“HABIBI”THE HOOKAH HOUSE

Our aims

- Preservation and improvement of quality of services;

- Receiving stable profit; - Cooperation with suppliers for the

purpose of the long-term business relations. - network expansion - to become the leader in this sphere

Tasks

- Ensuring requirements of the hookah

- Studying of requirements on this segment of the market

- providing working conditions

- search of cheap materials from the East

Assortment: There are quality hookahs and tobacco from the

East in “Habibi”. Also all kinds of beverages are herbal teas, coffee, alcoholic cocktails and oriental sweets and fruits to include in the product range.

Competitors: There are many competitors in Yekaterinburg. The

analysis revealed that these organization had a small square and a small variety of the menu, didn’t account for the many needs of the client.

Our advantages are:

- spacious room, entertainment (belly dancing)

-rich hookah menu, - very comfortable

seating (sofas, armchairs)

- constant actions - presence of an open

veranda

Fixed Cost:Name Number Cost Hookahs 30 90 000 Decorating the room, interior (tables, armchair, sofas, carpets, curtains, etc.) - tables - sofas - armchair - bar counter - crockery - speaker installation - other

15 10 30 1 1

30 000 100 000 90 000 40 000 15 000 30 000 30000

Internet 1000 Advertising 15000 Protection 10000 Rent (80 square meters) 160000 per month with

utilities Salary 130000 Licensed for alcohol 1 90 000 Total 88 831 000

Variable Cost:

- Tobacco, coal - 10 000

- Sweets, food, tea - 20 000

- Alcohol - 30 000 - Others pieces for

hookah – 5 000 Total – 65 000

№ Labor Number Salary 1 Accountant (outsourcing) 1 10 000 10 000

2 Waiters 7 10 000 70 000 3 Bartenders 2 13 000 26 000 4 Dancer (on weekends and

holidays) 1 14 000 14 000

5 Hostess 1 10 000 10 000

Total 12 130 000

Total: 896 000

SWOT

strengths weaknesses 1. High quality of production 2. Wide range 3. Highly skilled personnel 4. Unusual design in east style 5. Favorable location 6. Fast processing of orders 7. Entertainment program 8. Low prices 9. Cozy situation 10. Comfortable places for sitting

1. Not so much advertizing 2. Small room 3. Inconvenient parking 4. Low salary 5. Certain circle of clients 6. High competition 7. Business hours on weekdays only till 24:00 8. There are no hot dishes in the menu 9. Little tables at most on 6 people 10. Often changing personnel

opportunities threats 1. Expansion of the range 2. Network creation 3. Additional services 4. Increase in volume of advertizing 5. Shift from the market of competitors 6. Improvement of service and reduction of time for service 7. Increase in number of the personnel 8. Appearance of regular customers 9. Area expansion 10. Increase in profit

1. Appearance of stronger competitor 2. Change in price by suppliers 3. Increase in a rent 4. Seasonal recession 5. Economic recession 6. Personnel fluidity 7. Property theft 8. State of emergency 9. Low-quality equipment 10. Unskilled personnel

Type of risk Importance Probability 1 . Rise in prices at suppliers 1 5 2 . Rent increase 5 9 3 . Personnel fluidity 1 5 4 . Property theft 1 1 5 . State of emergency 8 2 6 . Deterioration of a standard of living of the population, will lead it to decrease in demand

9 2

7 . Vandalism, sabotage, strikes and so forth.

6 4

8 . Equipment breakage 5 5 9 . Blackout, waters for the long period

9 2

10 . Shift from the market competitors

8 1

Operations

Meet with host See a menu/decide

Wait

Consume order Pay

Make order

Food

Drinks

Hookah

Meet with host – 2 mins See a menu/decide – 10 mins Make order –5 mins Wait – 10 mins Consume order – 1 hrs Pay – 5 mins Total – 93 mins / customer Turnover = 780 mins / 93 mins *15 tables = 8.9 * 15 = 125.8 Turnover = 125.8 Target Market Population in Yekaterinburg – 1 424 702 18 – 35 years – 498 645 (35%) Target market – 25 % Target market - 356 175 Contribution margin – 170 Breakeven – 4711.8 Breakeven capacity for month – 0.1

Thank you for your attention