pfr report final

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PROJECT FEASIBILITY REPORT ON

A USER FRIENDLY RESTAURANT

A project

Submitted in the partial fulfillment of the

requirement for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

BY

PRIYANKA SINHA

(BBA/3512/08)

DEPARTMENT OF MANAGEMENT

BIRLA INSTITUTE OF TECHNOLOGY

MESRA-835215, RANCHI -2010

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CERTIFICATE OF APPROVAL

The foregoing thesis entitled PROJECT FEASIBILITY

REPORT ON A USER FRIENDLY RESTAURANT, is

hereby approved as a certificate study of researchtopic and has been presented in satisfactory

manner to warrant its acceptance as prerequisite to

the degree for which it has been submitted.

It is understood that by this approval, the

undersigned do not necessarily endorse any

conclusion drawn or opinion expressed therein, but

approve the thesis for the purpose for which it is

submitted.

(Internal Examiner)

(External Examiner)

(Chairman) Head of

Department

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DECLARATION CERTIFICATE

This is to certify that the work presented in the

thesis entitled PROJECT FEASIBILITY ON A USER

FRIENDLY RESTAURANT in partial fulfillment of the

requirement for the award of Degree of Bachelor Of

Business Administrations of Birla Institute Of

Technology Mesra, Ranchi is an authentic work

carried out under my supervision and guidance.

To the best of my knowledge, the content of the

thesis does not form a basis for the award of any

previous Degree to anyone else.

Date:

(Guides name & signature)

De

signation:

De

partment:

Head

Dean

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Department of management (Under

Graduate Studies)

Birla Institute of Technology Birla

Institute of Technology Mesra,Ranchi- 835215 Mesra, Ranchi-

835215

AcknowledgementI would like to acknowledge my teacher Mrs.Sraboni Dutta for giving me theopportunity to do such a wonderful project feasibility report It was her

perspective guidance, constant encouragement, constructive criticism and

affection which helped me to complete the project. I would also like to thanks my

faculty-in-charge Mr. R.T. Goswami to provide me an opportunity to do this

project. I would also like to sincerely thank our librarian for providing me with the

right kinds of books to refer to. Also I would like to thank the almighty and my

family for the support and encouragement to complete this project.

Priyanka Sinha

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CONTENTS

CHAPTER 1-EXECUTIVE SUMMARY

CHAPTER 2-COMPANY DETAILS

CHAPTER 3-OPERATIONAL DETAILS

CHAPTER 4-HUMAN RESOURCE PLAN

CHAPTER 5-TECHNOLOGICAL PLAN

CHAPTER 6-MARKETING PLAN

CHAPTER 7-FINANCIAL PLAN

CHAPTER 8-CONCLUSION

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RAINBOW

A USER-FRIENDLY RESTAURANT

EXECUTIVE SUMMARY

The food service business is one of the largest industry in the country. An

average Indian spends 10% of his/her income on meals away from home.

This number has been increasing for the past seven years. In the past five

years the restaurant industry has out-performed. The reasons given by the

market research and industry analysis contained in the survey report

include: 1) lifestyle changes, 2) economic climate, and 3) increase of

product variety.

The business that I am going to start is of a user-friendly restaurant. My

restaurant would use a new way to serve people. There are a large number

of restaurants in the city. Many of them have a very good business in the

market. So, in order to attract the customers, I will be using a new

technique to serve people. It is definitely an important fact that good quality

food attracts customers. But in todays competitive market, just serving

good quality food may not serve your purpose.

Nowadays people just dont want only good quality food, they want

something extra. They also give importance to the experience, feeling they

get when they go to a restaurant. So, apart from good quality food and

service, I will be concentrating more on providing them with a new

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environment, a new experience, a new feeling that they can enjoy when

they come to Rainbow.

