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“SETTING UP OF A FOOD CHAIN BUSINESS IN INDIA”

Submitted by

DEVANG JOSHI

MFM – Sem V

Roll No.14

Under the Guidance of

‘Prof. M.P.REGE’

In partial Fulfillment of

MFM course

University of Mumbai

(2008-2011)

Prin.L.N.Welingkar Institute of Management Development & Research

Matunga, Mumbai- 400019.

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CERTIFICATE FROM GUIDE

This is to certify that the project entitled "Setting up of food chain

business in India" is successfully done by Mr. Devang Joshi during the

Third year of his course in partial fulfillment of the Masters Degree in

Financial Management under the University of Mumbai through the

Prin.L. N. Welingkar Institute of Management Development & Research,

Matunga, Mumbai-400 019.

This project represents the work done by Mr.Devang Joshi.

This project in general is done under my guidance.

Date : 10/10/2010 Signature of the Project Guide

Name of the Project Guide: - Prof. M.P. Rege

Address:-

Mobile No: - 9820106435

Email ID: - mprege@gmail.com

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ACKNOWLEDGEMENT

It is with great pleasure that I wish to express my deep sense of

gratitude to Prof. Mr. M.P. Rege who provided invaluable guidance and

was a constant source of inspiration throughout the project. I would also

like to thank all my colleagues and Welingkar Institute of Management

Development & Research for their keen interest, encouragement and

valuable guidance during the various phases of preparation of this project.

Lastly I would like to thank all my friends and well wishers who

extended their valuable co-operation towards this project.

Devang Joshi.

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SETTING UP OF FOOD

CHAIN BUSINESS

(WAFFLE) IN INDIA

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CONTENTS:

INTRODUCTION

TRENDS OF FAST FOOD IN INDIA

EXECUTIVE SUMMARY

DESCRIPTION OF BUSINESS

MARKET ANALYSIS

COMPETITIVE ANALYSIS

DESIGN & DEVELOPMENT PLANS

OPERATIONS & MANAGEMENT PLANS

FINANCIAL COMPONENTS

CONCLUSION

BIBLIOGRAPHY

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INTRODUCTION

INDIA – A FAST GROWING FOOD AND DRINKS

MARKET

The Indian food and drinks market is one of the fastest growing markets in the

world. India has the second largest population in the world, with diversified

food habits. Such a vast population and diverse eating habits make India one of

the most attractive retail destinations across the globe. Increasing purchasing

power, changing lifestyle, growing nuclear families and influence of western

culture are the key drivers of the Indian food and drinks market.

The Indian food and drinks market has observed strong growth over the past

few years. Economic liberalization and rising income of middle class population

have had a positive impact on consumer spending and consumption in both

rural and urban areas. Indian consumer now spends a significant proportion of

disposable income on food and other essential commodities. Several other

factors like demographic and macro economic conditions have also given fillip

to expenditure on food and beverages in the country.

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The research report “Indian Food and Drinks Market: Emerging Opportunities”

has projected that the Indian food and beverages market will grow at a CAGR

of around 7.5% during 2009-2013 to around US$ 330 Billion by 2013. All the

segments registered uptrend in terms of consumption and sales between 2005

and 2009. The organic, packaged food and ready-to-eat food have also seen

strong demand as life in metros become more hectic and busy. People look for

healthy and ready to eat food to avoid time wastage on preparation. Thanks to

negligible time in preparation and convenience, urban consumers (particularly

service class) have imbued these foods in their lives.

TRENDS OF FAST FOOD SNACK IN

INDIA

Quick food outside the home or workplace has become an essential part of

lifestyle in India over the past decade. McDonald’s, Pizza Hut, Domino’s Pizza,

Subway and Nirula’s fast food chains have outlets in every nook and cranny of

large cities. They efficiently serve burgers, fries, chicken nuggets, hot dogs,

sandwiches and drinks to the busy person who doesn’t have more than five

minutes to spare for his meal. Fast food has also rapidly gained popularity

among the youth ever since its emergence. It is the youth’s idea of a quick and

tasty lunch on-the-go.

Why fast food?

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It’s tasty, economical and only a drive-through or phone call away.

EMERGENCE

In India, fast food culture emerged in the decades after independence, starting

from the 1950’s. Eating at home used to be a significant aspect of Indian

culture, so the change was gradual. Over a period of time, with a growth in the

number of nuclear families, economic growth and increasing per capita income

as well as globalization, fast food culture gained prominence. Women were

shifting from their conventional roles of managing the household and taking

care of the children. With growth in literacy, they started joining the workforce

in large numbers. Fast food became a time-saving alternative to cooking for

them.

Similarly, children resorted to fast food to fill their stomachs in school and

college. Their exposure to global urban culture and Western cuisine

accelerated their want for cheap and delicious fast food. Moreover, fast food

costs less than traditional long meals commencing with appetizer and

concluding with dessert.

Nirula’s and Pizza Corner – India’s most popular domestic fast food chains –

gained rapid popularity during this period. Though the fast food culture

originated abroad, these domestic food chains could create a perfect blend of

international food with Indian ingredients. Paneer pizzas and aloo tikki burgers

were indeed able to satisfy Indian taste buds.

With the liberalization of the economy in 1992, new multinational fast food

giants started dotting India with their outlets. Burger King, Wimpy’s, Pizza

Hut, Domino’s Pizza, McDonald’s, and KFC outlets can be seen today in nearly

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every shopping mall and other public areas. In fact, these multinationals have

given their domestic counterparts a run for their money. They are growing at a

much faster pace than the Indian chains.

REASONS FO EMERGENCE

Gender Roles: gender roles are now changing. Females have started working

outside. So, they have no time for their home and cooking food. Fast food is an

easy way out because these can be prepared easily.

Customer Sophistication and Confidence: consumers are becoming more

sophisticated now. They do not want to prepare food and spend their time and

energy in house hold works. They are building their confidence more on ‘ready

to eat and easy to serve’ kind of foods

Paucity of Time: people have no time for cooking. Because of emergence of

working women and also number of other entertainment items. Most of the

time either people work or want to enjoy with their family.

Double Income Group: emergence of double income group leads to increase

in disposable income. Now people have more disposable income so they can

spend easily in fast food and other activities.

Working Women: working women have no time for cooking, and if they have

then also they don’t want to cook. Because they want to come out of the

traditionally defined gender roles. They do not want to confine themselves to

household work and upbringing of children’s.

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Large population: India being a second largest country in terms of population

possesses large potential market for all the products/services. This results into

entry of large number of fast food players in the country.

Relaxation in rules and regulations: with the economic liberalization of

1991, most of the tariff and non tariff barriers from the Indian boundaries are

either removed or minimized. This helped significantly the MNC’s to enter in

the country.

