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ACKNOWLEDGEMENTS

This business plan has been possible with the direct and indirect help of a number of people. I would be failing in my duties if I do not express my gratitude to all of them. First, and foremost I would wish to thank Nirma University for giving me an opportunity of making a business plan which has enhanced my skills and given me a concrete path to work on. My heartiest thanks are to my faculty Prof. Sumeet Arora for her continuous facilitation and guidance. She guided me on every step which helped me thoroughly to prepare this plan. I thank mam thoroughly for her unconditional support. My thanks are due to the various respondents of my market research for taking their time out and responding to my questionnaire. My sincere thanks are to Mr. Narendra, Owner of Hotel Shiv, Gandhidham for providing inside information about various workings of a restaurant. I would also like to thank Mr. Parimal, Ahmedabad who helped me during the idea conception and development. I want to thank my father who helped me getting valuable information about Gandhidham as we have our family business over there. I would also like to extend my thanks to all my colleagues and friends in Nirma and outside who has been a great support and help throughout the planning and development of idea.

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A. EXECUTIVE SUMMARY
OREGANO a multicuisine restaurant is a 60 seat fine dinning restaurant. We focus on our multi cuisine menu with a touch of Indian influence. This restaurant will be located in the booming, and rapidly expanding, city of Gandhidham. The area where it will be located is a warm and friendly place and we will provide excellent food. A place where people will always know they will get the best of everything. Oregano Restaurant will feature a cozy dining room. It will be the perfect place to stop in for a bite to eat, for a drink or for a small business meeting. For extra comfort and to please a large group of people we will make up special platters for customers. The menu will change every 3-4 months but keep the favorites. Prices will be competitive with other upscale restaurants in the area. However, it is the strategy of Oregano Restaurant to give a perception of higher value than its competitors, through its food, service and entertainment. The restaurant will be open seven days a week. We will offer special theme nights to attract new customers to Oregano. The restaurant will be fine dining in a cozy atmosphere. Warm colors, fresh flowers, soft music, candles and amazing art work from some of the areas most notable new artists. This will contribute to a sense of community and give new artists a chance to show their work for a diverse clientele. The service will be relaxed, very friendly and correct. We will hire the best people available, training, motivating and encourage them, and thereby retaining the friendliest most efficient staff possible. Most important to us will be our financial success and we believe this will be achieved by offering high-quality service and excellent food with an interesting twist. We have created financial projections based on our experience and knowledge of the area. All in all, looking at all these prospects we firmly believe opening this restaurant will be fully justified.

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B. BUSINESS MODEL
Unique is the word that best captures OREGANO, a food villa where you will find harmonious blend of cuisine, impeccable service and space.
Oregano is a multicuisine restaurant which will be located in Gandhidham catering to the needs of each age group in the city. The area where it will be located is a warm and friendly place and we will provide excellent food. The restaurant is not only about food, its also about providing a place for youngsters in the city to hang out, place for industrialist in the city to have business meeting ,a family to have a private dinner and the first choice of everyone who wants to spend wonderful evening out. Gandhidham is a booming, and rapidly expanding city of Gujarat with a population of nearly four lakhs growing every year at the rate of nearly 22%.Strategy of the restaurant will be to give higher value than its competitors through its food, service and entertainment. As, there is no as such high end restaurant in the city this will cater to the needs of people. Also people of Gujarat are very passionate about food, apart from this they are very keen to spend in restaurants. And, people of Gandhidham have good spending capacity and are very fond of food.

B.1 REASONS FOR SELECTING THIS BUSINESS


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Industry Indias Food and service Industry is of 2600 crores. It has been growing

tremendously every year. There was over 20 % growth in this industry in 2006.
Personal Interest My personal interest lies in Food Industry and wanted to open a

restaurant and so this came across as the perfect plan for my idea.
Attractiveness of the city - With a population of more than 40,00,00 and an important

industrial and business city of India and therefore perennially full of tourists and visitors , opening a multicuisine Restaurant will be a good idea. Moreover, Gandhidham is a balanced city and the hotel industry has always performed well despite any depression or competition. People here have a good spending power and are really fond of food.
Need in the city - There are a number of vegetarian hotels in the city but with a

colossal increase in the cosmopolitan crowd in the city there is dire need of multi cuisine restaurant in the city. As there is no such high end restaurant in the city this innovative theme restaurant will cater to this need of the people here.
Profitability - There seems to be high cash inflow and profitability in this business.

Moreover, there is no risk of bad debts since sales are only on cash basis.
Support of Family Business - We have a well established family business and this

would help me in initial set up and operations.


Preference of people - The people of Gujarat are very passionate about their food and

besides enjoying their own food, they are also known for spending a lot in restaurants. Gandhidham is one such place in Gujarat where every man, from the chairman of a large corporate house to the doorman of a hotel, must take his family out for dinner!

Because of all these reasons, a restaurant with live counter and theme music proves to be highly successful when put up in a practical way.

B.2 REASON FOR SELECTING GANDHIDHAM FOR RESTAURANT

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I find Gandhidham to be full of life and activity at all times. The hustle and bustle of daily life coupled with the need of the people for entertainment is an interesting combination I observed here. The people of Gandhidham have an insatiable appetite for food and their love for variety of cuisines is note worthy. Gandhidham came across to me as the perfect place to start my dream project, Oregano Restaurant with uniqueness in it. Also, Gandhidham as a city is flooded with business and industries. Rs 100,000 crore has been invested because of SEZ and various incentives provided by government after the earthquake of 2001. It is a city with peace and maximum prosperity. Kandla port at a distance of a 14 Kms and Mundra port at a distance of 60 kms from Gandhidham is a major industrial hub and attraction. Population of Gandhidham is 4 lacs but taking into consideration the nearby areas like Bhuj, Anjar, Mundra which lacks a restaurant so I will have people in quantum with a total population of 1 million. Moreover, there are 25 restaurants in the city till yet ranging from 4 star to small restaurants and having a dinning capacity of not more than 50 people so at a time only 1250 people can be served but the population is 1 million which shows there is a huge scope for a restaurant. Apart from this barring few restaurants there is no one serving reliable and esthetic food. In addition to the food loving people and prospects , in my conversation with my father I am able to convince him to start the project seeing the growth in this sector. All the above reasons make Gandhidham a viable option to open up a restaurant since it boasts the required environment as well as customer base.

C. MARKET ANALYSIS
C.1 INDUSTRY OUTLOOK
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FOOD INDUSTRY IN INDIA


Consumer foodservice value sales grew at a strong 14% in India during 2006, second

only to that of Vietnam and Indonesia. A robust economy which put more money in the hands of consumers and leading to growing disposable income, increases in the number of working women, and the convenience offered by these outlets all contributed to growth in 2006. Most consumer foodservice outlets have introduced delivery services as well and this has also helped value sales to grow. Catering to the bottom end of the income pyramid, street stalls/kiosks is the most common type of consumer food service outlet in India, followed by the ubiquitous full-service restaurants.
Witnessing value growth of over 20% in 2006, India saw the most dynamic growth within

hotel industry in Asia Pacific during 2006, with most other countries witnessing singledigit growth. Increased availability, novelty in terms of products and offerings, and convenience were all factors driving fast food growth in India during 2006.
Estimate says that there are at least 140,000 restaurants in urban India.

While the number of conventional restaurants ranges between 15-20 numbers per Lac of population.
It is estimated that total number of restaurants can touch 200000 in year 2010 and 280000

by 2020. There are almost 1.85 million people working in restaurants across India.
Employment is forecast to increase to 2.73 million by year 2020.

