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Food and Beverage Enterprising Planning

Institute of Hotel Management,


Aurangabad, India

“Food and Beverage Enterprise Planning”

Sonia Wadhwa (H-15102)

Tracy Simon (H-15108)

“Submitted in fulfillment of the requirement for BA (Hons)

Hotel Management”

University of Huddersfield,
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United Kingdom.
2007-2011

DISCLAIMER

The information contained herein is no way to be constructed as a recommendation of The Institute of


Hotel Management‖, Aurangabad, India, of any industry standards, or as a recommendation of any kind
to be adopted by or binding upon any member of the hospitality industry.

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DECLARATION

We declare that this project is the result of our own collective efforts and that it conforms to the
university, departmental and course regulations regarding cheating and plagiarism. No material
contained within this project has been used in any other submission for an academic award.

SONIA WADHWA (H-15102)


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TRACY SIMON (H-15107)

ACKNOWLEDGEMENT

We would like to acknowledge the help and support of all the people without whose help BEER ME!
would not have been possible. We are grateful to the following people:
Mr. Vimal Shukla, [Module Leader – Food & Beverage] for his guidance and suggestions through the
project compilation phase.
Mr. Rushad Kavina, [Faculty-Food & Beverage] for his continued support, guidance and enthusiasm
throughout the project especially during the Operational Phase.
Mr. Rath [Faculty-Sales & Marketing] for guiding us through the Marketing Phase.
Chef Hemant Gokhale, [Faculty-Food Production] for enlightening us on innovative kitchen designing
techniques.
Mr. Anand Iyengar [Faculty-Business Finance] for helping us to formulate Financial Phase for our
restaurant and giving key guidelines throughout the project.
Ms. Abba Joshi, [Program Manager-Year 3] for her motivation throughout the project.
Mr. Frederick Roderick, Area manager for Mochas, Delhi for his guidance and provision of various
facts and figures.

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We are also thankful to Mr. Sanjeev Bhatnagar of Ambicons Pvt Ltd, for his knowledgeable inputs on
architecture and designing of the Brewery.

TABLE OF CONTENTS
DISCLAIMER............................................................................................................................02
DECLARATION………………………………………………………………………………03
ACKNOWLEDGEMENT……………………………………………………………………..04
CHAPTER 1: MARKETING PHASE………………………………………………………...08
1.1 Statement of Aims and Objectives…………………………………………………………...08
1.2 Introduction to Delhi………………………………………………………………………....09
1.3 Situational Analysis………………………………………………………………………….11
1.3.1Political Factors………………………………………………………………………...12
1.3.2Economic Factors………………………………………………………………………12
1.3.3Social Factors…………………………………………………………………………..12
1.3.4Geography and Climate. ………………………………………………………………13
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1.3.5Feeder Factor…………………………………………………………………………...14
1.4 Competition Analysis………………………………………………………………………...16
1.4.1Factsheet of Mocha Bar………………………………………………………………...17
1.4.2Factsheet of Café Morrisson…………………………………………………………...19
1.4.3Factsheet of Rockman’s Beer Island…………………………………………………...21
1.4.4Factsheet of Howzzatt…………………………………………………………………..23
1.5 Questionnaire Analysis……………………………………………………………………….25
1.6 Market Analysis………………………………………………………………………………37
CHAPTER 1: OPERATIONAL PHASE………………………………………………………44
2.1 Introduction……………………………………………………………………………………44
2.1.1 Aims…………………………………………………………………………………….45
2.1.2 Objectives……………………………………………………………………………….45
2.2 The Concept- Beer Me! ……………………………………………………………………….45
2.3 Space Requirement…………………………………………………………………………….48
2.3.1 Space Allocation………………………………………………………………………...48
2.3.2 Estimated Restaurant and Production space for Functional Areas. …………………….49
2.4 Facilities Planning……………………………………………………………………………..50
2.4.1 External Façade………………………………………………………………………….50
2.4.2 Furniture and Fixtures…………………………………………………………………..52
2.4.3 Wall Covering………………………………………………………………………….56
2.4.4 Flooring………………………………………………………………………………...59
2.4.5 Lighting…………………………………………………………………………………62
2.4.6 Entertainment and Acoustics…………………………………………………………...64
2.4.7 Restroom Facilities……………………………………………………………………...65
2.4.8 Engineering and Heating Consideration………………………………………………...67
2.4.9 Fire Protection…………………………………………………………………………...68
2.5 Legal Formalities………………………………………………………………………………70
2.6 Staffing and Scheduling……………………………………………………………………….78
2.6.1 Hierarchy of Staff……………………………………………………………………….79
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2.6.2 Staffing requirement and Salary………………………………………………………...80


2.6.3 Shift Timings……………………………………………………………………………81
2.6.4 Duty Roster……………………………………………………………………………..81
2.6.5 Job Specifications……………………………………………………………………….83
2.7 Menu…………………………………………………………………………………………..99
2.7.1 Menu Planning………………………………………………………………………….99
2.7.2 Menu Engineering………………………………………………………………………100
2.7.3 Menu Pricing…………………………………………………………………………....100
2.7.4 Standard Purchase Specification………………………………………………………...102
2.8 Standard Recipe Cards………………………………………………………………………...104
2.9 Inventory Calculation………………………………………………………………………….117
2.10 The Brewpub…………………………………………………………………………………136
CHAPTER 3: PRE-OPENING PHASE………………………………………………………...140
3.1 Activities to be performed before opening of Beer Me! ………………………………………140
3.2 Marketing Strategies and Launch Activities…………………………………………………...144
3.3 Cost of Marketing Strategy…………………………………………………………………….149
CHAPTER 3: FINANCIAL PHASE……………………………………………………………151
4.1 Statement of Aims and objectives……………………………………………………………...151
4.1.1 Total Initial Expenses……………………………………………………………………152
4.2 Sales Forecast…………………………………………………………………………………..153
4.3 Five year Sales Forecast………………………………………………………………………..156
4.3.1 Sourcing of Funds………………………………………………………………………..158
4.4 Income Statement………………………………………………………………………………159
4.4.1 Balance Sheet for the Year 2011-2012…………………………………………………..161
4.4.2 Balance Sheet for the Year 2012-2013…………………………………………………..162
4.4.3 Balance Sheet for the Year 2013-2014…………………………………………………..163
4.4.4 Balance Sheet for the Year 2014-2015…………………………………………………..164
4.5 Payback Period…………………………………………………………………………………165
4.6 Conclusion. ……………………………………………………………………………………166
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BIBLIOGRAPHY…………………………………………………………………………………167

CHAPTER-1 MARKETING PHASE

1.1 STATEMENT OF AIMS AND OBJECTIVES

AIM
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The aim is to conduct a market research and to determine the feasibility of setting up a restaurant
concept such as ―BeerMe ! ‖ in South Delhi.

OBJECTIVES
• To gather information on Delhi‘s demographics and its restaurant scenario.

• To identify and evaluate the competition through SWOT analysis of various food and beverage
outlets in the competitive set.

• To conduct a market survey through questionnaires, observation and interviews.

• To analyze the responses collected through the survey.

• To carry out a SWOT analysis of the restaurant to comprehend its position in the marketplace.

• To determine the fair share and market share to ascertain the feasibility of the proposed
restaurant.

• To prepare a revenue grid analysis and identifying the appropriate target market.

• To plan the operations and financial phase for the restaurant based on the study of the market.

1.2 INTRODUCTION TO DELHI


Delhi The capital of the world's largest democracy has a fascinating and a glorious tumultuous 5,000
year old history, but with a population of 14 million sprawling over some 1,500 sq. km (585 sq. miles),
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a true cosmopolitan city with diversified culture is the capital of the world’s largest democracy, India.
Known as Indraprastha in ancient times, Delhi has been wooed by rulers, attracted invaders and has
been build and destroyed several times. Historians say that is has been rebuilt seven times during
different ages. Delhi or National Capital Territory of Delhi is India's capital and includes New Delhi,
Old Delhi, and Delhi Cantt. Also referred to as NCR, it incorporates satellite cities of Faridabad,
Gurgaon, Ghaziabad and Noida. Delhi has always been an attraction for travelers and tourists. It caters
to various needs of tourists. From shopping to sightseeing, forts and monuments to beautiful gardens,
Delhi has it all. It also has many state of the art hotels to offer to its tourists. The economy of the state
benefits from its service sector, which comprises of insurance, travel and tourism, mortgage, real estate,
consultancy and educational institutes. Delhi is popularly known as 'Heart of India.' A direct
consequence of Delhi's rich history is its magnificent monuments. Delhi also offers a glimpse of India's
religious diversity. It has many temples, mosques, gurudawaras and churches. . The two worlds of the
city, the Old and the New form a great synthesis and co-exist of modernity and traditions in a
remarkable manner. The line of distinction between Old and New Delhi has begun to blur north, south,
east and west Delhi are more prevalent terms of demarcation. The facilities and opportunities available
in Delhi have attracted Indians from far-flung corners of the country, making it a melting pot of sorts.
On the other hand, the presence of diplomatic and trade missions, the growing number of multi-national
companies and foreign investors, and the influx of tourists and visiting professionals have given the city,
especially its southern and central parts, a cosmopolitan air.

Delhi is one of the most historic capitals in the world and two of its monuments-the Qutb Minar and
Humayun's Tomb-have been declared World Heritage Sites. It is also one of the greenest capitals. For
the visitor, it serves as a perfect introduction to the cultural wealth, the complexities and the dynamism
of India which Jawaharlal Nehru likened to "an ancient palimpsest' on which layer upon layer of thought
and reverie has been inscribed". Delhi has some of the finest museums in the country. Its boutiques and
shopping arcades offer access to a wealth of traditional and contemporary crafts from all over the
country. It has specialty restaurants to please the gourmet, the open parks and gardens ablaze with

flowers and in the winter months particularly, a variety of cultural events. Its many-layered existence is
tantalizing and can entice the curious traveler into a fascinating journey of discovery.

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Delhi is on the move, and some believe the mobilization of capital and resources is responsible for quite
positive transformation. Pollution levels are supposedly dropping, and government officials seem to
introduce new modernization schemes every week. You're unlikely to see cows roaming the streets of
the capital anymore; those that dare are rounded up and taken to stray cow facilities, and in May 2007,
the traffic department vowed to crack down on all forms of dangerous driving. But there are ill-
considered political choices, too. In 2007, street food was officially banned in the capital, and there was
fervent talk of outlawing cycle-rickshaws in Old Delhi. Sadly, such decisions often come from wealthy
politicos who have never even been into the heart of the old city and have little idea how much a part of
daily Delhi life the roadside food stalls really are. So, not only is Delhi hurtling into the future, but it
remains a symbol of many of the challenges faced by India in its bid to catch up with the West. Delhi is
in many ways the essence of modern India, with its vivid paradox of old and new, rich and poor, foreign
and familiar. Delhi is India‘s Maximum City‘, bold, brash, fast and frenetic, always faddish, fashion-
obsessed and undeniably animated in all aspects of its life.

Transportation: Public transport in the metropolis includes the Delhi Metro, the Delhi Transport
Corporation bus system, auto-rickshaws, cycle-rickshaws and taxis. With the introduction of Delhi
Metro, a rail-based mass rapid transit system, rail-based transit systems have gained ground. Other
means of transit include suburban railways, inter-state bus services and private taxis which can be rented
for various purposes. However, buses continue to be the most popular means of transportation for intra-
city travel, they cater to about 60% of the total commuting requirements.

Private vehicles account for 30 percent of the total demand for transportation, while the rest of the
demand is met largely by auto-rickshaws, taxis, rapid transit system and railways. Rapid increase of
population coupled with large-scale immigration due to high economic growth has resulted in ever
increasing demand for better transport, putting excessive pressure on the city's existent transport
infrastructure. Like many other cities in the developing world, the city faces acute transport management
problems leading to air pollution, congestion and resultant loss of productivity. In order to meet the
transportation demand in Delhi, the State and Union government started the construction of an
ambitious Mass Rapid Transit system, known as Delhi Metro in 1998. The project started commercial
operations

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on December 24, 2002. It has set many performance and efficiency standards ever since and is
continuously expanding at a very rapid pace. As of 2010, the metro operates 5 lines with a total length
of 111 km and 98 stations while several other lines are under construction, though half of it is still under
construction. Delhi City, being one of the most populous cities in India demands a transportation system
that is effective, fast and reliable. With the advent of Delhi Metro Rail Service, the transport system
has become very smooth and efficient.

BUSES: Delhi Transport Corporation or the DTC is the main transportation medium in Delhi. DTC
buses run all through the city including the national Capital Region (NCR). DTC is the world's largest
compressed natural gas bus service. The service has come a long way since its inception in the year
1984. Now all buses have been converted into CNG in order to control the pollution level of the city.
Apart from the bus service of the DTC, there are private Blue Line services controlled by private
operators.

Delhi Airports: Indira Gandhi International Airport is the only and most important international airport
in Delhi. It is divided into two wings, International Terminal (20 km from downtown Cannaught Place)
and Domestic Terminal (Known as Palam Airport, which is at a distance of 15 km from City Center).
Private and Public taxis are easily available outside the airport to facilitate quick and easy journey to the
city area. Many international carriers fly from Delhi to other cities in the world. This makes the city a
vital link between India and rest of the globe.

1.3 SITUATIONAL ANALYSIS


Delhi enjoys the status of the major metropolitan city of India. The city is considered to be the center for
various economic, social and political activities that take place in the entire country. Various political
decisions that shape numerous business activities are formulated in New Delhi – the capital of India.
New Delhi is not only the heart of the politics but also a major tourist destination. Tourists traveling to
Jaipur and Agra consider New Delhi as a base, which adds to the tourist inflow of the city. Due to major
influx of international travelers, night life in New Delhi is the best as compared to other metropolitan
cities. Numbers of multi national companies and organizations have their offices in New Delhi, which

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provides an opportunity to the city to develop its infrastructure. It’s the largest metropolitan city of
North India.

1.3.1 Political Factors

It is the city where all major political decisions are formulated and implemented, as the city happens to
be the capital of India and home to the Prime Minister and President of India. All laws and regulations
for the country are prepared in the city. Any ups and downs in any political party in India are felt here,
in the nerve centre of India.

1.3.2 Economic Factors

India has the second largest GDP amongst the developing countries, in purchasing power parity terms.
Far reaching economic reforms initiated in July, 1991 generated numerous business opportunities during
the period of 1981 – 82 to 1989 – 90.Delhi is the central hub for all travelers traveling all over the
country and has a well structured air transport system. Most important goods manufactured in New
Delhi are readymade garments and imported things are electronic components. Foreign direct
investment (FDI) in the city has increased considerably in the last few years with investments in major
sectors such as real estate India, Business Process Outsourcing, Information Technology, IT enabled
services, Telecom, etc. This is not the end of the road; government is luring foreign investors to invest in
other sectors as well. The governments of India and Delhi have made flexible policies to ensure
optimum FDI in Indian industries. The effect of such policies can be seen in the investment graphs.
With the increase in industrial development over the last five years, Delhi has indeed become a major
economical force of India along with the designation of being called the metropolitan city of India.

The important training centers are fruit and vegetable markets, food grain markets, plot markets, hosiery
and general markets. However, stand alone restaurants are the recent trend that is developing in New
Delhi. The researchers chose New Delhi as our city of establishment because of the growth factor and
the large population and their spending power which makes the city viable for our product.

1.3.3 Social Factors

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New Delhi has always occupied a strategic position in the country’s history, as various religious
dynasties have ruled from here. This has left an impact on various structures and culture that is prevalent
today in the city. Various residential colonies, commercial complexes today are emerging which
provides an opportunity for our product to survive and develop. New Delhi also has boutiques, shopping
arcades and malls that are emerging at a rapid pace. The existence of various segments in regards to

income makes this city a profitable aspect. It has specialty restaurants to please the population. As being
an urban city, young generation and top management executives are actively involved in providing the
city with an excellent nightlife. Delhi is multi-cultured and multi-linguistic city with people from almost
every parts of India. Delhi shares its borders with Haryana and Uttar Pradesh. The influence of these
states can be found in the language and lifestyle of Delhi. People of Delhi are called "Delhi-ites". Delhi-
ites are very advanced and open to embracing new customs and changes but at the same time they are
very conscious of their culture. People of various caste, creed and culture live here with peace and
harmony. This shows the "Unity in Diversity" among the people of Delhi

1.3.4 Geography and Climate

The national capital territory of Delhi with an area of 1483sq.km is situated between the Himalayas and
Aravalis range in the heart of the Indian sub-continent. It is surrounded on 3 sides by Haryana and to the
east, across the river Yamuna by Uttar Pradesh. The major part of the territory lies on the western side
of the river Yamuna, only some villages and the urban area of Shahdara lie on the eastern side of the
river. Its greatest length is around 33 miles and the greatest breadth is 30 miles. Delhi's altitude ranges
between 213 to 305 meters above the sea level.

Delhi, has a hot and humid climate for most of the season. The city climate becomes very hot during the
month of June which is followed by monsoon happening somewhere after September. Monsoon in Delhi
is quite unpredictable where you can't predict which way they will turn. Delhi monsoon has never been
like the one we witness in other parts of India, say for example Mumbai. Winter in Delhi is very chilly
which peaks in at the start of November and continues till the month of February. The foggy and chilly
weather during winters makes Delhi's climate a tough one to confront with. Delhi is situated on the

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banks of river Yamuna with Himalayas being in the north of Delhi. This is the main reason behind
Delhi's climate being called as the "Continental Climate".

1.3.5 Feeder Factor

SAKET is one of the many middle-class-dominated areas located in the south of Delhi, the capital of
India. The neighborhood is named after the city of Ayodhya, an ancient, religiously significant city in
Uttar Pradesh. The Great Kabab Factory is premium dinning place in DLF Place mall in Saket The PVR
Complex has a variety of coffee shops, restaurants and fast-food joints. These include McDonalds, Ruby
Tuesday, Barista Coffee, Subway (restaurant), Pizza Hut, Sbarro, Azzuro and many others. The complex
also has several trendy pubs/bars, like T'zers, Voda, Bennigan's and Buzz. The addition of some more
upscale eateries has led it to become more of a hotspot for citizens of Delhi seeking finer fare. Saket is
home to the PVR Cinemas Anupam-4 Multiplex Theatre, which was the first multiplex in India. The
place was originally called Anupam and was owned by the Ansals Group, a group that also ran the Gyan
Bharti School and shared a common boundary with the Anupam complex. The Ansals Group eventually
leased the cinema hall to the PVR Venture Group (Joint venture between Mr. Ajay Bijli and PVR of
Australia). The nearby Select Citywalk mall also houses the PVR Premier, a newer 6-screen multiplex.
Around the area is also a video game parlor, an Archies gallery, and several other novelty shops. The
ITC Welcome Group owns a 5-Star Deluxe Hotel in this part of Delhi. As India's economy continues to
grow and major Indian cities continue to expand, neighborhoods are quickly changing and upgrading
throughout the country and Saket is no exception. It is on the verge of becoming the "Mall Hub" of
South Delhi since four major malls have opened on the Press Enclave Marg at the Saket District Centre.
The road is named after the most recognizable enclave in Saket, "Press Enclave" where many journalists
from media organizations around the country and the world live. The presence of many good schools in

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the area also makes it an education hub of south Delhi. Another route to reach Saket will also open up
by 2010 when the Metro will pass through on its way from Central Delhi towards Gurgaon.

Electricity: After the Delhi Vidyut Board ceased to exist on July 1, people hoped for a better power
supply. Privatized distribution network then came into existence, the link which carries power to our
homes and is now handled by Reliance-backed BSES and the Tatas

Portable water: Delhi Jal Board (DJB) is the sole government agency responsible for meeting water
demands of the city. It has the capacity of supplying 650 million gallons water per day (MGD). Delhi
receives raw water from the following main sources: River Yamuna, groundwater and rainwater which

is later processed and supplied as drinking water. Municipal Corporation (NDMC) and Delhi
Cantonment Board (DCB) for further distribution in their respective areas.

