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Hungry business: Grabbing a slice of the growing pizza market

Market segment sees huge growth; untapped potential remains, say industry officials.

@ Hafiz Shah Ali, . Pizza Market in Pakistan: It is 2.5 billioin rupees in Karachi and 1.30 Billioin in Lahore. Islamabad is 70 crore while Pindi is 45 Crore. Faislabad and Sialkot are approximately 30 crore each.

For me, the worst Pizza that any restaurants offer is Pizza Hut. Try local rather than Pizza Hut. California Pizza is a good addition.

Pizza Point is also a good addition. Do check this out. Also offering home delivery themselves and through eatoye.

And it was 14th St Pizza that stirred up the second round of pizza revolution. The 20 inch pizza (available in full, half or slice) with the option for full customization to your exact taste buds. Kudos to you guys!

The demise of Pizza Next still saddens me, as it had better Pizzas as compared to PH, but people at that time preferred more PH just because it was a foreign brand (even though Pizza Next service, ambiance, quality, taste etc were at par with Pizza Hut).

In Rupee terms in Karachi how big is the Pizza market?.Any guess....

Wasn't Kings & Queens around much before Pizza Hut made its entry in 1993?

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pizza business plan in pakistan

How To Start Your Own Fast Food Business In Pakistan

  • April 21, 2022

Fast food is an industry that is growing at a tremendous pace in every part of the world. It promises to deliver food to customers at affordable prices with extra benefits like customer service, loyalty cards, etc. 

There are many variations being introduced in fast-food chains and restaurants nowadays. However, with rising competition in terms of factors like design, atmospherics, and ambiance, Pakistan is one such country that lives up to expectations for excelling in the fast-food business. But, there are many things to understand for starting a food brand in the country. The guide below gives a detailed overview of ‘how to start fast food business in Pakistan’. 

The Rapid Growth Of The Fast Food Industry In Pakistan

Growth In Fast Food Industry In Pakistan

A Bird’s-Eye View

The fast-food industry has grown at an impressive rate in Pakistan in the past few decades. People from different parts have shown a particular preference for Pakistani cuisine due to its variety and unique taste. 

However, the increase in fast food chains and Multinational Chains (MNCs) such as Pizza Hut, Burger King, Mcdonald’s, Subway, etc., have also contributed to the growth of this industry. But since these outlets are present worldwide, local competitors have made up to the level of these franchises to deliver similar food types at a much lower price. 

The most popular local fast-food restaurants are found in Pakistani cities like Kolachi, Mirage, Usmania, Kababjees, Bundu Khan, etc. These provide more specific and regional taste, which gives purity to the food. 

With the rapid increase in population, the growth is also visible in demand for fast food. The number of people employed in the food restaurant business is also remarkable, with more women getting jobs in the sector.

Another reason for this rise is consumer convenience. Various fast food outlets are structured in shopping malls, public transportation stops and stands, etc. These added utilities have provided competitive people to work better in a fast-paced environment. 

Popular Fast Food Choices

Different Fast Food Choices In Pakistan

It is vital for you to tap the existing and popular markets in the region. There are various pre-existing fast-food giants in Pakistan like Dominos, Burger King, Pizza Hut, and many others. 

Therefore, consumers have brand loyalty toward these big franchises. There are two options for you to start a fast-food startup in Pakistan. One is that you can offer the same kind of food these MNCs offer, like burgers, pizzas, rolls, etc. The other is that you can compete in an entirely different market by offering local cuisine, which can reap high rewards with additional risks.

Furthermore, you should understand the merits and demerits of both options before arriving at the final decision. However, the most popular fast food choices in the country can be summed up as follows:

  • Pizzas; which is dominated by fast-food giants and reputed local restaurants. The latter provides this cuisine as a part of their whole business. For example, they will provide whole meals, burgers, pizzas, etc., in one place. 
  • Burgers; which also work in the same manner as pizzas with powerful market players, including McDonald’s, Burger King, etc. 
  • Fried chicken and shawarmas; you can find small food counters or stalls selling chicken rolls in pita breads and fried chicken. 
  • Kebabs also hold an integral part in evening snacks for Pakistanis. There are many forms and variations of kebabs offered by some popular fast-food restaurants. These include – shami kebab, seekh kebab, chapli kebab , etc. 
  • Apart from these, AlooTikki, Pani puri, Dahi Bhalla, Dahi bhel, bhel puri, etc., are also some common food choices for an entrepreneur to start their business in. 

Preparation For Fast Food Business

Fast Food Business Preparation

After scanning through the market and the popular fast food preferences of the customers, it is crucial to follow a standard procedure for launching the fast-food business. You should also consider a target market for your offerings as it will help in providing special offers to specific classes. 

Food & Menu

The first and foremost thing to decide is the food item the food startup will offer. You should think from the customer’s perspective and derive their preferences. On the basis of the food, the top-level or management decides the menu. The menu should be broken down into different cuisine types like burgers, pizzas, etc. 

The decision for choosing a suitable food option involves researching the market, competitors, customer preferences, geographical location, demand, supply, and many such factors. 

Competitors

Competitors determine how a fast food restaurant will be set up in Pakistan. A proper competitor analysis will help sort out confusion and chaos in the minds of a business planner. Moreover, it will give direction as competitors are the primary benchmark setters. 

Customer Preferences

Detailed analysis and profiling of customers will help clear out which items to include and avoid. As they are the king and the ultimate revenue sources, it is important to prioritize them. Even if the trend for some particular fast food is rising in a particular location, it might not work well with the customers in your business area. 

Geographical Location

Understanding the customers in the setup area will determine the priorities of the fast-food restaurant and human resource management. For example, a pizza startup in the XYZ location might result in sales and revenue increment. In contrast, another branch of the same business dealing in pizzas might not work in the ABC location due to the different volume of target customers and their preferences. 

Demand & Supply

Market forces of demand and supply are the key to establishing a successful fast food business in Pakistan. Economic phases control these market forces. As a result, it increases the purchasing power of people for some specific fast food choices, while decreases for others. 

Evaluating Restaurant Size

Restaurant size is another factor to analyze and interpret for initiating a restaurant. It might seem an easy process to understand the total area of the business and allocate specific dimensions to departments within the restaurant. But, it requires systematic planning using different tools and techniques. 

The first thing is to get the measurement of the whole working space. It is crucial to utilize the entire space for the business purpose, directly or indirectly. Interior designers can be a good option for your business for understanding the restaurant size and minimizing the wastage of resources. 

A crucial aspect in determining the actual available restaurant size is to create a floor plan. Approximate measurements of the cash counter, dining area, cooking section, etc., can relieve you and your team from last-minute problems. 

Another thing to consider is the length, width, and height of the tables, chairs, and other fixtures. The ideal dimensions of a fast-food restaurant or startup are 11 to 14 square feet. Any addition to this size is a bonus for the business. 

A Nice Place

Suitable Location For Fast-Food Business

The location of a fast-food restaurant is the most significant factor that decides the profit-earning capacity of the fast-food restaurant. It is a basic saying that when the food or taste of the cuisine is excellent, it doesn’t matter where the fast-food chain is located. 

However, it does not hold true all the time. It creates a burden on the restaurant setter to set the food standards high. When expectations rise, the chances of under-delivery also increase. On the other hand, when the taste of the food you offer is average, people will consider other options like restaurants that offer the same item with better taste. 

Therefore, it is recommended to select a restaurant location that is feasible and easily reachable by the target customers. It should have all the essential facilities nearby. A prime location for a fast food business in Pakistan will cost a bit more, but ROI is also high at such locations. 

Moreover, the restaurant should be situated where there is decent nightlife. For example, a place that gets closed by 8 or 9 pm will not be the first option for food lovers as most people prefer to have pizza, burgers, and other fast foods late at night while hanging around. Following are some basic features of a successful fast food business location.

  • Decent parking mechanism
  • Located in a prime location or accessible location
  • Excellent visibility from different streets and roads
  • Set up where the target customers are found the most
  • Low crime rates and safe for women and children

Brand Name & Registration

The most neglected factor in a business is the brand name. Quite often, people do not research well while choosing a brand name for their startup. However, a brand name is one of the most initial things that captures a customer’s mind. 

Unique and attractive brand names are important for starting a food brand in Pakistan. A decent brand name backed with a tagline can be a perfect match for a successful fast food restro. Apart from the brand name, you should also look after the registration and legal requirements for setting up a fast-food business. 

The most common licenses for establishing the business are – 

  • Police Eating House license
  • Food licenses obtained from FSSAI
  • GST registration
  • Fire license
  • Local Municipal Corporation Health License

The license can be obtained by signing into the official website, i.e., E-license.kpfsa.gov.pk. After logging in, the applicant will be required to fill in their details. 

More To Consider

Ambience As A Factor To Consider

Apart from the essentials mentioned above, there are many other things that determine the success and preparation of a fast food business in Pakistan. The above things outline the basics of a restaurant. The following factors are one step ahead of designing and creating a full-fledged fast food business. 

In-Store Decoration

In-Store Decoration Of Restaurant

The atmosphere of any business plays a vital role in today’s competitive world. Atmospherics refer to the elements of the store that attracts the customers and makes them feel comfortable. These include visual and psychological elements. 

Initially, you should plan out the theme of the physical store outlet. You should consider the layout and brainstorm various ideas around the same. These could be different color palettes or combinations, patterns, designs, wallpapers, graphics, arrangement of chairs and tables, lighting, sound system, natural odor in the store, etc. 

The most important thing to understand while designing or decorating the restaurant is to remain competitive and modern. The designers should adapt to the trends, and incorporate elements that are in demand by the customers. The ambiance creates a difference between a good restaurant and a memorable restaurant. The simplest process to excel in store decoration is shown below. 

  • The first step is to consider and analyze the food prices, restaurant concept, location, and target customers. It is important to draft the budget for in-store decoration in this phase. It is up to you to hire a designer for the process. It also involves creating deadlines for various activities.
  • The decoration should be done in compliance with the systems and processes. The restaurant should be designed in such a way that it does not reduce the efficiency of the waiters or staff. There should be ample space left for movement. 
  • After allocating space for movement and designing a rough floor plan, the actual designing process comes into the picture. In this final stage, arrangement, color combinations, window styles, wall designs, overall theme, lighting, music style & system, graphics, furniture type, etc., are decided and executed. 

The ultimate aim of focussing on the design and decoration of the restaurant is to make customers sit for long hours and attain customer loyalty. The most highlighting importance of atmospherics is that it creates a unique identification of the business, not only through the food or cuisine but through the decoration. 

The human resource department holds more importance when it comes to the hospitality industry. They create a critical impression on the customers. The manners, behavior, and professionalism determine the response or reaction of the customers. 

When a staff greets the customers with impressive etiquette, it increases the chances of customers visiting the restaurant again in the future. Similarly, an ill-mannered staff will receive negative criticism, which will dwindle the restaurant’s profits and lose customer loyalty. 

Therefore, proper training is necessary to control what the waiters convey to the guests or customers. Even the slightest facial expressions can demean someone. Apart from the servants or waiters, there are many other people involved in the business, such as managers, cooks, servers, busboys, dishwashers, and cleaners. 

These indirectly affect the image of the restaurant. For example, chefs will determine the quality of the food; dishwashers will control the tangible cleanliness of the dishes, etc. These impact the preferences and perceptions of people toward the fast-food business. Along with you, the managers and higher authorities should clear out the duties and responsibilities of every staff member. 

Food Catering & Serving Containers

Fast Food Business Serving Options

One of the most vital components of any food business is to ensure the quality of the food. Due to rising infections and diseases, hygiene has become a crucial factor in attracting customers. Food catering should be done keeping in mind the correct procedure.

Responsible personnel should clean the kitchen counters regularly to avoid pungent or unpleasant smells. The quality inspectors should also check the containers in which the food is served. Even the raw material containers should be inspected before using them.

Any stain or mark on the plates, bowls, or cutlery can be seen as a loss of a loyal customer. You will not only lose a customer, but will also experience a dip in brand value or recognition. It is a good idea to use machines for cleaning dishes. However, this way will incur huge costs, but will be a profitable option in the long run indirectly. 

