Semester VI (B.Com L.L.B.

)
ENTREPRENEURSHIP P.W.

BUSINESS PROPOSAL

PREPARED AND SUBITTED BY

Manvee Bhandari 18BBL026

Mukal Garg 18BBL027

Swapnil Jain 18BBL054

Akshita Goyal 18BBL068

Vishakha Jaswani 18BBL116

Drashti Patel 18BBL120

Thalisthan BANGALORE

Business Proposal
Contact details
Address: 332, Phase 4, Koramangla, Bangalore
Mobile no. : 080-224883
E-mail: info@thalisthan.com
Instagram handel : @_thalisthan_
Website: www.thalisthan.com

Leading enterpreneur
ABC EFG
E-main: abc_efg@gmail.com
Mobile no. : 9876543210
 CONTENTS
EXECUTIVE SUMMARY ..................................................................................................... 4
INDUSTRY ANALYSIS ......................................................................................................... 6
SWOT ANALYSIS ............................................................................................................... 6
ANALYSIS OF STRENGTH ............................................................................................ 6
ANALYSIS OF WEAKNESS ........................................................................................... 6
ANALYSIS OF OPPORTUNITY ..................................................................................... 6
ANALYSIS OF THREAT ................................................................................................. 7
MICHEL PORTER ANALYSIS ........................................................................................... 8
PORTER’S FIVE FORCES ............................................................................................... 8
THE THREAT OF NEW ENTRANTS ............................................................................. 9
THE THREAT OF SUBSTITUTE PRODUCTS .............................................................. 9
THE BARGAINING POWER OF SUPPLIERS AND BUYERS .................................... 9
THE THREAT OF COMPETITION WITHIN THE INDUSTRY ................................. 10
COMPANY DESCRIPTION ................................................................................................ 11
BRIEF INTRODUCTION ABOUT THE COMPANY HISTORY .................................... 11
FROM WHERE THE IDEA CAME AND HOW ............................................................... 11
MISSION STATEMENT .................................................................................................... 11
WHAT WE ASPIRE TO ACHIEVE ................................................................................... 12
DETAILS ABOUT THE PRODUCT AND SERVICES .................................................... 12
HOW OUR PRODUCT AND SERVICES ARE UNIQUE ................................................ 13
HOW ARE WE PLANNING ON MAKING AN IMAGE IN THE MARKET AND OUR
SELLING STRATEGY ....................................................................................................... 13
MARKET ANALYSIS AND RESEARCH ......................................................................... 14
PRIMARY RESEARCH ..................................................................................................... 14
SAMPLING PLAN .......................................................................................................... 14
RESEARCH INSTRUMENT .......................................................................................... 14
MARKET OVERVIEW .................................................................................................. 15
MARKET ANALYSIS BASED ON OUR SURVEY ........................................................ 16
TARGETED MARKET SEGMENTATION ...................................................................... 18
BUYER BEHAVIOUR ....................................................................................................... 18
INFORMATION ABOUT COMPETITION ....................................................................... 20
ESTIMATED FUTURE SCOPE AND PROFIT ................................................................ 21
ECONOMIES OF BUISNESS .............................................................................................. 22
REVENUE DRIVES ........................................................................................................... 22

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 MAIN REVENUE ........................................................................................................... 22
ADDITIONAL REVENUE GENERATED FROM THE MAIN REVENUE................ 22
PROFIT MARGIN............................................................................................................... 23
GROSS PROFIT .............................................................................................................. 24
NET PROFIT ................................................................................................................... 24
NET PROFIT PERCENTAGE ........................................................................................ 25
OPERATING LEVERAGE ................................................................................................. 25
BREAK-EVEN ANALYSIS ............................................................................................... 25
BREAK-EVEN POINT ................................................................................................... 26
FIXED COSTS ................................................................................................................ 26
VARIABLE COSTS ........................................................................................................ 26
CALCULATING BREAK-EVEN POINT ...................................................................... 27
MARKETING PLAN ............................................................................................................ 30
POINT OF DISTINCTION ................................................................................................. 30
MARKETING STRATEGY................................................................................................ 30
MARKET COMPETITION................................................................................................. 30
WHERE DO WE WANT TO GO? ..................................................................................... 31
CUSTOMER ........................................................................................................................ 31
ADVERTISEMENT ............................................................................................................ 31
OPERATIONAL PLAN ........................................................................................................ 34
QUALITY CONTROL ........................................................................................................ 34
RELIABILITY:................................................................................................................ 34
ACCESSIBLE.................................................................................................................. 34
COURTESY .................................................................................................................... 35
SAFETY AND SECURITY ............................................................................................ 35
SITE SELECTION .............................................................................................................. 35
RESTAURANT INTERIORS AND LAYOUT .................................................................. 35
LAYOUT ......................................................................................................................... 36
MATERIAL ACCUMULATION AND PREPARATION ................................................. 36
RAW MATERIALS ........................................................................................................ 36
RELATION WITH SUPPLIERS .................................................................................... 38
PREPARATION AND MENU........................................................................................ 38
STAFF AND DAY TO DAY OPERATIONS .................................................................... 39
STAFF DETAILS ............................................................................................................ 39
MERCHANDISE ................................................................................................................. 40

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 SITTING PLAN AND CAPACITY .................................................................................... 40
MANAGEMENT TEAM ...................................................................................................... 41
FRONT OF HOUSE (FOH) STAFF ................................................................................... 41
BACK OF HOUSE (BOH) STAFF ..................................................................................... 42
OVERALL SCHEDULE ....................................................................................................... 43
FINANCIAL PROJECTION................................................................................................ 45
PROFIT AND LOSS STATEMENT................................................................................... 45
CASH FLOW STATEMENT .............................................................................................. 46
APPENDIX ............................................................................................................................. 50
APPENDIX 1 ....................................................................................................................... 50
APPENDIX 2 ....................................................................................................................... 52

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 EXECUTIVE SUMMARY
Our business aims at delivering people the food from various States at a single point I.e.
Thalisthan. Opening in the post area of the tech city Bangalore. This venture will try its best to
deliver the best of a state's traditional food to its customers that will make them feel that they
are eating in the state itself. This plan will serve as the financial and operational outline and
plan for the first three years of the venture’s operation. The company will obtain a loan through
the investors in the amount of 32, 00,000. Additionally, the remaining amount of Rs. 18, 00,000
will be financed by the founders themselves.

The venture will focus on the middle, upper-middle, and middle-class people. Further our main
focus is on tech corporate people, students, and the foreign guests to our corporates. In order
to attract a large number of these people, we are going with the market strategy of bill
circulation which is further explained in this document. For this sake, the restaurant plans to
advertise its service facilities through various media, and above all, it will rely more on personal
links and relationships as well. The venture will start from the beginning of 2022. Thalisthan
will be located in Koramangala, Bangalore.
The concept is entirely new of its kind. Even though there are no such players with a similar
concept in the market, but still some indirect competition can pose a challenge to Thalisthan.
These threats include other restaurants, cuisines, and snack bars but the thing that makes us
different is our concept. We believe that getting to know a variety of your counties food
cuisines brings out curiosity and hence makes people try all of them.
Further, our market plan also includes having high-scale advertisements that will help us in
creating a brand value like that of Gopal Sweats, Sagarrantham, and other local food chains.
Also, we plan on making food blogs that will help us in creating a better market for ourselves.
Further, our advertisements will also help in creating a brand name for ourselves for locals as
well. Therefore, our primary customers are the people that are settled in the city from other
states, students, the foreign guests to the corporates since we will be giving them special
discounts for the same and locals.
The market survey conducted shows the business plan to be feasible and also financial
projections for Thalisthan. show the potential for success and growth in the existing market.
The food industry is set to be at its peak in the coming time. A very few youngsters know how
to cook and hence they rely on the market to extinguish their quench for the food. On top of
that getting the home-like food and getting to taste various other cuisines at the same place is
a cherry on the cake.

