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BY: Bhavesh Pipaliya Kushal Khamar Krishna Chandra Rai Nitin Panara
Shubham Restaurant
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Executive Summery
Basically my Business is on hospitality industry. We select the location Sarthana Jakat naka, Surat, Every day night it is crowded area. So, there are lots of growth opportunities so, and I named my business as Shubham Restaurant. A suitable site for the first restaurant was found last month and lease negotiations are in the final stages. Although the restaurant industry is very competitive, the lifestyle changes created by modern living continue to fuel its steady growth. More and more people have less time, resources, and ability to cook for themselves. Shubham Restaurant will be offering a menu of food and ice cream with a distinctive image. There will be three ways to purchase these products; table service at the restaurant, take-out from the restaurant, and delivery to home or office. There are only 1 or 2 Restaurants in Sarthana Jakat naka that sell food at similar prices. Although this presents an obvious challenge in terms of market share, it also indicates the presence of a large, strong potential. The marketing effort will be split into 3 phases; Opening, Ongoing and Point of sale. My initial investment will be of Rs.50, 40, 000. Out of which we will contribute around Rs.10, 40, 000.
Shubham Restaurant
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Company Description
I have named business as Shubham restaurant. Shubham restaurant is providing variety of Guajarati foods with best quality and always be successful in satisfying the needs of people. It will help to create emotional bonding among the customers. We preferred location as Sarthana Jakat naka, Surat because Sarthana Jakat naka is very crowded area from afternoon 4:00 0clock to night 1:00 oclock. So this makes possible for my business to be open for 8 hours a day with crowded potential customers.
Mission Statement We are committed to using the finest ingredients in our recipes. No food leaves our kitchen that we ourselves would not eat. Development & Status A suitable site for the first restaurant was found last month and lease negotiations are in the final stages. The location will be on Sarthana Jakat naka, close to a crowded population of the target market. When the lease is signed there will be three months of free rent for construction and in that time the balance of the start-up funds must be raised.
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Industry Analysis
Although the restaurant industry is very competitive, the lifestyle changes created by modern living continue to fuel its steady growth. More and more people have less time, resources, and ability to cook for themselves. Trends are very important and Gujarat restaurant is well positioned for the current interest in lighter, healthier foods at moderate to low prices. The Restaurant Industry Today
The food service business is the third largest industry in the country. It accounts for over Rs. 10000 billion annually in sales. The independent restaurant accounts for 15% of that total. The average Indian spends 10% of his/her income on meals away from home. This number has been increasing for the past seven years. In the past five years the restaurant industry has outperformed the national GNP. The reasons given are 1) lifestyle changes, 2) economic climate, and 3) increase of product variety. There are 600 new restaurants opening every month and over 200 more needed to keep pace with increasing demand.
Future Trends & Strategic Opportunities
The predicated growth trend is very positive both in short and long-term projections. As modern living creates more demands, people will be compelled to eat more meals away from home. The National Restaurant Association released the Foodservice Industry 2000 report that forecasted how the industry might look in the year 2020. Some highlights from the panel's findings:
"Consumers will spend a greater proportion of their food dollar away from home. Independent operators and entrepreneurs will be the main source of new restaurant concepts. Nutritional concerns will be critical at all types of foodservice operations, and food flavors will be important. Environmental concerns will receive increased attention."
Shubham Restaurant
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Market Trends & the Future The population and demographics of Surat have remained steady for the last 5 years. No. of travelers have increased 24% over the last 3 years and is predicted to keep growing. Local businesses are increasing at a rate of 20% yearly. The idea of a health consciousness through nutritional awareness and dietary change has been slowly building for the last 7 years. The extensive government studies and new Food Guide Pyramid have given everyone a new definition of a balanced, healthy diet. As people want to stay home more and cook less our strategy of delivering prepared meals on a weekly or monthly arrangement may be a widespread accepted new way of eating.
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The Competition
There are over 1 or 2 restaurants in the Sarthana Jakat naka area, which is not well- organized restaurants and that sell food at similar prices. Although this presents an obvious challenge in terms of market coverage, it also indicates the presence of a large, strong potential. The newest competitors have made their successful entry based on an innovative concept or novelty. Shubham restaurant will offer an innovative product in a familiar style at a competitive price. Our aggressive plan of delivery will also give me an advantage to create a good market share before the competition can adjust or similar concepts appear. Competitive Strategy There are three major ways in which we will create an advantage over our competitors;
Product identity, quality, and novelty High employee motivation and good sales attitude Innovative and aggressive service options.
