HO CHI MINH UNIVERSITY OF TECHNOLOGY
VIETNAM NATIONAL UNIVERSITY
FACULTY OF MECHANICAL ENGINEERING
DEPARTMENT OF INDUSTRIAL SYSTEM ENGINEERING
---------------oOo----------------
TEAM PROJECT
ENGINEERING ECONOMY
Instructor: Ph.D Le Duc Dao
Assoc. Prof. Dr. Le Ngoc Quynh Lam
Class: CC01
Group: 10
Full Name Student ID
Trần Hữu Nhân 1952892
Nguyễn Tuấn Điệp 2252160
Nguyễn Lê Nhật Khang 2053100
Lăng Hoàng Phước Tạo 2313020
Trương Anh Quân 2353018
Trần Hoàng Sơn 2353054
Ho Chi Minh City,3t h October 2024
ABSTRACT
Our group analyzed a project about Bun Dau Mam Tom restaurant based on a
reference on a real case study of a restaurant operating in Ho Chi Minh City. The
project's content includes analyzing the factors that determine the success of a
restaurant such as investment costs, location, premises, estimated revenue and profit,
etc. Regarding investment costs, our group used knowledge and formulas from
Engineering Economics subject to analyze in two ways: one is to finance the project
entirely with the investor's money, the other is for the investor to borrow from the
bank. From there, we will determine the break-even point, desired revenue and
compare the profits between the two capital approaches.
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ACKNOWLEDGE
With our group's sincere thanks to Ph.D Le Duc Dao and Assoc. Prof. Dr. Le
Ngoc Quynh Lam for his and her dedicated guidance as the main instructor as well as
to the teachers who guided our group in the practice section. During the time studying
in class and practicing in the workshop, the group of students had an overview of mass
mechanical production in industry and how to measure and evaluate product quality.
My team has tried their best to make this report. However, due to limited time
and lack of practical experience, this report still has some small errors. Therefore, my
team is looking forward to receiving comments to enrich our knowledge.
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TABLE OF CONTENTS
ABSTRACT............................................................................................................................................
ACKNOWLEDGE................................................................................................................................
LIST OF TABLE....................................................................................................................................
LIST OF FIGURES...............................................................................................................................
CHAPTER 1: INTRODUCTION........................................................................................................
1.1. Project overview:.........................................................................................................................
1.2. Project objectives:.......................................................................................................................
1.3. Project scope...............................................................................................................................
CHAPTER 2: FEASIBILITY ANALYSIS..........................................................................................
2.1 Market Analysis:..........................................................................................................................
2.1.1 Demand:..............................................................................................................................
2.1.2 Customers:...........................................................................................................................
2.1.3 Market competitors:............................................................................................................
2.2 Cost analysis:................................................................................................................................
2.3 Target Revenue:............................................................................................................................
2.4 Ideal Operation:............................................................................................................................
2.5 Franchise our restaurant:..............................................................................................................
CHAPTER 3: ALTERNATIVES FOR USING CAPITAL...............................................................
CHAPTER 4: CONCLUSION.............................................................................................................
REFERENCE.................................................................................................................................................
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LIST OF TABLE
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LIST OF FIGURES
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CHAPTER 1: INTRODUCTION
1.1. Project overview:
Bun Dau Mam Tom is a well-known traditional Vietnamese dish that has
captured the attention of food enthusiasts for its unique flavor profile and strong
cultural significance. Originally a popular street food in Northern Vietnam, the dish
has gradually gained widespread popularity across the entire country, evolving into a
versatile culinary option that appeals to a broad range of customers. Recognizing its
great potential, we decided to launch a startup restaurant around this dish. The project
is done based on the reference on a real case study of the Bun Dau Met – a restaurant
of Bun Dau Mam Tom in Ho Chi Minh city.
*Case study of Bun Dau Met:
Bun Dau Met is a successful Bun Dau Mam Tom restaurant located in Thu Duc
city of Ho Chi Minh city. This restaurant was established in 2018 with only
approximately 300 million VND of initial capital and then kept growing until this day.
Recently, its actual revenue is more than 3 billion VND per year.
The primary purpose of this report is to examine the feasibility of our project
on various aspects including the market, the capital, the maintaining cost, the
estimated revenue, etc. Furthermore, this report also explains the decision of opting
alternatives for using the capital. Thereby, it helps investors to understand clearly
about their investment channels.