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Some restaurants provide their respective state foods, there are restaurants that provide various
foreign cuisines and there are several restaurants that provide people with famous Indian
cuisines like North and south Indian but we stand on the top of the shelves because we bring
something that people have never tried to their tables. This is what makes us unique and also
will increase our market space. This will be a hangout place for all the food-savies who travel
to different places just for their food.
Further, this entire proposal deeply briefs about the type of competition we have got, our
challenges, opportunities, etc. Also a fine financial projection of coming 3 years, along with a
break-even analysis. Further, the proposal also explains our operation plan, our estimated
schedule, and also our management team.

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 INDUSTRY ANALYSIS
The food industry is a dynamic industry with a lot many choices and preferences. The type of
industry we are stepping into is a mature industry. In this type of industry, the growth rate is
slow and less increase in demand. To face this challenge, Thalistan has come up with a new
innovation of providing 12 different regional thalis. As being a beginner in the food industry
where there are already too many competitors.

The importance of calculating the break-even point is to determine the number of products your
restaurant needs to sell to make a profit. Break-even analysis is conducted to sell more products
and to determine the profits business is making under the current sale volumes.

SWOT ANALYSIS
The analysis would help in understanding the current status and future scope of the restaurant.
It will also help in the growth of the restaurant.
ANALYSIS OF STRENGTH
The core strength is we are serving a specific type of ethnic food of few states at one place
which is not served elsewhere in the area. The strength of the restaurant lies in the overall
experience of the customer in the restaurant.
ANALYSIS OF WEAKNESS
Weakness gives scope to improve the restaurant. For instance, wait staff creates a weakness
since they provide personal service to each table. Another weakness may exist if you do not
provide adequate employee training, such as showing wait staff how they should attend to
tables or explaining to culinary personnel how you want food prepared and presented.
Relying on an outdated point-of-sale system or using paper to keep track of ordering and
stocking is a weakness because there are better ways of calculating your stockroom, order,
and financial needs which requires more capital investment.
ANALYSIS OF OPPORTUNITY
Opportunities that help your restaurant increase its profits, such as expanding or providing
different types of food and beverages. Finding new ways to generate more traffic during slow
times like in the afternoon may represent an opportunity. Offering delivery services and take-
out or setting up a drive-through to meet the needs of the people on the go represents another
opportunity.

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ANALYSIS OF THREAT
Competing restaurants located nearby represent a threat to your business, especially if you
sell similar types of food or have similar dining experiences. New restaurants opening up in
your area also represent a threat, since area diners have more options on where to spend on
their dining. The threat is the potential rising price of a certain food, then we need to raise
the price or find new supplies because then their might lose business.

Analysis of Strength Analysis of Weakness

Serving tasty food,
Difficult to access to capital and funding
Offering high-quality services at the table
High-cost structure
Attractive store design/layout
Limited market share
Great customer experience delivered
Limited product range
High level of customer loyalty
Limited sales area coverage
High-quality staff
No app of the business
Clear segments targeted effectively
No expertise in creating engaging online
Customer-centric strategy
content
Clearly differentiated products
Weak bargaining power with suppliers
Able to charge a price premium
Dynamic competitive landscape
High ratings on review websites
Many emerging new entrants
Consumer “love” for the brand
Many substitute competitive products
Great value products

Analysis of Opportunity Analysis of threat

Further, develop our sales/service team Rising fixed costs

Use high-quality employees to cross-train Slower growth due to the inability to raise
other staff funds

Attract new customers through special offers Consumers becoming more price-sensitive

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 Develop and implement a loyalty program Key competitors gaining market share

Grow customer loyalty/retention Competitors introducing better/improved

Improve the overall customer experience
Broaden our product range to target new
segments
products
Disruptive new competitors
Competitors providing more “value add”

More clearly differentiate our product Home delivery competitors

offering
Poor ratings on review websites
Broaden our geographic reach
Weakening supplier relationships
Build online engagement with our brand
Declining economic conditions
Build our brand awareness

Utilize key sponsorships to broaden our

brand

Develop relationships with online

“influencers”

Target review websites for better ratings

Demand for home delivery services

MICHEL PORTER ANALYSIS

A variety of factors, including inventory spoilage and low scalability, lead to generally low-
profit margins it using Porter’s Five Forces, an industry analysis framework

PORTER’S FIVE FORCES

Porter’s Five Forces is an analysis methodology that gives a measure of competitive intensity
within an industry, is a staple in strategy planning. According to Porter, every industry and
business is faced by the same five competitive forces:

 The threat of new entrants

 The threat of substitutes
 The bargaining power of customers

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  The bargaining power of suppliers
 The threat of competition within the industry

These five forces affect the restaurant industry and drive down restaurant profit margins.

THE THREAT OF NEW ENTRANTS

Many aspiring restaurateurs entering the business, create a threat of new competition
and decreasing industry profit margins Many restaurants are already successful chains and
offer franchising options that require aspiring restaurateurs to put very little money down. In
this way, the restaurant industry seems very attractive, due in part to the survivorship
bias. People have more credibility and do not see it failing.

THE THREAT OF SUBSTITUTE PRODUCTS

The greatest competitive challenge comes from substitute products and services. The
consumers may shift over to fast-food chains, cafes, food trucks to fast-casual venues (cafés,
deli, and diners), to independent eateries. Eating out is discretionary spending and where to eat
is a choice.

Also in tough times, consumers can reduce their eating-out budget or not eat out at all. In covid
situations, people preferred home delivery or did not order at all. People might only prefer
healthy food like ready-to-eat salads or home-cooked food. This further decreases restaurant
industry profit.

THE BARGAINING POWER OF SUPPLIERS AND BUYERS

Two important competitive drivers in Porter's Five Forces are the bargaining power of suppliers
and the bargaining power of buyers
Suppliers: When dealing with suppliers of fringe products restaurants may not have much
bargaining power because of the lack of competition in the supply market. Even large producers
of simple ingredients like potatoes, rice, and wheat are sold to a huge number of restaurants,
which makes bargaining with these suppliers challenging as well.
Buyers: In the restaurant industry, customers cannot typically bargain for their food prices.
Buyers have a good knowledge of the market and will simply go to another restaurant. The
prices cannot be too high.

Thus, the power of the huge supplying companies and savvy customers are two forces pushing
restaurant profit margins down.

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THE THREAT OF COMPETITION WITHIN THE INDUSTRY

The restaurant industry is a trendy and high-end establishment and offers exotic or rare
ingredients to set itself apart from competitors. The competitors may charge lower prices or
bring out additional food items in their menus or services. There is an enormous amount of
competition in the restaurant industry at every level which conglomerates with enormous
advertising power have a huge advantage over small businesses. That keeps profit margins low.

Additionally, very little customer loyalty exists in the restaurant industry. One bad experience
for a customer means they may not return, especially if it is was their first visit. Customer
retainability is a difficult task. It has never been easier for a customer not to try different
restaurants.

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 COMPANY DESCRIPTION
BRIEF INTRODUCTION ABOUT THE COMPANY HISTORY
As far as we know, the concept is not being practiced anywhere in India as of now. We are all
students and we come from different states of India. Whenever we used to go outside for having
lunch or dinner together, everyone would want the food from their particular state which was
not available at the same place. So, this factor also contributed to coming up with this idea. The
idea is fresh and we came up with it on our own. Some restaurants do offer cuisines from
multiple states or even countries but none of them serve the cuisines from all the states in India.
Our restaurant is first of its kind and we are yet to decide whether we will be going for a chain
or this will be the only one.