The largest Telephone Service provider is the state-owned MTNL, which held a monopoly over fixed
line and cellular services up until 2000, and provides fixed line as well as mobile WLL services. Cell
phone coverage is extensive, and the main service providers are Vodafone Essar, Airtel, MTNL, and
BPL group, Reliance Communications, Idea Cellular and Tata Indicom. Both GSM and CDMA services
are available in the city. Broadband internet penetration is increasing in the city, with MTNL and Tata
being the leading service providers.

Media: The media of Delhi offers a galore of exciting choices to its consumers. Delhi has presence of
several newspaper conglomerates, and nearly all important magazine groups in Hindi and English
languages have their distribution networks in Delhi. Hindustan Times, The Times of India, Indian
Express, The Hindu, The Statesman, India Outlook, Dainik Jagran, Navbharat Times and Anandbazar
Patrika are some of the important newspapers and magazines of India, whicj have their presence in
Delhi. The print media of Delhi is thriving. In the year 2004-2005, around 1029 newspapers were
published in about 13 languages from Delhi. Out of these, 492 were the newspapers that were published
in the Hindi language. Among the newspapers, Hindustan Times and The Times of India are the leaders
in terms of circulation and readership. They virtually rule the print media of Delhi.
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1.4 COMPETITIVE ANALYSIS


The main purpose of the competition analysis is an assessment of the strengths and weaknesses of
current and potential competitors. This will assess the threat levels presented by the competitors in the
market. This will also help in determining what factors drive success in the market space. Moreover, this
will identify what specific actions need to be taken in order to improve the restaurant‘s competitive
position.

Studying the competitors will also offer a perfect opportunity to find out how we can better serve our
customers, will help to know the prevailing liking and disliking of future customers, it will also give
information about what more or new is the market of customers looking for. This will help in deciding
where will the entrepreneurs place their concept and what will be the market available for their product.
Based on the information gathered through questionnaires filled, the researchers have listed the four
most preferred restaurants of the respondents. The analysis is an in-depth exploration of the top four
competitors, their qualities, where they lack and what can be their future opportunities or available
threats. This is done with the help of SWOT analysis further in the research work, the competitors are as
follows:

• Rockman’s Beer Island

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• Café Morrisson

• Mocha Bar

• Howzzatt

1.4.1 FACTSHEET FOR MOCHA BAR

Location / Address: 8/9 Ground Floor, Satyam Complex, Nehru Place


New Delhi

Contact: 011 26466733, 9818767043/9873001136

Property Status: Leased

Time of Operations: 11:00 am- 01:00 am

Cuisine: Multi cuisine

Service: Casual, table service

Theme: Rock

Target Market: Mostly youngsters [school and college going] and working class

Staffing: 18 F & B Service: 10


F & B Production: 08

Total No. Of Covers: 90

Daily Revenue: Rs.72500

APC: Rs.500+ taxes


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Average Covers
Done Per Day: 145

USP: Micro brewery, ambience.

Fastest Selling Dish: Steaks, Liverpate

Fastest Selling Beverage: Beer, Smoked Melon Mojito

Catchment Area: South Delhi

Additional Facilities: The 1500 sq feet space also has giant screens and projectors which screens
sporting action from across the world be it football, cricket, tennis or Formula One.

SWOT ANALYSIS

STRENGTHS

• The place is a ‘friendly’ hotspot as being nestled close to the commercial district of Nehru Place
is within walking distance of residential areas like Greater Kailash and CR Park in South Delhi
• Not only serves fresh beer from the tap but also introduces a range of signature cocktails served
over fruit and ice
• The place is also famous for its coffee and shakes, that makes it a hangout even for the
teetotalers.
• The place has a fairly priced menu with a lot of options.
• Mocha blends beer, sports and rock into one seamless entity.
WEAKNESS

• The seating arrangement makes the place very cramped and stuffy for the guests.
• Maintenance of the décor involves high costs.
• Delayed service during peak hours.
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OPPORTUNITIES

• The number of staff should be increased.


• The fancy furniture and the seating can be improvised on to make the place look more spacious.
THREATS

• CDB CAFÉ, Nehru Place - European Beer cafe

1.4.2 FACTSHEET OF CAFÉ MORRISSON

Location / Address: E-12, 1st Floor, Main Market, South Extension Part-2, Delhi-110049

Contact: 011 26255652, 9810262468, 9810261442

Property Status: Leased

Time of Operations: 12:00 PM- 01:00 AM

Cuisine: Multi cuisine

Service: Casual

Theme: Rock inspired by the great Rock Icon Jim Morrison

Target Market: Mostly youngsters [school and college going] and working class

Staffing: 22 F & B Service: 12


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F & B Production: 10

Total No. Of Covers: 50

Daily Revenue: Rs.68000

APC: Rs. 800+ taxes

Average Covers
Done Per Day: 85

USP: The Music.

Fastest Selling Dish: Sizzlers, Nachos

Fastest Selling Beverage: Beer

Catchment Area: South Delhi

SWOT ANALYSIS

STRENGTHS

• The place is known for its rock music collection.


• The place is located in one of the main commercial markets of south Delhi which attracts a lot
of young clientele.
• As the name signifies the place acknowledges the great singer Jim Morrison as a symbol which
attracts a lot of young clientele.
• The place features live entertainment like gigs.
WEAKNESS
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• The seating arrangement appears ordinary.


• The décor and ambience do not compliment the rock theme.
• The food items listed on the menu are expensive
• Lack of parking space.
OPPORTUNITIES

• The seating could be more loungish with more couches and lower tables
• The décor can be improvised on for a better depiction of the rock culture
• As the place attracts a lot of young clientele the menu price should be revised and made a little
more affordable.
THREATS

• Shooters Bar and Grill, South Extension Part-2, Delhi

1.4.3 FACTSHEET FOR ROCKMAN BEER ISLAND

Location / Address: 4th Floor Ambience Mall, Nathupura Village


National Highway 8, Gurgaon

Contact: 01242700000
Property Status: Leased

Time of Operations: 12:00 PM-2:00 AM

Cuisine Bavarian: Authentic German cuisine


Keg and Barrels: World cuisine

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Service: Casual, Table service

Theme: German Pub Brewery

Target Market: Youngsters, Corporate

Staffing: 44 F & B Service: 24


F & B Production: 20

Total No. Of Covers: 140

Daily Revenue: Rs. 200000

APC: RS. 1000+ taxes

Average Covers
Done Per Day: 200

USP: Pub Brewery

Fastest Selling Dish: Nürnberger sausages served with sauerkraut, Munchnerteller (cold cuts served
with sausages, cheese and pretzels).

Fastest Selling Beverage: Beer


Catchment Area: South Delhi, Gurgaon

Additional Facilities: Rockdome, India’s first drink and dine theater

SWOT ANALYSIS

STRENGTHS

• The only microbrewery located in its area which gives it an edge over the others.

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• It is located in one of the most upcoming and established mall which is also a shopping
destination for many.
• Serves great authentic German cuisine
• Serves natural and fresh beer without any chemicals, preservatives and pasteurization
• Rockmans Beer Island includes the Rockdome which is India’s first drink and dine theater.
WEAKNESS

• The dark beer listed on the menu is hardly available that’s unacceptable when you only have four
options to pick from because the place only serves house brews.
• Lacks sources of entertainment and the music is not that impressive considering the lively and
fresh concept of a pub brewery.
• The cocktails are small portioned and over charged
• At Bavarian, the German restaurant within the beer island there are no munchies such as chips or
peanuts to go with the beer.
• Very expensive.
OPPORTUNITIES

• Entertainment needs more options to be lively.


• The quantity of food and cocktails served should be revised in order to make up for the high
prices.
• A snack menu should be introduced to compliment the beers as an alternative to the overpriced
one.
THREATS

• BLU-O, Ambience Mall and Finrangi Paani , Ambience Mall

1.4.4 FACTSHEET FOR HOWZZAT

Location / Address: Galaxy Hotel, NH-8, Sector 15, Part II, Gurgaon 122001
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Contact: 0124 4565000, 9811574548

Property Status:
Time of Operations: 12:00 PM to Midnight
Cuisine: Multi-cuisine
Service: Casual.
Theme: Serves fresh gourmet beer & piping hot cricket.

Target Market: Youngsters, The in house guests

Staffing: 35 F & B Service: 10


F & B Production: 15

Total No. Of Covers: 110

Daily Revenue: Rs. 68000

APC: Rs. 400

Average Covers
Done Per Day: 170

USP: Microbrewery and Cricket Theme.

Fastest Selling Dish: Pot rice and Crispy chicken.

Fastest Selling Beverage: Beer

Catchment Area: Gurgaon, South Delhi

SWOT ANALYSIS

STRENGTH

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India’s first microbrewery pub which gives it the first mover advantage, the first product or service in a
new area has a unique window of opportunity to capitalize upon its uniqueness.

• The ambience and décor perfectly match up to the cricket theme


• The place is fairly priced which gives it an edge over the competitors
• A large screen in front of the bar and lots of LCD screens all around, to ensure you're never far
away from sporting live sports
• Since it’s located within The Galaxy Hotel which comprises of shopping arcades, restaurants and
spa so it attracts a variety of clientele and is not restricted to a specific target group.
WEAKNESS

• The place only talks about sports which makes it not so exciting for people looking for
something beyond that.
• The beer pub Lacks good music.
• The beer is quite flat and lacks the rich flavor.
OPPORTUNITIES

• The place should include other sources of entertainment besides the live sports like good music
• Howzzat should start experimenting with brews and offering up at least one unique style each
time and getting consumers hooked on experimenting with beer.
• The quality of beer needs to checked and improvised to match up to the competitors.
THREATS

• Rockman Beer Island, Ambience Mall, Gurgaon

1.5 Questionnaire Analysis


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AGE

Objective: The researchers have asked this question to segregate their sample in terms of age which
will help them in finding their target market as age.

Inference:

The analysis shows that there are very few respondents for the age group 60 and above, 12 respondents
for age group 40-50, 27 from 30-40 age group and highest being 58 from 20-30 age groups. Most of
these respondents in the age group 20-30 are students or self employed people and since Saket being an
area attracting a lot of college crowd, they will be a major target market along with industrialists and
businessmen falling in the next highest group as they prefer dining out for dinner with family or for
business meets and have good money to spend for snob value.

PROFESSION

Objective: The researchers have asked this question in order to identify the market and the type of
clientele. This will help in deciding which clientele is to be targeted more.

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Inference:

The analysis shows that a major chunk of the respondents are students [46] and they are followed by
service people [24] and businessmen [18] respectively. It can be inferred from this information that
students and people in service are the target market here as they need a nice hang-out place in this area,
they don‘t have a typical or standard spending power, so nothing much can be said about that.
Businessmen on the other hand following next have a great spending capacity and form a more
profitable target market.

1. Disposable Income

2000-5000 5000-10000 10000-15000 15000-20000

Objective: This is just to have an idea with regards to what is the level of expenditure per cover of
expected customers. This can help the researcher in deciding the level of service and food menu and
value for money from an entrepreneur’s point of view and also a clear indication at what customers are
ready to pay for the service or food they get.

Inference:

It was inferred with the collected data that 35 of the respondents generally have Rs.2000-5000 as
disposable income followed by 27 having Rs.5000-10000 and 21 people having Rs. 10000-15000 and a
close 17 people have almost 15000-20000 or more as their disposable income. So this is very clear that

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people are ready to spend money if they get a good deal out of the place (read restaurant) and the food
offered.

2. Preferred type of dining:

Fast food Semi-formal Formal Casual


Objective: The researchers have asked this question to gather information regarding preference of the
respondents in terms of type of dining which will assist in determining if the thought concept will be
welcomed and liked by the prospective customers.

Inference:

From the above pie chart, it can be clearly seen that 18 people that is being the lowest of the population
prefer a formal dining experience. A fast food and a Semi formal restaurant are close in competition
with the figures being 25 and 20 respectively in terms of preference of dining. However, a casual dining
experience has been given the highest ratings, which evidently shows that today people choose a more
laid-out, casual experience.

3. Preferred Day of Dining

Monday Tuesday Wednesday Thursday

Friday Saturday Sunday

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Objective: The Researchers have asked this question in order to find out the demanding and slack
days of the week for business.

Inference:

The purpose of the following question was to know the good business days of the week, nevertheless it
also gives a picture of the days when outlet promotions would be most appropriate. This chart shows
that people generally prefer going out on weekends with 30 people choosing Saturday as the ideal day of
dining out. It also shows that as Mondays and Thursdays are more of the relaxed days with 6 and 8 votes
respectively, it would be most fitting to introduce an outlet promotion on this day to increase revenue.

4. Time spent in a Pub

Less than 1 hr 1hr-2hrs 3hrs-4hrs 4hrs-5hrs

Objective: This will help in knowing the turnover of covers that can happen in the restaurant and the
researchers will get an idea of how many covers should be set up in the restaurant and on an average
how many covers can be rotated.

Inference:

Maximum respondents (37) believed that they spend 3hrs-4hrs in a pub over drinks, a close (29) spend
1-2 hrs, and very few (15) spend less than 1hr and remaining (19) spend 5-6hrs and above. So maximum
being from 3hrs-4hrs time customers spend in a pub. Since the average time spent in the restaurant over
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drinks as per the results is approximately 3-4hrs, we can say that the outlet should operate only in the
evenings from 3-12 and Happy Hours from 3- 9.

5. Time of the day of Dining

Breakfast time Lunch Evening Dinner

Objective: The purpose of this question is to help the researchers decide their busy meal period so
that they could focus on service during that meal period.

Inference:

As it was mentioned earlier the purpose of this question was to help the researcher find the busy meal
periods of the day, it also helps to determine the suitable meal period for promotion. The above graph
depicts that people normally prefer dining out for dinner (40) with evening being the second highest
option (29), therefore happy hours from 3 to 9 is most appropriate time. Lunch would be average with
just 29 people choosing Lunch and Breakfast was the least with just 6 votes.

6. Purpose of visiting a Pub


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Celebrations Friends get together Business Entertainment

Objective: In order to be able to operate a restaurant efficiently, it is imperative for the researchers
to know what kind of market they are targeting. The purpose of going to a pub decides a person’s
company; hence this question has been designed to find out the same.

Inference:

43 people, according to the survey chose Friends get together as the reason for going to a pub and 23
people chose entertainment. This shows that a major share of the target market would be the young
population who just come for a couple of drinks. 18 people said they would go to a pub for business
which is the second lowest after Celebrations being the main purpose.

7. Choice of Flavored Beer

Chocolate Fruity Flavors Herbs/spices Other

Objective: As it is proposed to be a Beer Brewery Restaurant, it becomes vital for the researchers
to know, if their customers would welcome the idea of flavored beers, and if so, then what kind of
flavors would they by and large expect.

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Inference:

The above graph shows that 59 people would want a herb/spice infused Beer, like ginger, and 21
people said they would prefer a fruity Beer like raspberry. Few people chose Chocolate (17) as their
choice of flavored beer and only 3 people said they were ready to try something new.

8. Form of Advertising
Word of mouth Television/Media Newsprint
Hoardings Radio Other
Objective: The objective behind this question is to know how people get to know about a new
restaurant opening and what factors influence them in deciding to visit the new restaurants. This will
help to decide on the market strategy to be used while marketing the enterprise.

Inference:

The analysis proves that Internet and Newsprint reaches to the customer the fastest, also showing that
word of mouth is second highest with 19 people sticking to it. Basically, the researchers would have to
focus on advertising through the internet and the newsprint; on the other hand it also shows that when
the restaurant is operational, they would have to focus on their service to get good feedback. Not many
people chose television, hoardings or radio as their selected form of advertising.

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9. Type of Entertainment

Live Bands Pre recorded tape Karaoke

LCD Screen Other

Objective:

The Beer brewery also proposes to have live bands playing three times in a week, nevertheless the
researchers wanted to find out if their customers would like some other form of entertainment for
their satisfaction.

Inference:

According to the survey, Live bands (25) and Karaoke (28) have the highest votes. Therefore, Live
bands, for dinner would be apt for the restaurant. 22 people said they would like to listen to pre
recorded tapes but good music. This shows that Live bands can be chosen for thrice a week for
dinner and during lunch, the outlet can play pre recorded tape of retro rock music.

10. The Concept- Beer Brewery

1 2 3 4 5

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Objective: The main objective of this survey was to help the researchers find the feasibility of
opening a Beer Brewery restaurant in Delhi. Delhi being the hub for two newly opened Micro brewery
restaurants, the researchers thought it pertinent to ask the market, how much does the concept of a Beer
brewery appeal to them.1 being the lowest rate and 5 the highest.

Inference:

This graph clearly explains that more than half of the sample size (51) agrees that they are ready for
innovation and that the new concept of a Beer Brewery restaurant appeals to them with a rating of 4. 17
people gave it a rating of 5, which in turn means that 69 people have supported the idea of a new
Brewery pub in that area, thus it proves that the researchers should go ahead with their project.

1.6 MARKET ANALYSIS


1.6.1 Fair Share:
The amount of Covers an outlet would sell if demand were distributed based on the number of covers in
each outlet.
Fair Share%
Fair share of an outlet is defined as the number of covers outlets has divided by the total number of
covers in the market.

Fair share = Number of Covers in the Outlet x 100


Total number of covers in the market

Outlet name No. of Covers Fairshare %


Rockman's 140 35.89

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Café Morrisson 50 12.82


Mocha 90 23.07
Howzzatt 110 28.2
Total 390 99.98

Graph 1.1 (No. of cover in the restaurant and fairshare of the restaurant.)
1.6.2 Market Share:
The amount of Covers an outlet sells compared with the total number of covers in each outlet.
Market Share%
It is the percentage share one has of the market depending upon the number of covers one sells.

Market share = Number of Covers done by the outlet x 100


Total number of covers done in the Market

Outlet name No. of Covers Marketshare%


Rockman's 115 22.54
Café Morrisson 80 15.68
Mocha 145 28.43
Howzzatt 170 33.33
Total 510 99.98

Graph 1.2 (No. of cover in the restaurant and Marketshare of the restaurant.)

1.6.3 Performance Ratio

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It is the ratio of number of covers an outlet sells with the number of covers that particular outlet offers to
market.

Performance ratio = Market Share


Fair Share

Hence using the above formulae, the fair share and market share of the competitors has been analyzed as
following:

Outlet No. of Marketsha No. of Fairshare Performan


name covers re % covers % ce Ratio
daily
Rockman's 115 22.54 140 35.89 0.62
Café 80 15.68 50 12.82 1.22
Morrisson
Mocha 145 28.43 90 23.07 1.23
Howzzatt 170 33.33 110 28.2 1.18
Total 510 99.98 390 99.98 4.25
Table 1.1 (Fairshare % VS Marketshare %)

Graph 1.3 (Competetitors Fairshare% VS Marketshare%.)


1.6.4 Cover calculation

Outlet name No. of covers


Rockman's 140
Café Morrisson 50
Mocha 90
Howzzatt 110
Total 390

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The number of covers of a restaurant is calculated by taking the average of covers available or existing
in the market. The rest may then be calculated using the unitary method.

Thus the average covers per outlet = 390 = 97.5


4
The researchers wish to round off this figure considering the space available and the capital expenses
and have decided maintaining a 100 covers for the proposed restaurant.

1.6.5 Performance Ratio, Marketshare and Fairshare for Beer Me!

By using unitary method

The Performance Ratio for Beer Me! is 1.08

i.e when there are 390 covers, the Performance ratio is 4.25

Thus, for 100 covers, the Performance ratio should be 1.08.

Therefore, Fair share % = No. of Covers in the outlet x 100


Total no. of covers in the market
100 x 100
490

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→ 20.41 %

Also, Marketshare % = Fairshare % x Performance Ratio

= 20.41 x 1.08 = 22.04

1.6.6 Number of Covers per day by Beer Me!

Total number of covers done per day by the competetitors multiplied by the market share % of Beer Me!
:

= 510 x 22.04 = 112.40


100
Therefore the researchers have considered 120 as no. of covers sold per day.

Since Beer Me! comprises 22.04 of the total market share, the rest of the competetitors’ share reduces to
77.96 %. Thus to calculate the new market share % of the competetion, the researchers multiplied 72.31
% to the old market share.

For example:

The new market share for Rockman’s = 77.96 /100 x 22.54

= 17.57%

After finding the new market share of all the competetitors, in order to calculate the actual covers done
by them, the researchers have multiplied the market share % to the total no. of covers done in the
market.

