BUSINESS PLAN

On

HIGHWAY RESTAURANT
Submitted by:
Mehul Patel (5043)
Dipak Zanzrukiya (5085)
5th year M.B.A
Submitted to:

Gujarat University
Ahmedabad

A report which projects the practical viability venture with respect to different
dimension is called a feasibility report.
Feasibility study mainly includes the feasibility study of the three important
parameters. They are marketing feasibility technical feasibility and financial
feasibility.
A feasibility study aims to objectively and rationally uncover the strengths and
weaknesses of an existing business or proposed venture, opportunities and threats
present in the, the required to carry through, and ultimately the prospects for
success. In its simplest terms, the two criteria to judge feasibility are cost required
value to be attained

Technical feasibility
This assessment is based on an outline design of system requirements, to
determine whether the company has the technical expertise to handle
completion of the project. When writing a feasibility report, the following
should be taken to consideration:
A brief description of the business to assess more possible factors which
could affect the study
The part of the business being examined
The human and economic factor
The possible solutions to the problem

Market feasibility

 Market feasibility studies typically involve testing geographic locations for a

real estate development project, and usually involve parcels of real estate
land. Developers often conduct market studies to determine the best location
within a jurisdiction, and to test alternative land uses for given parcels.
Jurisdictions often require developers to complete feasibility studies before
they will approve a permit application for retail, commercial, industrial,
manufacturing, housing, office or mixed-use project. Market Feasibility
takes into account the importance of the business in the selected area.

Financial feasibility
In case of a new project, financial viability can be judged on the following
parameters:
Total estimated cost of the project
Financing of the project in terms of its capital structure, debt to equity ratio
and promoter's share of total cost
Existing investment by the promoter in any other business
Projected cash flow and profitability
The financial viability of a project should provide the following information
Full details of the assets to be financed and how liquid those assets are.
Rate of conversion to cash-liquidity (i.e. how easily can the various assets be
converted to cash?).
Project's funding potential and repayment terms.
Sensitivity in the repayments capability to the following factors:
Time delays.
Mild slowing of sales.
Acute reduction/slowing of sales.
Small increase in cost.
Large increase in cost.
Adverse economic conditions.

PEST ANALYSYSIS
(1) POLITICAL ENVIORMENT
This factor looks at how government regulations and legal issues affect a
company's ability to be profitable and successful. Issues that must be
considered include tax guidelines, copyright and property law enforcement,
political stability, trade regulations, social and environmental policy,
employment laws and safety regulations. Companies should also consider
their local and federal power structure, and discuss how anticipated shifts in
power could affect their business.
Restaurant will also be influenced by the political changes. A change in
political party and new policies of new government may affect the
business.
(2) ECONOMIC ENVIORMENT
This factor examines the outside economic issues that can play a role in a
company's success. Items to consider include economic growth, exchange,
inflation and interest rates, economic stability, anticipated shifts in
commodity and resource costs, unemployment policies, credit availability
and unemployment policies.
Various economic factors that affect to the restaurant are :
Purchasing power
Unemployment and labor supply

(3) SOCIAL ENVIORNMENT

This issue analyzes the demographic and cultural aspects of the company's market.
These factors help businesses examine consumer needs and determine what pushes
them to make purchases. Among the items that should be examined are
demographics, population growth rates, age distribution, attitudes toward work, job
market trends, religious and ethical beliefs, lifestyle changes, educational and
environmental issues and health consciousness
Factors affects like
Population health, education and social mobility and attitudes.
Lifestyle choices
(4) TECHNOLOGICAL ENVIRONMENT
This factor takes into consideration technology issues that affect how an
organization delivers its product or service to the marketplace. Among the
specific items that need to be considered are technological advancements,
government spending on technological research, the life cycle of current
technology, the role of the Internet and how any changes to it may play out,
and the impact of potential information technology changes. In addition,
companies should consider how generational shifts, and their related
technological expectations, are likely to affect those who will use their
product and how it is delivered.
The technological environment refers to the sum total of knowledge
providing ways of doing things.
Here in our restaurant we are using the best upgraded technology in
providing best quality food.

SCOPE OF BUSINESS

The aim of preparing this report is to know how to establish a restaurant.

