zayka@spiceforlife: business plan
TRANSCRIPT
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Presented by:Team Jack Welch (Team 9)
Brinda Balachander
Debnarayan Banerjee
Gagan Singh
Ira Singla
Priyanshu Mishra
Ranjini Ballal
Sulabh Sharma
Business Plan
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Contents
1. Executive summary ................................................................................ 3
2. Evaluation of Business opportunity ................................................. 3
3. Industry profile ........................................................................................ 5
4. Company profile ...................................................................................... 6
5. Marketing strategy ................................................................................ 10
6. Financial feasibility ............................................................................... 15
7. Conclusion ................................................................................................ 19
8. APPENDIX ................................................................................................ 19
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1. Executive summary
Our business plan is about ZAYKA which is a single-unit, good-sized restaurant basically
focused on healthy and ethnic food. Situated in Bangalore, ZAYKAs emphasis will be on
providing ethnic food.
ZAYKA offers its customers top quality food and a great ambience. ZAYKA aims at
providing different cuisines from around Indian sub continent. Ethnic recipes will be
used to provide the customers with a diverse & unique menu. It also emphasizes
healthy dishes, recognizing the trend within the restaurant industry for the demand for
healthy cuisine.
Market research has shown that although the restaurant industry is very competitive,
the lifestyle changes created by modern living continue to fuel its steady growth.
Therefore keeping in mind this steady growth, we have stepped into the venture of
creating ZAYKA and designed the marketing strategies, operating plan and analyzed the
financial feasibility of the venture. At the same time it is to be understood that per capita
income of people in India is increasing constantly, so, although the competition is high,
the opportunity is also great.
2. Evaluation of Business opportunity
Business plan for ZAYKA has been an opportunity for us to bring the concept ofUnity in
Diversity to life on paper. It has provided an outlet to express our passion for our idea
and sell it on to others.
Create significant value to customers: In the prevalent days of uncertainty,
people are becoming more conscious about what they eat and where they eat.
With the growing trends leading to concepts like specialty restaurants we
believe ZAYKA has a strong market. Its main target audience will be health
conscious individuals and families who naturally love ethnic food. Since ZAYKA
specialises in multi cuisine, the second target group will be the tourists and
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people who would like to taste different Indian cuisines. India on platter is
what ZAYKA has to offer!
Produce significant profit to promoters: The main promoters of the businesswill initially be the founders of the company. In the long run the returns that they
will get from their investment will be extremely high as a restaurant such as ours
never runs out of business with the number of food lovers in India and especially
when it is providing a blend of taste, health and ambience. They will start earning
their returns much faster than normal entrepreneurs due to early breakeven.
Good match between competency and business opportunity: The foundersof the company comprise of a variety of people who come from different regions
of India and hence have some knowledge about the food in their respective
region. We have a sufficient number of managers who have good knowledge
about organizational management along with the passion and drive to start-up
this dream restaurant. Our team also has two members who have the required
accounting skills.
Long lasting venture: Food and its consumption has always been a basic
requirement for mankind and people are always willing to experiment especially
if it benefits their health and body conditions in the long run. Hence, we can be
assured of a stable and consistent demand in the years to come. Our partnership
firm is a going concern since we have estimated breakeven achievement within
7.3 months which indicates very high profitability for the business in the long
term.
Opportunity for financing (Amenable to finance): We will put in 25% of our
capital and the remaining 75% will be obtained in the form of loans from banks
and other institutions like venture capitalists. The high profitability and growth
rate have resulted in ready provision for finance from various institutions due to
quick and high returns on their investment as a result of which the partners will
not be required to bear the entire risk. Even the early breakeven due to the
estimated high sales has acted as an added advantage for obtaining funds.
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3. Industry profileAlthough the restaurant industry is very competitive, the lifestyle changes created by
modern living continue to fuel its steady growth. People are getting busier day-by-day
hence small time to prepare food for themselves and their families.