Menu diversification: increase in consumption of pizzas, burgers and other

type of fast foods.

IMPACT OF FAST FOOD IN INDIA

The emergence of the fast food industry has, to an extent, transformed urban

food culture in India. The fast food industry is growing at 40% per annum and

generates over Rs. 4800 crores in sales. The multinational segment of the

industry generates over Rs. 7000 crores.

Fast food has, in a way, impacted the Indian economy by creating jobs. Outlets

require a large number of unskilled workers who are willing to work for low

wages and this generates widespread employment.

PLANNING COMMISSION ON FAST FOOD IN INDIA

Planning Commission - Report of Task force on Employment Opportunities has

emphasised the need for developing the food processing sector which would

help diversify the rural economy and expand employment in the non

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agricultural sector. It calls for active involvement of larger units including

MNC’s and cooperatives where possible and have suggested various measures

to bring about the desired changes in this sector by

Establishment of chain from marketing at the one end to farming at the

other. Major national and international food processing companies should

be approached to ascertain the nature of the problems which limit their

activities at present.

Do away with the multiplicity of regulations related to food processing

which needs to be integrated into a single Food Act and a single Food

Regulatory Authority.

An urgent review of the Prevention of Food Adulteration Act is required

as its administration is extremely restrictive to the growth of this sector.

Government should focus on R&D, information dissemination and

development of rural industrial estates like food parks, logistics centres

etc.

A report on Food Security and Nutrition: Vision 2020

A report on Food Security and Nutrition addresses the issues of availability and

food energy intake at household levels. The report focuses on the nutrition and

calorie intake with required norms and has called for the private participation

to ensure the availability of healthy nutritive food for the urban and rural

masses thereby eradicate the instances of malnutrition from the country.

Strategic Intervention by The ministry of Food Processing Industry:

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The Ministry has to be strengthened appropriately, to meet the challenges in

implementing various new initiatives proposed for energizing the food-

processing sector in the country.

The priority areas identified for intervention therefore are:

Infrastructure development

The food park scheme is proposed to be modified into a scheme for an

Integrated Food Zone/Mega Food park

Modernization of Abattoirs and setting up of National Meat Board

Cold Chain, Value Addition and Preservation infrastructure (Cold

storages, Reefer vans

Irradiation Centres

Research and development – Products, Technology, Quality and Skills

Capacity Building – Human Resource Development, Research &

Development, Quality, Safety, Related Infrastructure

Implementation of Food Safety and Standards Act, 2006.

Establishment of NIFTEM

Modernization of PPRC, Thanjayur into a National Crop Processing

Center

Upgrading safety and quality of street food and establishing food streets

in identified

Wine Sector Development- Establishment of Wine Board

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PROBLEMS OF FAST FOOD INDUSTRY

There are some problems fast food industry is witnessing now a day’s which

are listed as under:

Environmental friendly products cost high: Government is legislating laws

in order to keep check on the fast food industry and it is emphasizing more on

the usage of bio-degradable and environment friendly products. But associated

with this issue is the problem that fast food player faces - the cost associated

with the environment friendly product. They cost much higher than the normal

products that companies uses for packaging or wrapping their products.

Balance between societal expectation and companies economic

objectives: To balance a society’s expectation regarding environment with the

economic burden of protecting the environment. Thus, one can see that one

side pushes for higher standards and other side tries to beat the standard back,

thereby making it a arm wrestling and mind boggling exercise.

Health related issues: obesity: Studies have shown that a typical fast food

has very high density and food with high density causes people to eat more

then they usually

need.

Overall, the fast food industry has been very successful in India, both in

financial terms as well as in popularizing its quick service culture among the

population.

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EXECUTIVE SUMMARY

WAFFLE NOW!

Franchises continue to be the most secure form of small business start-up,

requiring less money and less risk than a brand new venture. The franchiser

often supplies assistance, ranging from financing to hiring and training staff.

This plan details a fastfood franchise that specializes in quick and healthy

Waffle dishes.

The market demand has never been greater for food that is healthy,

economically priced, and great tasting. India is a market with wide open

potential for growth. Traditionally, Waffle has been consumed in the morning

as a breakfast food item but we see Waffle has the potential to be at the center

stage as a product that both tastes good and is good for you, Waffle Now! has

positioned itself to provide the services in demand by the Indian consumer: a

variety of healthy Waffles, moderately priced and with very good taste. The

basic focus is to provide the consumer with a healthy, quality meal which is

economically priced. This is a concept that will never grow old.

Waffle Now! is a franchise system with ongoing support from the national

franchisor. National assistance includes site selection, restaurant design,

comprehensive training, and support of ongoing operations through marketing

assistance, quality control programs, research and development.

Waffle Now! of Mumbai, India will require a total financial commitment of Rs.

50,00, 000. The franchise fee for the Mumbai Fountain store will be Rs 5,

00,000, with an additional Rs 7, 50,000 to purchase the rights for all of South

Mumbai A, B, C and D ward. The remaining money will be used in opening the

first Mumbai store at Fountain in Fort Area.

Waffle Now! of Mumbai will have the right to sell stores throughout

Maharashtra and India. As these additional franchises are sold, Waffle Now!

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will retain Rs 3,75,000 of each franchise fee paid. Monthly royalties from each

of these Mumbai stores will be 3% of gross.

DESCRIPTION OF BUSINESS

PRODUCTS/SERVICES

The Waffle Now! menu is centered around a variety of Waffle dishes with a

variety of sauces. For diversity, Waffle Now! also offers mini pizzas, sandwiches

and a selection of salads. Waffle Now! menu items are available for eat-in or

take-out. Waffle Now! also features a complete party menu. Catering for any

size occasion is available.

The service will be exceptional. The#l goal of each employee will be customer

satisfaction. Waffle Now! believes in the motto, "the customer is always right."

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In today's society, where customer service is often lacking (or nonexistent), we

will structure our business to provide the best service possible in a friendly,

helpful atmosphere.

GEOGRAPHICAL AREA

Waffle Now! will draw customers primarily from Mumbai, with some

penetration in to neighboring areas.

Waffle Now! will draw on the Mumbai community's growing reputation as a

Central Business District. Waffle Now! franchises are structured to operate in

areas with populations between 200,000 and 300,000 people.

There are no physical limitations to the market area since the Mumbai location

is well served by all means of transportation. There are many competing, well-

established fast food outlets in the area; however, none of them are currently

providing a similar product.

