MPS

BUSINESS PLAN
GOAL! Dan Dana
Dan
Theme Restaurant
Submitted by:- GROUP 8

Zain Waris 103

Aditya Rai 104
Swapnil Rane 105
Nikhil Sakhare 106
Swapnil sarvade 107
Ashish sawant 108
Theme based restaurant:

It’s not just food that people look for. Some Restaurants even serve food on conveyor belts
and provide reading rooms with masseurs, a far cry from the Chinese and South Indian
places that the city boasted of. The hospitality industry has evolved in the past 15-20 years
and the people who are a part of it have realised they have to offer much more than just
food to maintain the footfall.

People want to try their hand at new things, they demand better service and value for
money. In a fast paced world, one has to come up with newer and brighter ideas to stay
ahead in the race.

The Concept:

We are planning to come up with a football theme based restaurant in Pune. The restaurant
will be one of its kind theme restaurants. The restaurant will be located in Senapati Bapat
Marga, which is has many colleges in its vicinity & the area is very well connected with all
the major hot-spots in the city.

GAPS & Opportunities:

We performed a market research prior to going ahead with the decision. The major findings
of the research are as follows:

a. There is an increasing craze of football in India.

b. People prefer theme restaurants as they combine the food with eye-catchy
ambience.
c. More and more people in tier 2 & 3 cities have more disposable income.
d. There are currently no sports theme based restaurants in Pune.
e. The theme based offerings are usually limited to bars & pubs.

Based on these findings, we feel that the sports theme based restaurant would fill the gap
that exists between market offering & customer’s latent demand.
SWOT Analysis:

After having done the Market Research & the feasibility analysis, we did a SWOT analysis.

•Theme based family • No prior experience in

restaurant hotel industry
•Youth immigrant crowd
in the area
•Centrally located
•Multi-cuisine restaurant
Strength Weakness

Opportuni
ty Threat

• First movers advantage • Inflation

• Growing football craze • Competition from
• Foreign nationals established players
• Scope for expansion • Seasonal nature of
game

The Facility Layout:

The interiors will be made to be in sync with the football theme. Some of the salient
features are as follows:

a. A “Hall Of Fame” with posters of legendry footballers along all four walls.
b. The seating arrangement would be like a team dugout. These dugouts can be easily
customized according to the live matches to be played.
c. There will be 4 giant Plasma screens for guests to enjoy live matches.
d. The table cloth will be in shape of football ground.
e. The cutleries will be in sync with the theme

It will be a duplex restaurant with 2000 sq feet’s of area. The ground floor will serve Indian,
Mughlai & Continental, whereas the 1st floor will serve Italian, Lebanese & French. The
division is specifically done keeping in mind the foreign crowd who are in sizable numbers in
the vicinity.
The Organization Heirarchy:

We have opted for a decentralized system which would enable quick decision making. While
allocating departments, care is taken to match the competence & experience of an
individual with the job requirement.

Manager

3 Captains 6 Head chefs

6 Utility Workers 8 Waiters Assistant chefs Assistant chefs

Management Team:

Business Accounts Logistics

Manager
Development Management Management

Aditya Zain Nikhil Swapnil

Rai Waris Sakhare Rane

Swapnil Ashish
Saravade Sawant
Compensation:

Each member would get an equal share of margins generated. The exact compensation
structure is yet to be decided. In addition to this, incentives/ bonus would be provided as
per one’s performance. Going ahead, we aim to standardise the compensation/ appraisal
framework making the system more transparent.

Contracts:

Contract creation is underway & law will take its own course. However, we have reached
few agreements which essentially demands unconditional support from each one of us.
Also, going ahead when we expand in other cities, we plan to have a decentralized system of
management linked to the core executive team. The legalities need to be worked on.

Advisory Board:

Since none of us has any experience of working in the hotel industry, it became imperative
for us to look for someone who can guide us through the initial years. However, considering
the tight budget constraints, hiring domain specialist was not an option. Hence, we
approached our friends who have experience in hotel industry & persuaded them to be part
of our advisory board. We are very thankful to Manesh Vasudev & Sarang Joshi in this
regards.

