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Indiana Beinvenido

Prepared by:

Akhil Das

Saptarishi bhattacharya

k. Shiva prakash

Siddharth sahu

A Chillean Resturarant

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Introduction

Well known name in Indian hospitality industry.

Currently operating in northern and central India.

Costs in this plan are on the basis of industry trends.

Business plan is derived from detailed market analysis.

A buffered financial plan that ensures adequate capitalization.

A solid risk mitigation plan.

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Mission

Indiana Beinvenido, will be an inspiring restaurant, combining an

electric atmosphere with excellent food and quality service.

Customer satisfaction.

For all age groups.

Employers welfare and equality.

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Objective

Keeping food costs at less than 35% of revenue

Keeping employee labor cost between 37-39% of total sales

Promoting and expanding the Indiana einvenido restaurant

concept.

Expanding our marketing and advertising

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Why Chile??

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Mode of Entry

Franchising Licensing Joint venture

Foreign Direct Investment

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SWOT Analysis

1.1 Strength

Experience in running restaurants

Brand awareness among high and middle class customers in India

Cash reserves ofINR 50 Crore for expansion into foreign markets

Young and Dynamic Management Team

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1.2 Weakness

No presence outside India

Little knowledge of Chilean Culture, Traditions and Customs

No Backing by Venture Capitalists

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1.3 Opportunities

Tourism

Easter Island Atacama Desert

Santiago Beach Vina De Mar

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Opportunities Continued

Growing luxury and upper scale hotel markets in Chile

Considerable spending on food services by Tourists

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1.4 Threats:

Other Brands pose challenge

Economy risk- Dependence on copper price and adequate

food supply

Financial risk- Depreciation of Chilean peso to USD due to

global turmoil

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Pest Analysis

Political

Economy

Social

Technology

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Business strategy and

implementation

Marketing strategy

1. Marketing plan

1.1 Segmentation

CLASS JOBS INCOME % OF

POPULATION

High Big business, aristocrats, highly trainedprofessionals $72,000 ormore pa 10%

Middle Small business, lower professionals,public employees, teachers

$6000-60000pa

60%

Low Indigenous groups, retirees, students,small farmers, servants

$900- 6000 pa 30%

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1.2 Targeting

Average household income in Santiago $29,062

Total Population of Chile in Santiago, Greater Valparaiso, Greater Concepcion 68,98,654

Total Population of Chile in Santiago, Greater Valparaiso, Greater Concepcion in the High

and Middle Class 48,29,057

Average Number of Person per Household = 4

Total no. of households in Santiago, Greater Valparaiso, Greater Concepcion= 12,07,264

Total number of tourists : 28,00,000

60% tourists arrives at Santiago and Valparaiso = 16,80,000

We aim to capture atleast 20% of the tourists arriving at Santiago and Valparaiso and 10% of

the local people =

8,18,906 customers/year

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1.3 Positioning

Menu

Chef

Environment

Services

Technology

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2. Marketing mix

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Financial plans

Total investment including all 3 restaurants is approximately 33

cr.

The pay-back period will be around 10 years .

The company is looking for long term prospects in the country.

The return on the investment is going to come in form of strong

brand value and market position.

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Start-up Capital Requirements

Start-up ExpensesEstimatedcosts (inlac Rs.)

Items

Advertising 500Yellow Pages, News Papers,

Print Media, Television

Starting Inventory 30 Food for Restaurant

Building construction 350 Lumber, electric, plumbing, etc.

Cash 25

Decorating 30Linens, Pictures, rugs,

furniture, etc.

Deposits 10 Electric, Phone, Water, Etc.

Fixtures and equipment 40Kitchen supplies, smoke

detectors, sprinklers lights, etc.

Insurance 40

Licenses, permits, and fees 20

Computers 3 1 or 2 computers

Security 12C.C.tv cameras, smoke

detectors etc.

Services 10 Lawyer, accountant, trash, etc.Signs 5 Entrance signs

Supplies 3 Paper, cleaning, office supplies

Unanticipated expenses 15

Total Start-up Costs 1093

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Table 2

Pro Forma Profit and Loss (figures are in lack Rs.)

Year 1 Year 2 Year 3 Year 4 Year 5

Sales 400 480 530 580 640

Direct Cost of Sales 90 108 119 130 144

Gross Margin 310 372 411 450 496Expenses

Payroll 80 96 106 116 128

Amortization

(Marketing/Promotion)

100 100 100 100 100

Depreciation 70 70 70 70 70

Accounting/Payroll Processing 0.8 0.9 1.0 1.1 1.2

Legal Retainer Fees 1.2 1.4 1.6 1.8 1.9

Business Licenses & Permits 0.6 0.7 0.8 0.9 0.9

Music & Entertainment 0.5 0.6 0.7 0.7 0.7

Repairs & Maintenance 1.3 1.5 1.8 2.2 2.2

Utility Services(Gas/Electric/ ater/Sewer)

5 6 7 8 9

Telephone/Communication Expense 2 2.3 2.5 2.8 2.8

Insurance:Fire/Theft/Liability/Liquor/Product

1 1.2 1.4 1.5 1.8

Dishware/Uniforms/Cleaning

Supplies/Decor

3.2 3.5 3.6 3.8 4.0

Printing/Paper/Postage/Subscriptions 3 3.1 3.2 3.2 3.2

Facility (Exterior Cleaning/GreaseTrap/Hood/ indows,etc.)

4 4.5 5.0 5.3 5.4

AOther Expenses (ComAreaMaint,etc.)

3 3.3 3.7 4.2 4.5

Total Operating Expenses 275.6 295 308.3 321.5 335.6

Profit Before Interest and Taxes 34.4 77 102.7 128.5 160.4

Taxes Incurred 5.8 13.1 17.5 21.8 27.3

Net Profit 28.6 63.9 85.2 106.7 133.1