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HOSPITALITY SECTOR OF INDIA There are about 20,000 hotels in India in the organized sector, accounting for about 5 lac hotel rooms. Foreign tourist arrivals in India have been hovering around 2.5 million for the last five years. In 2003, with 2.72 millions tourists, growth was at 14.3%. In calendar year 2004, foreign tourist arrivals reached the figure of 3.37 million, showing a growth of 23.5% and India crossed the magic figure of 3 million foreign tourists for the first time. Foreign tourist arrivals are expected to achieve a healthy growth of 15% in 2005, reaching a figure close to 4 million tourists. Visitors include those on business, leisure and persons of Indian origin with foreign passports. Not included are Non-Resident Indian (NRI) travellers, who account for about 0.5 million each year. Similar growth is foreseen to continue for the next few years. The World Tourism Organization (WTO) and other knowledgeable experts are predicting that India, together with China and other countries in the Asia-Pacific region, may achieve an average growth of 12% per annum in tourism for many years to come. Apart from international tourists, there is a huge domestic tourist market in India , including business and leisure travelers. This is estimated at some 300 millions tourists or tourist trips a year, which may also include those traveling for social and religious purposes. The industry expects a boom in tourism in the domestic sector in India , and a growth of 10% to 15% over the next few years. A growth in tourism will certainly lead to a boom in hotels and restaurants. In the last two peak seasons of 2003-04 and 2004-2005, there was a shortage of hotel rooms in the major cities and tourist destinations. This shortage is continuing at a more acute level in the current peak season of 2005-06. This is already resulting in a high level of activity in construction of hotels, and a boom in the restaurant sector. There was modest growth of 4%-5% in the approved hotels category during the period of 1990 to 2002. However, a steady growth of about 10% in new hotel projects is expected for the next few years.

RESTAURANTS IN GUJARAT:

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Gujarat ranks 5th among all states in India in terms of the total number of restaurants.
Growth rate in restaurant industry in the state is 12% per annum. There is a lot of opportunity for growth in this target population because

Gujaratis are

known as Food Lover. At all the income levels especially at the middle and the upper level, disposable income is tremendously increasing in this state and also the number of Business Class consumers is increasing, due to The corporate boom.

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STAND-ALONE OUTLETS DOMINATE VALUE SALES

Of the total consumer foodservice value sales in India during 2006, 80% was accounted for by stand-alone outlets. That said, retail, travel and leisure locations continued to chip away at the contribution of stand-alone outlets that year. Retail outlets have gained in popularity by virtue of their being seen by consumer foodservice players as high footfall locations. On the other hand travel locations such as airports and railway stations have gained prominence as these provide the best means of following the increasingly mobile consumer.

With a constant value CAGR of 8% between 2006 -2011, consumer foodservice in India is predicted to witness one of the fastest growth rates in Asia Pacific. During the same period, more than 500,000 outlets are predicted to be added, taking the total number of outlets in India close to 2 billion and second only to China in this region. While new domestic players are likely to make their appearance, a host of international companies are also expected to enter India. Some of the prominent brands which are predicted to make their foray include Starbucks, Burger King and Churchs Chicken. The existing brands, such as Caf Coffee Day, McDonalds, KFC etc, have also lined up expansion plans to move beyond the metro cities. As players continue to build strong regional brands, the franchising of outlets is expected to become more commonplace over the forecast period

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C.2 TARGET MARKETS


Characteristics of target market Depending on the market research conducted by us we concluded that the market for Oregano Restaurant will cover a large area of diverse and densely populated groups. It will be located in the heart of the city which is convenient for the people to come and is frequently visited by tourists. It is also an area known for and catering to the demographic group we are targeting.

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a) Critical Needs The people of Gujarat are very passionate about their food and besides enjoying their own food, they are also known for spending a lot in restaurants. Gandhidham is one such place in Gujarat where every man, from the chairman of a large corporate house to the doorman of a hotel, must take his family out for dinner! Gandhidham is a balanced city and the food industry has always performed well despite any depression or competition. People have a good spending power and are really fond of food as mentioned earlier. There are a number of vegetarian restaurants in Gandhidham. but with a colossal increase in the cosmopolitan crowd in the city there is dire need of multi cuisine restaurant in the city. As there is no such high end restaurant in the city this innovative theme restaurant will cater to this need of the people here. b) Extent to which these needs are currently met Currently there is no as such restaurant which provides live counter or theme music neither any of the restaurants except few serves reliable and esthetic food. So in relation to the demand, the sources for need fulfillment are very scare which gives ample scope to us. c) Purchasing decision makers and influencers For our business the decision maker and influencer could be anyone, be it housewife, men or even the children as everyone like to eat out. The restaurant will serve a wide range of clientele from the youngster to the family visitors. So the influencer would be all these people at different times. This concept will offer customers variety, offer multiple dining and entertainment options within a single establishment.

d) Seasonal trend
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In a restaurant there is no specific season where there will be more foot falls. But during season time, like diwali festival the rush will be more in the restaurant as people prefer to eat out more during that time. Apart from that, major revenue will come from the weekends as people go out to eat more during weekend.

C.3 TARGET MARKET SIZE


a) Number of prospective customers The theme restaurant Oregano will attract four different customer profiles which can be classified into primary and secondary target markets.
Local population and nearby areas: Gandhidham has a population of 4 lakhs and

is a important industrial and business city of India. Nearby areas such as Adipur, Bhuj, Anjar and all are also prospective with no such restaurant in the areas.
Local businesses: Gandhidham is an important industrial and business city. With

more than 100,000 crore of investment made there it will give a great scope.
Ports in the region: Kandla and Mundra port nearby Gandhidham will give many

customers with increasingly number of industries coming there.


Schools and colleges: Gandhidham has more than 10 schools and colleges. These

have large student bodies.

b)

Primary target

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Youth: The student: Youth of the city which constitutes a large share will be attracted towards this restaurant with live counters and lively interiors. They will be keen on hanging at such place. Youngsters: The ambience of the restaurant and tasty cuisine will attract the youngsters of the city.
Business executives: It will attract the business associates and executives to have

their lunch and business discussions.

C.4 MARKET PENETRATION


The population of Gandhidham is about 4 lakhs. Timings of my restaurant will be from 11 a.m. to 3 a.m. and 7 p.m. to 11 p.m. If I assume, that maximum 45 min to 1 hour is needed by people to have their food and with a maximum dinning capacity of 60 persons 4 rounds can be taken in morning and evening both. So installed capacity of a day will be 500 customers. The figure is on the conservative side looking at the end of the city, location of our restaurant and industries in the city.

C.5 PRICE MARGIN TARGETS


In the hotel industry, there is generally a common price level for similar types of restaurants so as to maintain uniformity in the industry. Hence, we too have based our price not in conformity with the cost but on the same price level as that of the competitors, like Petals and Bricks. We have kept our prices slightly lower than those of the competitors so as to attract customers and to penetrate rapidly in the market in the maiden year.

C.6 METHODS BY WHICH SPECIFIC MEMBERS OF THE TARGET MARKET WILL BE IDENTIFIED
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Apart from the general public which will be our primary customer base we will be targeting some specific groups such as government and local businessmen. For this trade directories and general directories will be used.

C.7

MEDIA

THROUGH

WHICH

COMMUNICATION

WITH

SPECIFIC MEMBERS WILL BE DONE


Various mediums will be used for communicating the opening of our restaurant and making our presence felt. Broadly the mediums used are as follows which are explained in detail in marketing and sales activities section: Print media: This will include newspapers and brochures. Radio advertisement Hoardings Internet Cable Public relation Publicity All this and other strategies will also be used.

C.8

SECONDARY TARGET MARKET


The secondary target market will include the following groups:

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Local businesses: Gandhidham is an important industrial and business unit.

Rs 100,000 crore has been invested their because of SEZ and other incentives given by the government after the earthquake of 2001.
Government officials their meeting.