The location of the restaurant is at Limbadi, on NH-8 (Ahmedabad- Rajkot) which
is just 3.5 kms away from Limbadi and middle point of these two major cities.
The area of land covers 12000 sq.ft. The land is an agricultural land which is
needed to be converted into non agricultural land and take NOC certificate from
the panchayat. Thereon the construction work will be started and it will take one
year.
The restaurant is a part of service industry so that providing the best services is
very challenging job.
There is a full range of services. A customer driven approach will be used. The
valuable service will be given priority.

LEGAL CONSENT

Partners are decided to carry its own capital in making a restaurant on highway.

1.NAME:
The partnership business has been and shall continue to be carried on the
name of HOTEL HIGHWAY

2.DATE OF COMMENCEMENT:
This partnership shall be deemed to have been commenced on and with
effect from April 1, 2014.

3. THE ACCOUNTING YEAR:

The accounting year of the company will commence from April 1 and will
end on March 31 every year. The first accounting year of the firm will be 01-042014 to 31-03-2015.
4. CAPITAL:
The amount lying to the credit of the partners as on 01-04-2014 shall be
deemed to as their capital investments. Further capital, loans will be taken from
SBI.
5. SHARE IN PROFIT AND LOSS:
The net profit or loss of the partnership firm after deduction of all expenses
will be shared equally among the partners
6. THE BANK ACCOUNT:

The bank accounts are keeps at STATE BANK OF INDIA or accounts shall
be maintained in the name of the firm and shall be operated by any of the partners.
7. INTEREST RATE:
The interest rate will be that of prescribed under section 40(b) (IV) of the
Income Tax Act, 1961 shall be paid to the partners or credited to the partners on the
amount standing to the credit of the account of the partners. Such interest shall be
considered as an expenditure of the firm and shall be debited to the Profit and Loss
Account of the firm before arriving the divisible profit and loss.
8. DISSOLUTION:
All the partners have right to dissolve partnership under appropriate
circumstances. Upon dissolution the partners have right to get accounts of the firm
and surplus according to their shares.

STEPS IN STARTING A RESTAURANT

STEP 1. First of all we need to find an appropriate space on the highway, which is
near to city and also it has a good traffic of road so that we can find a customer as
well as we can easily get the required resources. So we have taken a land of 35
lacks on highway.
STEP 2 We need to make a building for restaurant with all the facilities for the
customer it has around 27 lacks including banquet hall and restaurant. It has taken
a time of one year and fixing a plant and furniture.
STEP 3 we have to do proper marketing before starting a restaurant we have done
it through the hoardings and news paper advertisements.
STEP 4 We have done a contract with all the material provider and an purchase
manager who controls and manages the inventory and purchases and also with
labour contract with the agency.
STEP 5 Thus the restaurant has been starts.

MARKETING FEASIBILITY

The earlier survey made and prevailing market trends shows a huge market
potential. There is a lack of outstanding quality in the highway food. The survey
also show the unmet demands of the customer which are to be targeted.
Marketing strategies:
Advertisement
The advertisement will be done through mainly by advertising on
NEWS PAPER
HOARDINGS ON HIGHWAYS
LOCATION ANALYSIS

Lots of development done as well as still to be done on the highway.

Very middle point between Rajkot and Ahmedabad.
Road having a lot of traffic.
Major entertainment on highway like Highway food Mall.
Away from city area, Generally people like to have a peaceful and different

place for the parties.

Special attractions like garden for out sitting and children play area.
Near to city Limadi to get the customer from there also.

RESTAURANT PROFILE

NAME:
SIZE:
PRODUCTS:

HOTEL HIGH-WAY
Medium Scale
Restaurant: Food& Beverages
Banquet hall : AC hall for marriage and parties

BANK:
LOCATION:

State Bank of India

AT Limbadi
Ahmedabad- Rajkot highway (NH-8)

WEBSITE :

www.hotelhighway.com

Objectives:
To provide best quality food to people who are travelling
To provide better services to the customer,
To provide better environment to the customer

Estimated Staff
40 persons

Special Services
Membership card facility to avail such discount in season
Online table booking facility

RESTAURANT & BANQUET HALL MENU

Restaurant: Kathiyavadi food
Indian Punjabi food

 Indian Chinese food

South Indian Food
Italian food
Besides it also provides cold drinks ice creams and beverages to the customer and
Indian fast food like sandwich and tea& coffee.