1.2. Project objectives:
Before implementing a project, we must take a serious analysis on the
investment and maintaining costs of Bun Dau Mam Tom restaurant and the other
factors such as location, market price, competitors and potential customers. Thanks to
the case study, our own research (which will be described clearly in following chapter)
and the knowledge from Engineering Economy subject, we determine our objective is
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to establish and operate a Bun Dau Mam Tom restaurant in five years, with an initial
budget do not exceed 500 million VND, recover the capital after 1 year, make a profit
at around 1 billion VND per year after recovery and for further plan if the objectives
above is completed we will make our restaurant a franchise brand.Compare and
choose the suitable alternative for using our capital:
- Launch the business with your own money and save the spare.
- Save the capital in the bank and use the loan from the bank to launch the
business.
In addition, the project also tries to help investors analyze how to approach capital
appropriately, determine the break-even point and the risks that investors encounter
when investing in a restaurant.
1.3. Project scope:
When we do this startup, we want to assume that we are the founders of the
startup. To leverage venture capital, we need to solve the problem of what the business
is doing, how the market is doing, and what the future business prospects are. That
way, we can make the desired profit and raise enough external capital to support the
expansion of the restaurant system, the future commercial efficiency.
On the other hand, we consider the feasibility of opening a franchise, selling
the investment, and how to operate the business to make a profit.
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CHAPTER 2: FEASIBILITY ANALYSIS
2.1 Market Analysis:
2.1.1 Demand:
Daily Demand (Unit:
Type of Product
Servings)
Bún Đậu Mắm Tôm 250
Nem Rán (Spring Roll) 50
Bún Chả 30
Chả Cốm (Green Rice Pork Sausage) 20
Trà Chanh (Lemon Tea) 40
Total 390
Ratio between Bun Dau Mam Tom and total
0.641
revenue
Table 1: Real Data from Bun Dau Met in Thu Duc city
Based on a recent survey and practical observations at Bun Dau Met, the
approximate ratio of the demand for Bun Dau Mam Tom over the demand for all
products is 0.641. Using the average price for one serving of Bun Dau Mam Tom at
60,000 VND, the following table details the revenues and the demand for Bun Dau
Mam Tom from 2019 to 2023, including the impact of the Covid-19 pandemic.
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Demand for Bun Dau
Total Revenues Revenues from Bun Dau
Yea Mam Tom (Unit:
(Unit: Billion Mam Tom (Unit: Billion
r (1) Servings) (4) = [(3) * 10⁹] /
VND) (2) VND) (3) = (2) * 0.641
60,000
201
200 128.2 2,136,667
9
202 120 (due to
76.92 1,282,000
0 Covid-19 impact)
202 140 (slow
89.74 1,495,667
1 recovery)
160 (partial
202
demand 102.56 1,709,333
2
recovery)
190 (back to
202
near-normal 121.79 2,029,833
3
levels)
Table 2: The Revenues and the Demand for Bún Đậu Mắm Tôm Mẹt
from 2019 to 2023
Observations:
● 2019: Bun Dau Mam Tom had a strong demand with over 2.1 million servings
sold, generating significant revenue. This year served as a baseline for future
comparisons.
● 2020: Due to the onset of the Covid-19 pandemic, the demand for Bun Dau
Mam Tom fell drastically by nearly 40% as restrictions forced many restaurants
to close or switch to limited delivery services. Revenues dropped from the
projected 128.2 billion VND to 76.92 billion VND.
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● 2021: Although some recovery was observed, the demand was still
significantly lower than pre-pandemic levels, with only 1.49 million servings
sold compared to the projected 2.4 million. The slow recovery reflected
lingering health concerns and reduced foot traffic in urban dining areas.
● 2022: With the gradual relaxation of social distancing measures and increased
customer confidence, demand improved further, reaching 1.71 million servings.
However, the market had not fully rebounded to pre-pandemic expectations.
● 2023: The demand for Bun Dau Mam Tom reached approximately 2.03 million
servings, indicating a return to near-normal levels. The recovery in 2023 was
attributed to a full return of dining services and increased promotional efforts
by restaurants to attract customers back.
Table 3: Forecasted Demand for Bun Dau Mam Tom from 2024 to 2026
(Unit: Servings)
2024 2025 2026
Year 2019 2020 2021 2022 2023 (Forecas (Forecas (Foreca
t) t) st)
Dema 2,136,6 1,282,0 1,495,6 1,709,3 2,029,8 2,300,00 2,550,00 2,800,00
nd 67 00 67 33 33 0 0 0
Analysis and Projections:
● The demand for Bun Dau Mam Tom is expected to grow steadily in the post-
Covid era, reaching approximately 2.8 million servings by 2026.
