PROJECT FEASIBILITY REPORT ON A USER FRIENDLY RESTAURANT

A project Submitted in the partial fulfillment of the requirement for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION BY PRIYANKA SINHA (BBA/3512/08)

DEPARTMENT OF MANAGEMENT BIRLA INSTITUTE OF TECHNOLOGY MESRA-835215, RANCHI -2010

CERTIFICATE OF APPROVAL The foregoing thesis entitled PROJECT FEASIBILITY REPORT ON A USER FRIENDLY RESTAURANT, is hereby approved as a certificate study of research topic and has been presented in satisfactory manner to warrant its acceptance as prerequisite to the degree for which it has been submitted. It is understood that by this approval, the undersigned do not necessarily endorse any conclusion drawn or opinion expressed therein, but approve the thesis for the purpose for which it is submitted.

(Internal Examiner) (External Examiner)

(Chairman) Department

Head of

DECLARATION CERTIFICATE

This is to certify that the work presented in the thesis entitled PROJECT FEASIBILITY ON A USER FRIENDLY RESTAURANT in partial fulfillment of the requirement for the award of Degree of Bachelor Of Business Administrations of Birla Institute Of Technology Mesra, Ranchi is an authentic work carried out under my supervision and guidance. To the best of my knowledge, the content of the thesis does not form a basis for the award of any previous Degree to anyone else.

Date: (Guides name & signature) De signation: De partment:

Head Dean
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Department of management Graduate Studies) Birla Institute of Technology Institute of Technology Ranchi- 835215 835215

(Under Birla Mesra, Mesra, Ranchi-

Acknowledgement
I would like to acknowledge my teacher Mrs.Sraboni Dutta for giving me the opportunity to do such a wonderful project feasibility report It was her perspective guidance, constant encouragement, constructive criticism and affection which helped me to complete the project. I would also like to thanks my faculty-in-charge Mr. R.T. Goswami to provide me an opportunity to do this project. I would also like to sincerely thank our librarian for providing me with the right kinds of books to refer to. Also I would like to thank the almighty and my family for the support and encouragement to complete this project.

Priyanka Sinha

CONTENTS

CHAPTER 1-EXECUTIVE SUMMARY CHAPTER 2-COMPANY DETAILS CHAPTER 3-OPERATIONAL DETAILS CHAPTER 4-HUMAN RESOURCE PLAN CHAPTER 5-TECHNOLOGICAL PLAN CHAPTER 6-MARKETING PLAN CHAPTER 7-FINANCIAL PLAN CHAPTER 8-CONCLUSION

RAINBOW
A USER-FRIENDLY RESTAURANT EXECUTIVE SUMMARY The food service business is one of the largest industry in the country. An average Indian spends 10% of his/her income on meals away from home. This number has been increasing for the past seven years. In the past five years the restaurant industry has out-performed. The reasons given by the market research and industry analysis contained in the survey report include: 1) lifestyle changes, 2) economic climate, and 3) increase of product variety. The business that I am going to start is of a user-friendly restaurant. My restaurant would use a new way to serve people. There are a large number of restaurants in the city. Many of them have a very good business in the market. So, in order to attract the customers, I will be using a new technique to serve people. It is definitely an important fact that good quality food attracts customers. But in todays competitive market, just serving good quality food may not serve your purpose. Nowadays people just dont want only good quality food, they want something extra. They also give importance to the experience, feeling they get when they go to a restaurant. So, apart from good quality food and service, I will be concentrating more on providing them with a new
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environment, a new experience, a new feeling that they can enjoy when they come to Rainbow. There will be a computer screen on every table. The screen will contain the details of the menu available, types of dishes, prices and all such information. When a person will come and sit, he just needs to select what kind of food he wants from the screen say veg or non veg. Then a list will appear showing which type of dishes he can get say Chinese, Indian, South-Indian, Thai, Mexican, Italian etc. He needs to select which type of dish he wants.Then a list of dishes will come and he needs to choose accordingly.The prices of the items will also be there.Once he selects the items,the processing time will be displayed say 20 minutes is the processing time for the dishes ordered by a person.During the processing time also,he can play some songs or games available on the screen,if he or she wants.A waiter will serve the food within the processed time. This new, technologically advanced way to serve people can be a strong competitive advantage for us.People might like this new way of serving.Even if you have a problem in selecting menu or in understanding the system,you can always call upon a person who is always there to help you out.