MAJOR CUSTOMERS

Waffle Now! relies on customer volume mainly those who are employees

working in an organization in an around the Central Business District of

Mumbai. The major customers group can be categorized as:

Office Staff

State employees

School Children

College Students

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Tourist

FACILITIES/EQUIPMENTS

Waffle Now! is structured to operate in strip mall-type locations. The corporate

headquarters provides detailed site selection assistance, including lease

negotiations.

Waffle Now! is designed to function in a 500 to 1000 square-foot store. A drive-

up window can be utilized if a suitable site for such is located.

Prospective sites which have been preliminarily identified include; The east

west Metro Rail Corridor from Versova to Ghatkopar which includes prime

stations like Andheri, Chakala , Saki Naka etc.

The equipment necessary for the operation of Waffle Now! Will be purchased

from any of the several restaurant supply companies located in Mumbai and

New Delhi.

ORGANIZATION

Waffle Now's staff will be divided into two functional areas, Operations and

Administration. Each division will he headed by one of the principals.

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MARKET ANALYSIS

GEOGRAPHY/DEMOGRAPHICS

The national trend toward eating out has increased over the last 5 years. In

2005, the amount of money spent on eating out was equal to what was spent

for consumption inside the home. This is the first time that consumers spent as

much for "eat out" food as they did for "at home" food. The market demand has

never been greater for food that is healthy, economically priced, and great

tasting. The recent health-oriented menu options added to national chains like

Mc. Donalds and Pizzahut, point to the nation's desire for healthy food. In an

analysis of dining, Restaurant Business Magazine noted that Indian families

specially those living in the urban cities of Mumbai, Delhi, Bangalore,

Hyderabad and Pune are becoming food conscious and prefer having a food

which is healthy, tasty and easy to digest. With that realization has come more

emphasis on healthy dining alternatives like Waffle.

CUSTOMERS

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The customers for restaurants in the geographical area served by Waffle Now!

can be categorized as follows:

Office Staff

State employees

School Children

College Students

Tourist

There are several identifiable characteristics of the market area that determine

the segmentation as listed. Since this area is well known for the office

premises, the office employees that usually travel from Mumbai Suburbs in the

morning rush often have breakfast and lunch out which they find it convenient

and affordable. Also Fort area has residential lanes, and the families living

there are outgoing and tend to dine out usually on weekends. According to

Indian Demographics Magazine, families in Mumbai eat out an average two to

three times per week.

Moreover Fort Area boasts of as many as 8 schools and 7 Colleges in and

around Fort. Hence the school children and collegiate are in good numbers in

this area and have their meals outside.

Since South Mumbai is such a busy area, there are a large number of tourists

and state employees who are looking for a place to take lunch. Waffle Now! can

satisfy their needs.

ASSUMPTIONS

The strategic goals and plans for Waffle Now! are based on the following

assumptions:

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The national and local trends toward consumption of healthy food will continue.

All indications from national publications consulted agree that healthy food

which is reasonably priced will continue its popularity well into the next

century.

The trend toward dining out will remain steady. Indications are that dining out

will actually increase over the next five to seven years.

SUPPLY & DEMAND

The restaurant industry in the India has been characterized by rapid change.

During the 50's and 60's, dining out was a new experience for a country feeling

the effects of independence. Also, the various wars have increased the

awareness of many Indians with foods from different cultures. This has

spawned a trend toward restaurants featuring food from Europe and America.

An Indian original, the dinner, spread across the country and soon evolved into

chain restaurants operated by local and regional corporations. During this

period, a new restaurant concept grew up from the udipi restaurants and

sandwich stands. The fast food restaurant was started from such humble

beginnings and quickly multiplied.

Over the next two decades fast food matured and changed at the same time to

meet the changing tastes of the public.

While fast food chains experienced significant growth, restaurants evolved also.

During the late 60's and 70's, "natural" food restaurants became popular, only

to give way to nouvelle cuisine in the 1990's. The trend in the 2000's is to

healthy food low in fat, cholesterol and sugar.

The national restaurant industry includes approximately 125,000 restaurants

plus 235,000 fast food restaurants, according to the National Restaurant

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Owners Association (NROA). NROA estimates that combined restaurant sales

reached 4.5 billion Rupees last year.

The local market reflects the national trends. As Waffle has moved to the

center stage as a product that both tastes good and is good for you, Waffle

Now! has positioned itself to provide the services in demand by the Indian

consumer: a variety of healthy Waffles, moderate price, and very good taste.

GROWTH FACTORS

The number of restaurants will grow at an annual rate of 9-10% for the next

five years according to the estimates from National Restaurant Owners

Association.

The growth can be attributed to many factors, such as a continued trend

toward two income families, thus eating out more for lunches and having little

time to prepare a meal after work. The biggest potential for growth involves

food prepared for consumption, or take-out food. As the name Waffle Now!

implies, we are positioned to take advantage of either market segment.

The local population with regards to Fort area is steady but we see a more

influx of people who have shifted to Mumbai in search of Jobs and hence the

working population in the Mumbai Metropolitan region has seen a continuous

uptrend over a last decade and the trend is likely to continue in the coming

years with new infrastructure for commercial and residential purposes taking

place throughout this region.

PRODUCT LIFECYCLE

The restaurant industry is in a rapidly growing phase. Although this growth

trend means opportunities for increased sales volume and higher profit

margins, overhead must be closely monitored. The importance of quality

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control, purchasing, low overhead, advertising and marketing cannot be

overstated.

At all of the Waffle Now! franchise locations, customer loyalty has been

developed through its excellent service and popular menu. Attention must be

paid to trends, however, and changes should be made early in both the menu

and the decor before customers become bored and move on to a newer

experience.

PRICE STRUCTURE

Waffle Now! is structured to present good food and reasonable prices. As such,

Waffle Now! operates with food costs at 34% of gross. This figure is somewhat

higher than industry standards for the same type of menu; however, Waffle

Now! strives to maintain affordable prices. Waffle Now! will keep menu prices

at reasonable levels to attract the largest share possible from its demographic

base.

MARKETING PROCESS

Waffle Now! will market the food and service of its restaurant using a custom

designed campaign by the Lowe Lintas Advertising agency in Mumbai.

Advertising campaigns will utilize newspaper, radio, Email and direct mail

coupon marketing. Waffle Now! also markets its catering services through SMS

advertising to local businesses.

The ad agency has developed several creative direct mail promotions for use

throughout the Waffle Now! system.

COMPETITIVE ANALYSIS

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Waffle Now! will have no direct competition in the Mumbai market. City

records show that there are a total of 89 businesses listed in the broad

category of restaurants. Of these, 12 feature some form of Waffle as a menu

item. None of the local restaurants specializes in quality Waffle at affordable

prices in a fast food setting. However there are many fast food chains which

are operating aggressively in Mumbai, the profile of some are provided below.

