements, and provide the business with a cash cushion to use for expansion over the first three years.

  10. A Strategic Business Plan to Launch a Fast Food Restaurant ...

    Fast Food Restaurant Business Plan - Free download as PDF File (.pdf), Text File (.txt) or read online for free. hi

  11. Restaurant Business Plan PDF Example

    Whether you're an experienced entrepreneur or new to the food and beverage industry, this guide, complete with a business plan example, lays the groundwork for turning your restaurant concept into reality. Let's dive in! The Plan. Our restaurant business plan is structured to cover all essential aspects needed for a comprehensive strategy.

  12. Fast Food Restaurant Business Plan PDF Example

    Our fast food restaurant business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the restaurant's operations, marketing strategy, market environment, competitors, management team, and financial forecasts. The Executive Summary introduces the business plan for your fast food restaurant ...

  13. Fast Food Business Plan In Bangladeshi

    Hangout is a local fast food restaurant in Bangladesh started in 2015. It started for offering healthier. fresh. Custom made burger. sandwich and other food which offered other local fast food chain…

  14. Fast Food Restaurant Business Plan

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  15. (PDF) A business plan for establishing a Bangladeshi restaurant in

    11 3 BUSINESS PLAN FOR RESTAURANT 3.1 Executive summary The executive summary is the thesis statement of a business plan. ... Netura, Client, Kristian Polso, Tuunix, Less. Most of the Finnish companies ask 1200- 5000 Euro for designing a basic restaurant website. Whereas Bangladesh based web designers asks much less than the Finnish web ...

  16. (PDF) Business plan on new fast food resturant

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  18. Cafe Bangla

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  19. Samosa Singh: the fast food of India

    In 2009, the top fast-food restaurant chains spent the majority (59%) of their marketing dollars to acquire toys, games, puzzles, or other premiums (see definition) to distribute with children's ...

  20. THE BEST 10 Fast Food Restaurants in SANTA CLARA, CA

    Top 10 Best Fast Food Near Santa Clara, California. 1. Jack in the Box. "Food is on par with other fast food joints, but this place has a huge selection of what you can get." more. 2. Jack in the Box. "This is a solid fast food spot. I know they deal with a lot of drunken riff raff." more. 3.

  21. (PDF) Business plan on new fast food resturant

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  22. Fast Food Restaurant Business Plan In Bangladesh Pdf

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  23. THE BEST Fast Food in Santa Clara (Updated 2024)

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  24. The Best 10 Fast Food Restaurants near 5450 Great America Pkwy ...

    Best Fast Food in 5450 Great America Pkwy, Santa Clara, CA - Chick-fil-A, Taco Bell, In-N-Out Burger, Chick'n Cone Santa Clara, Jack in the Box, McDonald's, TOGO'S Sandwiches, Five Guys