INTRODUCTION: OBJECTIVE:The objective of the project is to study the feasibility of the restaurant that I am going to start.For studying the feasibility of the restaurant,marketing plan,technological plan,Human Resource plan,Financial plan of the business is made.Also the profitability and risk analysis of the project is done by making a projected Profit & Loss account,Projected Balance Sheet.The risk factors have also been studied.

SCOPE: The business has good opportunities for growth. Quality foods that we are going to provide plus the new and advanced way that we are using to serve people might help us to reap good profits.In the first few years we may not be earning much profit,the reason being that people might take time to adapt to such system of getting served,but the project has got great potential in the long run.People may like this new experience which we are going to provide.

SWOT ANALYSIS:

STRENGTH ANALYSIS: 1.The new way which we are going to serve people will be our major strength. There will be a computer screen on every table.The screen will contain the details of the menu available,types of dishes,prices and all such information.When a person will come and sit,he just needs to select what kind of food he wants.Processing time of the food will be displayed.And a waiter will bring the food within that time. 2.Wide variety of foods will be available from Indian to Chinese, Mexican to Continental,Spanish to Italian. 3.We will be serving at a competitive price which is neither too high nor too low.If we will provide food at a low price,we may earn less revenue.And if we charge high price,we may lose customers.

WEAKNESS ANALYSIS: We may not get very good response in the initial years because some people might not show interest towards this new method of getting served.

But for such people we will have some waiters who will be there to help them.If they want to order their food by calling a waiter and giving him the order, they can do that.

OPPURTUNITIES:1.High potential profits. 2.Since it is a restaurant with a new way to serve people,it may help us to reap good profits.

THREATS:1.Competition from pre-established units. 2.Increased price.

COMPANYS DETAILS: The business that I am going to start is a user-friendly restaurant named RAINBOW.Just as the Rainbow has a wide variety of colours,in the same manner,we have named this restaurant as Rainbow as we will be offering a wide variety of food and services.Our restaurant will be located in the heart of the city which is easily acessible and highly-populated.It will be a sole-proprietorship firm.I will be the sole-owner of the firm.Major products of the restaurants will be veg and non-veg items,including a wide variety of dishes ranging from Indian to Chinese,Mexican to Spanish,Italian to Thai.We will also be offering a wide range of beverage items,such as tea,coffee,juice,lassi etc.

Mission Statement The business goal is that of a multi-faceted success. Our first responsibility is to ensure the financial well-being of the restaurant. We will meet this goal while trying to consider; 1) the effect of our products on the health and well being of our customers (and our staff), 2)the experience that people will have when they come to our restaurant.3) the impact that our business practices and choices will have on the environment, and 3) the high quality of attitude, fairness, understanding, and generosity between management, staff, customers, and vendors. Awareness of all these factors and the responsible actions that result will give our efforts a sense of purpose and meaning beyond our basic financial goals.
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Use of high technology and less manpower will be an important feature of Rainbow. There will be a computer screen on every table.The screen will contain the details of the menu available,types of dishes,prices and all such informations.When a person will come and sit,he just needs to select what kind of food he wants from the screen say veg or non veg. Then a list will appear showing which type of dishes he can get say Chinese, Indian, South-Indian,Thai,Mexican,Italian etc.He needs to select which type of dish he wants.Then a list of dishes will come and he needs to choose accordingly.The prices of the items will also be there.Once he selects the items,the processing time will be displayed say 20 minutes is the processing time for the dishes ordered by a person.During the processing time also,he can play some songs or games available on the screen,if he or she wants. It may be a strong competitive advantage for our restaurant.