KENTUCKY FRIED CHICKEN

About the Company

KFC Corporation, or KFC, founded and also known as Kentucky Fried Chicken,

is a chain of fast food restaurants based in Louisville, Kentucky. KFC is a brand

and operating segment, called a "concept" of Yum! Brands since 1997 when

that company was spun off from PepsiCo as Tricon Global Restaurants Inc. The

restaurants are known as Poulet Frit Kentucky or PFK in the province of

Quebec in Canada. In France, however, the chain is known as KFC. KFC

primarily sells chicken in form of pieces, wraps, salads and sandwiches. While

its primary focus is fried chicken, KFC also offers a line of roasted chicken

products, side dishes and desserts. Outside NorthAmerica, KFC offers beef

based products such as hamburgers or kebabs, pork based products such as

ribs and other regional fare.

Products

The famous paper bucket that KFC uses for its larger sized orders of chicken

and has come to signify the company was originally created by Wendy's

restaurants founder Dave Thomas. Thomas was originally a franchisee of the

original Kentucky Fried Chicken and operated several outlets in the Columbus,

Ohio area. His reasoning behind using the paper packaging was that it helped

keep the chicken crispy by wicking away excess moisture. Thomas was also

responsible for the creation of the famous rotating bucket sign that came to be

used at most KFC locations in the US.

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Menu items

KFC's specialty is fried chicken served in various forms. KFC's primary product

is pressure-fried pieces of chicken made with original recipe. The other chicken

offering, extra crispy, is made using a garlic marinade and double dipping the

chicken in flour before deep frying in a standard industrial kitchen type

machine.

Kentucky Grilled Chicken - This marinated grilled chicken is targeted towards

health-conscious customers. It features marinated breasts, thighs, drumsticks,

and wings that are coated with the Original Recipe seasonings before being

grilled. It has less fat, calories, and sodium than the Original Recipe fried

chicken.

KFC Business Strategy

KFC fast-food chains are currently under the restaurant division of PepsiCo

Incorporated. Some major threats include the changing attitudes of society

toward healthier eating habits, KFC has more than 9,800 outlets located in 77

countries. In marketing, KFC restaurants are not restricted from locating

within close proximity of other KFC restaurants. There are two alternative

strategies for KFC. The first strategy involves keeping PepsiCo beverage

division and snack foods division together, and a divestiture of PepsiCo

restaurant division; selling Taco Bell, Pizza Hut, and KFC.

Strengths

Strengths can be found internally in a company and can be used to the

company’s advantage. The strengths identified are as follows:

1. KFC's secret recipe.

2. Name recognition and reputation.

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3. PepsiCo's success with the management of fast food chains.

4. Traditional employee loyalty.

5. Improving operating efficiencies by reducing overhead and

Weaknesses

Weaknesses are also found internally like strengths. Weaknesses, however, can

limit a company’s potential. The weaknesses for KFC are identified as follows:

1. The many sales of KFC lead to a confusing corporate direction.

2. KFC has a long time to market with new products.

3. Conflicting cultures of KFC and Pepsi Co.

Problems

Through an analysis of the strengths, weaknesses, opportunities, and threats of

KFC, the following potential problem areas were identified:

1. No defined target market.

2. Health Conscious Consumers.

3. Increased Start Up Costs.

DOMINO’S PIZZA

ABOUT THE COMPANY

Domino's Pizza is one of the biggest and fastest growing international food

joints in South Asia. The very first Domino's Pizza outlet in India opened in Jan,

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1996 at New Delhi. Today, Domino's Pizza India has become a wide network of

Pizza delivery and food chain. There are close to 220 outlets in 42 cities of

India and the brand is the top most among the food delivery business. Domino’s

Pizza outlets can be seen at major locations of Delhi and NCR. Their home

delivery is free with a guarantee of “Thirty Minutes Nahi to Free”. Although

they are expert in delivering Pizzas on time, their eating joints and outlets are

also good. They plan to have a total of 500 stores in 75-80 cities by 2010 to

2011. It would entail an investment of Rs 200 million during the period.

MARKET GROWTH

During last four months, dominoes have opened outlets in Jammu, Panipat,

Surat, Baroda, Nashik, Trivandum, Meerut and Patiala. While earlier, 70

percent of our business used to be in metros and mini-metros, now the ratio is

50:50 between big cities and smaller Tier II and III cities. Domino’s Pizza is

expanding its base in India by opening 500 outlets to add to its current tally of

156 outlets, across 50 cities in India by 2011 with an investment of Rs.1, 000

crore.

MARKET STRATEGIES

1. Promotional and Advertisement Campaigns(Coupons and discounts)

2. The '30 Minutes' Promise

3. Use of Technology(Digital interactive Television, Internet on the PC, Mobile

telephony)

4. Premium Pricing Strategy

5. Indian fast food industry and entry of multinational players

6. Distribution strategies of fast food chains in India

MARKET SHARE

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The organized pizza market in India is worth Rs.500 crore and Domino’shas a

substantial 45% market share, and registered a healthy growth of 60% over

last year. The main target for new outlets shall be metro cities though Tier II

cities would also receive a fair amount of attention. Currently Domino’s sells

around 35,000 pizza every day, of which around 1% are given free on account

of its “30 minutes or free” model. 65 percent of its revenue comes from home

delivery service; around 35percent is from sales in premise.

Mc. DONALD’S

McDonald's is the leading global foodservice retailer with more than 31,000

local restaurants serving more than 58 million people in 118 countries each

day. More than 75% of McDonald's restaurants worldwide are owned and

operated by independent local men and women. The powerful combination of

entrepreneurial spirit and System wide alignment around their Plan to Win

enables them to execute the best ideas with both large-scale efficiency and

local flair.

PRODUCTS

McDonald's predominantly sells hamburgers, various types of chicken

sandwiches and products, French fries, soft drinks, breakfast items, and

desserts. In most markets, McDonald's offers salads and vegetarian items,

wraps and other localized fare. Portugal is the only country with McDonald's

restaurants serving soup. This local deviation from the standard menu is a

characteristic for which the chain is particularly known, and one which is

employed either to abide by regional food taboos (such as the religious

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prohibition of beef consumption in India) or to make available foods with which

the regional market is more familiar (such as the sale of McRice in Indonesia).

ADVERTISING

McDonald's has for decades maintained an extensive advertising campaign. In

addition to the usual media (television, radio, and newspaper), the company

makes significant use of billboards and signage, sponsors sporting events

ranging from Little League to the Olympic Games, and makes coolers of orange

drink with their logo available for local events of all kinds. Nonetheless,

television has always played acentral role in the company's advertising

strategy.

ADVANTAGES FOR WAFFLE NOW!

