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Franchise & Logistic Plan for New Franchise

At
Chai Sutta Bar

by

Rudra Prasad Panda

19PGPM054

Management Development Institute Murshidabad

Murshidabad 742235
July, 2020

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Franchise & Logistic Plan for New Franchise

At
Chai Sutta Bar

by

Rudra Prasad Panda

19PGPM054

Under the guidance of

Name: Abhinav Dubey

Designation: General Manager
Organization: Chai Sutta Bar
Postal Address: Indore, MadhyPradesh

Management Development Institute Murshidabad

Murshidabad 742235
July, 2020

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CERTIFICATE OF APPROVAL

The following Summer Internship Report titled "Franchise & Logistic Plan for New Franchise
At Chai Sutta Bar" is hereby approved as a certified study in management carried out and
presented in a manner satisfactory to warrant its acceptance as a prerequisite for the award of
Post-Graduate Diploma in Business Management for which it has been submitted. It is
understood that by this approval the undersigned do not necessarily endorse or approve any
statement made, opinion expressed or conclusion drawn therein but approve the Summer
Internship Report only for the purpose it is submitted.

Summer Internship Report Examination Committee for evaluation of Summer Internship Report

Organizational Guide
Signature…………………………………….
Name: Abhinav Dubey
Designation: General Manager
Address: Chai Sutta Bar
Indore, Madhya Pradesh
Pin: 452001
Tel No: 8109702995
Email: business@chaisuttabarindia.com

Signature of the Student

Name: Rudra Prasad Panda
Roll No. – 19PGPM054

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ACKNOWLEDGEMENT
“It is not possible to prepare a project report without the assistance & encouragement of other
people. This one is certainly no exception.”

First of all, I would like to express my gratitude to the Placement Committee of Management
Development Institute, Murshidabad for allowing me this opportunity for internship at Chai Sutta
Bar.
I express my deep gratitude to Mr. Anubhav Dubey, Founder of the company for considering me
worthy enough to undergo summer internship at a growing company like Chai Sutta Bar and giving
me opportunity understand how the company operate efficiently.
I would also like to solicit my gratitude to Mr. Abhinav Dubey, General Manager, for explaining
real time operation of company. He also shared how logistic department operate to make things
happen within time. He also discussed post pandemic preparation for the company. I was privileged
to experience a sustained enthusiastic and involved interest from his side. This fuelled my
enthusiasm even further and encouraged me to boldly step into what was a totally dark and
unexplored expanse before me. The experience always fuelled my thoughts to think beyond my
limits and explore a whole new world.

I would also like to thank all my group members of the internship at Chai Sutta Bar who
constantly help me with their knowledge and discuss new ideas which surely help me in future.
I am extremely thankful and pay my gratitude to Mrs. Amrita Sengupta (Faculty Mentor) for her
valuable counsel and support on completion of this project.
I take this opportunity to thank my family who has supported me in all my endeavors. I also thank
some of my friends who helped me in collecting and collating materials for this project.

Thanking You

Rudra Prasad Panda

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Executive Summary

Success of a business depends on the creation of value and fulfilment of the

customer’s needs. Chai Sutta Bar is fast emerging company in Food industry. The
company is “Making our world more special” by providing products, and
services that help customers improve their economic and environmental balance
in a costly and populated world. I, Prashant Kumar Singh, worked under
Distribution and Logistics department under the guidance of Mr. Abhinav
Dubey (General Manager of Chai Sutta Bar India). There are Three projects on
which I have worked is mentioned below:

1. Collecting all the details and price of ingredients used in any Franchise:
CSB strongly focused on Price and environmental issues. So, the distribution and
equipment handling are also focused on that. In this project I got more than 12
ingredients which are being used in any franchise. My job was to collect the data and put
it in an excel sheet which can be used later by the company officials for their
reference for opening a new franchise or also getting for old franchises. To do so I
used “tabular format” to put in an excel sheet.
2. Developing Transports List and try to find Transporters which will be
economical for the company: - CSB India is trying to open multiple franchise in the
lockdown period and as this period was not feasible to get transportation done even after
everything open again. So we were given a project to collect a data of multiple transporters
around the country and convince them to transport the all the products for the new as well as
old franchise. My task was to collect the data set of transporters and make them agree for the
transportation of products at our desired price.
3. Estimating and analysing the sales and cost requirement in opening a
new franchise: - CSB is trying to focus on the new student majority places such
as institutions and colleges to open their new franchise. So I was given a task to
analyse sales data for the new franchise after lockdown period and analyse what
will be the cost of running new Franchise in IIM Indore after lockdown. We also
given up the task to create a new menu as per the college requirements as it was
consumed by the Students.
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Content
Acknowledgment……………………………………………………………………..4
Executive Summary…………………………………………………………………...5
Table of content………………………………………………………………………..6
Chapter 1: Introduction
1.1. About Company………………………………………………………………..8
1.2. Background…………………………………………………………………….8
1.3. Vision ………………………………………………………………………….9
1.4. Mission…………………………………………………………………………9
1.5. Why CSB?.........................................................................................................10

