sonia final b plan

8/2/2019 Sonia Final b Plan

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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 thebooming, 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, andrapidly 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 of2600 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. Rs100,000 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 single-

digit 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 ofpopulation.

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 industryexpects 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.2TARGET 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 manycustomers 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.4MARKET 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.5PRICE 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 needof such a restaurant in the market.

To ascertain thefeasibility of such concept in the market.

To find the target marketfor the restaurant.

To ascertain theprice 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 forPromotion 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.3BARRIERS 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.4DISTINCTIVE 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

REEBOKthat 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.2GROWTH 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 for4-5 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 oftie 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.3DISTRIBUTION 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) CHARGES

Within 2 kms Free of charge

Between 2 to 5 kms 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.4PROMOTION

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 throatcompetition 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.6PUBLIC 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 thefinal design.

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G.7SALES 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 takethe 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.1DETAILED 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 isnoteworthy. 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 anyrestaurant 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.1OPERATING 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 whichincludes 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 Quantity Rate Amount

Live counter trolley 1 50000 50000

Ovens (A) 1 10000 10000

Ovens (B) 1 20000 20000

Automated machine 1 500000 500000

Cooking machine 1 130000 130000

Tandoor 2 2500 5000

Grinders 2 10000 20000

Freezer 3 35000 105000

Vessels 50000

Gas Stove 4 15000 60000

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Total 950000

LOOSE TOOLS


Jugs 100 100 10000

Glasses 400 15 6000

Set of plates 250 100 25000

Soup of bowls and set of plates 100 50 5000

Spoons, knives and forks 400 10 4000

Total 50000

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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: 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

30,000.

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


Air conditioner 2 50000 100000

Computer 1 25000 25000

Billing machine 2 10000 20000

Music system 1 500000 500000

Generator 1 40000 40000

Exhaust 5 1500 7500

Chimney 2 100000 200000

Aquaguard 2 6000 12000

Watercooler 2 8000 16000

Print copier fax 1 10000 10000

LCD 1 30000 30000

Mobile phone 2 5000 10000

Other equipments 29500

Total 1000000

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I.2CAPACITY UTILISATION

(No. of customers)

Restaurant: No. ofcustomers 60 per hour.

Time Duration Hours Capacity

utilization

No. of customers

11 a.m. to 12 p.m. 1 50% 30

12 p.m. to 3 p.m. 3 60% 108

7 p.m. to 8 p.m. 1 50% 30

8 p.m. to 10 p.m. 2 60% 72

10 p.m. to 11 p.m. 1 60% 36

Total 8 276

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.3SUPPLIERS

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 ourrequirement (shape, size) we will initiate contract for 3 months with them.

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J. MANAGEMENT PLAN

J.1MANAGEMENT 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

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 experience at

managerial level.

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.


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.


9. Disco Jockey (DJ) [ Part Time]

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This will be booked as per the party needs and budget.

J.3LEGAL 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, thereis 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 abusiness 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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K. F INANCIAL PLAN

K.1 FUNDING REQUIREMENT

Total cost of the project: 1, 20, 00, 000

SOURCES OF FINANCE:

1. Bank loan at 13.5% interest rate: 70,00,000

2. Owners fund: 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.2USE OF FUNDS

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PARTICULARS AMOUNT ( IN

LACS)

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

ParticularsPeriod InDays

1stYear

2ndYear

3rdYear

4th Year

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Ave. CapacityUtilisation 65.00% 65.00% 75.00% 85.00%

Raw Materials

- Indigenous 15 2.52 2.16 2.52 2.73

Stores & Spares- Indigenous 30 0.25 0.22 0.27 0.30

Goods In Process 0 0.00 0.00 0.00 0.00

Finished Goods 5 1.52 1.39 1.59 1.73

Total Inventories 4.29 3.77 4.37 4.76

Sundry Debtors

- Local Sales 7 2.98 3.52 4.02 4.52Cash & BankBalance 18.20 40.85 70.74 91.35

Working Expenses 30 2.15 2.15 2.40 2.65

Other Current Assets 4.21 4.21 4.86 5.51

Gross CurrentAssets 31.82 54.50 86.38 108.79Less: CurrentLiabilities

- Creditors ForGoods 7 1.17 1.01 1.17 1.28

- Creditors ForExp. 30 2.15 2.15 2.40 2.65

- Other CurrentLia. 4.00 4.00 4.62 5.23Total CurrentLiabilities

7.32 7.15 8.19 9.15

Net CurrentAssets 24.50 47.35 78.20 99.63

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

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Particulars1st

Year2nd

Year3rd

Year4th

Year

REVENUE Average Capacity Utilization(%)