● Strategic adaptations such as expanding delivery services, improving safety
protocols, and enhancing customer experience will be crucial for sustaining and
boosting demand.
Although this demand research is just based on only one case study, thanks to that
we can partially estimate the demand of the whole market. The demand for Bun Dau
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Mam Tom has always been a significant number, and this number is reckoned to keep
increasing time by time.
Indeed, the analysis and forecast show that Bun Dau Mam Tom is a ideal subject to
start a business, since the demand for it seems to be very considerable.
2.1.2 Customers:
● Traditional & Local Customers: First and most probably the steadiest group are
traditional and local customers who have always come with a mixture of
travelers and tourists. These are usually customers in their middle-age or
retirement age group, loyal to Bun Dau Mam Tom for decades. They love it
because of how genuinely true to the original khaana feels and nostalgia
attached to having eaten something similar on the streets before. Quality of the
mắm tôm (fermented shrimp paste), one part has a refined taste bud on it….
They are more likely to favor establishments with a focus on authenticity and
using traditional methods of preparation, thus having little interest in such
trends or fusion versions of the dish.
● Young Urban Professionals and Students: A burgeoning aspect of Bún Đậu
Mắm Tôm is with young urban professionals and local students, who see the
dish as a fast, cheap, delicious fare. Usually from cities like Hanoi, Haiphong
or Da Nang… these are people born between 1981 and 2003 (a subgroup of
millennials). They like the dish for how it is texturally interesting and fun to eat
with a group of friends. They eat out for both the food and the social relevance
that comes with eating. This younger generation is courted with visually
stimulating plating, IG ready settings, and more sophisticated dipping sauces;
Many restaurants focused on this demographic segment offer modern
garnishing in hopes to attract the interest of the young millennial customer.
They are also more open to fusion versions—say with other proteins or plant-
based alternatives to the traditional mắm tôm.
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● Expatriates and Tourists: In recent years, Bún Đậu Mắm Tôm has also become
popular with expats and tourists looking for authentic Vietnamese cuisine and
for these customers, this dish is not only about its taste but its culture is another
factor. Restaurants targeting this group tend to offer softer mắm tôm or other
dipping options, as the former can smell the strong aroma and flavor of shrimp
paste emphasizing Cleanliness, explanation and a brief introduction to the
history of the dish to enhance the dining experience of international customers
are also emphasized. Also, this section values restaurants that serve English
menus and have staff who can explain the ingredients and food customs
associated with Bún Đậu Mắm Tôm.
After analyzing the above factors, our group decided to choose students as
potential customers for the following reasons: Reasonable price is the most
important factor for students, because they often have limited budgets. With
prices ranging from 50,000 VND to 60,000 VND for a meal, our group's
business will be a suitable choice for students' budgets.
In addition, our group's business location is in the Ho Chi Minh University
Village area, where many universities are concentrated. That further reinforces
the reasonableness of identifying students as potential customers.
2.1.3 Market competitors:
● Street Vendors and Small Traditional Shops: The traditional market for Bún
Đậu Mắm Tôm has long been dominated by small, family-owned shops and
street vendors. These businesses typically offer a no-frills dining experience,
focusing on affordability, authenticity, and the traditional flavor of mắm tôm.
Their key competitive advantage is their deep understanding of the traditional
preparation methods and long-standing reputation within local communities.
However, these smaller players often face challenges in maintaining
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consistency and scaling up their operations, making them vulnerable to larger
competitors with stronger financial backing and marketing strategies.
● Specialty Franchises: In recent years, specialty franchises like Bún Đậu Mắm
Tôm A Tùng and Bún Đậu Homemade have emerged, offering a standardized
and modernized version of the dish. These brands emphasize a consistent
quality and a clean, comfortable dining environment, which appeals to younger
customers and families. With their organized business models and ability to
maintain quality control across multiple locations, these franchises are steadily
capturing market share. Additionally, their investment in marketing, social
media presence, and attractive restaurant designs has made them formidable
competitors, particularly in upscale and densely populated areas.
