Eco healthy

restaurant

Coming Soon @

CHENNAIPresented by

Jeetesh KumarAjeet TyagiRashmi RanjanAbhideep HazariSuhail Seth

Overview

• The Eco Healthy Restaurant• What is Organic Food?• Business Motive• Future Growth Prospects• SWOT Analysis• Business Startup• Operations & Raw materials • Unique Selling Preposition• Expansion and Future Prospects• What we provide!!!

Eco Healthy Restaurant!!!!• OUR FOOD IS ...

...MADE FROM:fresh vegetables, whole grains, legumes, beans, nuts, seeds, fruits, natural condiments, sea vegetables and soya products, grown by local farmers certified to be using organic farming methods!

...COOKED IN:fine European stainless steel cookware with water that's been filtered, softened, and purified through reverse osmosis. We don't even own a microwave.

...BALANCED WITH:Oriental health philosophies and heart-healthy western nutrition recommendations.

...FREE OF:all cholesterol, and saturated fats, as well as refined sugars, artificial sweeteners, white flours, preservatives or pesticides.

...NATURALLY:in fibre. We use sea salt and high quality low in fat, has a hearty protein base and is high mono-unsaturated oils only occasionally & sparingly. Fresh herbs & spices add a variety of gourmet flavors.

...MADE FRESH:by hand, right here

What is Organic Food?

• Organic foods are made according to certain production standards. For the vast majority of human history, agriculture can be described as organic; only during the 20th century was a large supply of new synthetic chemicals introduced to the food supply. This more recent style of production is referred to as "conventional".

• Under organic production, the use of conventional non-organic pesticides, insecticides and herbicides is greatly restricted and saved as a last resort.

• If livestock are involved, they must be reared without the routine use of antibiotics and without the use of growth hormones, and generally fed a healthy diet.

Business Motive

• Tapping the health conscious customer base in Chennai.• Very few players in the whole

country.• Creating awareness about Living on

healthy & natural food.

Future Growth prospects

• As per now there are no restaurants with similar menus.

• We will get the edge of monopoly for the initial years.• We believe that the market can be segmented into

three distinct groups that it aims to target. The first group is the lonely rich people. The second group that will be targeted is young happy customers which are growing at an annual rate of 8% . The last group which is particularly interested in the menu's healthy offerings is dieting women.

SWOT ANALYSIS

• STRENGTHS: First Mover Advantage in the target market.

• WEAKNESSES: Huge cost in Acquiring and Supply Chain.

• OPPORTUNITIES: Emerging health consciousness among people. People ready to pay for healthy food available.

• THREATS : Possible increase in competition & Supply of the right Product by farmers.

BUSINESS STARTUP

Startup Investment Aspects

• Place ( Rent and Advance)• Transport Facility• Staffing & Personnel Salary• Ambience Designing & Setup• Incentives to the farmers• Advertising and Promotion• Modern kitchen equipments• Gas connection & Electricity (with Power Backup)• Raw Material

Advertising and Promotion

• Distribution of Flyers• Page Ads in the local daily• Radio Ads• Poster s and banners in and around the

locality• Promotions through Health Institutions &

Doctors

Finance and Accounting

• Vertical method is followed.• The accounts are maintained on a fair and true

nature.• Straight line method is followed for calculating

depreciation.• No bank loan is taken for the business.• There are opening and closing stock for the business

as there are production Standards (SOP)• Only installation cost are the trading expenses.• The initial ambience setup of Restaurant, kitchen,

Raw material & Rental for space cost are capital expenditure.

Profit & Loss A/C of Restaurant ( 4 Years)

 Particulars Year1 Year 2 Year 3 Year 4

Sales 36,75,600 56,50,000 73,00,000 1,00,00,000

Food cost @ 35% 12,86,460 19,77,500 25,55,000 35,00,000

Packing Cost @ 1% 36,756 56,500 73,000 1,00,000

Total Cost of Sales 13,23,216 20,34,000 26,28,000 36,00,000

         

Gross Margin 23,52,384 36,16,000 46,72,000 64,00,000

Gross Margin % 64.00% 64.00% 64.00% 64.00%

Profit & Loss A/C of Restaurant ( 4 Years)

