64840804 hotel business plan

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S h u b h a m R e s t a u r a n t Page 1

Business PlanShubham Restaurant

BY: Bhavesh Pipaliya

Kushal Khamar

Krishna Chandra Rai

Nitin Panara


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Company Description I have n amed business as Shubham restaurant . Shubham restaurant is providing variety ofGuajarati foods with best quality and always be successful in satisfying the needs of people. Itwill help to create emotional bonding among the customers. We preferred location as SarthanaJakat naka, Surat because Sarthana Jakat naka is very crowded area from afternoon 4:00 0clockto night 1 :00 oclock. So this makes possible for my business to be open for 8 hours a day withcrowded potential customers.

Mission Statement

We are committed to using the finest ingredients in our recipes. No food leaves our kitchen thatwe ourselves would not eat.

Development & Status

A suitable site for the first restaurant was found last month and lease negotiations are in the finalstages. The location will be on Sarthana Jakat naka, close to a crowded population of the targetmarket. When the lease is signed there will be three months of free rent for construction and inthat time the balance of the start-up funds must be raised.


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Industry AnalysisAlthough the restaurant industry is very competitive, the lifestyle changes created by modernliving continue to fuel its steady growth. More and more people have less time, resources, andability to cook for themselves. Trends are very important and Gujarat restaurant is well

positioned for the current interest in lighter, healthier foods at moderate to low prices.

The Restaurant Industry Today

The food service business is the third largest industry in the country. It accounts for over Rs.10000 billion annually in sales. The independent restaurant accounts for 15% of that total. Theaverage Indian spends 10% of his/her income on meals away from home. This number has beenincreasing for the past seven years. In the past five years the restaurant industry has out-

performed the national GNP. The reasons given are 1) lifestyle changes, 2) economic climate,and 3) increase of product variety.

There are 600 new restaurants opening every month and over 200 more needed to keep pace withincreasing demand.

Future Trends & Strategic Opportunities

The predicated growth trend is very positive both in short and long-term projections. As modernliving creates more demands, people will be compelled to eat more meals away from home.

The National Restaurant Association released the Foodservice Industry 2000 report thatforecasted how the industry might look in the year 2020. Some highlights from the panel'sfindings:

"Consumers will spend a greater proportion of their food dollar away from home. Independent operators and entrepreneurs will be the main source of new restaurant

concepts. Nutritional concerns will be critical at all types of foodservice operations, and food

flavors will be important. Environmental concerns will receive increased attention."


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Products & Related Services Shubham Restaurant will be offering a menu of food and ice cream with a distinctive image.There will be three ways to purchase these products; table service at the restaurant, take-out fromthe restaurant, and delivery to home or office.

The Menu

The Gujarati menu is moderate sized, and moderate-low priced offering a collection of ethnicand Gujarati items with a common theme -- healthy (low-fat, low cholesterol, naturalingredients), flavorful, and familiar. Our goal is to create the image of light satisfying and stillnutritious food.

There has been an increased awareness of nutritional and health concerns in recent years and agrowing market of people who now eat this style of cooking regularly.

Production

Food production and assembly will take place in the kitchen of the restaurant. Fresh vegetables,meat and dairy products will be used to crate most of the dishes from scratch. The chef willexercise strict standards of sanitation, quality production, and presentation or packaging over thekitchen and service staff.

Service

There will be three ways a customer can purchase food. They may sit down at one of the 54 seatsin the dining room and get full service from a waiter. A separate take-out counter will servicethose who wish to pick up their food. Most take-out food will be prepared to order with orderscoming from either the telephone or fax. Delivery (an indirect form of take-out) will be availableat certain times and to a limited area.

Future Opportunities

There is a market segment that prefers to eat this type of cooking at home although they do nothave the time to cook. There are already caterers and even mail order companies that provideindividuals and families with up to a month's supply of pre-prepared meals.

This opportunity will be researched and developed on a trial basis. If successful, it could becomea major new source of income without creating the need for additional staff or production space.


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The Target Market The market for Subham s products covers a large area of diverse and densely populated groups.Although it will be located in a Sarthana Jakat naka which is very crowded area and travelerscome there for travelling purpose. It is also an area known for and catering to the demographicgroup we are targeting.