HEALTHY FOOD

The current fast food market does not provide for fast healthy food. Waffle

Now! fills that void by allowing customers to obtain fast food which is healthy

for them and their children.

PRICE

Waffle Now! offers food at lower prices than typical sit-down Indian

restaurants.

SERVICE

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Waffle Now! will operate with the motto "the customer is always right." In

today's busy world, the customer service aspect of the restaurant business is

often overlooked.

UNTAPPED MARKET

Waffle Now! will offer an alternative not currently available in the Mumbai

area.

DISADVANTAGES FOR ESTABLISHMENT OF WAFFLE NOW!

NAME RECOGNITION

As a fast food outlet, Waffle Now! does not have the name recognition of other

national chains.

NEW FOOD CONCEPT

American food in general, and more specifically Waffle, are new concepts in

fast food.

RENTAL COSTS

Prime rental locations are extremely costly.

INTERVIEWS WITH FOOD CHAIN BUSINESS

MANAGEMENT

Interviews with the industry experts and those people directly involved with

the activities of food business is perhaps the best way to know this business

and get the feel of the food market they are serving. Often we come across the

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views which are quite simple but forms the fundamental basis of their business

activities.

In an interview with Mr. Mohinder Rasam who is the Manager in charge of Mc.

Donalds CST Fort outlet and has a working experience of more than 8 years

shared his experience of of fast food business. He said, it was a totally new

industry for him to work with. Initially he personally felt food food business of

Mc. Donalds will take time to settle down in India and create a customer base

to the taste of offering of Mc. Donalds. But the start was really good as they

received very good response in the metropolitan cities of India like Mumbai.

When asked about the potential of this industry viz-a-viz Mc. Donalds, he was

optimistic about the food industry and said Mc. Donalds is positioned very well

and it caters to the vast set of consumers. We have understood the taste and

food habits of the people here and our future offerings would be more in line

with the regional taste of India.

With regards to competition, he said there is a stiff competition in the industry.

We have different menu compared to our competitors and we are masters in

our offerings.

But still we are trying our best to improvise on our services and would make all

efforts to improve our customers’ base through better product and service.

In a short interview with Mr. Balavaity, who is in this industry for more than 50

years now and manages the South Indian chain of restaurants Shivala in

Mumbai, food business will never go out of business till the time there are

people to feed. And population is increasing on a daily basis in a busy city like

Mumbai. So it’s a flourishing business as it was, it is and it would be. Asked

about his secret of management and success, he said my success recipe is

hygiene and quality food, these two factors are most looked upon by the

consumer and appreciate them a lot.

P a g e | 30

Hence from the above interviews, we can conclude that food business is a

thriving business in India and throws open lot of opportunities keeping in mind

the growing population of this country.

DESIGN & DEVELOPMENT PLANS

GOALS

Goal 1

Opening of first Waffle Now! in Mumbai by October 1 of 2011.

Goal 2

Achieve Rs 2.5 – 3.00 Crores in gross sales in the first year of operation.

Goal 3

Sell 12 additional franchises within the first 7 years of operation.

RISK ANALYSIS

The following risks are inherent in the pursuit of the stated goals:

The lack of name recognition in our area will impede sales potential.

Attracting potential franchise owners will be difficult.

Opening of our first store will be dependent on receiving financial

assistance through loans.

P a g e | 31

EVALUATION METHODS

Waffle Now! will evaluate the achievement of its stated goals by measuring

financial factors.

Waffle Now! will monitor monthly sales volume as compared to monthly

operating costs. Monthly increases will be expected in the gross sales category.

Sales of additional franchises will be measured by the actual opening of new

stores in Mumbai. Contacts with potential franchisees will be measured in

terms of the number of inquiries obtained on a monthly basis.

STRATEGIC ACTIONS

Strategy 1

The goal is to open the first Waffle Now! in Mumbai by October 1, 2011. The

area is growing rapidly and presents many opportunities to take advantage of

the shopping market.

Strategy 1 calls for finding financing to the level necessary to satisfy our needs.

The estimated level necessary to accomplish this goal is Rs. 32,50,000 to Rs

50,00,000.

Additionally, a location will need to be secured. Location assistance is provided

by the corporate headquarters. Location considerations include traffic patterns

and counts, immediate area demographics, and location of a suitable strip mall

facility.

Strategy 2

The goal is to achieve Rs 2.5 – 3.00 Crores in gross sales in the first year of

operation. This will be accomplished through a marketing plan which is

constructed by the corporate office. The franchisor requires that 4% of the

P a g e | 32

monthly gross be spent on advertising. 2% of this goes directly to a local

marketing campaign. The remaining 2% goes to the corporate headquarters to

be used to develop radio and print material for our local franchise stores. The

plan includes advertising, direct mail marketing and promotional activities. In

addition, corporate headquarters structures food preparation and management

styles to maximize profit while keeping the overhead to a minimum.

Strategy 3

The goal is to sell 12 additional franchises within a seven-year period. This will

be accomplished through an extensive training program by the president of the

corporation. In addition to the sales assistance provided by the corporate

headquarters, a franchise consultant has been retained.

SCHEDULE/TIMETABLE

Schedule for Goal 1 - Opening of first Waffle Now! in Mumbai.

Develop a business plan for presentation to bank/investors by April 14.

Finalize franchise and master franchise agreement with corporate

headquarters by April 17.

Await approval of financing and obtaining of funds. Deadline is May 15.

Complete all preliminary administrative work, such as incorporating, etc. by

May 15.

Review traffic studies and demographic information. Consult with corporate

headquarters regarding site selection. Site selection committee from corporate

headquarters to visit area. Negotiate lease and leasehold improvements.

Deadline by June 30.

Remodeling of site location to specification of Waffle Now! by August 15.

P a g e | 33

Obtain bids for supply of inventory and equipment (including signage) from

various local restaurant supply companies. Select best company and set

delivery date by September 1.

Receive delivery of equipment by September 10.

Obtain marketing package from corporate headquarters advertising agency

and customize to our local by September 1.

Printing of all menus, forms, and promotional items by September 15.

Arrange local advertising for grand opening celebration by September 15.

Hire and train employees during soft opening period from September 15 to

September 30.

Grand opening on Monday, October 1, 2011.

Schedule for Goal 2 - Achieve Rs 2.5 – 3.00 Crores gross sales in first

year.

Evaluate monthly sales to provide for increases on a monthly basis, allow for

seasonal adjustments.

Review entire operation and make recommendations for improving sales.

Deadline January 5, 2012.

Review menu for items which are popular and unpopular, make adjustments

accordingly. Deadline February 15, 2012.

Implement new PTA marketing plan by end of February, 2012.

