A BUSINESS PLAN ON SHUDDHA SWAAD

GROUP MEMBERS

KISHORI HANDE 1315FM010

SHAILESH KUDALE 1315FM014

NEHA PANDEY 1315FM021

SHILPA SABLE 1315FM029

GUNJAN SONI 1315FM039

ABOUT HOTEL INDUSTRY IN INDIA

Hotel Industry Background

The first modern commercial hotel was opened in Buffalo, New York in 1908, featuring amenities such as a free morning newspaper. Hotels then took off in the go-go 1920s, before falling back down to Earth like just about every other industry during the Great Depression. Post World War II, in the 1950s, the hotel industry experienced somewhat of a revolution, and motels were created as a lower cost, no frills alternative to the larger and more amenity-based hotels. In the 1980s, hotels over expanded and struggled.

The over expansion was only finally fixed in the mid to late 90s, which would end up being another boom period for hotels which increasingly catered to businessmen by offering internet, fax and voice mail. The events of September 11, 2001 hurt travel throughout the country and put a temporary damper on the hotel industry. But by the middle of the decade hotels were thriving once again, to the point where many were even raising their rates.

Current State of the Hotel Industry

Currently, hotels make up a giant industry. In 2013, consumers rented out 4.7 million rooms at 50,800 different properties, and in 2011, the industry took in a total of $127 billion. The industry employed over 1.7 million workers last year and paid out about $186 billion in wages to a very diverse group of employees occupying both low and high skill and wage positions. Hotels and motels are found in the following areas: approximately thirty percent in suburban areas, thirty percent in towns, nine percent in cities, four percent near airports and seven percent at resorts.  Franchising hotels and motels is appealing because brand name is so essential. Each name represents reputation and standards as well as a certain niche in the quality of its facilities and its cost. Often chains have multiple brands representing different levels of quality and cost.

The internet has become crucial in the search for hotels and motels. In 2008, one quarter of all reservations was made over the internet, and another quarter of customers looked at reviews and other information before booking. These numbers have only elevated ever since and will continue to increase in the future, leading to an added emphasis on techniques such as search engine optimization to make sure that the hotels and motels come up as early as possible in online search results. Hotels and motels tend to be a particularly capital intensive franchise area, but it has also has the potential to be quite lucrative if successful.

Future of the Hotel Industry

The future for the hotel industry looks bright. The 6.6 percent increase in room demand between 2012 and 2013 was the largest in twenty years.  Factors impacting the future of the hotel business include increasing focus on environmentally friendly. Different certifications from environmental organizations concentrate on hotels' green design and operation as being green is becoming increasingly important to consumers. In addition, room supply is raising most in suburban areas and construction is concentrating on no frills cost conscious hotels rather than full services entities. Increasing employee related expenses is another ongoing concern for the industry.

The long term outlook for the Indian hospitality business continues to be positive, both for the business and leisure segments with the potential for economic growth, increases in disposable incomes and the burgeoning middle class. 

Government of India increased spend on advertising campaigns (including for the campaigns 'Incredible India' and 'Athithi Devo Bhava' - Visitors are like God) to reinforce the rich variety of tourism in India. The new Indian government has stated that tourism will be a key focus sector. 

EXECUTIVE SUMMARY

Shuddha Swaad is a new medium-sized restaurant located in a near Pune. Shuddha Swaad's emphasis will be on organic and Indian ethnic food. An emphasis on organic ingredients is based on Shuddha Swaad's dedication to sustainable development. Additionally, the restaurant employs its staff from the villages and trains them.

VISION & MISSION OF STAR PLYWOOD

VISION

To become the leading independent 4* hotel in Pune providing excellent products and services at

reasonable prices to every customer, every time.

MISSION

Our customers are our priority and we will provide them with a quality experience which

is second to none. We recognise the importance of our employees in achieving this and we will

create a positive working environment which encourages their loyalty, commitment and hard

work. We strive to be excellent leaders and will undertake all our business activities in an honest

and ethical manner to provide a fair return on our investment. 

Shuddha Swaad is a trendy and healthy place to eat, combining an intriguing atmosphere

with excellent, interesting food that is also very good for the people who eat there. A rewarding

place for employees, which is reflected in their service delivery.

SERVICES

Shuddha Swaad offers a trendy, fun place to have great food in a social environment. The restaurant offers a large repertoire of ethnic ingredients and recipes from across the states. Ethnic recipes will be used to provide the customers with a diverse, unusual menu. The emphasis is on re-introducing the local healthy options to the city life. Being organic, is just another value addition to it.

We aim at providing the best quality food using highest quality vegetables and We strongly believe in value for money and we are planning to built excellent relationship with our customer so they visit us again and again for our committed and excellent services. We have the team of highly professional and committed professionals who believe in providing their best every time.

