Risks associated with our Business of Restaurant:

There are several risks associated with our new venture of opening a floating restaurant in Rawal
Lake at Lake View Park. These risks may be categorized in some major categories which
include
!perational Risk
"trategic Risk
#conomic Risk
$inancial Risk
Political Risk
%ountry Risk
Regulatory Risk
1. Operational Risk:
Food Safety Concerns:
$ood safety is considered as one of the serious concern for restaurant owners. $ood safety
includes freshness& cleanliness& and preservation of food. %ontamination of food can cause
problems like food poisoning or nausea among the consumers. Restaurant personnel will be
trained to save the food from contamination. 'n addition to this& it would be ensured that the
food (esp. sea food) that is being offered would be *+L+L and according to the taste of people.
The ingredients in the food would be mentioned in the ,enu so that customers would know what
suits their taste and health. !il in the deep fryers would be regularly changed. Raw materials like
raw meat& chicken& vegetables etc would be maintained at an appropriate temperature in chillers
to avoid food decay.
Fire Safety:
!ne of the major areas of our floating restaurant is kitchen. -itchens are the most common place
where fires begin& and buildup of grease is a common cause of fires. +lso because of high
temperature restaurant cooking has a big risk of fire. The risk is greater because a lot of wood
work will be re.uired for the construction of a floating restaurant. 'f fire spread to large e/tent
then there could be financial as well as human loss. 'n order to overcome this problem& focus will
be on fire resistant material for the construction of ship specially the kitchen. $rom time to time&
trainings would be conducted for employees to deal with such contingencies. There will be a
proper emergency e/its plan for the restaurant. $ire e/tinguishers will also be there on the boat.
$ire detection systems would be installed and serviced every 0 months. $ire blanket would be
wall mounted near the kitchen so can be accessed easily in such situations. +utomatic fire
suppression system will be installed if possible.
Equipment Risk:
Restaurants are usually dependent on e.uipment e.g. 1eep 2ell $ryer and ovens. 'f any
mechanical fault comes then it will cause to halt the operations. "o& e.uipment will be insured so
that the business will not bear any cost. 3esides this +ir conditioning& refrigeration& cooking and
dishwashing e.uipment will get inspected every year so that everything would be in a good
working condition. The fume e/traction hood filters will be cleaned every two weeks.
+nother problem which is specific to our restaurant is the damage to the boat. 3oat is floating on
the lake and e/treme weather& thunder storms and rain may cause damage to the boat which will
affect the business greatly. There is another risk of increase and decrease in the level of water in
the lake which may affect our operations. 'n order to overcome these risks& we will get the
insurance of our boat. + proper maintenance schedule will also be developed to increase the life
of the floating boat. 2e will keep ourselves updated with the level of water in the lake by
keeping in touch with the dam management authorities.
ower outa!es:
Pakistan is going through severe energy crisis& which cause instability in fuel prices. !ne of the
major e/penses of our boat would be the fuel cost. 'f the fuel prices increase& our cost to run the
business will increase significantly. 'n order to overcome these problems& alternative energy
resources would be considered for the sailing of our boats. 'n order to reduce cost& small boats
which would be used to take customers on the main boat could be kept manual.

". Economic Risk:
Pakistan4s economic conditions are getting adverse day by day. Poor economic condition like
inflation and unemployment etc may decrease the buying power of our target markets. 't will
reduce the people4s e/penditures on leisure like dining in restaurants. 2e will have to be updated
with customers4 willingness to pay. 'nflation in the country will also increase our cost of raw
materials. "o from time to time& we will have to keep adjusting our prices. 2e may offer special
discounts and offers to attract more customers.
#. Country risk:
Pakistan4s country risk is very high. Terrorism is one of the major problems which we cannot
ignore. 'n such conditions& people avoid going out and prefer to stay at homes. "trikes& poor
condition of law enforcement and safety issues may increase our business risk and ultimately
reduce our revenues. %ustomer safety will be ensured by using security checks and walkthrough
gates on entrance of the restaurant.
$. Re!ulatory Risk:
!ne of the major hurdles in front of us is to get the permission from %1+ to start our business at
Lake View Park. 2e have contacted some %1+ officials and according to them& %1+
encourages such ventures. 2e will have to get compliance with %1+ regulations. %1+ may ask
us to bring out some changes in our main idea. There are other regulatory authorities also like
Pakistan "tandards and 5uality %ontrol +uthority and $ood 1epartment of 'slamabad %apital
Territory ('%T). 2e will have to comply with their regulations. +ppropriate food safety
procedures for handling& storage and preparation of all food will be followed. 2e would have to
get the understanding of different lawsuits which customers and competitors may file against us.
%. olitical Risks:
Political instability in the country may pose a risk on our business. 'f a government changes& new
government may change laws related to ta/ation and other regulatory frameworks which could
affect Restaurant industry.
&. Financial Risks:
'n order to start our business& we will have to gather funds. +s there is no guarantee for the
success of our business& a huge financial risk is there for us. There is a risk that we may not be
able to attract enough customers and our idea of floating restaurant may flop. 'n this case we may
lose our whole money. ,oreover& if we get succeeded& we may need to e/pand our business 'n
future and for that& we will have to raise funds from outside. 2e might go to the banks for loans
or may invite other people to become the partner in our business. This will decrease our control
on our business.
'. Strate!ic Risk:
'n Restaurant industry& we are facing an intense competition from our direct and indirect
competitors. 'n order to compete successfully& we will have to bring innovative ideas into our
business. $rom time to time& we will have to go through from our menu and offer such services
which will differentiate us from our competitors. 2e will have to understand customers changing
demands through market research and will have to incorporate those changes into our business.