There will be a computer screen on every table. The screen will contain the

details of the menu available, types of dishes, prices and all suchinformation. When a person will come and sit, he just needs to select what

kind of food he wants from the screen say veg or non veg. Then a list will

appear showing which type of dishes he can get say Chinese, Indian,

South-Indian, Thai, Mexican, Italian etc. He needs to select which type of

dish he wants.Then a list of dishes will come and he needs to choose

accordingly.The prices of the items will also be there.Once he selects the

items,the processing time will be displayed say 20 minutes is the

processing time for the dishes ordered by a person.During the processing

time also,he can play some songs or games available on the screen,if he or

she wants.A waiter will serve the food within the processed time.

This new, technologically advanced way to serve people can be a strong

competitive advantage for us.People might like this new way of

serving.Even if you have a problem in selecting menu or in understanding

the system,you can always call upon a person who is always there to help

you out.

INTRODUCTION:

OBJECTIVE:-

The objective of the project is to study the feasibility of the restaurant that I

am going to start.For studying the feasibility of the restaurant,marketing

plan,technological plan,Human Resource plan,Financial plan of thebusiness is made.Also the profitability and risk analysis of the project is

done by making a projected Profit & Loss account,Projected Balance

Sheet.The risk factors have also been studied.

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SCOPE:

The business has good opportunities for growth. Quality foods that we are

going to provide plus the new and advanced way that we are using to serve

people might help us to reap good profits.In the first few years we may notbe earning much profit,the reason being that people might take time to

adapt to such system of getting served,but the project has got great

potential in the long run.People may like this new experience which we are

going to provide.

SWOT ANALYSIS:

STRENGTH ANALYSIS:

1.The new way which we are going to serve people will be our major

strength. There will be a computer screen on every table.The screen will

contain the details of the menu available,types of dishes,prices and all such

information.When a person will come and sit,he just needs to select what

kind of food he wants.Processing time of the food will be displayed.And a

waiter will bring the food within that time.

2.Wide variety of foods will be available from Indian to Chinese, Mexican to

Continental,Spanish to Italian.

3.We will be serving at a competitive price which is neither too high nor too

low.If we will provide food at a low price,we may earn less revenue.And if

we charge high price,we may lose customers.

WEAKNESS ANALYSIS:

We may not get very good response in the initial years because some

people might not show interest towards this new method of getting served.

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But for such people we will have some waiters who will be there to help

them.If they want to order their food by calling a waiter and giving him the

order, they can do that.

OPPURTUNITIES:-

1.High potential profits.

2.Since it is a restaurant with a new way to serve people,it may help us to

reap good profits.

THREATS:-

1.Competition from pre-established units.

2.Increased price.

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Use of high technology and less manpower will be an important feature of

Rainbow. There will be a computer screen on every table.The screen will

contain the details of the menu available,types of dishes,prices and all such

informations.When a person will come and sit,he just needs to select what

kind of food he wants from the screen say veg or non veg. Then a list willappear showing which type of dishes he can get say Chinese, Indian,

South-Indian,Thai,Mexican,Italian etc.He needs to select which type of dish

he wants.Then a list of dishes will come and he needs to choose

accordingly.The prices of the items will also be there.Once he selects the

items,the processing time will be displayed say 20 minutes is the

processing time for the dishes ordered by a person.During the processing

time also,he can play some songs or games available on the screen,if he or

she wants. It may be a strong competitive advantage for our restaurant.

OPERATIONAL DETAILS

ProductionFood production and assembly will take place in the kitchen of the

restaurant. Fresh vegetables, meat and dairy products will be used tocreate most of the dishes from scratch. The chef will exercise strictstandards of sanitation, quality production, and presentation or packagingover the kitchen and service staff.

ServiceThere will be three ways by which a customer can purchase food.They mayuse the computer screen fixed at their table.They can select the items onthe screen.Or they can call a waiter and give him the order. Delivery (anindirect form of take-out) will be available at certain times and to a limited

area.

Hours of OperationThe restaurant will be open for 7 days a week. Service will begin at 11:00

AM and end at 11:00 PM. The restaurant will be closed National holidayslike Republic Days,Independence Day,Gandhi Jayanti.

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Employee Training & EducationEmployees will be trained not only in their specific operational duties but inthe philosophy and applications of our concept. They will receive extensiveinformation from the chef and be kept informed of the latest information onhealthy eating.