D. MARKET TEST RESULTS


D.1 POTENTIAL CUSTOMER CONTACTED

Elements: males or females above the age of 15 visiting the restaurant


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Sampling units: People of Gandhidham and nearby areas coming there Extent: Gandhidham city Time: November and December 2008

D.2 OBJECTIVE OF THE SURVEY


To ascertain the need and various aspects of marketing strategy for the OREGANO restaurant in Gandhidham The various research objectives included:
To identify the need of such a restaurant in the market. To ascertain the feasibility of such concept in the market. To find the target market for the restaurant. To ascertain the price that the consumer will wish to spend. To identify the different usage Reasons (Need State) which would induce them to

visit such a restaurant.


To find the right mediums for Promotion strategy to be developed.

D.3 INFERENCES
The dinning experience: Customer satisfaction with food and service has been and continues to be of utmost importance, but our findings indicate that the dcor, lightining, concept and other options to improve the dinning experience are also factors in customer

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decisions. OREGANO takes all these factors into consideration for the design of this cosmopolitan restaurant. New experience: Our finding indicated that there are restaurants but none of them except few offered esthetic and reliable food. People are looking for a place which can offer something new in a different way. Also, live counter service will be a new attraction for the clients. Reasonable prices: This was no surprise given the economic tide. Although, the restaurant industry as a whole has seen growth in the recent years, customers are demanding value for their dinning. OREGANOS menu is priced at a mid tier level which attracts upper middle and higher class. Some other findings: From the survey I found out that people of Gandhidham are very found of eating out and spending on it. Even youngsters, want a place where they can hang out. Almost 70% of the people surveyed said that they want to try different cuisine and have taste for it. Almost all the people showed their eagerness to visit a restaurant which provided something new and different. Even business executives, faced a lot of problems in dinning so they also expressed a need for a restaurant.

E. COMPETITION OVERVIEW
E.1 MAJOR COMPETITORS

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There are not as such many restaurants in the city but still if we consider there are 25 restaurants ranging from 4 stars to the very small restaurant in the city with not more than dinning capacity of 50 persons. And these restaurants mainly serve Guajarati or Punjabi food. The main competition that will face will be from: Petals of Hotel Shiv Bricks of Grand Shiv Gangoor of Holiday Village Resort One thing is there is no as such stand alone restaurant in the city so it will give me a First Mover Advantage.

E.2 SWOT ANALYSIS


1) STRENGHTS:
The concept is new and different for the people of Gandhidham. So we will get the

first mover advantage.


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The chef and staff of the restaurant will be experienced and proficient.

The menu which includes variety and multicuisine is not offered by many other restaurants in the city. It will be an exclusive place for organizing theme parties which will be an added strength. Our restaurant will have a capacity and ability to serve a large clientele. It will be a place that could serve a large clientele from the age group of 15 to 50. This will be a place for youngsters as well as family oriented people. The place (Gandhidham) is developing and this is the reason why many other brands are also coming to the city. People here are fond of food and spend on food. They have liking for food and also a taste for good food. They are also very experimental and are fond of trying new cuisines. This will give us an edge over others by offering new cuisines. Since my family is also based in Gandhidham, I will always have a kind of support whether it be financial or others which will be an added strength for my restaurant. My cousin brother. Has just completed his hotel management from Australia, so I can always seek his advice and look upon him for any kind of help.

2) Weakness The capacity of 60 seems to be less, but at present due to cost constraints we cannot expand right now. Due to the variety in the menu, their will be a need for highly qualified chef which is difficult to get. Potential of city is limited due to which gestation period can be longer. This is something very different from own family business, and as such I dont have any knowledge or experience in this field.
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3) Threats New competitors that would come up but seeing the success of the venture. Resistance of the people to accept the new idea. More health conscious consumers. 4) Opportunities Growing dinning out market. Expansion in other cities Coming out with a hotel later because the city needs it. Starting the concept of franchise. Starting outdoor catering services.

E.3 BARRIERS TO ENTRY INTO THE MARKET


a. Cost: The cost of that project is not so high and revenues will also be generated quickly

because there are no as such bad debts in this business so cost will not be a barrier for us.
b. Time: There are right now no major players for the services which will offer. So the time

right now is apt and we can take advantage before it becomes a barrier.

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c. Technology: There is no technology required in this business except the live counter

service. I will keep highly qualified chef and they will act as a barrier for other restaurants.
d. Key personnel: This can act as a barrier because highly qualified chef and staff will be

needed. If we do not retain them it will act as a barrier for us.

F. COMPANY DESCRIPTION
F.1 VISION:
To be the best concept restaurant in the city of Gandhidham for providing the best services.

F.2 MISSION:
OREGANO is a trendy and healthy place to eat, combining an intriguing atmosphere with excellent, interesting food that is also good for the people who eat there. A rewarding place for employees, which is reflected in their service delivery.
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F.3 NATURE OF THE BUSINESS Unique is the word that best captures OREGANO, a food villa where you will find harmonious blend of cuisine, impeccable service and space.
OREGANO the multicuisine restaurant will be one of its kinds in the city catering to the needs of each age group in the city. The area where it will be located is a warm and friendly place and we will provide excellent food. The restaurant is not only about food, its also about providing a place for youngsters in the city to hang out, place for industrialist in the city to have business meeting ,a family to have a private dinner and the first choice of everyone who wants to spend wonderful evening out. Gandhidham is a booming, and rapidly expanding city of Gujarat with a population of nearly four lakhs growing every year
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at the rate of nearly 22%.Strategy of the restaurant will be to give higher value than its competitors through its food, service and entertainment. The spatial and menu divisions will broaden our appeal and provide our customers with different experience each time they visit.
1.

Design of the restaurant: The specialty of the restaurant will be its Moving Live Counter Service. The restaurant will provide custom made food as per the choice of the customers, prepared live in front of them. The best part will be that the customers would not have to go to the live counter and stand till the food is being prepared. Instead the live counter trolley will be moving around in the restaurant and will come to the table of our customers and prepare food live.

2. Methods of need satisfaction:

OREGANO is focused on servicing Gandhidham growing demand for a multi cuisine eating experience. For lack of a better term we are launching a multi-ethnic cuisine restaurant a restaurant concept that responds to need for selection and choice. OREGANO is also keen on providing international cuisine one day a week in its menu. The upper middle class and upper class demographics of Gandhidham fit this concept perfectly.
3. Individuals/organizations with the needs

In a city like Gandhidham, everyone from age of 10 to 60 is fond of food. We are targeting the upper middle class and upper class demographics of Gandhidham, which
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would fit this concept perfectly. Also as it is a industrial hub it would attract various organizational executives for business meetings and lunches.

F.4 DISTINCTIVE COMPETENCIES:


1. Superior customer need satisfaction:

By the continuous innovation, and taking into the account customers needs and preferences all efforts will be made to satisfy the customers. Feedback of the customers will be taken into account and changes will be made accordingly.
2.

Quality efficiency

As far the hospitality sector is concerned, a business can flourish if and only if it serves high quality food. Considering the importance of quality, the restaurant will never compromise on the quality aspect even if has to make an adjustment on costing. It will also fulfill the hygiene standards set by the Municipal Corporation. Food catering service deals mainly in perishable items and is thus vulnerable to degradation of quality. Thus, necessary steps will be taken so that the quality of food is maintained at its highest level. For the purpose, the restaurant will satisfy all the conditions of PFA [Prevention of Food Adulteration] and BPMC [Bombay Provincial Municipal Act sec. 376 (1)].In order to make sure that the quality aspect is given prime importance, a strict eye on each and every step from procurement of raw material to the serving plates will be kept. Rules will be set up regarding the use of raw material for the cooked items which will include:

The usage time of bakery items shall not exceed more than 2 days of their manufacturing.

Fresh vegetables will be used daily so that nutritional value of food is maintained.

Proper care will be taken in storage and usage of milk.


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The cooking and serving utensils shall be cleaned properly and stored in such a

way that they remain free of germs.

The storage as well as the washing area will be cleaned regularly so that they remain disinfected from germs and insects.

The kitchen staff will strictly follow cleanliness. The restaurant will be equipped with 2 Aqua guards so that clean disinfected water will be served. The coolers for storing water shall be cleaned daily. In this way, ample emphasis will be given to quality.