Chapter 2: Theory

2.1 Industry Overview ……………………………………………………………11

2.2 Literature Review …………………………………………………………….13
2.3 Model Of This Business………………………………………………………15

Chapter 3: Research Problem

3.1 Rationale of Research ………………………………………………………..16

3.2 Research Objective……………………………………………………………16
3.3 Research Questions……………………………………………………………17

Chapter 4: Research Methodology

4.1 Sample………………………………………………………………………18
4.2 Procedure……………………………………………………………………18

Chapter 5: Estimation

5.1 Initial Investment……………………………………………………………20

5.2 Ordering cost………………………………………………………………...21
5.3 Operating cost………………………………………………………………..23
5.4 Revenue estimation…………………………………………………………..24
5.5 Calculation……………………………………………………………………25

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Chapter 6: limitation of study………………………………………………………26

Chapter 7: Conclusion

7.1 Result…………………………………………………………………………27
7.2 Recommendation……………………………………………………………..27
7.3 Conclusion…………………………………………………………………….28

Appendix 1……………………………………………………………………………29

References…………………………………………………………………………….31

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Chapter 1
Introduction

About Company
Chai Sutta Bar(CSB) is one of the growing start up in Food Venture industry of India
started in 2016. Within a short span of time it spreads over 25 cities with more than 60
stores. Company is looking forward to establish its presence in tier 2 and tire 3 cities.
Strong R&D department is the key part of their success. They check more than 50
condition including weather condition of the city before opening any store. There are
more than 12 new stores already lined up which is going to be open in north India.
Making the brand more visible company is planning for campus outlets in college
campuses. They have more than 100 menus in different stores as per local people
preference.

How this journey started

Anubhav Dubey a 22-year-old boy who belonged to a middle class family and was
preparing for UPSC exam started Chai Sutta Bar with his friend Anand Nayak since
they always wanted to start a food venture of their own. Later their friend Rahul
Patidar also joined them and team became stronger.

Their idea was to serve Indian tradition on the bar table by serving authentic chai and
coffee. It was started in Indore in July 2016.

Because of the uniqueness and high quality taste the venture got famous and within
just a span of year many more outlets were started. Today, we are successfully
running 66 outlets all over India with great service.

Vision of the company

India is a fast changing, fast paced and fast developing nation and we at Chai Sutta
Bar want to grow with our country. We want to reach a myriad of places by opening at
least 200 outlets to fulfil the demand of hygienic chai. We would start the contribution
to upliftment of people from our own outlets by motivating people who work with us.

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We picture a youth which knows no ‘sutta breaks’, only hygienic and eco-friendly
‘chai breaks’!

Mission
Our mission is to become an inspirational food venture where goodness of Indian
tradition is served on the bar table by providing high quality hygienic beverages in
Kulhad at affordable prices.

We want to expand Chai Sutta Bar all over India by opening at least 200 outlets to
fulfil the market demand of hygienic tea which would not only motivate youth to
reduce cigarette consumption but also it will uplift the people who work with us.