Food Delivery Service

Food Delivery Service

Serving food is the final step from the restaurant’s end of creating a long-lasting impression on customers. As mentioned earlier, the waiters come in direct contact with the customer. They hold the power to move customers positively. They can ask for water or more food whenever they sense an opportunity. 

Apart from serving food, they are also responsible for ensuring the safety of the people. For example, when a sizzler is served, they should warn or ask the guests to beware of the plate. They can give advice gently so that they do not hurt themselves. If they see a child or baby having a fork or knife in their hands, they can alert them. In such ways, a servant can make a good impression. 

In many cases, the fast food outlets operate in a self-service model. People are required to order their food and pick up their orders from the counter themselves. This works well when there are a massive number of pending orders. Fast food giants like Mcdonald’s work in this mode at specific locations due to the high volume of orders. Remember to use safe and green take out packaging, especially hot food like burgers .

Marketing & Advertisements

Pushing the restaurant to the customers is useful to enhance the business profitability in a short time. Marketing and advertising will help the startup to be easily visible to the public. If the budget is enough to create an effective marketing plan, you should go for hoardings, influencers, and pamphlets distribution. 

You can also spread positive word of mouth through the network of waiters, chefs, friends, relatives, and other sources. Influencer marketing is also an impactful option for promoting the food business through professional chefs and celebrities. 

More Tips For Opening A Fast Food Restaurant In Pakistan

Tips For Setting A Fast Food Restaurant

There are many hacks and tricks to excel in operating fast-food restaurants in Pakistan. The following points highlight some essential tips for opening a fast-food business. 

How To Hire The Right Employees

Hiring the right employees for the right kind of job is a big challenge for your business. Recruitment, selection, training, development, appraisal, compensation, etc., are critical areas in determining a successful human resource system. 

Labor is not an issue for a fast-food startup. The real problem is recruiting qualified personnel. In order to realize valuable employees, create a system for feedback and motivation. Moreover, research the competitor’s compensation model and decide on the employment rates. The most crucial staff members in this business are cooks, chefs, and servers/waiters. 

Cook & Chef

Initially, most fast-food restaurants require three or four cooks. Among these, one should be the leader under whom the other chefs will work. Responsibilities can also be divided according to shifts like morning, afternoon, and evening. 

You can divide these responsibilities in terms of specialization; For instance, cooks can choose their specialization dishes like soups, bread, etc., and be allotted to one chef, while other delicacies can be designated to other chefs. This division can also be done according to rush hours. For example, all cooks will work during rush hours, while during non-peak hours, only one or two will work. 

As mentioned earlier, basic etiquettes and manners are a must for the servers. Training holds a crucial place while recruiting the waiters. Patience is another trait waiters should possess. They should be able to handle customer fury and problems. You should fix their working hours, giving them proper rest hours. 

How To Lower Budget

There are many ways of reducing the budget of a fast-food business. These are listed below.

  • The first way is to introduce only a few main food items on the menu. This will help reduce the costs by huge margins as the chefs will be required to work less. As a result, you will need lesser cooks. 
  • You can minimize the budget by compromising on the design of the store. You can replace a large music system with two medium or small-sized audio systems to cut costs. 
  • The quality of the furniture can also be compromised to reduce the budget of the startup. 
  • A small way to decrease the budget is to use alternatives to some costly ingredients. 

Environmentally-Friendly

Eco-Friendly Packaging

Nowadays, consumers have become more environmentally conscious about the products or services they use. It has given rise to sustainability awareness. Businesses have identified this as a key opportunity and introduced environment-friendliness as a significant brand booster. 

Therefore, the final stage in setting up a fast food business in Pakistan is to ensure you operate with minimal wastage of resources. You should involve techniques that do not affect the environment. Your business can use recyclable products in carrying out business activities. 

Another unique way to be eco-friendly is to serve food on environmentally-friendly plates or dishes. You should ideate regularly to think of such innovative solutions to be socially responsible. 

Key Takeaways

Pakistan has always been one of the most food-loving countries. There are many regions in the country where people consume fast food on a daily basis. It is not surprising that this industry is one of the top contributing sectors to the country’s economy. 

The above guide gives a complete understanding of the different ways and steps of starting a food business in Pakistan. The central component of any fast food business is market research. Therefore, it is important to research everything before launching into this startup line. 

As mentioned earlier, packaging can be the first impression booster for any fast food business. YoonPak is an established market player for getting the right packaging material and container for your business needs. You can contact us if you have any doubts or queries regarding our products and services. 

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pizza business plan in pakistan

Fast Food Business Strategies in Pakistan: A Case of Pizza 363

  • By: Muhammad Ali & Syed Ali Raza
  • Publisher: SAGE Publications: SAGE Business Cases Originals
  • Series: Food Marketing
  • Publication year: 2021
  • Online pub date: January 04, 2021
  • Discipline: Marketing (general) , Small Business/Entrepreneurship (general) , Marketing Strategy
  • DOI: https:// doi. org/10.4135/9781529752489
  • Contains: Teaching Notes Length: 3,150 words Region: Southern Asia Country: Pakistan Industry: Food and beverage service activities Type: Direct case info Organization: Pizza 363 Organization Size: Small info Online ISBN: 9781529752489 Copyright: © Muhammad Ali and Syed Ali Raza 2021 More information Less information

Teaching Notes

Pizza 363 is a newly launched pizza business in the local fast food industry of Pakistan. Pizza 363 started their operations with an emphasis on high-quality pizza at affordable prices. Initially, the food business was started by the two partners to satisfy the customer needs in the pizza business in Pakistan. Both partners have strong customer service skills and sufficient knowledge of the local fast food industry. The owners of Pizza 363 believe that their pizza business will grow rapidly and become famous among the local population. Despite the challenges and problems faced at the start, the owners intend to open more Pizza 363 outlets across Pakistan.The owners must consider how to market and scale up their business for sustainability. Given existing issues and challenges in the local food industry, the owners wonder if they should also focus on other geographical locations of Pakistan to expand Pizza 363 operations and increase brand visibility among their target markets.

Learning Outcomes

In reading and discussing this case, students will be able to:

  • Understand the role of entrepreneurs in creating opportunities.
  • Assess the potential challenges in the fast food industry in Pakistan.
  • Propose sustainability strategies for a new fast food business in an expanding market.
  • Understand the marketing mix of a small-scale pizza business in the local market.

Introduction

Waqas Azeem and Naeem Siddiqui had often heard that there is an abundance of talent in the Pakistani youth and their experiences in business have proved it. They are young entrepreneurs who work together as business partners to promote a business environment in the country. Their passion to succeed in the food industry faced many challenges, a lot of hardships, societal difficulties and inconveniences, but they did not give up. The partners wanted to succeed and also create employment opportunities in Pakistan. To accomplish these goals, they started multiple food outlets in Karachi in the early 2010s. These included businesses offering Chinese cuisines, Thai dishes, and barbecue food items. Both young business partners have a long experience in the food business. Their other food outlets are running successfully thanks to quality food and affordable prices. Previously, they were engaged in schools, construction, and printing and publication businesses. After getting inspiration from emerging trends in the food industry in Pakistan, the partners added a pizza business in the year 2018.

Pizza 363 has gradually attained high demand among customers in the biggest city of Pakistan, Karachi, and has expanded to include nine locations. The flagship location and eight franchise branches sell pizza and provide dine-in and takeaway service to local customers. Pizza 363 is an ongoing project of the two partners, Waqas Azeem and Naeem Siddiqui, who must now find a way to scale up their start-up for sustainability. They hope that future expansion of their pizza business, which includes further franchising to access other geographical locations, will create prominent visibility of Pizza 363 and help the business penetrate local markets and gain sustainable advantages.

Pakistan’s Fast Food Industry

Food is one of the basic elements of life. In Pakistan, there is a saying: “Some people eat to live and some live to eat.” This love of food among the people of Pakistan is also shown by the variety of food dishes that proliferate among the population (Ali et al., 2019). The interest in food has translated into a growing fast food industry, currently considered the largest business in Pakistan, with an average consumer spending 42% of their total income on food (Memon, 2016). The trend toward fast food has been supported by several factors, including the rise of a young population who prefer fast food to home-cooked food. In Pakistan, socio-economic trends are influencing food preferences. For instance, shifts to urbanization and busier lifestyles, with an increasing trend of women participating in the workforce, have resulted in a rising demand for different food businesses catering to different population segments. More traditional home-based family meals and foods are often restricted to larger family occasions, with many people having less time for cooking daily meals at home. This implies that fast food has become more common, while home-cooked food is more of a luxury. In addition, many people look for food items at a reasonable or lower cost and restaurants often offer seasonal and occasional discounts on fast food items to attract customers.

Given this shift, the fast food business is playing a significantly increased role in the food market of Pakistan. It has also become a competitive industry. In recent years, Pakistan’s local food industry has attracted various global food chains, with several international and national fast food brands partnering with local owners in various cities to set up franchises. The franchises are offered to the local owners subject to international standards. For example, foreign owners take royalty commission and build a strategic relationship with the local owners. With this system, local owners buy a franchise and offer the brand’s products to local consumers to expand the brand’s business in Pakistan. For instance, Texas Chicken, Burger King, Domino’s Pizza, Dunkin Donuts and other fast food brands have established outlets with local franchise owners in Pakistan. In addition, Crescent Star Foods, Pizza Hut, KFC, McDonalds, California Pizza, Pizza Point and many others are planning to locate more outlets in the market. Despite the local competition, this industry has created a successful food business environment for new entrants.

The Pizza Market in Pakistan

The food industry in Pakistan has witnessed a phenomenal growth in the past few years. The opening of local restaurants and arrival of international food brands has increased the appetite of the Pakistani population for fast food options. The growth of the fast food industry in Pakistan has been directly influenced by the influx of pizza outlets with affordable prices and quality offerings. This trend began in 1993 when Pizza Hut entered the food market in Pakistan. Since then, various local and foreign pizza brands have launched in the country. For instance, 14th Street Pizza, Pizza Point, Pizza Max, Pizza Crust and other pizza sellers have all launched and used common channels to position their brands. A common tactic is to capitalize on the concept of home delivery, which is also a growing trend in Pakistan, boosted by the popularity of large gatherings where most of the people are proffered a pizza meal, particularly when watching cricket or football matches. Most of the foreign brands follow their standard operating procedures (SOP) to serve pizza. Other brand positioning tactics have included using online platforms such as Food Panda, offering discounted vouchers on Bogo and Vouch365, and offering dine-in and takeaway in addition to home delivery. Recently, a pizza outlet started robotic waitress service to grab consumers’ attention.This innovation has increased the sale of pizza in that particular restaurant and encourages other competitors to expand their service innovation in the market.

Pizza 363 Mission and Vision Statement

Waqas Azeem and Naeem Siddiqui opened Pizza 363 in 2018, with a clear mission “to be the best in the pizza business, for our customers, employees and suppliers.” It is their vision to become “the leading quality and affordable pizza provider in the local fast food industry of Pakistan.” Although both partners are very clear about the mission and vision of their pizza business, they have not formalized a strategy for the future. The mission and vision strategy for Pizza 363 still needs a proper plan of execution. However, the local young entrepreneurs in Pakistan are keen to add more value to their pizza business and have begun by expanding to include nine locations in Karachi by franchising outlets. They have an eye to franchising more outlets and improving their human resources and their marketing efforts to continue growth and move toward sustainability.

Pizza 363 Human Resources

The Pizza 363 owners are currently in the development stage of creating a human resources (HR) department. At present, they are in the process of defining proper job roles for employees and putting their human resources policies in writing. As of 2020, the owners are solely responsible for the business expansion and development of Pizza 363. The franchise partners manage day-to-day branch operations and share limited profitability depending upon investment ratio. Additionally, the owners set SOPs for branch operations and other management procedures such as staffing, branch design, product launching, marketing, etc. The branch head usually manages the day-to-day operations and reports to the franchise owner. The cashier manages all cash receipts and pizza orders (dine-in, takeaway, and home delivery) and the chef is responsible for pizza making. The riders deliver the pizzas and provide support to other staff in their idle time. Janitorial staff perform overall branch cleaning, including mopping, dusting, and dishwashing. Figure 1 illustrates a general hierarchy in Pizza 363 outlets. Waqas Azeem and Naeem Siddiqui have intentions to further develop a human resources department that includes several key components to fuel the company’s growth and sustainability.