OPERATIONAL DETAILS
Production Food production and assembly will take place in the kitchen of the restaurant. Fresh vegetables, meat and dairy products will be used to create most of the dishes from scratch. The chef will exercise strict standards of sanitation, quality production, and presentation or packaging over the kitchen and service staff. Service There will be three ways by which a customer can purchase food.They may use the computer screen fixed at their table.They can select the items on the screen.Or they can call a waiter and give him the order. Delivery (an indirect form of take-out) will be available at certain times and to a limited area. Hours of Operation The restaurant will be open for 7 days a week. Service will begin at 11:00 AM and end at 11:00 PM. The restaurant will be closed National holidays like Republic Days,Independence Day,Gandhi Jayanti.
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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.

HUMAN RESOURCE PLAN

Management & Organization This will be a sole-proprietorship firm. I will be the sole owner of the firm. The management style will be innovative and kept in pace with the corporate style outlined in the mission statement. Compensation & Incentives Rainbow will offer competitive wages and salaries to all employees with benefit packages available to key personnel only. Management to be Added There will be a general manager and executive chef. These key employees will be well chosen and given incentives for performance and growth. Management Structure & Style The general manager will be the head of the restaurant. The assistant manager and chefs will report to him. The sub-chefs will report to the chef.

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TECHNOLOGICAL PLAN Use of high technology and less manpower will be an important feature of Rainbow. There will be a computer screen on every table.The screen will contain the details of the menu available,types of dishes,prices and all such informations.When a person will come and sit,he just needs to select what kind of food he wants from the screen say veg or non veg. Then a list will appear showing which type of dishes he can get say Chinese, Indian, South-Indian, Thai, Mexican, Italian etc. He needs to select which type of dish he wants. Then a list of dishes will come and he needs to choose accordingly. The prices of the items will also be there. Once he selects the items, the processing time will be displayed say 20 minutes is the processing time for the dishes ordered by a person. During the processing time also, he can play some songs or games available on the screen, if he or she wants. It may be an strong competitive advantage for our restaurant.

MARKETING PLAN
To attract customers for our restaurant we need to focus on: - The creation of a distinctive, inviting and friendly atmosphere that will provide a new dining experience in a growing market. - To provide a growing and loyal customer base with the highest level of service, focus on quality, and attention to detail. - Controlling costs at all times, in all areas. - Hiring the best people available, training, motivating and encouraging them, and thereby retaining the most attentive and efficient staff possible. - Continually researching the market to keep on top of trends and customer tastes. - Conducting ongoing marketing and promotional activities. - Taking feedback from our customers and considering their recommendations,if any. Although the restaurant industry is very competitive, the lifestyle changes created by modern living continue to fuel its steady growth. Our restaurant
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marketing team believes that these trends are very important and that any new restaurant needs to be well positioned for growth and success.

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

The Challenges Though the restaurant market in the Indian setting is strong and established, certain challenges can still affect the success of the planned restaurant business. For instance, the location of the establishment should be greatly accessible to the market.So,our restaurant will be in such a place which is easily acessible from the market.Aside from physical location, the food or menu offered by the restaurant, the new innovations as well as the service style of the restaurant will be such that suits consumer needs and tastes. All of these criteria will be taken into account so as to develop practical solutions to overcome possible business challenges.