Systems & ControlsA big emphasis is being placed on extensive research into the quality andintegrity of our products. They will constantly be tested for our own highstandards of freshness and purity. Food costs and inventory control will behandled by our computer system and checked daily by management.

HUMAN RESOURCE PLAN

Management & Organization

This will be a sole-proprietorship firm. I will be the sole owner of the firm.The management style will be innovative and kept in pace with the

corporate style outlined in the mission statement.

Compensation & IncentivesRainbow will offer competitive wages and salaries to all employees withbenefit packages available to key personnel only.

Management to be AddedThere will be a general manager and executive chef. These key employeeswill be well chosen and given incentives for performance and growth.

Management Structure & StyleThe general manager will be the head of the restaurant. The assistant

manager and chefs will report to him. The sub-chefs will report to the chef.

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TECHNOLOGICAL PLAN

Use of high technology and less manpower will be an important feature of

Rainbow. There will be a computer screen on every table.The screen will

contain the details of the menu available,types of dishes,prices and all suchinformations.When a person will come and sit,he just needs to select what

kind of food he wants from the screen say veg or non veg. Then a list will

appear showing which type of dishes he can get say Chinese, Indian,

South-Indian, Thai, Mexican, Italian etc. He needs to select which type of

dish he wants. Then a list of dishes will come and he needs to choose

accordingly. The prices of the items will also be there. Once he selects the

items, the processing time will be displayed say 20 minutes is the

processing time for the dishes ordered by a person. During the processing

time also, he can play some songs or games available on the screen, if he

or she wants. It may be an strong competitive advantage for our restaurant.

MARKETING PLAN

To attract customers for our restaurant we need to focus on:

- The creation of a distinctive, inviting and friendly atmosphere that willprovide a new dining experience in a growing market.

- To provide a growing and loyal customer base with the highest level of

service, focus on quality, and attention to detail.

- Controlling costs at all times, in all areas.

- Hiring the best people available, training, motivating and encouraging

them, and thereby retaining the most attentive and efficient staff possible.

- Continually researching the market to keep on top of trends and customer

tastes.- Conducting ongoing marketing and promotional activities.

- Taking feedback from our customers and considering their

recommendations,if any.

Although the restaurant industry is very competitive, the lifestyle changescreated by modern living continue to fuel its steady growth. Our restaurant

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marketing team believes that these trends are very important and that anynew restaurant needs to be well positioned for growth and success.

GoalsRainbow is an innovative concept that targets a new, growing market. Weassume that the market will respond, and grow quickly in the next 5 years.Our goals are to create a reputation of quality, consistency and security(safety of food) that will make us the leader of a new style of dining.

The Challenges

Though the restaurant market in the Indian setting is strong andestablished, certain challenges can still affect the success of the plannedrestaurant business. For instance, the location of the establishment shouldbe greatly accessible to the market.So,our restaurant will be in such aplace which is easily acessible from the market.Aside from physicallocation, the food or menu offered by the restaurant, the new innovationsas well as the service style of the restaurant will be such that suitsconsumer needs and tastes. All of these criteria will be taken into accountso as to develop practical solutions to overcome possible business

challenges.

Accessibility

The accessibility of the restaurant project is a broad aspect to consider.However, it is important to take note that in this criterion, the consumer isthe focal point. Since the restaurant project will be placed in the city area,the place will be highly accessible to employees working within the citys

work sites. In terms of people volume, it is particularly high in this case as itwill be near buildings and establishments were a lot of people are working.

As a large number of people are driving their own private cars to work,there would be an allotted space for parking. Hence, the place will be builtin such a way that the area is maximized for eating and parking spaces. Inaddition, there should be efforts by the builder to make the place accessiblefor the handicapped. For these problems, the project team will try to ensure

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that the total area is well-divided to house all required amenities.We willtake advice from the restaurant designers and builders who have thenecessary expertise to make the place highly accessible for the consumers

Cultural Diversity and Individual Preferences

Consumers are highly diversified at present, making it difficult to meetevery consumer preference (Marcheso, 2004). In India, as tourism is high,cultures are also diverse. Hence, the overall ambiance, cost and foodoffered by the planned establishment should be able to meet differentconsumer standards.Also,we will be offering a variety of food and beverageitems to meet individual customers tastes and preferences.