All text in the image is within rectangular boxes. Hierarchy is listed as follows:

Figure 1. Pizza 363 Organizational Structure

An image shows the hierarchy in Pizza 363 outlets.

Recruitment and Selection Strategy

Pizza 363 currently has no formal HR department responsible for recruitment and selection criteria. The owners hire employees on personal relationships and offer jobs to the skilled candidates. When someone applies for a job, the owners analyze the credentials and evaluate the candidate. However, they are planning for a proper HR department to provide employee benefits and training-related policies.

Employee Performance Evaluation

Given that there are no formal HR policies, there are no employee performance evaluation criteria for Pizza 363 locations. However, the owners closely monitor employee performance by observing them during working hours. The owners also monitor employee activities through camera recording and customer feedback. An employee’s behavior and service delivery are also monitored through customer feedback on social media. The owners take serious action against staff if negative feedback is provided on social media or at the outlet.Therefore, an employee gets better performance appraisal in terms of selling more pizza units and satisfactory customer services.

Employee Training

The owners of Pizza 363 provide training themselves to their employees at the outlet. For instance, chefs are taught to make pizzas according to the recipe and time assigned by the cashier. Similarly, a pizza delivery person is instructed to deliver pizza within the assigned time. The employees are also directed to update their knowledge and skills by exploring the market norms. This also helps the company and employees to get awareness about competitors. Additionally, Pizza 363 owners train their employees to be aware of all Pizza 363 products and use their interpersonal skills to increase sales.

Compensation

Pizza 363’s salary and benefits are reasonable and market competitive. Since the business has just started, the owners give maximum benefits to the employees in order to ensure employee retention. The employees earn a monthly salary and there are no daily wage employees.

Pizza 363 General Marketing Strategy

Pizza 363 has developed a marketing strategy to guide the company in growing among its target markets in the local fast food industry. In the start-up phase, the target population of Pizza 363 has been low- and middle-income class consumers. The income class includes youngsters, office workers, housewives and other people who intend to eat pizza not only on occasions but on a regular basis. At present, Pizza 363 operates in Karachi only and is focused on the target population of this metropolitan city. Low- and middle-income class customers are seen enjoying pizza in the Pizza 363 restaurants and also use the delivery and takeaway options. Through the order delivery service, it is evident that the high-income class areas of Karachi also demand Pizza 363 due to the product’s quality and affordability. The primary objective of Pizza 363 is to provide quality pizzas with a decent environment and quality service.

Product Strategy

Unlike other pizza outlets, Pizza 363 does not offer additional products in its food menu such as pasta, salad, sandwiches, soups, tea, coffee, and juices. Initially, the company decided to offer limited pizza flavors with carbonated drinks. Tables 1 and 2 summarize Pizza 363’s product range and price mix. Initially, the company started with limited pizza products; however, its future planning includes additional products such as pizza sandwiches, salads, and other offerings.

Most of the profit margin is associated with selling pizza, and thus the owners paid extra attention to only pizza products when formulating marketing strategies. The profit margin of Pizza 363 is very low compared to the profit margin of other pizza service providers in Pakistan. The reason for this low profit margin is to attract more customers and increase volume sales in future.

Price Strategy

The unique feature of Pizza 363 is its pizza price and quality. The company uses a fixed price strategy which means that each pizza price is PKR 363 (approx. USD 3) with a fixed size (large). The company name, “Pizza 363,” reflects its pizza price. This shows it initially focused on a penetration pricing strategy rather than skim and neutral pricing. The price strategy of Pizza 363 expects more customers to the brand due to a high quality with low price. Additionally, the other operational costs (electricity, etc.) in Pakistan, particularly in summer, directly influence the fast food business. Therefore, the profit margin for Pizza 363 differs according to the season.Pizza 363 did not initially offer any discounted price to customers due to high operational costs and the already low price, although that strategy may evolve with the business offerings.

Place Strategy

Pizza 363 started its business in the low- and middle-class areas of Karachi. In 2020 there are eight outlets of Pizza 363 in various locations in Karachi. The outlets are located close to places frequented by the target population to catch and attract customers from nearby shopping malls and superstores. The restaurants’ targeted locations are supported by signage around the outlets to attract more customers. The Pizza 363 sign clearly explains the concept of the restaurant and is large enough to read conveniently. In Karachi, the parking areas around restaurants had always been a major problem and may change a customer’s mind to find an alternative restaurant where parking is available. Customers who come to Pizza 363 usually find somewhere to park because of proper roadside parking spaces around the outlets. Traffic jams are also a major issue at restaurant locations, mostly in the evening when people go home from their offices. Overall, the placement strategy helps the company’s premium positioning in the minds of its customers. The owners have a vision to draw on that premium positioning strategy to open Pizza 363 outlets in other major cities of Pakistan.

Promotion Strategy

Pizza 363 offers pizzas at a low price and there is no discounting promotional strategy. The owners planned to allocate some budget for promotion and marketing to their loyal customers. But as of 2019, the idea had not yet been implemented. They mostly market their product by location, signage, and personal relationships and efforts. For example, management staff directly engage with customers to understand their satisfaction levels and preferences. The staff mostly focus on questions such as “How is the quality of pizza?” “Would you like to taste again our pizza?” “How was the overall service quality?” As such, there are no above-the-line or below-the-line activities performed to build the brand equity of Pizza 363.

In addition, Pizza 363 uses social media to market its products. It uses the official Pizza 363 Facebook page to promote new products and allow customers to share their feedback through check-ins and comments about the company. Similarly, Pizza 363 also uses a webpage to give information about its services and offer order placement. These efforts are basic, with room for more strategies to promote Pizza 363’s products and services.

Planning for the Future

Pizza 363 has faced certain challenges to its sustainability, including developing a team and quality product offering with limited resources and an emerging business model that aims to meet the needs of customers in a competitive market. Particular challenges have included the use of electricity and natural gas for cooking, which creates energy costs and other environmental issues. In addition, pizza is considered as a perishable food item which requires careful handling from making to delivery, and the company must find a way to ensure fresh ingredients and a healthy environment for pizza making. Ensuring the health of workers inside the kitchen is another challenge. Additionally, price competition and service delivery in the food business in Pakistan has created a challenging environment for Pizza 363 in the fast food industry.

Given the trends in the pizza industry, the entrepreneurs are planning to add product lines to the core pizza offerings at Pizza 363. They are also planning to enhance the scale of business by engaging local owners to further franchise their company. They are considering retaining their initial store as a corporate owned store and then having franchisees open their own stores in other large Pakistani cities. The franchises would follow the Pizza 363 brand and business model, with a standardized human resources training program and other key quality control measures.

Although they have a vision for the future and several strategic relationships with franchisees in Karachi, the Pizza 363 owners still need to develop a strategy and set benchmarks in order to scale up their start-up for sustainability. How will they continue their trend of success in the growing Pakistani fast food market?

Discussion Questions

  • 1. What factors influenced the start-up of Pizza 363? Should the entrepreneurs have considered other factors?
  • 2. Assess the dynamics of the fast food industry in Pakistan.
  • 3. What challenges does Pizza 363 face in its start-up phase?
  • 4. How might the prior experiences of Pizza 363’s owners help them succeed beyond the start-up phase?
  • 5. Explain the unique marketing mix for Pizza 363.
  • 6. What strategies should Pizza 363 follow to achieve its vision?

Further Reading

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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pizza business plan in pakistan

Pizza Hut Pakistan and the bid to become most-loved, fastest-growing brand

From night-time cocktail bars in the UK to robot waiters in China, the Pizza Hut brand is making its mark all around the world. The most iconic international pizza brand has become a household name for millions of people, and 2017 marks 25 years since arriving in Pakistan.

Now firmly established in the country, the past year in particular has heralded substantial growth and regeneration, with the year ahead showing no sign of losing that momentum. Enter Tony Ozanne, Chief Operating Officer (COO) at Pizza Hut Pakistan, owned by MCR Pvt. Ltd. and under the Yum! umbrella of food brands.

Tasked with making sure the company stays clear of increasing local competitors and continues to offer relevance and quality to customers, Ozanne’s remit can be condensed into the hashtag #mlfg – the global Pizza Hut ambition to become the most-loved, fastest growing food brand. Despite being able to build on 25 years of heritage, the Australian COO arrived with timely added urgency in January 2016.

“Pizza Hut has gone through two franchise terms and is the first international brand in Pakistan, so over the years it may have rested on its laurels a little,” he explains. “Competition has come to the market so we’re getting things up to speed. Our existing assets are a massive opportunity and Yum! has also tasked us with a fairly aggressive expansion plan regarding new stores as well. This has been my focus for the last 12-14 months, at the same time focussing on enhancing the operations and staff standards whilst building a culture of recognition.”

Seemingly destined for primary school teaching, Ozanne decided to pursue a career in the food industry instead, with another of Yum!’s brands the springboard to where he is today. “I started when I was 15 as a casual cook at KFC in Australia when I was going through school and university. I graduated as a primary teacher but never taught because I got offered an assistant manager job at KFC. I worked my way up with KFC and ended up in Dubai in 2002 working with Yum! This is where I first came into contact with Pizza Hut in the Pakistan market as I was working alongside the franchisor.”

Though acknowledging that there is much more to come from Pizza Hut in Pakistan, a 25-year birthday celebration is not to be taken lightly. Indeed, Ozanne outlines plans to make the most of the landmark anniversary.

“Our International President Milind Pant is coming over to mark the occasion,” he says, “and we’re also planning year-long activities such as special promotions and messaging. This is a great chance to celebrate our heritage and refresh interest in Pizza Hut at the same time.”

The year leading up to this point has witnessed some other important milestones. Not only is Pizza Hut the longest-standing international food brand in Pakistan, it is also the largest with 72 stores, 16 of which being new additions built in 2016. 

Such growth is set to continue this year. Ozanne reveals that 13 stores will be opened with another 11 refurbished, while 2018 will see another 14 new stores, taking the total up to 99. “We may sneak another one in there to hit the 100 mark,” he quips.

By the end of 2018, almost all of the company’s restaurant estate will either be new or refurbished, fitted with enhanced décor and modernised features for staff and customers. The size of stores is also shifting to meet modern consumer demand.

“Traditionally Pizza Hut has been a destination restaurant with massive assets sometimes two, three, even four storeys high, capable of seating hundreds of people,” says Ozanne. “But times have changed and now dining in is sitting alongside delivery and takeaway, so we’re reducing the size of new assets to accommodate this. We’re looking at anywhere from 40-80 seats as opposed to hundreds.”

New sizes, structures and operating models brings with it the opportunity to explore new concepts for sites as well. Ozanne refers to a ‘super delco’ which is a delivery and takeaway outlet that still has seating and table service, something which he pointed out as important to maintain. Indeed, there are only a very small number of delivery/takeaway only units, Karachi being the city where this has seen the most success.

Other concept ideas recently discussed with Yum! include motorway sites and units made from non-traditional materials such as shipping containers. Joint ventures with entertainment venues such as cinemas are also being considered. 

New places, new people

While the big cities such as Karachi, Lahore and Islamabad are important focal points where Pizza Hut is most established as a brand, it is the smaller cities that hold the most potential for growth. “These may be places with two or three million people but who have never seen an international food brand before,” Ozanne adds. “They will be familiar with pizza of course, but Pizza Hut will be totally new to them. This creates a set of new challenges from supply chain and logistics through to marketing and education of our brand.”

Around half of the 13 new store locations for 2017 have been decided. It is a challenging process which involves careful consideration of an array of factors, from supplier networks and energy supplies to footfall and scope of local competition.