Schedule for Goal 3 - Sell 12 additional franchises within seven years.

P a g e | 34

Obtain training in the sale and finalization of franchise selling by March 30,

2012.

Develop advertising material for the sale of franchises for use in local and

regional publications by April 15, 2012.

Provide for immediate response to inquiries for interest in franchise purchase.

Make a minimum of five presentations on a quarterly basis for individuals or

corporations interested in purchasing a Waffle Now! franchise.

OPERATIONS & MANAGEMENT PLANS

PRESIDENT:

The President of Waffle Now! Chain business will initially have the

responsibility for managing the operations in Mumbai and Maharashtra but will

gradually cover the subcontinent of India. The role will involve both ongoing

relationship management and new business development opportunities for an

account that generates significant revenue.

Key Responsibilities:

Develop sales plans

Improve account / product profitability

Present brand plans to the customer

Agree profitable promotional activity based on current capacity

availability and financial data.

P a g e | 35

Utilise market data to seek out incremental opportunities based on Gap

analysis.

Use SAP to accurately forecast sales by customer/product/week.

Skills Required

Previous experience of successfully working in a role dealing with the

Food Chain Multiples.

Ability to interpret data and negotiate contracts

Highly developed interpersonal skills with the ability to develop strong

business relationships

Ability to develop strategic sales plans and follow through.

Highly values driven individual : proximity, integrity, nourishment,

excellence

Collaborative, consultative in style; a team player.

A real passion for food.

MANAGERS:

Fast food management is a large industry and would be responsible for

managing the daily activities of franchise restaurants. Managers must be

versatile, as they are required to handle a wide variety of tasks during their

shifts at the restaurant.

Cash Management

P a g e | 36

An important task of fast food managers is the balancing of the cash tills from

each register. The tills must be balanced and bank deposits prepared each day.

Employee Management

Scheduling employees and positioning them at the different food stations which

helps each shift run smoothly in the restaurant. Knowing the strengths of each

employee and staff them properly at each food station.

Deter Theft

Many food products in the fast food industry are expensive and represent a

large portion of the restaurant's operating costs. Preventing employees from

stealing or eating without paying for food helps restaurants control their food

cost.

Quality Control

Quality control is an extremely important task that each fast food manager

must stay on top of on a daily basis. Properly training employees, verifying food

quality and reviewing the preparation process are all parts of a manager's

quality control duties.

Customer Satisfaction

Fast food managers must ensure that every customer is satisfied with the

products and services supplied by the restaurant. Quickly handling complaints

and correcting orders is an essential part of the manager's day.

HR PRACTICES & POLICIES FOR EMPLOYEES:

A basic principle is that the performance of an individual depends on his or her

ability backed by motivation.

P a g e | 37

Performance= f (ability × motivation)

At Waffle Now! We will have best HR practices in place which would be

designed with the help of the HR consultants which is at par with the Industry

standards in India and would aim to fulfill the following objectives.

Enhance the internal capabilities of organization to deal with current and

future change.

Influence the financial and other performance indicators.

Energize and encourage the employees to work.

Increase loyalty of employees towards organization.

Attract and retain Manpower.

Reduce Absenteeism.

Reduce Turnover.

Aims to improve Customer Experience and Satisfaction.

P a g e | 38

FINANCIAL COMPONENTS

Sources & Uses

Financial requirements are as follows:

Franchise fee and purchase of area

agreement Rs. 11,00,000.00

Equipment package and signage Rs. 17,75,000.00

Initial inventory Rs. 2,00,000.00

Leasehold improvements Rs. 6,50,000.00

Pre-opening expenses, travel and lodging for

training Rs. 3,75,000.00

Grand Opening Rs. 2,50,000.00

Working Capital Rs. 6,50,000.00

Total Financial Requirement Rs. 50,00,000.00

Financing to be obtained through local bank loans or Angel Investors if

necessary. Equity of property owned in Mumbai will be used as partial

collateral. Loan term to be discussed.

Income/Cash Flow Statement

The following income and cash flow statements are based on information

supplied by Waffle Now's corporate headquarters. Figures used are pro-forma;

however, they reflect results obtained at other Waffle Now! franchise locations.

The statement is based on a fiscal year which begins with the opening date of

the business.

P a g e | 39

Rs in

'000'

Projected Income Statements—Best Case

Oct Nov Dec Jan Feb Mar Apr May

Gross Sales

Sales 1,800 1,500 1,650 750 975 1,200 1,425 1,650

Total Sales 1,800 1,500 1,650 750 975 1,200 1,425 1,650

Cost of Sales:

Food/Drink/Spoilage 612 510 561 255 332 408 485 561

Total Cost of Sales 612 510 561 255 332 408 485 561

Gross Profit 1,188 990 1,089 495 644 792 941 1,089

Expenses:

Accounting 5 5 5 5 5 5 5 5

Advertising Local 36 30 33 15 19.5 24 28.5 33

Advertising National 36 30 33 15 19.5 24 28.5 33

Bank Charges 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75

Depreciation 14.6 14.6 14.6 14.6 14.6 14.6 14.6 14.6

Franchise Fee 4.15 4.15 4.15 4.15 4.15 4.15 4.15 4.15

Insurance 9.4 9.4 9.4 9.4 9.4 9.4 9.4 9.4

Interest 31.8 31.6 31.35 31.1 30.8 30.55 30.3 30.05

Legal and Pro. 5 5 5 5 5 5 5 5

Licenses & Permits 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75

Office Expense 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5

Outside Services 10 10 10 10 10 10 10 10

Rent - Property 134 134 134 134 134 134 134 134

Repairs & Maint. 5 5 5 5 5 5 5 5

Royalties 72 60 66 30 39 48 57 66

Telephone 15 15 15 15 15 15 15 15

Travel 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5

Utilities 27.9 27.9 27.9 27.9 27.9 27.9 27.9 27.9

Wages 288 240 264 120 156 192 228 264

Employer's Burden 66 58 62 37.4 43.5 49.65 56 62

Manager Salary 100 100 100 100 100 100 100 100

Misc. 36 30 33 15 19.5 24 28.5 33

Total Expenses 912 826 868 610 674 738 803 867

Net Operating Income 276 164 221 -115 -30.6 54 138 222

P a g e | 40

Other Income 0 0 0 0 0 0 0 0

Other Expenses 0 0 0 0 0 0 0 0

Net Profit (Loss)