THE RESTAURANT IS 100% PURE VEGETARIAN RESTAURANT

Banquet hall:
An air conditioned hall with a capacity of 500 people and open lawn with capacity
of 1000 people for parties and marriage functions. The food will be prepared
within hotel and provided to the customer.

Rent: 20,000 per day

EXPENSES & ASSET PURCHASES

PRELIMANARY EXPENCES
Particular

Amount
115,000

Liscence Fees
Registration fees

70000

Partnership deed

15000

TOTAL

Sr No.
1
2
3
4
5
6
7
8
9

200,000

Particulars
Civil work cost
Land cost
Kitchen cost
Gas connections
Telephone connections
Computers
Furniture
Fire fighting plant
Generators
Total

Amount
2700000
3500000
665475
209467
5000
25000
665091
16300
65000
7851333

EQUIPMENTS IN BANQUET HALL

EQUIPMENT

QTY

PRICE PER

TOTALCOST

tubelites
Bulbs
Ac
Vaccum cleaner

EQUIPMENT
200
40
25300
5000

14
25
10
2

2800
1000
253000
10000

ELECTRONICS EQUIPMENT
EQUIPMENT
Tubelites
Fans big
Fans small
Bulbs
Salamander
Water cooler
Ac
Exhaust fans
Weight machine

QTY
15
7
5
13
2
2
4
4
1

PRICE PER
EQUIPMENT
200
765
1250
40
2000
7200
25300
495
5500

HUMAN RESOURCE FEASIBLITY

TOTAL COST
3000
5355
6250
520
4000
14400
101200
1980
5500

Salary structure
Sr No.
1
2
3

DESIGNATION No.of
people
Executive staff
1
Other staff
7
Kitchen staff
4

Salary per Monthly

person
pay
6000
6000
3000
21000
1200
48000
TOTAL

Yearly pay
72000
252000
57600
381600

Selection:
The kitchen staff will be provided by the agency and executive staff will be hired
by the personal interview by the partners and managers.

FINANCIAL FEASIBILITY
TRADING A/C (2014-15)
TO PURCHASE
To food purchase
To transportation cost
To inventory maintenance
cost
To gross profit
(Transferred to P&L AC)

765715
71200
24618

BY SALES
By Food sales

1920215

1058682
1920215

1920215

PROFIT AND LOSS A/C (2014-15)

PARTICULRAS
Beaverages consumed

To salaries
To staff meal AC
To electricity expenses
To telephone expenses
To administrative
expenses
To stationery expense
To cleaning agents
To maintains and repairs
To gas ac
To newspaper expenses
To decoration expenses
To generator and diesel ac
To panchayat tax
To firefighting Ac
To depreciation on
building, furniture&
equipment
Interest on loan
Interest on partner capital
Partner A
Partner B

AMT
70000

1161600
28250
21000
61500
69780
8750
18000
93000
13600
1800
65000
53025
3500
16300
214359

380000
120000
120000

PARTICULARS
AMT
To gross profit
1058682
( transferred from trading
ac)
Income
Sale of food& bevrages
2220000
Income from banquet hall 675000

BALANCE SHEET (2014-15)

LIABLITIES
Capital/c
Partner As capital
Partner Bs capital

AMT

Net profit
Loan from SBI

375536
4000000

TOTAL

2000000
2000000

8375536

ASSETS
Land& building
F& B equipment
Kitchen equipment
Gas connections
Telephone connections
computer
furniture
Electronic equipment
Equipment in restaurant
& banquet hall
Fire fighting equipment
generators
TOTAL

AMT
6200000
65548
665475
209467
5000
25000
665091
191855
266800
16300
65000
8375536

CONCLUSION
From the whole plan analysis made I can conclude that restaurant is good profit
making business and it has return of 5% from the very first year and it will be
grown in the following year. The restaurant has made specially for on road
customer who would like to visit again.