One might believe that recruitment poses another challenge when opening a new store. However, for Pizza Hut in Pakistan, the opposite has been the case.

Ozanne explains: “The recruitment side isn’t actually a big challenge for us, and being part of a big group with Yum! is a big benefit in terms of training provision. If we put an ad out locally and say we are recruiting, there are lines down the street of people wanting to apply, so we have the luxury of being able to filter out the best candidates. We have international brand appeal, so getting people to join us is not an issue.”

The international brand appeal of Pizza Hut can in fact present a retention challenge in some instances, for ambitious local competitors may be willing to prize away employees. However, the development of new stores and resultant recruitment drives carries with it a positive message to the new communities Pizza Hut is arriving in. “We also hire a lot more staff per store here than we do in other locations such as Australia,” Ozanne adds. “We can have anywhere up to 20-30 people working in a store at any one time, with 15 riders waiting on deliveries.” 

Brand of choice

Asides expanding Pizza Hut’s physical presence, Ozanne is seeking to add more relevance to the brand and bring pizza to a larger number of Pakistani consumers.

One of the major ways of doing this, and something backed up by extensive consumer research, is developing a value offering that is more affordable to working locals.

“Other Quick Service Restaurants (QSR’s) have had a lot of success with this and it has opened up a new layer of customers with cheaper offerings,” Ozanne comments. “The challenge of price is one where we are constantly seeking to develop offerings of value, creating bundles and deals which focus on quality full meals for the family and allow us to compete more with the traditional QSR’s on a per head price basis.”

However, for Ozanne, the key to making this work for Pizza Hut is to successfully cater for local tastes. “We’re seeing how we can reinvigorate products to an entry level so we can get people sampling what we have to offer,” he continues, pointing out that almost 80 percent of pizza sales come from just four topping choices which all appeal to the localised palette: Chicken Fajita, Chicken Supreme, Chicken Tikka and Fajita Sicilian. Pizza Hut has hit a sweet spot with spicy chicken flavours in particular, unique to Pakistan’s restaurants and something which can be exploited further.

Another means of adding relevance to consumers and bringing more people in contact with the brand is through technology, particularly digital services. “Our online business is growing all the time and there are still opportunities for us to enhance the offering on the website,” says Ozanne. “Upwards of 10 percent of orders are now coming via the website and this trend is continuing to grow.” Pizza Hut Pakistan is also working on an iOS version of its app, having successfully released an Android version.

Technology behind the scenes can help improve the customer experience, too. Ozanne and his team will be looking at bringing systems up to date, for instance reporting and integration of manual processes. A specific area this could enhance is the processing of online orders, which is currently delivered manually through call centres rather than being automatically sent to the appropriate restaurant kitchen. Rollout of free Wi-Fi and even introduction of charging stations for devices are among other considerations.

This will all aid in the battle to compete with local competitors, especially the copycat challengers who adopt very similar concepts and appearances. With legal protection of copyright not the same as it is in other markets such as the UK, Pizza Hut has little choice but to differentiate itself through quality and appeals to its rich heritage.

“We have to take some of these local competitors seriously as some of them are growing quickly and are up to the 20s in terms of store count,” adds Ozanne. “Some of them have very similar branding and logos to Pizza Hut, and this is also a problem for the likes of KFC and McDonald’s. It is our job to make people aware that we are the original Pizza Hut with the 25 year-legacy and our standards have to reflect that as well.”

Another 25 years

What will Pizza Hut Pakistan look like in another 25 years’ time? While Ozanne confirms that robot waiters may not be an immediate priority as they are in China, he does see tremendous opportunity to maximise the brand’s reach.

But how much Pizza Hut can the Pakistani market accommodate? “Perhaps 150-200 standalone restaurants is a stretch, simply because of the market’s ability to absorb that many Pizza Huts.” The company is already based in 24 cities across Pakistan and evaluating many outstation locations, which have to be proven viable. “There may be 180 million people living in Pakistan but the number of people that can buy pizza is far less than this, especially considering the rural populations of the country,” Ozanne adds.

Nonetheless, the scope for different style setups is a lot larger, as Ozanne concludes: “I think if we start looking at non-traditional stores then this number could look more like 300-400. Kiosks and partnerships with other venues would be key for this to happen. Pizza Hut was especially iconic 10-15 years’ ago, and now we are a generation further down the line so people are growing up with Pizza Hut being familiar to them. There is a great opportunity to build on this heritage.”

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small business ideas in pakistan 2023

39 Small Business Ideas in Pakistan to Start in 2023

Home » Lifestyle » 39 Small Business Ideas in Pakistan to Start in 2023

Having a secondary source of income is always a good way to manage your finances. Depending on your expenses, it may also help you increase your saving, giving you greater freedom to follow your dreams. So, if you are also on the hunt for a doable side hustle to increase your income without quitting your day job, this blog is for you.  Here we have rounded up 39 business ideas in Pakistan that are best suitable for small-scale investors.

39 Best Small Business Ideas in Pakistan to Start in 2023

Now, without further ado, let’s begin with our list of the best startup ideas for 2023. 

Real Estate Investment

real estate investment idea

Real estate market is touted as one of the most lucrative investment avenues in Pakistan — and rightly so. The value of properties in many major cities across the city has sky-rocketed in recent years. Those who have invested in credible and well-located projects have already set their eyes on short-term and long-term capital gains. 

Expected Returns on Lucrative Real Estate Projects

Keeping in view the upward price trends, real estate investors can enjoy up to 60-70% capital gains and a rental yield of around 7-8%. If you want to learn more about the ROI and rental yield in real estate , check out these blogs.

Technically, it is not one of those business ideas in Pakistan that require small investment, but with a few tricks, you can increase its affordability factor. Wondering how? Keep reading to find out.

Tips to Make an Affordable Real Estate Investment

Have a limited amount to invest in one go? Don’t worry! Here are some interesting tips and affordable property investment options for you to explore.

Go for Properties with Easy and Flexible Payment Plans

You’d be surprised to know that you can invest in some under-development property projects for as low as PKR 10,000 a month. In such projects, you can book your desired property with a down payment of around PKR 100,000-150,000. However, it is important to only invest in real estate projects. They might cost you a little more, but your investment will definitely be in safe hands.

Zameen.com’s New Projects portal has plenty of interesting options available for property investors. All you have to do is to select your desired city and start exploring lucrative investment opportunities around you. Also, projects marketed and sold by Zameen.com ensure reliability and profitability to both short-term and long-term investors.

Search for a Low-Cost House for Sale

Buying a newly constructed house with a limited budget is still possible. Yes, you read it right. So, to help you find some budget-friendly property options, the experts of Zameen.com have compiled listings of low-cost houses available in major cities across Pakistan, including Karachi , Lahore and Islamabad . Investing in a low-priced residential unit is probably the best way to make an affordable real estate investment. 

Buy and Renovate/Remodel an Old House

If the structure of the property has deteriorated, it might’ve already lost a good chunk of its real estate value. Depending on your interest, you can invest in such properties and restore them to earn profit. Buy a property that is in bad shape, renovate or remodel it, according to its condition, structure and market demand. 

Narrow down your search to old and small-sized houses to make your property hunt easier. Keep a budget of around PKR 30-40 lakh in mind. Make sure to avoid these renovation mistakes while working on your project. 

Dropshipping

Can you start dropshipping in Pakistan? Well, the answer to this question is a definitive yes. In fact, it is one of the best low-cost business ideas in Pakistan that doesn’t require large up-front capital. You can easily run and manage a dropshipping business in your spare time. 

Here’s How Dropshipping Business Works

With a dropshipping business model, you can easily run your entire business from your laptop. The only thing that needs a lot of research is identifying the top-selling products.

Everything becomes easy once you are done with that step. You can fetch the required products, use affiliate marketing to promote your products, ship orders, and offer customer support. You can manage all these business operations while sitting on your couch.

Now, let’s find out how to set up a dropshipping business in Pakistan.

Step-By-Step Process to Start Dropshipping in Pakistan

In recent years, dropshipping has become a popular option for start-ups. The business model requires small capital to get up and running. Also, setting it up is also easy. Here, we’ll elaborate on the entire process in a few simple steps, take a look!

  • Set up your online store

To set up your e-commerce store, you have to get a third party involved. You’ll come across many dropshipping platforms in Pakistan suitable for small businesses. Some of the most popular ones include

Shopify : an easy-to-use platform for setting up online stores. The portal is famous around the world. Using Shopify, you can make use of different themes and templates to build your online store.

Daraz : It’s a name that needs no introduction. You can easily start your dropshipping business in Pakistan with this popular portal. You’ll be keeping the profit on your product while paying its wholesale price to Daraz. The entire process is automated.

AliExpress : AliExpress dropshipping follows the same traditional dropshipping business model, which makes it quite convenient for new businesses. Copying the product from the AliExpress market, deciding on your own markup/profit margin and shipping it to your customers directly from your store. 

Amazon : Another option to consider for aspiring dropshippers in Pakistan. However, setting up an Amazon store isn’t easy. Owing to the questionable track record of many Pakistani sellers, Amazon has put stricter policies in place for local dropshippers. It could immediately block your account upon negative feedback. Dropshipping at Amazon is highly popular around the world, but since it has very strong customer-centric policies, running an Amazon e-store from Pakistan is currently a bit too risky.

  • Choose the type of products for your e-store

Do market research to decide on the supplies for your dropshipping store. Get in touch with a suitable supplier of your desired products. Once you’ve selected your supplies, you can simply post the products on your store with your own offer price. 

  • Gaining Customer Base

Social media platforms are a good way to market your dropshipping business nowadays. You can promote your products/services on platforms like Facebook, Instagram and/or LinkedIn, depending on the nature of your business. Target your audience online for a higher conversion rate. With the latest metrics, make sure to reach out to the relevant audience to convert your visitors into leads and eventually, customers.

Increase Your Dropshipping Knowledge

Before you jump into the field and start handling things practically, equip yourself with as much dropshipping knowledge as possible. You can also Hire an expert to run your business for you, but it wouldn’t be a long-term solution. Also, if you don’t know the functionalities involved in drop shipping, you’d always depend on others to guide you. 

From developing and designing your e-commerce platform to marketing it, you should know at least a little about everything. Of course, you won’t be able to do everything yourself, but having technical know-how about every aspect of your business would make a lot of difference.

Investing Money in a Dropshipping Business in Pakistan

Thinking of starting your own business venture with a small amount of money? Dropshipping would be a great option for you. The minimum amount of money you’ll need to invest in dropshipping in Pakistan is around PKR 100,000. It would be enough to put your product/services on the market. 

Restaurant/Coffee Shop

coffee shop idea

Pakistan is a country of foodies. In many cities around the country, the best outing spots for families are usually local restaurants and coffee shops. It is not necessary to open a fancy eatery or cafe to make it successful. 

The very first thing you can do is to reach out to other people running similar businesses. They may be in your social circle or professional network. If not, then you can use Facebook groups and communities to post your questions/queries to fetch relevant information. 

How to Set Up a Restaurant or a Coffee Shop

Opening a coffee shop is one of the most feasible small business ideas in Pakistan. Here’s how to get started

Business Plan: Are you willing to skip your business plan because you think “it’s too much work”? Don’t do that. Having a business plan in place is crucial for each stage of setting up and running your coffee shop or small restaurant business in Pakistan.

Select a Suitable Location: Go for popular business locations in Karachi, Lahore, Islamabad and other major cities in Pakistan. Keep a monthly rent expense of around PKR 30,000-100,000 in mind, depending on your location. 

Required Staff: Wondering how many staff members you’d need for your coffee shop business? Ideally, there should be around 5 workers assigned different tasks. 

Business Hours: Most people like having their coffee before going to work early in the morning. So, try to open your shop at 8 am in the morning and close it at around 10.30 to 11 pm. The closing time for your business may also depend on its location and permission from authorities.

Supplies and Equipment: You cannot run your coffee shop without these two elements. Reach out to coffee wholesale suppliers. They may offer you fine-quality coffee at reasonable prices. Also, use your friend circle or groups on social media to look for people selling slightly used coffee shop equipment. It would be a good way to save some money.