Before Tax 276 164 221 -115 -30.6 54 138 222

Jun Jul Aug Sep Year l %

Year

2 % Year 3 %

Sales 1,800 1,875 1,725 1,650

18,00

0

100.00

%

22,50

0 100.00% 24,750

100.00

%

Total Sales 1,800 1,875 1,725 1,650

18,00

0

22,50

0 24,750

Food/Drink/

Spoilage 612 638 587 561 6,120 34.00% 7,650 34.00% 8,415 34.00%

Total Cost of Sales 612 638 587 561 6,120 34.00% 7,650 34.00% 8,415 34.00%

Gross Profit 1,188 1,238 1,139 1,089

11,88

0 66.00%

14,85

0 66.00% 16,335 66.00%

Accounting 5 5 5 5 60 0.33% 75 0.33% 83 0.33%

Advertising Local 36 37.5 34.5 33 360 2.00% 450 2.00% 495 2.00%

Advertising

National 36 37.5 34.5 33 360 2.00% 450 2.00% 495 2.00%

Bank Charges 0.75 0.75 0.75 0.75 9 0.05% 11.25 0.05% 12.4 0.05%

Depreciation 14.6 14.6 14.6 14.6 175 0.97% 219 0.97% 241 0.97%

Franchise Fee 4.15 4.15 4.15 4.15 50 0.28% 50 0.22% 50 0.20%

Insurance 9.4 9.4 9.4 9.4 113 0.63% 141 0.63% 155 0.63%

Interest 29.8 29.5 29.25 29 365 2.03% 326 1.45% 281 1.14%

Legal and Pro. 5 5 5 5 60 0.33% 75 0.33% 83 0.33%

Licenses &

Permits 0.75 0.75 0.75 0.75 9 0.05% 10 0.04% 11 0.04%

Office Expense 2.5 2.5 2.5 2.5 30 0.17% 37.5 0.17% 41.25 0.17%

Outside Services 10 10 10 10 120 0.67% 150 0.67% 165 0.67%

Rent - Property 134 134 134 134 1,604 8.91% 1,684 7.48% 1,852 7.48%

Repairs & Maint. 5 5 5 5 60 0.33% 75 0.33% 83 0.33%

Royalties 72 75 69 66 720 4.00% 900 4.00% 990 4.00%

Telephone 15 15 15 15 180 1.00% 225 1.00% 248 1.00%

Travel 12.5 12.5 12.5 12.5 150 0.83% 188 0.83% 206 0.83%

Utilities 27.9 27.9 27.9 27.9 335 1.86% 419 1.86% 461 1.86%

Wages 288 300 276 264 2,880 16.00% 3,600 16.00% 3,960 16.00%

Employer's

Burden 66 68 64 62 694 3.85% 833 3.70% 928 3.75%

Manager Salary 100 100 100 100 1,200 6.67% 1,300 5.78% 1,500 6.06%

Misc. 36 37.5 34.5 33 360 2.00% 450 2.00% 495 2.00%

Total Expenses 910 931 888 866 9,893 54.96% 11,66 51.85% 12,834 51.85%

P a g e | 41

7

Net Operating

Income 278 306 251 223 1,987 11.04% 3,183 14.15% 3,501 14.15%

Other Income 0 0 0 0 0 0.00% 0 0.00% 0 0.00%

Other Expenses 0 0 0 0 0 0.00% 0 0.00% 0 0.00%

Net Profit (Loss)

Before Tax 278 306 251 223 1,987 11.04% 3,183 14.15% 3,501 14.15%

Rs in '000'

Statement of Cash Flows

Oct Nov Dec Jan Feb Mar Apr May

Sales

1,80

0

1,50

0

1,65

0 750 975 1,200

1,42

5 1,650

Expenses

1,52

4

1,33

6

1,42

9 865

1,00

6 1,146

1,28

7 1,428

Depreciation 14.6 14.6 14.6 14.6 14.6 14.6 14.6 14.6

Principal 25.1

25.3

5 25.6

25.8

5 26.1 26.35

26.6

5 26.9

Net Cash

Position 266 154 210 -126

-

42.1 41.8 126 210

Previous

Cash Position 650 916

1,06

9

1,27

9

1,15

3 1,111

1,15

3 1,278

Cumulative

Cash Position 916

1,06

9

1,27

9

1,15

3

1,11

1 1,153

1,27

8 1,488

Jun Jul Aug Sep

Year

2

Year

3

Sales 1,800 1,875 1,725 1,650

22,50

0

24,75

0

Expenses 1,522 1,569 1,474 1,427 19,31 21,24

P a g e | 42

7 9

Depreciatio

n 14.6 14.6 14.6 14.6 219 241

Principal 27.15 27.4 27.7 27.95 358 402

Net Cash

Position 266 293 238 210 3,044 3,340

Previous

Cash

Position 1,488 1,753 2,047 2,284 2,494 5,538

Cumulative

Cash

Position 1,753 2,047 2,284 2,494 5,538 8,878

Rs in '000'

Projected Income Statements - Worst Case

Oct Nov Dec Jan Feb Mar Apr May

Gross Sales

Sales 1100 916.65 1008.4 458.35 595.85 733.35 870.85 1008.4

Total Sales 1100 916.65 1008.4 458.35 595.85 733.35 870.85 1008.4

Cost of Sales:

Food/Drink/Spoilage 374 311.65 342.85 155.85 202.6 249.35 296.1 342.85

Total Cost of Sales 374 311.65 342.85 155.85 202.6 249.35 296.1 342.85

Gross Profit 726 605 665.5 302.5 393.25 484 574.75 665.5

Expenses:

Accounting 5 5 5 5 5 5 5 5

Advertising Local 22 18.35 20.15 9.15 11.9 14.65 17.4 20.15

Advertising -

National 22 18.35 20.15 9.15 11.9 14.65 17.4 20.15

Bank Service

Charges 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75

Depreciation 14.6 14.6 14.6 14.6 14.6 14.6 14.6 14.6

Franchise Fee 4.15 4.15 4.15 4.15 4.15 4.15 4.15 4.15

P a g e | 43

Insurance 9.4 9.4 9.4 9.4 9.4 9.4 9.4 9.4

Interest Loan 31.8 31.6 31.35 31.1 30.8 30.55 30.3 30.05

Legal and Pro. 5 5 5 5 5 5 5 5

Licenses & Permits 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75

Office Expense 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5

Outside Services 10 10 10 10 10 10 10 10

Rent - Property 133.65 133.65 133.65 133.65 133.65 133.65 133.65 133.65

Repairs & Maint. 5 5 5 5 5 5 5 5

Royalties 44 36.65 40.35 18.35 23.85 29.35 34.85 40.35

Telephone 6.25 6.25 6.25 6.25 6.25 6.25 6.25 6.25

Travel 4.15 4.15 4.15 4.15 4.15 4.15 4.15 4.15

Utilities 22.9 22.9 22.9 22.9 22.9 22.9 22.9 22.9

Wages 176 146.65 161.35 73.35 95.35 117.35 139.35 161.35

Employer Burden 46.9 41.95 44.45 29.45 33.2 36.95 40.7 44.45

Manager Salary 100 100 100 100 100 100 100 100

Misc. 22 18.35 20.15 9.15 11.9 14.65 17.4 20.15

Total Expenses 688.85 635.95 662.05 503.8 543.05 582.3 621.5 660.75

Net Opr Income 37.15 -30.95 3.45 -201.3 -149.8 -98.3 -46.75 4.75

Other Income 0 0 0 0 0 0 0 0

Other Expenses 0 0 0 0 0 0 0 0

Net Profit (Loss)