FROM WHERE THE IDEA CAME AND HOW

This was not the first business idea that popped up in our minds. It was of automotive parts but
due to the lack of technical knowledge and expertise required for such a business, we had to
drop the idea. Then we started thinking from the grass-root level again and it was not a short
process but after some time, we came up with this idea. This time we kept in mind that the idea
should also be achievable by using our resources and knowledge and also should not be beyond
our reach monetarily. We wanted to do something to serve society and at the same time
something to which we could happily devote all our time and energy. We conducted empirical
research (which was of limited radius because of the COVID-19 pandemic) to find out if such
an idea would be successful and after conducting the research only, we started with the plan.

MISSION STATEMENT
India as a country is a rich tradition of food. Each region in the country is unique in its own
way and together we make the country what it is. As you move from one region to the other in
India, the dishes and spices change rapidly. Each state has its own traditional food or thali
which is made with the same recipes throughout these centuries This unique way of preparing
shows defines their culture and genuineness of their food.

While moving across the country we have realized that people do miss their food and that
special way in which it is prepared. People in big cities like Banglore, they come from the
different state for their career, study, and job. And living in a different city, the thing they have
a problem is to find good food which is according to their taste. Introducing these thalis is to
bring their authentic food to the city.

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With such diversity in the county, we find people around us from states and cultures who might
be our friends, family, or colleagues. With the different cultures and food in the county, there
is diversity in the food choices among the people who belong from different parts of the
country. While dining out together it creates a problem to choose from a specific type of food.
It becomes a tardy task to binge on the favorite meal. The attempt is to bring this diversity to
one table where everyone can choose the type of good they want to eat.

With these multicultural options in the cuisine, the Food Quotient is diversified to a broader
extent and sometimes people want to try different cuisine as many of them end up getting bored
at one point in time. They want to explore the traditional food of a particular state but they
don’t know what to order, what is the local food of that state. And while looking at the extensive
menus of restaurant serving traditional Indian dishes of the specific culture is confusing and
exhaustive to select from it. So trying a thali is the solution as it is a combination of various
delicious dishes specific to a certain area. Thalis from different states can savor the favorite
ones right away as it brings out the authentic food of a state and can help people to learn and
try different cuisines of different states.

WHAT WE ASPIRE TO ACHIEVE

We are all aware of the fact that India is a country that is very rich in tradition. Not only the
clothes, customs, beliefs but also the food changes as we move from one part of the country to
another. Because of the problems (not being able to eat food from our respective states all at
one single place together) we faced as students from different parts of the country, we wanted
to make sure that others don’t have to face the same problem. We want to provide not only the
best food but also the best services in the sector by creating a home-like ambiance for everyone
who visits us. As this is a first of its kind, we want to set an example for others as to how to
serve society the best. Our target customers are not only Indians but also the foreigners who
would visit us expecting to have food from any Indian region.

DETAILS ABOUT THE PRODUCT AND SERVICES

As stated earlier, our restaurant will be serving cuisines from all over India. The idea is to
provide people an opportunity to have food from any part of India all at the same place. We
are going to serve food from all 29 states of the country. The menu at “Thalistan” will comprise
29 thalis, one from each state of the country. Unlike other such restaurants that serve only the
famous thalis like Punjabi or Rajasthani, we would be providing food recipes from all over
India so that anyone from any part of the country can feel at home eating at our restaurant. Not

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only the food, but we will also be creating an ambiance that makes everyone feel like they are
at their homes. The idea is also to spread cultural awareness among people.

HOW OUR PRODUCT AND SERVICES ARE UNIQUE

Our product is not unique, but the idea is. The idea of bringing together cuisines from all over
India to one place is unique. Never before has there been a restaurant that served cuisines from
all the 12 states of the country. We are the first ones to do so. Our menu comprises 12 thalis,
one from each state of the country. For the first time, people would be able to eat anything they
want from any part of India all in one place.

Not only our food but also our style of serving it is different from how others are doing it.
Everything from the dress code of the staff to the ambiance will glorify the rich culture and
tradition of our country. This was done keeping in mind the need to promote Indian values
among the people. Our target city is Bangalore, which has a lot of foreigners visiting every
year. We want to show them what Indian cultures really are and give them a taste of any Indian
food they like in its true form.

HOW ARE WE PLANNING ON MAKING AN IMAGE IN THE MARKET AND

OUR SELLING STRATEGY
As stated earlier a couple of times, our restaurant is a first of its kind. We will be focusing on
the quality of food and the services we provide here. None of our thalis from any of the states
would suffer in quality and the taste would be exactly the same as one gets in that particular
part of the country. We would also be providing the customers with some offers regularly like
giving some percent off on the price or adding some extra food items at the same price with
the thali. We would be advertising about our opening in the newspaper and also digitally. Not
only about the opening, but also the customers will be informed about the offers that we will
provide from time to time using advertising.

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 MARKET ANALYSIS AND RESEARCH
PRIMARY RESEARCH
The objectives of the survey of the people who either live or work in Bangalore, Karnataka
towards a Thali Based Restaurant to:

 Identify the potential size of the market

 Identify the target group (Primary Customers) for providing service profitably.
 Identify their food choices.
 Identify the likeability towards ‘Thali-based meal’, which is the primary product.
 To know the specific needs and expectations from our service so that their feedback
would be incorporated to design our service.
 To know the estimated price range, they will be willing to pay for each meal.
 To know the future of our service for upcoming years.
 To know our potential competitors

SAMPLING PLAN
Here the researcher has used Purposive sampling where select a sample of potential customers
that is most useful to the purposes of the research to gain detailed qualitative knowledge about
a specific phenomenon rather than make statistical inferences.

 Sampling unit: People of Bangalore city.

 Sample size: 85 People who visit or live in Bangalore.
 Sampling procedure: Purposive sampling method.
RESEARCH INSTRUMENT
The tool for primary data collection is a questionnaire1 which is distributed to 85 People
belonging from different parts of the country and are working or living in Bangalore city.

1
https://docs.google.com/forms/d/e/1FAIpQLSe8Ta_8HVPOwLO8xHPyBK6ltUzPxI3GZZqcP47F50nIe402tA/
viewform?usp=sf_link

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MARKET OVERVIEW

Study Period: 2016 - 2026

Base Year: 2020

CAGR: 10.3 %

Estimates show that the Indian market sector for food-service/restaurants is going to rise and
reach USD 95.75 billion by 2025. Despite the COVID-19 crisis the market for food has
registered a Compound Annual Growth Rate (CAGR) of 10.3%2.

 The market sector for food-service/restaurants has witnessed exponential growth

during the past decade. Even amidst the pandemic, restaurants have been delivering
food, directly or through third-party delivery applications like Zomato and Swiggy.

 A huge percentage of working/job going personnel and the student population has
acquired an affinity towards going out to eat or order food online. This is mainly
because they either don’t have the time to cook for themselves or because they want
a change of taste. The ease of renting space has encouraged many people to open
their own restaurants or even open a franchise store for an international chain of
restaurants.

2
<https://www.mordorintelligence.com/industry-reports/india-foodservice-market> [Accessed
3 May 2021].

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  This growing market sector has attracted many local and international investors who
are trying to diversify their investments and even people who hold a passion for food
in general.

MARKET ANALYSIS BASED ON OUR SURVEY

 Based on the survey we conducted, it is evident that 51.2% (more than half the
population) prefer eating out at a restaurant at least once a week.
 More 21.4% people prefer eating at a restaurant twice a week and 11.9% people prefer
eating restaurant food Three days a week.
 This shows the lucrativeness and opportunity for growth in the food-service market
sector.

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  Based on the survey we conducted, it is evident that 41.2% of people would always
prefer Thali-based meals over individual dishes (à la carte).
 Also, 42.4% of people on some occasions would prefer a Thali-based meal.
 This shows the preferences of our potential customers. Since the majority of them
would prefer a Thali-based meal always or on some occasions, our customer base would
be wider and would help us grow our business.