For example:

The daily covers for Rockman’s = 17.57/100 x 510


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= 89 covers

This shows that earlier, Rockman’s used to make 115 cover per day on an average but now there is a
drop of 26 covers that is 5.09% of the total covers which Beer Me! gets from Rockman’s.

The performance ratio was calculated using the same formula

i.e Market share % / Fair share %

Therefore the new Performance ratio of Rockman’s would be

= 17.57 / 35.89

= 0.48

Similarly, for the other competetitors, the new performance ratio was calculated to be:

Outlet No. of Marketsha No. of Fairshare Performan


name covers re % covers % ce Ratio
daily
Rockman's 89 17.57 140 35.89 0.48
Café 62 12.22 50 12.82 0.97
Morrisson
Mocha 113 22.16 90 23.07 0.96
Howzzatt 132 25.98 110 28.2 0.91
Beer Me! 120 22.04 100 20.41 1.08
Total 510 99.98 340 99.98 4.15
Table 1.2 (New Fairshare % VS New Marketshare %)

The total no. of covers done by Beer Me! is 120, thus there would be a fall in its competetitors’ covers.
With Beer Me!s entry in the market, Howzzatt is estimated to witness the highest fall in covers. Hence,
it can be interpreted that Beer Me has taken covers from the total available i.e 5.09% from Rockman’s,
3.5% from Café Morrisson, 6.2% from Mocha Bar and 7.4% from Howzzatt.

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Graph 1.4 (Competitors’ New Market share% VS New Fair share%)


From the above graph it can be evidently seen that Beer Me! would have a market share of 22.04% with
an average of 140 covers per day and a performance ratio of 1.08 which is a very good and confident
start. Therefore it can be concluded that Beer Me! would be successful in capturing a good market share.

CHAPTER 2 : OPERATIONAL PHASE

2.1 INTRODUCTION

The marketing phase of the project assessed the feasibility of setting up of a Beer Brewery pub in New
Delhi. It helped provide a clear understanding of and approach to customer preferences, important
variables such as the number of covers that should be accommodated, etc. Thus it will facilitate the next
phase of the project wherein the concept will be implemented. Through the information gathered the
researchers were able to develop an appropriate menu, designing the décor, establishing an ambience
according to the needs and preferences of the potential customers. This phase concentrates on the
implementation of the concept, and the viability of the project in terms of operations along with the cost
it would embrace.

2.1.1 AIMS

The operational phase will provide a complete picture of the outlet taking into consideration the various
operational requirements. It will deal with the following factors which will ensure efficiency of the
various operations in the restaurant:

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Food and Beverage Enterprising Planning

• The concept

• Legal Formalities

• Capital and Operating Costs

• Menu engineering and pricing

• Staffing and Scheduling

• Space Allocation, Restaurant Design and Layout

• Costing and suppliers of raw materials and packaged products

• Pre-opening Activities.

2.1.2 OBJECTIVES
The objectives of the Operational Phase may be underlined as below:
• To highlight the rationale of the proposed concept.

• To underline the basic legal formalities that are required in enterprise of this nature.

• To provide insights to the décor and interiors of the outlet, as well as their relative cost.

• To elaborate various vital aspects that will contribute to the smooth running of operations such
as staffing and scheduling, job descriptions, uniform, salaries, operating procedures and working
hours.

• To provide a suitable menu for the proposed outlet.

• To identify the suppliers and distributors of operational supplies along with quotations.

• To design a pre-opening campaign that will act as a marketing tool to advertise the restaurant.

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2.2 THE CONCEPT – BEER ME!

2.2.1 CONCEPT
The concept of Beer Me! Has been inspired by authentic Bavarian pubs which serves natural and fresh
beer with no chemicals or preservatives and which caters to a market with no age bar – both young at
age and young at heart. It’s a micro brewery where the beer is prepared in the restaurant itself for all the
customers to see and to enjoy healthy natural beer with a casual dining experience and live bands for
entertainment. The USP of this restaurant is an in house brewery which makes our own beer including
some exceptional flavored beers. The beer is prepared on the premises without any additives or
pasteurization which results in a pure natural product. The best part of this beer is does not only taste
good, it adds to well feeling and health.

2.2.2 CUSTOMER PROFILE

The customers that the outlet would target are a mixed bag. It caters to customers who would genuinely
enjoy Beer, of age 25 and above with an ambience appropriate for a casual lunch, an exclusive dinner or
just catching up with friends. Although according to the market research done by the authors suggests
that the target market for this restaurant would mostly be within the age group of 30 – 50 as they have
the most spending capacity and also businessmen due to close proximity. Owing to its location in
bustling Saket the most happening part of South Delhi, the restaurant expects clientele from within the
catchment area which is primarily a residential and shopping area.

2.2.3 LEVEL AND STYLE OF SERVICE

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Beer Me! is a 120 cover restaurant which is operational for lunch and dinner. The outlet has an in house
brewery and fresh made Draft Beer to compliment the conceptual design and ambience of the restaurant
which will enhance the guest experience and thus play an important part in the overall dining
experience. The style of table service will be semi formal, more on the lines of casual dining and pre
plated with an element of style, quality and professionalism. The service staff would be well trained and
skilled to exceed guest expectations and be able to up sell thus helping in generating revenue as well as
providing a memorable experience.

2.2.4 ATMOSPHERE AND AMBIENCE

The atmosphere and the ambience of the restaurant will play a crucial role in the development of a
design process. The ambience of the restaurant is something which makes the guest feel relaxed and
comfortable even before he/she experiences the food. Different kinds of outlets induce different kinds of
feelings. The ambience could be determined by keeping in mind the entire concept and also the
clientele. Since the proposed restaurant focuses on casual experience, the ambience is decided to be laid
back as well. Keeping live bands and music as entertainment tools, in consideration the walls could be
red brick walls with posters of classic rock titles and singers. The floor is wooden and the restaurant
would have huge steel vats where the beer is made.

2.2.5 LIQUOR AND CUISINE

As the proposed restaurant is based on the concept of a micro brewery, it is but obvious that it would
require to serve alcohol. Beer would be the USP of the restaurant with wheat beer, flavored beers
coming into the picture, although the restaurant would also serve cocktails and other liquor with a fully
fledged bar. In order to accompany the beer, the cuisine and the menu has been meticulously designed
which is mainly continental and some signature Bavarian dishes.

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2.2.6 LOCATION

Beer Me! Is proposed to be located in the Saket area of South Delhi which is one of the many middle-
class-dominated areas located in the south of Delhi, the capital of India. The neighborhood is named
after the city of Ayodhya, an ancient, religiously significant city in Uttar Pradesh. The Great Kabab
Factory is premium dinning place in DLF Place mall in Saket as India's economy continues to grow and
major Indian cities continue to expand, neighborhoods are quickly changing and upgrading throughout
the country and Saket is no exception. The area has come to be known as one of the mall-hubs in Delhi
and hence this raises the target market potential i.e people who come out shopping would like to go for a
beer or two in the afternoon after they are done with shopping.

2.2.7 HOURS OF OPERATION

Considering the laws in Delhi, the restaurant will be open from 15:00 hrs to 02:00 with happy hours
from 15:00 hrs to 21:00 hrs. The restaurant operational timings remain the same throughout the week.

2.2.8 PROPERTY DETAILS

Total area of Beer Me! = 4480 sq. ft

Rent per sq. ft. = 110

Therefore, total rent payable per month = 4480 x 200 = 896000

Hence, total rent payable per year =1,07,52,000

2.3 SPACE REQUIREMENT

2.3.1 SPACE ALLOCATION

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The calculation of the required space in the restaurant in both the front area and back area needs to be
calculated keeping in mind different attributes and facilities of the restaurant. It is not as simple as
deciding how many guests one is going to serve and making sure there is enough room for them. Space
planning begins by examining all the parts of the foodservice facility even beyond the front and back of
the house. The following represents the international standards of space requirements for any
establishment :

Type of Operation Area per seat (sq.ft.)

Table service 24-32

Counter service 18-24

Booth service 20-28

Cafeteria service 22-30

As per the international standards, the entrepreneurs have allocated 3o square feet as the total facility
space, this is justified as the total land and space available to the entrepreneurs is large enough for the
same. Thus the total space requirements for the establishment are as under :

Total area = Number of covers x Space allotted per cover

Number of covers = 100

Space allotted per cover = 32 sq. ft

Therefore the total cover space = 100 x 30 = 3200 sq. ft

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As the total area of the restaurant with the entrepreneurs is 3600 square feet, and the total cover area
comes out to be 3000 square feet, the extra space is divided for the back area, bar area, live band stage
etc.

2.3.2 ESTIMATED RESTAURANT AND PRODUCTION SPACE FOR FUNTIONAL AREAS

Area Area percentage of 3600 Area (sq. Ft)

Inside dining area 54.91 % 2460

Brewery set up 17.18 % 770

Guest wash room 2.67 % 120

Live band stage 5.02 % 225

Bar area 5.35 % 240

Kitchen area 5.58 % 250

Employee wash room 1.32 % 72

Back area 9.26 % 415

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2.4 FACILITIES PLANNING AND DESIGN

2.4.1 EXTERNAL FACADE

The word Façade comes from the French language, literally meaning ―face‖. A façade pattern is an
object oriented design pattern. A façade is an object that provides a simplified interface to a larger body
of code. A façade is generally one side of the exterior of a building especially the front, but also
sometimes side and rear. In architecture the façade of a building is often the most important from a
design perspective, as it sets the tone for rest of the restaurant. The exterior of Beer Me would be a glass
door with the Beer Me! Logo, a chalk board at the patio, listing the band playing for the night. The walls
inside and outside the restaurant are red brick walls. Therefore the external façade of Beer Me! looks as
follows:

ITEM PURPOSE PRICE PICTURE

Wall lantern Lighting Rs. 2050,


outside the including
Jainsons
restaurant installation
electronics
and bulb.
Address: 1832,
Bhagirath Palace,
New Delhi, Delhi -
110 006, India

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Wooden rimmed Chalkboard Rs. 1475


chalkboard listing the
band playing
Shehla décor
for the night
Address: G-124,
Chhattarpur Ram
Colony, New Delhi,
Delhi - 110 074,
India

Wooden door with Restaurant Rs. 6225


glass panels and entrance door along with
Beer Me! Logo. the logo.

Total cost Rs. 9750

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Food and Beverage Enterprising Planning

2.4.2 FURNITURE AND FIXTURES


One of the first objects that the guest comes into physical contact in a food service facility is the
furniture and fixtures which give rise to various perceptions. Seating affects how customers perceive
BEER ME! and how long they spend in the outlet. The surface and shape of the seat, its position at the
table and its visual correlation to the general design of the room, all affect the customers experience at
BEER ME. In order to give the best experience to your customers, it is important to select the most
appropriate furniture for the outlet. Furniture plays an important role in a restaurant designs it reflects
the comfort level that the customer will experience while dining in the restaurant. In order to contribute
to the overall atmosphere and ambience of the restaurant, the entrepreneurs have taken into
consideration various factors while deciding the furniture for the outlet.

The concept of BEER ME! is inspired by the traditional Bavarian Brewery and the furniture justifies
the concept fairly. Basic wooden furniture in darker tones- dark browns and cappuccino shades
perfectly blending with the restored tin ceilings and wood floors, and exposed brick walls.

Considering the fact that BEER ME! is a concept oriented outlet the furniture is very basic including
wooden bar stools complimenting the U shaped wooden bar, cappuccino shaded wooden table and
chairs and dark brown leather couches.

ITEM PURPOSE PRICE PICTURE

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wooden Bar Bar 30, 000


dispensing-
U shaped instead
counter for
serving fresh
brewed beer.

Wooden Bar stools Bar single 2000


seater

Round wooden Couple 3600


tables seating

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Rectangular Seating for 4000


wooden tables four and six
pacs

All Table tops have a planked top.

Leather couches Comfortable 8000


couch seating
Dark brown instead
for 3 pacs

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Wooden chairs Dining area 3000


(with Armrest) seating

Side stations To place and 4000


store cutlery,
crockery and
water jugs

Oak barrel shaped Sauce 350


center piece dispenser

• Costing

Sr. No Item Quantity Rate Total cost Supplier


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1. Chairs 1.5 ft x 1.5 ft x 80 2000 160000


3 ft (LBH)

2. Round tables 3.5” 08 3600 28800


diameter

3. Rectangular tables 4 ft 16 4000 6400


x 2 ft x 3 ft
Delhi Furniture
4. Bar stool 1 ft x 1 ft x 08 3000 24000 Company (P) Ltd.
A-24-A, Neb
3ft Velly Neb Sarai
5. Side Board 3 ft x2 ft x 04 5000 20000 New Delhi - 110
3ft 068, Delhi

6. Dispense Bar counter 01 30000 30000


20 ft x 2.5 ft x 4 ft

7. Leather Couches 12 8000 96000

8. Oak barrel shaped 25 350 8750


sauce dispenser

Total cost 431550

2.4.3 WALL COVERING


Walls create the desired ambience for the restaurant by providing surfaces for points of interest such as
posters on the walls of the Beer Me! Hence wall paintings, wall coverings, the shape of the walls, the
materials utilized and the finishes all play a very important role in dictating the overall design and
contribute to the right ambience for the restaurant. On the contrary, the design and the quality of the wall
coverings drastically affect the cost of the wall as well as its durability. While selecting wall coverings,
one should keep in mind the operational perspective, the walls and their coverings should be easily
cleanable and resistant to wear and tear. The walls of Beer Me! would have an unfinished brick wall
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Food and Beverage Enterprising Planning

look with posters of classic rock singers, titles and albums. The paint used in the back area and the
kitchen will be standard Magic Cream from Asian Paints which will provide enough light to create the
right atmosphere for work. In high impact areas, special attention should be given to wall finishes.
The ceilings of Beer Me! would be white so that they would reflect the light and not let the restaurant
look dingy and would have the steel pipes running till the bar for easy tap Beer service.
Some of the posters selected for wall hangings are as follows:

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Food and Beverage Enterprising Planning

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The walls with the unfinished brick look and posters would look as follows :

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• Costing

Walls Area sq. ft/ No.s Supplier Rate (Rs.) Cost

Brick finish 2460 86 211560


(restaurant)

Posters (printing + 30 Gee Offset and 25/ poster + 500 15750


framing) Screen Printers.
Lakshmi Nagar,
Delhi, Laxmi
Nagar, Delhi
110092

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Asian paint (Back 770 36 27720


area + kitchen)

Asian paint 420 36 15120


(Brewery )

Total cost Rs. 2, 70, 150

2.4.4 FLOORING
The choice of flooring for the restaurant should complement the overall ambience that the outlet wishes
to deliver. Thus, the entrepreneurs wish to provide an overall contemporary look to the flooring.
Flooring chosen for a restaurant is very important as they are readily noticed on entering a room. The
flooring should be functional and decorative as it covers a tremendous area and are subject to a great
deal of wear and tear. The choice of floor should be well suited to the space, its use and its qualities. The
successful choice of a floor should not be a compromise, but should satisfy both visual and functional
needs. In terms of back area the flooring should be non-skid for which Kota stone flooring will be used.

Item Quantity Purpose Picture

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Vinyl wooden 2460 + 240 + 770 Restaurant


flooring sq. ft flooring +
brewery + bar

Anti skid tiles 120 sq. ft Guest


washroom

Kota stone 770 sq. ft Kitchen and


back area

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Rubber mats 100 sq. ft Bar

Anti skid tiles 75 sq. ft Employee


restroom

Stage floor 225 sq. ft Live band stage

Costing

Area Type of Price per sq. Area (sq. Total cost Supplier
flooring Ft Ft)
Dining areas Vinyl wooden 72 2460 177120 Hayatt
interiors
Brewery Vinyl wooden 72 770 55440
(engineers and
Kitchen Kota stone 28 250 7000 contractors)

Guest Anti skid tiles 45 120 5400 D/228, Durga


washroom Vihar, Phase-2,
Emp. Anti skid tiles 22 75 1650 Dinpur
Washroom Najafgarh, New
Back area Marble floor 30 340 10200 Delhi, Delhi -

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Stage Vinyl wooden 72 225 16200 110 043, India


–floating
stage
Bar area Vinyl wooden 72 240 17280
flooring
Elite traders
Rubber mats 100 4500
Address: 756/6,
Gori Shankar
Market, 1st
Floor, Gali
Kunde Walan
Ajmeri Gate,
Delhi, Delhi -
110 006, India

Total cost Rs. 2, 94, 790

2.4.5 LIGHTING
Lighting plays a very important role in bringing life to a restaurant; it makes it easier for the people to
enjoy the ambience and the food as well as in the back area to help employees work accordingly. It can
either make or break the whole feel and ambience to the restaurant. While deciding the lighting required,
the amount of daylight entering the outlet should be kept in mind as the same affects the type of lighting
that is to be chosen and its fittings positioning.

Keeping in the mind the concept of a Bavarian Pub Brewery the restaurant will have a dim yellow
lighting complimenting the aesthetics and the young market that the entrepreneurs are trying to attract.
Lighting will include pendant lights, a chandelier lighting the minimalistic traditional wooden bar. The
entrance is lit by lamps adding to the appeal of the elegant door and exteriors.

LIGHTING = 2.32 Watts *AREA (Sq. feet)

AREA OF BEER ME! =4480 Sq. feet

LIGHTING REQUIRED=10394 Watts (2.32 Watts* 4480 Sq. Feet)

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Item Purpose Rate Picture

Dining area Dim yellow 1000


Jute Pendant complimenting
lights the Décor and
Aesthetics

Spot lights Ceiling recessed 600


lights

Chandelier Bar lighting 12000


lights

Floor recessed Band area 06


LED Lights- illumination
yellow colored

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Ceiling Kitchen Lights 400


hanging white
lights

Tube lights Brewery/ Back 200


area lighting

• Costing

Sr. No Item Quantity Rate Total cost Supplier

1. Spot lights 16 600 9600 COLOR


DESIGN
2. Pendant lights 13 700 9100 INDIA,NEW
DELHI
3. Chandelier 01 12000 12000

4. Floor mounted LED 06 750 4500


lights
A-15A, Maya
5. Recessed lights- 04 300 1200 Puri
guest washroom Industrial
Area Phase-ll,
6. Wall hanging white 10 400 4000 2nd floor,
lights New Delhi
7. Tube lights 15 200 3000

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Total cost 47500

2.4.6 ENTERTAINMENT AND ACOUSTICS


It is important to take into consideration the level of entertainment that the restaurant wishes to provide,
so as to set the right atmosphere to the overall guest experience. Music can make having a meal an
enjoyment or a pain. The style and genre of music should complement the theme and cuisine of the
restaurant. The music should also not be very overpowering in nature and should not be too loud.

A live band will play on Fridays, Saturdays and Sundays. The musician’s instruments will be self owned
and thus the entrepreneurs will not have to bear the cost of buying the instruments. The band which will
be playing at Beer Me! is called still thinking about it. Also the members are close friends of the owners,
and therefore will not charge anything to play. And on the other week days pre-recorded music will be
played.

• Costing

Item No Rate/unit Total cost Item

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Creative MP3 2 4900 9800


player (2 GB)

6.1 Creative sound 2 28600 57200


theatre system

Total cost 67, 000

2.4.7 RESTROOM FACILITIES


For Guests:

Equipment Rate/unit Units Total cost Supplier Item


needed
Water closet 2100 3 6300
HSIL LTD
(formerly)
HINDUSTAN
SANITARYWARE
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Wash basin 2950 2 5900


& INDUSTRIES
LTD

Address : 301-302,
3rd Floor, Park
Soap 805 2 1610 Centra, Sector -30
dispenser Nh-8, Gurgaon -
122001, Haryana,
India

Taps 2250 2 4500

Mirror 1950 1 1950

Total cost Rs. 20, 260

For Employees:

Equipment Rate/unit Units Total cost Supplier Item


needed

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Water closet 1750 1 1750


HSIL LTD
(formerly)
HINDUSTAN
SANITARYWARE
& INDUSTRIES
Wash basin 1800 1 1800 LTD

Address : 301-302,
3rd Floor, Park
Central, Sector -30
Nh-8, Gurgaon -
122001, Haryana,
Soap 200 2 400 India
dispenser

Taps 1200 2 2400

Mirror 1000 1 1000

Total cost Rs. 7, 350

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2.4.8 ENGINEERING CONSIDERATION


2.4.8.1 Heating and Ventilation: HVAC
Heating, ventilation and air conditioning commonly known as HVAC are used to maintain a level of
comfort for both guests and the employees. The HVAC system must be carefully selected, properly
operated and continuously maintained for it to perform its job effectively. The key environmental
comfort factors at work are indoor temperature, humidity, air movement, room surface temperature and
air quality. Commercial kitchens no matter how large or small require properly designed ventilation
systems to provide a comfortable environment. This should adequately capture grease, vapors and
effluents from the cooking processes. The heat from the gas ranges, steamers, hot air from refrigerator
and chiller compressors contribute to a rise in the overall temperature of the kitchen and hence it is
important to ensure proper airflow. Without proper ventilation, heat and humidity become unbearable,
grease slowly builds up on walls and other surfaces, and odors waft into the dining area nearby.