Accessibility The accessibility of the restaurant project is a broad aspect to consider. However, it is important to take note that in this criterion, the consumer is the focal point. Since the restaurant project will be placed in the city area, the place will be highly accessible to employees working within the citys work sites. In terms of people volume, it is particularly high in this case as it will be near buildings and establishments were a lot of people are working. As a large number of people are driving their own private cars to work, there would be an allotted space for parking. Hence, the place will be built in such a way that the area is maximized for eating and parking spaces. In addition, there should be efforts by the builder to make the place accessible for the handicapped. For these problems, the project team will try to ensure
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that the total area is well-divided to house all required amenities.We will take advice from the restaurant designers and builders who have the necessary expertise to make the place highly accessible for the consumers

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

Competition The competition within the food industry is high in the Indian setting. One of the greatest challenges perhaps in this aspect is brand recognition. Since well-known fast food brand names had been introduced in the market, brand recognition has been significant in the country.Consumers are particular with the brand due to their need for quality, cost and convenience assurance. Brand indeed is a strong competitive advantage and at times difficult to overcome. However, one way of resolving this problem is by offering something different from what is offered by well-known brands.For instance,the way we are going to serve people is diferrent from others.The concept of a user friendly restaurant is quite new in the market.Also,our foods will be known for its simplicity and healthiness. These characteristics are not mainly offered by known fast food chains, hence,could also be a valuable competitive advantage.

Industry Analysis

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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 Rainbow may be well positioned for the current interest in lighter, healthier foods at moderate prices.

Products & Related Services The Rainbow Restaurant will be offering a menu of food and beverages with a distinctive image. There will be a computer screen on every table.The screen will contain the details of the menu available,types of dishes,prices and all such informations.When a person will come and sit,he just needs to select food he wants from the screen.Then the processing time will be displayed and waiter will serve you the food within that time.

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

The Target Market It will be located in an area which is easily acessible by customers and is well-populated. Market Location & Customers The Restaurant will be located in Sector-V,Salt Lake,Kolkata.The customer base will come from 4 major segments; 1.Local population -- the area of Salt Lake which is quite large. 2. Colleges and Universities There are a large number of colleges in that area.
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3.Tourism -- between hotels, motels, bed & breakfast rooms and inns, there are over many rooms available. Last year they were at a large occupancy. 4.Local businesses There are various local businesses in the area with a large number of employees. The food concept and product image of Rainbow will attract 3 different customer profiles;

The student -- more and more young people have developed healthy eating habits. Some also go through a "health food phase" while in college. The health conscious person of any age or sex -- this includes anyone on a restricted or prescribed diet or those who have committed to a healthy diet. Curious and open-minded -- "if you try it, you will like it." Through marketing, publicity, and word-of-mouth, people will seek out a new experience and learn that nutritious food can be tasty, fun, convenient, and not much expensive.

Market Trends & The Future The population and demographics of Salt Lake have increased since the last 15 years. Tourism has increased 24% over the last 3 years and is predicted to keep growing. Local businesses are increasing at a rate of 8% 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. This is not a fad but a true dietary trend backed by the scientific and medical community, the media, the government, and endorsed by the big food manufacturers. As the Foodservice 2000 report stated, this trend will be even more important by the turn of the century. 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 two dozen restaurants in the Salt Lake area 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.Rainbow will use an innovative way to serve people.Our aggressive plans of take-out and delivery will also give us an advantage to create a good market share before the competition can adjust or similar concepts appear. Competitor's Profile Competing with Rainbow for the target market are these categories of food providers:

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

Independent operators include Barbi-Q, Spicy n Tasty .They are doing quite well.The major chain restaurants are Mc Donalds,Pizza Hut,Chili's and Bertucci's. All are relatively new but well established and profitable. They have big resources of marketing and/or a specialty product or attraction. In addition there are some local catering companies that deliver prepared meals daily to offices. Competitive Strategy There are four major ways in which we will create an advantage over our competitors; Emphasis on use of better technology to serve people. product identity, quality, and novelty high employee motivation and good sales attitude innovative and aggressive service options. Rainbow will be the only restaurant among all the competition which focuses the entire menu on healthy, low-fat cooking. Each of the competitors offers at least one "healthy" selection on their menu. The target
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market will perceive Rainbow as the destination location for healthy, low-fat cooking. Milestones After the restaurant opens, we will keep a close eye on sales and profit. If we are on target at the end of year 1, we will look to expand to a second unit. Risk Evaluation With any new venture, there is risk involved. The success of our project hinges on the strength and acceptance of a fairly new market. After year 1, we expect some copycat competition in the form of other independent units. Chain competition will be much later. Marketing Plan & Sales Strategy Market Penetration Entry into the market should not be a problem. The store has high visibility with heavy foot traffic all day long. The local residents and students always support new restaurants and the tourists do not have fixed preferences. Marketing Strategy Focusing on the unique aspect of the product theme (serving healthy, tasty foods in a computerized way) a mix of marketing vehicles will be created to convey our presence, our image, and our message.