Competition

The competition within the food industry is high in the Indian setting. One ofthe greatest challenges perhaps in this aspect is brand recognition. Sincewell-known fast food brand names had been introduced in the market,brand recognition has been significant in the country.Consumers areparticular with the brand due to their need for quality, cost and convenience

assurance. Brand indeed is a strong competitive advantage and at timesdifficult to overcome. However, one way of resolving this problem is byoffering something different from what is offered by well-known brands.Forinstance,the way we are going to serve people is diferrent from others.Theconcept of a user friendly restaurant is quite new in the market.Also,ourfoods will be known for its simplicity and healthiness. These characteristicsare not mainly offered by known fast food chains, hence,could also be avaluable competitive advantage.

Industry Analysis

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Although the restaurant industry is very competitive, the lifestyle changescreated by modern living continue to fuel its steady growth. More and morepeople have less time, resources, and ability to cook for themselves.Trends are very important and Rainbow may be well positioned for thecurrent interest in lighter, healthier foods at moderate prices.

Products & Related Services

The Rainbow Restaurant will be offering a menu of food and beverageswith a distinctive image. There will be a computer screen on everytable.The screen will contain the details of the menu available,types ofdishes,prices and all such informations.When a person will come and sit,he

just needs to select food he wants from the screen.Then the processingtime will be displayed and waiter will serve you the food within that time.

The MenuThe Rainbow menu includes different types of food ranging from Indianfood to Chinese food, Spanish to Italian, Mexican to Thai food with acommon theme -- healthy (low-fat, low cholesterol, natural ingredients),flavorful, and familiar. Our goal is to create the image of light satisfying and

still nutritious food.

The Target Market

It will be located in an area which is easily acessible by customers and iswell-populated.

Market Location & Customers

The Restaurant will be located in Sector-V,Salt Lake,Kolkata.The customerbase will come from 4 major segments;

1.Local population -- the area of Salt Lake which is quite large.

2. Colleges and Universities There are a large number of colleges in thatarea.

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3.Tourism -- between hotels, motels, bed & breakfast rooms and inns, thereare over many rooms available. Last year they were at a large occupancy.

4.Local businesses There are various local businesses in the area with alarge number of employees.

The food concept and product image of Rainbow will attract 3 differentcustomer profiles;

The student -- more and more young people have developed healthyeating habits. Some also go through a "health food phase" while incollege.

The health conscious person of any age or sex -- this includesanyone on a restricted or prescribed diet or those who have

committed to a healthy diet. Curious and open-minded -- "if you try it, you will like it." Through

marketing, publicity, and word-of-mouth, people will seek out a newexperience and learn that nutritious food can be tasty, fun,convenient, and not much expensive.

Market Trends & The FutureThe population and demographics of Salt Lake have increased since the

last 15 years. Tourism has increased 24% over the last 3 years and ispredicted to keep growing. Local businesses are increasing at a rate of 8%yearly.

The idea of a health consciousness through nutritional awareness anddietary change has been slowly building for the last 7 years. The extensivegovernment studies and new Food Guide Pyramid have given everyone anew definition of a balanced, healthy diet. This is not a fad but a truedietary trend backed by the scientific and medical community, the media,the government, and endorsed by the big food manufacturers. As the

Foodservice 2000 report stated, this trend will be even more important bythe turn of the century.

As people want to stay home more and cook less our strategy of deliveringprepared meals on a weekly or monthly arrangement may be a widespreadaccepted new way of eating.

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The Competition

There are over two dozen restaurants in the Salt Lake area that sell food atsimilar prices. Although this presents an obvious challenge in terms ofmarket share, it also indicates the presence of a large, strongpotential.Rainbow will use an innovative way to serve people.Ouraggressive plans of take-out and delivery will also give us an advantage tocreate a good market share before the competition can adjust or similarconcepts appear.

Competitor's ProfileCompeting with Rainbow for the target market are these categories of foodproviders:

Independent table service restaurants of similar menu and pricestructure. Several food-chains. Commercial foodservice companies serving students directly.