3.

Personnel:

The restaurant will employ highly qualified and efficient staff. There will be a senior chef who is highly reputed and has immense experience in this field. He has been the chef of Taj and Mocha and is popularly known for introducing new and innovative dishes. Apart from that the managers and waiters will be given proper training and will be employed after they qualify the qualifications requirement. 4. Geographic location: The restaurant will be located in the heart of the city. It will be at location which is easily accessible from the various important spots of the city such as multiplex; it will be on way to Kandla port and very near to all the schools and colleges. Service will be available during the following hours: RESTAURANT TIMINGS: LUNCH: 11 a.m. to 3 p.m. DINNER: 7 p.m. to 11 p.m.
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G. MARKETING AND SALES STRATEGY


G.1 OVERALL MARKETING STRATEGY
To sustain in stiff competition during this recession period, we have planned certain strategies to boost our sales: In the initial few months we will emphasize a lot on the advertising factor to induce consumers to visit our restaurant and once they visit, a word of mouth will take care of the rest. Advertisement will be done keeping in line with the target market of the restaurant. The regular modes of advertising , newspaper , cables , radio and hoarding will be used as an external medium for two purpose: To make people aware of the coming up of the restaurant To regularly remind them of the themes and specialty cuisines offered by the restaurant. Word of mouth and In restaurant marketing will play an important role as this is the cheapest and the most effective way of marketing.

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Restaurant night: Every first Monday of the quarter will have a special evening

for the restaurant people. This will be a perfect night to discuss the market and food trends.
Wait area marketing: Persons who are sitting in the waiting area will be served

appetizers.

Other strategies will be:


We will be organizing theme parties for our guest. In this fast moving world, it will ease

the host from various tensions of organizing a party. Parties on important days like Valentines Day, New Year eve, friendship day and others will also be organized.
A loyalty card known as OREGANO card will be issued to the customers. On the next

visit they will get 10% discount and points will be added in their account depending on the amount of bill. Later on vouchers will be issued for these points. This will help us to better associate with the customer and create a bond with them. Customers would like to visit repeatedly because of the discounts they are getting.
I have also tied up with the leading stores in the city such as LEVIS, SPYKAR and

REEBOK that if the customers shop for more than RS 2000 they will get a discount coupon of 10% of the restaurants. This will help to increase the awareness of the restaurant and also increase the occupancy during the week days.
On the weekends, live guitarist will be there in the restaurant. We will employee a

magician and a tattoo person on alternate days in the restaurant. This will entertain the children and the very young crowd. This way they will be attracted towards this restaurant
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and induce parents to come to same place again. For youth combos will be prepared and also fixed lunch system will be introduced for their convenience and cost saving.

G.2 GROWTH STRATEGY


As we are into the food business we understand it well that the preferences of people changes very fast. Also the charm of the restaurant would reduce after few years. So we have planned the strategy for it from the beginning itself. We would operate this restaurant for 4-5 years after which we plan to start a hotel which is the need of the city. People of Gandhidham besides being fond of food also look for variety of food and experiments with new restaurants opening up. Gandhidham being a industrial hub, more and more people come here for various business reasons So all this helps to get a major market share of the city when we would open up hotel for which we would start processing after a year of experience. Till then we would have build our brand and also the advantage and experience of this restaurant will help us in starting the hotel. Also we have thought of tie up with some big group in the same line for expansion of the business which will be after 5 years of operation. This will help us to take the advantage of their brand and grow.

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G.3 DISTRIBUTION CHANNELS


Since we into the service business there are no distribution channels required as required in the manufacturing business. This is mostly of a direct selling. But all those nearby customers who want the delivery at their door step will be providing it free of charge in the area of 2 kms. Other customers can also enjoy the service but only if the minimum amount is of Rs. 400. DISTANCE(KMS) Within 2 kms Between 2 to 5 kms CHARGES Free of charge Free of charge if they order food for minimum Rs.400 More than 5 kms Rs 50 as delivery charges.

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G.4 PROMOTION

V.I.P Party: We will host a VIP dinner before the grand opening. This will serve

the dual purpose of training our staff and introducing ourselves to the community.

Brochures: We will make a brochure of the restaurant containing the pictures of

the menus and interiors which will be distributed to everyone and will help to create awareness among the people.

Government relations: There are several government offices we will approach

them to organize lunch for them. This will offer us a higher visibility for future functions and community events.

Private functions: Target marketing to businesses for regular business lunch and

dinner entertaining and private functions.

Editorial Visitation: Leading up to the Grand Opening, and over the first 6 months

of operations, we will invite the most influential reporters and editors from all local publications to OREGANO Restaurant in order to evaluate our menu, service , and atmosphere.

Publicity Revenues: We anticipate at least 10% of our annual sales will be

generated directly from our publicity. A full media kit will be sent to all local publications, and releases on new menu items will be made.

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G.5 ADVERTISEMENT Each and every firm uses this tool for marketing his business. Also I believe that right advertising always pays. In my business I would use this medium to reach out to my customer. At the same time there will be various determinants kept in mind while selecting the medium of advertisement , its budget , benefit and result. Objective: It is said that If you know where you are going then the journey becomes easier. Same would apply here. Being a start up firm our main objective of advertising would be to able to reach out to our customers and make them aware of the restaurant. This type of advertising is highly required in the pioneering stage so as to build primary demand. Restaurant business is flourishing but at the same time there is cut throat competition in this sector. So our advertisement will be a forum of persuasive advertising as it will persuade people to buy our services. It would not be enough to inform people about our restaurant , it will be equally important to keep the loyal customers reminded of the services and new attractions in the restaurant through our advertisement. Budget: Our firm is in the introductory stage of its Product Life Cycle. So, it requires huge advertising budget to build awareness and to gain consumer trial. Also, we have to advertise more heavily to be heard amongst the existing competitors in the market. The budget also increases because of more advertising frequency in the 1st year.

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Advertising Message: The advertising message should be desirable, exclusive and believable as well as focusing on more selling proposition. The following are some of the messages that will be displayed in our advertisements: 1. Come and Experience the Difference!! 2. Dine with spice!! The media for our advertising is newspapers, internet, hoardings and cable.
a)

Newspapers: Among the newspapers, I have selected The Times Of India

and Gujarat Samachar only because these are the two major newspapers in English and Gujarati respectively that reach out to the maximum numbers of readers that come under target market. The restaurant will be featured in the E-ting out column of The Times of India. At the launch party journalist of various newspapers will be invited for Dinner which will serve as a free medium to gain publicity when they will write about our new venture with an innovative idea.
b)

Internet: Here the non price techniques will be used to market our

restaurant. A blog site will be made by us where people can come and write. Also a community will be started on Orkut and Face book which are the two medium which are in rage amongst the people these days. For almost every joint there is a community here. This would be the easiest medium to give information regarding

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the menu, sconcept, new launch and customer feedback. We have contracted with local design teams to deliver a high-quality, navigable, constantly updated website.
c) Billboard Advertisement: One month prior to the opening, distinct bill board ads

will advertise the launch of the Restaurant.


d) Cable: We will advertise for 1 month on the citi cable to make people aware of the

restaurant.
e) Printed Material: Make a brochure for the in-town hotels and business

establishments to provide to their guests and staff, containing interior pictures of our restaurants.

G.6 PUBLIC RELATIONS


Critics' Choice: Prior to the Opening there will be two preliminary parties catering to the Media and Critics community. We will encourage the media and restaurant critics to meet at the restaurant and review the decor, service and food. This will be a preliminary review, where we will consider constructive input to make minor revisions prior to the true Grand Opening. This initial review and input will give critics and media commenters a stake in OREGANOS success, through their contributions to the final design.

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G.7 SALES STRATEGIES

1. Sales force As it is a restaurant business no sales force will be needed. It is the service that we provide which will help us in selling more and attracting our customers.