 The above graph represents the diverse and cosmopolitan population of customers who
are our potential customers.
 The reason for collecting this data was to understand the diversity of people who live
or visit Bangalore.
 It is important for us to know the origin state of our customers so that we can curate a
perfect culinary experience for them, where they can even savor the original taste of
their home state.

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  This question has helped us to understand the occupation demographics, which tells us
the economic level and even estimates the age group under which our customers fall.
 This helps us in creating meals specific to individuals and their preferences. For
example: While a business or corporate person may want a full thali, a student, who
might be on a short budget would want a more economic (less costly) variant.
 Also, this helps us analyze the spending capacity of individuals who visit our restaurant,
and it would help us make meals according to specific demands.

TARGETED MARKET SEGMENTATION

The main categorizations for identifying the primary target customers are based on:

1. Geographical location: The target market is limited to people who live in or are visiting
Bangalore. The first establishment is planned to be opened in Koramangala, Bangalore.
2. Initial Demographic: Based on the data collected by the survey, the primary target
customers will be students and corporate job personals.
3. Psychographic segmentation: These primary target customers are the ones who prefer
eating a Thali-based meal over individual dishes (à la carte).

BUYER BEHAVIOUR

 This data helped us to identify that the preference of our potential customers is majorly
Vegetarian (84.7%) and this would help us create a menu accordingly.
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  This data also helps us in estimating the quantity of raw material to be procured
according to the dish type.

 This data helps us to identify the peak hours when the customer is likely to visit. Which
allow us to manage our staff and raw material accordingly. Here it is evident that the
majority, i.e. 81.2% people prefer having Dinner at a restaurant.
 This also helps us in identifying the hours when the rush is less and accordingly we can
cut down some maintenance cost. For example: When in the morning or afternoon the
crowd is less, one can switch off certain electricals which are not required.

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  In order to understand the preference of our potential customers, we asked them such a
detailed question.
 This helped in identifying the most popular State thali (Rajasthani Thali) and based on
this data we can manage our inventory and regulate our supply.
 This helped in narrowing down our primary target customers, out of the 85 people to
whom we sent the questionnaire.
 It also helped us determine the secondary and tertiary customers, who have the potential
to become primary customers.

INFORMATION ABOUT COMPETITION

 The above graph shows that 60.7% of people have already visited a Thali-based
restaurant, which signifies that the competition in this market is tough and there are
already many such establishments that have adopted this concept of Thali-based meals.
 Although we have such competition, we plan on focusing more on expanding our
customer base along with keeping ourselves updated with strategies being adopted by
our competitors.
 We definitely would want our establishment to provide something unique and novel
and thereby we plan on studying our competitors and their strategies.
 This would also help us in creating a more personalized experience of dining, which
would be more than just good food and ambiance.

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ESTIMATED FUTURE SCOPE AND PROFIT
 Based on the analysis of our survey, it is very much likely that people would like to
visit a Thali-based restaurant.
 If everything goes as planned, based on our market prices and profit margins, we would
be able to cover the initial investments in 2 years.
 Further, based on customer feedback and liking, we could also plan on expanding our
reach by opening another outlet of our restaurant.
 We will predominantly follow the exclusive distribution technique as we would want
all our future outlets to maintain the same level of standards and taste. To ensure this,
we will also appoint quality control managers in each branch that we would open.
 Our goal is to create the same experience and taste for as many customers as we can
and hence, we definitely would want to expand our business once it attains a certain
level of brand recall and goodwill.

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 ECONOMIES OF BUISNESS
It is vital that you calculate how much new business will be able to bring in every month? What
is the industry average and how to calculate the average restaurant revenue for your business?

REVENUE DRIVES
Revenue is the money your restaurant generates. It is the amount of revenue left over after
paying all of the operating expenses.

Revenue is the money that comes into your business through any of the revenue streams:

MAIN REVENUE
A new location of a multi-location restaurant may have somewhat higher revenue than a brand-
new one because the brand is already known and trusted in a community. The amount of
revenue your new restaurant will generate is contingent on dozens of factors, including your
location, your menu prices, your concept, and the number of tables.

To estimate how much a new restaurant will generate revenue is to calculate the restaurant’s
monthly revenue, and then calculate what 75% capacity could look like a business because
that’s what you can expect within the first year of business. Then we need to focus on the
capacity of the restaurant and the average order amount by the customer.

Step 1: Guests accommodated in the restaurant multiplied the average number of many tables
turns throughout the day.

Step 2: Calculate the average order amount by adding up all the estimated lunch bills and dinner
bills and divide by how many bills there were in a day.

ADDITIONAL REVENUE GENERATED FROM THE MAIN REVENUE

If you do catering or merchandise sales, be sure to take them into account as well. Find out
how much you sell every month in merchandise or catering and add this to your total monthly
revenue.

Average bill size of daily basis * number of days in the year] + [yearly
catering or merchandise revenue] = total yearly revenue

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 Total revenue x 0.75 = Estimated total yearly revenue for the
restaurant

Taking estimated average value 3 years of i.e. 2021 – 2023 (in lacs)

Average of Total Revenue of 3 years = (1224.48+2056.05+2949.67) ÷ 3

= 6230.2 ÷ 3

= Rs.2076.73 (in lacs)

Total Revenue = 2076.73 + 0^

= Rs. 2076.73 (in lacs)

^ - Initially the restaurant will be a dine in only. So catering or merchandise revenue = 0

Estimated total yearly revenue for the restaurant = 2076.73 * 0.75

= Rs. 1557.55 (in lacs)

PROFIT MARGIN
Restaurant profit is a function of revenue and cost.

Restaurant Profit = Total Revenue – Total Cost

Taking estimated average value 3 years of i.e. 2021 – 2023 (in lacs)

Average of Total Cost of 3 years = (876.06 + 1395.20 + 2001.64) ÷ 3

= 4272.9÷ 3

= Rs. 1424.3 (in lacs)

Restaurant Profit = 2076.73 - 1424.3

= Rs. 652.43(in lacs)

There are two types of profit margins:

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GROSS PROFIT
Gross profit is the difference in value between the selling price of a dish and the cost of the
ingredients and materials used to make a dish (otherwise known as the cost of goods sold, or
COGS).

For financially viable restaurants, estimates gross profit hovers around 70%

To calculate your restaurant’s gross profit, subtract the total cost of goods sold (COGS) for a
specific time period i.e. of a month from total revenue (total food, beverage, and merchandise
sales)

Gross Profit = Revenue – COGS

Taking estimated average value 3 years of i.e. 2021 – 2023 (in lacs)

Gross Profit = {(348.42 + 49.08) + (660.85 + 76.18) + (948.03 + 67.93)} – {(263.52 + 8.93)

= (302.71 + 13.63) + (496.37 + 28.13)} ÷ 3

= {397.50 + 737.03 + 1015.96} - {272.45 + 316.34 + 524.5} ÷ 3

= {2150.49 – 1113.29}÷ 3

= 1037.2 ÷ 3

= Rs. 345.73 (in lacs)

NET PROFIT
Net profit is the amount left over from the gross profit after subtracting operating expenses like
payroll, rent, utility bills, ingredients, and equipment leasing costs.

Net Profit = Gross Profit – Expenses

Taking estimated average value 3 years of i.e. 2021 – 2023 (in lacs)

Net Profit = {1037.2 – (6.26 + 21.04 + 15.92)} ÷ 3

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 ={1037.2 – 43.22}÷ 3

= 993.98 ÷ 3

= Rs.331.33 (in lacs)

NET PROFIT PERCENTAGE

Net Profit Percentage = (Net Profit÷ Revenue) * 100

Net Profit Percentage = {331.33 ÷ (2150.49 ÷ 3) }* 100

= {331.33 ÷ 716.67}* 100
= 46.23 %

OPERATING LEVERAGE
Restaurants have three main buckets for operating costs. They are:

 Labor costs: These include paying your servers, cooks, dishwashers, cashiers,
greeters, and managers.
 Food costs: This includes how much you need to pay for your food and beverage
supplies and can fluctuate with the cost of your menu items. It can be calculated as
a restaurant’s cost of goods sold.
 Rent: Your rent and utilities will vary by your location, but it’s important to factor in
what percent of your total sales you’re paying in rent.