Independent operators include Barbi-Q, Spicy n Tasty .They are doingquite well.The major chain restaurants are Mc Donalds,Pizza Hut,Chili'sand Bertucci's. All are relatively new but well established and profitable.They have big resources of marketing and/or a specialty product orattraction. In addition there are some local catering companies that deliver

prepared meals daily to offices.

Competitive StrategyThere are four major ways in which we will create an advantage over ourcompetitors;

Emphasis on use of better technology to serve people.

product identity, quality, and novelty

high employee motivation and good sales attitude

innovative and aggressive service options.

Rainbow will be the only restaurant among all the competition whichfocuses the entire menu on healthy, low-fat cooking. Each of thecompetitors offers at least one "healthy" selection on their menu. The target

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market will perceive Rainbow as the destination location for healthy, low-fatcooking.

MilestonesAfter the restaurant opens, we will keep a close eye on sales and profit. Ifwe are on target at the end of year 1, we will look to expand to a secondunit.

Risk EvaluationWith any new venture, there is risk involved. The success of our projecthinges on the strength and acceptance of a fairly new market. After year 1,we expect some copycat competition in the form of other independentunits. Chain competition will be much later.

Marketing Plan & Sales Strategy

Market PenetrationEntry into the market should not be a problem. The store has high visibilitywith heavy foot traffic all day long. The local residents and students alwayssupport new restaurants and the tourists do not have fixed preferences.

Marketing StrategyFocusing on the unique aspect of the product theme (serving healthy, tastyfoods in a computerized way) a mix of marketing vehicles will be created to

convey our presence, our image, and our message.

Print media -- local newspapers, magazines and student publications Broadcast media -- local programming and special interest Direct mail -- subscriber lists, offices for delivery Misc . -- yellow pages, charity events

Future plans and Strategic OpportunitiesCatering to offices (even outside of our local area) may become a largepart of gross sales. At that point a sales agent would be hired to directly

market our products for daily delivery or catered functions

FINANCIAL PLAN

Here, we analyze the total costs of a proposed project (including allconstruction costs and operating costs) and the potential revenues that the

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project can get. If the potential revenues of the proposed project can coverall of the costs, the project is financially feasible.

A restaurant's profit and loss statement, or P&L, is much like an incomestatement for the restaurant. This document serves as a report tosummarize income, expenses and inventory, illustrating a restaurant's totalprofits and losses over a period of time. Our P&L statements involve twomajor sections:

1.The section first specifies any sources of revenue, including food,beverage sales, merchandise sales, catering, and any other source ofincome important to the restaurant.

2.The other section involves all operating expenses in the restaurant.This includes payroll, land and building, and repairs, among others

The difference between the revenue and the expenses determines whetherthe restaurant reaps a profit or suffers a loss at the end of a given period.

Restaurant Revenue

All sales income is recorded on the P&L statement. The common sourcesof our revenue are:

Food and beverage salesThe most obvious means of income in our restaurant is food andbeverage sales, since this is the reason most people come to ourrestaurant in the first place. Food sales will likely be our major source ofincome.

Merchandise

Merchandise is another method of boosting profits. Merchandise includessouvenirs, gifts and other retail items unique to our establishment that canincrease sales, especially from tourists or holiday shoppers. Merchandiseincludes the following:

Gift certificates or gift cards Cookbooks

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T-shirts Hats Mugs Prepackaged food or beverages

CateringAnother method of creating income is by catering, or engaging in other off-site selling opportunities. Catering parties and events for customers couldbe a great way to increase daily sales and reach out to people who havenever tried our restaurant. Limited service restaurants can offer a cateredlunch option for surrounding businesses. Smoothie shops can sellsmoothies at local high schools and sporting events. It pays to learn aboutour surrounding area and how you can take our sales outside ourrestaurant's walls.