Deciding the Menu: Come up with an interesting coffee shop menu. Offer different types of freshly brewed coffee, such as Espresso, Mocha, Cappuccino, Latte, Cold Coffee, etc. Also, add an interesting variety of sides to your menu like doughnuts, sandwiches, pastries, and cookies. Try to buy these confectionaries from a high-end bakery in bulk quantities. You can also collaborate with them to use their brand name. They may offer you their products in bulk quantities at wholesale rates. Make sure your menu is visible to people passing by. It is a good way to attract customers.

Market Your Coffee Shop: Once you have set up everything, your next goal is to grow your business. Use different types of conventional and online marketing tactics. You can also collaborate with food delivery companies like FoodPanda, Careem and Bykea. 

Coffee Shop Investment in Pakistan

Here’s a breakdown of the investment required for starting a coffee shop business in Pakistan.

You need to set aside a budget of up to 10 lacs for starting your venture. This amount covers your initial rental expenses, security, renovation/remodelling, equipment, advertising budget and backup plans, among other expenses. 

For a more detailed breakdown, refer to the table below:

Print-On-Demand T-Shirts

sell customized t shirts

If you are looking for a low-cost startup idea in 2023, then get started with the print-on-demand t-shirt business. It is another form of dropshipping business model. However, in this business, your focus should be on customizing products as per your customers’ requests. 

Along with t-shirts, you can also sell caps, smartphone cases, hoodies, tote bags, and other types of accessories. Using memes and witty slogans on your products would be a good way to attract new customers, especially teenagers.

How to Start Your Print-On-Demand T-Shirt Business in Pakistan

  • First of all, you’ll need a graphic designer. If your design skills are good, you wouldn’t need one. Otherwise, you’d need to hire one. Check for platforms like Fiverr, Upwork and LinkedIn.
  • Buy plain t-shirts in bulk quantities. It would be cheaper and result in more profit. 
  • Make sure the fabric of your t-shirts is good. It is important for your brand’s credibility.
  • Use platforms like Facebook, Instagram and other online marketplaces to market and sell your products.

Fish Farming

According to a recent survey, fish farming is among the fast-growing food production segments in the world. As the name suggests, it is the process of breeding and raising marine animals commercially. Let’s show you how this business model works.

How to Start Fish Farming in Pakistan

  • Identify the right type of fish and other edible aquatic species.
  • Keep in mind the preferences and choices of your target market.
  • Dig a pond if you have soil around your home or arrange water containers.
  • Other equipment you’ll need include water pumps, fish graders, aeration devices, and water testing tools, among other things.
  • Also, keep in mind that seafood in Pakistan is best sold in winter, so harvest accordingly.

Urban Farming

urban farming business

Urban farming is a great low-investment business in Pakistan. You can set up an urban farm in your backyard, lawn or terrace or any other outdoor space. Once you’ve grown your own fruits and vegetables, you can eat them or sell them at a local store. With consistent farming habits, you can turn it into a profitable business, specializing in any particular local produce. 

How to Set Up an Urban Farm in Pakistan

  • Dedicate an outdoor space, which is properly landscaped and not infected with pests.
  • Use pesticides if necessary before setting up your organic garden.
  • Select fruits and vegetables for harvesting that can grow well in your region. 
  • Take urban farming workshops, if possible, to properly take care of your harvest.
  • Make sure to plant some flowers to attract pollinating bees that naturally improve the quality of your crops.

Poultry Farming

Counted among the most popular small business ideas in Pakistan, poultry farming is an integral part of our agriculture sector. It employs more than 1.5 million people in the country. A poultry farming business can be about chicken breeding/hatchery or meat production. However, setting up a hatchery business is more convenient than meat production. 

Poultry Farming Investment in Pakistan

A lot of sources on the internet quote that starting a poultry farm business in Pakistan requires a large investment. Well, we’d like to say otherwise in this regard. Don’t buy a large piece of land, it’s the most common mistake people make. Many investors assume starting big would yield more profit.

Everyone knows the volatility of the agricultural sector these days in terms of prices. It would be wise to begin your venture with a small investment. You can set up a small-scale hatchery business by investing PKR 100,000 at first. 

Once your operations are streamlined, your livestock is performing well and you are making profits, you can go for expanding it by putting in more capital. 

How to Start a Poultry Farming Business in Pakistan

  • Once you have decided on the capital and type of poultry farming business, you need to look for the necessary resources.
  • Set up a suitable environment for the animals where they’ll be living and breeding.
  • You’ll have to buy livestock and take care of their feed. Get in touch with people who already own and run a poultry farm to get useful and practical advice. 
  • Make sure to get your chickens vaccinated to protect them from seasonal viruses and diseases. Don’t invest in low-cost and untrusted doses of vaccination, they may be harmful to your animals. 
  • Keep a regular check on the health of your chickens. They may easily get sick because of the changing weather conditions and pass on germs virally to other animals. Don’t hesitate and call a vet immediately if need be.
  • Also, it is crucial to maintain ideal temperatures if you want your livestock to thrive.

Beauty Salon

salon business idea

Setting up a beauty salon requires more capital than many other startup ideas in Pakistan. To make your salon business a profitable stream of income, you should have good beautician and communication skills. Hire experienced staff members. Train them, if necessary. Depending on your PR, you can also ask online influencers and internet celebrities to market your salon. In return, you can offer them free services.

Things You Need to Set Up a Beauty Salon

  • The very first thing you need is a work permit and authorization from the local authorities for opening up a salon.
  • Start with a few basic services if you have a limited budget. 
  • Once your business starts getting customers, you can then expand your service menu to attract a wider audience.
  • Do a survey of other salon businesses in your area and make sure to offer services at competitive rates.
  • Have interior arrangements and invest in the right salon equipment.
  • Distribute pamphlets and brochures, and use social media to market your business.

Publish an E-boo k

If you have good creative writing and research skills, you can use them to publish your very own eBook. It is far easier and cheaper than publishing a physical copy. It is also among the best online business ideas in Pakistan. 

E-Books are now a part of a rapidly growing industry where people are making a lot of money. You’ll come across a large audience of avid readers who prefer digital publications because they are cheaper and more easily accessible. 

The reason we have included eBook publication in small business ideas in Pakistan is pretty obvious. The production and distribution costs of ebooks are quite lower than the physical ones. So, it is an easy place for aspiring writers to get started.

As an ebook writer, you can use tools like Visme, Jasper AI and Canva to begin your venture. Most of these tools offer free basic plans to help you start things off. Here are step-by-step instructions on how to publish and distribute your eBook. 

How to Publish Your E-Book in Pakistan

E-book publishing has grown into a multi-billion dollar industry. You can also benefit from it while living in Pakistan. The process is very simple and elaborated below:

  • First of all, select your niche and identify your target audience.
  • Pick a topic (either fiction or non-fiction) that’ll help your book stand out.
  • Take as much time as you need to write and edit your book. Make sure you’re giving out your best.
  • While putting it up on Amazon, Daraz or other similar online marketplaces, write a description that catches the attention of online users. It’s not like you’re summarising your book, instead, you give your prospective readers a reason to buy it.
  • Make sure to upload a nice cover for your eBook. No matter what, people will always be judging a book by its cover.
  • If your book gets successful, you can earn up to $1000 per month.

Offer Online Courses

online tutoring business

Do you have skills and expertise in any particular field? If yes, then all you need is online tutoring skills to start earning money. You can use platforms like Skype, Google Meets or any other similar live chat portals to offer online classes. For notes and other course materials, you can create files in PDF format. 

How to Start Online Tutoring Business in Pakistan

  • The best part about online tutoring is that you don’t need any particular degree or level of education. 
  • Use word of mouth, social media groups, paid online marketing and classified ads to promote your business.
  • Make sure the knowledge you are conveying is actually helping people.
  • It would be good to become an affiliate of a recognised university or an online education platform.
  • Giving certifications and accreditation will increase the level of credibility of your tutoring business.

Graphic Designing

With some knowledge of art and the internet, you can easily learn graphic designing. There are many free and paid courses available these days. For free courses, you can simply check YouTube. Channels like GFXMentor would be a great source of learning for you.

On the other hand, with paid courses, you can easily get certifications upon completion. It would be a plus, but you need to have really good skills. Once you have attracted a few clients, you can turn it into a fully-fledged business by hiring more resources. It is one of the best online business ideas in Pakistan with a small investment.

To upload your portfolio online, you can use world-famous platforms like Behance and Dribble for free. Having a good portfolio would be a great way to start things for a graphic artist and designer.

E-commerce Website

e-commerce business

Do you want to run your own store but don’t have the resources and budget to set it up physically? Don’t worry. Everything is possible in the online world. There are many e-commerce websites nowadays that are earning well. You can set it up too. 

The only major investment in the entire business model would be the creation of a website. However, you can manage your stock in the later phase as per the demand.

How to Start an E-commerce Business in Pakistan

  • The process is very simple. Create a website using the most popular e-commerce web development platforms, such as WooCommerce, Shopify, etc. 
  • You can either focus on single or multiple categories of products on your website. It would certainly impact the business model of your business.
  • There are many courier companies or ride-sharing companies that can be contacted to arrange deliveries.
  • To market your business, you can use brochures, online ads, Facebook groups and other social media platforms. The way you promote your e-commerce website depends on the nature of your business. 

It is another great online business idea for people with good writing skills. There are many different online blogging platforms like WordPress.org or Google’s Blogger. Using such online portals will help you get started for free. Many bloggers these days are using affiliate marketing tactics to earn money. 

Useful Tips to Start Blogging 

  • The aforementioned free blogging platforms will help you create a blog and get started.
  • You need to focus on your niche and come up with enticing topics to attract the online audience.
  • Knowledge of search engine optimization and marketing is very important for a blogger.
  • Once you have pulled enough readers, dedicated followers and subscribers, you can start focusing on affiliate marketing.
  • A successful blogger can earn anywhere between $1000-2000 a month. 

Vlogging is another form of blogging. The only difference is that you’ll be using videos instead of text to reach out to your desired audience. Vlogging needs more skills and effort. You need to be good at making video scripts, capturing videos and editing them later. The more interesting your video is, the more it’ll attract viewers.

The most popular platform used by vloggers today is YouTube. It is free to use and you can post any content you want, in line with YouTube policies for published content. Make sure not to copy videos from other channels or repost them. The last thing you would want on your YouTube channel is a copyright strike. If your channel is running successfully on YouTube, you can earn between $750-1500 a month. 

Food catering is also one of the most popular business models in Pakistan. The main thing that works in the catering business is public relations. You can start by serving in private gatherings and small events. 

Once your venture has established a good reputation, you can extend your services to catering corporate parties and popular events. To market your business, you can use platforms like Facebook and Instagram. Word of mouth would also make a big difference in terms of promoting your catering services.

How to Start Catering Business in Pakistan

  • You need to have cooking and communication expertise to start a catering business. 
  • Along with these basic skills, you also need a space for your setup. A kitchen, an office and probably a storage space would work.
  • You can also outsource different catering equipment, if need be.
  • It would be good to only make necessary investments at the beginning and try not to splurge.
  • If your catering services start getting famous, consider expanding to attract a wider audience.

Photography

photography

Photography is probably the best business idea in Pakistan for people with photography and editing skills. This business also works best for those with good PR. However, you can always create and upload a portfolio on social media and relevant websites. This will help you showcase your work to your potential clients. 

How to Start Photography Business in Pakistan 

  • All you need is a good professional camera and the latest editing software. Due to such minimal requirements, it is considered one of the best small business ideas in Pakistan.
  • You can be a freelance photographer at the beginning. Once you have enough experience and a customer base, you can set up a studio.
  • A person with good photography skills and experience can earn up to PKR 60,000 a month. 

Don’t have a budget to open a restaurant? Fret not. You can go for the option of a food cart or a food truck. The most basic type of business model in this regard is a fries cart. However, in recent years, the concept of street food and food carts has become very popular. 