For the kitchen, ducts will be mounted directly over the cooking equipment and will be made of
galvanized steel with a liquid-tight, continuous external weld. In order to make sure that smell from the
kitchen does not travel to the restaurant, the kitchen must be kept under negative pressure so that the air
forms the public areas always moves into the kitchen and not vice versa. The fumes collected by the
overhead hood systems are taken out through these ducts with the help of an exhaust fan. The exhaust
fans that will be installed will be of 2 horsepower each to extract the fumes and hot air out, and will be
replaced by fresh air with the help of 2 horsepower fans. The standards for conditioning the restaurant
are:

• Temperature range – 21oc to 25o c

• Relative humidity range – 40 %

Item Power Quantity Rate/unit Total cost Supplier


required (Rs.) (Rs.)

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Split Air 2 Ton 6 23480 146280


conditioners

Exhaust fans 2 BHP 2 11000 22000

Total cost Rs. 1,68,280

2.4.9 FIRE PROTECTION


All food and beverage outlets have a certain ethical responsibility towards their customers as well as
their employees. Nowadays, consumers are getting more concerned about such issues as they now
consider security and safety as an important factor in choosing an outlet. Good fire protection dictates
that the outlet must be able to handle various fire hazards that they may be expected to deal with.
Suitable fire protection training must be given to every employee with adequate fire drills. All fire
extinguishers must be placed in easily accessible areas, and while deciding the number of extinguishers,
one must follow the requirements indicated by NFPA. The fire extinguishers to be used are:

Name Type Quantity Rate (Rs.) Total cost Supplier


required (Rs.)

Fire A 2 4300 8600


extinguishers BC 2 4300 8600

Total cost Rs. 17,200

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Type BC fire extinguisher


(http://www.northerntool.com/images/product/images/8888_lg.jpg)

2.5 LEGAL FORMALITIES

Laws and Licenses

Licenses form an important part of all documentation that needs to be authorized by the government.
Laws and licenses differ from one city to another. Even in a city like Delhi, licensing authorities are
different for different nodes. Moreover, it also depends on the entrepreneur whether he is constructing

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his own building, taking it on lease or buying a premise that has already been constructed. Multiple
governmental departments and sub- departments need to be contacted for approvals. This can be the
most exasperating of all entrepreneurial tasks. Preparing for the bureaucracy there in includes a long
wait and often under the table payments. A one- window system that addresses all the requisite
permissions is still only a dream. Licenses, which need to be obtained for the Beer Me! are:

1. Pre- requisites- Approval of the project

Registration Authority Government of India

Issuing authority Tourism department (Govt of India)

Pre- requisite before starting the outlet. Enterprise


should be 75 meters away from all religious
Requirements
institutions and hospitals. It is also essential to
have four copies of the blue print of the floor plans

2. Registration under Shops and Establishment act


Issuing Authority Delhi urban development authority

Duration Lifetime

Depending on the number of employees (16-21)


Fees
Rs. 1500

Requirement First license needed for opening the restaurant.

3. Company Registration
Issuing Authority Registrar of companies

Duration Till termination of operations

Fees Rs. 5000

Requirement For creation of legal entity

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4. No Objection Certificate from Health Department

Issuing Authority Chief Medical Officer, Delhi Govt.

Duration 1 year

It is required in order to ensure healthy and


hygienic practices in the premises. The chief
Requirement medicinal officer would assess the location and
availability of potable water and the conformance
to the unitary standards set by the MCD.

5. No Objection Certificate from Police Department

Issuing Authority Delhi Police, Commissioner’s Office


Duration 1 year
The No Objection Certificates issuing involves the
committee sending a Munadi around the site, if
Requirement
there is no objection within seven days; the No
Objection Certificate is issued.

6. No Objection Certificate from Fire Department


Issuing Authority Chief Fire Officer/ Municipal Corporation
Duration 5 years

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It is required for any building, which is intended to


be used for commercial activities. The
entrepreneurs would need to provide a copy of the
building design to the authorities. Only if the
building fulfils all the requirements of the
Requirement
authorities based on evacuation, number of floors
and fire protection provisions will the No
Objection Certificate be granted. Without this
certificate, the eating house license cannot be
granted.

7. Eating House License


Issuing Authority Delhi Police, Commissioner’s Office

Duration 1year

Fees Rs. 2000

Requirement Operational of eatery

8. Food Adulteration Act


Issuing Authority Municipal Corporation

1 year (but can be suspended if found guilty of


Duration
violating the act)

Requirement Production and sale of Food & Beverage

9. L-4 License
Deputy Commissioner of Police/ Licensing,
Issuing Authority
Excise Commissioner, Delhi

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Duration 3 years

This license takes care of bar and restaurant


Requirement
establishment.

10. Service of Liquor


Issuing Authority Service and Storage of Liquuor

Duration Lifetime

Fees Rs. 8.5 Lacs

Opening a permit room to openly serve and store


Requirement
liquor.

11. No Objection Certificate for service of Liquor


Issuing Authority Service and Storage of Liquor

Duration 1 year

Fees Rs. 3000

Requirement Clearance for the operation of the outlet

12. Pub Brewery License


The Pub Brewery license for New Delhi is still in its construction of its policy stage. However an
estimate can be provided as the license for a brew pub in the state of Haryana is at an approximate of 2,
50,000 Rs.

13. Value added tax


Regulation Authority Sales Tax Department, Delhi

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Sale of liquor including imported foreign liquor


Condition made through L-4 outlets shall attract VAT at 20%
and 12.5% for food

14. Sales Tax Certificate


Regulation Authority Sales Tax Department, Delhi

The ministry issues a Sales Tax Certificate to the


entrepreneur, which can be applied for by filling
Condition up Form A; Application for Registration under
Section 7(1)/7(2) of the Central Sales Tax Act,
1956

Documents supporting nature of business,


Requirement
ownership and business volume.

15. Sanction of LPG


Issuing Authority Ministry of Petroleum

The ministry of petroleum has defined a gas bank


as a pre requisite for restaurant operations. The gas
Requirement
bank cannot be situated in a basement under any
circumstances.

16. Clearance from Pollution Control Board


Regulatory Authority Municipal Corporations

To ensure proper disposal of water and use of air


Requirement
conditioning.

17. Obtaining Import License


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Regulatory Authority Imports and Exports, New Delhi

Issuing authority Customs Commissioner

Requirement Import of equipments, goods for outlet

18. Property, water and Sewage Tax


Issuing Authority Municipal Corporation, New Delhi

For collection of taxes for the purpose of


Requirement
maintaining public utilities

19. Public Performance License


Superintendent Officer, Phonographic
Regulatory Authority
performance Limited

Fees Rs. 10000 per year

Requirement Authorization to play sound recorded music

20. Copyright for playing Music


INDIAN PERFORMING RIGHTS SOCIETY
Issuing Authority
LIMITED

Duration 1 year

Fees Rs. 3650

Requirement Playing Live music

21. Weights and Measurements Certificate

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Issuing Authority Deputy commissioner in the form of NOC

Required for the verification of weights and


Requirement
measurement scales used on premise.

22. Contract Labor License


Issuing Authority HUDA

Duration 1 year

Fees Rs. 5000

The contract labor (Regulation and Abolition act,


1970). Every employee can work a maximum of 6
days a week, with 10 hours of work each day,
Requirement
within which 2 hours of break is scheduled. The
workplace needs to be equipped with a cafeteria,
common room and hygiene facilities.

23. Availing Fiscal Incentives


Issuing Authority Department of Tourism

Applied to Commissioner of Income tax

Requirement Approval under 32, 33 and 80 of the I.T Act

24. Employee Policies


If there are more than 20 employees, 12% of
Provident Fund Act employees’ salary is paid by the employer in a
fixed deposit.

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If there are more than 20 employees, the firm is


ESI liable for ESI. This insurance for employees is
calculated as 3% of the monthly salary.

If employees wages are more than Rs.2000/- they


are liable to pay tax as follows:
Rs. 2001- Rs. 2500: Rs. 30
Profession Act
Rs. 2501- Rs. 3000: Rs. 60
Rs. 3001- Rs. 3500: Rs. 120

The total cost of all the legal formalities adds up to Rs. 8,80,150

2.6 STAFFING AND SCHEDULING

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Staffing is the practice of finding, evaluating and establishing a working relationship with future
employees. The staff needs to be recruited and trained in accordance with the requirements of the
restaurant. One of the most crucial resources for any service-oriented business is its staff or labor force.
Staffing involves finding the right people, with the right skills, abilities, and fit, who may be hired or
already working for the organization or may be working for competing companies. It is very essential to
choose the right kind of and the correct number of staff members to do the work they best fit into in
order to ensure the success of the organization. The staff needs to be recruited and trained in accordance
with the requirements of the restaurant since the general payroll and labor costs constitute a large share
of the operational costs and generally lays in-between 12% to 20% of the total costs; it is always viable
not to overcrowd the restaurant when the staff is not required over there.
It is mandatory for the management of an enterprise to ensure that staff is adequate and competent so
that they may be able to ensure the success of the restaurant. Staffing aims at establishing the right
number of people required in a restaurant, highlighting their job responsibilities and job specifications,
preparing job schedules and assigning their payrolls. Another important aspect of service is uniforms
which adds quality to the service, especially among food and beverage staff, it is necessary to make
certain that they are at all times well dressed and groomed as they will dealing with food items. Lastly,
appropriate salaries should be assigned in order to reduce job dissatisfaction.

It is imperative that “Beer Me!” should not be overstaffed or understaffed. The attributes required to
have in order to be a part of the staff are: honesty, reliability, courtesy, smart appearance, good
communication skills, knowledge, a positive attitude and punctuality. Staffing has been decided on the
basis of the kind of service in Beer Me!, the productivity standards, number of the tasks and jobs to be
performed, menu and Beer Me ! Operation timings and labor laws.

This chapter will elaborate on all these aspects and will also present the various costs and expenses
involved in the process of staffing.

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2.6.1 HIERARCHY- RESTAURANT AND KITCHEN STAFF

The entrepreneurs of Beer Me ! would be overlooking the start up and operation of the establishment,
so they would take the role of Managers, whereas the Executive chef is proposed to be one of the
entrepreneurs’ friend. The hierarchy would look as follows:

2.6.2 STAFFING REQUIREMENTS AND SALARIES

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Designa Basic House Conve Total PF (12 ESI ( Total Hom No. Total
tion salary rent nce salary %) 1.75 %) deducti e of salary
(50%) allowa balanc on carry Empl
nce e conve oyees
(20%) y Bal.

Restaur 10000 - - 20000 - - - - 1 20000


ant
manage
r

Cashier 6000 - - 12000 - - - - 1 12000

Captain 7500 - - 15000 - - - - 2 30000

Bartend 6000 - - 12000 - - - - 2 24000


ers

Steward 5000 - - 10000 - - - - 7 70000


s

Runners 3000 1800 1200 6000 720 105 825 5175 2 12000

Head 10000 - - 20000 - - - - 1 20000


chef

Sous 7500 - - 15000 - - - - 2 30000


chef

Commis 5000 - - 10000 - - - - 6 60000


chef

Utility 2500 1500 1000 5000 600 87.5 687.5 4312. 2 10000
worker 5

Security 2000 1200 800 4000 480 70 550 3450 2 8000


guard

Total 28 296000

• The salary of the owners will be Rs 60000 per month. Therefore


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2.6.3 SHIFT TIMINGS

• Morning shift : 12:00 to 21:00 hrs (M/s)

• Evening shift : 16:00 to 01:00 hrs (E/s)

• Break shift 12:00 to 16:00 and 20:00 to 00:00 hrs (B/s)

Employees on Morning shift and Evening shift get a one hour break every day, depending on the
volume of business. Break shifters do not get any break during their hours of duty.

2.6.4 DUTY ROSTER


• Restaurant staff

Employee Monday Tuesday Wednesda Thursday Friday Saturday Sunday


y

Restaura (B/s) OFF (B/s) (B/s) (B/s) (B/s) (B/s)


nt
manager

Cashier OFF (B/s) (B/s) (B/s) (B/s) (B/s) (B/s)

Captain 1 (M/s) (M/s) OFF (B/s) (M/s) (M/s) (M/s)

Captain 2 (E/s) (E/s) (B/s) OFF (E/s) (E/s) (E/s)

Steward 1 (E/s) OFF (E/s) (E/s) (E/s) (E/s) (E/s)

Steward 2 (E/s) (B/s) OFF (E/s) (E/s) (E/s) (E/s)

Steward 3 (M/s) (M/s) (M/s) OFF (M/s) (M/s) (M/s)

Steward 4 OFF (E/s) (E/s) (E/s) (E/s) (E/s) (E/s)

Steward 5 (M/s) OFF (B/s) (M/s) (M/s) (E/s) (E/s)

Steward 6 (E/s) (E/s) OFF (B/s) (M/s) (M/s) (M/s)

Steward 7 (M/s) (M/s) (M/s) (M/s) OFF (M/s) (M/s)


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Bartender OFF (B/s) (M/s) (M/s) (M/s) (M/s) (M/s)


1

Bartender (B/s) OFF (E/s) (E/s) (E/s) (E/s) (E/s)


2

Runner 1 (M/s) (B/s) OFF (B/s) (B/s) (E/s) (B/s)

Runner 2 (B/s) (E/s) (B/s) OFF (E/s) (B/s) (M/s)

Utility (B/s) OFF (B/s) (B/s) (B/s) (B/s) (B/s)


worker

• Kitchen staff

Employee Monday Tuesday Wednesda Thursday Friday Saturday Sunday


y

Head OFF (B/s) (B/s) (B/s) (B/s) (B/s) (B/s)


Chef

Sous Chef (M/s) (E/s) OFF (B/s) (E/s) (M/s) (E/s)

Commis 1 (M/s) OFF (M/s) (B/s) (M/s) (E/s) (E/s)

Commis 2 (B/s) (M/s) OFF (M/s) (E/s) (B/s) (M/s)

Commas (B/s) (B/s) (E/s) OFF (E/s) (E/s) (B/s)


3

Commas (E/s) (B/s) (E/s) (B/s) OFF (M/s) (B/s)


4

Commas OFF (E/s) (B/s) (E/s) (B/s) (B/s) (E/s)


5

Commas (E/s) (E/s) (B/s) (E/s) (B/s) (E/s) OFF


6

Utility (B/s) OFF (B/s) (B/s) (B/s) (B/s) (B/s)


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worker

• Other staff

Employee Monday Tuesday Wednesday Thursday Friday Saturday Sunday

Security 1 OFF (B/s) (E/s) (E/s) (E/s) (E/s) (E/s)

Security 2 (B/s) OFF (M/s) (M/s) (M/s) (M/s) (M/s)

2.6.5 JOB DESCRIPTION AND JOB SPECIFICATION

1. RESTAURANT MANAGER

 Job Description

Business activities:

 Taking responsibility for the business performance of the restaurant;


 Analyzing and planning restaurant sales levels and profitability;
 Organizing marketing activities, such as promotional events and discount schemes;
 Preparing reports at the end of the shift/week, including staff control, food control and sales;
 Creating and executing plans for department sales, profit and staff development;
 Setting budgets and/or agreeing them with senior management;
 Planning and coordinating menus.

Front of house:

 Coordinating the entire operation of the restaurant during scheduled shifts;


 Managing staff and providing them with feedback;
 Responding to customer complaints;

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 Ensuring that all employees adhere to the company’s uniform standards;


 Meeting and greeting customers and organizing table reservations;
 Advising customers on menu and wine choice;
 Recruiting, training and motivating staff;
 Organising and supervising the shifts of kitchen, waiting and cleaning staff.

Housekeeping:

 Maintaining high standards of quality control, hygiene, and health and safety;
 Checking stock levels and ordering supplies;
 Preparing cash drawers and providing petty cash as required;
 Helping in any area of the restaurant when circumstances dictate.

 Job Specification

 An important pre-requisite is that he should be a Hotel Management graduate


 Should have at least 5 years experience with another recognized stand alone restaurant in a
similar supervisory position
 Must have exceptional communication and presentation skills
 Should also be adept with financial management systems of restaurants

 Cost of uniforms

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 Costing
Sr. No Item Quantity Rate Total cost

1. White Shirt 3 350 1050

2. Black Blazer 2 1200 2400

3. Yellow tie 2 120 240

4. Trouser 2 500 1000

5. Shoes 1 700 700

Total cost 5390

2. CAPTAIN
 Reports to: Restaurant Manager
 Job Description
 Assist the restaurant manager in conducting his duties
 Checks and maintains all records
 Manages dining room operations to ensure guest satisfaction

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 Observes and directs service of guests by staff to make sure service standards are being
met.
 Handles guest complaints and assists in service.
 Maintains dining room, seeing that it is in a good shape and fully stocked with supplies to
ensure guest satisfaction and safety.
 Takes care of the daily cleaning and setting up of the restaurant.
 Heads the stewards and is the way of communication between the manager and the
stewards
 Briefing to the staff in absence of Restaurant Manager.
 Tracks the inventory and supervises the sections assigned to him.
 Takes care of the welfare of the stewards.
 Serves guest in a courteous, helpful and prompt manner to ensure guest satisfaction and
repeat business.
 Handling guest complaints and solving them as per the policies of the restaurant.
 Motivates the staff and maintains interdepartmental relationship.
 Manages inventory of beverages in co-ordination with the bartender and the supplier.
 Keeps a check so that all health and safety regulations are complied with.

 Job specification
 Must have basic Food and Beverage knowledge.
 Must have a minimum experience of at least two years.
 Must have adequate knowledge to handle situations in the absence of the manager.
 Must have good communication skills.

There will be a thorough check on the credentials given above, in the form of an exhaustive interview
preceding selection for the job.

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 Costing
Sr. No Item Quantity Rate Total cost

1. White Shirt 3 350 1050

3. Black tie 2 120 240

4. Trouser 3 350 1050

5. Shoes 1 600 600

Total cost 2940

3. RESTAURANT STEWARD

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 Reports to: Captain


 Job Description
 Ensure Guest satisfaction at all times, repeated business through impeccable service.
 Welcomes and seats the guests according to restaurant policy.
 Accurately presents the menu to the guest in a courteous and helpful manner.
 Set up the table according to the standards and design of the restaurant.
 Serves the guest according to the service standards.
 Performs closing duty and all other duties assigned to him.
 Mise-en-place and Mise-en-scene.
 Handles guest complaints with compassion and with assistance from the Restaurant
Manager.
 Makes sure all the crockery and cutlery is in pristine condition, in coordination with the
utility workers.
 Maintains inventory.
 Pick up from the stores.
 Proceeds with service that guests prefer.
 Handles both cash and credit properly.
 Works as a member of a team, and adds to the positive work environment.

 Job Specification
 Must have previous training as Food and Beverage personnel.
 Must have minimum experience of 1 year.
 Must have the aptitude to promote sales and reduce costs simultaneously. Also, must
have adequate communication skills.

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 Costing
Sr. No Item Quantity Rate Total cost

1. Beige collar half 3 300 900


sleeved shirt

3. Blue Denims 3 600 1800

4. Brown Apron 2 250 500

5. Brown casual shoes 1 600 600

Total cost 3800

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4. CASHIER

 Reports to: Restaurant Manager


 Job Description and Specification
 To perform cash/credit transactions
 To print invoices of guests and restaurant supplies
 To keep updating the books of accounts.
 Minimum 1 year experience.
 Must have basic knowledge of computers.