The Restaurant Industry today:
The food service business is the third largest industry in the country. It accounts for
over Rs.12000 billion annually in sales. The independent restaurant accounts for 15% of
that total. The average Indian spends 15% 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 national GNP by 40%. Reasons responsible
for it are:
1) Lifestyle changes
2) Economic climate
3) Increase of product variety.
There are 600 new restaurants opening every month and over 200 more needed to
keep pace with increasing demand. Restaurant owners and operators are working to
understand and respond to the preferences and expectations of different customers.
Doing so requires that restaurateurs re-think their menu offerings, procurement
patterns, technology, training, service, and marketing. Clearly, when it comes to serving
its newest customers, the restaurant industry has a lot on its plate.
With vast population base, growing middle class population and strong macroeconomic
environment, the Indian restaurant market has emerged as the rapidly growing
segment in the Indian food industry. Rapid transformation in the lifestyle of Indians,
particularly those living in Urban India, has resulted in a dramatic increase in the
demand for processed or health food, packaged and ready-to-eat food products.
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4. Company profile
ZAYKA is a single-unit, good-sized restaurant basically focused on healthy and ethnic
food. The restaurant will be located in Bangalore. Most important to us is our financial
success, but we believe this will be achieved by offering high-quality service and
extremely clean, non-greasy food with interesting twists.
The restaurant features Full Service Dining. This concept offers customers variety,
offering multiple dining and entertainment options within a single establishment. The
menu divisions will broaden our appeal and provide our customers with a different
experience on each visit.
Keys to Success:
1.Unique, Innovative & Contemporary: The creation of a unique and innovative fine
dining atmosphere will differentiate us from the competition. The restaurant will stand
out from the other restaurants in the area because of the unique design and decor. We
will offer a fine dining experience in an electric atmosphere.
2.Product quality: Great food, Great service and atmosphere.
3. Spice for Life' Menu: The menu will appeal to a wide and varied clientele. Our
eclectic menu features regional specialties around the country.
4.Employee Retention Focus: Employee retention and development programs will be
a primary focus and success platform for this business. Through these programs, we will
be able to draw seasoned and elite professionals and build a committed work force. This
lowers our immediate overhead and attracts quality staff.
5. Cost Control Focus: We will control costs at all times, without exception. Cost
Control will be an integrated function of the restaurant from the onset. Cost control is
about managing the numbers - interpreting and comparing the numbers that impact the
bottom line. 80 percent of the success of a restaurant is determined before it opens. Our
focus is to control the cost of goods sold to meet our profit margin goals by managing
the following crucial elements of cost: Purchasing, Receiving, Storage, Issuing Inventory,
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Rough Preparation, Service Preparation, Portioning, Order Taking, Cash Receipts, Bank
Deposits and Accounts Payable.
Mission
To provide region specific finger licking Indian food specially prepared by chefsfrom their native region who will be handpicked.
To provide nutritious and tasty food that is customized based on the customerstastes, preferences and requirements.
Vision
To be recognized as a world class restaurant offering one of its own kind Indian cuisines
combining taste, health and ambience.
Management
ZAYKA will start out as a simple partnership firm, owned by its founders. Its founders
are Brinda Balachander, Debnarayan Banerjee, Gagan Singh, Ira Singla, Priyanshu
Mishra, Ranjini Ballal and Sulabh Sharma. Each of the promoters is contributing equal
amount; so each one has equal stake in profits as well. Our official contact email address
Start Up Summary
We have found the location in Koramangala, Bangalore and taken it on rent at the rate
of Rs.100000 per month. We will be able to set up our business in a short span of 1
month and start earning profit by the end of first year. We plan to come up with a total
cost of Rs.5616000 for start up of the company.
Our start-up costs are mostly equipment, furniture, painting, renovation, rent, start-up
labor, legal and permit costs associated with opening our restaurant. At the beginning,
Rs.152000 will be allocated for business operations reserve. This is a solid start-up
forecast based on our market analysis and our knowledge of the industry.