2. Sales activities Our strategy will be simple: we intend to succeed by giving our customers a combination of delicious and interesting food in an appealing environment, with excellent customer service, whether on their first visit or their hundredth. Our marketing strategies are designed to get critics and initial customers into our doors. Our sales strategies must take the next step and encourage customers to become repeat customers, and to tell all their friends and acquaintances about the great experiences they just had at OREGANO. New restaurants often make one of two mistakes: they are unprepared or under prepared for opening, and initial poor service, speed, or quality discourages customers from returning, or they spend all of their efforts at opening, and are unable to maintain the initial quality customers expect on return visits, decreasing word of mouth advertising and leading to poor revenues.

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OREGANOS sales strategy requires consistently high quality food, service, speed, and atmosphere. We can accomplish this by:
Hiring employees who genuinely enjoy their jobs and appreciate OREGANOs

unique offerings.

Continually assessing the quality of all aspects mentioned above, and immediately addressing any problems.

Interacting with our customers personally, so they know that their feedback goes directly to the owners.

Evaluating food choices for popularity, and keeping favorites on the menu as we rotate seasonal foods and specials.

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H. PRODUCTS AND SERVICES


H.1 DETAILED PRODUCT AND SERVICE DESCRIPTION
All preparations will be done considering consumers health and taste. Some preparations will be available in Jain also. Detailed description of the menu is attached in the annexures.
1. Ability to meet need: The hustle and bustle of daily life coupled with the need of the

people for entertainment is an interesting combination I observed here. The people of Gandhidham have an insatiable appetite for food and their love for variety of cuisines is noteworthy. Gandhidham came across to me as the perfect place to start this project because the city does not have a stand alone restaurant till now and also there is lack of multi cuisine served here. The menu that we have suggested satisfies both these needs.
2. Competitive Advantage: The concept is new and different for the people of Gandhidham.

This will be the first of its kind in the city. So we will get the first mover advantage. Oregano Restaurant will feature special and international dishes, an eclectic ambiance, and superior service. The menu which includes variety and multi cuisine is not offered by any restaurant which will give us edge over other restaurants. The Moving live counter service is also not offered by other players. This will also give us competitive advantage.
3. Services offered: Our food will be of the finest quality and prepared with exotic flare.

Customer satisfaction will be the driving force behind our success. We will make some changes in our menu every 6 months depending on the demand of our customer, but maintain the 'favorites' for loyal patrons. Portions will be modestly sized, garnished with stunning presentation. The kitchen staff will have the best in culinary education and work experience. Their creative talents will compliment one another. The restaurant staff will offer the finest service in an electric atmosphere and offer customers an extraordinary dining experience. Excellent service in serving, decoration and presentation will be given. Home delivery and
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parcel services will be handled with great care. Apart from this, whenever parties will be organized, special care of the client and their guest will be taken by us so that they have their best of the time.

I. OPERATIONS

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As mine is a service industry there is no as such operations which takes place in a manufacturing firm. But I am listing the equipments which will be required in my business and will form a part of operations. There will be lot of equipments required as inputs for our industry. These equipments will help us prepare the best quality food in the shortest period of time.

I.1 OPERATING EQUIPMENTS REQUIRED

As the restaurant will have a LIVE COUNTER and separate kitchen equipments will be required accordingly. . For this purpose, the following equipments are needed which includes mainly the kitchen equipment and music system. The details regarding them are as under:

1. AUTOMATED MACHINES: These machines will be imported by U.S.A which will be used for providing fuel in the Live counter trolley. This will prepare good quality food and also keep it warm.

2. OVENS: For the purpose of making pizzas as per requirements and for the restaurant

there would be a requirement of 2 ovens. Each will have the capacity for making pizzas 5 at a time. 1 another would be required to make baked food in the kitchen. For this purpose BAJAJ- 1602 T Oven will be used. It has function of baking, toasting, grilling, roasting and barbecuing. Pizza oven will cost 10000 and bigger one 20,000.

3. GRINDERS: 2 grinders will be required for grinding, crushing and chopping of food

being processed. For this Morphy Richards-Maestro grinder will be used which will cost 10000 each.
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4. LIVE COUNTER TROLLEY: There will be 1 live counter trolley required in the

restaurant, one for the Lounge and another for the full dining restaurant. The cost for which will be 50000 each.

5. GAS STOVES: There would be 3 gas stoves needed in the kitchen and 1for the Live

Counter area Sunflame- Regency will be used for the same. It has pilot or automatic ignition system with 4 gas burners and an oven with a gas heating system. It has combined oven and grill compartments with a capacity of 85 ltrs. Also included are features like interior light and timer. It has one double ring burner, one extra large & two large & one medium burners. This will cost 15,000 each.

6. FREEZERS: The restaurant would require 3 freezers out of which 2 will be used to

keep our vegetables and dairy items fresh. 1 will be for storing the deserts of the Lounge. For this I will purchase Whirlpool-Professional 405 L ELITE which is 405 litres, 2 door refrigerators with 121.5 litres freezer capacity and frost free. This will cost 35000 each.

7.

COOKING MACHINES: Special cooking machines will be used which will be imported and will be used to make best quality food. 1 such machines will be used.

8. TANDOOR: In the restaurant it is essential to have 2 tandoor for roties, nans, roomali

roties, etc. New tandoor will be built up every year, and its total cost including coal expenses amount to Rs. 2500.

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9. SET OF SPOONS, KNIVES AND FORKS: For the restaurant and fast food joint

there will be 400 units of spoons, knives.

10.

SOUP BOWLS AND SPOONS: We require 100 soup bowls and spoons to serve

consumers in the restaurant.

11.

TABLE CLOTHS AND NAPKINS: The cost of table cloth and napkins amount to

Rs. 30,000/- and since it is changed every year it is considered as a variable expense.

12.

SET OF PLATES: Around 250 sets of plates would be required in the restaurant.

13.

GLASSES AND JUGS: The restaurant would require around 500 glasses and 100

jugs.

14.

GAS CYLINDERS: To satisfy the fuel requirement, 15 gas cylinders would be

needed for which deposits amounting to Rs. 4000 per cylinder would be paid to gas agencies. The requirement per month is 55 gas cylinders which is enough for the fuel requirement.

15.

MISCELLANEOUS EQUIPMENT: Some other miscellaneous tools for kitchen

would be required which would cost Rs. 50,000/-. These will include all vessels for cooking.

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COST OF KITCHEN EQUIPMENTS: (Fixed Cost)

Particulars Live counter trolley Ovens (A) Ovens (B) Automated machine Cooking machine Tandoor Grinders Freezer Vessels Gas Stove

Quantity 1 1 1 1 1 2 2 3

Rate 50000 10000 20000 500000 130000 2500 10000 35000

Amount 50000 10000 20000 500000 130000 5000 20000 105000 50000

15000

60000
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Total

950000

LOOSE TOOLS

Particulars Jugs Glasses Set of plates

Quantity 100 400 250

Rate 100 15 100 50 10

Amount 10000 6000 25000 5000 4000 50000

Soup of bowls and set of plates 100 Spoons, knives and forks Total 400

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ELECTRICAL EQUIPMENTS

1. Computer: For keeping records of accounts and other activities like purchase orders,

one computer would be required. Other than that personal laptop would be used for storing data.

2. Air Conditioners: Like all other prestigious restaurants, efficient and powerful split

air-conditioner of 10 tons would be required. Bluestar-SCR-481SB will be installed

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which has this capacity. So two such air conditioners will be fixed. Each will cost 50000.

3. Exhaust fans: There will be 4 exhaust fans in the kitchen and 1 exhaust and 1 chimney

at the Live Counter area to have comfortable atmosphere for cooks as well as the customers in the restaurant.

4. Billing Machine: To serve the bills to the customers two billing machine i.e. computer

would be required.

5. R O Plant: To serve purified and safe water to customers, R O plant would be

installed.