There are many expenses involved in operating a restaurant. Some of thecommon expenses in our restaurant include:

Cost of Goods Sold (COGS)Cost of Goods Sold (COGS), also known as Cost of Goods Used or simplyusage, is the cost of the products, or goods, that our restaurant sells.Essentially, this is the money spent on inventory. This is usually denoted

just below total sales on the P&L report. To control usage and make thebiggest profit, our restaurant would purchase enough products to serve our

customers without running out and without having too much left over goingbad on the shelves.

PayrollAlso called labor cost, this is one of the most important expenses in ourrestaurant. Part of your business's income must go to the manager, chefs,waiters and others who work in our restaurant.

,Operating ExpensesThere are several daily expenses incurred while running the restaurant,such as purchasing or replacing chinaware, flatware or glassware, as wellas any linens or paper products that may need to be cleaned orreplenished. These can be lumped into operational expenses on our P&L.

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Occupancy CostsIt includes property taxes, water and sewer taxes, gas and electric,insurance etc

Cash flow is the other measure that restaurants live and die by. Mostrestaurants fail in their first year of operation because they simply run out ofcash to keep the business going. The funds from the loan run out, creditcards and lines of credit have been tapped, and the money faucet has driedup.

Cash Management on Premises

1. We will accept cash as well as credit cards. We will Shop around forthe cheapest processing rate and settle our transactions on a daily

basis after closing.2. Keep a drop safe in the office and make cash deposits at least oncea day, varying the times and people we send to the bank.

TOP CASH BURNERS1. Payroll - Staff must be paid on time. Morale will plummet and servicewill take a nosedive if staff is not paid, aside from it being unethical. So,we will try to ensure that the staff are paid on time.2.

Food Inventory - Theres no way to know exactly how many peoplewill order food in a restaurant on any given day, but one still must haveenough fresh food on hand to make all the items on ones menu. Whilegood chefs know how to minimize waste, there is no way to avoidspoilage when business is down 50% on a Friday night because theresa major thunderstorm with torrential rain right outside the door. Fish, forexample, is only at peak freshness for a relatively short period of time.3.Loan Payments -Loans and mortgages must be paid on time. Iftheyre not, the bank or mortgage company may foreclose.

4.Miscellaneous Expenses - Even though we may budget forrepairs and other unforeseen expenses, things always seem to crop upwhich require immediate cash. It's easy to underestimate the costs of re-printing the menu, paying the plumberfor fixing the leak in the restroomand all the rest other expenses.The projected Profit & Loss account for the first year is given in the next

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PROJECTED PROFIT & LOSS A/C(for the year ending as on 31st Dec,2011)

DR.PARTICULARS AMOUNT(in Rs) PARTICULARS AMOUNT(in

TO KITCHEN EXPENSES: BY SALES:

RAW INGREDIENTS 360000 FOOD SALES 1042

KITCHEN EQUIPMENTS 140000 BEVERAGE SALES 300

CATERING 205

TO WAGES 60000 MERCHANDISE SALES 54

TO SALARY 110000

TO MANAGERIAL REMUNERATION 50600 BY CLOSING STOCK 34

TO DEPRECIATION:FURNITURE 1750

VEHICLES 10000

BUILDING 100000

COMPUTERS 7500

TO INTERIOR EQUIPMENT

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ADD:INTEREST 168000 1568000 FURNITURE & FITTINGS 35000

LESS:DEPRECIATION 1750

CREDITORS 576000 COMPUTER 150000

LESS:DEPRECIATION 7500 1

LOANS FROM SUBSIDIARIES 200000 VEHICLES 200000


PROVISIONS:

STAFF BENEFIT SCHEME 95775 CASH IN HAND

PROVISION FOR TAXATION 31925

CASH AT BANK

GOODWILL

PATENT,TRADEMARK

PRELIMINARY EXPENSE

CLOSING STOCK

3308250 33

PROJECTED PROFIT & LOSS A/C

(for the year ending as on 31st Dec,2012)

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DR.

