EX.

NO: 1
DATE:

BUSINESS PLAN

Executive summary

SKB restaurant a full-service restaurant located at main area of the city,The restaurant
features a full menu of moderately priced "comfort" food influenced by local peoples

taste and preferences.

As the restaurant is located at the center place it is around several colleges, schools, and

entertainment places, so it allows the chance to attract many customer .

It ensures the quality food to the customer with pleasant environment.
The restaurant features a full menu of moderately priced "comfort" food influenced by

the local peoples taste and preferences.

Restaurant will be open from 6.00 am to 9.00 pm with three meals a day.
Breakfast: morning dishes like coffee, tea, Tiffin
Lunch: variety rice, vegetarian& Non- vegetarian dishes
Dinner: casual family style dining and customer preferred foods

Objectives
1. To provide the service in terms of food with comfortable price to customer.
2. Initially the customers are mainly focused and to collect BEP in the first year.
3. Targeting and maintaining a net profit of at least 14% by the second year.

VISION:
To serve our customers with best quality
food and environment.

MISSION:

To ensure that each customer receives prompt, friendly and courteous service.
To provide nutritional and fresh, well prepared meal using only quality ingredients.
The high quality of attitude, understanding between management, staff, customer.

Company profile:

SKB restaurant is service based business, it is located at the kallukurichi, villupuram

district, tamilnadu state. The company is based on partnership business with 5 members, and the
company is started ath the initial capital of 15 lakh, where the partners invest 5 lakh and the
remaining are borrowed from bank and debtors.
The companys owner/ manager will be responsible for maintaining insurance that will
cover the loss of the building and all of its contents, as well as insurance covering business
interruption and death or injury to himself.
The company pays compensation for human resource for the effort to the company is
nearly 20 members and expnses is mainly made at initial level for the machineries.

Tagline:
Fresh thinking healthy eating

Strategy:

Quality food at relative price.

As the restaurant is being located at main area it will facing an increasing
competition therefore the menu, special services and features must be

continuously evolved.
Best quality and freshness of the raw materials to be used in the menu must be

ensured.
Provide offers at the introductory level to attract customer.
Focus on satisfying need of customer at all age.

Keys to Success:
The keys to success in this business are:
1. Product quality: Food, coffee-based, and entertainment are our products. They must be of
the high quality and value.
2. Service: Our patrons are paying to have a good time. Each member of the staff will be
courteous, efficient, and attentive.

3. Marketing: We will need to target our audience early and often. While the business is
located in a central and accessible location, many people will have to be re-introduced to
the neighborhood surrounding
4. Management: Proper inventory, employee management, and quality control arekey.

SWOT ANALYSIS:
Strengths:

With reasonable rate and quality

We will provide tasty and quality food in a clean and dining room with washing
and toilet facility.
Location

Weakness:

We are new in town

Loan burden
Restaurant is new and not established

Opportunities:

Fast growing population

All the member of management are properly qualified for the sector

Threats:

Slow recovery process of economy from current crisis.

Changes in the business may affect the sales.
Tax will be high in future.

Investment:
Owners equity capital
Bank loan
Debt
Total

Asset:

Rs 500000
Rs 800000
Rs 200000
Rs 1500000

Land &Building
Furniture (tables,chairs,sofas,etc)
Instrument for cooking
Food inventory
Cash
Bank
Total

Rs 800000
Rs 250000
Rs150000
Rs150000
Rs 50000
Rs 100000
Rs 1500000

Products:

Appetizer
Samosa&Bhelpuri
Drinks
Soft drinks & Juices
Mango shake & Lassa
Masal Tea
Vegetarian Delights
Non- vegetarian Delights
Chawl(Rice)
Ice creams

Company Structure

Manager will perform by one of the patners, and other patners focus on business
activities.
An additional manager (to be hired) will assist in maintaining and reviewing operations
of the restaurant and the entertainment venue/bar.
A chef (to be hired) will manage kitchen operations and be crucial to maintaining food
inventory stability and assistance in menu development.
An assistant manager/senior server (to be hired) who will be a salaried employee, will
provide regular table service as well as assistance to the manager and the general
manager.
A sous-chef/line cook (to be hired) will perform secondary management functions in the
kitchen as well as provide assistance to the chef in main kitchen/cooking functions.
Part-time personnel will be hired to handle bartending, serving, and dishwashing
functions.
The marketing, and accounting function will be handled by independent
contractors/consultants.

