final ppt bplan pm
DESCRIPTION
Bplan for resturantTRANSCRIPT
Group Members:1. Ekta Yadav2. Himanshi Jain3. Kiran Sharma4. Megha
Girdhar
Red Chilis
PROJECT PROPOSAL
Owners: Neeraj Kumar & Rakesh Bansal
Name of the Restaurant : RED CHILIS- fast food restaurant
Location: Rajori Market, West Delhi
Estimated Project Cost: Rs. 1,81,50,000
Area : 3000 sq. foot
Time Duration: will commence within 60 days
RESTAURANT DESCRIPTION
The restaurant will be owned by Neeraj Kumar and Rakesh Bansal, the creator and managing member of the company, Paras Pulp Pvt ltd. Red Chilis will be a moderately priced, high-end, fine dining restaurant with the “down home” theme. It will be serving vegetarian and non-vegetarian food, Main Cuisine consisting of Indian, Chinese, and sub continental dishes.Restaurant will be leasing 3000 square foot located in Rajouri MarketThe décor of Red Chilies will be featured with wood accented construction and the glass dining tables will be surrounded by heavy wooden chairs that will be accompanied by leather seat covers
CONTI.. The restaurant will be opened 7 day a week.
Mon – fri: 11am to 10 pm
Sat – sun: 12 am to 12 pm
The estimated cost to open the restaurant is Rs 1, 81, 50,000.
Project will require approximately 30 days completing.
PLANT LAYOUT DESIGN
BUSINESS OBJECTIVES
The primary objectives of the business plan are:
To become a premier home-style restaurant in
Rajouri market, west Delhi
To provide high quality meals at reasonable prices with wonderful Experience.
MISSION STATEMENT
Our Mission is to provide a different, unique and relaxing dining experience –the one similar to dining at home. We will try to achieve this goal by:
By providing simple, delicious menu items incorporating with quality ingredients at reasonable prices.
By treating each and every member of staff and our customers– with dignity and respect – just like- we would at our own home!
KEYS TO SUCCESS
Hiring Top-notch chefs and training them, so they remain top in his game and paying them top wages to ensure they stay with us.
Providing excellent product and service, which builds customer loyalty.
Word of mouth marketing, every customer who comes in once should recommend us and want to come again.
DETAILS OF EXECUTION SERVICE
DAILY PRODUCTION AND OPERATIONS
According to our business plan of red chili restaurant, our restaurant will be open all 7 days in the week and therefore if planned to go for multiple shift system for our employees .that is as follows
Mon-Friday – 9 am to 11pm Saturday – Sunday 10am to 12pm In both the shifts we planned to keep 3 cooks with one
head COOK or you can say cook team manger. 3 waiters, one general manger, 1 gate keeper, 2 cleaning persons.
Managers – full time Cashier – full time Cook - shift wise Cleaning person – permanent Gatekeeper – permanent
SUPPLIERS
For the suppliers of raw materials our partners have established relations with some qualified suppliers. These will insure ours of delivering the required products to ours at low price without most quality. These suppliers are local shopkeepers in Rajouri but are known for their products in that area.
MANAGEMENT CONTROL Some of the systems we thinking to use
for the purpose of management control system are as follows –
Order guide Weekly inventory Daily inventory tracking
ADMINISTRATION ANALYSIS
Weekly prime cost report Daily cash control Purchasing records / payables Payroll processing Future service
Position Salary Experience Job description Working hours
Entry Level Education
Food Service Manager 30,000/month 1-5 years Manage, coordinate and organize the daily operations
Look for customer problems
Handle sudden problems i.e. inventory problems, complaints
10 hours High school diploma
Waiter/Waitress 7,000-10,000/month(depending upon experience)
1-3 years Serve customers Take orders Solve issues Ensures the place(table)
clean
12 hours 10th and 12th passEven college students(graduates) can apply
Cashier 25,000-28,000/month
2-4 years Billing Taking food orders in the
absence of managers Ensures transactions are
done properly
10 hours Should be graduatedGood with calculation and numbers
Cleaner 3,000-5,000/month 0-2 years Clean the tables after customers finish with their food
Complete restaurant cleaning in the morning and after closing
Solve any issues during any damage.
12 hours No specific education level required
Security Guard 12,000-15,000/month
1-3 years Greeting customers while they come in and go out
Help in parking with the vehicles
Protection from any unwanted people to enter the restaurant premises
12 hours (day and night shift)
No specific education level required
MARKET ANALYSIS
Indian restaurant industry is worth Rs 75000 crores- annual rate of 7%
As per Indian Restaurant Market Analysis, this section is expected to grow at a compounded annual growth rate of about 33.6% during 2010-2013.