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

Future plans and Strategic 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 FINANCIAL PLAN Here, we analyze the total costs of a proposed project (including all construction costs and operating costs) and the potential revenues that the
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project can get. If the potential revenues of the proposed project can cover all of the costs, the project is financially feasible. A restaurant's profit and loss statement, or P&L, is much like an income statement for the restaurant. This document serves as a report to summarize income, expenses and inventory, illustrating a restaurant's total profits and losses over a period of time. Our P&L statements involve two major sections: 1.The section first specifies any sources of revenue, including food, beverage sales, merchandise sales, catering, and any other source of income important to the restaurant. 2.The other section involves all operating expenses in the restaurant. This includes payroll, land and building, and repairs, among others The difference between the revenue and the expenses determines whether the restaurant reaps a profit or suffers a loss at the end of a given period.

Restaurant Revenue All sales income is recorded on the P&L statement. The common sources of our revenue are: Food and beverage sales The most obvious means of income in our restaurant is food and beverage sales, since this is the reason most people come to our restaurant in the first place. Food sales will likely be our major source of income. Merchandise Merchandise is another method of boosting profits. Merchandise includes souvenirs, gifts and other retail items unique to our establishment that can increase sales, especially from tourists or holiday shoppers. Merchandise includes the following:

Gift certificates or gift cards Cookbooks

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T-shirts Hats Mugs Prepackaged food or beverages

Catering Another method of creating income is by catering, or engaging in other offsite selling opportunities. Catering parties and events for customers could be a great way to increase daily sales and reach out to people who have never tried our restaurant. Limited service restaurants can offer a catered lunch option for surrounding businesses. Smoothie shops can sell smoothies at local high schools and sporting events. It pays to learn about our surrounding area and how you can take our sales outside our restaurant's walls. There are many expenses involved in operating a restaurant. Some of the common expenses in our restaurant include: Cost of Goods Sold (COGS) Cost of Goods Sold (COGS), also known as Cost of Goods Used or simply usage, is the cost of the products, or goods, that our restaurant sells. Essentially, this is the money spent on inventory. This is usually denoted just below total sales on the P&L report. To control usage and make the biggest profit, our restaurant would purchase enough products to serve our customers without running out and without having too much left over going bad on the shelves. Payroll Also called labor cost, this is one of the most important expenses in our restaurant. Part of your business's income must go to the manager, chefs, waiters and others who work in our restaurant. Operating Expenses There are several daily expenses incurred while running the restaurant, such as purchasing or replacing chinaware, flatware or glassware, as well as any linens or paper products that may need to be cleaned or replenished. These can be lumped into operational expenses on our P&L.
,