 Same as the Captain uniform.


 The cost for a cashier’s uniform is Rs 2940

5. RUNNERS

 Reports to: Captain/ Stewards


 Job Description
 To ensure every order reaches the respective side station.
 To ensure tables are cleared on time.
 To ensure that the side tables are cleared of any soiled crockery or glassware.
 To ensure that all accompaniments are placed on every table for respective orders.
 To ensure that the back area is kept clean and mise en place is ready before operations.
 To assist the stewards in service.

 Job Specification
 Must be able to carry salvers and trays with confidence.
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 Must be able to converse in English language.


 Must be at least 10+2 pass from any board.

 Same uniform as Stewards


 The cost for runners is Rs 3800

6. BARTENDER
 Reports to : Restaurant Manager
 Job Description
 Oversees all operations of the Bar.
 Keeps inventory of items in the bar and orders accordingly.
 Estimates bar costs and makes a closing inventory daily.
 Ensures consistency in quality.
 Handles guest complaints related to the Bar.
 Should be able to handle drunken guests.

 Job specification
 Must have bar knowledge regarding service and brand names of various alcohols.
 Must have some formal training in bartending or should have prior experience of at least
2 years of handling a commercial Bar.
 Must be able to perform in front of the guests.

• Costing
Sr. No Item Quantity Rate Total cost
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1. Black collar half sleeved 3 300 900


shirt

3. Blue Denims 3 600 1800

4. Black apron with logo 2 250 500

5. Black casual shoes 1 600 600

Total cost 3800

6. SECURITY GUARD

 Reports to: Restaurant Manager


 Job Description
 Patrols assigned areas to ensure personal, building and equipment security.
 Examines doors, windows and gates to determine that they are secure.
 Watches for and reports irregularities, such as fire hazards, leaking water pipes, and
security doors left unlocked; sounds alarm in case of fire or unauthorized persons.
 Performs periodic checks of emergency call boxes and/or street lights to ensure proper
functioning; reports malfunctions as required.
 Guides the guests if required to do so and assist with the door.
\
 Job Specification
 Should have prior experience of at least one year.
 Should have strong physique.
 Must be well conversant with the local language.
 Should be well groomed and have a pleasing personality.

For the security guard, there will be no cost of uniform incurred as the security will be out from Eagle
Securities. Also, the salary of the security guard will be given directly to Eagle Securities from whom
the security guard is outsourced.

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7. HEAD CHEF

 Job Description
 Supervises kitchen staff in the production of all menu items, including the correct method
for using and modifying recipes, the use of variety of ingredients, right portioning and
garnishing.
 Supervises all the operations taking place in the kitchen.
 Supervises the food safety and secure handling of food.
 Regulates the receiving and storage of all food and beverage items to ensure quality and
quantity control.
 Supervises daily, weekly and monthly inventory.
 Ensure that the kitchen is kept clean, passes all health inspections, and all the equipment
is in working order.
 Proficient skills in terms of regulating food cost, increase profits, maintain the budget.
 Should not at any point compromise the quality of food.
 Scheduling the duty roster for the kitchen staff
 Monthly appraisals for the entire kitchen staff.
 Should plan out training sessions for less experience kitchen staff.
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 Increase motivational levels of staff.


 Interact with guests from time to time.
 Track the sales of various dishes, and generate reports to enable improvement.

 Job Specification
 Should have either a degree or a diploma in culinary arts and kitchen administration.
 At least five years of experience in culinary training.
 At least two years of satisfactory experience as a chef required.
 The ability to communicate effectively.
 Complete knowledge of the menu.
 Pleasing, amicable personality.
 Must have the knowledge of various styles of cooking and supervisory practices, quality
of food, beverage and supplies and should also comply with health department
regulations.

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• Costing
Sr. No Item Quantity Rate Total cost

1. Chef coat 3 800 2400

3. Chef Pants 3 500 1500

4. Chef cap 2 150 300

5. Apron 2 150 300

6. Shoes 1 700 700

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Total cost 5200

8. SOUS CHEF

 Reports to: Head Chef


 Job Description
 Tastes and evaluates food before serving, garnishes appropriately, and makes sure the
food is as per standards before it leaves the kitchen.
 Helps the head chef to control food costs and planning menus.
 Ensures that the work in the kitchen is carried out smoothly by his subordinates.
 Assists the executive chef to handle budgeting.
 Manages the hygiene and safe handling of food.
 Makes the duty roster and takes attendance.
 Has at least two years experience in culinary training.
 Complete knowledge about the menu.
 Must have adequate knowledge of various styles of cooking and should be aware of
health regulations and conform to them.

 Job Specification
 Should have either a degree or a diploma in culinary arts and kitchen administration.
 At least three years of experience in the position of a Sous Chef.
 The ability to communicate effectively.
 Must have the knowledge of various styles of cooking and supervisory practices, quality
of food, beverage and supplies and should also comply with health departmental
regulations.

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• Costing
Sr. No Item Quantity Rate Total cost

1. Chef coat 3 650 1950

3. Chef Pants 3 400 1200

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4. Head Wrap 2 75 150

5. Apron 2 100 200

6. Shoes 1 600 600

Total cost 4100

9. COMMIS

 Reports to: Sous Chef


 Job Description and Specification
 Prepares appetizing food for the guests under the supervision of the chef.
 Prepares both pre-plated and a la carte dishes.
 Mise-en-place for food production.
 Handles store pick up.
 Follows the standard recipe to control costs.
 Portions food suitably into the standard portions.
 Garnishes the food appropriately.
 Operates all the kitchen equipment correctly as per instructions.
 Serves food that is safe to eat.
 Responsible for maintaining clean workstations and surroundings.
 Makes requisitions for inventories.
 Work as a team member to maintain a pleasant and professional environment.
 Requires having culinary training for at least a year.
 At least one year’s experience.
 Must be able to control wastage
 Tries to cut costs.

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• Costing

Sr. No Item Quantity Rate Total cost

1. Chef coat 3 350 1050

3. Chef Pants 3 400 1200

4. Head Wrap 2 75 150

5. Apron 2 100 200

6. Shoes 1 550 550

Total cost 3150

10. UTILITY WORKER

 Reports to: Sous Chef


 Job Description
 Responsible for the cleanliness of all the dishware, pot wash and glassware.
 Accountable for the operation and maintenance of the cleaning equipment.
 Responsible for keeping the back area clean.
 Disinfecting the kitchen.
 Keeping the workstations clean and maintaining sanitary standards.
 Responsible for the upkeep of the outlet, all employee areas, as well as the guest areas.

 Job Specifications
 Should have preferably cleared matriculate.
 Minimum experience of six months is preferable.
 Must have a clean and hygienic experience.
 Must be punctual and accept responsibly.
 The restaurant utility worker shares the same responsibilities, job descriptions and
specifications.

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The utility workers would be given a jumpsuit and rubber boots which
adds up to Rs. 1250
2.7 MENU
A menu is a printed brochure or public display that shows the list of options for a diner to select. The
original menus that offered consumers choices were prepared on a small chalkboard; restaurants had no
menus in the modern sense. These establishments served dishes that were chosen by the chef or the
proprietors, and those who arrived, ate what the house was serving that day, as in contemporary
banquets. The contemporary menu first appeared in the second half of the eighteenth century. Here,
instead of eating what was being served from a common table, restaurants allowed diners to choose
from a list of unseen dishes, which were produced to order by the customer's selection allowing
customers to spend as much or as little money.

2.6.1 Menu Planning


The menu is primarily a selling aid. It is a communication tool as well, which informs customers of
what is available at what price and also inform workers of what is to be produced. Thus the success of
an organization largely depends upon the menu and more importantly the menu planning. Menu
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planning means to compose a series of dishes for a meal. It requires immense proficiency and a way of
logical thinking both from management‘s point of view and customer‘s point of view. Menu planning is
a complex task for which a planner has to start from scratch and involves two important elements-
firstly, knowing your guest and secondly knowing your operations. It is very important to identify what
kind of customers a restaurant is going to cater to, likings of the customers, what they want to eat or
drink, how much they are willing to spend, their profile, basically knowing who are the customers.
Knowing what kind of theme or music your restaurant will cater to, equipment for cooking and serving,
personnel and budget of the outlet is also equally important while planning the menu items. A well-
planned menu not only communicates the offering of the outlet but also conveys the ingredients used
and method of preparation of the food item. Planning for menu in advance ensures that all dishes listed
are popular and ingredients required for preparation are available easily. Planning menu is also
important from a business point of view where they help in generate profit to the organization. Thus
planning of menu also involves objectives such as achieving predetermined financial aim, marketing
policies, and production and quality standards.

2.7.2 Menu Engineering


Menu Engineering is the process of using a marketing assessment to help generate additional gross
profit from a restaurant‘s menu. Menu engineering, in simpler terms is described as the process of
methodical selecting, costing, pricing and evaluating of your menu items. Menu engineering provides
the manager with information about a menu item‘s profitability, as well as popularity, so that proactive
planning, recipe design and customer pricing decisions can be made. Menu engineering is not a
substitute for proper purchasing, food rotation, standard recipes or any of the other basic kitchen
controls that can negatively impact your costs. Rather it is a method of evaluating every item on your
menu relative to its present contribution to the bottom line, thereby allowing managers to recognize the
items they want to sell.
The menu engineering approach basically focuses on three important elements:
• Customer Demand – the overall number of customers served
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• Menu Mix – an analysis of customer preferences in menu item


• Contribution Margin – an analysis of contribution margin of each menu item
Over the years, the term menu engineering has become a buzzword within the industry which has come
to mean ―doing something/anything to improve menu performance‖, slang for the generic use of the
term. The main aim of menu engineering is to eliminate the items falling into Dog category and have as
many items as possible in the star category with support from few items of puzzle and plough horse
categories. If utilized carefully, menu engineering can be a powerful tool which points out a wide range
of strategies and tactics which can lead to large increases in the profitability of restaurant menus.

2.7.3 Menu Pricing


There are several methods to determine the price for the various items on a menu, but the basis of all
logical pricing decisions is cost. Unless a restaurant can cover its costs and provide a profit to the
owners, the business will fail. Although this is important, the final step required to determine price is to
look at the customer and what that customer may be willing to pay. At Beer Me!, the pricing strategy
that will be used will be by factoring methods. Since the outlet is new to the market and considering the
clientele reach and their income capacities, the items on the menu will be slightly over moderately
priced keeping in mind the prices that the competitors are demanding.

By doing so, the restaurant intends to attract some of that clientele to its profile by offering what the
others are not offering, only with more value and a complete new and different experience that they
would have never experienced before. Thus the items on the menu will be well worth their cost
considering the ambience and experience provided along with it and the customers will not feel like they
are being overpriced for the same.
The first method to the pricing approach for Beer Me! Is the Factoring method. To determine a menu
sales price, the raw food cost is multiplied by an established pricing factor. The first step would be
establishing the food cost percentage. Beer Me! Would ideally like to maintain a food cost of 40% so as
to achieve the desired profit levels. The second step is to divide 100 by the food cost percentage to get a
pricing factor. Thus, the pricing factor for Beer Me! Is 2.5. To apply this realistically, the actual raw
food cost of the menu item must be determined and then multiplied by the pricing factor.

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The formula is, Raw Food Cost* Pricing Factor= Menu Sales Price

The second method is of the competition pricing i.e. the entrepreneurs wanted to price their menu
according to their competitors so the food cost percentage for dishes differ, and the final pricing is done
on the basis of competition in the market.

2.7.4 Standard Purchase Specification for Beer Me!

• Product Name: Tomato


Name of Outlet Beer Me!
Intended use Burgers, sandwiches and Pasta
Availability: All year round
Unit KG
Price per unit Rs.6.5
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Weight Red
Grade A
Texture Firm, hard and ripe
Appearance No patches or blackening
Flavor Pungent
Hygiene No bruises or dirt
Cleaning Should be washed before use
Weight and size Minimum 45 gm
Will be delivered in polythene bags and then transferred, and
Packing and storing then stored in crates

• Product Name: Chicken


Name of Outlet Beer Me!
Intended use Pasta, Burgers and Sandwiches
Availability: All year round
Unit KG
Price per unit 90
Weight: 800-850 gm
Grade: A
Color: Pale Pink
Texture smooth with no blood patches and Consistency
Tender and soft meat. The meat should be firm; the flesh should
Consistence bounce back when pressed with a finger
No feather attached to the skin especially under the wings; skin
Hygiene without any bruises
Cleaning Excess fat must be removed
Weight & size Minimum 900 gm
Packing and storing Must be packed individually in polythene bags

• Product Name: Potato


Name of the Outlet Beer Me!
Intended use French fries, mashed potatoes,
Availability All year round
Unit KG

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Price per unit 8


Weight 45 gm
Grade A
Color Brown
Texture Firm
Hygiene No bruises, oblong shaped
Cleaning Should be washed before use
Weight & Size 45 gm
Packing and storing Will be delivered in polythene bags and then stored in crates

2.8 STANDARD RECIPE CARDS OF BEER ME !


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1. Fried Calamari
Name of the Dish Crisp Calamari (Batter fried calamari with sauce
and lemon wedges)

Cooking Time: 10-15 mines Method of cooking: Deep frying

Sr. No. Ingredients Quantity Unit Rate (Rs.) Amount


1. Oil 0.5 Later 85 42.5
2. Flour 0.1 Kg 23 2.3
3. Cornflour .05 Kg 32 1.6
4. Milk 0.25 Ltr 24.50 6.125
5. Salt 0.003 Kg 8 0.024
6. Black pepper 0.003 Kg 180 0.54
7. Fresh Calamari cut 0.5 Kg 580 240
into 1”
8. Beaten Eggs 02 No. 2.6 5.2
9. Bread crumbs 0.15 Kg 20 3
10. Parsley 0.002 Kg 30 0.06
Tartar Sauce ( Accompaniment)
11. Parsley 0.020 Kg 30 0.6
12. Lemon juice 0.01 Ltr 45 0.45
13. Mayonnaise 0.25 Kg 80 20
14. Gherkins 0.020 Kg 200 4
15. Salt 0.005 Kg 8 0.04
16. Black pepper 0.005 Kg 180 1
17. Lemon wedges 0.001 Kg 45 0.045

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Total food cost 327.84


Food cost 50.38 %
Selling price 650
FRIED CALAMARI- METHOD OF PREPARATION
• Measure the dry ingredients except the bread crumbs into a mixing bowl. Stir with a whisk.
• Add the milk and whisk until smooth.
• Remove with a fork letting excess batter drip off and coat lightly in the bread crumbs.
• Drop coated calamari into preheated 350 degree vegetable oil and fry until golden brown.
• Remove and drain on paper towels.
• Sprinkle parmesan cheese for garnishing.
• Serve with Tartar sauce and lemon wedges.

TARTAR SAUCE- METHOD OF PREPARATION


• In a small bowl, mix together the mayonnaise, sweet pickle relish, and minced onion.
• Stir in lemon juice.
• Add salt and pepper to taste.
• Put into the refrigerator for at least 1 hour before serving.

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1. Drunken Fries
Name of the Dish Drunken fries (Beer battered fries served crisp
with mayonnaise)

Cooking Time: 10-15 mins Method of cooking: Deep frying

Sr. No. Ingredients Quantity Unit Rate (Rs.) Amount


1. Potatoes 0.4 Kg 15 6
2. Oil 0.1 Ltr 85 8.5
3. Stout beer 0.12 Ltr 35 4.2
4. Flour 0.07 Ltr 23 1.61
5. Corn flour 0.02 Kg 32 0.64
6. Paprika 0.02 Kg 200 4
7. Bread crumbs 0.15 Kg 20 3
8. Salt 0.05 Kg 8 0.40
9. Black pepper 0.05 Kg 180 0.54
Mayonnaise ( Accompaniment)
11. Egg yolk 02 No. 2.6 5.2
12. Vinegar 0.01 Ltr 27 0.27
13. Pepper 0.005 Kg 180 0.04
14. Salt 0.005 Kg 8 0.04
15. Oil 0.05 Ltr 85 4.25
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Total food cost 48.11


Food cost 19.24 %
Selling price 250

FRIES- METHOD OF PREPARATION


• Mix together flour, corn starch, paprika, salt, and pepper.
• Pour Stout Beer in the breading mixture, and stir well. The mixture should be the consistency of
pancake batter.
• Peel and chop potatoes to resemble fresh cut fries.
• Cover them in the batter and fry in a deep fryer.
• When they reach a golden brown color, remove them and place on a pan with excess oil drip off
and cool a bit.
• Serve hot and crisp with mayonnaise.
MAYONNAISE- METHOD OF PREPARATION

• Place the egg yolks, 2tsp of the lemon juice and a pinch of salt in a bowl.
• Pour a few drops of the oil into the egg yolk mixture and whisk until well combined. Continue
adding oil and whisking (to avoid curdles)
• Once all the oil has been incorporated, taste the mixture and adjust the seasoning with juice, salt
and pepper if desired.

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1. Spicy chicken wings

Name of the Dish Spicy chicken wings served with blue cheese dip

Cooking Time: 10-15 mins Method of cooking: Deep frying

Sr. No. Ingredients Quantity Unit Rate (Rs.) Amount


1. Chicken wings 120 Kg 110 13.2
2. Tobacco sauce 0.05 Ltr 85 250
12.5 Butter 0.04 Kg 130 5.2
4. Paprika 0.01 Kg 200 2
5. Mustard powder 0.01 Kg 250 2.5
6. Refined oil 0.15 Ltr 85 12.75
7. Black pepper 0.01 Kg 200 2
8. Salt 0.01 Kg 8 0.08
Cheese Dip( Accompaniment)
11. Sour cream 0.12 Ltr 200 24

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12. Blue cheese 0.01 Kg 1200 12


13. Mayonnaise 0.01 Kg 80 0.08
14. White vinegar 0.01 Ltr 27 0.27
15. Clove garlic 0.01 Kg 440 4.4
16. Celery sticks 0.03 Kg 40 1.2
Total food cost 96.2
Food cost 34.98 %
Selling price 275

CHICKEN WINGS- METHOD OF PREPARATION


• Cut off wing tips (discard or reserve for other use such as making stock). Cut wings at the joint.
Put chicken wing pieces in a bowl. Set aside.
• Create a marinade by stirring together the melted butter, barbeque sauce, paprika, mustard
powder, salt, cayenne pepper, black pepper and little bit of tobacco.
• Marinade chicken wings for half an hour and deep fry.
• Serve with cheese dip and celery sticks as garnish.

BLUE CHEESE DIP- MTHOD OF PREPARATION

• Combine dip ingredients- sour cream, mayonnaise, blue cheese, vinegar and garlic- in a blender.
• Blend or pulse until smooth.
• Cover and chill up to a week.

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1. Brew Grilled Chicken

Name of the Dish Brew grilled chicken served with mash potatoes.