 Particulars Year1 Year 2 Year 3 Year 4

Expenses        

Payroll 3,00,000 3,50,000 4,00,000 5,00,000

Sales and Marketing and Other Expenses 50,000 70,000 75,000 85,000

Initial expenses (Licenses, Ambience Setup Etc) 1000000 0 0 0

Utilities 1,200 1,260 1,300 1,400

Loan Payment 0 1412500 1825000 1000000

Transport Cost @ 20% of Total Food cost 264643.2 406800 525600 720000

Rent @ 10% of sales 367560 565000 730000 1000000

Total Operating Expenses 19,83,403 28,05,560 35,56,900 33,06,400

Profit & Loss A/C of Restaurant ( 4 Years)

 Particulars Year1 Year 2 Year 3 Year 4

Profit Before Interest and Taxes 3,68,981 8,10,440 11,15,100 30,93,600

EBITDA 3,68,981 8,10,440 11,15,100 30,93,600

Interest Expense 0 0 0 0

Taxes Incurred 36756 56500 73000 100000

Net Profit 1,421 8,10,440 11,15,100 30,93,600

Net Profit/Sales 0.04% 14.34% 15.28% 30.94%

Initial Investment (By Loan) 4156400     

Break Even after paying all loans 0 2743900 412500 0

BEP analysis• The Break even point is estimated to reach

after 4th year since the commencement of the business

• At the end of the 4th year Profit will be Rs.30,93,600 (30.94% of sales)

• Gross profit Margin=64.%• Operating Expenses=53% (1st Year) which will

get reduced to 33% (4th Year)

Operations

• The SOP will have all the standard recepies to follow which will help the food cost in control.

• Chef will have the over all control of kitchen and will ensure the Supplies and quality of food.

• Restaurant Manager will be the first incharge of the restaurant who will ensure the operations & costs with service in the restaurant.

• Restaurant manager will make the reports and will help in marketing too at local level.

Unique Selling Proposition

• We will use first quality organically grown ingredients often served to you less than forty-eight hours after harvest. In addition, we use no refined sugars, no preservatives, no dairy, no eggs, no animal products whatsoever.

• The Restaurant inside carries locally made, fair trade or earth friendly products in keeping with their sustainable, pro-planet approach to business.

• Most foods and grains are organically grown with as many as possible from local farms.

Unique Selling Proposition

• The soups will be our own recipes, using fresh herbs, and all foods cooked in nut or olive oils. Our chickens will be naturally raised and range fed, and we will use only natural meats, without antibiotics or force fed hormones. Only the freshest of fish will be served and we will minimize the use of dairy ingredients.

• The steam convection oven is our pride and joy, but alas, against our principals. All foods and baked goods are prepared on the premises in our kitchens.

• We use no food colourings, preservatives, refined sugar or bleached flour. Our bread is baked daily from organic grains.

Unique Selling Proposition

We will feature some wines with organically grown grapes and will

always feature fine wines from small wineries known for their care and award

winning efforts. For those who would like to enjoy the ambience of wine

without the alcohol.

Raw Materials Acquirement

• The most important factor is the raw materials for the production.

• This will be acquired from local farmers directly.• The company’s transport will be used for the supply.• Tie-ups will be made with the farmers to provide

the organically grown vegetables, cereals & pulses.• They will be awarded with some incentives for the

regular supply and Good Quality.

Financial Estimation of the Business w.r.t growth of business

• Profit of the Restaurant is set to be doubled in 4th year• In each years profit the proprietors divides the profit in

50:50 ratio.• 50% of the profit is taken by the owner and 50% of the profit

is kept for future expansion of the business• After 6-7 years restaurant will expand with 2 more

restaurants• All the loans are being paid every year with interest at 25 %

of sales• Business will reach the sales of 1 crore in 4th year.

Expansion and Future prospects!!

• Business is expected to expand with increase in regular customers and inclusion of Organic BAR which will be the USP of the restaurant will act as a blackhole in the city to increase the revenue and profitability.

• Restaurant will acquire the lands and start their own farming of organic vegetables in near future.

• This step will reduce the transportation cost and will help in further expansion in the other cities.

Further Discotheques will be added to tap the techno class people who are ready to pay for the quality and the enjoyment.

What we provide!!!

THANK YOU