Food kiosks and trucks have become an important part of street culture around the world. Even in Pakistan, you’ll see them in popular markets and commercial districts of big cities like Lahore, Karachi and Islamabad. So, setting up a food cart is a thriving business idea, if properly executed. 

Freelancing

freelancing in pakistan

Ever since the emergence of high-speed internet and mobile technologies, freelancing in Pakistan is booming. If you want to be a freelancer and work for your clients remotely, you should develop a certain set of skills. For example, you can be a writer, graphic designer, web developer or digital marketing expert. 

Now let’s talk facts about the freelance industry in Pakistan and its exponential growth. As a country of youth, Pakistan is rubbing shoulders with many other countries in terms of increasing global competition for remote workers. If we take a look at stats from FY 2021-22, the local remote working sector reportedly made a staggering $400 million dollars at an unprecedented growth rate. 

Considering the market’s rapid growth, freelancing is one of the best small business ideas in Pakistan. Want to start off your remote working journey on the right foot? Follow these steps. 

How to Start Freelancing Business in Pakistan

  • Focus on Your Expertise: Whether you are planning to freelance part-time or want to make it your full-time income stream, focus on your skills. Create and showcase the best of your work to your prospective clients as a writer, graphic designer, digital marketer or whatever expertise you have.
  • Pick Your Clients Wisely: As a freelancer, you’ll have the privilege to be your own boss. It also means that you’ll have the liberty to pick your clients. It would be great to start offering your services to someone you know or use credible resources to find work. Don’t hesitate in spreading the word in the circle of your friends and acquaintances to let people know about the services you are offering.
  • Create a Portfolio to Showcase Your Skills: Want to increase your client base in the freelancing industry? Create a portfolio that stands out. Journo Portfolio , WordPress , Canva , Behance and Adobe Portfolio are some of the free-to-use platforms for uploading your portfolio. You can also make use of LinkedIn, which allows you to link all your portfolios with your professional profile.
  • Be a Part of Popular Remote Working Websites: Set up an account on Fiverr, Freelancer, Upwork or any other popular freelancing platform. You’ll see plenty of jobs matching your skillset, but getting work on these remote working websites isn’t easy. Create a profile that sets you apart from other freelancers. Keep sending proposals on job postings. In the beginning, try to offer your services at the lowest possible yet justifiable rates.
  • Use Other Online Platforms to Get Work : There are other marketplaces and social media groups where freelancers in Pakistan can find work. For example, Facebook has multiple groups dedicated to writers, graphic designers and other types of online experts. Join them and pitch your profile to get work. 
  • Capitalise on Your LinkedIn Profile: Gone are the days of conventional CVs as now recruiters majorly use LinkedIn for headhunting. The same goes for finding remote workers and freelancers. If your employer doesn’t have any issue with it, you also turn on that “open to work” option on LinkedIn.
  • Have a Dedicated Workstation: Once you have properly transformed your freelancing skills into a steady source of income, think of setting up a dedicated workstation. It would allow you to be more productive with fewer distractions. You can set up a home office if you have enough space. On the other hand, if freelancing is your full-time job, you can consider renting a desk in dedicated co-working facilities like Daftarkhwan, The Hive, COLABS, and Kickstart, among others.
  • Set up a payment gateway : If you are working for a local client, you can easily use any digital wallet services or inter-bank transfers. On the other hand, if someone hires you from abroad, you may need to make an account on PayPal, a globally acclaimed payment merchant. No, it is not available in Pakistan, but there are some workarounds. Check out these tips to create and use a PayPal account in Pakistan and its popular alternatives .

Travel Agent

Are you passionate about travelling? Becoming a travel agent would be a great low-risk business idea for you. You can help people with ticketing processes, visa applications and tours. Having knowledge and expertise about travelling to different countries would be a major plus. 

Travel agencies in Pakistan also offer Haj and Umrah packages and guidance. You can also become an affiliate of an immigration consultancy. The scope of this business is pretty vast in the country.

How to Set Up a Travel Agency Business in Pakistan

  • To run a tourism business in Pakistan, you need to get a travel agency license first.
  • Once you are all set to open a travel agency legally, you need to focus on the list of services you will offer.
  • You can run your business alone but it would be great to have a collaborator. Like other public dealing businesses, the success of a tourism agency also greatly relies on PR.
  • Have an active social media presence and keep updating your audience with new pictures and videos of their desired destinations. 
  • Offer all-in-one travel packages at competitive prices to attract more customers, especially during peak tourism seasons.

Organic Beauty Products

organic beauty products business

If you have an interest in dermatology and skin care items, then selling organic beauty products would be an ideal side hustle for you. To start off as an organic skincare entrepreneur on the right foot, make sure to do your research thoroughly. Learn about the skincare and dermatological problems of your target audience, so you can offer them products accordingly.

It is important for you to hone your organic formulation skills. Do product testing to find out more about their potential outcomes before offering them to your customer. To make your venture a success, spread the word. Try to grow your following on social media organically and via marketing. You can also collaborate with internet celebrities and influencers to promote your business. 

Set Up a Co-working Space

The Covid-19 pandemic has changed the world around us. It has significantly impacted our work-life balance. Remote working has become a common thing and many companies are now hiring employees who work for them remotely. 

This has made setting up a co-working space a pretty lucrative business idea in Pakistan. You can either buy or rent out a commercial unit to set up a co-working space. Even if you have a few spare workstations in your office, you can turn them into a co-working space. 

How to Open a Co-working Space in Pakistan

  • First of all, look for a suitable location to start your venture.
  • Come up with a fully-equipped setup, if there is enough space.
  • Have meeting rooms, conference halls, cubicles and separate offices.
  • Make sure to install a vending machine, water dispenser and coffee machine.
  • Including a separate cafeteria and a game room would be a plus.

Collect Antique Items

collect antique items

Many people have a passion for gathering antique handicrafts and artefacts and storing them as a collection. If you also have a similar passion, you can transform it into a profitable business. Antique collectibles may be worth a lot of money because they are a part of human history. 

You can buy or collect antique items and sell them to enthusiasts at higher prices. It is one of the most feasible low-cost business ideas in Pakistan. Once you have figured out a way to find the right items, you can also start an antique store. 

By selling a single unique artefact to the right buyer, you can easily make thousands of rupees. It could be a very lucrative business for people with the know-how of antiques. Use platforms like Facebook and Instagram to get the attention of a wider audience.

Online Clothing Store

Selling apparel is one of the most popular eCommerce niches. In fact, it is also among the best low-investment business ideas in Pakistan. Depending on your budget, you can create your own label or go selling items from other popular clothing brands. 

There is also an ever-growing demand for used imported clothes or export items that are rejected due to minor defects. Make sure to pick only the products that are in good shape. Take examples of brands like Khazanay.pk and Export Leftovers (shortened as Elo). Places like Lunda Bazaar (Light House Market) and Shershah Godowns in Karachi are where you can easily find imported clothing items and accessories in bulk at wholesale rates. 

Here are some of the basics you should know before setting up your online clothing business.

How to Start Online Clothing Business in Pakistan

  • Before starting your business, it’s a great step to carry out a competitive analysis of your target market.
  • Select the target audience for your business. You can sell menswear, womenswear or unisex clothing items and accessories. 
  • Also, instead of investing in a website, first set up your store on free-to-use platforms like Facebook and Instagram to analyse the response from your target market.
  • To grow your business, offer discounts and promotions on the launch of your store or while introducing a new product.
  • If you are selling items from other clothing brands, make sure you have obtained their consent.
  • Make it easy for your customers to connect with you. Use the messaging platforms of Facebook, Instagram and WhatsApp to connect with your customers.
  • Offer refund and exchange policies for valid reasons to increase the credibility of your store.

Sell Mobile Accessories

mobile accessories business

Moblie accessories are among the most selling items on the internet these days. To set up an online mobile accessory store, no hefty investment is required. You can sell them on different marketplaces like the ones available on OLX.com and Facebook.com. Make sure the accessories you are selling at your store are in demand if you want to generate profit. 

How to Start Online Mobile Accessory Business in Pakistan

  • With just a few accessories and a free online marketplace, you can start your venture and test things out. It is one of the best online business ideas in Pakistan with small investment.
  • Don’t limit the availability of your products to one platform. Put them on OLX and Facebook marketplaces simultaneously and also create a Facebook page under your brand’s name.
  • Pick a catchy brand and logo along with a tagline to highlight your business among netizens.
  • Once your business has enough customer base, you can start expanding your product offerings. Include gadgets along with accessories.

Set up a Co-living Space

With constantly increasing property rents, the concept of co-living spaces is also on the rise in Pakistan. These accommodations are ideal for students, expats and working professionals. Co-living spaces usually offer separate and shared accommodations. An ideal co-living space should include all basic facilities.

To set up a co-living space, find a property located in business centres and commercial districts. Such areas usually have educational institutions and corporate enclaves, which means more potential walk-in customers. For the convenience of the residents, you can also offer add-on amenities like a WiFi connection, activity area, gymnasium, etc.

Car Pooling

car pooling business

When your car is a 5- or  7-seater vehicle, why go to the office alone? Why not start generating profit from your driving skills? In this era of mobile devices, carpooling has become more convenient than ever before. 

Amid rising inflation, fuel saving has become crucial and carpooling is the best way to do it, not for you but also for others around you. You can also start a pick-and-drop service if you have spare time, helping people with their commuting needs. It would be a good source of a second income.

How to Start Car Pooling Business in Pakistan

  • Start by spreading the word in your social circle that you want to carpool.
  • It would be good to offer your services to people who share the same route.
  • Decide on rates that you want to charge every individual sharing a ride with you.
  • Sign up on famous ride-hailing apps if you want to earn more or start a pick-and-drop service.
  • Car pooling/ride-sharing is a great low-investment business idea in Pakistan for people who have some spare time and good driving skills.

Become an Online Fitness Trainer/Instructor

If you know how to take care of your health and have a lean body, become a fitness trainer. Of course, it is that easy in today’s world. No, you won’t need to buy any physical space to offer your services, you can simply offer them online. Let’s find out how you can get to your goals and start earning money.

How to Become an Online Fitness Instructor

  • Set up an account on Instagram, Facebook or YouTube about your fitness services.
  • Upload live videos containing exercising, diet plan and tips to attract the audience.
  • As an online fitness coach, divide your services into free and paid memberships.
  • Restrict some of your core services and products to premium members.
  • Ask people to sign up for paid memberships to gain access to all of your services.
  • A successful online fitness trainer can earn up to $4,000 a month.

Vacation rentals

vacation rental

Ever wonder how to invest in a vacation property? You can not only use it for your own leisure but also make money from it, especially during the tourist season. Pick a suitable location for your investment property. You can even look for a summer home located in the northern areas of Pakistan.

Your vacation property near a famous tourism spot can generate a rental yield of up to 8%. It may also enjoy high real estate appreciation down the road. If your vacation rental business thrives, you can also consider diversifying your property portfolio.

How to Start Earning Money from Vacation Rentals in Pakistan

In today’s world, the biggest source for reaching out to people is the internet. With the availability of world-leading platforms like OLX.com.pk and Airbnb in Pakistan , you can easily list your vacation property to attract renters. 

How to List Your Vacation Property on Airbnb in Pakistan

Here’s how to list your vacation property on OLX.com.pk

  • Access the OLX app on your mobile phone.
  • Click on the sell button with a plus icon
  • Select the category of your ad. You’ll need to click on the “property for rent” option.
  • Select “Vacation Rentals – Guest Houses” from the list.
  • You can upload up to 12 photos in your ad. The more photos you upload, the more prominent your vacation property will become to ad viewers.
  • Provide all the required information about your property in the given fields.
  • Set a justifiable rental rate for your vacation property and post your ad. 
  • Your ad will go live in a matter of minutes and you’ll get an email notification.

The process of creating a listing on Airbnb involves a few steps elaborated below.