Why CSB?
Unique concept: – We invite all our customers to become saviours of mother earth as
we serve chai in a kulhad. Moreover, the chai stays steaming hot, be it summers or a
bone chilling winter!
Great taste : – Be it after a 4 hour lecture or a tiring day at office, we all have a 4 pm
chai break. What makes it even more fun is that we use high quality milk and the best
authentic ingredients to help you savour the goodness of chai!
Eco-friendly : We at Chai Sutta Bar understand our responsibility towards Mother
Nature and make sure we fulfil it each day with every eco- friendly kulhad of
happiness that we serve to you!
Many Varieties: – Is it masala chai or elaichi ? or would you prefer some ginger or a
rose chai? well then, how about a sweet kulhad of chocolate chai? we at Chai Sutta
Bar have a chai for every mood!
Smoking prohibited: At Chai Sutta Bar, it is our priority to take care of our
customers and so, smoking is prohibited at every outlet of the Chai Sutta Bar. Instead,
indulge yourselves in the mesmerizing aroma of fresh chai leaves or the tantalizing
taste of a refreshing kulhad of chai!
Fast and best service :Good things take time… but we at Chai Sutta Bar don’t keep
you waiting! Our happiness is providing our customers with the best service!
Customer friendly staff

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Great Ambience: Chai Sutta Bar has the best of chai time playlists and ambience to
complement your experience!

(Fig. 1)
(Fig. 2)

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(Fig. 3)

Chapter-2
Industry overview

Tea and coffee are one of the oldest organized industries in India. With total global
production of tea surpassing the 4 billion kg mark, India has contributed 1 billion kg
of tea. Black tea production registered a CAGR of 1.6% and its consumption at 2.3%.
Indian tea exports have not progressed much due to increase in global competition and
deteriorating quality of Indian tea. Nevertheless, tea has continued to bring in foreign
exchange to the country and generate employment owing to its labour intensive
operations, especially for women since tea leaves are plucked by women only. India,
contributing about 30% to the global tea production, stands to be the second largest
producer of tea with a market size of over INR 100 billion and the fourth largest
exporter of tea with almost over 75% of its production from the organized sector.
There are two major types of coffee – Arabica and Robusta. Over 170,000 coffee
farms mostly spread over the states of Karnataka, Tamil Nadu and Kerala produce
over 90% of total coffee in India. Although the past decades saw majority of resources
in Arabica, Robusta has taken over coffee producers’ interest due to higher yield and
better usage. Arabica is a milder blend of coffee, grown in higher altitudes as
compared to Robusta that is suited to warmer climates in the range of 20 to 30 degrees

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Celsius. Coffee is predominantly an export-oriented commodity unlike tea that is

mostly consumed domestically. The major producers of tea and coffee are Tata Global
Beverages, Dhunseri Petro and McLeod and together they capture a little over 50 % of
total market share of sale of tea and coffee.

India takes pride in the variety of tea offered – Green Tea, Darjeeling Tea, Assamese
Tea, CTC (Crush, Tear and Curl) and the like with most of it being manufactured in
Darjeeling, Assam and Nilgiri. Exports would remain flat since most of the tea
produced is consumed domestically. More than 90% of Indian households are regular
tea drinkers. The 12th Five Year Plan has allotted INR 2 billion to promote small scale
tea growing sector. Subsidies are introduced by the Tea Board to encourage micro and
mini tea factories, subsidize transportation of products and rejuvenation efforts for
orthodox tea. India sells its tea through an auction between brokers and buyers. The
chart below illustrates the entire process. In 2015, due to heavy rains and late arrival
of product, tea prices at auctions decreased which was favourable to customers.

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Literature Review

In the recent years, there has been a tremendous development in Chai Industry (Tea
Industry). A number of chai start-ups are hitting the grounds because of the vacuum of
any sophisticated place to have tea market there is. Tea, although is the top beverage
in India, lacked a quality place where it would be served. Hence, many aspiring
entrepreneurs are grabbing the opportunity and starting chai start-up. According to
BBC News, India consumes 837,000 tonnes of tea per annum. Despite hundreds of
elegant coffee places around, ‘Desi Chai’ is irreplaceable.

Given that a majority of Indian population is between 18 – 46 years of age, the rising
per capita incomes and the inherent characteristics of these beverages being addictive
in nature, demand remains inelastic and will increase with a rise in tea and coffee
drinkers in the country.  With the growing awareness of health benefits of tea, variants
of the traditional tea are growing in consumption. In India, every time is tea time.
Mornings in India are incomplete without a cup of tea. And people prefer tea over
coffee even. The Indian population consumes 30 cups of tea for every cup of coffee.
An Indian adult on average drinks at least 2 cups of chai a day. Sometimes, it
increases to 4 to 5 cups also.  India is the highest tea consuming country globally and
the second-largest producer of tea in the world after China.

