business plan mba

8/11/2019 business plan mba

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Business Plan on

RESTURANT


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ACKNOWLEDGEMENT

I, is very excited to present my Business Plan- Tasty Bites. TB is a fine dine

restaurant located in Chinhat, Lucknow.

The completion of this business plan is not the sole effort of mine but

is in regards with the timely help and support of my teachers. I am very

thankful to my teacher Dr. Bimal Jaiswal for the practical knowledge he

provided with his exemplary examples and all-time help which had helped

me solve any problem related to this business plan and come out with this

project.

I am also very obliged to all my subject teachers for the vast

knowledge and live examples they provided which helped me make this

project a reality.

At last but not least, I heartily want to thank my parents for their all

time support, help and prayers because of which I have been able to present

this business plan.


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CONTENTS

Table of Contents

1.

EXECUTIVE SUMMARY ............................................................ 7

1.1MISSION.. ....7

1.2OBJECTIVE.. ....8

1.3

KEYS TO SUCCESS.....8

2.COMPANY SUMMARY........9

2.1COMPANY OWNERSHIP.....10

2.2

START-UP SUMMARY...10

2.3COMPANY LOCATION AND FACILITIES..13

3.

PRODUCTS AND SERVICES...14

3.1

PRODUCTS AND SERVICE DESCRIPTION.....14

3.2SALES LITERATURE.....17

4.MARKET ANALYSIS SUMMARY.......18

4.1MARKET SEGMENTATION....18

4.2

TARGET MARKET SEGMENT STRATEGY.....18

4.3MARKET NEEDS....20


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4.4

SERVICE BUSINESS ANALYSIS...20

4.4.1 COMPETITION AND BUYING PATTERN........20

4.4.2

MAIN COMPETITORS....20

5.STRATEGY AND IMPLEMENTATION...21

5.1

COMPETITIVE EDGE......21

5.2

MARKETING STRATEGY......21

5.3

SALES STRATEGY

.....

22

5.4

WEBSITE MARKETING STRATEGY.24

6.MANAGEMENT SUMMARY..25

6.1

PERSONNEL PLAN....26

7.

FINANCIAL PLAN....27

7.1

SOME IMPORTANT ASSUMPTIONS....27

7.2PROJECTED PROFIT AND LOSS...29

7.3

PROJECTED CASH FLOW....31

7.4PROJECTED BALANCE SHEET...33

7.5

BUSINESS RATIOS.34

7.6ORGANISATION STRUCTURE 36


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LIST OF FIGURES

1.1

MARKET ANALYSIS(PIE)..19

1.2

SALES FORECAST (YEARLY FOR 3 YRS.)....23


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LIST OF TABLES

1.1 START-UP SUMMARY.....10

1.2 PERSONNEL PLAN.26

1.3

IMPORTANT ASSUMPTIONS...28

1.4 PROJECTED PROFIT AND LOSS.....29

1.5 PROJECTED CASH FLOW...31

1.6 PROJECTED BALANCE SHEET...33


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TASTY BITES

1.0

Tasty Bites (TB) is a start-up fine-dine restaurant located in Chinhat,Lucknow. TB expects to catch the interest of a regular loyal customer base with

its broad variety of food items, beverages and services. TB is determined to

become a daily necessity for locals, a place to dream of as you try to escape the

daily stresses of life and just a comfortable place to meet your friends or read a

book, all in one. With the growing demand for high quality gourmet coffee and

tea with great service, TB will capitalize on its ability to provide wide variety of

food items, beverage and services all at one place. TB aims to offer its products

at a competitive price to meet the demand of the middle to higher income local

area residents. Being at the centre of the city, TB will attract customers from all

the corners of the city.

EXECUTIVE SUMMARY


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1.1 MISSION

We are a motivated team of health- conscious, community-minded

individuals. We are committed to the highest standards of food quality and

customer service. We care about our guests experience and our crews

development. At Tasty Bites, we are dedicated to taking the extra step at every

level to be the best we can be!

1.2

OBJECTIVE

TASTY BITES objectives are to build brand awareness and customer

service excellence, while increasing sales. TB intends to utilize the following

strategies to achieve these objectives:

To develop a high quality menu of different food items.

To provide an excellent service experience, anticipating the needsof the customers and delivering the best service.

To develop enough cash flow to pay all salaries as well as grow

the business.

1.3 KEYS TO SUCCESS

Keys to success for TB will include:

Providing the highest quality product with personal customer

service.