  • Visit Airbnb.com and create an account. Sign-up with your details using a pop-up window. You can use your Gmail or Facebook account to sign-up.
  • To create a listing, fill out the basic descriptions of your property, such as address and in-house and nearby amenities.
  • There is a list of questions that you may have to answer while listing your vacation rentals on Airbnb. 
  • While filling out the details, you also have to specify if your property is a home, hotel or shared accommodation.
  • Your property location and its verification on the map are also a part of the process.
  • If your offered rental space has facilities like a swimming pool, gym, and laundry area, among other things, don’t forget to mention them.
  • Put up a few good photos of your vacation property. While taking photos, focus on bedrooms, bathrooms, outdoor space, and other prominent features.

Sell Handicrafts

handicraft business

If you have carving, beading or calligraphy skills, you can earn money from them by selling your handicrafts. Handicrafts of Pakistan are famous all around the world. To start your handicraft business, you don’t have to set up a shop or something like that. Instead, you can simply start from an e-commerce platform.

How to Sell Handicrafts Online in Pakistan

  • Start by listing your products on online marketplaces like OLX and Facebook.
  • Keeping in view the response of your customers, you can also set up an e-commerce website.
  • You can also list your products on Amazon for international exposure.
  • Upload high-quality photos to highlight your products in front of your potential customers.
  • If you are selling a variety of products, divide them in categories.
  • Come up with a unique brand name for your online setup.

Babysitting Services

If you can take good care of infants, toddlers and young children, you can start offering babysitting services. You need to spread the word about the services you offer among your contacts or social circle. 

While taking care of the little ones, you can also offer them tutoring services and charge for them separately. It would be a good side hustle, especially for students to take care of their basic expenses. Nannies and babysitters in Pakistan usually earn around PKR 35,000 a month on average.

Yoga classes

Woman meditating during yoga class

People who are good at self-care, self-regulation and meditation skills can easily start offering yoga classes. It is among the most popular low-investment business ideas in Pakistan for students and young professionals alike.

You don’t have to quit your day job to offer yoga classes. Instead, you can set your schedule in the after-hours or early in the morning. Don’t have a budget to set up a studio? Fret not. You can easily start your wellness venture online on YouTube, Facebook or any other free online broadcasting media.

How to Start Yoga Classes

  • Yoga classes can be offered in a spare room, terrace or any other outdoor space in your home. 
  • If you are short on space, you can simply offer your classes online.
  • Tell your family, friends and other people in your community about your new wellness venture.
  • Use different social media platforms and groups to spread the word.
  • Make sure to offer demo classes to let people know about the benefits of signing up for your services.
  • Having an online audience means you can easily expand your reach to an international audience.

Virtual Event Planner

If you have good organisation, networking and management skills, you can utilise them in event management. Yes, event management can now also be done virtually, thanks in part to advanced technology. 

After the Covid-19 pandemic, hosting events online has become pretty common around the world. Virtual event planners manage webinars, online conferences, virtual trade shows, podcasts, and other similar events. Successful virtual event management can let you earn up to $1,000 a week.

Become a Real Estate Agent

Become a real estate agent

Becoming a real estate agent is also a lucrative business idea in Pakistan with small investment. You can either set up an agency or offer your services individually. However, the best way to multiply your income as a real estate agent in Pakistan is by becoming a Zameen Affiliate.

By marketing high-end projects, you’ll get a chance to diversify your portfolio. Associated with Pakistan’s No.1 property website, Zameen Affiliates have the opportunity to represent top-notch investment opportunities. Currently, 34,000+ affiliates around the world are using the Propforce website and application and are earning hefty commissions.

How to Become a Real Estate Agent in Pakistan

  • Depending on your scope and planning, you can either open an agency or become an independent real estate agent.
  • Sign up for the Zameen Affiliate Programme to reach a wider audience as an agent.
  • You can easily visit the Propforce website or download the app to get started.
  • Zameen Affiliates’ earnings are based on commissions that may vary from project to project.
  • On the basis of the frequency of work, real estate agents can more than PKR 100,000 a month.

Local Grocery Store

Setting up a local grocery store is also among the most popular cheap business ideas in Pakistan. You need to have basic accountancy and public dealing skills to manage a shop. You can either buy a shop or look for a rental space for your business.

If you are going for a larger setup, look for a location with high foot traffic. You can also offer your products on online marketplaces. It will allow you to have more than one stream of revenue for your business. Also, try to offer free delivery on large orders to facilitate your customers.

Retail Kiosk at a Shopping Mall

mall kiosk

Want to start a retail setup on a small scale but looking for high exposure? Consider setting up a kiosk in a shopping mall or a commercial centre. Such places have a high footfall usually all year round. Investing in a kiosk or a cart is usually cheaper than buying or renting an entire retail outlet. You can start selling anything you want or have expertise in. For example, handicrafts, antique items, clothing items, mobile accessories, etc. 

How to Set Up a Mall Kiosk

  • The very first step is about deciding what to sell.
  • Locate a mall where you can set up your kiosk
  • The next step is to pitch your business idea to the mall management.
  • It would be a wise idea to start small and expand once you start getting a good response.
  • Come up with a brand identity and market your business online.

Logistics Company 

Long gone are the days when you have to put in a heavy investment to start your own logistics company. With the presence of the latest technology, you can start your shipment business with limited resources.

There are many e-commerce ventures these days that rely on delivery services to keep their operations running. You can reach out to them and tell them about your business. Make sure to offer special discounts and promotions when starting your business.

How to Set Up a Logistics Business in Pakistan

  • For setting up a logistics company, you need to get a dedicated contact number, probably with a PABX system.
  • Create a website and a mobile application to facilitate your customers.
  • It would be ideal for your website and mobile app to have a shipment tracking mechanism.
  • Get in touch with an insurance company to offer insured services to customers.
  • Hire a fleet of experienced drivers/riders.
  • You can manage your operations remotely but having an office would be a plus.
  • Having a physical presence would also increase the credibility of your logistics company.

Website and App Development

The scope of website and app development is increasing day by day. In fact, it has become one of the most thriving business ideas in Pakistan. Many tech enthusiasts are earning well by offering these services on-site or remotely. 

Learning such skills is not easy because the competition is high. However, if you have a passion to learn and improve, you could get a hang of things with time. For people having the right skills and experience, the field is very lucrative. A running website and app development business can earn thousands of dollars a month.

There you have it — our comprehensive guide on 39 low-cost business ideas in Pakistan.

For more informative lifestyle and property pieces, stay tuned to Zameen Blog. If you have any queries or feedback, reach out to us at [email protected] .

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Pizza Delivery Business Plan

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Tsunami Pizza

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

The westside of South Gate has experienced explosive growth the past three years. Over 3,000 new residents live in the westside area. Area businesses are slowly catching up with this new opportunity. Tsunami Pizza is opening a new pizza delivery service that will focus on the westside area.

Currently, the area’s closest pizza restaurant takes up to 45 minutes to deliver a pizza. Tsunami will cut the delivery time to no more than 20 minutes. 

Tsunami will offer a better pizza, at a lower price, and will deliver it hot to the customer’s door faster than the closest competitor.

Pizza delivery business plan, executive summary chart image

1.1 Objectives

  • Capture the majority of the pizza delivery business in the westside area.
  • Offer our customers a superior product, at a low price, and provide customer service that is second to none.

1.2 Mission

Tsunami Pizza’s mission is to offer residents of the westside the best pizza delivery service in the city.

1.3 Keys to Success

  • A superior product that will promote customer loyalty.
  • A business location that will assure that the pizza will be delivered quickly.
  • Delivery people that have great customer skills.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Tsunami Pizza is a new pizza delivery service started in the city’s westside area. John Lindsay, owner of Tsunami Pizza, has seven years experience in the restaurant industry. His focus is to satisfy the customer’s demand for a quality pizza that is delivered quickly with a smile.  Tsunami Pizza will serve a seven mile area with over 25,000 residents. Overhead will be kept low so that Tsunami Pizza’s prices will beat the competition. Delivery people will use their own vehicles so the business will not have to purchase delivery vehicles.

2.1 Start-up Summary

The start-up cost of Tsunami Pizza will consist primarily of kitchen equipment. John Lindsay will invest $50,000.

Pizza delivery business plan, company summary chart image

2.1.1 Company Ownership

Tsunami Pizza is owned by John Lindsay.

2.2 Company Locations and Facilities

Tsunami Pizza will be located at the corner of 11th and Tyler.  These two streets are the area’s busiest and provide easy access to our service area.

Tsunami Pizza will offer a wide variety of New York style pizzas, as well as sodas and fruit juices.

Market Analysis Summary how to do a market analysis for your business plan.">

The westside is a growing middle-class area with 25,000 residents.  A majority of these residents are families of four or more.  The average income for the area is $38,000.   The boom in the area is primarily in response to new employment opportunities in the city’s Westside Industrial Park.  Businesses that traditionally do well with this population have demonstrated the potential for Tsunami Pizza.  A neighbor of Tsunami Pizza, Magic Videos, has been in operation in the area for a little over a year.  Magic Videos is the closest video store serving the westside area. Their sales have grown by 40% due to its location and the absence of direct competition in the westside.

With continued growth in the area, opportunities to serve the westside residents will increase.   The company will sell predominantly to individuals, but it will also accept some catering jobs to individual parties and company functions in the westside.

Strategy and Implementation Summary

Tsunami Pizza will use advertising to promote the business.  We will use the local westside flyer to advertise.  In addition, we will hire people to hold signs at the corner of 11th and Tyler. We will also use door handle flyer promotion throughout the westside neighborhoods.

Our most important promotion will done in conjunction with Magic Video.  We will offer a two for price of one video coupon with each purchase at Tsunami Pizza that can be used at Magic Video.  Magic Video will offer its customers a $2 off coupon that can be used at Tsunami Pizza.

5.1 Competitive Edge

  Tsunami Pizza’s competitive edge is:

  • Location:  Tsunami Pizza is located in the heart of the westside area on the corners of 11th and Tyler.  These two streets are the area’s busiest. The closest pizza restaurant to the westside area is a fifteen minute drive. Tsunami Pizza can deliver in half the time of its competitors.
  • Low Overhead/Lower Prices: Since Tsunami Pizza only delivers pizza, its prices don’t reflect overhead demands of a traditional pizza restaurant.

5.2 Sales Strategy

The sales strategy of Tsunami Pizza is simple. First, offer the customer a superior pizza at a low price. Second, make sure that pizza is delivered quickly. Third, the delivery people must work to create customer loyalty.

5.2.1 Sales Forecast

The following is the sales forecast for three years.

Pizza delivery business plan, strategy and implementation summary chart image

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

John Lindsay will be the manager of Tsunami Pizza. John started as a waiter at the city’s famous Sweetwater restaurant. At the time, John was in his junior year at Robertson University. He graduated in 1995 with a BA in history. Soon after graduation, John was offered the position of shift manager at the Sweetwater. He has held that position for five years.

6.1 Personnel Plan

The Tsunami will have the following staff:

  • One kitchen staff.
  • Two delivery staff.

Financial Plan investor-ready personnel plan .">

The following is the financial plan for Tsunami Pizza.

7.1 Break-even Analysis

The following table and chart show the Break-even Analysis.

Pizza delivery business plan, financial plan chart image

7.2 Projected Profit and Loss

The following table and charts show the projected profit and loss for three years.

Pizza delivery business plan, financial plan chart image

7.3 Projected Cash Flow

The following table and chart is the projected cash flow for three years.

Pizza delivery business plan, financial plan chart image

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7.4 Projected Balance Sheet

The following table is the projected balance sheet for three years.

7.5 Business Ratios

Business ratios for the years of this plan are shown below.  Industry profile ratios based on the Standard Industrial Classification (SIC) code 5812, Eating Places, are shown for comparison.

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pizza business plan in pakistan

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Pizza Hut and Burger King under new management in Pakistan

  • Maaks International acquires businesses from MCR and MCR Pakistan, a transaction industry officials put in the range of $10-15 million

pizza business plan in pakistan

KARACHI: Islamabad-based Maaks International has acquired MCR and MCR Pakistan, the firms that run food chains Pizza Hut and Burger King, respectively, in the country, in a transaction industry officials put in the range of $10 million to $15 million.

