Project report on business plan

BUSINESS OPTED :: RESTAURANT

Desi Delicacy

Feeding YOU
Dil Se . . . .

Prepared By :
ITM B school.
Kharghar ,
Navi Mumbai.
 ACKNOWLEDGEMENT
We would like to express our hearty thanks & gratitude to Prof. Snigdharani Mishra ,
who provided us with her valuable guidance throughout this project. We would also thank ITM
authority for providing us the exposure to do & learn new things through this kind of business
project. We would thank all the people who participated in our survey process & gave their precious
opinions & also the restaurant-owners who provided us the opportunity to explore their menu card &
rate charts & other important information like rent, maintenance etc. which helped us in designing
the business strategy.
Introduction
KHARGHAR is an institutional area in number of students residing outside for the
purpose of their study. There are also a lot many professionals , Business persons who reside
at this place. Most of them reside near Kendra vihar area . while leaving away from their
homes, one thing they miss the most is quality food having home taste.

As per the market research 75 % of the participants are of the opinion that there is a lack of
quality restaurants which serve quality food at reasonable price. Therefore to utilize this
opportunity we are planning to set up a restaurant in Kharghar locality which caters to the
need of people for Quality food at reasonable rate.

Business Objective :
 To provide people with Quality Food & Quality Services at reasonable rates.
 To increase our customer base in terms of number as well as type of customer. ( i.e. to
expand our focus from students & professionals to the whole Society.)
 Expansion plan in terms of number of outlets & enter diverse fields like Event
Hosting , Catering etc. at the same time maintaining our quality services.
 To create our Brand Image .

Planning :
To establish our business & make it a Success we have followed the following steps.

 Market Research.
 SWOT Analysis.
 Selecting a Location.
 Financial Allocation.
 Agreements, License, Permissions.
 Promotion.
MARKET RESEARCH
In order to commence any business it is important to have an idea of actual position of
market. It helps one to Estimate the demand, Viability, Threats & Opportunities of his/her
business.

Therefore we also did the Market Research by conducting a survey. It helped us to know the
opportunities & threats prevailed in the market as well as the demand & Affordability of
customers so as to optimize our operations with maintaining Quality.

Survey

 Type of Survey : Sample Survey.

 Size of Survey : 100
 Procedure : We prepared a questionnaire containing 8 questions & get it filled by the
participants. The questionnaire is as follows.

Age: .........................

Profession : ..................................................

1. Do you think there are adequate number of Restaurants in the vicinity fulfilling
your needs for Food maintaining quality & quantity ?
(a) Yes
(b) To Some Extent
(c) No

2 . What type of Food you prefer when you visit a Restaurant?

(a) Vegetarian
(b) Non – Vegetarian
(c) Depends

3. What kind of food do you like?

(a) Simple
(b) Medium
(c) Spicy
4. Which dishes do you like the most?
(a) South Indian
(b) Punjabi
(c) Chinese
(d) Continental
(e) Others _____________________________ [please specify]

5. Maximum Amount you prefer to spend on food outside home? -----------------------

6. Maximum amount of money you would like to spend on a single plate /

particular dish viz. Paneer Tikka masala , Chicken Chilly , Prawns Malai Curry.
(a) Upto 50
(b) 51- 100
(c) Above 100

7. How much preference do you give to ambience when you visit a Restaurant?
(a) Not Necessary
(b) Desirable
(c) Inevitable

8. How much need do you feel for home delivery?

(a) Very much
(b) To some extent
(c) Not necessary.
We got the responses & we analyzed them. By analyzing it we got the following indications.

 Targeted Customer Base : - To find this we analysed the occupations of the

participants.

Target Customer Base

Students
Business Persons
Professionals

Interpretation :

From the above pie chart it is clear that our targeted customer base are students living outside their
homes. Although business persons & professionals together form fairly strong number.
 Availability of Restaurants providing food with good quality & quantity
To find this we analysed the responses to first question of the questionnaire.

Yes
No
To some extent

Interpretation : 75 % of participants perceived the need of Restaurants which provide

food with good Quality & Quantity. Therefore there are fair chances for business to flourish .
it also shows the market is not highly competitive as number of possible competitors is low.
 Taste Preferences : We analysed the responses to question no.3 of the
questionnaire to reach to a conclusion about the taste we are going to serve the customer.

Spicy
Medium
Simple

Interpretation :-The above responses show that the preferences vary mainly between spicy
to medium.50% of customers prefer spicy food while 40% of them prefer medium. This is
mainly because the majority of our customers belongs to youth. It helps us to have a better
idea about the expectations of customers in terms of taste. It will help us to serve the taste
which gives maximum satisfaction to the customers.
 Preferences for Dishes :- We analyse responses to question no.4 of the
questionnaire to know about the most preferred dishes by the customers.

Chinese
Punjabi
South Indian
Continental
Others

Interpretation :- as obvious from the above pie chart the responses about preferred dishes
are diverse, Since people come from different parts of the country. Still a major part like
Chinese , Punjabi & south Indian. This will help us in hiring the chefs who are proficient in
these cuisines. They should also have knowledge of sufficient number of different dishes to
provide the customers with Innovation.
 Amount willing to spend :- From the responses to question number 5 of the
questionnaire , we got the idea about the amount of money the customers are willing to spend
on monthly food expenditure outside there residing place.