6. Water Coolers: Two water coolers would be required to serve cool water especially in

summer season.

7. Generator: In case of power failures and to avoid any kind of disturbance in our daily

routine, we will have to keep a generator.

8. Printer Copier Fax: It will have the functions of scanner , printer , fax and copier

which will be used for the daily routine purpose. This will cost around 10,000.

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9.

LCD television: 30,000.

For entertainment purpose a L.C.D TV will be put up in the

restaurant, 1 of which will be required for the restaurant only. Each L.C.D will cost

10.

Music System: As the plan is to have a theme restaurant , emphasis will be given

on the music and having a good sound system. For the restaurant music will be managed through computer. But speakers would be installed, in all 8 small speakers will be needed in the restaurant.

11.

Mobile Phones: 3 mobile phone and connection will be required to give it to the

manager and the home delivery boy. Reliance connection will be taken for this.

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COST OF ELECTRICAL EQUIPMENTS

Particulars Air conditioner Computer Billing machine Music system Generator Exhaust Chimney Aquaguard Watercooler Print copier fax LCD Mobile phone Other equipments Total

Quantity 2 1 2 1 1 5 2 2 2 1 1 2

Rate 50000 25000 10000 500000 40000 1500 100000 6000 8000 10000 30000 5000

Amount 100000 25000 20000 500000 40000 7500 200000 12000 16000 10000 30000 10000 29500 1000000

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I.2 CAPACITY UTILISATION

(No. of customers)

Restaurant: No. of customers 60 per hour.

Time Duration

Hours

Capacity utilization

No. of customers

11 a.m. to 12 p.m. 12 p.m. to 3 p.m. 7 p.m. to 8 p.m. 8 p.m. to 10 p.m. 10 p.m. to 11 p.m. Total

1 3 1 2 1 8

50% 60% 50% 60% 60%

30 108 30 72 36 276

If we see the maximum installed capacity it will be 500 customers but in first year we just expect maximum 65% to be utilized. Capacity of restaurant can increase on weekends to 70%.

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I.3 SUPPLIERS

1. Fruit and Vegetable requirement: For this delivery will be made by OM PUJA

Vegetable shop. They are located in the main market and they supply to major restaurants in the city. Their terms and conditions are acceptable and their rates are reasonable. An initial 3 months contract will be made with them.

2. Bakery Products: Contract with DO NUTS will be made which is the best bread shop

in the city and again it supplies to restaurants like Petals and Bricks. Initially as per our requirement (shape, size) we will initiate contract for 3 months with them.

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J. MANAGEMENT PLAN
J.1 MANAGEMENT STAFF STRUCTURE
The strength of our management staff will position us for success. We will assemble a team that will embrace different disciplines, accomplished professionals with expertise in all areas of the business, including marketing and restaurant management. We all will be the part of Oregano family. A culture where everyone can associate them with the restaurant will be formed.

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GENERAL MANAGER

RESTAURANT MANAGER

SUPERVISORS

CHEFS

WAITER SSSSS

COOKS

Narrative description of the chart: The chart shows that there will be a Restaurant Manager who will take care of the restaurant. He would also take care of the parties and supervise the whole activities of the restaurant. He will take care of all the sections. He will be fully in charge of smooth operations and customer satisfaction. They will give order to the supervisors who will take the order and take it to the kitchen. He has to see that the food is served properly and most importantly on time. Than there will be the main chefs who will give order to the cooks. And waiters will be guided by the supervisors. Proper care will be taken by the supervisors to ensure that
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everything is in order and at the end, when customer goes he takes a good impression of the restaurant.

J.2 JOB DESCRIPTION AND JOB SPECIFCATIONS


RESTAURANT MANAGER Job description: He will be responsible for all the activities taking place in the restaurant. Responsible for Supervisors, waiters and kitchen staff of respective units. Functions: Planning of overall operations of restaurant, live counter and parties.

Budgeting of various resources


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Providing directions to all the people. Making and executing strategies regarding finance and marketing. Coordinating for better utilization of various resources. Introducing new schemes and attractions for the customers regularly. Planning for day-to-day operations of restaurant. Sourcing of raw materials. Coordination among supervisors, waiters and kitchen staff. Attending to customer complaints. Taking staff decisions Handling cash counter. Job Specifications: (Qualifications)

Hotel Management graduate Good command over English, Hindi and Gujarati languages. Experience: At least 5 years experience in hotel industry with 2 years of managerial level. experience at

Age: 22- 27 years. Salary: Rs 10,000 per month

2. SUPERVISORS Job description:


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Reporting to Respective Unit managers Responsible for waiters & kitchen staff Functions:

Taking orders and supervising services of waiters. Co-ordination among waiters and kitchen staff. Looking after availability of waiters at each table and customers being attended on time. Solving minor issues on the floor. Giving bills and collecting cash.

Job Specifications: (Qualification) Graduate from any discipline. Good command over English, Hindi, Marwari and Gujarati language. Dynamic personality and good communication skills. Experience: Not required. Age: 20 30 years. Salary: Rs 3000 per month.

3. Accountant: (Part Time) Job Description: Reporting to General Manager


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Functions: Basic accounting work for the firm. Preparing tax statements. Maintaining proper books of accounts. Job Specification: (Qualification)

Commerce Graduate passed with first class.

At least one year of experience in accounting field.

4. Waiters/Helper Around 10 waiters in restaurant will be required. They should be at least high school passed with pleasant appearances. They will be responsible to the supervisors and have the function of serving food and attending to customers. 5. CHEF (Restaurant) Job Description: Reporting to Respective Unit managers and supervisors. Responsible for cooks and kitchen staff. Introducing new recipes and maintaining high quality and excellent food taste. Functions:
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Supervise and train cooks in cooking delicacies. Submit list of day-to-day requirements to manager. Maintaining inventories and its proper storage. Job Specification. (Qualification)

Hotel management graduate Experience: At least 5 years experience in the field. Age: 25 40 years. Salary: Rs 10,000 per for each Restaurant chef.

6. COOKS: Four cooks for restaurant kitchen will be required who have cooking experience in restaurants and are experts at it. Salary: Rs 7500 per month. 7. Helpers, Cleaners and sweepers Salary: Rs 3500 per month [helpers} 8. Security Guards 2 permanent security guards will be kept who can also help in parking and crowd handling. Salary: Rs 4000 per month. 9. Disco Jockey (DJ) [ Part Time]
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This will be booked as per the party needs and budget.

J.3 LEGAL STRUCTURE OF THE BUSINESS


SOLE PROPERITORSHIP In the past also, this has been very successful in my family owned business and to avoid the future disputes and clashes I would like to go for Sole proprietorship. Further, there is no need of legal formalities with a small amount of capital also you can start the business. In this, I will be the only owner of all the profits. It enhances quick decision making and a better control over the business.

OWNER

1. Ms. Sonia Goyal

Qualifications:
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B.com from H.L. Institute of Commerce M.B.A (FB&E) from Nirma University

Percentage Ownership: 100% ownership in the business

Involvement in the company: I will have 100% involvement in the business. I will look after all the necessary aspects of the business.

J.4 PROMOTERS BACKGROUND

I am a second generation entrepreneur as I Belong to a business class family. My father is a business man and we deal in the manufacturing of consumer goods for Hindustan Unilver and various other businesses also known by the name of Shreeji Group in Gandhidham. Despite this, I am interested to start my own business as apparels industry is my field of interest.
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Promoters name: Ms. Sonia Goyal Educational qualification: B.com from H.L. Institute of Commerce M.B.A (FB&E) from Nirma University

QUALITATIVE ANALYSIS OF PROMOTER:

Strengths:

Being willing to learn Plan things well Strong leadership Good judgment Optimistic attitude Being passionate about what to do Weakness:

Less patience

Very short tempered Procrastination of things


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J.5 EXIT STRATEGY


It is very uncomfortable for an entrepreneur to think about the closure of the unit at the very start up stage. But exiting a business, according to me, is a very important art. You may exit the business and also make a fruitful exit for yourself and the person in charge for the further operations. The following can be some of the risks and reasons as to why the firm might not be useful in carrying forward: If the concept does not works out, and cost is not recovered than its better to invest somewhere else and recover the money.
The management does not have the skills and competencies to further run the business. The business might be run better by someone more competent. The management is not able to fight with the competition. The business is growing fast but the management is not competent enough to sustain the

growth. Under any of the above mentioned condition it is in the best interest of the firm to exit. The firm might undertake the following routes of exiting:
The firm might sell the organization to a competitor or some other player who is more

competent and willing The assets will be sold of and loan will be paid by taking money from own family business or earning money from some other business.