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A tea stall business is perfect to start venture not only in the metro cities but also in
small towns. Actually, Tier II and Tier III cities have shown similar demand as metro
cities depending on the area and population density.

Labelled as the most favourite beverage among Indians, it was lacking a proper place
in the market. With the number of establishing start-ups hitting the notch, chai was a
mandatory business to step in.

The first chai start-up of India; started by a Harvard ex-student, Chai Point is one of
the most flourishing tea cafe chains of the country. It provides a separate counter for
the smokers, outside the café, which is the major attraction. With introducing the on
delivery, the system in less than 30 minutes Chai Point makes itself stand out of the
box. Garnering the funding of $10 million recently after a previous funding of $2
million by Saama Capital, Chai Point has shown some great development and
achievements in its journey in becoming one of the best leading chai start-ups of the
country. The company also deals in chai and coffee dispensers, which is another
unique aspect.

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Model of working

Cafe industry in India is growing more rapidly across the country. To make their
presence felt they want to establish every part of the country as well as abroad
locations. They mainly work on three basic models:

 Company owned stores

 Franchise model
 Mix model (company owned stores & Franchise model)

Company owned stores are fully operated by company management. All the
operations are done by company directly. All the cost is taken by company as well. In
franchise model, the person wants to start a café of any brand has to pay royalty fee to
the company. All the operation is maintained by that individual owner but all rules
and regulations of the company must be strictly follow. This is constantly check by
the company’s quality department. Here all profit and loss has to bear by the owner.
Owner has to pay some percentage of this profit to the company. In mix model
company is going to start its café of its own as well as franchise basis. Its depend on
demand of the brand and area of the locality.

Chai Sutta Bar basically works on mix of both the models according to the
requirement. In franchise model, owner has to pay an initial amount of 15lakh to the
company which includes 60 days’ raw materials and royalty fee. The franchise owner
has to pay 2% of its profit to the company. To make the taste similar over all the
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stores, company has made it mandatory to purchase ingredients from its store only or
the same brand products.

Chapter 3

Research Problem

Rationale of Research

The purpose of the project is to draw a standardized campus outlet plan for IIM
Indore. This standard plan may be useful for future campus plans which company has.
Company has been in this business since 2016 and know very well about this industry.
For café industry youths are the main target customer. To make they aware about the
company campus outlets are the major weapons. As the company has its Head branch
in Indore so it’s easier for them to in local college campus. That’s why I choose IIM
Indore. In this campus, already 2-3 other company outlets are there. So to make it
success and demandable for campus students, it is required to plan a correct estimation
of cost and revenue. Forecasting is another part which has to be done correctly. A
good forecasting system not only results in improved customer satisfaction but it also
helps an organization in reducing the cost thereby increasing the profit of the
company.

Research Objective

The main objective is to open an outlet in the campus of IIM Indore.

This would require following sub objectives:

 How company works and what kind of model they follow.

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 Understand the difference between campus outlet and normal outlet stores.
 Understand Rule & Regulations of IIM Indore to open a new outlet.
 Understand major problems that students faced with other outlets which are
already present in the campus.
 Construct a plan to solve problems face by the students.
 Construct a blue print of cost estimation and revenue generation from the
outlet.

Research Questions

Basically questions are regarding rules inside the campus which has to be obey. There
are some questions regarding procedures of opening the campus outlet and about the
problems students face in their day to day activity. These questions are FAQs. We put
it in appendix 1.

Refer appendix 1 for questionnaire.

Process of Opening outlet in IIM Indore:

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(Fig. 4)

Chapter 4
Research Methodology

Sample
A sample is a finite part of a statistical population whose properties are studied to gain
information about the whole. When dealing with people, a sample can be defined as a
set of respondents (people) selected from a larger population for the purpose of a
survey.

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Sampling is concerned with the selection of a subset of individuals from within a

statistical population to estimate characteristics of the whole population. Sampling is
an important part of any research because the research findings depend upon the
selected sample. There are various ways in which sampling can be done. In this
research the sampling method used was purposive sampling. This method of sampling
is also known as judgment, selective or subjective sampling. In this type of sampling
the researcher uses his/her judgment to select cases that will bebest able to answer the
research question(s) and to meet the objectives. Purposive sampling is often used
when working with very small samples (such as - in case study research) and when
you wish to select cases that are particularly informative.