Expenses 2266200
Assets 3350000
Investments 1790700Loans 3825500
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Locations and Operations
Restaurant Location
Koramangala, Bangalore is the location selected for the ZAYKA. Koramangala is one of
the most developed area in the city.
Restaurant Design
The total space requirement is 3,000 square feet. The restaurant will feature a
comfortable and open concept double story design. The dining area will allocate 200
seats and the lounge 50 seats. In total, the restaurant will provide seating for 250
patrons.
Operating Criteria
The restaurant will be located in Koramangala. The restaurant will service lunch,
dinner, and after-hours dining during the week and weekends. The restaurant will
operate during peak service time to take advantage of street traffic, and after-hour
patronage from the entertainment facilities in the area. Service will be available during
the following hours:
Lunch: Monday to Sunday, 11 a.m. - 4:30 p.m.
Dinner: Monday to Sunday, 6:30 p.m. - 12 midnight.
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2000000
4000000
Expenses Assets Investments Loans
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Products and Services
ZAYKA will feature Ethnic dishes, an eclectic ambiance, and superior service. Our food
will be of the finest quality and prepared with exotic flare. Customer satisfaction is the
driving force behind our success. We will add new dishes to our menu every 4 months.
The kitchen staff will have the best in culinary education and work experience. Their
creative talents will complement one another. The restaurant staff will offer the finest
service in an electric atmosphere and offer customers an extraordinary dining
experience.
ZAYKAs Menu:
The menu is going to be extremely simple. We will keep a small group of constants on
the menu and then feature a chef's recommendation that we plan will account for 85%
of meals ordering. This will help us to reduce waste and plan ingredients and
purchasing. Our chef will have great latitude in designing and producing menu offerings
from many different Indian cultures. We will endeavor to procure all the traditional,
authentic ingredients necessary to hold true to these varied and interesting cultural
recipes. Our goal is to create the image of satisfying and nutritious food. As there has
been an increased awareness of nutritional and health concerns in recent years and a
growing 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 create most of the dishes from
scratch. The chef will exercise strict standards of sanitation, quality production, and
presentation or packaging over the kitchen and service staff.
Service:
A customer can have food either in the dining room and get full service from a waiter or
from the separate take-out counter which will service those who wish to pick up their
food. Also home delivery orders can be made via telephone or fax. Delivery will be
available at certain times and to a limited area.
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Future Opportunities:
The market segment that prefers to eat ethnic and healthy food is expanding at a very
high pace. Also the busy lifestyle is boosting restaurant business. When it comes to
restaurant customers, the two biggest, continuing trends are convenience and quality.
As ZAYKA will work on both of these factors, it can be estimated that it has a bright
future.
5. Marketing strategy
STP Analysis
Segmentation:
ZAYKA Restaurant intends to cater to a wide customer base. But our main customer
base will include people from middle class and upper middle class. As these are the
people who are both health and money conscious and who dont mind in spending a
little extra amount if they are served with quality and variety of food.
Targeting:
The market for ZAYKA covers a large area of diverse and densely populated groups,
although we have defined some groups as targeted segments that contribute to our
growth projections. ZAYKA will be located in an urban setting and in an area where
people travel to eat out and one that is also frequented by tourists.
Target groups are:
Ethnic food lovers:
As ZAYKAs specialty is in ethnic food so our main target group consist of people
who like to have good quality ethnic food. As we have dishes from all the regions
of India so the target market consists of people from all the areas.
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Nuclear families:
Working couples are usually more interested in trying out places which are
trendy and healthy at the same time. They have double income and it is
particularly easy to make them spend money again - they spend the most ondrinks, appetizers and tips.
Tourists:
Tourists both Indian and foreign origin will be another target segment because
they are the people who like to eat region specific food while travelling.
These particular market segments are 15-50 years old, have disposable income, and are
seeking upscale, trendy, and comfortable restaurant options.
Positioning
ZAYKA will be positioned as a restaurant for both middle and upper middle class people
serving good quality ethnic food.
Strategy and Implementation Summary
Our strategy is simple; we intend to succeed by giving people a combination of great,
healthy, ethnic food, and an environment that attracts people like a magnet.