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K. FINANCIAL PLAN
K.1 FUNDING REQUIREMENT
Total cost of the project: SOURCES OF FINANCE: 1. Bank loan at 13.5% interest rate: 70,00,000
2. Owners fund:

1, 20, 00, 000

50,00,000

1, 20, 00, 000


It is very clear from the given particulars that our capital structure includes owner funds and a loan from any financial institution or bank. We have approached Mr. Harish Khona chartered accountant of our firm for the purpose of term loan at the interest rate of 13.5%.

K.2 USE OF FUNDS


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PARTICULARS

AMOUNT LACS)

IN

LAND

70,00,000

COST OF INTERIORS

15,00,000

KITCHEN EQUIPMENTS

10,00,000

ELECTRICAL EQUIPMENTS

10,00,000

WORKING CAPITAL REQUIREMENTS

5,00,000

PRE OPERATIVE EXPENSES

5,00,000

It is very important that we give special emphasis on our interior because a very good and novel physical ambience will definitely attract and impress the customers. In case of the restaurant, the interior will give a very formal and ethnic look since we are serving Punjabi cuisine in it. The furniture will have intricate carving and studded with velvet tapestry.

K.3 WORKING CAPITAL STATEMENT


WORKING CAPITAL STATEMENT FOR 4 YEARS
Particulars Perio 1st d In Year Days 2nd Year 3rd Year 4th Year 61 | P a g e

Ave. Capacity Utilisation Raw Materials - Indigenous Stores & Spares - Indigenous Goods In Process Finished Goods Total Inventories Sundry Debtors - Local Sales Cash & Bank Balance Working Expenses Other Current Assets Gross Current Assets Less: Current Liabilities - Creditors For Goods - Creditors For Exp. - Other Current Lia. Total Current Liabilities Net Current Assets

65.00% 15 30 0 5 2.52 0.25 0.00 1.52 4.29 2.98 18.20 2.15 4.21 31.82

65.00% 2.16 0.22 0.00 1.39 3.77 3.52 40.85 2.15 4.21 54.50

75.00% 2.52 0.27 0.00 1.59 4.37 4.02 70.74 2.40 4.86 86.38

85.00% 2.73 0.30 0.00 1.73 4.76 4.52 91.35 2.65 5.51 108.79

30

7 30

1.17 2.15 4.00 7.32 24.50

1.01 2.15 4.00 7.15 47.35

1.17 2.40 4.62 8.19 78.20

1.28 2.65 5.23 9.15 99.63

K.4 PROFIT AND LOSS A/C FOR 4 YEARS


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Particulars

1st Year

2nd Year

3rd Year 75.00 %

4th Year 85.00 %

REVENUE Average Capacity Utilization 65.00 (%) % Sales Revenue from restaurant Total Sales EXPENDITURE Raw Materials Consumption Stores Power & Fuel Salaries Maintenance Other Expenses Depreciation

65.00%

155.34 155.3 4

183.39 183.39

209.64 209.6 4

235.89 235.8 9

Total Cost Add: Opening Stock Of GIP & FG 0.00 Less: Closing Stock Of GIP & FG 1.52 109.1 Cost Of Service provided 7 Gross Profit 46.18

61.25 3.06 7.44 18.66 0.55 9.75 9.97 110.6 8

52.50 2.70 7.44 18.66 0.72 9.75 9.97 101.74 1.52 1.39 101.86 81.53

61.25 3.25 8.41 20.74 0.88 11.25 9.97 115.7 5 1.39 1.59 115.5 5 94.09

66.50 3.62 9.39 22.81 1.05 12.75 9.97 126.0 9 1.59 1.73 125.9 5 109.9 4

Particulars

1st Year

2nd Year 8.27 5.73 18.34 49.19

3rd Year 5.91 6.62 20.96 60.60

4th Year 3.54 7.50 23.59 75.31

Interest Charges 9.45 Administrative Expenses 5.73 Selling & distribution Expenses 15.53 Operating Profit 15.46

Other Nonoperating Expenses - P & P Written Off 0.71

0.71

0.71

0.71

Profit Before Tax Provision For Taxation Profit After Tax Add: Depreciation P & P Written Off

14.75 0.93 13.82 9.97 0.71

48.48 8.81 39.66 9.97 0.71

59.89 12.22 47.67 9.97 0.71

74.60 16.34 58.25 63 | P a g e 9.97 0.71

K.5 INTREST PAYMENT

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Particulars

Inter est Rate

1st Year

2nd Year

3rd Year

4th Year

Term Loan Opening Balance Repayment Closing Balance Interest 13.50 %

70.00 0.00 70.00 9.45

70.00 17.50 52.50 8.27

52.50 17.50 35.00 5.91

35.00 17.50 17.50 3.54

K.6 DEPRECIATION AS PER SLM METHOD


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Sr . N o.

Particulars
Land & Site Dev. Factory Building Office Premises Plant & Machinery Imported Indigenous Electric Installation Misc. Fixed Assets

Cost

1st Year

2nd Year

3rd Year

4th Year

1 2 3 4

7.81 3.31 16.3 9 11.2 3 11.2 3 11.3 3

0.00 70.00 0.00

5.47 0.00

5.47 0.00

5.47 0.00

5.47 0.00

0.00 25.00 5.00 10.00 110.0 0

0.00 2.81 0.56 1.13

0.00 2.81 0.56 1.13

0.00 2.81 0.56 1.13

0.00 2.81 0.56 1.13

5 6

Total

9.97

9.97

9.97

9.97

DEPRECIATION AS PER WDV METHOD


Particulars
Land Dev. & Site

Cost 0.00

1st Year

2nd Year

3rd Year

4th Year

Factory Building Office Premises Plant & Machinery Imported Indigenous Electric Installation Misc. Fixed Assets

10.0 0 5.00 25.0 0 25.0 0 25.0 0 15.0 0

70.00 0.00

7.00 0.00

6.30 0.00

5.67 0.00

5.10 0.00

0.00 25.00 5.00 10.00 110.0 0

0.00 6.25 1.25 1.50

0.00 4.69 0.94 1.28

0.00 3.52 0.70 1.08

0.00 2.64 0.53 0.92

Total

16.00

13.20

10.97

9.19

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K.6 CASH FLOW STATEMENT


Particulars SOURCES OF FUNDS Net Profit Before Tax But After Depreciation with Interest Added Back. Depreciation P & P Written off Increase In Capital Increase In Term Loans Increase In Unsecured Loans Sale Of Fixed Assets Increase In Current Liabilities Decrease In Current Assets - Inventories - Debtors - Other Current Assets Others Total Sources Of Funds 1st Year 2nd Year 3rd Year 4th Year

24.20 9.97 0.71 50.00

56.74 9.97 0.71

65.79 9.97 0.71

78.14 9.97 0.71

70.00
0.00

7.32

-0.17

1.03

0.97

162.20

67.26

77.51

89.79

Particulars

1st Year

2nd Year

3rd Year

4th Year

DISPOSITION OF FUNDS Increase In P & P Exp. 5.00 In Crease In Capital Expenditure 110.00 Increase In Current Assets - Inventories 4.29