65.00% 65.00%

75.00%

85.00%

Sales

Revenue from restaurant 155.34 183.39 209.64 235.89

Total Sales155.34 183.39

209.64

235.89

EXPENDITURE

Raw Materials Consumption 61.25 52.50 61.25 66.50

Stores 3.06 2.70 3.25 3.62

Power & Fuel 7.44 7.44 8.41 9.39

Salaries 18.66 18.66 20.74 22.81

Maintenance 0.55 0.72 0.88 1.05

Other Expenses 9.75 9.75 11.25 12.75

Depreciation 9.97 9.97 9.97 9.97

Total Cost110.68 101.74

115.75

126.09

Add: Opening Stock Of GIP &FG 0.00 1.52 1.39 1.59Less: Closing Stock Of GIP &FG 1.52 1.39 1.59 1.73

Cost Of Service provided109.17 101.86

115.55

125.95

Gross Profit 46.18 81.53 94.09109.94

Particulars1st

Year

2nd

Year

3rd

Year

4th

Year

Interest Charges 9.45 8.27 5.91 3.54

Administrative Expenses 5.73 5.73 6.62 7.50Selling & distributionExpenses 15.53 18.34 20.96 23.59

Operating Profit 15.46 49.19 60.60 75.31

Other NonoperatingExpenses

- P & P Written Off 0.71 0.71 0.71 0.71

Profit Before Tax 14.75 48.48 59.89 74.60

Provision For Taxation 0.93 8.81 12.22 16.34

Profit After Tax 13.82 39.66 47.67 58.25

Add: Depreciation 9.97 9.97 9.97 9.97

P & P Written Off 0.71 0.71 0.71 0.71


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K.5 INTREST PAYMENT

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ParticularsInterestRate

1stYear

2ndYear

3rdYear

4thYear

Term LoanOpening Balance 70.00 70.00 52.50 35.00

Repayment 0.00 17.50 17.50 17.50

Closing Balance 70.00 52.50 35.00 17.50

Interest13.50% 9.45 8.27 5.91 3.54

K.6 DEPRECIATION AS PER SLM METHOD

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Sr.No.

Particulars % Cost1st

Year2nd

Year3rd

Year4th

Year

1

Land & Site

Dev. 0.002 Factory Building 7.81 70.00 5.47 5.47 5.47 5.47

3 Office Premises 3.31 0.00 0.00 0.00 0.00 0.00

4Plant &Machinery

-Imported

16.39 0.00 0.00 0.00 0.00 0.00

-

Indigenous

11.23 25.00 2.81 2.81 2.81 2.81

5ElectricInstallation

11.23 5.00 0.56 0.56 0.56 0.56

6

Misc. Fixed

Assets

11.3

3 10.00 1.13 1.13 1.13 1.13

Total 110.00 9.97 9.97 9.97 9.97

DEPRECIATION AS PER WDV METHOD

Particulars % Cost1st

Year2nd

Year3rd

Year4th

Year

Land & SiteDev. 0.00

Factory Building

10.00 70.00 7.00 6.30 5.67 5.10

Office Premises 5.00 0.00 0.00 0.00 0.00 0.00Plant &Machinery

-Imported

25.00 0.00 0.00 0.00 0.00 0.00

-Indigenous

25.00 25.00 6.25 4.69 3.52 2.64

Electric

Installation

25.0

0 5.00 1.25 0.94 0.70 0.53Misc. FixedAssets

15.00 10.00 1.50 1.28 1.08 0.92

Total 110.00 16.00 13.20 10.97 9.19

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K.6 CASH FLOW STATEMENT

Particulars 1st Year 2nd Year3rd

Year4th

Year

SOURCES OF FUNDS

Net Profit Before Tax ButAfter Depreciation withInterest Added Back. 24.20 56.74 65.79 78.14