Major companies include- KFC, Pizza Hut, Zen at Leela Palace, Karavali restaurant at The Taj, Sakura at Metropolitan Hotel in Delhi, etc.
INDUSTRY ANALYSISThis Restaurant Industry comprises establishment primarily engaged in providing food services to patrons who order and are served while seated (i.e., waiter/waitress services) and pay after eating.
The Industry consists of full service restaurants(FSR) and limited service eating places which includes Quick service restaurants (QSR) like buffets, snacks bar, cafeteria, and non-alcoholic beverage bars.
FSRs depend on high-margin and finance. Whereas, QSRs rely on proficient operations and high volume sales.
Annual revenue per worker is under Rs 31,00,000. Since this restaurant industry is highly competitive, so
the site selection is also critical.
MARKET SIZE- The Indian restaurant industry includes 1.5 million restaurant approx.. of which slightly more than 4,000 restaurants form the organized segments with combine annual revenue of about Rs75,000 crores in year 2012-growing at annual rate of 8%.
The Major competitors of Red Chilis are:
Bukhara resturantSpice RoutePunjabi by NatureKarim'sChor BizarreMotiMahalDelux
The major target of consumer for the initial phase of Red Chilies fits the profile of an average to high-income earner, with a clean, healthy and fresh lifestyle orientation.
MARKET STRATEGY
Red Chilies will place itself as a high end fine dining restaurant with the “down home” theme
We are using POS system (Integrated software system for restaurants and bars)
We can focus on cost savings and various changing trends of the industry.
We tend to provide job opportunities to the students
CONTI..
At Red Chilis we are proactive with the employees by reviewing their performance and giving them appraisals
We are linked to various social media such as Facebook, Twitter
SWOT ANALYSIS\
Strengths
1. Central location of West Delhi which is easy to access and reach
2. Caters to fine dining experience
3. As the owner have industry experience, thus very well know as to how to treat the customers in exceptional way
4. Experience and reliable staff with “ Can Do” attitude
5. Focus on Menu Reengineering
6. Serves food made of quality ingredients
Weaknesses
1. Retention of the employees due to tough competition in the market
2. Difficult to capture the customer insights and demands
Opportunities
1. Less barriers to stop from entering into the markets
2. Outdoor catering services (addition basis)
Threats
1. Government mandatory regulations regarding the health
safety, employee safety, healthy environment job, wages etc.
2. Reduction in profits due to decreasing sales or increase in operating costs
3. Consumer perception (Outside food is not safe for health)
4. Other stores and general/convenience stores nearby in the market
SWOT
STRATEGY PYRAMID
Tactics: First creating awareness about our restaurant that is by setting up logo and signage
Secondly greeting the customers with the servicesPrograms: Employee training on the basis of the customer service
UNIQUE SELLING PROPOSITION
Red Chilis is going to offer quality home style food just in the way the food is offered at home with the price range that dosent increase the standard price
Price range: 450-700 Prices are as such that are easily acceptable
by the customers as we focus on seasonal menu and also we are planning for the menu reengineering so that we can achieve the customer satisfaction with high profits.
COMPETITIVE EDGE
The competitive edge of Red Chilis is the human resources that are there in the restaurant (let it be the staff members, workers, cleaners etc.).
In our restaurant the meals, services and other things are possible because of the staff members present in the organization.
This is our goal to hire those team members that are loyal, honest, hardworking and punctual with good communication skills, know the way to handle customers
MARKET POSITIONING
We will employ strong marketing efforts in achieving our set up goals. Goals can be achieved by the following means: Database Loyalty/Birthday club program Menu Re-engineering Donations/Charities Develop relationships
PRICING STRATEGY
The profitability at our restaurant varies according to the individual profit gain by the various dishes.
We also focus on cost accounting and inventory management for the profitability
By maintaining the cost report and the cost accounting of the restaurant we are able to see for the costs of goods and as to how much have to be paid to the labor.
\
PROMOTION AND ADVERTISING STRATEGY
Location Word of Mouth Direct Mail Newspapers Television/Radio
SALES STRATEGY
Surveys found that very less customers complain about the problems that they face with the management.
If the complaints are serious then they will be documented in the file and customers feedback will be taken at the end of their meal during billing.