Industry Description:

We will be part of hotel & restaurant industry & more specifically Theme Based Restaurant
industry to start with. Our restaurant will be located in Pune, Senapati Bapat Marg. Our
initial focus would be college students & IT professionals residing in the area. Our market
research has shown that there is a sizable number of migrant populations with high
disposable income which we aim to capture with a unique offering by blending sports with
food.

Major Segments:

The major segments in hotel industry in India include:

 Fast Food
 Coffee shop & casual dining
 Upscale Restaurants
 Hotels
 Business & industry
 Transportation
 Healthcare
 Speciality Gourmet
 Armed Services
Growth rate & growth potential:

The hotel & restaurant industry is growing at a rate about 7% in the last 3 years. With the
increase in urbanisation & increase in the disposable income with people the spending
towards outside foods is bound to increase in a much unprecedented rate.

Competition:

Our survey revealed that presently no football theme based restaurant is serving in Pune.
Our first mover advantage will give us a clear head start over others we have plans to move
to other segments before competition catches up. We aim to create entry barrier through
long term relationship building with the institutions by proving them real time service back-
up.

Multi-cuisine we are offering

1. Indian
2. Chinese
3. Continental
4. Lebanese
5. Muglai
6. Italian

Marketing & Sales strategy:

 In order to catch the right target audience we have done tie-up with sports
equipment giant Adidas to promote our brand by distributing our discount vouchers
to its customers.
 There are lot of education institutions, B-schools in the locality where our restaurant
is located. We will sponsor their sports events & distribute our discount vouchers in
their academic & cultural events.
 In the local monthly magazine with the target audience of SEC-B1 females, we will
publish a recipe & also run recipe contests for housewives.
 We would tie-up with SnapDeal.com & Burp.com to promote special offers during
weekdays.

Promotional Strategy:

 We would be running promotional offer in the first week of launch wherein each day
one lucky guest can win free game CD of FIFA 2010.
Finance and Budgeting:-

Initial investment cost-

 Initial interior cost = 14,00,000 Rs

 Cutlery cost = 6,00,000 Rs

 Advertisement & promotion = 3,00,000 Rs

 Administrative expenses = 5,00,000 Rs

28, 00,000 Rs

Fixed costs (monthly basis):-

 Rent for 2000 sq.ft = 50,000 Rs

 Labor cost = 2,51,000 Rs

3, 01,000 Rs

Variable cost:-

 Inventory = 50 % of sales

 Utilities = 50,000 Rs per month

Break Even Analysis:-

No of customers daily SALES VC FC TC Profit/loss

0 0 600000 3612000 4212000 -4212000

56 4000000 2600000 3612000 6212000 -2212000

70 5000000 3100000 3612000 6712000 -1712000

84 6000000 3600000 3612000 7212000 -1212000

98 7000000 4100000 3612000 7712000 -712000

112 8000000 4600000 3612000 8212000 -212000

126 9000000 5100000 3612000 8712000 288000

140 10000000 5600000 3612000 9212000 788000

Break Even chart:-

12000000

10000000

8000000
No of customers daily
6000000
SALES
4000000 VC

2000000 FC
TC
0
Profit/loss
1 2 3 4 5 6 7 8
-2000000

-4000000

-6000000

Pay-Back Period:-

Pay-back period at 165 customers on average daily.

EBIDT 17, 88,000

Less: interest 2, 80,000

EBDT 15, 08,000

Less: depreciation 2,00,000

EBT 13, 08,000

Less: tax 3, 92,400

PAT 9, 15,600

Add: depreciation 2, 00,000

Net cash flow 11, 15,600

Net cash outflow= 28, 00,000 Rs

Hence,

Payback Period = Net cash outflow

Net cash inflow

= 28, 00,000 / 11, 15,600

= 2.5

Payback period is 2 years 6 months