Depreciation 9.97 9.97 9.97 9.97

P & P Written off 0.71 0.71 0.71 0.71

Increase In Capital 50.00

Increase In Term Loans 70.00 Increase In Unsecured Loans 0.00

Sale Of Fixed AssetsIncrease In CurrentLiabilities 7.32 -0.17 1.03 0.97

Decrease In Current Assets

- Inventories

- Debtors

- Other Current Assets

Others

Total Sources Of Funds 162.20 67.26 77.51 89.79

Particulars 1st Year 2nd Year3rd

Year4th

Year

DISPOSITION OF FUNDS

Increase In P & P Exp. 5.00 0.00 20.00In Crease In CapitalExpenditure 110.00

Increase In Current Assets

- Inventories 4.29 -0.51 0.60 0.39

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- Debtors 2.98 0.54 0.50 0.50

- Other Current Assets 6.36 0.00 0.90 0.90Decrease In CurrentLiabilities

Repayment Of Long TermLoans 0.00 17.50 17.50 17.50

Increase In Investments 0.00 0.00 0.00 0.00

Interest 9.45 8.27 5.91 3.54

Taxation 0.93 8.81 12.22 16.34

Others/withdrawls 5.00 10.00 10.00 10.00Total Disposition OfFunds 144.00 44.61 47.63 69.18

Opening Cash Balance 0.00 18.20 40.85 70.74

Net Surplus 18.20 22.65 29.89 20.61

Closing Cash Balance 18.20 40.85 70.74 91.35

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K.7 BALANCE SHEET

Particulars1st

Year2nd

Year3rd

Year4th

Year

LIABILITIES

Shareholders Funds - Equity Share Capital 50.00 50.00 50.00 50.00

- Investment Allowance(Res.) 0.00 0.00 0.00 0.00

- Profit & Loss (Surplus)A/c. 8.82 38.48 76.15 124.40

- Cash Subsidy 0.00 0.00 0.00 0.00

Total 58.82 88.48 126.15 174.40

Loan Funds

Term Loans 70.00 52.50 35.00 17.50

Total 70.00 52.50 35.00 17.50

Total Liabilities 128.82 140.98 161.15 191.90

Particulars1st

Year2nd

Year3rd

Year4th

Year

ASSETS

Fixed Assets

- Gross Block 110.00 110.00 110.00 130.00- Depreciation upto date 9.97 19.94 29.91 39.88

- Net Block 100.03 90.06 80.09 90.12

Investments(Replacement Reserves)

0.00 0.00 0.00 0.00

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Current Assets, Loans &Adv.

- Raw Material Stock 2.52 2.16 2.52 2.73

- Stores & Spares Stock 0.25 0.22 0.27 0.30

- Goods In Process Stock 0.00 0.00 0.00 0.00- Finished Goods stock 1.52 1.39 1.59 1.73

- Sundry Debtors 2.98 3.52 4.02 4.52

- Loans & Advances 0.00 0.00 0.00 0.00

- Other current Assets 6.36 6.36 7.25 8.15

- Cash & Bank Balance 18.20 40.85 70.74 91.35

Gross Current assets 31.82 54.50 86.38 108.79Less: Current Liabilities &Prov.

- Creditors For Goods 1.17 1.01 1.17 1.28

- Creditors For Expenses 2.15 2.15 2.40 2.65

- Other Current liabilities 4.00 4.00 4.62 5.23

Total Current Liabilities 7.32 7.15 8.19 9.15

Net Current assets 24.50 47.35 78.20 99.63

MiscellaneousExpenditure

- P & P Expenses 4.29 3.57 2.86 2.14- Profit & Loss Account

( Dr. Bal.)

4.29 3.57 2.86 2.14

Total Assets 128.82 140.98 161.15 191.90

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K.8 NET PRESENT VALUE

Cash Inflow Cumulative cash flow discounted@15% NPV

Year1 18.20 18.20 0.869565217 15.8268

Year2 22.65 40.85 0.756143667 30.8916

Year3 29.89 70.74 0.657516232 46.5123

Year4 20.61 91.35 0.571753246 52.2312

InitialOutflow 120

25.462

K.9 INTERNAL RATE OF RETURN

Cash Flow

Year0 -120Year1 18.20

Year2 40.85

Year3 70.74

Year4 91.35

IRR 23%

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K.10 PAYMENT OF SALARIES

Sr.No.