Cooking Time: 10-15 mins Method of cooking: Grilling

Sr. No. Ingredients Quantity Unit Rate (Rs.) Amount


1. Freshly brewed 0.33 Ltr 35 11.55
lager beer
2. Honey 0.01 Kg 370 3.7
12.5 Paprika 0.015 Kg 200 3
4. Cilantro 0.025 Kg 65 1.62
5. Salt 0.005 Kg 8 0.04
6. Black peeper .01 Kg 200 2

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7. Clove garlic .08 Kg 440 26.4


8. Onion 1 Kg 18 18
9. Oil 0.12 Ltr 85 10.2
10. Chicken breast 0.25 No 130 32.5
11. Bay leaves 0.005 No. 57.69 0.28
12. Lemon juice 0.01 Ltr 45/bottle 0.45
Sautéed Vegetables( Accompaniment)
13. Broccoli 0.05 Kg 38 1.9
14. Carrots 0.05 Kg 28 1.4
15. Green beans 0.05 Kg 42 2.1
16. Zucchini 0.05 Kg 34 1.7
17. Baby corn 0.05 Kg 80 4
18. Soya sauce 0.025 No. 30/bottle 0.75
19. Butter 0.02 Kg 130 2.6
20. Mozzarella cheese 0.025 Kg 120 3
Mushroom Sauce( Accompaniment)
21. Mushrooms 0.2 Kg 100 20
22. Milk 0.2 Ltr 24.50 23.
23. Butter 0.015 Kg 130 1.95
24. Flour 0.015 Kg 23 0.34
25. Olive oil 0.02 Ltr 250 5
26. Salt 0.01 Kg 8 0.08
27. Pepper (whole) 0.01 Kg 180 1.8
Mashed Potatoes Accompaniment)

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Food and Beverage Enterprising Planning

28. Cream 0.02 Ltr 190/pkt 3.8


29. Salt 0.005 Kg 8 0.04
30. Cheddar cheese 0.01 Kg 130 1.3
31. Crushed pepper 0.005 Kg 200 1
32. Butter 0.01 Kg 130 1.3
33. Potatoes 0.2 Kg 15 3
Total food cost 170.78
Food cost 32.53%
Selling price 525

BREW GRILLED CHICKEN- METHOD OF PREPARATION

• For the marinade combine beer, oil, mustard, paprika, honey, salt, lime juice, clove garlic-
minced and pepper in a large non- metal bowl; whisk until well combined.
• Stir in onion, garlic and bay leaves.
• Add chicken, turning to coat. Cover with plastic wrap.
• Marinate, refrigerated for 6 to 24 hours, turning chicken occasionally during marinade time.
• Preheat the grill for medium heat and lightly oil grate.
• Remove chicken from marinade and shake off excess; discard remaining marinade.
• Grill chicken until tender and juices run clear, about 7 minutes per side.

MUSHROOM SAUCE- METHOD OF PREPARATION

• Heat a little olive oil and melt butter in it.


• Add the mushrooms and sauté until the mushrooms are soft and dark in color.
• Remove the pan from the heat and set aside.
• Add the flour and pour in the milk.
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• Mix the ingredients together, stirring continuously.


• Return the pan to a medium heat and cook the sauce, stirring constantly till it thickens.
• Season with salt and pepper and cook for 5-8 minutes.
SAUTEED VEGETABLES- METHOD OF PREPARATION

• Blanch the vegetables- Broccoli, carrots, beans, zucchini and baby corn in water for 5-10 mins
on medium flame.
• Once the veggies are boiled pour cold water to normalize the temperature.
• Heat butter in a medium frying pan with a lid on over medium heat.
• Add vegetables and sauté for 1 minute.

1. Rib eye Steak

Name of the Dish Rib eye Steak served with French fries and pepper/
mushroom sauce.

Cooking Time: 20 mins Method of cooking: Grilling

Sr. No. Ingredients Quantity Unit Rate (Rs.) Amount


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Wadhwa S (H-15102); Simon T (H-15108)
Food and Beverage Enterprising Planning

1. Beef rib eye .25 Kg 220 55


2. Garlic paste 0.010 Kg 120 1.2
12.5 Ground cinnamon 0.005 Kg 33.75 0.16
4. Nutmeg powder 0.002 Kg 520 1.04
5. Crushed pepper 0.005 Kg 200 1
6. Mustard powder 0.010 Kg 35 12.75
7. Oil 0.005 Ltr 85 0.42
8. Butter 0.003 Kg 130 .39
9. Salt 0.005 Kg 8 0.4
10. Ginger 0.010 Kg 180 1.8
Pepper Sauce( Accompaniment)
11. Butter 0.025 Kg 130 3.25
12. Oil 0.01 Ltr 85 0.85
13. Cream 0.15 Ltr 190/pkt 0.08
14. Black pepper 0.010 Kg 200 2
15. Beef stock 0.35 Ltr 10 .35
16. Garlic paste 0.005 Kg 120 0.6
17. Salt 0.005 Kg 8 0.04
18. Carrot 0.01 Kg 28 0.28
19. Crushed pepper 0.005 Kg 200 1
20. Onion 0.02 Kg 18 0.36
21. Leek 0.015 Kg 75 1.12
22. Celery 0.015 Kg 85 1.27

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23. French fries- 50


frozen
Total food cost 123.05
Food cost 23.66 %
Selling price 520

RIBEYE STEAK- METHOD OF PREPARATION

• Prepare the marinade for the steaks with all the ingredients and leave it for 20-30 mins.
• Separate the bone and cut each rib eye steak 1” thick and marinate the steak.
• Braise the steaks with butter and grill the steaks 3-5 minutes per side or until desired doneness.
• Serve with hot pepper sauce and French fries.
PEPPER SAUCE- METHOD OF PREPARATION

• Sauté onion, leek, celery, carrots, peppercorns and minced garlic in oil. Add butter.
• Begin adding the stock bit by bit, whisking constantly so it doesn’t get lumpy. It will be quite
thin once all the stock is added.
• Add pepper and salt accordingly.
• Add cream and thicken to your liking on a low/medium flame.

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1. Vegetable Gratin

Name of the Dish Vegetable Gratin

Cooking Time: 30 mins Method of cooking: baking

Sr. No. Ingredients Quantity Unit Rate (Rs.) Amount


1. Zucchini 0.02 Kg 40 0.8
2. Broccoli 0.015 Kg 36 0.54
12.5 Mushrooms 0.03 Kg 80 2.4
4. Celery 0.01 Kg 85 0.85
5. Leek 0.01 Kg 75 0.75
6. Potatoes 0.05 Kg 15 0.75
7. Beans 0.015 Kg 36 0.54
8. Cream 0.03 Ltr 190 5.7
9. Milk 0.03 Ltr 24.50 0.73
10. Mozzarella cheese 0.1 Kg 190 19
11. Bread crumbs 0.01 Kg 20 0.2
12. Butter 0.002 Kg 130 0.26
13. Oil 0.003 Ltr 85 0.25
14. Mustard sauce 0.003 Kg 40 0.12
15. Nutmeg powder 0.002 Kg 520 1.04
16. Oregano 0.002 Kg 700 1.4
17. Salt 0.003 Kg 8 0.024
18. Black pepper 0.003 Kg 200 0.6

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Food and Beverage Enterprising Planning

19. Bread rolls 04 No. 200/pkt of 10 80


(outsourced)
Total food cost 115.94
Food cost 8.8 %
Selling price 400

VEGETABLE GRATIN- METHOD OF PREPARATION

• Cut the vegetables in cubes and batons. Blanch the vegetables until tender.
• Heat butter and oil in a pan. Drain the vegetables, then pat them dry with kitchen paper. Place in
a bowl, place them in the pan to sauté for 2 minutes.
• Add nutmeg, salt and pepper.
• Arrange the vegetables in a shallow baking dish. Mix the cream and milk together; pour the
mixture over the vegetables.
• Pour mustard sauce as a dressing.
• Grate the mozzarella cheese.
• Sprinkle oregano.
• Bake for 20 mins in the salamander. (350 degree Fahrenheit).
• Sprinkle the bread crumbs.
• Bake for about 5 minutes till the color turns brown.
• Serve hot garnished with parsley accompanied by bread rolls.

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2.9 INVENTORY CALCULATION

1. Cutlery
Sr. Item Quantity Quantity Total Rate/dozen Total cost Supplier
No. in use in stock quantity (Rs)
1. Dinner knives 100 50 150 180 2250
2. Dinner forks 100 50 150 180 2250
3. Dinner spoons 100 50 150 180 2250
4. Starter fork 180 60 240 120 2400
5. Starter knife 180 60 240 120 2400
6. Soup spoon 60 30 90 120 900
7. Tea spoon 50 20 70 60 350
8. Steak 11 4 15 40 600
knives(no.s)
9. Butter knife 30 30 60 225 1125
10. Demi tasse spoon 30 30 60 55 275
Total cost 14800

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2. Crockery

Sr. Item Quantity Quantity Total Rate/unit Total cost Supplier


No. in use in stock quantity (Rs)
1. 10” Dinner plate 80 40 120 110 13200
2. 8” Dessert plate 60 40 100 80 8000
3. 8” Starter plate 80 40 120 85 10200
4. Side plates 220 80 300 70 21000
5. Salad bowl 60 40 100 92 9200
6. Soup bowl 60 40 100 74 7400
7. Oval platter 50 30 80 175 1400
8. Tea cup 60 40 100 42 4200
9. Tea saucer 60 40 100 32 3200
10. Latte cups 50 30 80 42 2940
11. Espresso cups 40 20 60 32 1920
12. Tea pot 15 5 20 92 1840
13. Creamer 20 10 30 35 1050
14. Sugar bowl 20 10 30 28 840
15. Small dip bowls 60 30 90 18 1620
16. Bread basket 30 20 50 35 1750
Total cost 89760

3. Glassware
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Food and Beverage Enterprising Planning

Sr. Item Quantit Quantity Total Rate/u Total Supplie


No. y in use in stock quantit nit cost r
y
1 A.P Wine glasses 110 30 140 65 9100

2 High Ball 150 50 200 40 8000

3 Tom Collins 150 35 185 35 6475

4 Champagne Flute 45 15 60 72 4320

5 Beer Pilsner 100 40 140 78 10920

6 Martini glass 45 15 60 82 4920

7 Old Fashion glass 80 20 100 45 4500

8 Shot glasses 45 15 60 35 2100

9 Beer shoe glasses 80 20 100 120 12000

Total cost

4. Kitchen Equipment

Sr. Equipment Rate (Rs.) Quantity Cost (Rs.) Supplier


No.
1. Gas range 2 burners 14200 2 28400
2. Gas range 4 burners 27200 1 27200
3. Salamander 11200 1 11200
4. Deep fryer counter top 16200 1 16200
electric twin chamber

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5. Oven 39200 1 39200


6. Blender 3499 2 6998
7. Charcoal griller 38399 1 38399
8. Work station 6.3” 6420 1 6420
9. Work station 5.5” 5876 1 5876
10. Refrigerator 410 liters 28500 2 28500
11. Ice machine 21500 1 21500
12. Dishwasher 12000 2 21500
13. Pick up counter 17200 1 17200
14. Pot and pan rack 9800 3 29400
15. Storage rack 7400 2 14800
16. Under counter 37550 2 75100
refrigerator 2 door
17. Bain- Marie 13450 1 13450
18. Fly killer 4600 1 4600
19. Sink 3400 1 3400
20. Tissue roll holder 370 2 740
21 Utility trolley 2500 1 2500
22. Weighing scale 4850 1 48850
Total cost

5. Light Kitchen Equipment/ Operating Equipment

Sr. Equipment Rate (Rs.) Quantity Cost (Rs.) Supplier


126
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No.
1. Sautee pan 8” 420 5 2100
2. Sautee pan 6” 310 7 2170
3. Frying pan 350 2 700
4. Salad bowl 190 3 570
5. Whisks 25 4 100
6. Strainer conical 130 2 260
7. Can opener 55 2 110
8. Grater 35 2 70
9. Peeler 15 4 60
10. Soup strainer 70 2 140
11. Spatula 12 3 36
12. Flat spoon 22 3 66
13. Plastic jar 35 15 525
14. Chopping board 200 8 1600
(red/white/green)
15. Steel bowl 460 2 920
16. Knives 8” 170 15 2550
17. Pairing knives 85 8 680
18. Ladles 35 15 525
19. Perforated spoon 30 4 120
20 K.O.T grabber 945 2 1890
Total cost

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6. Bar Equipment

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Sr. Item Quantity Quantity Total Rate/un Total cost Supplier


No. in use in stock quantity it

1 Wine opener 8 4 12 Sponsor 0


ed

2 Wine bucket 5 2 7 Sponsor 0


ed

3 Bottle openers 15 5 20 6 120

4 Ice tongs 5 2 7 18 126

5 Ice buckets 8 4 12 Sponsor 0


ed

6 Lemon squeezer 1 2 3 32 96

7 Wine stopper 5 3 8 85 680

8 Wine chiller 1 0 1 Sponsor


ed

9 Straws (100) 1 10 11 20 220

10 Swizzle sticks 6’ 1 3 4 25 100


(100)

11 Coasters paper 2 10 12 45 540


(200)

12 Boston shaker 1 1 2 550 1100

13 Cutting board 1 1 2 250 500

14 Measures (30 ml 3 2 5 75 375


& 60 ml)

15 Under bar 1 0 1 38400 38400


refrigerator

16 Bar spoon 1 1 2 45 90

17 Muddler 1 1 2 50 100
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7. Electronic Equipments

Sr. No Item Rate Quantity Amount Brand


1 Computer 18000 1 18000 Assembled
2 Printer 4999 1 4999 H.P
3 Billing 28000 1 28000 Amtech Infosis
software
4 Credit card 0 2 0 ICICI, AMEX
machine
5 Phone 550 3 1650 Beetel
6 Cordless phone 3200 1 3200 Panasonic
7 Jukebox 48000 1 48000
Total cost 103849

8. Linen

Sr. Item Quantity Quantity Total Rate/unit Total Supplier


No. in use in stock cost
(Rs.)
1 White napkins 200 100 300 24 7200
2 Kitchen dusters 8 15 23 15 345
3 Glass dusters 5 10 15 18 270
4 Wiping cloth 4 4 8 25 200
5 Dusters 6 4 10 10 100

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Food and Beverage Enterprising Planning

Total cost 8115

9. Cleaning Supplies

Sr. Item Quantity Quantity Total Rate/unit Total Supplier


No. in use in stock cost
(Rs.)
1 Garbage bag No.s 18 245 263 28 7364
(25)
2 Sponge No.s 4 30 34 10 340
3 Nylon No.s 4 25 29 30 870
scourer
4 Vim Kg 2 30 32 14 448
powder(1
kg)
5 Scrubbing No.s 2 10 12 18 216
brush
6 Mop No.s 2 10 12 32 384
7 Squeeze No.s 2 10 12 42 504
8 Soap Ltr 1 11 12 33 396
solution
9 Harpic Btl 1 11 12 64 768
10 WC brush No.s 1 6 7 35 245
11 Collin spray Btl 3 20 23 45 1035
12 Liquid soap Ltr 1 11 12 55 660
13 Phenyl Btl 1 11 12 23 276
14 Garbage bin No.s 4 1 5 100 500
15 Dust pan No.s 1 4 5 22 110

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Food and Beverage Enterprising Planning

16 Floor brush No.s 1 4 5 28 140


17 Air freshener Btl 2 10 12 60 720
Total cost 14976

10. Printing and Stationary

Sr. Item Quantity Quantity Total Rate/unit Total Supplier


No. in use in stock cost
(Rs.)
1. Menu card 50 20 70 180 12600
2 Table mats(1000) 1 11 12 100 1200
2 Visiting card 200 200 400 1.55 620
3 Pen (pkt of 10) 3 15 18 35 630
4 Pencils (pkt -10) 3 15 18 20 360
4 Billing paper (1000 5 55 60 375 22500
sheets)
5 Reservation register 1 11 12 25 300
6 Bar register 1 11 12 25 200
7 Bill folder 25 5 30 65 1950
8 KOT pads 18 230 248 18 2880
9 Erasers 2 18 20 2 40
10 Staples 2 2 4 25 100
11 Stapler pins 2 50 52 8 516
12 Glue stick 2 10 12 12 120

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Food and Beverage Enterprising Planning

13 Printer cartridge 1 11 12 410 4920


14 Cello tape 2 8 10 5 50
15 Kangaroo punch 1 1 2 35 70
16 Carbon paper(100 1 6 7 90 630
sheets)
17 Scissors 2 2 4 15 60
20 Feedback form 1 9 10 450 4500
(1000)
21 A4 sheets (500) 1 4 5 150 750
22 Calculator 2 2 4 75 300
23 Telephone diary 1 1 2 35 70
24 Employee attendance 1 11 12 35 420
register
25 Box files 2 5 7 45 315
26 Ruler 2 3 5 15 75
27 Envelope (100) 1 5 6 150 900
28 Notepads 2 8 10 15 150
Total cost 57526

11. Catering Supplies

Sr. Item Quantity Quantity Total Rate/unit Total Supplier


No. in use in stock cost
(Rs.)
1 Bread basket (small) 40 10 50 65 3250

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Food and Beverage Enterprising Planning

2 Cruet set (wood) 40 10 50 45 2250


3 Toothpick holder 10 10 20 32 640
4 Salvers 16” non-skid 20 5 25 235 5875
5 Straw holder (steel) 5 5 10 35 350
6 Ashtray 20 10 30 55 1650
7 Water jugs (steel) 10 10 20 175 3500
8 Paper napkin (150 10 20 30 85 2550
pack)
9 Toothpicks (100 2 10 12 30 360
pack)
10 Birthday candle (24) 1 4 5 12 60
11 Match box (20 pack) 1 11 12 15 180
Total cost 20665

12. KITCHEN INVENTORY


• Vegetables

134
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Food and Beverage Enterprising Planning

Sr.N
o Ingredient Rate Unit Supplier
1 Ginger 40 Kgs
2 Garlic 75 Kgs
3 Red Chilies 122 Kgs
4 Big Onion 16 Kgs
5 Small Onion 18 Kgs
6 Lemon 45 Kgs
7 Parsley 30 Kgs
8 Tomatoes 16 Kgs
9 Mint Leaves 32 Kgs
10 Coriander Leaves 28 Kgs
11 Cauliflowers 38 Kgs
12 Methi Leaves 35 Kgs
13 Cucumber 14 Kgs
14 Spinach 18 Kgs
15 Yellow Capsicum 35 Kgs
16 Green Capsicum 25 Kgs
17 Red Capsicum 35 Kgs
18 Mushrooms 80 Kgs
19 Celery 85 Kgs
20 Potato 15 Kgs
21 Peas 44 Kgs
22 Carrot 28 Kgs
23 Green chilies 19 Kgs
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Food and Beverage Enterprising Planning

• Meat and Poultry


Sr.N
o Ingredients Rate Unit Supplier
1 Lamb 270 Kgs
2 Whole Chicken 190 Kgs
3 Boneless Chicken 115 Kgs Supplier:
Lazeez Meat,
4 Boneless Lamb 320 Kgs
Sector – 14,
5 Egg 2.6 Pcs Gurgaon.

6 Fish (Pomfret) 480 Kgs

136
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Food and Beverage Enterprising Planning

• Dairy products
Sr.
No Ingredient Rate Unit Supplier
1 Milk 24.50 Ltr
2 Milk Powder 195 Kgs
3 Clarified Butter 180 Kgs
4 Yogurt 80 Kgs
5 Cream 190 Pkt Supplier:
Ranna Dairy,
6 Butter 130 Kgs
Sector – 23,
7 Khoya 225 Kgs Gurgaon.