Competitive pricing.


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Store design that will be both visually attractive to customers, and

designed for fast and efficient operations.

Employee training to ensure the best food preparation techniques.

Marketing strategies aimed to build a solid base of loyal

customers, as well as maximizing the sales of high margin

products, such as espresso drinks.

Exceed customer expectations.

Employ strict financial controls.

2.0 0

TB is a fine-dine restaurant managed by three partners. These partners

represent sales/management, marketing/administration and finance respectively.

The partners will provide funding from their own savings, which will cover start-

up expenses and provide a financial cushion for the first months of operation. A

ten-year Small Business Loan will cover the rest of the required financing. The

company plans to build a strong market position in the town, due to the partners

industry experience and mild competitive in the area. TB, a Lucknow based

Partnership Company, sells food items, beverages and other services in its 2000

square feet restaurant located in Chinhat.

COMPANY SUMMARY


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2.1

COMPANY OWNERSHIP

TB is located in Lucknow, Uttar Pradesh. It is owned by its three partners-

Mr. Prashant Pandey, Mr. Anil Kumar and Mr. Anirudh Pal with each holding

40%, 30%, 30% stake in the company respectively. It is registered as a

Partnership Company in the state of Uttar Pradesh.

2.2 START-UP SUMMARY

TB is a start-up company. Financing will come from the partners capital

and a ten year Business Loan. The following chart and table illustrate the

companys projected initial start-up costs.

TB will incur the following start-up costs:

Two commercial stoves with ovens.

Dishwasher.

Two sets of cookware.

Two sets of dishware.

One van with rolling racks built in (a rolling rack is a wheeled rolling cart

system that is insulated for both hot and cold food).

Assorted serving trays and utensils, knives and cutting boards (two each).

Desk and chair.

Computer with printer & copier and fax machine.


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TABLE 1.1

Start-up Requirements

PRELIMINARY Expenses

Legal 25,000 Rs.

Stationery etc 15,000 Rs.

Rent 50,000 Rs.

Expensed Equipment 1,50,000 Rs.

Other 50,000 Rs.

Total Preliminary Expenses 2,90, 000 Rs.

Start-up Assets

Cash Required 14,10,000 Rs.

Start-up Inventory -

Other Current Assets 1,00,000 Rs

Long Term assets 12,00,000 Rs.

Total Assets 27,10,000 Rs.

Total Requirements 30,00,000 Rs.

Start-up Funding

Start-up Expenses to fund 2,90,000 Rs.

Start-up Assets to fund 27,10,000 Rs.

Total Funding Required 30,00,000 Rs.

Assets


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Non- Cash Assets from Start-up 13,00,000 Rs.

Cash Requirements from Start-up 14,10,000 Rs.

Additional Cash Raised -

Cash Balance on Starting Date 14,10,000 Rs.

Total Assets 27,10,000 Rs.

Liabilities and Capital

Liabilities

Current Borrowings 6,00,000 Rs.

Long term Liabilities -

Accounts Payable 8,00,000 Rs.

Other Current Liabilities 14,00,000 Rs.

Total Liabilities 28,00,000 Rs.

Retained Earning 6,00,000 Rs.

Capital in paid 10,00,000 Rs.

Planned Investment

Owner/Founder 10,00,000 Rs.

Other -

Additional Investment Requirement -

Total Planned Investment 26,00,000 Rs.

Loss at Start-up (Start-up Expenses) (2,90,000 Rs.)

Total Capital 2,31,000 Rs.

Total Capital & Liabilities 30,31,000 Rs.

Total Funding 30,00,000 Rs.


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2.3

COMPANY LOCATION AND FACILITIES

TASTY BITES will be located on the ground floor of the commercial

building in Chinhat.

The floor plan will include a 200 square feet back office and a 2300 square

feet dining area which will include a seating area with 15 tables, a kitchen, a

storage area and two bathrooms. The space in the dining area will be

approximately distributed in the following way- 1260 square feet(i.e., 55% of the

total) for the seating area, 600 square feet(26%) for the production area, and the

remaining 440 square feet(19%) for the customer service area.

This property is located in a commercial area with equal distances from

every corner of the city connecting affluent neighborhood with the busy

commercial area. The commercially zoned premises have the necessary water

and electricity hookups and will require only minor remodeling to accommodate

the sitting place, kitchen and storage area. The shops open and clean interior

design with modern wooden dcor will convey the quality of the served food

items, beverages and snacks and will be in-line with the establishments

positioning as an eclectic place where people can relax and enjoy their cup of

coffee. The clear window displays, through which passerby will be able to see

customers enjoy their beverages, and outside electric signs will be aimed to grab

the attention of the customer traffic.


