Selecting the Fast Food Joint Location

Fast food is a name given to food which is prepared with preheated or precooked ingredients and served to customers in a packaged form for take-away or dine in. Many fast-food restaurants operate chains or franchise operations, where standardized foodstuff is shipped to each restaurant from a central location. There are also simpler fast-food outlets, such as stands or kiosks, which may or may not provide seating arrangements for customers. As capital requirements to start a fast food restaurant are relatively low, individually owned fast food restaurants have become popular and common throughout Pakistan. Market growth largely depends on demographics, urbanization, changing lifestyle patterns and demand for convenience. Thus all these variables determine the high potential of fast food restaurant business in Pakistan.

Running a Successful Fast Food Restaurant in Pakistan

Whether an entrepreneur is opening a one-of-a-kind no-frills fast food restaurant or trying to expand an existing fast food outlet into a multi-unit chain, there are winning principles that can improve the chances of success. Some key success factors are as follows:

  • Selecting the right location and layout
  • Hiring well experienced staff especially cooks and servers
  • Quality & Hygiene
  • Creating the right menu
  • Menu pricing
  • Operational food quality consistency
  • Knowing the competition

Selecting the Fast Food Joint Location

The business is envisaged to be established as a fast food takeaway/outlet, with limited seating capacity on rented premises/shop of around 500 sqft., near a densely populated area suitable for fast food. Major cities like Karachi, Hyderabad, Sukkur, Larkana, Multan, Lahore, Gujranwala, Faisalabad, Sialkot, Gujrat, Rawalpindi, Islamabad, Peshawar, Hub or Quetta etc. are suitable to establish the business.

Here are some factors to consider when deciding on a location to establish a fast food outlet in Pakistan:

  • Anticipated sales volume: Estimate the sales potential of a location.
  • Accessibility and visibility: Consider how easy it will be for customers to get to the outlet. If an entrepreneur is relying on strong pedestrian traffic, it should be considered whether or not nearby businesses will generate foot traffic.
  • The rent-paying capacity of the business: Sales-and-profit projections give a fair idea of how much revenue can be generated. This information can be used to decide how much rent can be paid.
  • Restrictive ordinances: Unusually restrictive ordinances can be encountered that make an otherwise strong site less than ideal.
  • Traffic density: Two factors are especially important in this analysis: total pedestrian traffic during business hours and the percentage of it that is likely to patronize the food service business.
  • Customer parking facilities: The site should provide convenient and adequate parking and easy access for customers.
  • Proximity to other businesses: Neighboring businesses may influence the fast food’s sales volume, and their presence can have both positive and negative implications.
  • History of the site: The recent history of each site under consideration should be ascertained before making a final selection.
  • Terms of the lease: All the details of the lease must be carefully read, as it is possible to encounter unacceptable lease terms for an otherwise excellent site.
  • Future development: The local Development Authority / Planning Board should be consulted to check if any development is planned for the future that could affect the business, such as bridges, underpasses or any construction restricting accessibility.

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