Procedure

 Secondary research

The main objective of this research was to collect data from the college regarding the
procedure of opening an outlet and information regarding student’s strength and their
problems. Secondary research refers to the use of secondary data. Secondary data is
the data is collected by someone other than the user. Analysing and interpreting
already existing data is known as secondary research. It involves the collation and/or
synthesis of already existing research.

 Estimation

After collecting data, we prepared a blue print of how to open new outlet. From the
data collected from secondary research it was bit helpful to estimate a cost sheet
which include initial investment, fixed cost & operating cost. Considering no. of
students present within campus we estimated a revenue sheet which shows the
company’s income from this outlet. Here we considered maximum cost and minimum
revenue concept to make the plan more realistic and viable.

 Analysis

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From the estimation of cost and revenue, we calculated the breakeven for this outlet.
Also recommend some new techniques for more efficient operation.

Chapter 5

Estimation

we consider current college campus strength which include students, faculty members
and other staffs.

PARTICULAR NUMBER
STUDENT 1300
STAFFS INCLUDING FACULTIES 100
TOTAL 1404
(Table- 1)

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Note- This data was taken as mentioned on the college website. Actual population
may more than this. It was considered as minimum basis.

Initial Investment: This cost is for infrastructure installation which is estimated

around 9 lakhs as it is company driven franchise but when it costs 15 lakhs when the
franchise is opened by other individual.

No. Investment Value Total requirement Cost

1 Furniture 300000 300000
2 Air conditioner 40000 1 40000
3 Machines 300000 300000

(Tea machine, coffee machine,microwave,etc)

4 computer 30000 1 30000
5 Refrigerator 15000 2 30000
6 other expenses 200000 200000

(utensils, Aqua guard, cooking instruments,light,fan etc)

Total 900000
(Table-2)

Ordering Cost:

Raw Materials for Weekly Functioning

QUANTITY
DAILY REQUIREMENT(WEEKLY
INGRIDIENTS QTY APPROX) PRICE COMMENTS
Milk 37 LTR 300 LTR 300* Rs (500+ 100+10+5 ) 15000
50=8250 CUPS DAILY *7
DAYS * 60 ML MILK
PER CUP APPROX
=258300ml WEEKLY
= 258 ltr

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((includes tea coffe

and cold coffe
expected sales ))
500 CUPS DAILY *7
DAYS * 6 GRAMS
13 * Rs PER CUP APPROX
300 21000 GRM
Tea Leaves 3 KG ~21 KG =6300 WEEKLY 6300
(100 + 05 )CUPS
DAILY * 7 DAYS *6
4.5 * Rs GRMS
400 APPROX 4410 GRMS
Coffee Powder 0.65 KG ~4.5 KG =1800 WEEKLY 1800
500 TEA+ 100
H.COFFEE + 50
650 * Rs BUFFER FOR
Kulhad 92 PCS 650 PCS 2 =1300 DAMAGE 1300
300 2 * Rs Only being served with
Ketchup GRMS 2 KG 160 =320 the fries . 320
currently maggie , fries
150 1 * Rs 20 , poha only being
Salt GRMS 1 KG = 20 cooked. 20
~700 CUPS DAILY *
7 DAYS * 5 GRMS
PER TSP APPROX
25 * Rs 24500 GRMS
Sugar 3.5 KG 25KG 42 =1050 WEEKLY 1050
50 SANDWICH
DAILY * 2 PCS
NEEDED TO
PREPARE A PCS =
100 PCS REQUIRED
23 USABLE PCS IN A
PACKET
4 28 * RS APPROX 5 PACKET
Bread PACKET 28 PACKET 30 = 840 NEEDED 840
30 WEEKLY DAILY *
210 * Rs 7 DAYS =210 PCS
Eggs 30 PCS 210 PCS 5 = 1050 EGG 1050
525 * rs 75 PACKET DAILY *
Maggie Packet 75 PCS 525 PCS 11 = 3850 7 DAYS = 525 PACKS 5775

1kg = 7 PLATES
49 * Rs approx
40 = if ~50 Plates sold
Raw Poha 7 kg 49kg 1960 Daily so 7kg daily 1960