PARTICULARS AMOUNT(in Rs) PARTICULARS AMOUNT(in

TO OPENING STOCK 34000 BY SALES:

TO PURCHASES FOOD SALES 1135

RAW INGREDIENTS 384000 BEVERAGE SALES 274

KITCHEN EQUIPMENTS 27500 SNACK SALES 87

TO WAGES 65000 CATERING 228

TO SALARY 112000 MERCHANDISE SALES 45

TO SERVICE EXPENSES 35500

TO MANAGERIAL REMUNERATION 40000 BY CLOSING STOCK 20

TO OCCUPANCY COST

WATER AND SEWER 82750

PROPERTY TAX 36000

GAS & ELECTRIC 73000

INSURANCE AND REPAIRS 24000

TO PROVISION FOR CONTINGENCIES 6000

TO PROVISION FOR TAXATION 31000

TO DEPRECIATION

BUILDING 95000

COMPUTER 7125

FURNITURE AND FITTINGS 1662

VEHICLE 9500

TO ADVERTISEMENT EXPENSES 2000027


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TO REPAIR EXPENSES

BUILDING 4750

INTERIOR ITEMS 2000

OTHER EXPENSES 27000

NET PROFIT 672303

1790290 1790290

RAINBOW

A USER-FRIENDLY RESTAURANT

BALANCE SHEET

(as on 31stDec,2012)

CAPITAL & LIABILITIES AMOUNT(inRs) ASSETS AMOUNT(in Rs)

CAPITAL 836550 FIXED ASSETS:

ADD:NET PROFIT 672303 1508853 LAND 800000

BUILDING 1900000

BANK LOAN 1433135 LESS:DEPRECIATION 95000 1805000

LOANS FROM SUBSIDIARIE166000 1599135 FURNITURE & FITTINGS 33250


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PROVISIONS: COMPUTER 142500

PROVISION FOR TAXATION 31000 LESS:DEPRECIATION 7125 135375

STAFF BENEFIT SCHEME 75000 VEHICLES 190000


CASH IN HAND 90775

CASH AT BANK 117000

GOODWILL 6750

PATENT,TRADEMARK 27000

CLOSING STOCK 20000

3213988 3213988

CONCLUSION

Based on the project description, the plan for a user-friendly restaurant is agood establishment within the Indian business industry. Considering thecontinuous progress of the Indian restaurant sector, the project plan for theuser-friendly restaurant is likely to succeed. In India, an estimate of 5.5%growth in annual sales had been registered for its restaurant sector in1999.Though fluctuations in sales growth had been observed in the Indian

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restaurant market, the sector remained dynamic as menu transitions andnew brand innovations had been introduced by various establishments. Anumber of factors are also significant for the growth of the Indian restaurantindustry. Among these include the progress of tourism in the country,increase in disposable income as well as work and home pressures. Due tothese factors, a number of consumers have increased preference for goingto cafes and restaurants. In addition, restaurants are also viewed as goodalternatives for home cooking or for celebrating special events andoccasions. Within the Indian food establishment industry, the restaurantsector is the largest in the country. Various range of outlets from small, lesscostly operations to branded outlets are also present in the country. Basedon the consumer studies, eating at restaurants is now part of mostconsumers lives in the big cities in the country. In fact, the Target GroupIndex (TGI) has shown that 62% of its respondents have stated that they

eat out during the evenings, whereas 50.8% of the respondents eat outduring the day. These socio-economic factors have greatly contributed tothe boosted sales acquired during the past years. From these aspects, it isapparent that the restaurant sector in the Indian market has highpossibilities of further growth and development in the future. Thus, theproject plan for a user-friendly restaurant is likely to succeed in the industry.

If the business is meeting its projections by month nine, we will startscouting for a second location and develop plans for the next unit. Our fiveyear goal is to have 3 restaurants in the Park Street area with a combinedannual profit of between $500,000 and $1,000,000.

We have studied the operational plan, technological plan,marketingplan.The study of the financial feasibility of the project has been done. Aswe can see that our estimated revenues is more than our estimated costs,we can say that this project is financially feasible. The risk factors have alsobeen analysed.

The idea of starting a user-friendly restaurant is a quite different

concept.People may like this concept.A new experience,a newenvironment,a new feeling which Rainbow is going to provide may attractcustomers.They will probably like this new way of getting served. Such arestaurant may help us reap good profits .

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pfr report final

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