Documente Academic
Documente Profesional
Documente Cultură
Hotel Management”
University of Huddersfield,
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Wadhwa S (H-15102); Simon T (H-15108)
Food and Beverage Enterprising Planning
United Kingdom.
2007-2011
DISCLAIMER
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Wadhwa S (H-15102); Simon T (H-15108)
Food and Beverage Enterprising Planning
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.
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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BIBLIOGRAPHY…………………………………………………………………………………167
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 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.
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.
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provides an opportunity to the city to develop its infrastructure. It’s the largest metropolitan city of
North India.
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.
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.
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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
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".
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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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:
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• Café Morrisson
• Mocha Bar
• Howzzatt
Theme: Rock
Target Market: Mostly youngsters [school and college going] and working class
Average Covers
Done Per Day: 145
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
Location / Address: E-12, 1st Floor, Main Market, South Extension Part-2, Delhi-110049
Service: Casual
Target Market: Mostly youngsters [school and college going] and working class
F & B Production: 10
Average Covers
Done Per Day: 85
SWOT ANALYSIS
STRENGTHS
• 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
Contact: 01242700000
Property Status: Leased
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Average Covers
Done Per Day: 200
Fastest Selling Dish: Nürnberger sausages served with sauerkraut, Munchnerteller (cold cuts served
with sausages, cheese and pretzels).
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
Location / Address: Galaxy Hotel, NH-8, Sector 15, Part II, Gurgaon 122001
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Property Status:
Time of Operations: 12:00 PM to Midnight
Cuisine: Multi-cuisine
Service: Casual.
Theme: Serves fresh gourmet beer & piping hot cricket.
Average Covers
Done Per Day: 170
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 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
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
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.
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.
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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.
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.
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.
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.
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
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.
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.
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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.
Graph 1.2 (No. of cover in the restaurant and Marketshare of the restaurant.)
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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.
Hence using the above formulae, the fair share and market share of the competitors has been analyzed as
following:
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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.
i.e when there are 390 covers, the Performance ratio is 4.25
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→ 20.41 %
Total number of covers done per day by the competetitors multiplied by the market share % of Beer Me!
:
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:
= 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:
= 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.
= 17.57 / 35.89
= 0.48
Similarly, for the other competetitors, the new performance ratio was calculated to be:
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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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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• The concept
• Legal Formalities
• 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 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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2.2.1 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.
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.
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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.
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.
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.
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.
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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 :
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 :
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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.
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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:
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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.
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• Costing
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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The walls with the unfinished brick look and posters would look as follows :
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• Costing
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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.
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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)
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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.
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• Costing
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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
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Address : 301-302,
3rd Floor, Park
Soap 805 2 1610 Centra, Sector -30
dispenser Nh-8, Gurgaon -
122001, Haryana,
India
For Employees:
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Address : 301-302,
3rd Floor, Park
Central, Sector -30
Nh-8, Gurgaon -
122001, Haryana,
Soap 200 2 400 India
dispenser
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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:
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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:
Duration Lifetime
3. Company Registration
Issuing Authority Registrar of companies
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Duration 1 year
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Duration 1year
9. L-4 License
Deputy Commissioner of Police/ Licensing,
Issuing Authority
Excise Commissioner, Delhi
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Duration 3 years
Duration Lifetime
Duration 1 year
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Duration 1 year
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Duration 1 year
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The total cost of all the legal formalities adds up to Rs. 8,80,150
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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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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:
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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.
Runners 3000 1800 1200 6000 720 105 825 5175 2 12000
Utility 2500 1500 1000 5000 600 87.5 687.5 4312. 2 10000
worker 5
Total 28 296000
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.
• Kitchen staff
worker
• Other staff
1. RESTAURANT MANAGER
Job Description
Business activities:
Front of house:
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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
Cost of uniforms
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Costing
Sr. No Item Quantity Rate Total cost
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
3. RESTAURANT STEWARD
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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
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4. CASHIER
5. RUNNERS
Job Specification
Must be able to carry salvers and trays with confidence.
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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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6. SECURITY GUARD
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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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
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8. SOUS CHEF
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
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9. COMMIS
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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.
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.
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.
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
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1. Fried Calamari
Name of the Dish Crisp Calamari (Batter fried calamari with sauce
and lemon wedges)
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1. Drunken Fries
Name of the Dish Drunken fries (Beer battered fries served crisp
with mayonnaise)
• 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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Name of the Dish Spicy chicken wings served with blue cheese dip
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• 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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Name of the Dish Brew grilled chicken served with mash potatoes.
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• 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.
• 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.
Name of the Dish Rib eye Steak served with French fries and pepper/
mushroom sauce.
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• 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
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• 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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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
3. Glassware
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Total cost
4. Kitchen Equipment
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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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6 Lemon squeezer 1 2 3 32 96
16 Bar spoon 1 1 2 45 90
17 Muddler 1 1 2 50 100
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7. Electronic Equipments
8. Linen
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9. Cleaning Supplies
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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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• 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.
• 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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• 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
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• Wine Inventory
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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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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.
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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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.
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• 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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Microbrewery Systems
Capacity
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.
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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
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.
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:
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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.
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.
• Advertisements n the leading paper in Saket and Delhi with appropriate inserts.
• 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.
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• After the opening of the restaurant, specific promotional activity would continue for a certain
interval of time.
• 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.
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.
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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
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The first hoarding would be a mystery banner so as to create curiosity among the people about the
restaurant.
Beer as genuine as
the monalisa…
Only at
BEER ME !
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BEer yourself at
BEER ME !
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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
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
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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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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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*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.
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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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.
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
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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.
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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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
OWNERS
EQUITY 7862842 Rent Deposit 896000
6980814.54
(+)NET PROFIT 1
14843656.5
NET CAPITAL 4
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(-)DRAWINGS 2968731.30
20% 8 Brewery 15000000
LOAN 20720623.2
OUTSTANDING 8845698 3
Electronics 122849
(-)Breakage 8257.25
17737194.75
Current Assets
Cash 596685.6965
Bank 895028.5447
Inventory 1491714.241
20720623.2
TOTAL 3 TOTAL 20720623.23
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AMOUN
LIABILITIES T TOTAL ASSETS AMOUNT TOTAL
OWNERS
EQUITY 11874925.23 Rent Deposit 896000
(-)DRAWINGS
20% 3985321.988 Brewery 15000000
LOAN
OUTSTANDING 5897132 24786986
Electronics 122849
(-)Breakage 8257.25
17737195
Current Assets
Cash 1409958.24
Bank 2114937.36
Inventory 3524895.6
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OWNERS
EQUITY 15941287.9 Rent Deposit 896000
Facility Planning
And Design 1100025
(-)DRAWINGS
20% 4962918.28 Brewery 15000000
LOAN
OUTSTANDING 2948566 28697371.1
Electronics 122849
(-)Breakage 8257.25
17737194.75
Current Assets
Cash 2192035.274
Bank 3288052.911
Inventory 5480088.185
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OWNERS 1985167
Rent Deposit 896000
Facility Planning
And Design 1100025
(-)DRAWINGS
20% 6025160.866 Brewery 15000000
LOAN 24100643.4
OUTSTANDING 0 6
Electronics 122849
(-)Breakage 8257.25
17737195
Current Assets
Cash 1272689.742
Bank 1909034.613
Inventory 3181724.355
INITIAL
CAPITAL
EXPENDITURE -19657106
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
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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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• 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.
• Yenne B., (1994), “Beers of the World”, New Jersey, Chartwell Books Inc.
• 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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