Implementation isn't simple, but that's in the doing of it, not in the plan.
We will focus on establishing a strong identity in our community with a grand opening.
Our main focus in marketing thereafter will be to increase customer awareness in the
surrounding communities. We will direct all of our tactics and programs toward the
goal of explaining who we are and what we do. We will keep our standards high and
execute the concept flawlessly, so that word-of-mouth will be our main marketing force.
We will create an appealing and entertaining environment with unbeatable quality at an
exceptional price. As an exciting and eclectic restaurant, we will be the talk of the town.
Therefore, the execution of our concept is the most critical element of our plan.
All menu items are moderately priced for the area. While we are not striving to be the
lowest-priced restaurant, we are aiming to offer exceptional food at reasonable prices
for the average restaurant diner.
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Competition
Located in a happening place like Koramangala, ZAYKA faces major competition from a
few well-known restaurants in and around. The Gramin and Sahib Sindh Sultan top the
list. These places are known for their unique theme based ambience.
While Gramin has created a village theme which is different from other modern
restaurants, Sahib Sindh Sultan brings alive the journey by train that every Indian can
relate to. Another player which is a big competitor to our business is Transit situated in
Forum, one of the leading commercial malls in Bangalore.
Competitive Edge to ZAYKA
Our competitive edge is the menu, the chef, the environment, and the tie-in with what's
healthy and trendy. ZAYKAs competitive edges are:
1. The owners' thorough understandings of opening and running a restaurant
2. An extraordinary contemporary restaurant design
3. Ethnical and Cultural menu with featured menu changes every 4 months
4. Unique, two story spatial layout
Marketing Strategy
ZAYKA Restaurant's Marketing strategy will be to promote Ethnic food and superior
service. Marketing initiatives will concentrate on the following:
Building:
The most important Marketing tool that we have is the exterior and interior of our
building. The ambience of ZAYKA will help in attracting more and more customers.
Customer Service:
In a restaurant industry, customer service has always been the major draw for the
dining clientele. Food and atmosphere is far out-shadowed by superior customerservice that turns a new customer into a repeat customer.
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Management will demand the wait-staff provide the very best in quality services to the
customer, making certain that they are content and satisfied with their dining
experience. Wait-staff are thoroughly trained to make good relations with the
customers.
Advertising and Promotion:
Our Advertising Plan and media schedule call for targeting customers directly through
local publications.
Management recognizes the key to success at this time of initial opening is extensive
media promotion. This must be done aggressively in order to accomplish our service
goals. A healthy budget is allocated for the first year. A primary part of the budget is
allocated to create the media and customer buzz for the month prior to opening and the
next three months after the grand opening. The full Marketing program is as follows:
Media Objectives and Strategy:
Establish our image as a unique restaurant with great service, value, and great Ethnic
food served in an eclectic atmosphere. We will maximize efficiency in the selection and
scheduling of advertisements by:
Selecting primary local publications with high specific market penetration.
Scheduling adequate frequency of ads to impact market with menu items and
promotions.
Where possible, positioning advertisements in or near entertainment/food related
editorial.
Additionally, we will develop a consistent reach and frequency throughout the year,
targeting each specific customer.
Promotional Campaign:
The best way to reach our potential customers is to develop an intense advertising
campaign promoting ZAYKAs concept of "Spice of Life" In addition to standard
advertising practices, we will gain considerable recognition through newspapers,
newsletters, public announcements and from our dynamic menu.
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Our periodic customer surveys and weekly menu item sales evaluations will help us to
understand what advertising is working and what is not; basically, who we are reaching.
Our goal is to understand our customer, measure the success of our direct marketing
and media activities, and redirect advertising as effectively as possible.
Press Release/Grand Opening: ZAYKA will release a series of press releases on the
Grand opening.
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 ZAYKA Restaurant in order to evaluate our menu, service, and
atmosphere.
Sales Strategy
ZAYKA's sales strategy requires consistently high quality food, service, speed and
atmosphere. We can accomplish this by:
Hiring employees who genuinely enjoy their jobs.