0.00

20.00

-0.51

0.60

0.39

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- Debtors - Other Current Assets Decrease In Current Liabilities Repayment Of Long Term Loans Increase In Investments Interest Taxation Others/withdrawls Total Disposition Of Funds Opening Cash Balance Net Surplus Closing Cash Balance

2.98 6.36

0.54 0.00

0.50 0.90

0.50 0.90

0.00 0.00 9.45 0.93 5.00 144.00 0.00 18.20 18.20

17.50 0.00 8.27 8.81 10.00 44.61 18.20 22.65 40.85

17.50 0.00 5.91 12.22 10.00 47.63 40.85 29.89 70.74

17.50 0.00 3.54 16.34 10.00 69.18 70.74 20.61 91.35

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K.7 BALANCE SHEET


Particulars LIABILITIES Shareholders Funds - Equity Share Capital - Investment Allowance (Res.) - Profit & Loss (Surplus) A/c. - Cash Subsidy Total Loan Funds Term Loans Total Total Liabilities 1st Year 2nd Year 3rd Year 4th Year

50.00 0.00 8.82 0.00 58.82 70.00 70.00 128.82

50.00 0.00 38.48 0.00 88.48 52.50 52.50 140.98

50.00 0.00 76.15 0.00 126.15 35.00 35.00 161.15

50.00 0.00 124.40 0.00 174.40 17.50 17.50 191.90

Particulars ASSETS Fixed Assets - Gross Block - Depreciation upto date - Net Block Investments (Replacement Reserves)

1st Year

2nd Year

3rd Year

4th Year

110.00 9.97 100.03 0.00

110.00 19.94 90.06 0.00

110.00 29.91 80.09 0.00

130.00 39.88 90.12 0.00

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Current Assets, Loans & Adv. - Raw Material Stock - Stores & Spares Stock - Goods In Process Stock - Finished Goods stock - Sundry Debtors - Loans & Advances - Other current Assets - Cash & Bank Balance Gross Current assets Less: Current Liabilities & Prov. - Creditors For Goods - Creditors For Expenses - Other Current liabilities Total Current Liabilities Net Current assets

2.52 0.25 0.00 1.52 2.98 0.00 6.36 18.20 31.82

2.16 0.22 0.00 1.39 3.52 0.00 6.36 40.85 54.50

2.52 0.27 0.00 1.59 4.02 0.00 7.25 70.74 86.38

2.73 0.30 0.00 1.73 4.52 0.00 8.15 91.35 108.79

1.17 2.15 4.00 7.32 24.50

1.01 2.15 4.00 7.15 47.35

1.17 2.40 4.62 8.19 78.20

1.28 2.65 5.23 9.15 99.63

Miscellaneous Expenditure - P & P Expenses 4.29 - Profit & Loss Account ( Dr. Bal.) 4.29 Total Assets 128.82

3.57

2.86

2.14

3.57 140.98

2.86 161.15

2.14 191.90

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K.8 NET PRESENT VALUE


Cash Inflow Year1 Year2 Year3 Year4 Initial Outflow
Cumulative cash flow

18.20 22.65 29.89 20.61

18.20 40.85 70.74 91.35

discounted@15% 0.869565217 0.756143667 0.657516232 0.571753246

NPV 15.8268 30.8916 46.5123 52.2312 120 25.462

K.9 INTERNAL RATE OF RETURN


Year0 Year1 Year2 Year3 Year4 IRR Cash Flow -120 18.20 40.85 70.74 91.35 23%

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K.10 PAYMENT OF SALARIES


Salaries Per Person Per Month Total slaries Per Month Total salaries Per Annum

Sr. No.

Category

Nos. Of Persons

1 2 3 4 5 6

Manager Chef Servers Asstt Cooks Security Helpers

1 2 10 4 4 4 10

10000. 00 20000. 00 4000.0 0 7500.0 0 4000.0 0 3500.0 0 3000.0 0

10000.00 40000.00 40000.00 30000.00 16000.00 14000.00 30000.00 180000. 00 36000.00 216000. 00

1.20 4.80 4.80 3.60 1.92 1.68 3.60 21.60 4.32 25.92

Total Salaries Add: Benefits & Bonus @ 20% Total Direct Labour Cost

20%

ADMINISTRATIVE SALARIES AND OVERHEADS


Salaries Per Parson Per Month Total Salaries Per Month Total Salaries Per Annum

Sr. No.

Category

Nos. Of Persons

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A. 1 2

Administrative Salaries Accountant Office Assistant/Receiptionist Total Adm. Salaries Add: Benefits & Bonus @ 20% Total Adm. Salaries Cost 1 2 15000. 00 5000.0 0 15000.00 10000.00 25000.0 0 5000.00 30000.0 0 1.80 1.20 3.00 0.60 3.60

20%

Other Administrative Expenses Rates, taxes & Insurance Printing & Stationery Travelling & Conveyance Legal & Professional Fees Bank Charges Auditors, Remuneration Other Miscellaneous Postage, Telegraph,Telephones

5000.00 5000.00 10000.00 3500.00 2500.00 2500.00 10000.00 5000.00 0.00 0.00 0.00 73500.00

0.60 0.60 1.20 0.42 0.30 0.30 1.20 0.60 0.00 0.00 0.00 8.82

Total Overheads

Administrative

COST OF DRESSES (Included in other expenses)


POST NUMBERS COST PER DRESS TOTAL AMOUNT

Waiters Security Guard Unit Managers Cooks Others Total..

10 4 1 8

850 750 4000 2000

8500 3000 4000 16000 8500 40,000

K.11 INCOME TAX PROVISION


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Particulars Profit Before Tax Add: Depreciation Cos. Act Less; Depreciation Incometax Act Profit As Per Income-tax Act Carry Forward Loss Partners' Interest / Rem Taxable Profit Provision For Tax @ 30%

1st Year 14.75 9.97 16.00 8.71


0.00

2nd Year 48.48 9.97 13.20 45.24


0.00

3rd Year 59.89 9.97 10.97 58.88


0.00

4th Year 74.60 9.97 9.19 75.38


0.00

5.00 3.71 0.93

10.00 35.24 8.81

10.00 48.88 12.22

10.00 65.38 16.34

K.12 PROJECTED SALES


1 RESTAURANT SALES YEAR Installed Capacity 17500 /collection / day 0 50.00 Capacity Utilisation in % % Income In Collection / day Add : Op. Stock Less Cl. Stock Quantity Available For Sales 87500 0.00 1198.6 3 86301 2 YEAR 175000 60.00% 105000 1198.6 3 1438.3 6 104760 3 YEAR 17500 0 70.00 % 12250 0 1438.3 6 1678.0 8 12226 0 12226 0 0.00 150 0.00 183.39 183.3 9 4 YEAR 17500 0 80.00 % 14000 0 1678.0 8 1917.8 1 13976 0 13976 0 0.00 150 0.00 209.64 209.6 4 74 | P a g e

- Indigenous Quantity Sales Price Per Unit - Indigenous Rate (seats) Sales Realisation - Indigenous Sales Total Sales

86301 0.00 150 0.00 129.45 129.4 5

104760 0.00 150 0.00 157.14 157.14

K.13 BREAK EVEN ANALYSIS


Rs. In lacs Base year
cap. Utilisation(% )

III YR 80%

Sales

209.64

Variable Cost

Fixed Cost

RM, & Stores Power&fuel Wages

75.40 80% 90% 7.12 19.60

Depreciatio n Power&fuel main.

9.97 20% 1.78 0

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Oher Direct Exps. Selling Exp. Intt. On W/C Admin. Exps

80% 40%

13.05 0.68 3.54

Admin. Exps

70% 60%

19.61 0.00 3.54

Selling Exp. Intt. T/Ls

30%

8.41 127.79 34.91

Contribution(A -B)

81.85

PV RATIO = CONTRIBUTION/SALES = 0.394 So, break even point is = FIXED COST/PV RATIO = 88.60 LAKHS

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