Below 500
500 - 1000
1000 - 2000
Above 2000

Interpretation :- From the above pie chart it is apparent that the people are willing to
spend. 70 % of the people surveyed upon are willing to spend more than 500 per month.40 %
of them are even willing to spend more than Rs. 1000.therefore demand is expected to be
high as ‘ will to spend is an important Determinant of Demand.
 Preferred rates of some particular dishes :-We analyse the responses to
question no.5 to know about the customers’ expectations of some about rates of some
particular dishes viz. Paneer Tikka Masala, Chicken chilly & Prawns Malai curry.

Below Rs.50
Rs. 50 - Rs. 100
Above Rs. 100

Interpretation : Market seems to be fair about prices. People are willing to pay fair prices
for dishes. This shows that demand is relatively inelastic with respect to price. Therefore
pricing will be a much easier job.
 Preference to type of food :-We referred to the responses to question number 2 of
the questionnaire to know the types of food the customers prefer the most i.e. Vegetarian or
non-vegetarian.

Vegetarian
Non- Vegetarian
Depends

Interpretation :- As obvious from the above pie charts, the preferences vary to both
category. There are also people whose preferences depend on condition.
 Preference to Ambience :-We referred to question no.7 of the questionnaire to
know about the extent of preference the customers give to ambience.

Not Necessary
Desirable
Indispensible

Interpretation :-As it is clear from the above pie chart, people do prefer good ambience,
though only few want it to be rather good. Therefore good expenditure on ambience is
necessary to attract customers.
 Necessity to Home Delivery :-We referred the responses to question no. 8 of the
questionnaire to have an idea about the necessity the customers feel for home delivery.

Not Necessary
To Some Extent
Very Much

Interpretation :-As obvious from above pie chart 75% of the participants feel the necessity
for home delivery at some point of time.35%of them find it to be in very much necessary. So
there should be the facility of home delivery to cater to the need of customer.
SWOT ANALYSIS:

 STENGTHS:
 Better service & quality
 Student oriented structure which caters to the specific need of the targeted customer
base.
 Facility for Home delivery.
 Reasonable price.

 WEAKNESSES:
 Lack of goodwill with suppliers.
 Lack of experience .

 OPPORTUNITY:
 Lack of good restaurants serving quality food at reasonable price.
 Strong customer base .
 Strong prospect of future growth of KHARGHAR.

 THREATS:
 Existing players & there goodwill with customers & suppliers.
 Arrival of national & international food chains in KHARGHAR.
 Business is expected to be on a lower side during vacations.

SELECTION OF LOCATION :
Near KENDRIYA VIHAR in KHARGHAR. This is because of the fact that most of
the students & professionals live in this area. It will be easier for them to reach our restaurant
without spending extra time & money. Also there are less no. of restaurants in the nearby
area.
 FINANCIALS:

PARTICULARS COST

Rent 3,00,000
Equipments 4,00,000
Interiors 2,00,000
Electricity 1,00,000
Advertising 20,000
Cutlery , Crockery , Glassware , 1,50,000
Hollowware
Music system 50,000
Linen 50,000
Exhaust 50,000
Information system 50,000
Telephones 20,000
Licensing 5,00,000
Gas 1,00,000
Deposit 7,50,000
Salaries 2,00,000
Water 55,000
Maintenance 25,000
Transport 15,000
Raw materials 5,00,000
TOTAL 35,35,000

AGREEMENTS LICENCES & PERMISSIONS :

 Relationships with people such as landlords and partners develop over time. People may
change, their attitudes evolve, and they may even forget the nuances of the arrangement that were
agreed upon. In order to bridge this possible gap that may occur in future, regardless of how well or
how long you know the person in question, it is best to document all the points agreed upon.

Multiple governmental departments and sub-departments need to be contacted for approvals. By

consulting with a lawyer we prepared the various important documents such as,

 Company Registration.
 Sales Tax Registration.
 Shops & Establishments Registration.
 Fire Department Clearance (CO 4).
 Water Connection Certificate.
 Health License Police Registration Certificate (P.P.E.E.) & License to keep a place of public
entertainment (P.P.L.).
 Trade / Storage License.
 Gradation License.
 Food & Drug Control Act License.
 Insurance.
 Public Performance License.
 Pollution Clearance.
 Entertainment Tax Certificate.
 Health Certificate for kitchen staff.
 ESIS (Employee State Insurance Scheme).
 Heavy machine Operating permission.
 Weights & Measurements Certificate.
 Excise Account Register.

PROMOTION :
Promotion of a product is always necessary to make customer aware of your product or
service. Our case is no different. We are going to adopt following measures of promotion for
our restaurant.

 Banners in front of colleges, flats & four ways.

 Distribution of pamphlets with newspapers.
 Promotion through FM Radio.
 Our representatives will visit colleges to promote our restaurant & along with that
they will distribute discount coupons. The students who carry these coupons on the
inaugural will be given 50% discount.
 We will design our Restaurant Website.
 We will Design & Promote a logo for our restaurant.

IMPLEMENTATION:
 We shall search for the best deal to buy all the necessary equipments.
 We will provide customers with decent ambience .
 We will stick to our determination to serve quality food at reasonable price.
 We will maintain our services upto the mark.
 We will carry out our Tiffin service in a disciplined manner .

LEARNINGS :
 Strategies for entering a new market & to get established there & maintaining
viability of our business even in difficult circumstances
 Promotion of our product & services
 Understanding the need of customers & serving them in the best possible way
 Strategies to achieve competitive advantages
 Maintaining & increasing customer base
 Creation of Brand image