BREAK-EVEN ANALYSIS
The break-even analysis is an important figure to run our restaurant profitably. At this point,
the restaurant will not lose any money. It represents the number of sales the restaurant needs to
make over a period of time to remain profitable. It helps in understanding how many people in
the restaurant need to serve for the business to make money, based on a determined average
price point per guest. It will also help in setting the right prices for your products and aim at
reaching optimal sales volume. This analysis also helps in enabling to more proactively manage
the restaurant’s financial health and day-to-day operations. This is essential for managing
money, keeping revenue up, and ensuring costs stay down.

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BREAK-EVEN POINT

The break-even point is the point at which the revenue of the restaurant equals the costs. It
represents the number of menu items the restaurant business needs to sell so that the amount
of revenue generated to cover the restaurant’s fixed and total variable costs over a specific time
period.

The Break-even point focuses on fixed and variable costs.

FIXED COSTS
Fixed costs include expenses that must be paid regardless of production or sales volume. These
are:

 Heating the ovens and powering the walk-ins

 Occupancy expenses like rent, insurance, and property tax
 Communication tools like a phone system and internet
 Marketing and Printing Cost
 License and permits
 Miscellaneous expenses
VARIABLE COSTS
Variable costs vary in proportion to production. It also takes into consideration anything that
gets more expensive as a result of more business. Variable costs may include:
 Food and drink costs
 Cleaning supplies
 Disposables and garbage bags
 Credit card processing fees
 Labor Cost

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 Break-Even Point = Total Fixed Costs ÷ (Total Sales - Total Variable Costs ÷ Total Sales)

To calculate the percentage of each sale that is available to cover fixed costs and profits using
the formula

Break-Even Point = Total Fixed Costs ÷ Contribution Margin Ratio

We can get to this using a series of calculations:

 Contribution Margin = Total Sales - Total Variable Costs
 Contribution Margin Ratio = Contribution Margin ÷ Total Sales
 Contribution Margin Ratio = (Total Sales - Total Variable Costs ÷ Total Sales)
 Break-Even Point = Total Fixed Costs ÷ (Total Sales - Total Variable Costs ÷ Total
Sales)

While calculating the break-even point, the units are the number of guests while the unit price
is the average amount for the guest in rupees. Since it is difficult to obtain the variable cost per
guest, we will take an estimate of food and beverage margins.

CALCULATING BREAK-EVEN POINT

Step 1: Calculate the total fixed costs. Add up all the costs that do not fluctuate on a monthly
basis to get the total fixed costs.
Step 2: Add up the costs of menu items, and then divide the total by the number of items. The
figure that you get is the average revenue per item.

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Step 3: Get the total cost of ingredients for every menu item. Then divide this figure with the
total number of menu items to get the average variable cost.
Step 4: Calculate the difference between the average revenue and the average cost to get the
contribution margin.
Step 5: Diving your total costs by the contribution margin to get your break-even point. The
figure you get at this point represents the number of items in your menu that you need to sell
monthly to break even.

Taking estimated average value 3 years of i.e. 2021 – 2023 (in lacs)

Average of Total Fixed Cost = (350.28 + 423.56 + 576.84) ÷ 3

= 1350.68 ÷ 3

= Rs.450.23 (in lacs)

Average of Total Variable Cost

={(427.67 + 98.11) + (734.71 + 236.93) + (933.43 +491.38)} ÷ 3

= (525.78 + 971.64 + 1424.81) ÷ 3

= 2922.23 ÷ 3

= Rs. 974.08 (in lacs)

Average of Total Sales = ( 1176.92 + 1986.73 + 2856.12) ÷ 3

= 6019.77÷ 3

= Rs.2006.59 (in lacs)

Break Even Point = 450.23 ÷ {(2006.59 – 974.08) ÷ 2006.59}

= 450.23 ÷ {1032.51 ÷ 2006.59}

= 450.23 ÷ 0.51

=882.80

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 1600

1400

1200

1000

800 Fixed Cost

Variable Cost
600

400

200

0
2021 2022 2023

The importance of calculating the break-even point is to determine the number of products your
restaurant needs to sell to make a profit. Break-even analysis is conducted to sell more products
and to determine the profits business is making under the current sale volumes.

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 MARKETING PLAN
As for our business, we are gonna open a restaurant. The uniqueness this restaurant poses is
that we have just thalis on our menu. They are gonna be from different states and hence our
menu will provide the statewide food. Thalisthan is the food corner that covers the east, west,
north, and south India’s thali food.

POINT OF DISTINCTION
The service we are providing is different from the other restaurants in Bangalore. In India, each
and every state provide their own regional food. But none of these restaurants provide regional
food of each and every state at one place, where the customer can come and while sitting in the
Bangalore he can taste the food of any other state of India. That is the uniqueness that we are
bringing via opening Thalisthan. Adding a point to these is generally it is said that restaurant
food is junk food so people may avoid going to a restaurant but thali fills with protein and other
nutrients necessary for good health and improved immunity. An Indian thali also contains all
the shad rasas or six tastes, that make the most nourishing. The combination of flavors in a
particular order makes the digestive process easier. Hence, via bringing this we would be able
to capture the eyes of customers and bringing something different to the market of food.

MARKETING STRATEGY
We are trying the make our food service-oriented. This means we are targeting to provide a
good quality of food and services. Our focus will be on creating value for the customer. We
will persuade customers to try the new food from different states of India and avail our service
by advertisement, sales promotion, etc. Our base focus will be to meet the need of the customer,
to offer better service and food and will try to ensure to establish customer relationship
management and ensure that customer comes back. We will try to maintain long-term
relationships with customers. We already took societal oriented marketing concept via
introducing the concept of Thalisthan because customers need is to try different variety of food.

MARKET COMPETITION
The competition in this market is tough, though we are planning to focus more on expanding
our customer base along with we will be keep updated about the strategies being adopted by
the competitors. Our restaurant has the locational advantage as well as we are proving the
service which is required by all types of customer base. The challenge will be how to attract
people to try something new and spreading awareness about it but though we have an idea
regarding it as well.

30 | P a g e
WHERE DO WE WANT TO GO?
We are planning for the long-term. After 2-3 years, when we will earn sufficient profit we will
try to establish our branch in the major cities of India. Of course, it would not be so easy to do
so in the 2-3 year but we will expand our business from one by one city. Once we confirm that
in one city we have sufficient market place and profit then only we will move further with the
city vice strategy in that particular city. Gradually we will move further and make out the name
in the whole of India’s market.

Price:

Based on the market analysis part and via doing the value-based study we came to the
conclusion that the prize of vegetarian thali would be 550 and the prize of Non- vegetarian thali
would be 560 rupees. There is also a prize quality attribution effect. If we put out prizes low,
then the customer might feel that the product with a higher rate has premium quality. Hence
we don’t want to make the mistake of charging too little of price to attract customers. The price
we have decided is not too high and it can be considered as affordable by the people of
Bangalore city.

CUSTOMER
Our target customers would be mostly the people who come from the other cities of India and
also from foreign for the job purpose or traveling or for any other purpose. In a city like
Bangalore after some point in time, people get tired of eating the regional food of that state, at
some point in time they will always miss their own regional food. Our customer segmenting is
totally based on a geographical idea, the lifestyle of customers. The service we are proving is
a benefit sought which means this is the food that most of the customers are looking for. Not
only the outsiders from Bangalore but also the localities of Bangalore city are also having the
demand the tasting the food of different states of India without incurring the traveling cost.