FINANCIAL ANAYLSIS Basic assumptions:
Meals price range b/w: Rs.400- 750 Average price of lunch: Rs.440 Average Price of dinner: Rs.690 Seating Capacity: 90 seats Employees : 20 Target revenue: Rs.4 to 6 cores
START UP COST ESTIMATIONStart-up expenses Amount(Rs)
Restaurant logo and name creation 50,000
Lease Deposit 60,000
Contingency 500,000
Outdoor Sigh 150,000
Building improvement 25,00,000
Working capital 86,25,000
Pre opening expenses 740,000
Total Start-up Expenses 1,26,50,000
Start-up Assets Amount(Rs)
Artwork 40,000
5 A/c + 4 LCD 7,60,000
Kitchen fully equipped (hood,small wares, burner, work table, utensils etc) 16,85,000
2 freezers 3,00,000
Liquid fire Protection System 4,00,000
20 wooden dinning Tables 10,00,000
90 wooden chair 2,50,000
20 track lights 50,000
Table cloth, napkins 60,000
Big Dish washer 3,50,000
20 Quad Food processor/blender 45,000
Ice maker having storage 2,00,000
Decor 1,00,000
2 Computer system 85,000
POS system( cash register) 200,000
Total start up assets 55,25,000
Total Start up Cost Required 1,81,50,000
SOURCE OF FUNDSource of fund Amount(Rs)
Owner’s fund 87,00,000
Bank loan 94,50,000
Total source of fund 1,81,50,000
Use of fund
Building Improvement 25,00,000
Restaurant assets 55,25,000
Administration expenses 740,000
Promotional Expenses 200,000
Other Expenses 60,000
Working Capital 86,25,000
Contingency fund 500,000
Total use of funds 1,81,50,000
SALES PROJECTION
Estimated Sq Feet area: 3000 Avg. lunch price: Rs. 440 Avg. dinner price: Rs.550 No. of seats : 90Per Day sales projection (assuming
250 customer per day) Customers Avg. price for
meal(Rs)Sales
Lunch 100 440 44,000
Dinner 150 550 82,500
Total 250 1,26,500
Per day sales for 250 customers will be Rs.126500 Avg. monthly sales: Rs.37, 95,000(126500* 30)
Annual sales: Rs.4,55,40,000 (37,95,00*12) Annual sales per sq. foot: Rs.15180 (45540000/3000) Annual sales per seat: Rs.5,06,000 (45540000/90)
We are expecting, 5% increase in sales revenues for next 3 years annually.
PROFIT AND LOSS STATEMENTParticulars Year 1 Year 2 Year 3
Income In Rs.. In Rs…. In Rs…
Sales 4,55,40,000 4,78,17,000 50207,850
COGS (2,01,65,000) (2,07,88,000) (2,13,30,000)
Gross profit 2,53,75,000 2,70,29,000 2,88,77,850
Expenses
Salaries & wages 1,13,50,000 1,16,15,000 1,1710,000
Rent 6,00,000 600,000 600,000
Insurance 400,000 500,000 550,000
Bad Debts 12,00,000 12,50,000 13,00,000
Legal/accounting 600,000 600,000 600,000
Miscellaneous 600,000 8964000 9693850
Total Expenses 2,33,75,000 2,35,29,000 2,44,53,850
Net profit 20,00,000 35,00,000 44,24,000
BALANCE SHEET Year 1 Year 2 Year 3
Assets In Rs.. In Rs…. In Rs….
Current assets
Inventory 7,00,000 735000 790150
Account Receivables
46,75,000 45,09,000 42,59,650
Cash 44,00,000 4620000 4966500
Other Current Assets
64,75,000 6798750 7308650
Long term Assets 72,25,000 7586,000 8155200
Total Assets 2,34,75,000 2,42,48,750 2,54,80,150
Liabilities and Capital
Capital Liabilities
Account Payable 14,50,000 1522500 1636700
Other current liability
14,25,000 1496250 1608450
Long term Liability 94,50,000 95,22,500 96,50,000
Capital invested 1,11,50,000 11707500 12585,000
Total Liabilities 2,34,75,000 2,42,48,750 2,54,80,150
RISK MANAGEMENT
Risks associated with out restaurant are employee practices liability, employee dishonesty and product liability.
Two hazards which can quickly drive restaurant into bankruptcy are- damages caused by fire and damages being linked to a food borne illness.
The main objective of Red Chilis is to develop a risk management plan to minimize all potential safety and security risks; to maintain a positive public image.
We need to provide a safe working environment as well as prepare and train for the unforeseeable accidents, damages etc.