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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6. Financial feasibilityProject Cost:
Land and Building
Security 1000000renovation cost 260000
license and permit 50000
Insurance 100000
Capital Budget
Furniture and equipments
kitchen equipment
chimneys (3 nos.) 50000
Burners 150000
kitchen utensils 150000
kitchen furniture(modular kitchen) 100000
microwave (5 nos.) 75000
juicers and grinders (3 nos.) 45000
freezers(1+2 nos.) 250000
dishwashers(2nos.) 160000
water purifiers (1 nos.) 30000
Barbaque 50000
Tandoor 30000
dining area
chairs and tables(110+25) 456000
dining utensils 250000
air conditioners(verti cool)4 nos 256000
interior decorations 500000
vacuum cleaners 30000
Utilities
Electricity 0gas 25000
Water 0
trash removal 0
Telephone 15000
music and entertainment
music and sound system (1 nos.) 100000
LCDs (4 nos.) 500000
marketing
advertising 100000
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Employee cost:
receptionist (1 nos.) 10000
head chef (2 nos.) 70000asst. chef (4 nos.) 80000
cook (2 nos.) 20000
manager (1 nos.) 20000
cashier (1 nos.) 15000
hostess (4 nos.) 32000
delivery boys(2 nos.) 10000
waiters (9 nos.) 45000
sweepers and cleaners (4 nos.) 8000
security gaurds ( 2 nos.) 7000
gate keeper (1 nos.) 3000
parking (1 nos.) 2500
TOTAL 322500
Financing:
Loan 3825500
Investment 1790700
Total project cost 5616200
printed materials 15000
Research 30000
other expenses
computer(2 nos) 70000
fax and printer machines 12500
fire extinguishers and alarm 50000
Uniforms 30000
paper utilities 5000
security system 60000
auto expenses(omni,honda activa) 350000
cell phones 2500
Invertors 108000
Total 5465000
Startup expenses for operations of 1st month 151200
Total Project Cost 5616200
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Monthly forecast:
Note: The data of monthly forecast is found in Appendix
The projections show that Sales of ZAYKA is increasing month over month; from the
range of 5-25%. This states that ZAYKA is moving towards vision and position itself as a
preferential brand of the customers. In initial months, ZAYKA is bearing some losses;
but right from 4th month ZAYKA is at its pace.
Break Even Analysis:
By analyzing the Profit and Loss Statement of 1styear, we come to know about the Total
Revenue of 1st year will be 2.18 Cr approximately. Annual Total Cost is around 1.32 Cr.
Therefore we are achieving our Breakeven Point at 7.3 months. After achieving
Breakeven Point, 25% of the profits earned are transferred to Reserves and the
remaining is added back to the Capital. As Profit is the main pillar for the expansion of
any business, this would be an achievement for ZAYKA.
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Note: The data of TR, FC and TC is found in Appendix
Yearly forecast:
To know the future prospect of ZAYKA we forecasted the Profits for 5 years. As we can
see Sales is increasing by 20% over the years; correspondingly Gross Profit and Net
Profit is also increasing.
Note: The data of yearly forecast is found in Appendix
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7. Conclusion
The above analysis of ZAYKA restaurant lead us to conclude that our business plan
holds a good potential to succeed as our financial forecast sounds to be promising.
Although our view towards the business plan sounds optimistic, if everything goes as
per the estimates, we would be able to recover our cost in not less than six to seven
months. However taking the uncertainties and external factors into consideration there
may be deviations between the estimates and the reality. As a result it may impact our
breakeven which may require us to revisit our business plan and make changes
accordingly. As ZAYKA stands for SPICE FOR LIFE, our unique blend of taste, health and
ambiance would help us to serve our customer better and would finally help us to stand
out as a world class Indian cuisine restaurant.
8.Appendix
1. Profit and Loss Statement of 1styear2. Profit and Loss Account forecast for 5 years3. Balance Sheet projected for 5 years