Wednesday, May 16, 2018

Quick service restaurant (QSR)

What is a QSR?

A fast food restaurant, also known as a quick service restaurant (QSR) within the industry, is a specific type of restaurant that serves fast food cuisine and has minimal table serviceThe food served in fast food restaurants is offered from a limited menu, cooked in bulk in advance and kept hot, finished and packaged to order, though seating may be provided.
Concept of fast food
¡  Economical food
¡  Products can be quickly cooked & held for a long time without deteriorating.
¡  Demand for both take away & dine-in is high.
¡  Precise portion control.

Steps to Open a Quick Service Restaurant
v  Choosing the Location
v  Staff Needed
v  Menu compilation and Menu engineering
v  Formation of SOP for buying raw materials
v  Operational viability
v  Buying of Kitchen Equipment
v  Purchasing of staff Uniform
v  Marketing
v  POS and Billing Software Needed
v  Counter and Branding the Face of the QSR
v  Other Things Needed to Open a QSR
v   Licenses Required

1.   1.Choosing the Location of the Quick Service Restaurant

 v  The location is the one the most important factors which determine the success or failure of any restaurant.
v  The takeaway should ideally be in a densely populated area, keeping the target audience in mind.
v   Accessibility and visibility of the area are also important to attract customers.
v   Ground floor shops, located at the front are preferred for QSRs and Takeaways..

2 . Staff needed for running a Quick Service Restaurant

v  In a takeaway kitchen, minimum of 5-6 employees is required in the kitchen.
v  Out of them, two chefs are required who have a knowledge of every department of the kitchen.
v  Prime staff requirement include – Manager – Service Counter & Kitchen , Server or Till operator , Production caller or Barker , Cooks of different designation , Utility Crew , Helpers , Delivery crew.
v  In today’s tech-time, there are a lot of third-party delivery   services with whom you can tie-up for a work on perorder basis.

3. Menu Compilation and Menu Engineering

¡  A good menu card is the first indication that the restaurant is determined to serve it’s customers quality food.
¡  Menu should be easy to understand.
¡  Beverage menu should be printed separately
¡  Menu should have a one line description after every dish.

4. Formation of SOP for buying Raw Materials

¡  Centralized procurement- Purchasing supplies from one trusted vendor helps in ensuring quality as well as consistency throughout the outlets.
¡  Proper receiving of supplies- Care must be taken to ensure that the supplies and the pre-cooked ingredients received are of good quality. Quality checks should be done at each stage.
¡  Stocking and inventory management- Once the supplies have been received at the outlet, they must be stored properly to avoid wastage. Use POS software that has an inbuilt stocking and inventory management feature.

5. Operational Viability
Expected no. of covers – 100
Expected turnover p/day – 3 times
Total expected covers to be sold – 300
Expected Avg.Per Cover – Rs 300/-
Expected Turnover p/day – Rs 90000/-
Total Turnover – Rs 27,00,000 /-
Expected Food cost – 40%
Thus Expected Material cost p/month – 40% of 27,00,000 = Rs 10,80,000/-

¡  Labour Cost – 10% of Total turnover =Rs 2,70,000/-
¡  Overhead Costs -  20% of turnover = Rs 5,40,000/-
¡  Total expected expenses p/month – 10,80,000+2,70,000+540000=Rs 18,10,000/-
¡  Expected Net Profit p/month = 27,00,000-18,10,000=Rs 8,90,000/-

6. Kitchen Equipment needed in a QSR
v  Kitchen equipment is a major expense for the restaurants and same is the case in a quick service restaurant.
v  A small working table for 4 sqft can cost somewhere around Rs 6-7k. But, it is not always necessary to have everything new in the kitchen; most of the kitchen equipment can be bought old and used.

Important Kitchen equipment to be bought are:
Deep fat fryers
Convection oven
High pressure steamer
Microwave oven
Hot plates
Automatic conveyorised grillers

Kitchen Equipment needed in a QSR
 Purchasing of Staff Uniform

v  Staff uniforms are a critical aspect of a restaurant venture that is often ignored. It is important that all the staff members look good, hygienic and well dressed.
 You can choose from different types of dresses such as chef coats, smart shirts and t-shirts, and apron. At the initial stage of operations, it’s ideal to have a low-cost uniform which will save the additional cost.

8. Marketing of the Quick Service Restaurant
v  The tried and tested method of marketing and also one of the cheapest, is the pamphlets.
v   You also need to spend some money on menu designing and logo designing, which should not cost more than Rs 2000.

9. POS and Billing Software Needed for the QSR
v  You can use any web-enabled device such as a computer, laptop, tablet or even your mobile to generate the bills. The cost for this should not exceed more than 25000.
v  This is the most important and integral part of a successful operation and management of any restaurant or food outlet. Choose a niche POS that is customized to suit the requirements of a Quick Service Restaurant

10. Counter and Branding the Face of the QSR
v  It would be best to procure the raw materials and design your own counter based on your need with a help of a carpenter. Go for a good standee and menu board at the front-end to give an overall feel of the brand. The counter and front-end will cost you somewhere around Rs 20-25k based on the design of the counter

11. Other things needed to open a QSR
A Takeaway and Home Delivery outlet require one landline and at least two mobile phones. You can get a Cloud Telephony subscription that forwards the call to another designated number in case the first number is busy. You can also record the call for training purposes. This should not cost you more than 10k.

12. Licenses required to run a QSR
¡  Food Health trade license
¡  License for eating house
¡  Fire security certificate
¡  Liquor/Bar license
¡  License for playing music & videos
¡  Insurance required
¡  Shop & establishment Act
¡  Signage license
¡  Environmental clearance

Famous quick service restaurants

Top Trends for 2018

The demand for takeaway and home delivery services has swelled over the  years across all formats and cities, driven by factors like increasing time  poverty, long travel times, increase in the number of working women and a  consequently greater dependence on prepared food, a younger population,  higher disposable incomes, increasing all-round efficiency of the delivery  business in India in terms of the order taking process, the packaging, the  delivery time, coverage, and value offers, and the growth of online channels.

Additionally, the ease of communication has spurred demand for takeaway and  delivery channels, and has in turn encouraged operators to trigger formats that  are purely focused on maximizing revenues earned through this channel, e.g.  Domino’s Pizza, Pizza Hut Delivery, etc. Food service operators are also  investing substantially in delivery infrastructure to facilitate higher efficiencies  and reduce transaction costs.

For example, McDonald’s, which only launched its home delivery service  (McDelivery) in India in 2004, also invested USD 0.55 million in 2007 to  strengthen this delivery channel and widen its reach across the Indian market.  Thus, the home delivery segment is evolving, with growth estimated in the  range of 30-40% over the next five years. Food service operators are trying their  hand at the home delivery format as an added revenue stream which, on  average, adds 10-20%. The potential of the delivery format has also gained  traction with the evident success of prominent pizza chains in India which have  derived 40-65% of their revenues from this format.

With the growth in computer literacy and access to smartphones and the  Internet, the home delivery business is all set to grow. Domino’s Pizza is  leading this change from the front; of its total reported revenue of INR 385  crore in third-quarter 2013, about 50% came from the delivery business. Again,  14% of the total delivery sales (~INR 27 crore) were made through online  channels, through both mobile apps and online ordering. Although the mobile  app business, started in 2012, only contributes about 10% of the online business

Impact of social media on QSR


We are immensely greatful for the help and guidance shown to us by Mr. Sarkar for the completion of this project report.

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