8 Cottage Cheese 150 Kgs

• Provisions
Sr.N
o Ingredient Rate Unit Supplier
Red Chili Powder (Kashmiri) 90 Pkt Supplier:
Aggrawal
Papaya Paste 41 Kgs
General
Mace Powder 800 Kgs Store, Sadar
Bazar,
Bengal Gram 38 Kgs Jacabpura,
Salt 8 Kgs Near Jain
Mandir,
Whole Dried Red Chilies 130 Kgs Gurgaon.
Coriander Powder 93 Kgs

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Food and Beverage Enterprising Planning

Ginger Paste 120 Pkt


Garlic Paste 120 Pkt
Black Pepper Powder 200 Kgs
Black Cardamom 450 Kgs
Cumin Seeds 160 Kgs
Stick Of Cinnamon (250
Gms) 33.75 Kgs
Cloves 335 Kgs
Nutmeg Powder 520 Kgs
Staff Rice 21 Kgs
Malt Vinegar 30 Kgs
Lemon Juice 45 Bot
Oil (Refined) 85 Ltr
Ground Turmeric Powder 150 Kgs
Sugar 35 Kgs
Staff Tea 157.14 Kgs
Coriander Seeds 55 Kgs
Green Cardamoms 1120 Kgs
Poppy Seeds 36 Pkt
Aniseeds 115 Kgs
Pistachios 720 Kgs
Black Pepper (Whole) 180 Kgs
White Pepper (Whole) 190 Kgs
Bread 15 Pkt

138
Wadhwa S (H-15102); Simon T (H-15108)
Food and Beverage Enterprising Planning

Fenugreek Seeds 104 Kgs


Sesame Seeds 50 Kgs
Mustard Seeds 48 Kgs
Watermelon Seeds 240 Kgs
Bay Leaves 57.69 Kgs
Custard Powder 44 Pkt
Caraway Seeds 124 Kgs
Cornflower 32 Kgs
Chaat Massala 113 Kgs
Cinnamon Powder 165 Kgs
Asafetida 50 Kgs
Ginger Dry 180 Kgs
Atta (Aashirwaad) 23 Kgs
Carom Seeds 120 Kgs
Powder Chill (Plain) 140 Kgs
Jaggery 65 Kgs
Maida 20.70 Kgs
Mustard Oil 86.53 Ltr
Almond 320 Kgs
Cashew Nut 260 Kgs
Dried Dates 600 Kgs
Raisins 115.55 Kgs

139
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Food and Beverage Enterprising Planning

• Fruits
Sr.No Ingredient Rate Unit Supplier
1 Apples 85 Kgs
2 Bananas 1.35 No.s
3 Grapes (Green) 55 Kgs
4 Grapes (Green) 50 Kgs
Supplier:
5 Strawberries 220 Kgs Subzi
6 Orange 35 Kgs Kendra,
7 Pineapple 22 Kgs Sadar Bazar,
Gurgaon.
8 Peaches 180 Kgs
9 Pommogranate 80 Kgs

• Liquor Inventory

Sr. No Item UoM(ml) Quantity in Rate per Total cost


stock (starting) bottle (Rs.)
1 Old Monk 750 4 156.8 627.2
2 Bacardi White 1000 4 1700 6800
3 Captain Morgan 1000 3 1845 5535
140
Wadhwa S (H-15102); Simon T (H-15108)
Food and Beverage Enterprising Planning

4 Pinky Vodka 750 2 2900 5800


5 Smirnoff 750 4 550 2200
6 Absolut 750 3 1300 3900
7 Grey goose 750 2 3000 6000
8 Sauza Blanco 700 3 1825 5475
9 Jose Cuervo 700 2 1945 3890
10 Bombay Sapphire 1000 2 2000 4000
11 Gordon’s 750 2 1186 2372
12 Remi Martin VSOP 1000 1 3500 3500
13 Henessey VSOP 1000 1 4256 4256
14 Glenfiddich 12 yrs 1000 1 4250 4250
15 Glenlivet 12 yrs 1000 1 3200 3200
16 Jack Daniels 750 1 3000 3000
17 Jim Beam 750 1 1310 1310
18 J&B Rare 750 1 1290 1290
19 JW Black label 1000 1 3859 3859
20 Chivas Regal 750 2 3000 6000
21 Teachers Highland 750 2 1165 2330
Cream
23 Vat 69 750 2 800 1600
24 Cointreau 1000 1 950 950
25 Blue Curacao 1000 1 420 420
26 Baileys Irish Cream 750 1 1967 1967

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Food and Beverage Enterprising Planning

27 Kahlua 1000 1 1400 1400


28 Triple sec 1000 2 420 840
29 Midori 750 1 900 900
30 Tia Maria 750 1 1680 1680
31 Frangelico 750 1 900 900
32 Chambord 750 1 1125 1125
33 Busnel calvados 750 1 1200 1200
34 Crème de Cacao 700 1 950 950
35 Crème de Cassis 700 1 450 450
36 Crème de Menthe 700 1 535 535
37 Drambuie 750 1 1175 1175
38 Pernod/ Ricard 700 1 1500 1500
39 Peach Schnapps 1000 1 350 350
40 Martini Bianco 1000 1 1100 1100
41 Malibu Rum 700 1 1400 1400
Total cost 100036.20

• Wine Inventory

Sr. Item UoM (ml) Quantity in Rate Total cost (rs.)


No. stock(starting)
1 B. Philippe Mouton 750 2 1200 2400
Cadet Blanc Wine
2 B. Philippe Mouton 750 2 1250 2500
Cadet Red Wine

142
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Food and Beverage Enterprising Planning

3 Revdale Rivergum 750 3 745 2235


Chardonnay Colombard
4 Revdale Rivergum Shiraz 750 3 745 2235
cabernet
6 Carlo Rossi Red wine 750 2 765 1530
7 Carlo Rossi White wine 750 2 765 1530
8 Harveys Bristol Cream 750 1 1625 1625
Sherry Wine
9 Moet & Chandon Brut 750 2 3900 7800
imp. Champagne
10 Moet & Chandon 750 1 5100 5100
NVBrut imp. Rose
Champagne
11. Sula Cabernet Shiraz 750 5 500 2500
12 Sula Mosaic Red Wine 750 4 360 1440
13 Sula Sauvignon Blanc 750 5 500 2500
14 Sula Blush Zinfandel 750 4 420 1680
15 Sula Late Harvest Chenin 750 3 430 1290
Blanc
Total cost 36365

• Non Alcoholic Beverages

Sr. Item Quantity Rate Supplier


No.
1 Coca cola can 330 ml 15 Shah general
stores, IFFCO
2 Diet cola can 330 ml 15
143
Wadhwa S (H-15102); Simon T (H-15108)
Food and Beverage Enterprising Planning

Chowk, Gurgaon.
3 Fanta 330 ml 15
4 Sprite 330 ml 15
5 Real orange 1 Ltr 52
6 Real Pineapple 1 Ltr 52
7 Real Mango 1 Ltr 52
8 Real Tomato 1 Ltr 52
9 Real Apple 1 Ltr 52
10 Real Guava 1 Ltr 52
11 Real Cranberry 1 Ltr 52
12 Red Bull 250 ml 60
13 Bacardi Breezers 270 ml 40
14 Schweppes Soda water 250 ml 17
13 Schweppes Tonic water 250 ml 17
14 Gingerale 500 ml 43
15 Kinley 1 Ltr 7.32
16 Qua 1 Ltr 12.50
17 Monin Banana 750 ml 420
18 Monin Black currant 750 ml 420
19 Monin Caramel 750 ml 420
20 Monin Chocolate 750 ml 420
21 Monin Green apple 750 ml 420
22 Monin Grenadine 750 ml 420
23 Monin Bubblegum 750 ml 420

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24 Monin Lychee 750 ml 420


25 Monin Mango 750 ml 420
26 Monin Strawberry 750 ml 420
27 Monin passion fruit 750 ml 420
28 Monin Peach 750 ml 420
29 Monin toffee nut 750 ml 420
30 Monin Watermelon 750 ml 420

2.10 THE BREWPUB

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A brewpub is a pub or restaurant that brews beer on the premises. Some brewpubs, such as those in
Germany, have been brewing traditionally on the premises for hundreds of years. The maximum amount
of beer such a brewery can produce and still be classed as a brewpub, varies by region, and is usually
5000L/day or 50HL/day. The beer is preservative free and a variety of them can be produced from the
same plant: lagers, ales, porters, stouts, fruit flavored etc. Fresh beer is produced before you and can be
immediately served perfectly chilled with a creamy foam head.

The Brewing Process

Work in the brewery is typically divided into 7 steps: Mashing, Lautering, Boiling, Fermenting,
Conditioning, Filtering, and Filling.

Mashing is the process of mixing milled grain (typically malted grain) with water, and heating this
mixture up with rests at certain temperatures to allow enzymes in the malt to break down the starch in
the grain into sugars, typically maltose.

Lautering is the separation of the extracts won during mashing from the spent grain to create wort. It is
achieved in either a lauter tun, a wide vessel with a false bottom, or a mash filter, a plate-and-frame
filter designed for this kind of separation. Lautering has two stages: first wort run-off, during which the
extract is separated in an undiluted state from the spent grains, and sparging, in which extract which
remains with the grains is rinsed off with hot water.

Boiling the wort ensures its sterility, and thus prevents infections. During the boil, hops are added,
which contribute their bitterness, aroma and flavor compounds to the beer. Along with the heat of the
boil, they cause proteins in the wort to coagulate and the pH of the wort to fall, and they inhibit the later
growth of certain bacteria. Finally, the vapors produced during the boil volatilize off-flavors,
including dimethyl sulfide precursors.

The boil must be conducted so that it is even and intense. The boil lasts between 60 and 120 minutes,
depending on its intensity, the hop addition schedule, and volume of wort the brewer expects to
evaporate.

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Basic Brewing Process .

1. Water + Malt + Hops + Heating energy = Wort

In the Brew-House vessels pure brewing water and light / dark malt are mixed together to give the mash.
In several temperature steps this mash is heated-up and finally lautered (filtered). The result is sugar-
containing “wort”, a sweet juice which is cooked together with hops to give the necessary bitterness and
aroma. This first part takes approx. 7-8 hours.

2. Wort + Yeast + Cooling energy = Beer


In the fermenting tanks brewer´s yeast (top-or bottom-fermenting depending on kind of beer) is added to
the cooled wort. Sugar is converted into both alcohol and CO2 (carbonic acid). After the ripening
process at low temperatures and high pressure the typical taste of beer is developed. Within approx. 3-4
weeks from the beginnning of brewing the beer is ready to be served.

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Ingredients used in Brewing

• Malt: For each recipe different kinds and portions of malt ( light to dark color ) are required and
should be on stock.
Required ~ 20 kg per 100 liters of beer
• Hops: For the right taste of bitterness and aroma bitter and aroma-hops are required.
Required ~ 100 - 200g per 100 liters of beer
• Brewer’s yeast : Depending on kind of beer (lager or ale type ) bottom- or top-fermenting yeasts
are necessary.
Required ~ 50 - 100g instant brewer's yeast per 100 liters of beer
• Cleaning agents : acidic-, alkaline and disinfectant agents as 2-5% water solutions
Supplier
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AMBICONS Pvt. Ltd.

Microbrewery Systems

Office in India: Gurgaon.

Capacity

The yearly capacity of our Brew house would be 5Hl .

1hL = 100 liter = 400 glasses at 25cl.)

(1bbl = 31 gallons = 1760 pints)

The outer finish for the brew house vessels would be stainless steel with copper bands as stainless steel
is cheap and easy to maintain and the copper bands give it a more traditional look.

The percentage of total volume of beer we will brew in lagers and ales would be 40% ales and 60%
lager.

One brew takes about 8 hours, therefore we would brew at least 6 times per week and we would be
brewing 5 different types of Beer- Stout Beer, Wheat Beer, and Lager strong Beer, Flavored Beer like
Cinnamon, Raspberry, Honey Wheat Beer and Pilsner.

2.10.1 Brewpub Equipment CIF and total cost:

Sr. No. Head Remarks INR Supplier


Brewery price 5 HL AMBICONS Pvt.
1. Brewpub copper cladding Basic Rs. 15,31,250 Ltd.
and mirror finish
Computerized
2. PLC Rs. 17,15,000
system
3. CIF 1-2 containers Rs. 2,20,500
would be charged

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at actual
4. Net CIF price Rs. 34,66,750
Custom and Custom
5. At actual Rs. 5,73,668
clearance
6. Local transportation At actual Rs. 15,000
Gross price of plant &
7. Rs. 40, 55, 418
machinery
Installation commissioning
8. Rs 4,45,000
and training
9. Net plant Price Rs. 45,00,418
Total Rs.79,67,168

CHAPTER 3: PRE- OPENING PHASE

In an upcoming market like Saket, where the competition is high in the restaurant business, efficient
marketing activities are very important. Pre- opening plays a very important role as it is very unlikely

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and moreover disheartening for the owners as well as the employees if no one hears about a new
restaurant in the market two or three weeks prior to its opening.
There are certain activities on the part of the marketing function that constantly need to be carried out in
order to continuously establish the presence of the restaurant and help attract more clientele. Regardless
of the size of the outlet, some advertising is necessary and usually worth the cost. It not only helps in
bringing the initial business, but also leaves a growing effect on the customers thereby creating a sense
of goodwill and creates an identity of the outlet.
The concept proposed by the researchers relies profoundly on the design, ambience and the menu for a
holistic experience intended to be provided. Beer me! Plans to follow a structured approach for creating
awareness about its concept and uniqueness. Beer Me! Would like to start its marketing campaign 4
weeks prior to the launch; prolonging it would only dilute the effects of this promotion.

3.1 Activities to be performed before the opening of Beer me!

60 days prior to the opening of Beer me!

The restaurant at this stage would be complete in terms of infrastructure, and would only be left with
finishing touches. At this time, some of the last minute operational and administrative features will be
dealt with. All the details that will be taken care of are as follows:

• Copyright the name of the restaurant.


• Selection of the suppliers and dealers of the restaurant.
• Establish the insurance papers of the construction.
• Place orders for the remaining equipment.
• Paying all the fees for the various licences in advance.
• Obtaining clearance from local governing bodies.
• Printing the menu cards and preparing for the promotional activities.
• Completion of the last stages of the interior design.

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• Hiring procedure will begin: the same will be advertised in the local newspaper (Times of India-
Delhi times; Hindustan times.)
• Security systems installed.
• Staff uniforms to be ordered accordingly.
• Small equipment, supplies and utilities to be ordered.
• Electricity, telephone gas and water deposits made.

45 days prior to the opening of Beer me!

The previous stage made sure that all the initial formalities were taken care of. In this second stage, the
owners would seek to strengthen their managerial skills towards the opening of the restaurant.

• Recruitment for the restaurant and kitchen staff will begin.


• New staff to undergo training.
• Fire and safety drills to be conducted.
• This shall be followed by distribution of uniforms to all recruited staff.
• Completion of paper work regarding the new restaurant.
• Informing and keeping in touch with the suppliers about the delivery date of food and beverage
inventory.
• A select guest list shall be made for the initial tasting of food.
• Finalize the list of invitees for the opening day of the restaurant.
• Marketing and grand opening plans to be initiated and budgeted.
• Formats for promotion cards, invitation cards, flyers and vouchers to be given for printing.
• An ad in the Upper crust magazine to be given.

30 days prior to the opening of Beer me!

• Air conditioning units to be installed.


• Finishing touches given to the interiors of the restaurant.
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• Pest control arrangements to be made.


• Staff hiring to be completed.
• Opening date to be planned.
• A selected few dishes from the menu will be selected for the menu tasting by a few selected
people. Also the portion size of those dishes will be decided.
• An ad in the Time Out Delhi to be placed.
• A signage to be put up in DLF mall Saket.
• First hoarding to be put up.

15 days prior to the opening of Beer me!

• Suppliers to be contacted and given Beer me! Opening dates.


• Invitation to the guest for the grand opening would be sent.
• The menu tasting of beer me! Would be conducted, and the feedback would be taken to make the
necessary changes, if need so.
• All registers, forms and bill books to be kept ready.
• All cleaning, maintenance check lists to be prepared.
• Order all operating supplies.
• Staff duty roster to be kept ready.
• Decorations for the launch to be initiated.
• Second hoarding to be put up.
• First Ad in both TOI and Mint.

7 days prior to the opening of Beer me!

• The third hoarding would be put up.


• Maintenance checks shall begin and the restaurant shall go under deep cleaning.
• Flyers to be given out to the public.
• Advertisement on the radio.
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• Advertisements n the leading paper in Saket and Delhi with appropriate inserts.

A day prior to the opening of Beer me!

• All final checks shall be made, and all equipments shall be checked for proper working order.
• Second Ad to be shown in both TOI and Mint.
• The entrepreneurs, restaurant manager and the head chef would conduct a meeting relating to the
grand opening of the launch day.
• The restaurant manager and the head chef would brief the entire crew of “Beer Me!”.
• Completion of the decoration of the restaurant for the launch day.
• Guests will be contacted to enquire about their arrival at the restaurant on the launch day.

Launch day of Beer me!

• Restaurant opens on 1 August, 2010.


• Third ad to be placed in both TOI and Mint.
• The restaurant will go through a final check for the grand event.
• Staff will be briefed for the last time about the opening day.
• Brewery souvenirs would be given to all the guests after the inauguration.
• A special menu having 3 starters, 2 salads and beer would be served.
• The inauguration will take place in the evening.

Post launch Activities

• Feedback will be collected and recommendations made by guests shall be implemented.


• An advertisement for the response to the launch to be placed in the local newspaper.
• Guest history will be recorded for the regular guest.

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• After the opening of the restaurant, specific promotional activity would continue for a certain
interval of time.

3.2 MARKETING STRATEGIES AND LAUNCH ACTIVITIES

• Signage poster

A signage poster will be put up outside the restaurant saying – “Beer Me!” – for a period of 30 days
prior to the opening of the restaurant at the total cost of Rs. 34500.

BEER ME !
Opening shortly…
Can you “beer me” now? •
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• Advertisement by Flyers

Flyers are extremely versatile. You can use them for almost anything. They could be used as a quick
way to advertise the opening of the restaurant and its promotion. These kinds of flyers are designed to
grab attention when placed among lots of competition for the viewer’s eye. They also subtly convey the
character, design, ambience and cuisine of the restaurant. Flyers can be a great sales tool, if presented to
the right people in the right way. Hence the owners would be sending out flyers to the residential and
market area in and around Saket.

The number of flyers to be printed are 2500; each costing Rs. 7. These flyers would be given to the
newspapers to be given in the morning. Also, some of the flyers would be given to prominent shops and
bookstores to be given out to their customers. This would be a mutual marketing alliance, as Beer Me!
Would do the same for them.

• Advertisement in Newspapers and Magazines

The owners of the restaurant would be placing three advertisements of the restaurant in Times of India
and the Mint Newspaper. There are also advertisements placed in the Upper Crust Magazine and Time
Out Delhi. The ads in the magazine would showcase the name of the restaurant for a longer duration of
time, at least three to four weeks prior to the opening of Beer Me!. The first ad in the newspaper would
come out 15 days prior to the restaurant opening, the second one would come our one week prior to the
opening and the third one, the day the restaurant is opening.

• Advertisement on Twitter and Facebook

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The social networking sites Twitter and Facebook can be used for the advertising of Beer Me! As there
is no cost involved in it and it attracts a great mass of young crowd in that area. These social networking
sites are great means of advertising and are very effective; hence the owners would like to use such a
public portal for further promotion of their restaurant. A flyer would be uploaded on both the sites
which would create enough curiosity among the users on these sites.

• Advertisement on Radio

The owners also wish to place an audio advertisement (10 seconds) in Radio Mirchi 98.3 FM and for a
period of one week as to generate enough hype and curiosity among the people of Delhi. The audio ads
would be played in a certain time slot so as to attract the right clientele for the restaurant. The radio
channel has a wide base of listeners; hence these ads would reach a large number of prospect customers
for the restaurant.

• Hoardings

 First hoarding to be put up 30 days prior to opening of the restaurant

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The first hoarding would be a mystery banner so as to create curiosity among the people about the
restaurant.

 Second hoarding to be put up 15 days prior to the opening.


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Beer as genuine as
the monalisa…

Only at
BEER ME !

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 Third hoarding to be put up 7 days prior to the opening.

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BEer yourself at
BEER ME !
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3.3 COST OF THE MARKETING STRATEGY

Sr. no Method of advertisement Cost incurred

1 Flyers Each flyer cost Rs. 7. Therefore total cost


for 2500 flyers is Rs. 17500. Also Rs. 1200
were given to the newspaper distributor

2 Radio Mirchi 98.3 FM Rs 1100 per 10 sec audio ad, 20 audio ads
per day. For a week cost incurred Rs.
154000

3 Facebook and Twitter No cost incurred

4 Signage in the mall Rs. 34500

5 Upper Crust Magazine One colour Ad for Rs. 13800

6 Times of India Three 20 sq. cm Ad, each sq cm is priced at


Rs. 1650. therefore the total cost incurred is
33000 x 3 = Rs. 99000

7 Hindustan Times Three 10 sq. cm Ad, each sq. cm is priced


at Rs. 1400. therefore total cost incurred is
14000 x 3 = Rs. 42000

8 Time Out Delhi One half page Ad in the magazine would


cost Rs. 7900.

9 Hoardings Three Ads for a period of one week each.


Cost per hoarding is Rs. 82700. Therefore
total cost is Rs. 248100.

10 Invitations for the launch party Rs. 11 each. Therefore total cost incurred is
75 x 11 = Rs. 825
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11 Souvenirs for the invited guest Rs. 40 each. Therefore total cost is 75 x 40
= Rs. 3000

12 Launch party Food: the menu would consist of 4 starters


of 40 portions each, which would be
circulated throughout the party. The total
food cost for the same would be Rs. 8200.