ADVERTISEMENT
1. Grand Opening: While we will open our restaurant we will have a blast opening and
will give an invitation to all the people possible. So this will give us the word of mouth
advertisement. We consider that customers are the best advertisement, the people who
will come in the opening they will give the reference of our restaurant to other 10
people, and this will help in the rapid growth of the restaurant. Through this, it will
create the curiosity about our food to other people and in the want of knowing more
they will come to our restaurant.

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 2. We will also make an advertisement by a local person of every state. Like the person
who is very famous in that particular state, he will advertise about the food of our
restaurant, it will get us more customers because the people in our country actually do
follow their leader or celebrity.
For Example, We will take Rajesh Krishnan for advertising in Karnataka State.
Through which people get more influenced and by curiosity, they will come to our
restaurant.
3. Memes marketing: We can make our restaurant as troll content. In Today’s time, if 4-5
people make a meme on one thing, you will find automatically more than 50 memes on
the same things. This works as a free advertisement for our restaurant and what we need
to do is just to put up 4-5 memes on the internet and it will bring the customers to us
free of cost.
4. Social Influencers: In the life of social media youngsters follow the lifestyle of
influencers and listen to them. So we will ask them to come to our restaurant and eat
the food at free of cost and make a video about it and upload it on their website. This is
how we can get more advertisement in the young customers at a very low price. This
can work as a social advertisement.
For Example, A YouTube video by Gaurav Wasan on baba ka Dhaba gave so much
earning to this person that he was able to open his restaurant from a roadside food stall.
5. Ambiance: Our restaurant ambiance will work as a tool for advertisement. Our entire
restaurant will give the vibe of Indian ness and the way we will serve out food will also
be in the unique way of every state. This will attract the customer base. Also now a day
where people post on social media about going to cafes and restaurants. Out ambiance
and food service will attract others via this social media post. It will create curiosity in
the mind of other followers and interest can be created in others. The Ambiance which
will give an Entire Indian vibe will also maintain the customer relationship with the
restaurant. We will also give totally different uniforms for waiters. Which will include
the special cloth items of certain states. Like wearing paghdi, mojdi, kurta, etc. Further,
we will provide the food in the uniqueness of the state. Every state has its own different
type of thali or plate in which they eat. This will give them the entire feel of the
particular state.
6. Bangalore is a city where not only Indians come but also you can find foreigners in that
city. It won’t be the new thing in that city. They many time works here or also come
for traveling and it is not a new thing that actually foreigners like to taste the Indian
32 | P a g e
 food. This is the restaurant where they can get the Indian food of each and every state.
This will work as the best place for them to have a taste of India.
7. Pack and parcel service: We will also provide pack and parcel service, where sometimes
it happens that person is not able to finish the thali and they want to pack and bring to
home want to eat at later point of time or want to get it for their friend and family. So
this service would also help us to keep the customer base.
8. Distributing food to poor people: We decide to go on this technique when at the end of
the day when we are about to close the restaurant and whatever food is left in the
restaurant we will distribute it among the poor people. So that it will work as a blessing
for us. Also, we don’t want to provide leftover food to our customers. We do care about
the health of our customers. Also maybe today or at a future point of time this activity
of giving food to poor people may become the media coverage or part of YouTube
video about doing a really good job and this can also bring us a lot of new customers.
9. To maintain the customer base and attracting new customers we have decided to give a
voucher card on the bill. That when a person leaves after eating we will give him a
voucher card of 10-15% for the next time, he can pass on this card to some other person.
When this other person comes with the card we will take this card back and with the
bill, we will provide him another discount card. So he may give it to some other person
and this can also work as a mode of advertisement. This is how our sales cycle can run.

Most of all our service techniques and our ambiance, the uniform of waiters and plates in which
we will serve and our food quality will make us totally different from the other competitors.

33 | P a g e
 OPERATIONAL PLAN
QUALITY CONTROL
When it comes to food, we intend to focus the most on quality. Using quality materials, then
preparing food in the most hygienic way possible, and maintaining the clean environment in
the hall as well as the kitchen. The restaurant will use the best quality materials and therefore
try to deliver its customers the best food possible. Thalisthan will focus on continuous
improvement of its service to its valuable customers. For this thalisthan’s quality service to its
customers can be defined in terms of:

RELIABILITY:
 Our customers would be able to rely on us regarding all their ethnic and traditional
food-related needs. The top priority of thalisthan is to provide them with the authentic
taste of the state cuisine they wish to eat.
 Code of conduct will be developed by Thalisthan and strictly implemented. This will
prevent any unethical activities at the workplace and assures customers, trustworthy
waiters, and management staff at their service.
 Prepare a checklist containing the type and quality of work done that will be filled by
the client at the end of their visit. This will help to monitor the work performance of the
restaurant.
 Only trained staff will be assigned for service to clients. Training will be given on both
vocational (if needed) and moral aspects.

ACCESSIBLE
Thalisthan will be located in an area where the public and staff can easily reach the restaurant.
For this, the Thalisthan has chosen the Koramangala area of Bangalore city. This will help the
restaurant in providing quality service in the following ways:

 This site location provides the best proximity to customers using public transportation.
 Customers will not have difficulty in finding the office.
 The office building is situated near the main road with good infrastructure.
 The area is rich in students, corporates as well as professionals. Further, it is the center
of the city and highly crowded with tech joints.

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COURTESY
The values of the Thalisthan will guide its staff to serve the customers with hard work, sincerity,
loyalty, and devotion.

SAFETY AND SECURITY

This is one of the most vital areas where the restaurant will focus. Thalisthan will be guided by
its efforts to cover all the aspects of the safety of its customers. I believe the entire business
depends on how well and safely the company will provide services with staff with good morals,
behavior and with no criminal records.

SITE SELECTION
Being a service provider the location strategy will focus on revenue maximization. The area
with higher gathering and crowd brings in more customers. So thalisthan has given careful
consideration while selecting the site location. Factors considered while selecting the site

 Office site should be located in the area easily accessible by clients and staffs (maids)
i.e. transportation facilities
 The site should provide proximity to the target business area
 The office site should be located with room for future expansion
 The office should be located on the ground floor
 The office should cover space not less than 1500 square feet and reasonable rental
charges.

Considering all the above factors, Thalisthan has selected Koramangla phase 4, Bangalore.
This site location provides the best proximity to customers using public transportation.
Customers will not have difficulty in finding the restaurant. Most importantly it provides
proximity to the target business area. The office building is situated near the main road and has
room for expansion. The office space meets the requirement of 1500 square feet for the office
setup.

RESTAURANT INTERIORS AND LAYOUT

As a common business saying goes “Jo dikhta h, vo bikta h”, Thalisthan believes that looks
matter the most when it comes to selling your product. Thalisthan prioritizes the ambiance and
esthetics that it can provide to its customers. Therefore we are hiring Megal interior designers
to design our entire interiors. Apart, we plan we plan to keep our interiors as exotic as possible,
which gives our customers to click plenty of pictures and hence shine their social media

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profiles. For the same purpose, we will have several selfie corners across the space, to interest
the customers.

LAYOUT
We want to make the most efficient use of our space, therefore our architectural plan is being
made by Jain architects and designers. Our restaurant will consist of the following things:

 Vegetarian Kitchen
 Non-vegetarian Kitchen
 Pantry
 Cold storage unit
 Dining area
 Rooftop dining area
 Lounge with 5 rooms
 Ground floor washrooms
 1st-floor washroom
 Management office
 Reception area
 Staff-Sitting room
 Underground parking Slot

The sample layout is attached as appendix 1

MATERIAL ACCUMULATION AND PREPARATION

In the business of a restaurant, the most important thing is the materials that the one is gonna
use and how we collect them.

