Case Study Of Choco Fozen Parlor
Section: 4 OPERATIONS
4.1 LOCATION
Location is one of the most important factors that contributes to and distinguishes the success of a business. The predominant factors taken into account in deciding on the location are:
• Upscale commercial business district
• High visibility location, near different restaurants and shopping malls
• Strong foot traffic counts, evening and weekend traffic
Choco Frozen Spoon will be located in the highly desirable area in North Nazimabad, Block D. The property is located in an excellent location within an easy drive for the customers living in North Nazimabad, Federal B. Area and even Gulshan-e-Iqbal and Gulistan-e-Johar.
The location is comprised of a population of 496194 within North Nazimabad district …show more content…
feet premises. The lease contract has an option of renewal for three years at a fixed rate that Choco Frozen Spoon will execute depending on the financial strength of its business.
SHOP NAME: MOHAMMADI RESTURANT
NAGINA SQUARE BLOCK D
HYDERI COMMERCIAL AREA
+92-21-36336998
As mentioned, the area of the rented space for the parlor is 400 sq ft. The monthly rent will be 65,000 (Negotiable) has to be paid to the owner of the premise.
This would be a major drain on the financial resources of the business. It would also raise fixed costs thus subjecting the business to a high level of risk. It will take approximately one and a half month to decorate the place for the parlor.
4.1.1: Advantage
FOOT TRAFFIC
One benefit is the availability of a significant amount of foot traffic. We can grab attention of the people passing by, by just putting an advertisement on our window. The large amount of foot traffic will offer us ready-made customer base that will decide to enter your store out of curiosity at first, but then eventually become longtime customers.
VENDOR …show more content…
Manufacturers that want to launch new products to a company that can create significant exposure will see our busy area as a prime location for such a promotion. The more we can get our vendors involved in utilizing the target audience available at our retail store, the more attention you create for our business.
VARIETY
A busy location offers a wide variety of potential customers. Cross sections of many different marketing demographics pass by our retail location every day and will give us the chance to offer a wider variety of products that can improve our profit margin.
4.1.2: Zoning 4.1.3: Taxes
There will be 10% service tax and 15% sales tax on the products present for sale. 30% tax will be charged on profit before tax.
4.1.4: Hours of Operation
The parlor will be kept open 7 days a week. The ice cream parlour timings will be from 11 a.m. till 11 p.m. The parlor will have to be kept closed on days of strikes. No consideration on festival days will be given and the parlor will operate throughout the year as more sales take place on such event.
4.1.5: Employees and Wage rates (Monthly):
LABOUR WAGES
Accounts Manager 20,000
Supervisor 30,000
Chef 15,000
Bus Person 6,000
Spare 8,000
Guard
4.1 LOCATION
Location is one of the most important factors that contributes to and distinguishes the success of a business. The predominant factors taken into account in deciding on the location are:
• Upscale commercial business district
• High visibility location, near different restaurants and shopping malls
• Strong foot traffic counts, evening and weekend traffic
Choco Frozen Spoon will be located in the highly desirable area in North Nazimabad, Block D. The property is located in an excellent location within an easy drive for the customers living in North Nazimabad, Federal B. Area and even Gulshan-e-Iqbal and Gulistan-e-Johar.
The location is comprised of a population of 496194 within North Nazimabad district …show more content…
feet premises. The lease contract has an option of renewal for three years at a fixed rate that Choco Frozen Spoon will execute depending on the financial strength of its business.
SHOP NAME: MOHAMMADI RESTURANT
NAGINA SQUARE BLOCK D
HYDERI COMMERCIAL AREA
+92-21-36336998
As mentioned, the area of the rented space for the parlor is 400 sq ft. The monthly rent will be 65,000 (Negotiable) has to be paid to the owner of the premise.
This would be a major drain on the financial resources of the business. It would also raise fixed costs thus subjecting the business to a high level of risk. It will take approximately one and a half month to decorate the place for the parlor.
4.1.1: Advantage
FOOT TRAFFIC
One benefit is the availability of a significant amount of foot traffic. We can grab attention of the people passing by, by just putting an advertisement on our window. The large amount of foot traffic will offer us ready-made customer base that will decide to enter your store out of curiosity at first, but then eventually become longtime customers.
VENDOR …show more content…
Manufacturers that want to launch new products to a company that can create significant exposure will see our busy area as a prime location for such a promotion. The more we can get our vendors involved in utilizing the target audience available at our retail store, the more attention you create for our business.
VARIETY
A busy location offers a wide variety of potential customers. Cross sections of many different marketing demographics pass by our retail location every day and will give us the chance to offer a wider variety of products that can improve our profit margin.
4.1.2: Zoning 4.1.3: Taxes
There will be 10% service tax and 15% sales tax on the products present for sale. 30% tax will be charged on profit before tax.
4.1.4: Hours of Operation
The parlor will be kept open 7 days a week. The ice cream parlour timings will be from 11 a.m. till 11 p.m. The parlor will have to be kept closed on days of strikes. No consideration on festival days will be given and the parlor will operate throughout the year as more sales take place on such event.
4.1.5: Employees and Wage rates (Monthly):
LABOUR WAGES
Accounts Manager 20,000
Supervisor 30,000
Chef 15,000
Bus Person 6,000
Spare 8,000
Guard