Before Tax 37.15 -30.95 3.45 -201.3 -149.8 -98.3 -46.75 4.75

Rs in '000'

Jun Jul Aug Sep

Year

l %

Year

2 %

Year

3 %

Sales 1,100 1,146 1,054 1,008

11,00

0

100.00

%

13,75

0

100.00

%

15,1

25

100.00

%

Total Sales 1,100 1,146 1,054 1,008

11,00

0

13,75

0

15,1

25

Food/Drink/

Spoilage 374 390 358 343 3,740 34.00% 4,675 34.00%

5,14

3 34.00%

Total Cost of

Sales 374 390 358 343 3,740 34.00% 4,675 34.00%

5,14

3 34.00%

Gross Profit 726 756 696 666 7,260 66.00% 9,075 66.00%

9,98

3 66.00%

Accounting 5 5 5 5 60 0.55% 75 0.55% 83 0.55%

Advertising Local 22 22.9 21.1 20.15 220 2.00% 275 2.00% 303 2.00%

Advertising -

National 22 22.9 21.1 20.15 220 2.00% 275 2.00% 303 2.00%

Bank Service 0.75 0.75 0.75 0.75 9 0.08% 11.25 0.08% 12.4 0.08%

P a g e | 44

Charges

Depreciation 14.6 14.6 14.6 14.6 175 1.59% 219 1.59% 241 1.59%

Franchise Fee 4.15 4.15 4.15 4.15 50 0.45% 50 0.36% 50 0.33%

Insurance 9.4 9.4 9.4 9.4 11.25 1.02% 141 1.02% 155 1.02%

Interest Loan 0% 29.5 29.25 29 365 3.32% 326 2.20% 281 1.86%

Legal and Pro. 5 5 5 5 60 0.55% 75 0.55% 83 0.55%

Licenses &

Permits 0.75 0.75 0.75 0.75 9 0.08% 10 0.07% 11 0.07%

Office Expense 2.5 2.5 2.5 2.5 30 0.27% 37.5 0.27%

41.2

5 0.27%

Outside Services 10 10 10 10 120 1.09% 150 1.09% 165 1.09%

Rent - Property 134 134 134 134 1,604 14.58% 1,684 12.25%

1,85

2 12.25%

Repairs & Maint. 5 5 5 5 60 0.55% 75 0.55% 83 0.55%

Royalties 44 45.85 42.15 40.35 440 4.00% 550 4.00% 605 4.00%

Telephone 6.25 6.25 6.25 6.25 75 0.68% 94 0.68% 103 0.68%

Travel 4.15 4.15 4.15 4.15 50 0.45% 63 0.45% 69 0.45%

Utilities 22.9 22.9 22.9 22.9 275 2.50% 344 2.50% 378 2.50%

Wages 176 183 169 161.4 1,760 16.00% 2,200 16.00%

2,42

0 16.00%

Employer Burden 46.9 48.15 45.65 44.45 503 4.57% 595 4.33% 666 4.41%

Manager Salary 100 100 100 100 1,200 10.91% 1,300 9.45%

1,50

0 9.92%

Misc. 22 22.9 21.1 20.15 220 2.00% 275 2.00% 303 2.00%

Total Expenses 687 700 673 660 7,618 69.25% 8,823 64.17%

9,70

5 64.17%

Net Opr Income 39.2 57 22.65 5.8 -358

−3.25

% 252 1.83% 278 1.83%

Other Income 0 0 0 0 0 0.00% 0 0.00% 0 0.00%

Other Expenses 0 0 0 0 0 0.00% 0 0.00% 0 0.00%

Net Profit (Loss)

Before Tax 39.2 57 22.65 5.8 -358

−3.25

% 252 1.83% 278 1.83%

P a g e | 45

Rs in '000'

Statement of Cash Flows - Worst Case

Oct Nov Dec Jan Feb Mar Apr May

Sales 1,100 917 1,008 458 596 733 871 1,008

Expenses 1,063 948 1,005 660 746 832 918 1,004

Depreciation 14.6 14.6 14.6 14.6 14.6 14.6 14.6 14.6

Principal 25.1 25.35 25.6 25.85 26.1 26.35 26.65 26.9

Net Cash

Position 26.6 -41.75 -7.55 -213 -161 -110 -59 -7.55

Prev Cash Pos 650 677 635 627 415 253 143 85

Cum Cash Pos 677 635 627 41.75 253 143 85 77

Jun Jul Aug Sep Year 2 Year 3

Sales 1,100 1,146 1,054 1,008 13,750 15,125

Expenses 1060.8 1,089 1,031 1,003 13,498 14,848

Depreciation 14.6 14.6 14.6 14.6 219 241

Principal 27.15 27.4 27.7 27.95 358 401

Net Cash

Position 26.6 43.7 9.55 -7.55 113 116

Prev Cash Pos 77 104 147 157 149 262.65

Cum Cash Pos 104 147 157 149 262.65 379

P a g e | 46

CONCLUSION

Food Industry in India has witnessed unprecedented growth and development

in the last decade and presents immense opportunities for the new food

business and concepts to grow and establish. The retail sector is booming up

with foreign giants along with the domestic players coming up with innovative

products and widening the market base of their products portfolio. The retail

sector growth has opened up lot of employment opportunities to the rural and

urban masses thereby improving their productivity and standard of living by

way of higher salaries and incentives.

Waffle Now! Aims to join the party and become a profitable venture providing

high quality, low calorie food products at a reasonable rates thereby steadily

increasing the operations and becoming famous and sought after food chain

business of India.

P a g e | 47

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Compensation Management:

McDonald's :: Career Opportunities :: Restaurant Management ... Competitive

Compensation: www.mcdonalds.ca/en/careers/restMgmt_benefits.aspx -

Food Chain Business Operations

Operational Business Intelligence at a Fast Food Chain - BeyeNETWORK

28 Feb 2006 ... Operational Business Intelligence at a Fast Food Chain Data

Warehousing Dave Stark Business Intelligence,Performance Management,Data ...

www.b-eye-network.com/view/2426 -

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