RAW MATERIALS
In order to maintain authenticity, we are going to collect our very own raw materials and
therefore we are gonna refrain ourselves from already prepped material. Further, we are going
to buy the rations monthly, that would prevent them from degrading and therefore prevent our
food from degrading and therefore maintain its quality to the highest level. The following table
specifies our raw materials and their suppliers.

MATERIAL SOURCE OF COLLECTION

SPICES

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 Red chili powder ABC Spices and herbs Ltd. Co.
Turmeric powder ABC Spices and herbs Ltd. Co.
Corriander powder ABC Spices and herbs Ltd. Co.
Cummin seeds ABC Spices and herbs Ltd. Co.
Mustard seeds ABC Spices and herbs Ltd. Co.
Cloves ABC Spices and herbs Ltd. Co.
White and Black pepper ABC Spices and herbs Ltd. Co.
Bay leaves ABC Spices and herbs Ltd. Co.
Fenugreek seeds ABC Spices and herbs Ltd. Co.
Cardamon ABC Spices and herbs Ltd. Co.
Cinnamon ABC Spices and herbs Ltd. Co.
Corriander Seeds ABC Spices and herbs Ltd. Co.
Kokum ABC Spices and herbs Ltd. Co.
Tamarind power ABC Spices and herbs Ltd. Co.
Respective Spices for special ABC Spices and herbs Ltd. Co.
dishes
FRUITS AND VEGETALBLES XYZ Fruits and Vegetable Ltd.
CO.
SALT
Normal salt ABC Spices and herbs Ltd. Co.
Rock Salt ABC Spices and herbs Ltd. Co.
Indian Black Salt ABC Spices and herbs Ltd. Co.
FLOUR
Red and White wheat flour MNP flour mills Ltd. Co.
Gram flour MNP flour mills Ltd. Co.
All-purpose Flour MNP flour mills Ltd. Co.
Corn flour MNP flour mills Ltd. Co.
Makki ka atta MNP flour mills Ltd. Co.
Bajre ka atta MNP flour mills Ltd. Co.
Jawar ka atta MNP flour mills Ltd. Co.
Soybean Flour MNP flour mills Ltd. Co.
Ragi flour MNP flour mills Ltd. Co.

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 Rice flour MNP flour mills Ltd. Co.
SWEETENERS
Sugar EFG Sugar Mills Ltd. Co.
Brown Sugar EFG Sugar Mills Ltd. Co.
Jaggery EFG Sugar Mills Ltd. Co.
Sweeteners EFG Sugar Mills Ltd. Co.
CEREAL AND PULSES
Pulses TUV Grossers
Beans TUV Grossers
Lentils TUV Grossers
MISCELANEOUS
Tea leaves TUV Grossers
Coffee TUV Grossers
Sauces TUV Grossers
Pastes TUV Grossers
Oil TUV Grossers
Ghee TUV Grossers
Milk and dairy products 123 Dairy
MEAT 456 Poultary farms
EGGS 456 Poultary farms
Utensils Prenstige Co. Ltd.
Equipements Sunflame

RELATION WITH SUPPLIERS

We prioritize creating a goodwill and name in the field of the restaurant business. Therefore
we prioritize maintaining the relation with our suppliers, therefore we have kept a monthly
payment system along with a prior security deposit. Further, we will have a non-disclosure
agreement and also a low price policy signed with them. This enables us to have the best
products at a lower price.

PREPARATION AND MENU

The last and the most noticed thing about a restaurant is its food. We plan on giving our
customers the best food on the best plates, therefore we have hired the best chefs with proper

38 | P a g e
knowledge. Further thalisthan has created its menu with proper research and therefore we have
tried to bring out the best dishes possible in our thalis. A thali is a unique combo, therefore it
has gotta contain everything from street foods to traditional homemade food. Thalisthan wants
to give its consumers a wholesome experience that they will remember. The same menu is
attached as Appendix 2.

STAFF AND DAY TO DAY OPERATIONS

STAFF DETAILS
Our staff will go through various levels of the check, where we will be checking their criminal
and credit records, in order to ensure the safety of the restaurant and the customers. Then there
will be a thorough skill check done to ensure that the people being hired are capable of efficient
working. At last, if the restaurant feels that we need, the staff will go through vocational
training to enhance their skills. The following table shows the kind of employees that we need
to hire, their work, and their salaries.

KIND NO. TO SALARY WORK

BE (in Rs.)
HIRED
Supervisor 1 20000/- Supervises the preparation and delivery of the
food to the customers.
Chef 5 15000/- Instructs the cook regarding preparation and
presentation of the food
Cook 5 10000/- Cooks the food
Dishwasher 2 9000/- Regularly washes dishes to ensure that the same
plates can be circulated
Captains 3 10000/- Manages the waiters
Waiter 7 9000/- Delivers the food
Cashier 1 12000/- Maintains the cash counter
Store 1 10000/- Maintains the raw materials in the pantry and
manager orders the necessary material
Housekeeping 2 Shifts 7000/- Cleaning the restaurant
Guard 1 10000/- Safety and welcoming customers at the gate

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MERCHANDISE
We are going to have our own merchandise, for which we are having a contract with the souled
store, where they are manufacturing the merchandise for our store as well and they are gonna
give us a section at their websites as well. The merchandise will include T-shirts, key chains,
Tumblers, Posters, and such material.

SITTING PLAN AND CAPACITY

Our total sitting capacity is 190 people which is divided into three sitting areas i.e. Dining area,
Lounge, and Roop top dining

AREA TABLES PER SITTING CAPACITY TOTAL

Dinning area 20 4 80
Lounge 5 10 50
Rooftop dining 15 4 60
TOTAL 190

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 MANAGEMENT TEAM
 An effective team of staff is the backbone of a restaurant and it is also one of the most
important criteria based on which customers visit any particular restaurant.
 Every restaurant is primarily divided into two areas of operation, i.e. Front of House
(FOH) and Back of House (BOH).
 The FOH basically is that area to which the customers have access to. For example The
dining hall, bar, or any other place they can visit.
 The BOH is however the Staff only/Restricted Area where the customers are not
allowed generally. For example The kitchen area, storage spaces, security room, etc.

FRONT OF HOUSE (FOH) STAFF

 Restaurant Manager: The manager will be the head of the FOH Management team and
overall Restaurant. They keep a track of the incoming orders, staff hiring, and
management, passing bills to the cashier, manages reservations, and other duties. Since
the role and number of managers depend mainly on the type of establishment and
capacity, instead of hiring outside personnel, one of the owners can take over the post
(provided they have some experience and qualities of team management). Moreover, if
the owner directly manages the whole restaurant, it reflects a sense of responsibility
and dedication towards providing the best experience. He may coordinate directly with
the captains, who will act as general managers.
 Captain: We will be hiring 3 Captains who will be the second in the chain of command
and will be directly looking over the stewards/servers. The Captain has the job of
ensuring that every order reaches the table on time and that the servers are working
properly.
The post of the captain can be really important in our establishment and they will act
more as assistant managers and will coordinate with the owners who will manage the
restaurant themselves.
 Stewards/Servers: The team of servers or the wait-staff will be of 7 people who will
show the guests their table, provide them with the menu and information about the
special meals and combo offers (if any). The servers are the ones who interact directly
with the customers and therefore they need to be handled carefully.
 The Cashier: We will hire a cashier who will sit at the reception of the restaurant and
collect all the cash, generate the bills and register all the transactions in the computer

41 | P a g e
 or cash book. The cashier will also monitor the online orders and pass them to the
kitchen staff directly.
 Store Manager: We will be hiring a Store Manager who will keep a log of all the
inventory/raw materials and will also order the same as they are required.
 Housekeeping: We will be hiring 4 housekeeping staff, who will be working in two
shifts and will be do all the cleaning a dusting.
 Security Guard: We will be hiring 1 security guard who will sit near the main gate and
will protect the establishment from any perpetrators or nuisance creators.
BACK OF HOUSE (BOH) STAFF
 Head Chef/Supervisor: To head the BOH department we will be hiring a Head Chef or
Supervisor. They manage the menu department and are the final inspectors of the food
which is finally served to the customers. He basically overlooks the kitchen staff and
trains the new recruits.
 Sous Chef: We will be hiring 5 Sous chefs who will technically be second in command
but will have an important role as they would handle and do most of the work. They
directly supervise the cooks who make the food and do the initial inspection once the
food is prepared.
 Line and Prep Cooks/ Helpers: Below in the hierarchy are the line and prep cooks who
gather the ingredients and prepare the actual meal. We will be hiring 5 Cooks/Helpers.
 Dishwasher: We will be hiring 2 Dishwashers who will work in shifts and clean all the
plates when brought back to the kitchen after guests have eaten their food.