Completion analysis:

Several hotels, coffe shop are available near the restaurant but it has both food and coffe
facilities, so it is the major competitive advantage for the company to overcome their
competitor in the local area.
The products available here are based on all level of the people like lower middle and upper
class, so this is also one of the advantage for the company.

Operating costs

Fuel, water and electricity charges is Rs. 9000/-.

Salary Rs. 43000/- per month

Supply cost Rs. 18000/- each month included coffee, snacks, cups and napkins.

Advertising cost Rs. 60,000/- per year

Insurance of Rs. 10,000/- per year

Estimate of Rs. 140000/- per month for total operating cost.

Description of Management Team:

A better Management team is the core of developing any business and well motivated and
surplus paid employees contribute a major part in maintaining standard.

Team
Manager
Cooks
Waiter
Dishwasher
Guard
Sweeper
Total

Quantity
1
4
6
4
2
2
19

Financial Plan
We want to finance growth mainly through cash flow. We recognize that this means we will have
to grow more slowly than we might like.
The most important indicator in our case is inventory turnover. We have to make sure that food
inventory turnover stays at approximately four turns per month, or we risk loss through spoilage.
We do not want to let our average collection days get above 45 under any circumstances. This
could cause a serious problem with cash flow, because our working capital situation is tight.

Most credit sales will be via credit and debit cards. We do have plans to initiate direct billing for
law firms and other businesses conducting regular visits.

Pricing Strategy
Our food, drinks, and entertainment options are priced to give us an attractive margin while at
the same time offering value to the consumer. We want repeat business. We also want the
experience to remain fresh. Therein lies why the food, beverages, and musical/entertainment
programming will be relatively flexible

ADVERTISEMENT:

Distribution of Pamphlet
Advertisement through local TV channel
Newspaper
Poster

Employee pay

Waiter, Waitress, Cashier, Coffee maker Rs 250/day

Manager (Rs. 7,500/- per month)

Accountant (Rs. 5,500/- per month)

Total monthly pay- Rs. 43000/-

Price and Revenue

Appetizer: Rs 10 to Rs 25
Drinks: Rs15 to Rs 75
Vegetarian Delights: Rs50 to 100
Non- vegetarian Delights: Rs70 to Rs 250
Chawl(Rice) : Rs 75 to Rs 200

Estimated Sale:

150 each items in appetizer

65 of each item in Drinks
40 of each vegetarian
40 of each Non- vegetarian
35 of each chawl(Rice)
100 cups of ice creams

Day revenue
=75*20+65*50+40*170+40*70+35*135+100*65=Rs. 25525 /-

Monthly revenue
=Rs.25525*30=Rs 765750

Government tax

Sales tax
5% revenue=Rs. 38287/-

City planning tax

1.5% revenue=Rs. 11486.25/-

Total monthly tax expense=Rs. 49773/-

Monthly Profit

Total operating cost

Monthly profit
TR-TC-Taxes

Monthly profit

=Rs. 140000/=765750-140000-49773

= Rs. 575977.

Level of profit

Funds Borrowed

Rs.8,00,000 from State Bank of India@12.5%of interest rate

Monthly payment

Rs 200000 from debtor@ 5%of interest rate

Monthly payment

Pay for the loan

Monthly payment= Rs. 100000/-

Monthly profit= Rs.575977/-

Monthly remaining amount

= Rs. 575977-Rs. 100000-210000
Balance for 1stmonth = Rs.265977
Monthly remaining : 316344

= Rs.100000/-

=Rs 10000