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3.0

3.1 PRODUCT AND SERVICE DESCRIPTION

TB offers a broad range of coffee, espresso, and tea products, all from high

quality grown coffee beans and tea leaves. It caters to all of its customers by

providing each customer coffee, espresso and tea products made to suit thecustomer, down to the smallest detail.

Products

There are two different categories of people Vegetarians & Non-Vegetarians.

TASTY BITES is serving both the categories of customers.

1.

Vegetarian

Fried Dal.

Rice.

BaatiChokha.

Shahi Paneer.

Kaju Korma.

Mushroom.

Sweet corn.

Mix-Veg.

Puri (Methi, Aata, Paneer, Palak, etc)

PRODUCTS AND SERVICES


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Naan.

Sweet Dish(Rash gulla, Rashmalai, Malai Sandwich, etc)

Achar.

Chatni (Meethi & Khatti)

Paapad.

Etc.

2.

Non-Vegetarian

Chicken Chilly.

Mutton. Etc

Fish fry.

Kabab

Rosted Chicken.

Egg Curry

Chicken-do-pyaja.

Chicken Handi.

Chicken lollypop

Etc .

3.

Foreign Cuisines

Lasagna

Burrito

Pasta

Macroni

Baloni


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4. Coldrinks.

Cold Coffee.

Coldrinks.

Sikanjee.

Lime Soda.

5.

Hot Drinks

Tea.

Coffee.

Black tea.

Etc.

6. Hard Drinks.

7. Ice-Cream.

8.

Salad

9.

Etc.

Suppliers

There are many suppliers which gives us the products such as:-

Kerana store.

Aasiyana Resturants for dairy product like paneer etc.

Chicken Corner.

Etc.


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SERVICES

1. Birthday Parties

2.

Dance Parties

1.2 SALES LITERATURE

Two thousand flyers will be distributed in the adjacent neighborhood, at

the malls and in the selected office buildings within two weeks prior to the

opening of TASTY BITES. Subsequently, free postcards with TASTY BITES

endorsement will be printed to increase the company visibility among the

patrons.

The advertisement will also be made using the source of internet and

e-marketing will be used as a source to do marketing.


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4.0

TBs focus is on meeting the demand of a regular local resident customer base,

as well as a significant level of office people, students and locals from the nearby

area.

4.1 MARKET SEGMENTATION

TB focuses on the middle and upper-income markets. These market segments

consume the majority of vegetarian and non-vegetarian food items. TB wants to

establish a large regular customer base. This will establish a healthy, consistent

revenue base to ensure stability of the business. TB will focus its marketing

strategies on reaching the students, people working in offices located close to the

shop and on sophisticated teenagers. Our market research shows that these are

the customer groups that are most likely to buy the offered products.

4.2 TARGET MARKET SEGMENT STRATEGY

The dominant target market for TB is a regular stream of local residents,

office workers, students, and teenagers. Personal and expedient customer service

at a competitive price is the key to maintaining the local share of this target

market.

MARKET ANALYSIS SUMMARY


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FIGURE 1.1

48%

17%

20%

15%

MARKET ANALYSIS (PIE)

OFFICE WORKERS

STUDENTS

TEENAGERS

OTHERS


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4.3 MARKET NEEDS

Due to the availability of few good eating places for the working class in the

region there will be high demand for food items being served by our restaurant.

Our main objective will be to serve high quality food items at reasonable price.

4.4 SERVICE BUSINESS ANALYSIS

The restaurant and food joints industry in Lucknow has recently

experienced rapid growth. The people are finicky about the quality of food being

served and variety of foods items offered. Despite low competition in the

immediate area, TB will position itself as a place where customers enjoy a good

meal and spend quality time with friends and family in a relaxing environment.

4.4.2 Main Competitors

The main competitors of TASTY BITES will be :

Charans Club & Resort Pvt. Ltd.

Small Restaurants

Local bakery and coffee vendors


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5.0

TB will succeed by offering consumers high quality foods items, beverages and

services with personal service at a competitive price.

5.1 COMPETITIVE EDGE

TBs competitive edge is the broad range of superior quality and freshly made

products and relatively low level of competition in this particular niche.