● Modern Cafes and Restaurants: Upscale cafes and restaurants have also started
to include Bún Đậu Mắm Tôm on their menus, catering to an entirely different
customer segment. They focus on presentation, ambiance, and a more diverse
menu that includes fusion options, such as vegetarian or gluten-free Bún Đậu
Mắm Tôm. These businesses are targeting health-conscious diners and
expatriates who may not be accustomed to the strong flavors of traditional mắm
tôm. While they may not be the primary players in the Bún Đậu Mắm Tôm
market, they pose indirect competition by offering a differentiated product that
appeals to specific consumer segments.
Conclusion:
The Bún Đậu Mắm Tôm market has diversified a lot, with all kinds of stores
competing for different segments of audiences: traditional street vendors, the nephew's
franchises, modern cafes and even online delivery services! Hell. Even small family-
owned shops use authenticity and word-of-mouth (rather than a national image) to
establish a local reputation when specialty chains of franchises that either have quality
control (like In N Out) or marketing dollars (like Shake Shack or Five Guys) push
back. The fusion fare of refined cafe culture is spreading with the delivery adoption
among Indies and major operators alike to cater to the calorie-conscious crowd.
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Consequently, the market is growing more heterogeneous and competitive as each
actor embraces various tactics to grab its part.
2.2 Cost analysis:
2.2.1.Variable cost
Variable costs are business expenses that are associated with the number of goods or
services produced by the business. The variable costs of Bún Đậu Mẹt are listed as
followed:
● Material expense:
Many experts believe that the golden ratio for calculating the cost of food is 35%, of
which the cost of raw materials and other expenses (Tofu,meat, etc.) is 35%, and the
profit is 65%. Since this ratio is widely used in the F&B industry, we choose this ratio
to approximate the ingredient cost of the material cost.
STT Categories Quantiti Cost Total
(vnđ/kg)
1 Tofu 200 2,500 500000
2 Pork 7 100,000 700000
3 pork uterus 4 85,000 340000
4 Fried nugget 6 90,000 540000
5 Vegetable 6 25,000 150000
6 Papaya 3 7,000 21000
7 Carrot 1 12,000 12000
8 Spring roll 150 3,000 450000
9 intestine 4 85,000 340000
● Marketing expenses
Bún Đậu Mẹt’s marketing expense is divided by two ways: online through launching
advertisements on Facebook and offline through campaigns in conjunction with
advertising agencies when launching new products.
Online Marketing Create Fanpage, website, run 5.000.000
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expenses FB ads, GG, Zalo…
Register food Grab, Gojek, 4.000.000
Shopeefood, Loship, Baemin
Offline Marketing Print leaflets 150.000
expenses
2.2.2Fixed cost:
● Application expenses:
STT Job Estimated expenses Note
1 Finding suitable area
2 Name the restaurant, make a 4.000.000
logo, print table menus, wall
menus, and aprons
3 Name the restaurant, make a 4.000.000
logo, print table menus, wall
menus, and aprons
4 Decorate, re-arrange and re- 60.000.000
arrange appropriately, install
electricity, water...
5 Install internet, cameras 10.000.000
6 Install shelves 20.000.000
7 Install freezers, cooler 25.000.000 1-2 freezers, 1 cooler
8 Install fans 5.000.000 6-10 fans
9 Install table and chairs 25.000.000 25-30 pairs
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10 Buy kitchen intensils 30.000.000
11 Contigency cost 60.000.000 Included premises and
employee salary cost
Total 302.850.000
Note: The above costs do not include a reserve of about 10-20% for additional costs +
Cost of importing raw materials for sale + Maintenance costs for the first 2-3 months
of not getting used to customers. Calculate the break-even point and initial profit
point. Calculate the breakeven amount per day.
● Employee expense
By collecting real data,our team estimate that Bún Đậu Mẹt will have 5 staff
member:
Position Salary
Manager 12.000.000
Chef 8.500.000
Cook assistant 7.000.000
Waiter 6.5000.000
Dish washer 6.500.000
Total 40.500.000
● Operation cost:
Cost Monthly expense Daily
Premises 16.000.000 533.333
Employee expense 40.500.000 1.350.000
electricity, water and 10.000.000 133.333
internet costs
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Others cost 4.000.000
Total 70.500.000
2.3 Target Revenue:
2.4 Ideal Operation:
2.5 Franchise our restaurant:
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CHAPTER 3: ALTERNATIVES FOR USING CAPITAL
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CHAPTER 4: CONCLUSION
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REFERENCE
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