Shri Ramdeobaba College of Engineering and Management

DEPARTMENT OF INDUSTRIAL ENGINEERING

Entrepreneurship Development

Business Plan on a Restaurant

Faizan Ali SayyedRoll no 33

1. YOUR BUSINESS IDEADescribe your business idea:

Mixing up the conventional Business with technology and innovative ideas to cook a fantastic, delicious, profit making Company.

A partnership firm

What is the name of your business?“Bon-A-pet-Treat”

What is competitive advantage of your business? Memberships Free food coupons Free treats on b’days Use of Web Site and Mobile app for order booking Service retrieving and processing under 5-10 minutes Use of modern techniques and automation Promoting innovation and new products

What are the strengths of your business?

Adequate Knowledge to Optimize resource utility

Quality

Cheaper rates

High level of CUSTOMER SATISFACTION

Use of technologies that nobody has used before

Gaining Customer loyalty easily

Offered cuisines:

Starters Appetizers Deserts Beverages

Menu type:

Set menu Ingredients menu Special Combos Party offers Custom offers

Staff:

2 Chefs 6 Waiters 1 Manager 1 Receptionist 3 Maintenance and Cleaning

2. MARKETINGType of business you are in:

Service Retailer sells to consumer

3. CONSUMER DESCRIPTIONDescribe your target consumer

Rich lonely Couples Kids Young generation Working class Party people Business corporate

Expected age of consumerAge group from 18-55

Expected gender of consumerBoth genders

What need or want will your product fulfil?Bon Appetite (Hunger for food)

Financial status of consumer Financially balanced Higher class

4. PROMOTION/ADVERTISING

How will you reach this consumer? Connect to Customer No Convetional promotion Visiting Malls, Exhibitions,Colleges, Markets Social Network Youtube Pamplets Online advertisements

What is the slogan for your business?“You wish, we serve”

Will you make sales calls? Sales calls: Yes

Feedback calls: YesCustomer registration: YesPromotional calls: Yes

Write a four sentence sale presentation:“Customers are a part of our mission;

To see…To do…To serve…”

5. ECONOMICS OF ONE UNIT:SERVICE COMPANY

Define your unit: One dish of any product from the menu

Selling price per unitA = Rs. 18,000 (Consider the average selling price of all the

products offered and assuming no of sales be 100 per day)

Cost of goods sold per unit

Rs. 120(Consider the average cost of all the products)

What value are you placing on your entrepreneurial time per hour?

B = Rs. 720( considering all type of employees and their wages)

How long does it take to perform your service(in hours)?C = 10 hours

Labour cost per unit=BXC

D = Rs. 7200

SuppliesWhat is the supply cost per customer?

E = Rs. 4500Cost of services sold per unit= D+E

F = 11,700Gross profit per unit= A-F

G = 18,000 -11,700

6. MARKET RESEARCHCompetition

Fierce competition from other restaurants like Krishnum Plaza, Babbu’s galaxy, Fiona, Checkers, Bangs, Dominos, Pure Veg Restaurant, Panino, and others. Though no competitors offer the fun and relaxing atmosphere that our Company plans to provide

Ask two people these questions about your business and write their answers in the space provided:

Do you like the name of my business? Yes Yes

Where would you want to go to buy my product?

Anywhere Wherever possible in the town

Do you think my service has value?

Yes Yes, it has

How much would you pay for my product?

Rs. 2000 Rs. 2500 to 3000

How would you improve my business idea?

Adding Home delivery system Opening up branches

Who is my closest competitor?

Krishnum Plaza Thaat baat

Do you think my service is better or worse than that offered by my competitor?

Service is way better than your competition Equivalent but can get better

Why your service is going to beat the competition?

The per capita income of people in our country is increasing.(indicates increasing spending power) – Economical and Reasonable price rates

People don’t like to wait when they are hungry – Faster service Beverages are preferred with meal – Variety of meal courses People are bored of the old menu – Combinations and New

dishes Use of technology

(Location is not primarily important, as people can go places if they know Service is good, and the food has quality)

Below is a sample strategy for a manufacturing, wholesale, retail or service company. Can you add other locations or methods of selling?

MARKETING PLAN LOCATIONS (WHERE TO SELL)

Door to door

Markets Street Local stores

Internet Marketing

Colleges Restaurant Others

Business Cards

Posters

Leaflets

Phones

Sales calls

Brochure

Mailing

Websites

Others

7. LEGAL STRUCTUREIs your business a sole proprietorship, a partnership, a private limited company or regular corporation, or a not for profit corporation?Explain your decision.

The business is a sole proprietorship type- a one man organization, where a single person owns, manages and controls the business. He is the decision maker in the organization.

The business will work as a Franchise. The advantages of having sole proprietorship are:

Ease of formation and doesn’t require going through elaborated legal formalities, besides the license.