OBJECTIVES:

To become the premier fast-casual restaurant in every market entered. To open a new store every 12 months. To offer high-quality food and a wonderful experience at reasonable prices.

KEY TO SUCCESS

Offer simple, delicious menu items. Treat every customer as if they are the only customer. Design and employ strict financial controls.

COMPANY SUMMARY

Shuddha Swaad is a single-unit, medium-sized restaurant. We focus on organic and creative

food. The restaurant will be located in Pune. Most important to us is our financial success, but

we believe this will be achieved by offering high-quality service and extremely clean, non-greasy

food with interesting twist.

COMPANY OWNERSHIP

The restaurant will start out as a simple sole proprietorship, owned by its founders.

START-UP SUMMARY

We have found the location and secured the lease for Rs.25,000 per month. We will be

able to set up shop in time to begin turning back a profit by the end of month eleven and be

profitable in the second year. The place is already equipped as a restaurant so we plan to come

up with a total of Rs. 15 lacks in capital to start up the company.

Start-up Expenses Amount(Rs.)

Legal 15,000Kitchen Inventory 80,000Packing materials 20,000Kitchen Equipment 2,00,000Insurance 20,000Rent 3,00,000 paPromotion 10,000Permits 20,000Employee salary 5,00,000Other 30,000Total start up Expenses

11,95000

SERVICES

The Menu

The menu is going to be extremely simple but changing every day. We will keep a small group

of constants on the menu and then feature a chef's recommendation that we plan to have 85% of

meals ordering. This will help us to reduce waste and plan ingredients and purchasing.

Organic Ingredients

The organic ingredient element will allow us to price to the extremely wealthy Internet

entrepreneurs who are looking to spend an exorbitant amount of money to have peace of mind

that their money is still coming back to themselves. We will be extremely ecologically conscious

as well, and spread this across our literature.

Ethnic Ingredients and Recipes

Our chef will have great latitude in designing and producing menu offerings from many different

Indian cultures. We will endeavour to procure all the traditional, authentic ingredients necessary

to hold true to these varied and interesting cultural recipes. 

 

Market Segmentation

The Rich Trend setters:

Organic is becoming a way of life for this target segment. Rich lads, who naturally desire organic

foods as well as ethnic cuisine, estimated to be at 10,00,000 in numbers. They are an easy target

to attract for the trials. To hold them and make them repeat customers is the key.

Nuclear families:

Working couples are usually more interested in trying out places which are trendy and healthy at

the same time. They have double income and it is particularly easy to make them spend money

again - they spend the most on drinks, appetizers and tips.

Diet conscious women segment:

Last group which is particularly interested in the menu's healthy offerings is dieting women

which number 350,000. The organic food menu will always have a line of extremely delicious

very low-fat meals.

Market Analysis

Strategy and Implementation Summary

Our strategy is simple; we intend to succeed by giving people a combination of great, healthy,

interesting food, and an environment that attracts "trendy" people like a magnet. Implementation

isn't simple, but that's in the doing of it, not in the plan.

Competitive Edge

Our competitive edge is the menu, the chef, the environment, and the tie-in to what's healthy and

trendy.

Sales Strategy

As the table shows, we intend to deliver sales of about $350K in the first year, and to double that

by the third year of the plan.

Sales Monthly

FUTURE PLAN We will expand hotel while introducing our branch in different location We will introduce lodge facility We will plan to provide non veg. food We will plan to expand main hotel with swimming pool and provide some games to play

Here are the licenses you need to get in Bangalore - other locations will be similar.

1) Trade License for running a restaurant - from the BBMP (Municipal Corporation) office for your location. 2) Health Certificate - again from the health department of BBMP (Municipal Corporation).

For these 2, just ask a restaurant/fast food joint near where you are planning to start and they will give you a contact at BBMP to help you - depending on the size of your project, these 2 will cost you between 10K and 1L (fine dining) with the unofficial fees being the big component - actual license fee is 5K-8K for a small restaurant/fast food joint. You do not need to hire consultants for this. I would strongly recommend that you befriend a fast food/restaurant owner in your area, ask him how much he paid and then request him to help you out with the licneses. 

3) VAT registration - your accountant can help you with this. The actual terms vary by state. You have 2 options in Karnataka - composite where you pay 4% of the sale value as VAT - no input credit adjustments need to be made. The other option is to charge the customer 13.5% VAT and then pay the VAT after adjusting for input credit. For a new business, I would recommend the Composite option as no documentation needs to be maintained - so it will be easier to manage when you start afresh. You can always move to the other model later. 

4) Shops & Establishment License - your accountant can get you this.

5) Labour License - again your accountant can help you with this. 

4 & 5 comes from the Labour department for your area.

These are the 5 licenses you would need to get started.