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requirement * 7 days =
49 KG weekly
1kg = 10 plates of fries
if 20 Plates sold Daily
18 * Rs * 7 days = 140 plates
150 = weekly = 14 KG
Frozen fries 2 kg 14kg 2100 weekly 2100
2* Rs 50
GINGER 300 grms 2 KG = 100 Needed for tea 100
1 * Rs
1600 =
ELAICHI 150 grms 1KG 1600 Needed for tea 1600
for bun maska, 50
plates daily * 7 Days =
350 Plates
23* Rs 1 Kg butter can be
120 = used for 15 buns ,
Butter 3.1 kg 23 KG 2760 Hence 350/15= ~23 kg 2760

Need 50 buns daily ,

63 pack * 350 weekly , 1 packet
Rs 36 has = 6 buns, 50/6 = 9
Bread Bun 9 packets 63 packet (350 PCS ) =2268 packets daily 2268
Rs 25 per burger buns
140 * Rs 20 PCS daily * 7 days
Burger bread 20 PCS 140 PCS 25 =3500 = 140 PCS Weekly 3500
20 PCS daily * 7 days
= 140 PCS Weekly
2 * Rs 1 Packet = 32 PCS , so
Burger Cutlet 1 pack 70 PCS = 2 pack 240 = 480 2 packet for a Week 960

Misllaneous     Rs 2000   2000

        Total 50703
(Table 3)

Note: This cost sheet is based on the menu which company provide on their campus
outlet and strength of the population. Some item cost may vary from place to place.

The data mentioned on the table are the weekly ordering cost which is approx.

Rs 50100. Monthly ordering cost around Rs 255000.

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Operating Cost

Rs./ month Comment

In IIM I vendor report rent is 40 Rs/ sq. Feet, we assume 250 sq.
Rent 10000 Feet, Light bill included
4 employee, 2 employee salary= 10000, 2 employee salary=
Employee salary 36000 8000
Insurance, electricity
bills 6000 Safety equipment, cleaning and others

Total 52000
(Table 4)
Note: Data is estimated on monthly basis.

Revenue Estimation:

Food Items Expected daily Sales Price Per Item Revenue in Rs

Tea 500 10 5000

Hot Coffee 100 15 1500

Cold Coffee 5 60 300

Maggi 75 35 2625

Sandwich 50 35 1750

Bun Maska 50 20 1000

Milk Shake 10 60 600

Poha 50 20 1000

Fries 20 50 1000

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Burger 20 45 900

15675 Per day

Total Revenue 109725 Per week

(Table 5)
Note:
For consumption of tea we considered 250 people out of 1404 population because we
worked on minimum revenue concept. Normally a person takes tea twice in a day.
That’s why we took 250*2=500 cups of tea.

Poha and Bun maska were considered breakfast items as student prefer them. Other
existing outlet didn’t provide breakfast so these items has more order volume.

Sandwich and Maggie were most popular food item among students because it had
less cost and took less time to prepare.

Fries and Burger were taken less quantity as they were oily. People consume them
occasionally.

Here all the items present on menu wasn’t considered. We took items which were
more popular among students.

We consider 25days of working in a month.

Then total revenue generation 15675*25= 391875 per month

Calculation

total cost= ordering cost + operating cost

= 52000 + 255000 = 307000 per month

Total revenue= 391875 per month = 392000 approx.

Pay Back period:

Profit = total revenue – total cost

= 392000 – 307000 = 85000 per month

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Payback Period = 900000/85000 = 10.58 month

This time period was an approximate number. Actual period was 2-3 months more
because campus was empty during summer vacation so revenue generation may not
happen those months.

Chapter 6
Limitation of the study

Following are the limitations of the project:

i. The sample size on which the analysis is done is too small.

ii. A few other variables that are significant in the estimation are not
included due to lack of availability of data.

iii. Due to secondary research, data of the competitor outlets are not
collected due properly as they are not available.

iv. This estimation is only applicable for IIM Indore only. It won’t apply
to the other college campus.

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v. Transportation cost is not considered here due to lack of data. This

cost also affects payback period.

There was a constraint with regard to time allocation for the research study
i.e. for a period of 8 weeks.

Chapter 7
Conclusion

Results
From estimation we found that company may earn 392000 approx. out of which it had
to pay 307000 approx. for operation and inventory. From data we found that company
got a profit of 85000 approx. per month. We also analysed that the outlet would
achieve its payback period within 10-12 months’ time.