5.2 MARKETING STRATEGY

TBs marketing strategy will communicate to the target customer segments that

its product clearly exceeds all of the competitors. The strategy will employ

several methods to communicate the message. The first will be a print

advertising campaign. A second method that TB will use to get out the word

will be by having several different representations. Any person offering order of

more than Rs. 300 will get an extra pastry of to make the customer taste the

different products available. To develop awareness of the superior product

offerings, TB must offer a superior level of customer service to support the

products. TB recognizes that you cannot solely compete on product alone, that

much of the transaction involves excellent customer service.

STRATEGY AND IMPLEMENTATION


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5.3 SALES STRATEGY

The sales strategy recognizes the need for the company as a whole to back up its

superior product offerings with excellent service. This mantra is importantbecause if there was not a service organization to back up the product, there

would be no customers after the second or third purchase. Consequently, the

sales strategy will focus on customer support and making customers experience

with TB as positive as possible. This strategy will use account managers that

look after individual customers, ensuring that their needs are being met. The

account managers will be responsible for a certain number of existing accounts

as well as will be provided the resources to attract new accounts.

As the chart and table show, TB anticipates sales of about Rs. 1 crores in the first

year, Rs. 1.2 crores in the second year and Rs. 1.3 crores in the third year.


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5.4 WEBSITE MARKETING STRATEGY

A website will be used to provide information regarding TB, food items and

other beverage/services offered to current and prospective customers. The sitewill be used for informational purpose; it will be not initially used for commerce

purposes. Once the organization has been operating for a while they will

reconsider the demand for food items and services will be booked via the

website.

The marketing strategy for the website will attempt to develop awareness for the

website thereby directing people to the site for more information regarding thecomplete line of products-coffee, tea and bakery products that TB offers. TB will

make sure that all of the TBs promotional material will have the URL for the

website, encouraging people to visit the site.

As mentioned before, the website will be used as a source of information.

Because it will not, at least initially, have an e-commerce component to it, the

development requirements will not be that significant. TB will leverage thetechnical expertise of a computer science graduate (who typically works at below

market wages) to develop the informational site.


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6.0

Mr. Prashant Pandey has 5 years experience in HR and administration,

management and was the Manager of the Food Department in Carlton Hotel. Mr.

Anirudh Pal is a Management Graduate in Marketing and Finance from ISBM,

Pune. He has 4 years of rich experience in sales, marketing and management of

various products which will be very beneficial for the company. Mr. Anil Kumar

will be the Chief Financial Officer and will be responsible for looking after thefinancials of the company. Mr. Anil is a Management Graduate in Finance from

University of Lucknow and knows how to implement various strategies

effectively in order to boost-up the sales.

Mr. Prashant Pandey will be the manager of the store and will be present full-

time for looking after the needs of the store. He will be responsible for managing

the staff, ordering inventory, dealing with suppliers, and perform other daily

managerial duties. Mr. Anirudh Pal will be involved and will be present part-

time for sales, developing marketing strategies and applying them and

administration of the business. Mr. Anil Kumar will be available part-time and

look into the accounts and financials of the company.

MANAGEMENT SUMMARY


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6.1 PERSONNEL PLAN

The table below outlines the personnel needs of TASTY BITES:

TABLE 1.2

YEAR 1

(in Rupees-

lakhs)

YEAR 2

(in Rupees-

lakhs)

YEAR 3

(in Rupees-

lakhs)

MANAGER 5 6 7.5

MARKETING MANAGER 4.5 6 7

HELPER(3) 1.8 2.7 3.24

CHEF(2) 3.6 5.4 6.48

BILLING 1 1.3 1.5

GUARD & SWEEPER (2) 0.96 1.1 1.3

WAITERS(7) 2.1 2.3522 2.688

ADDITIONAL EMPLOYEES - 1 1.5

TOTAL 18.96 25.8522 31.208


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1.0

The business plan involves an initial investment of Rs. 5,00,000 from the

founder Mr. Prashant Pandey, plus another Rs. 10,00,000 from the Marketing

Manager, Mr. Anirudh Pal, a Five-year loan of Rs. 15,00,000 and a 10-month

interest free loan from Mr. Anil Kumar. Much as we did like to bootstrap this

business without initial investment, it just is not worth it. The rest of the plan isreasonably conservative, but there does have to be money at risk.

The bank loan will be secured with real estate owned by the Founder, Mr.

Prashant Pandey.