Shubham restaurant will be the only restaurant among all the competition which focuses the entire menu on healthy, low-fat cooking. Each of the competitors offers at least one "healthy" selection on their menu. Gujarati Dhaba even has an entire section called "On the Lighter Side" but in all cases they are always seen as alternatives to the main style being offered. The target market will perceive Shubham restaurant as the destination location for healthy, low-fat cooking.
Shubham Restaurant
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Print media -- local newspapers, magazines and Hoardings in busy areas Broadcast media -- local TV channel and special interest shows Hotel guides, concierge relations, Chamber of Commerce brochures Misc. -- yellow pages, charity events (organized cooking event) and loyalty card
The marketing effort will be split into 3 phases; 1) Opening -- An advanced notice (press packet) sent out by the PR firm to all media and printed announcement ads in key places. 2) Ongoing -- A flexible campaign (using the above media), assessed regularly for effectiveness. 3) Point of sale -- A well-trained staff can increase the average check as well as enhancing the customer's overall experience. Word-of-mouth referral is very important in building a customer base. Future plans and Strategic Opportunities Catering to offices (even outside of our local area) may become a large part of gross sales. At that point a sales agent would be hired to directly market our products for daily delivery or catered functions.
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Operations
Facilities & Offices The restaurant at Sarthana Jakat naka is a 3500 Square foot space. It was formerly a restaurant and needs on minor structural modifications. New equipment and dining room furnishings will be purchased and installed by the general contractor. Offices of the corporation will be at our uncles home but later on moved to the restaurant after opening. Hours of Operation Service will begin at 4:00 AM and end at 1:00 PM. Employee Training & Education Employees will be trained not only in their specific operational duties but in the philosophy and applications of our concept. They will receive extensive information from the chef and be kept informed of the latest information on healthy eating. Systems & Controls A big emphasis is being placed on extensive research into the quality and integrity of our products. They will constantly be tested for our own high standards of freshness and purity. Food costs and inventory control will be handled by our computer system and checked daily by management. Food Production Most food will be prepared on the premises. The kitchen will be designed for high standards of sanitary efficiency and cleaned daily. Food will be made mostly to order of customers and stored in large coolers. We will have in snacks vadapov, sandwich, idly, dabeli, chines bhel and panipuri, Dhosa, Pavbhaji, Manturium also. We will have special machine like microwaving for sandwich.
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Financial Plan
Start up Expenses Particulars Amount (Rs.) Legal 100,000 Sationary 20,000 Rent 1,200,000 R&D 60,000 Equipment 349,050 Insurance 120,950 Total 1,850,000
Projected Profit and Loss Account Particulars Amount (Rs.) Particulars To Raw Material purchased 720000 By Sales To Light and Power 200000 By Closing Stock To G/P carried down 1758650
2678650 To Depriciation To Insurance To Salaries To Rent To Advertisement To Tax To Net Profit 130000 By G/P Carried Down 120950 By Discount 480000 1200000 400000 150000 -629800 1851150
1851150
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Projected Balance Sheet of Shubham Restaurant Liabilities Amount (Rs.) Assets Amount (Rs.) Capital Reserves and Surplus Fixed Assets Owners Capital 1040000 Furnitures 1500000 Profit and Loss Account -629800 Fixuters 749500 Current Liabilities and Provisions Equipments 349050 A. Current Liabilities Current Assets, Loans and Advancements Bills Payable 17000 A. Current Assets Creditors 4000000 Stock 1000000 B. Provisions Cash 428650 Provision for Taxes 100000 Bank 600000 Provision for Contingencies 100000
4627200
4627200
Daily Sales Particulars Quantity Price Sandwish 25 Vadapov 40 Dabeli 35 Panipuri 30 Idly 30 Masala Dhosa 30 Mysore Dhosa 15 Pavbhaji 20 Manchurium 15 Chinese Bhel 15 Noodles 15 Coldrinks
25 10 7 10 8 14 25 20 30 30 30
Amount (Rs.) 625 400 245 300 240 420 375 400 450 450 450 310 4665
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Particulars Sales
Variable Overheads Purchases 720000 Light and Power 200000 Labor 25000 Total Variable Cost 945000 Contribution Fixed Overhead Rent 1200000 Salaries 480000 Insurance 120950 Advertisement 400000 Total Fixed Cost BEP in Years BEP in Sales (Fixed Cost*Sales/Contribution)
733650
2200950 3 5035950
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