Recommendations:

 Company should send R&D team to the campus before outlet open so that
errors can be rectified.

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 Company should appoint 4-5 staffs so that preparation would be faster. It

would be helpful during rush hours.
 Outlet should try to operate 20 hr from morning 7am to night 2 am so that
students get food as per their convenience. It would increase customer base for
the outlet.
 Staffs should be operated on shift basis so that they won’t get tired.
 As other outlets don’t provide breakfast, CSB should start it which solve
problem of students as their class starts at 8.30am.
 Company should open outlet by its own because it costs less and provide more
revenue in long run.

Conclusion

With the help of the research i get to conclude that how important the logistics and
that too efficient logistics in food and beverage industry. Transportation of products to
the franchise outlets set the roadmap of the outlet either to get the taste of success or
failure. In this Industry specially there are two types of items which are being used i.e.
Perishable and Non Perishable items. So logistics become much useful and handy as
we can’t store perishable items for too long so outlets need to arrange perishable items
from local vendors and that too at low prices which would not affect their menu
pricing which is their one of the main attraction of the outlets.

Company is also planning to open a new franchise in the colleges which will be good
profitable idea for the company according to our analysis. According to the research
analysis, company is also trying to add more things in their menu which will be their
customised dish and similar to their special KULHAD chai.

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In this era most of the people are busy in their work life so they are not able to give
time to their parents or loved ones. There are lots of conflicts due to their difference in
their likings and disliking. So CSB came with the concept where chai is following
ancient tradition and their outlets ambience like the bar carries the modern tradition.
So this idea of giving service to the family liked by everyone and their 75 outlets in
the country as well as in foreign gives the clear evidence that customer OWN this
idea.

APPENDIX 1

Frequently Asked Questions

Q.1:-What is Chai Sutta Bar?

Ans.:- CSB is new venture started in 2016 by three young students in food and
Beverage Industry which has currently more than 75 outlets all over India.

Q.2:- How is CSB Different From others in the market?

Ans.:- CSB focused on the Service and customer satisfaction which leads to the
Special and ancient KULHAD model which separates CSB from other competitors.

Q.3:-What is the speciality of CSB?

Ans.:- CSB has many speciality but some of them is their pricing and KULHAD.
KULHAD is the main attraction of the store as smell of the KULHAD gives the sense
of their origin.

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Q.4:- What is the KULHAD concept?

Ans.:-CSB started its venture with this unique concept by not only doing business but
also wanted to give employment to the Potters as they were completely neglected in
our society. So they approached to the Potters and give them employment opportunity
as they customised their KULHAD and not only used in origin Franchise but also
transported them to all franchise all over the country. This gives the Potters enough
employment opportunity.
Q.5:- What is the total cost to open Franchise?
Ans.:- Total cost to open a franchise is 15 Lakhs.
Q.6:- How many total number of Franchise in the country?
Ans.:- There are total 75 Franchise in the country.
Q.7:- Is CSB planning to open Franchise in Foreign country?
Ans.:- Yes, CSB has also opened a new franchise in Dubai and also planning to open a
new franchise in Nepal, UAE & other Asian Countries too.

Q.8: - What kind of problem students face regarding food?

Ans.: - They have reached their class with empty stomach as class timing is around
8.30am and there is no breakfast facility at that time. Existing outlets open after 10am.

Q.9: - How much area college provide for café outlet and at what rent they charge for
it?

Ans.: - College provide 150sq.-250sq. Ft carpet area for outlet and charging around 40
rupees per sq. ft as rent on monthly basis.

Q.10: - what is the procedure of opening new outlet?

Ans.: - There are two procedures. One is via tender process which is happened by
govt. It is bit lengthy and take a lot of time. Other one is through student body. This is
bit less expensive and take 15days only to open.

Q.11: - At what time at most someone enter to the campus at night?

Ans.:- Campus gate are closed at 10pm. No one is allowed after that time to enter.

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References

1. https://www.chaisuttabarindia.com/about-us/
2. https://www.iimidr.ac.in/
3. https://www.ngeninvest.com/tea
4. https://articles.bplans.com/cafe-business-startup-guide/
5. https://muvsi.in/tea-shop-business-in-india/
6. http://www.teaboard.gov.in/

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