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Occupancy Costs It includes property taxes, water and sewer taxes, gas and electric, insurance etc Cash flow is the other measure that restaurants live and die by. Most restaurants fail in their first year of operation because they simply run out of cash to keep the business going. The funds from the loan run out, credit cards and lines of credit have been tapped, and the money faucet has dried up. Cash Management on Premises
1. We

will accept cash as well as credit cards. We will Shop around for the cheapest processing rate and settle our transactions on a daily basis after closing. 2. Keep a drop safe in the office and make cash deposits at least once a day, varying the times and people we send to the bank. TOP CASH BURNERS 1. Payroll - Staff must be paid on time. Morale will plummet and service will take a nosedive if staff is not paid, aside from it being unethical. So, we will try to ensure that the staff are paid on time. 2. Food Inventory - Theres no way to know exactly how many people will order food in a restaurant on any given day, but one still must have enough fresh food on hand to make all the items on ones menu. While good chefs know how to minimize waste, there is no way to avoid spoilage when business is down 50% on a Friday night because theres a major thunderstorm with torrential rain right outside the door. Fish, for example, is only at peak freshness for a relatively short period of time. 3.Loan Payments - Loans and mortgages must be paid on time. If theyre not, the bank or mortgage company may foreclose. 4.Miscellaneous Expenses - Even though we may budget for repairs and other unforeseen expenses, things always seem to crop up which require immediate cash. It's easy to underestimate the costs of reprinting the menu, paying the plumber for fixing the leak in the restroom and all the rest other expenses. The projected Profit & Loss account for the first year is given in the next page.
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PROJECTED PROFIT & LOSS A/C

(for the year ending as on 31st Dec,2011)
DR. PARTICULARS TO KITCHEN EXPENSES: RAW INGREDIENTS KITCHEN EQUIPMENTS TO WAGES TO SALARY TO MANAGERIAL REMUNERATION TO DEPRECIATION: FURNITURE VEHICLES BUILDING COMPUTERS TO INTERIOR EQUIPMENT AMOUNT(in Rs) PARTICULARS BY SALES: FOOD SALES BEVERAGE SALES CATERING MERCHANDISE SALES BY CLOSING STOCK CR. AMOUNT(inRs)

360000 140000 60000 110000 50600

1042800 300250 205500 54000 34000

1750 10000 100000 7500

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TO SERVICE EXPENSES: TO RENT TO OCCUPANCY COST WATER & SEWER PROPERTY TAX GAS & ELECTRIC INSURANCE & REPAIRS TO ADVERTISEMENT EXPENSES TO PROVISION FOR CONTINGENCIES NET PROFIT

35500 48000

82750 36000 73000 24000 28500 6000 387950 1636550 1636550

Here is the projected balance sheet for the first year.

RAINBOW
A USER-FRIENDLY RESTAURANT

( as on 31st Dec,2011)

BALANCE SHEET

CAPITAL & LIABILITIES CAPITAL ADD:NET PROFIT 448600 387950

AMOUNT(inRs)

ASSETS FIXED ASSETS:

AMOUNT(in Rs)

836550

LAND BUILDING 2000000 100000

800000

BANK LOAN

1400000

LESS:DEPRECIATION

1900000

25

ADD:INTEREST

168000

1568000

FURNITURE & FITTINGS 35000 LESS:DEPRECIATION 1750 150000 7500 200000 10000 190000 142500 33250

CREDITORS

576000

COMPUTER LESS:DEPRECIATION

LOANS FROM SUBSIDIARIES

200000

VEHICLES LESS:DEPRECIATION

PROVISIONS: STAFF BENEFIT SCHEME PROVISION FOR TAXATION 95775 31925 CASH AT BANK 97250 CASH IN HAND 73250

GOODWILL

6000

PATENT,TRADEMARK

25000

PRELIMINARY EXPENSE

27000

CLOSING STOCK

34000

3308250

3308250

PROJECTED PROFIT & LOSS A/C

(for the year ending as on 31st Dec,2012)
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DR. PARTICULARS AMOUNT(in Rs) PARTICULARS

CR. AMOUNT(inRs)