The franchise business of the two food outlets is currently out of commission with the new owner vowing a comeback within this month, and an addition of roughly 25 new outlets each year. The companies will retain their brand identity, but will come under new management.

Maaks International, a privately-held business, has operations in the rice, petroleum, hospitality, pharmaceuticals, and FMCG sectors.

Its acquisition will involve running the operations of 84 Pizza Hut and 9 Burger King outlets in the country. The new management vows to take this number higher over the next five years.

“We want to revamp operations completely,” Azhar Jafri, Executive Director of the newly-acquired MCR and MCR Pakistan, told Business Recorder in an exclusive interview.

“We plan to increase Pizza Hut branches to 200 and Burger King to around 50 by 2027.”

Jafri, who appeared to be more bullish on Pizza Hut than he was on Burger King, said there was no reason why the pizza business could not retain its position as market leader.

What went wrong?

Jafri said the company was unable to maintain Pizza Hut to its international benchmark, citing this as the main reason for its sub-par performance in the country.

“All outlets have been closed at the moment because of supply-chain issues. The previous management was neither focused on supply-chain nor the ambiance of Pizza Hut.

“During this time, it lost market share and allowed others to get ahead.”

Pizza Hut is owned by Yum! Brands, Inc., based in Kentucky, US. Its subsidiaries operate a system of over 53,000 outlets in 155 countries and territories under the company’s concepts – KFC, Taco Bell, Pizza Hut and The Habit Burger Grill.

Burger King is owned by Restaurant Brands International (RBI) Inc., one of the world's largest quick service restaurant companies with more than $35 billion in annual system-wide sales and over 28,000 restaurants in more than 100 countries. Tim Hortons, Popeyes and Firehouse Subs are other companies owned by RBI.

“The previous management stopped following Yum!’s guidelines. It has also happened in the past with KFC in Pakistan. You will struggle if you stray from those guidelines,” added Jafri.

While the official remained upbeat over future prospects, it was learnt that other business houses also looked to acquire the MCR portfolio that had been up for sale for a while.

“Many renowned businesses also bid to buy MCR but international businesses such as Yum! follow certain guidelines.”

Jafri said the transaction process is now almost complete, and currently, banks’ reconciliation is underway.

He added that the businesses would be run directly as opposed to “sub-franchising”.

The competitors

Jafri said that they will look to compete in the top-tier of pizza outlets, signaling that the price-point would remain high.

Despite inflation, Jafri said that there remains a big market for high-end food businesses in Pakistan.

“Go to Kolachi (restaurant) — there are around 1,000 waiters to serve the high number of customers. Go to Lal Qila (buffet restaurant), which is very expensive. Pizza Hut is comparatively inexpensive compared to their food.”

Jafri said Pakistan’s restaurant market has huge potential. International food-chains such as KFC, McDonald's and even Nandos are all making money in the country.

“Pakistan has been left with two income groups left. You either belong to the high-income group or the low-income one. The middle-income group has been squeezed.”

“Recently, our RGM (Regional General Manager) from Sukkur asked us to open a Pizza Hut outlet in Larkana. He said one KFC branch was recording sales of Rs600,000 to Rs700,000 a day.”

He added that the company was pondering opening branches in Nawabshah and Larkana.

“We may have competition here (Karachi) but we won’t have it in those areas. No one else would go there.”

Jafri said that they will make the best use of technology in what he called the transformation phase.

“We have sent the people making software for us to Dubai so that similar software that Yum! uses internationally is used here as well.”

Issue of pending salaries

Meanwhile, a person recently employed at the company on condition of anonymity, since they were yet to settle arrears, told Business Recorder that there is a large number of employees waiting for salaries.

“Some of our dues have not yet been cleared,” they said.

Jafri admitted the new management has started the process “but due to the reconciliation and transition, pending payments have not been released as yet”.

“It’s not only salaries but vendors and landlords (have been waiting for their dues).”

Jafri added that every payment due on the company will be cleared.

“(We will pay) 100% once the audit and reconciliation is complete,” he added.

He said that there are around 1,200 human resource personnel employed by Pizza Hut and they were screening them to see which ones they can retain.

“We have a plan for complete revamp. Screening is part of that plan.”

Comments are closed.

Aurangzeb eyes fresh staff-level agreement with IMF by end of this fiscal year

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In letter to pm shehbaz, biden says us ‘will stand with pakistan’ in face of global, regional challenges, rupee marginally strengthens against us dollar, china joins probe into deadly suicide attack on its nationals in pakistan, aurangzeb holds key meeting with sbp governor, no political, bureaucratic interference to be allowed in anti-smuggling drive: pm shehbaz, kse-100 retreats from record high but still closes above 67,000, bank alfalah’s eyes majority stake in samba bank limited, sbp clears nassir salim’s appointment as hbl president & ceo, gold price per tola gains another rs3,800 in pakistan, pakistan’s listed pharma sector sees earnings go down 42% yoy in 2023, read more stories.

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Fast-food restaurants in California are laying off workers to prepare for the $20 minimum wage hike

  • Californian fast-food restaurants are cutting workers to prepare for the $20 minimum wage.
  • Pizza Hut franchisees plan to lay off around 1,200 workers, for example.
  • Restaurants are also raising prices to offset wages; some are worried about spooking diners.

Insider Today

Fast-food restaurants in California are laying off hundreds of workers to cut back on costs as they prepare for the state's $20 minimum wage for fast-food workers that comes into force in April, a new report by The Wall Street Journal details.

Two franchisees for Pizza Hut , with restaurants across various counties in California, have said they'd lay off around 1,200 workers as they scrap delivery-driver roles to rely on third-party delivery instead.

Southern California Pizza Company, a Pizza Hut franchisee, said it planned to lay off nearly 850 workers in February, according to filings made under California's Worker Adjustment and Retraining Notification Act in December and viewed by Business Insider.

In December, another Pizza Hut franchisee, PacPizza, and its affiliates filed plans to lay off more than 350 workers in February.

And in February, Excalibur Pizza LLC, a Round Table Pizza franchisee, said it planned to lay off 70 workers in April, WARN Act filings show.

Round Table Pizza, which has more than 400 locations in the US, mainly along the West Coast, told BI that the employees being laid off were delivery drivers and that Excalibur was moving to third-party delivery services. The company said it saw the layoffs as a "transfer of jobs," with more workers required at third-party delivery services instead.

"That said, delivery service fees may increase, and the customer will most likely see even higher prices as a result of this ongoing shift," Round Table Pizza's statement continued. "This is the reality of today's restaurants."

Related stories

One fast-food franchisee has even roped in his 73-year-old parents to help out after cutting staff.

Alexander Johnson, who owns 10 Auntie Anne's and Cinnabon locations in California, told the Journal that the new law would have otherwise cost him an extra $470,000 in labor a year.

Franchisees are worried about higher prices spooking diners

California is raising the state's minimum wage for workers at limited-service restaurants to $20 an hour from April 1 — 25% higher than its general minimum wage.

The law only applies to chains with at least 60 locations nationwide, though analysts note that it could lead to wage hikes at other restaurants and workplaces in the state as they try to compete for talent.

The legislation — especially in its original form as the FAST Recovery Act — faced fierce opposition from the restaurant industry, with some chains saying it would drive up operating costs so high that they'd have to lay off workers and charge customers more.

The franchisees generally set prices, and some are concerned that higher prices could scare off diners .

"I can't charge $20 for Happy Meals," Scott Rodrick, owner of 18 McDonald's restaurants in Northern California, told the Journal. He said that in the hunt to save money amid the wage increase, he was "leaving no stones unturned."

Another McDonald's franchisee who owns restaurants in Los Angeles County previously told KTLA 5 News that her food would become "unaffordable" if she raised prices enough to cover the wage increase.

Brian Hom, the owner of two Vitality Bowl açaí bowl restaurants in San Jose, told the Journal he's raising menu prices by about 10% to cover the higher wages. He's also running his stores with two employees, down from four, which he said is slowing down order times.

"I'm definitely not going to hire anymore," Hom told the Journal.

Vitality Bowls has taken "significant measures to optimize profitability," like changing its menu and improving its tech, CEO Roy Gilad told BI in a statement. The company is "well prepared" to offset higher costs, he said.

Are you a fast-food worker who'll soon be getting the new minimum wage? Or a franchisee worried about how it will affect your business? Email this reporter at [email protected] .

Watch: How Domino's makes 1 billion pizzas a year amid labor shortages

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IMAGES

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  4. PIZZA PLUS PAKISTAN

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  5. Domino's Pizza Pakistan Review

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  6. Use This Example Pizza Business Plan to Open Your Pizzeria

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VIDEO

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    The simplest process to excel in store decoration is shown below. The first step is to consider and analyze the food prices, restaurant concept, location, and target customers. It is important to draft the budget for in-store decoration in this phase. It is up to you to hire a designer for the process.

  5. How to Start Pizza Shop

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  6. How to Get Into Pizza Business

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  7. Fast Food Business Strategies in Pakistan: A Case of Pizza 363

    Abstract. Pizza 363 is a newly launched pizza business in the local fast food industry of Pakistan. Pizza 363 started their operations with an emphasis on high-quality pizza at affordable prices. Initially, the food business was started by the two partners to satisfy the customer needs in the pizza business in Pakistan.

  8. How to Start Your Restaurant Business in Pakistan?

    For the investment, if you lack funding then you can also start a restaurant with partnership business model. In such a business model, you can either take funds from a sleeping partner who would invest in your restaurant business or you can invest in the business and join hands with someone who has the expertise to run a restaurant. 3. Franchise.

  9. Pizza Hut Pakistan and the bid to become most-loved, fastest-growing

    Tasked with making sure the company stays clear of increasing local competitors and continues to offer relevance and quality to customers, Ozanne's remit can be condensed into the hashtag #mlfg - the global Pizza Hut ambition to become the most-loved, fastest growing food brand. Despite being able to build on 25 years of heritage, the ...

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    39 Best Small Business Ideas in Pakistan to Start in 2023. Now, without further ado, let's begin with our list of the best startup ideas for 2023. Business Ideas. Profit Margin. Investment Risk. Required Skills. Real estate Investment. Good. Medium.

  11. How much money to invest in to start a good pizzeria?

    Adding other costs to the end-product will make the total cost around 550 rupees. Now if I sell a single slice for 50 rupees, I will lose 150 rupees for every 13 inch pizza. So you see 50 rupees per slice can never cover the cost of making a pizza leave alone the profit! Hi, guys I have decided on setting up a good pizzeria in North Nazimabad ...

  12. Pizza Delivery Business Plan Example

    Tsunami Pizza is opening a new pizza delivery service that will focus on the westside area. Currently, the area's closest pizza restaurant takes up to 45 minutes to deliver a pizza. Tsunami will cut the delivery time to no more than 20 minutes. Tsunami will offer a better pizza, at a lower price, and will deliver it hot to the customer's ...

  13. Pizza Hut and Burger King under new management in Pakistan

    * Maaks International acquires businesses from MCR and MCR Pakistan, a transaction industry officials put in the range of $10-15 million ... "We plan to increase Pizza Hut branches to 200 and ...

  14. Pizza Business Plan In Pakistan

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  20. CA Fast-Food Restaurants Lay Off Workers to Prepare for $20 Wage

    And in February, Excalibur Pizza LLC, a Round Table Pizza franchisee, said it planned to lay off 70 workers in April, WARN Act filings show. Round Table Pizza, which has more than 400 locations in ...

  21. Pizza business in Pakistan-Pizza Business Startup-Pizza Business Plan

    Welcome to Pakistan Wealth Academy:In This video you will learn how to start a Pizza business without expensive machinery. The secret ingredients and recipes...

  22. No plan to resume trade with India: Pakistan's U-turn after ...

    Pakistan has made a U-turn on resuming trade with India. On Thursday (Mar 28), Pakistan's Foreign Office said it had no plan to resume trade relations with India, days after new Foreign Minister Ishaq Dar said that Islamabad would seriously consider restoring ties with New Delhi.

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