Customers

This is developing area and full of middle and upper middle class families. This area is one kindof travelling depot where every day people are coming for travelling purpose. So, our targetmarket will be middle and upper middle class families and travelers also.

Market Trends & the Future

The population and demographics of Surat have remained steady for the last 5 years. No. oftravelers have increased 24% over the last 3 years and is predicted to keep growing. Local

businesses are increasing at a rate of 20% yearly.

The idea of a health consciousness through nutritional awareness and dietary change has beenslowly building for the last 7 years. The extensive government studies and new Food GuidePyramid have given everyone a new definition of a balanced, healthy diet.

As people want to stay home more and cook less our strategy of delivering prepared meals on aweekly or monthly arrangement may be a widespread accepted new way of eating.


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The Competition There are over 1 or 2 restaurants in the Sarthana Jakat naka area, which is not well- organizedrestaurants and that sell food at similar prices. Although this presents an obvious challenge interms of market coverage, it also indicates the presence of a large, strong potential. The newestcompetitors have made their successful entry based on an innovative concept or novelty.Shubham restaurant will offer an innovative product in a familiar style at a competitive price.Our aggressive plan of delivery will also give me an advantage to create a good market share

before the competition can adjust or similar concepts appear.

Competitive Strategy

There are three major ways in which we will create an advantage over our competitors;

Product identity, quality, and novelty High employee motivation and good sales attitude Innovative and aggressive service options.

Shubham restaurant will be the only restaurant among all the competition which focuses theentire menu on healthy, low-fat cooking. Each of the competitors offers at least one "healthy"selection on their menu. Gujarati Dhaba even has an entire section called "On the Lighter Side"

but in all cases they are always seen as alternatives to the main style being offered. The targetmarket will perceive Shubham restaurant as the destination location for healthy, low-fat cooking.


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Marketing Plan & Sales Strategy Market Penetration

Entry into the market should not be a problem. The store has high visibility with heavy foottraffic all day long. The local residents always support new restaurants and the travelers do nothave fixed preferences. In addition, Rs. 4, 00,000 has been budgeted for a pre-openingadvertising and public relations campaign.

Marketing Strategy

Focusing on the unique aspect of the product theme (healthy, tasty foods) a mix of marketingvehicles will be created to convey our presence, our image, and our message.

Print media -- local newspapers, magazines and Hoardings in busy areas Broadcast media -- local TV channel and special interest shows Hotel guides , concierge relations, Chamber of Commerce brochures Misc . -- yellow pages, charity events (organized cooking event) and loyalty card

The marketing effort will be split into 3 phases;

1) Opening -- An advanced notice (press packet) sent out by the PR firm to all media and printedannouncement ads in key places.

2) Ongoing -- A flexible campaign (using the above media), assessed regularly for effectiveness.

3) Point of sale -- A well-trained staff can increase the average check as well as enhancing thecustomer's overall experience. Word-of-mouth referral is very important in building a customer

base.

Future plans and Strategic Opportunities

Catering to offices (even outside of our local area) may become a large part of gross sales. Atthat point a sales agent would be hired to directly market our products for daily delivery orcatered functions.


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Operations Facilities & Offices

The restaurant at Sarthana Jakat naka is a 3500 Square foot space. It was formerly a restaurantand needs on minor structural modifications. New equipment and dining room furnishings will

be purchased and installed by the general contractor. Offices of the corporation will be at ouruncles home but la ter on moved to the restaurant after opening.

Hours of Operation

Service will begin at 4:00 AM and end at 1:00 PM.

Employee Training & Education

Employees will be trained not only in their specific operational duties but in the philosophy andapplications of our concept. They will receive extensive information from the chef and be keptinformed of the latest information on healthy eating.

Systems & Controls

A big emphasis is being placed on extensive research into the quality and integrity of our products. They will constantly be tested for our own high standards of freshness and purity. Foodcosts and inventory control will be handled by our computer system and checked daily bymanagement.

Food Production

Most food will be prepared on the premises. The kitchen will be designed for high standards ofsanitary efficiency and cleaned daily. Food will be made mostly to order of customers and storedin large coolers. We will have in snacks vadapov, sandwich, idly, dabeli, chines bhel and

panipuri, Dhosa, Pavbhaji, Manturium also. We will have special machine like microwaving forsandwich.