TO OPENING STOCK TO PURCHASES RAW INGREDIENTS KITCHEN EQUIPMENTS TO WAGES TO SALARY TO SERVICE EXPENSES

34000

BY SALES: FOOD SALES 1135000 274000 87390 228900 45000

384000 27500 65000 112000 35500

BEVERAGE SALES SNACK SALES CATERING MERCHANDISE SALES

TO MANAGERIAL REMUNERATION

40000

BY CLOSING STOCK

20000

TO OCCUPANCY COST WATER AND SEWER PROPERTY TAX GAS & ELECTRIC INSURANCE AND REPAIRS 82750 36000 73000 24000

TO PROVISION FOR CONTINGENCIES

6000

TO PROVISION FOR TAXATION

31000

TO DEPRECIATION BUILDING COMPUTER FURNITURE AND FITTINGS VEHICLE 95000 7125 1662 9500

TO ADVERTISEMENT EXPENSES

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20000

TO REPAIR EXPENSES BUILDING INTERIOR ITEMS 4750 2000

OTHER EXPENSES

27000

NET PROFIT

672303 1790290 1790290

RAINBOW
A USER-FRIENDLY RESTAURANT

BALANCE SHEET
(as on 31st Dec,2012)

CAPITAL & LIABILITIES CAPITAL ADD:NET PROFIT 836550 672303

AMOUNT(inRs)

ASSETS FIXED ASSETS:

AMOUNT(in Rs)

1508853

LAND BUILDING 1900000 95000

800000

BANK LOAN

1433135 1599135

LESS:DEPRECIATION

1805000

LOANS FROM SUBSIDIARIE166000

FURNITURE & FITTINGS 33250 LESS:DEPRECIATION 1662 31588

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PROVISIONS: PROVISION FOR TAXATION STAFF BENEFIT SCHEME 31000 75000

COMPUTER LESS:DEPRECIATION VEHICLES LESS:DEPRECIATION

142500 7125 190000 9500 180500 135375

CASH IN HAND

90775

CASH AT BANK

117000

GOODWILL

6750

PATENT,TRADEMARK

27000

CLOSING STOCK

20000

3213988

3213988

CONCLUSION
Based on the project description, the plan for a user-friendly restaurant is a good establishment within the Indian business industry. Considering the continuous progress of the Indian restaurant sector, the project plan for the user-friendly restaurant is likely to succeed. In India, an estimate of 5.5% growth in annual sales had been registered for its restaurant sector in 1999.Though fluctuations in sales growth had been observed in the Indian
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restaurant market, the sector remained dynamic as menu transitions and new brand innovations had been introduced by various establishments. A number of factors are also significant for the growth of the Indian restaurant industry. Among these include the progress of tourism in the country, increase in disposable income as well as work and home pressures. Due to these factors, a number of consumers have increased preference for going to cafes and restaurants. In addition, restaurants are also viewed as good alternatives for home cooking or for celebrating special events and occasions. Within the Indian food establishment industry, the restaurant sector is the largest in the country. Various range of outlets from small, less costly operations to branded outlets are also present in the country. Based on the consumer studies, eating at restaurants is now part of most consumers lives in the big cities in the country. In fact, the Target Group Index (TGI) has shown that 62% of its respondents have stated that they eat out during the evenings, whereas 50.8% of the respondents eat out during the day. These socio-economic factors have greatly contributed to the boosted sales acquired during the past years. From these aspects, it is apparent that the restaurant sector in the Indian market has high possibilities of further growth and development in the future. Thus, the project plan for a user-friendly restaurant is likely to succeed in the industry. If the business is meeting its projections by month nine, we will start scouting for a second location and develop plans for the next unit. Our five year goal is to have 3 restaurants in the Park Street area with a combined annual profit of between $500,000 and $1,000,000. We have studied the operational plan, technological plan,marketing plan.The study of the financial feasibility of the project has been done. As we can see that our estimated revenues is more than our estimated costs, we can say that this project is financially feasible. The risk factors have also been analysed. The idea of starting a user-friendly restaurant is a quite different concept.People may like this concept.A new experience,a new environment,a new feeling which Rainbow is going to provide may attract customers.They will probably like this new way of getting served. Such a restaurant may help us reap good profits .

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