Beverage: there would be wheat beer and


flavored beer for everyone which would
incur a cost of Rs. 12682

Total cost Rs. 642707

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CHAPTER 4: FINANCIAL PHASE

4.1 STATEMENT OF AIM AND OBJECTIVES

Aim

The aim of this chapter is to study the forecasted revenue and expenditure for BEER ME! In order to
analyze its feasibility as a semi formal restaurant in the market.

Objective

• To forecast the sales revenue for BEER ME! in the next three years
• To calculate the substantial cost of expenses in running a restaurant.
• To generate an income statement for the restaurant.
• Calculating the net profit of BEER ME!.
• Create a balance sheet for three consecutive years.
• Calculate the payback period for the restaurant.
• Determining and commenting on the feasibility of the project.

Financial phase is the key determinant of the resources required by an organization to initiate its
operations i.e. to start the restaurant. In this phase the total capital investment and operational costs will
be analyzed to determine the viability of the concept. The advantage of financial planning is that it
forces management to take account of possible deviations from the company’s anticipated path and be
prepared for the future course of action.

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4.1.1 Total Initial Expenses

CAPITAL EXPENDITURE
PARTICULARS COST AMOUNT
BREWERY SETUP 15000000
WALL COVERING AND 270150
PAINTING
FLOORING 294790
FURNITURE 442775
FIXTURES/LIGHTING 92310
HEAVY KITCHEN EQUIPMENTS 461433
CROCKERY 88010
CUTLERY 14800
BAR ACCESSORIES 53147
GLASSWARE 62335
ELECTRONIC 122849
ITEMS(INCLUDING THE MUSIC
SYSTEM)
LAWS AND LICENSING 880150 17782749
OPERATING EXPENSES
KITCHEN LIGHT EQUIPMENTS 15192
RENT DEPOSIT 896000
STAFF UNIFORM 90670

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CLEANING SUPPLIES 14976


CATERING SUPPLY 20885
PRINTING AND STATIONARY 57526
PRE OPENING EXPENSES 642707
OPENING WINE AND LIQUOR 136401 1874357
STOCK
TOTAL 19657106

*HVAC and fire equipments have not been taken into consideration .the rent is inclusive of the
installation of the fire equipments and the place is centrally air-conditioned.

TOTAL CAPITAL EXPENDITURE AMOUNT

LOAN (60%) 11794264

OWNERS INVESTMENT (40%) 7862842

4.2 SALES FORECAST:

The researchers during their marketing phase found out that market is ready for such a concept and
analyzed the requirement of covers to be 100, which does not include the bar stools available at BEER
ME! as people tend to eat drink more sitting at bar rather than eating. The marketing phase analyzed that
competitors in the vicinity are able to do fair amount of turnover, owing to which the performance ratio
of the restaurant resulted to 1.09 Taking the performance ratio as the worst case scenario, the restaurant
covers done in a day has been calculated using the cover turnover.
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4.2.1 Sales Forecast for the Year 2009-2010

SALES PER MONTH= NO. OF COVERS DONE IN A DAY* APC* NO. OF


OPERATIONAL DAYS IN A MONTH

SALES FOR THE YEAR 2011-2012


MONTHS NO. OF NO OF NO. OF TURNOVE AP TOTAL
OPERATIN COVERS COVERS R C SALES
G DAYS DONE IN A
DAY
APRIL 29 100 108 1.08 1000 3132000
MAY 30 100 112 1.12 1000 3360000
JUNE 29 100 120 1.2 1000 3480000
JULY 29 100 115 1.15 1000 3335000
AUGUST 30 100 124 1.24 1000 3720000
SEPTEMBER 29 100 102 1.02 1000 2958000
OCTOBER 28 100 105 1.05 1000 2940000
NOVEMBER 30 100 136 1.36 1000 4080000
DECEMBER 31 100 150 1.50 1000 4650000
JANUARY 29 100 135 1.35 1000 3915000
FEBRUARY 28 100 110 1.1 1000 3080000
MARCH 28 102 102 1.02 1000 2856000
1419 41506000

The Average Monthly Income (Rs.): 34,58,833


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Total Sales for the Year (Rs.): 415, 06,000

Total No. Of Covers: 1419

The average number of covers for the month of April has been taken slightly considering that it is the
very first month of operations for BEER ME! Thus it will gain popularity slowly and steadily as the time
goes. The average covers increases for the month of May as the restaurant will start getting hold in the
market and name will be coming up in the market list for restaurants. For the months of June, July and
August the covers done per day increases on an average even though they are the hottest months for the
city due to the summer vacations going in the city. Thus, it will attract more family crowd for dinner and
youth during afternoon period.

The sales for September and October goes comparatively down as it is the period of Hindu rituals
commonly known as ‘Navratras’ and ‘Shrads’ where people tend to give up on alcohol and non-
vegetarian food. Also the Diwali celebrations will begin and people will become busier with distributing
gifts and will tend to be more at home.

The sales rise up again during the months of November, December and January as the Festive season
begins with major periods for marriages. Christmas and New Year celebrations will bring increased
revenue to the business. The sale will be see a drop again for March as it is the last month of the
financial year and people are generally more busy with their office work. Also, most of the final
examinations for students are held during this month which reduces the probability for attracting
families to the restaurant.

For calculating the operating days for the particular month, the owners have considered all the national
and public holidays especially those where serving of alcohol is forbidden for the day. The festivals
have also been taken in consideration such as Diwali, New Year Day where restaurant may not operate

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on all the meal periods. Thus, to this consideration and calculating the total days as per the table shown
above, BEER ME! will be operating for 350 days in the whole year.

4.3 FIVE YEAR SALES FORECAST

The entrepreneurs have assumed an increase of 5% in total sales for the second year over the first year
and increase of 8% in third year over the second year, 13% in the fourth year over the third year and
15% in the fifth year over the fourth year. The increase is predicted due to the fact that by now the
restaurant will have had its hold in the market and set clientele who would be visiting very often and
getting more revenue to the outlet. The restaurant will have a name in the market and thus will be visited
by more guests, thus increasing the sales for the restaurant

SALES FORECAST FOR 2012-2013


PREVIOUS INCREASE % INCREASE TOTAL (Rs.)
YEAR SALES (Rs.)
41506000 5 1245180 43581300

SALES FORECAST FOR 2013-2014


PREVIOUS INCREASE % INCREASE TOTAL (Rs.)
YEAR SALES (Rs.)
43581300 8 2473679 47067804

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SALES FORECAST FOR 2014-2015


PREVIOUS INCREASE % INCREASE TOTAL (Rs.)
YEAR SALES (Rs.)
47067804 13 53186618.52

SALES FORECAST FOR 2014-2015


PREVIOUS INCREASE % INCREASE TOTAL (Rs.)
YEAR SALES (Rs.)
53186618.52 15 5332782 61164611.3

Assumptions

• The restaurant has been taken operating for 350 days as the calculation shown above
• The Food Cost Percentage has been taken as 35%
• Rent is taken as Rs.896, 000 as per the calculation shown in operational phase. As per contract
the rent increases @ 10% every 5 years.
• Salaries are not taken as percentage amount and are calculated in the operational phase as per
industry average. Salaries are increasing every year @ 5% p.a.
• Breakage for Cutlery, Crockery and Glassware are assumed at 5% of the cost.
• Heat, Lighting and Power has been calculated as 15% on the total sales.
• Water Usage is taken as 5% of total sales.
• The worth of uniforms is increased by 2% year keeping in consideration factors like repair,
stitching and recruitment of new employees.
• Maintenance cost is fixed as Rs.20/ sq. foot as per the agreement.
• Advertisement cost for the initial year is Rs.6150000 it decreases by 10% every year.

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• The fixed assets have been insured for the restaurant and the insurance fee is assumed to be 1%
of the total assets per year.
• Miscellaneous expenses are taken as 6% of the total sales for all the first years
• Laundry Costs are assumed to be 0.5% of the total sales.
• Tax percentage as per law is 33% on income before tax.
• Telephone expenses are assumed as 5% of the total revenue.

4.3.1 Sourcing Of Funds

Initial Cash Outflow: Rs. 19657106

Debt Financing: Rs.11794264

Owners Equity: Rs.7862842

The loan has been taken for Rs.11794264 @ 15% which will be paid back by four years. Keeping the
loan amount in consideration it is interpreted that spreading the loan over five years will help the owners
to pay the loan evenly thus generating profits simultaneously.

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LOAN AMOUNT 11794264

ANNUAL INTEREST RATE 15%

LENGTH OF LOAN IN YEARS 4

NUMBER OF PAYMENTS PER YEAR 12

TOTAL NUMBER OF INSTALLMENTS 48

PAYMENT PER INSTALLMENT 328243.19

4.4 INCOME STATEMENT FOR THE YEAR 2011-2015

PARTICULARS YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5


SALES 41506000 43581300 47067804 53186618.5 61164611.3
2
FOOD COST(35) 14527100.0 15253455.0 16473731.4 18615316.4 21407613.95
0 0 0 8
GROSS PROFIT 26978900.0 28327845.0 30594072.6 34571302.0 39756997.34

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0 0 0 4
DIRECT EXPENSES
RENT 896000.00 896000.00 896000.00 896000.00 896000.00
SALARIES 300000 315000.00 330750.00 347287.50 364651.88
INDIRECT EXPENSES
F&B BREAKAGE 8257.25 8257.25 8257.25 8257.25 8257.25
STAFF UNIFORM 90670.00 92483.4 94333.068 96219.73 98144.12
HPL (15%) 6225900.00 6537195.00 7060170.60 7977992.78 9174691.69
LIGHT KITCHEN 15192 15192 15192 15192 15192
EQUIPMENTS
CLEANING SUPPLIES 14976 14976 14976 14976 14976
WATER 2075300 2179065.00 2353390.20 2659330.93 3058230.56
MISCELLANEOUS 2905420.00 3050691.00 3294746.28 3723063.30 4281522.79
EXPENSES
LAWS AND 880150.00 44000.00 44000.00 44000.00 44000.00
LICENSES
PRINTING AND 57526 57526 57526 57526 57526
STATIONARY
CATERING SUPPLY 20885.00 21929.25 23025.71 24177.00 25385.85
TELEPHONE 2075300.00 2179065.00 2353390.20 2659330.93 3058230.56
REPAIR AND 89600.00 89600.00 89600.00 89600.00 89600.00
MAINTENANCE
ADVERTISEMENT 615000.00 553500.00 498150.00 448335.00 403501.50
INTEREST ON LOAN 118221.00 84458.00 45269.00 3835.38 0.00
INSURANCE 166843.07 166843.07 166843.07 166843.07 166843.07
LAUNDRY 4533.50 4624.17 4716.65 4810.99 4907.21
TOTAL EXPENSES 16559773.8 16310405.1 17350336.0 19236777.8 21761660.49
2 4 3 4
NET PROFIT BEFORE 10419126.1 12017439.8 13243736.5 15334524.2 17995336.86
TAX 8 6 7 0
TAX 3438311.64 3965755.15 4370433.07 5060392.99 5938461.16
NET PROFIT AFTER 6980814.54 8051684.71 8873303.50 10274131.2 12056875.69
TAX 1
NET PROFIT 16.82 18.48 18.85 19.32 19.71
PERCENTAGE

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Assumptions

• Owner’s capital is taken to be Rs.7862842.


• To match the initial investment cost, researchers have taken a loan from ICICI bank of
Rs.11794264 @ 15% p.a. payable in three years.
• Net profit from the income statement has been taken into consideration for all the balance sheets
on the liabilities side and subtracted from the equity.
• Drawings are taken to be 20 percent of the net capital for all the years.
• To match the initial investment cost, researchers have taken a loan from ICICI bank of
Rs.11794264 @ 15% p.a. payable in four years.
• Loan outstanding is divided equally in the four years and written off in the fourth year.
• For inventory, it is assumed that at any given point of time, the restaurant is having minimum of
five months of wine and liquor inventory calculated in operational phase. So inventory is
calculated as three months for wine and liquor and for 2 days of food inventory as all the
suppliers are local and items are perishable. So supplies come every alternate day
• Cash in hand: 20% of the total current assets
• Cash at bank: 30% of the total current assets

4.4.1 Balance Sheet for the Year 2011-2012

LIABILITIES AMOUNT TOTAL ASSETS AMOUNT TOTAL

OWNERS
EQUITY 7862842 Rent Deposit 896000

6980814.54
(+)NET PROFIT 1

Facility Planning And


Design 1100025

14843656.5
NET CAPITAL 4

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(-)DRAWINGS 2968731.30
20% 8 Brewery 15000000

LOAN 20720623.2
OUTSTANDING 8845698 3

Electronics 122849

Kitchen Equipments 461433

F&B Equipments 165145

(-)Breakage 8257.25

17737194.75

Current Assets

Cash 596685.6965

Bank 895028.5447

Inventory 1491714.241

Total Current Assets 2983428.482

20720623.2
TOTAL 3 TOTAL 20720623.23

4.4.2 Balance Sheet for the Year 2012-2013

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Wadhwa S (H-15102); Simon T (H-15108)
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AMOUN
LIABILITIES T TOTAL ASSETS AMOUNT TOTAL

OWNERS
EQUITY 11874925.23 Rent Deposit 896000

(+)NET PROFIT 8051684.71

Facility Planning And


Design 1100025

NET CAPITAL 19926609.94

(-)DRAWINGS
20% 3985321.988 Brewery 15000000

LOAN
OUTSTANDING 5897132 24786986

Electronics 122849

Kitchen Equipments 461433

F&B Equipments 165145

(-)Breakage 8257.25

17737195

Current Assets

Cash 1409958.24

Bank 2114937.36

Inventory 3524895.6

Total Current Assets 7049791.2

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Wadhwa S (H-15102); Simon T (H-15108)
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4.4.3 Balance Sheet for the Year 2013-2014

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Wadhwa S (H-15102); Simon T (H-15108)
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LIABILITIES AMOUNT TOTAL ASSETS AMOUNT TOTAL

OWNERS
EQUITY 15941287.9 Rent Deposit 896000

(+)NET PROFIT 8873303.5

Facility Planning
And Design 1100025

NET CAPITAL 24814591.4

(-)DRAWINGS
20% 4962918.28 Brewery 15000000

LOAN
OUTSTANDING 2948566 28697371.1

Electronics 122849

Kitchen Equipments 461433

F&B Equipments 165145

(-)Breakage 8257.25

17737194.75

Current Assets

Cash 2192035.274

Bank 3288052.911

Inventory 5480088.185

Total Current Assets 10960176.37

TOTAL 28697371.12 TOTAL 28697371.12


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Wadhwa S (H-15102); Simon T (H-15108)
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4.4.4 Balance Sheet for the Year 2014-2015

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Wadhwa S (H-15102); Simon T (H-15108)
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LIABILITIES AMOUNT TOTAL ASSETS AMOUNT TOTAL

OWNERS 1985167
Rent Deposit 896000

(+)NET PROFIT 10274131.21

Facility Planning
And Design 1100025

NET CAPITAL 30125804.33

(-)DRAWINGS
20% 6025160.866 Brewery 15000000

LOAN 24100643.4
OUTSTANDING 0 6

Electronics 122849

Kitchen Equipments 461433

F&B Equipments 165145

(-)Breakage 8257.25

17737195

Current Assets

Cash 1272689.742

Bank 1909034.613

Inventory 3181724.355

Total Current Assets 6363448.71

TOTAL 24100643.46 TOTAL 24100643.46


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Wadhwa S (H-15102); Simon T (H-15108)
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4.5 PAYBACK PERIOD


CASH CAH INFLOW CASH INFLOW CASH INFLOW
PARTICULAR OUTFLOW (YEAR1) (YEAR 2) (YEAR 3)

INITIAL
CAPITAL
EXPENDITURE -19657106

NET PROFIT 6980814.54 8051684.71 8873303.50

TOTAL MOUNT 19657106 -12676291.46 -4624606.25 4248697.25

The payback period refers to the period of time the owners are able to recover the investment made by them
initially. It is calculated by dividing the initial investment by the average of net profit of three years

PAYBACK PERIOD: 13 months (1 YEAR 1 MONTH)

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Wadhwa S (H-15102); Simon T (H-15108)
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4.6 Conclusion

The main aim of the financial phase is to forecast the sales revenue and the payback period of the
restaurant in order to determine the feasibility of the project. The initial step to fulfill the objectives was
to calculate the investment made by the entrepreneurs which would help identify the rate of return i.e.
the rate of growth a project is expected to generate. The IRR is estimated with the help of an income
statement for five years and balance sheets(from the year 2011-2015) as mentioned, the growth rate of
the sales for five years is assumed to be 5% in year 1, 8% in the second year, 13% in the third year and
15% in the final year. The capital structure consists of 60% loan and 40% invested by the owners. The
loan has been written off in the span of four years at the rate of 15%. The total loan amount to be paid
and the EMI have been taken into consideration in both the income statement as well as the balance
sheet. The profit percentages at the end of the income statements signify the amount of the profit the
business will be making each year in order to reach which in turn helps to estimate the internal rate of
return=33%. The balance sheets are made at the end of the year to estimate the amount of cash the
owners will be left with for further expansion and personal use after considering all the expenses and
profits made within the span of the initial five years. The payback period has been forecasted as 1 year
and 1 month which signifies a rapid growth further implying a high profitability, efficiency and
feasibility.

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CHAPTER 5: BIBLIOGRAPHY

Articles:
• Anderson A.D., (2008), “What‟s New in Specialty Beers; A Celebrity Chef Moves the
„Brew Pub‟ Upscale”, The New York Times.

• Annette F., (2007), “Growth Strategies in Alcoholic Drinks: Emerging Trends in Beer,
Wine and Spirits”, Business Insights Ltd.

• Huddleston N., (2005), “The Alcoholic Drinks Market Outlook to 2008: Future Innovations
and Profit Opportunities in Beer, Wine and Spirits”, Business Insights Ltd.

• Milton J., and Goodman J., (2004), “Marketing Food and Drinks to Adults”, Business
Insights Ltd., Vol. 1.

• Milton J., and Goodman J., (2004), “Marketing Food and Drinks to Adults”, Business Insights
Ltd., Vol. 2.

Books:
• Hampson T., et al., (2008), “The Beer Book”, London, Dorling Kindersley Ltd.

• Calagione S., (2006), “Extreme Brewing: An Enthusiast‟s Guide to Brewing Craft Beer at
Home”, Massachusetts, Quarry Books.

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Wadhwa S (H-15102); Simon T (H-15108)
Food and Beverage Enterprising Planning

• Line D., (2002), “Brewing Beers like Those You Buy”, Dorset, Special Interest Model Books
Ltd.

• Jackson R., and Kenning D., (2008), “The Complete Guide to Beer”, Bath, Parragon Books
Ltd.

• Jackson M., (1998), “Beer”, London, Dorling Kindersley Ltd.

• Yenne B., (1994), “Beers of the World”, New Jersey, Chartwell Books Inc.

• Verhoef B., (1997), “The Complete Encyclopedia of Beer: A Comprehensive Directory of


the Beers of the World”, The Netherlands, Rebo International.

• Jackson R., and Kenning D., (2008), “The Complete Guide to Beer”, Bath,Parragon Books Ltd.

Websites:
• http://en.wikipedia.org/wiki/Microbrewery
• http://www.barleyandhops.net
• http://beeradvocate.com/acbf/
• http://beeradvocate.com/beer/style
• http://www.beerinfo.com/i_am_a_craft_brewer.htm
• http://www.beerintheevening.com/pubs/s/45/4559/Blue_Anchor/Helston
• http://www.beertown.org/craftbrewing/statistics.html
• http://www.fosters.com.au/enjoy/beer/food_and_beer.htm
• http://www.futurebars.com
• http://www.globalissues.org/article/768/global-financial-crisis
• http://www.indiamike.com/india/delhi-f19/micro-brew-pub-t71502/
• http://www.savorcraftbeer.com
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• http://www.socyberty.com/Lifestyle-Choices/Top-3-Worlds-Most-Expensive-Beer.40307
• http://www.spingoales.com
• http://store.businessmonitor.com/countries/india/
• http://www.tapbrewpub.com/Menu.HTM
• http://www.unctad.org/Templates/WebFlyer.asp?intItemID=4579&lang=1

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