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Management & Organization Key Employees & Principals

We are the owner of the Shubham restaurant and our one of the board of director Mr. KrishnaChandra Rai brings with him a track record of success in the natural foods industry. Hismanagement style is innovative and in keeping with the corporate style outlined in the missionstatement.

Compensation & Incentives

Shubham restaurant will offer competitive wages and salaries to all employees with benefit packages available to key personnel only.

Board of Directors

An impressive board of directors has been assembled that represents some top professional fromthe area.

Consultants & Professional Support Resources

At the present, no outside consults have been retained, excepting the design department at BestEquipment.

Management Structure & Style

Out of Four people Mr. Nitin Panara will be responsible for getting vegetables and food relatedRaw materials, Mr. Krishna Chandra Rai will be responsible for arrangement of Restaurant, Mr.

bhavesh Pipaliya will be responsible for Handling customer query and marketing activities andMr. Khusal will be responsible for handling kitchen staff and Financial Aspects . Everyone willreport to each other at any time and everyone has to help to each other.


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Long-Term Development & Exit PlanGoals

Shubham restaurant is an innovative concept that targets a new, growing market. We assume thatthe market will respond, and grow quickly in the next 3 years. Our goals are to create areputation of quality, consistency and security (safety of food) that will make us the leader of anew style of dining.

Strategies

My marketing efforts will be concentrated on take-out and delivery, the areas of most promisinggrowth. As the market changes, new products may be added to maintain sales.

Milestones

After the restaurant opens, we will keep a close eye on sales and profit. If we are on target at theend of year 3, we will look to expand to a second unit.

Risk Evaluation

With any new venture, there is risk involved. The success of our project depends on the strengthand acceptance of a fairly new market. After year 3, we expect some copycat competition in theform of other independent units.

Exit Plan

Ideally, Shubham restaurant will expand to five units in the next 10 years. At that time, we willentertain the possibility of a buy-out by a larger restaurant concern.


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Financial Plan

Particulars Amount (Rs.)Legal 100,000Sationary 20,000Rent 1,200,000R&D 60,000Equipment 349,050

Insurance 120,950Total 1,850,000

Start up Expenses

Particulars Amount (Rs.) Particulars Amount (Rs.)To Raw Material purchased 720000 By Sales 1678650To Light and Power 200000 By Closing Stock 1000000To G/P carried down 1758650

2678650 2678650

To Depriciation 130000 By G/P Carried Down 1758650To Insurance 120950 By Discount 92500To Salaries 480000To Rent 1200000To Advertisement 400000To Tax 150000To Net Profit -629800

1851150 1851150

Projected Profit and Loss Account


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Liabilities Amount (Rs.) Assets Amount (Rs.)Capital Reserves and Surplus Fixed AssetsOwners Capital 1040000 Furnitures 1500000Profit and Loss Account -629800 Fixuters 749500Current Liabilities and Provisions Equipments 349050A. Current Liabilities Current Assets, Loans and AdvancementsBills Payable 17000 A. Current AssetsCreditors 4000000 Stock 1000000B. Provisions Cash 428650Provision for Taxes 100000 Bank 600000Provision for Contingencies 100000

4627200 4627200

Projected Balance Sheet of Shubham Restaurant

Particulars Quanti ty Price Amount (Rs.)Sandwish 25 25 625Vadapov 40 10 400Dabeli 35 7 245Panipuri 30 10 300Idly 30 8 240Masala Dhosa 30 14 420Mysore Dhosa 15 25 375Pavbhaji 20 20 400

Manchurium 15 30 450Chinese Bhel 15 30 450Noodles 15 30 450Coldrinks 310

4665

Daily Sales


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Particulars Amount (Rs.) Amount (Rs.) Amount (Rs.)Sales 1678650

Variable OverheadsPurchases 720000Light and Power 200000Labor 25000Total Variable Cost 945000Contribution 733650Fixed OverheadRent 1200000Salaries 480000Insurance 120950Advertisement 400000Total Fixed Cost 2200950

35035950

BEP Analysis

BEP in Sales (Fixed Cost*Sales/Contribution)BEP in Years

64840804 hotel business plan

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