The capital and profit are all in the hands of the owner The continuity is uncertain Moderate risks, moderate financial requirements.

Explain how much will you be paying for legal fees?What permits or licences will you need for your business?What are the names, addresses and phone numbers of the local officials in charge of the permits and licensing you need?

1. Food Safety license2. Health/Trade license3. Eating house license4. Fire Department5. Pollution certificate6. Music license7. Insurance8. Prevention and Food Adulteration Act(PFA) 19549. Shop and Establishment license10. Signage license11. Certificate of Environmental Clearance12. Ghumastha license

Name Adress PhoneFire Office Civil Lines 0712 256 5074

Municipal Corporation Civil Lines 0712 256 7035

Pollution control committee Civil Lines0712-2560152

Food Safety and Standards Authority of India (Consultant)

Ayodhya nagar 011 2323 6975

Police Station Gitti Khadan 0712-2580127

Forest Office Van Bhavan 0712 255 0670

Insurance Company West High Court Road

8. START-UP COSTS

What are your estimated start-up costs? Item-wise:

Item Where will you buy this?

Cost(Rs)

Flat Belt Conveyor Indiamart 60,000Interior, Carpets Projectasoz 80,000Decorations Aaron Allen 45,000Generic Furniture Amazon 40,000LCDs Homeshop18 45,000 each

Estimated Total Start-up Costs:3.75 lacks

List your sources of financing below, indicate with a check mark whether each source is offering equity, debt or a gift.

Amount Equity(investment) Debt(loan) GiftPersonal savings

2 lacks

Relatives 5 lacks 4 lacks 1 lackFriends

InvestorsGrantOtherTotal 7 lacks

If you receive equity financing, what percentage of ownership will you give up?

40 percent

If you receive debt financing, what is the maximum interest rate you will pay?

12.5 percent rate of interest

9. OPERATING COSTS(FIXED AND VARIABLES)MONTHLY FIXED COSTSThese includes utilities, salaries, advertising, interest, insurance and rent. In a small business, many operating costs are usually fixed, although a few may be variable, depending on your business.

Type of fixed costs Monthly fixed costsSalaries 0.68 lacks

VARIABLE COSTS

Type of variable costs Estimated variable cost as a % of sales

Electricity 5Water Bills 3Grocery and vegetables 6Miscellaneous 0.5

Economy

Slow Economic Recovery. We anticipate a slow-growth economy, recovering from an economic recession.

Business Growth

We anticipate modest growth over the coming years. The financials account for the following growth projections:

Year 2: 4%

Year 3: 4%

Year 3: 5%

Year 5: 6%

MONTHLY BUDGET PROJECTED INCOME STATEMENTS

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec TotalUnits sold 3000 350 3600 2800 2400 2600 2000 2400 3000 3600 4000 4800 37700

0Unit selling

price(In 1000)

18 18 18 19 19 19 19 19 20 20 21 22 232

Total sales(In 1000)

54 63 64.8 53.2 45.6 49.4 38 45.6 60 72 84 105.6 735.2

Cost of goods for

services sold per unit(In 1000)

11.7 11.7 12 12 12 12 12.3 12.5 12.5 12.5 13 13 147.2

Total cost of goods or

services sold(In 1000)

35.1 40.9 43.2 33.6 28.8 31.2 24.6 30 37.5 45 52 62.4 464.3

Gross profit(In 1000)

18.9 22.1 21.6 19.6 16.8 18.2 13.4 15.6 22.5 27 32 43.2 270.9

Variable costs

(In 1000)

7.83 9.135

9.396 7.714 6.612

7.163 5.51 6.612 8.7 10.44

12.18 15.312 106.604

Total operating

costs(In 1000)

7.83 9.135

9.396 7.714 6.612

7.163 5.51 6.612 8.7 10.44

12.18 15.312 106.604

Profit/ loss before taxes

(In 1000)

11.1 12.96

12.20 11.89 10.19

11.04 7.89 8.988 13.8 16.56

19.82 27.888 156.43

Less taxes(25% estimated):Rs. 39,107

Net profit: Rs. 1,17,322

BUDGET YEARLY INCOME STATEMENT

SALES AMOUNT

Units sold 37700Unit Selling Price 18,000-22,000

Total Sales(Units sold*Unit Selling Price)

73,5200

COSTS AMOUNTCost of Goods or Services Sold

per Unit11,700-13000

Total cost of Goods or Services sold

1,47,200

Gross Profit 2,70,900Variable Expenses 1,06,604Operating Costs 1,06,604

PROFIT AMOUNTProfit/loss before taxes 1,56,4300

Less Taxes 39,107Net Profit 1,17,322

Net Profit/Unit 3.11