CategoryNos. OfPersons

SalariesPerPersonPerMonth

Totalslaries PerMonth

TotalsalariesPerAnnum

1 Manager 1 10000.00 10000.00 1.20

2 Chef 220000.00 40000.00 4.80

3 Servers 104000.00 40000.00 4.80

4 Asstt Cooks 47500.00 30000.00 3.60

5 Security 44000.00 16000.00 1.92

6 Helpers 4

3500.0

0 14000.00 1.68

103000.00 30000.00 3.60

Total Salaries 180000.00 21.60

Add: Benefits & Bonus @ 20% 20% 36000.00 4.32

Total Direct Labour Cost 216000.00 25.92

ADMINISTRATIVE SALARIES AND OVERHEADS

Sr.No.

CategoryNos. OfPersons

SalariesPerParsonPerMonth

TotalSalariesPer Month

TotalSalariesPerAnnum

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A. Administrative Salaries

1 Accountant 115000.00 15000.00 1.80

2 Office Assistant/Receiptionist 25000.00 10000.00 1.20

Total Adm. Salaries 25000.00 3.00

Add: Benefits & Bonus @ 20% 20% 5000.00 0.60

Total Adm. Salaries Cost 30000.00 3.60

B Other Administrative Expenses

Rates, taxes & Insurance 5000.00 0.60 Printing & Stationery 5000.00 0.60

Travelling & Conveyance 10000.00 1.2

Legal & Professional Fees 3500.00 0.42

Bank Charges 2500.00 0.30

Auditors, Remuneration 2500.00 0.30

Other Miscellaneous 10000.00 1.20

Postage, Telegraph,Telephones 5000.00 0.60

0.00 0.00

0.00 0.00

0.00 0.00

Total AdministrativeOverheads 73500.00 8.82

COST OF DRESSES (Included in other expenses)

POST NUMBERS COST PER DRESS TOTAL AMOUNT

Waiters 10 850 8500

Security Guard 4 750 3000

Unit Managers 1 4000 4000Cooks 8 2000 16000

Others 8500

Total.. 40,000

K.11 INCOME TAX PROVISION

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Particulars1st

Year2nd

Year3rd

Year4th

Year

Profit Before Tax 14.75 48.48 59.89 74.60

Add: Depreciation Cos. Act 9.97 9.97 9.97 9.97Less; Depreciation Income-tax Act 16.00 13.20 10.97 9.19

Profit As Per Income-tax Act 8.71 45.24 58.88 75.38

Carry Forward Loss 0.00 0.00 0.00 0.00

Partners' Interest / Rem 5.00 10.00 10.00 10.00

Taxable Profit 3.71 35.24 48.88 65.38

Provision For Tax @ 30% 0.93 8.81 12.22 16.34

K.12 PROJECTED SALES

RESTAURANT SALES1YEAR 2 YEAR 3 YEAR 4 YEAR

Installed Capacity/collection / day

175000 175000

175000

175000

Capacity Utilisation in %50.00% 60.00%

70.00%

80.00%

Income In Collection / day 87500 105000122500

140000

Add : Op. Stock 0.001198.63

1438.36

1678.08

Less Cl. Stock1198.63

1438.36

1678.08

1917.81

Quantity Available For Sales 86301 104760122260

139760

- Indigenous Quantity 86301 104760122260

139760

Sales Price Per Unit

0.00 0.00 0.00 0.00

- Indigenous Rate (seats) 150 150 150 150

Sales Realisation

0.00 0.00 0.00 0.00

- Indigenous Sales 129.45 157.14 183.39 209.64

Total Sales129.45 157.14

183.39

209.64

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K.13 BREAK EVEN ANALYSIS

Rs. In lacs

Base year III YR

cap.Utilisation(%)

80%

Sales 209.64

Variable Cost Fixed Cost

RM, & Stores 75.40

Depreciation

9.97

Power&fuel 80% 7.12 Power&fuel 20% 1.78

Wages 90% 19.60 main. 0

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Oher DirectExps.

80% 13.05 Admin. Exps 70% 19.61

Selling Exp. 40% 0.68 Selling Exp. 60% 0.00

Intt. On W/C 3.54 Intt. T/Ls 3.54

Admin. Exps 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

sonia final b plan

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