7.1 SOME IMPORTANT ASSUMPTIONS

There are few important assumptions which are important in order to predict the

cash flows and sales and revenues for the next three years. These assumptions

are summarized below:

FINANCIAL PLAN


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TABLE 1.3

PARTICULARS YEAR 1 YEAR 2 YEAR 3

PLAN MONTH 1 2 3

CURRENT INTEREST RATES 10% 10% 10%

LONG TERM INTEREST RATES 10% 10% 10%

TAX RATES 30% 30% 30%

OTHERS 0% 0% 0%


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7.2 PROJECTED PROFIT AND LOSS

As the TASTY BITES Profit and Loss Table below shows, it expects to

continue its steady growth in profitability over the next three years of operations.

TABLE 1.4

PRO-FORMA PROFIT ANS LOSS

YEAR 1

(in lacs)

YEAR 2

(in lacs)

YEAR 3

(in lacs)

SALES 100 120 130

Direct Cost of Sales 20 25 20

Other Expenses 18 20 23

TOTAL COST OF SALES 38 45 43

Gross Margin 62 75 87

Gross Margin (%) 62% 63% 67%


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EXPENSES

Payroll 20 22 30

Sales, Marketing & Other Expenses 15 17 18

Depreciation - - -

Insurance 3 3 3

Utilities 1 1 1

Payroll Taxes 4 5 8

Other - - -

TOTAL OPERATING EXPENSES 43 48 60

Profit before Interest and Taxes 19 27 27


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EBIT 19 27 27

Interest @ 10%1.9 2.7 2.7

Taxes Incurred 5.13 7.29 7.29

Net Profit 12 17 17

Net Profit / Sales12% 14.17% 13.085

7.3 PROJECTED CASH FLOW

With the financing plan as projected, the business remains cash positive

throughout the first three years of its operations. During year two and three, it isexpected that a significant amount of cash will be used to upgrade facilities and

purchase new equipment.


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TABLE 1.5

PROJECTED CASH FLOWS

YEAR 1

(in lacs)

YEAR 2

(in

lacs)

YEAR 3

(in

lacs)

CASH RECEIVED:

Cash from Operations

Cash Sales 100 120 130

Subtotal Cash from Operations 100 120 130

Additional Cash Received

Sales Tax, VAT, GST Received - - -

New Current Borrowing - - -

New Other Liabilities - - -

New Long Term Liabilities - - -

Sale of Other Current Assets - - -

Sale of Long Term Assets - - -

New Investment Received - - -

Sub-total Cash Received 100 120 130

EXPENDITURES

Expenditures from Operations


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TABLE 1.6

PRO-FORMA BALANCE SHEET

YEAR 1

(in

lacs)

YEAR 2

(in

lacs)

YEAR 3

(in

lacs)

ASSETS

Current Assets:

Cash 10 9 9

Inventory 6 7 5

Other Current Assets 4 5 3

Total Current Assets 20 21 17

Long Term Assets

Long Term Assets 24 28 26

Accumulated Depreciation - - -

Total Long Term Assets 24 28 26

TOTAL ASSETS 44 49 43

LIABILITIES AND CAPITAL

Current Liabilities:

Accounts Payable 8 8 9


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Current Borrowing 6 - -

Other Current Liabilities - - -

Subtotal Current Liabilities 14 8 9

Long Term Liabilities

Total Liabilities 14 8 9

Paid-in Capital 10 10 10

Retained Earnings 6 14 7

Earnings - 17 17

Total Capital 31 41 34

TOTAL LIABILITIES AND CAPITAL 44 49 43


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Organizational Structure:-

TASTY BITES shall be managed primarily by working owners/partners. The

company will engage more of a functional organization structure whereby peopleshall be focusing on their prime area of expertise. However in engaging this

organization structure we intend to ensure that there is open communication

between all personnel at all levels. With such a group we believe it will be

simple to communicate with and support one another. Our organizational

structure demonstrates the importance we shall put on our customers, and

ensuring their satisfaction in utilizing our services.

As the company grows there will be more structure to the utilizing, with new

employees being assigned a supervisor or subordinate. When the company is at

its full staff potential, it will operate as any closely held utilizing, but maintain

the personal interest in each employee's personal and family welfare and their

contributions to the business.

We acknowledge the fact that successful recruiting, motivation, and discipline

procedures are keys to the growth of the utilizing. Hence we intend to promote

and maintain good labour relations, strong morale and high quality work per

employee through undertaking the following:


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Owner

Head of Department

Supervisors

Workers

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