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 OVERALL SCHEDULE
January- February: The first step of starting the entire business is to set the personal goal and
review yourself and decide what best can be chosen for the business. While generating the idea
we face so many difficulties regarding the difference of opinion but in the end via the
background of the group and their inner talent we came to the conclusion of opening a
restaurant called Thalisthan. We spend our 2 months of time in this entire process.

March – April: Then we passed out the idea from the 5 parameters: Customers, competition,
suppliers/ vendors, government support, broad environmental factor. Via Reviewing these in
detail and doing a little bit of investigation on these parameters we came to a conclusion that
our idea is not a liability but it is an opportunity in which we should go ahead. For this area as
we needed to study these parameters, it took us the time of 2 months.

May- July: Then as soon we found the investors. We decided to lease the place which we
already decided which will give us the locational advantage. At that time, we decided that what
will be the menu of our restaurant. The first step after getting founders is going to hire a lawyer
and got legal advice regarding our entire business and got all the requirements ready and get
done with the legal process so that we don’t have to face any legal issues at a later point in
time. As finding investors and completing the legal process is a lengthy task it took 3 months.

August- January: From this time onwards we did not waste any time and hired architecture and
interior designers and we told them the type of ambiance we want to create and get started with
the construction work as soon as possible. As the work started we went in search of supplier
and vendor.

February: When the restaurant was about to get ready we started hiring employees for the
restaurant, who has that specific skill set to work in the restaurant. At this point in time, we
also started doing marketing of our restaurant, so that it can capture the eyes of people.

March: At the grand opening of our restaurant we will be able to capture to eyes of our primary
market audience. Our restaurant will have 3 different departments like normal dining area,
Rooftop area, and Lounge.

After a month of earning, we decided to make estimated earnings of 365 days. Generally, it
happens like for a normal restaurant it takes a minimum of 365 days to pick the peak. Other
investment and profit can be recovered in the other 400-500 days. As per our calculation, we

43 | P a g e
will be able to get success in our idea and will be able to establish our branch in the other
ciTIES of India.

44 | P a g e
 FINANCIAL PROJECTION
PROFIT AND LOSS STATEMENT
PARTICULARS ESTIMATED AMOUNT IN SAID YEARS
2021 2022 2023
REVENUE (A)

Revenue from operations

Sale of Food and Beverages 1176.92 1986.73 2856.12
Other Operating Revenues – 48.56 69.32 93.55
(net of directly attributable
to such income)
TOTAL (A) 1224.48 2056.05 2949.67

EXPENSES (B)

a) Cost of Food and 427.67 734.71 933.42

Beverage consumed
b) Employee benefits 98.11 236.93 491.38
c) Occupancy cost and other 350.28 423.56 576.84
operating expenses
TOTAL (B) 376.06 395.20 2001.64

Earnings before exceptional 348.42 660.85 948.03

item finance cost, other
income, depreciation and
amortisation
(C) = (A – B)

Finance Costs (D) 149.08 76.18 67.93

Depreciation and 263.52 302.71 496.37

amortization expenses (E)

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 Other Income (F) 8.93 13.63 28.13

Profit Before Tax and 397.50 – 272.45 = 737.03 – 216.34 = 1015.96 – 497.50 =
Exceptional Items (G) 125.05 420.69 518.46
(G) = (C – D) – (E + F)

TAX EXPENSE (H)

(5%)
3.13 10.52 12.96
a) 2.5% CGST 3.13 10.52 12.96
b) 2.5% SGST 6.26 21.24 15.92
NET (H)

Net profit of the 118.79 399.65 502.54

year
(I)= (G) =
(H)

CASH FLOW STATEMENT

PARTICULARS 2021 2022 2023

(A) Cash Flow From Operating

Activities

Profit Before Tax 125.05 420.69 518.46

Adjustments for –

a) Depreciation and amortisation 263.52 302.71 496.37

expenses

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 b) Loss on sale / write off on 0.12 - 1.39
expenses
c) Finance cost 48.35 39.12 67.93
d) Interest Income (1.29) (8.63) (5.38)
e) Dd income - (0.79) (2.69)
f) Net (gain) / loss on sale of - (0.97) (1.33)
investment
g) Expense on employee - - 5.75
h) PDT and other receivables - 3.29 7.31

Operating Profit Before 435.75 755.42 1087.81

Working Capital Changes
435.75

Changes in Working Capital –

Adjustments for
increase/decrease in operating
assets

a) Inventories (49.63) 31.56 (93.63)

b) Trade receivables 7.38 8.62 (10.18)
c) Short term loans and 2.41 1.96 (22.72)
advances
d) Long term loans and (1.17) - (2.15)
advances
e) Other currents assets - - (15.13)

Adjustments for
increase/decrease in operating
liabilities

a) Trade Payables 93.52 (87.62) 59.18

47 | P a g e
 b) Current liabilities 31.13 27.61 10.53
c) Short term provisions (20.52) (15.31) (13.19)
d) Long term liabilities 11.23 9.52 (19.58)
e) Long term provisions 3.71 8.92 13.63
Cash generated from operations 513.81 740.68 994.57
Net Income Tax (paid) / refunds (6.26) (12.04) (15.92)

Cash Flow from Operations 507.55 728.64 978.65

(A)

(B) Cash Flow From Investing

Activities

Capital expenditure on fixed (255.91) (312.17) (438.56)

assets

Proceeds from the sale of fixed 2.71 - 3.89

assets
Loans and advances to - (19.81) (17.63)
subsidiaries
Interest received 0.89 1.23 3.57
Profit from sale of MF - 5.86 7.93
Dd. Received - 0.08 1.12

Cash Flow From Investing 255.24 403.83 538.97

Activities (B)

(C) Cash Flow From Investing

Activities

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 a) Proceeds from the issue of - 450.00 218.53
equity shares
b) Expenses from IPO - - (9.86)
c) Proceeds from long term 359.18 - 452.93
borrowings
d) Repayment from long term (93.63) (96.58) (115.38)
borrowing
e) Dd paid - - (39.97)
f) Tax paid on Dd. - - (14.07)
g) Finance Costs (35.06) (58.93) (63.48)

Net Cash Flow From 230.49 294.49 428.70

Financing Activities

Net increase / decrease in cash 21.82 30.32 10.98

on cash equivalents
A–(B+C)
Cash at the beginning of the 3.97 14.82 67.56
year
Cash at the end of the year 25.79 45.14 78.54

Cash and Cash equivalents as 17.83 25.68 39.48

per B/S
(+) Current Investment 7.96 19.46 39.06

Cash and Cash Equivalent as 25.79 45.14 78.54

per AS 3

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 APPENDIX
APPENDIX 1

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51 | P a g e
APPENDIX 2
Menu:

1. Punjab: Aloo Kulcha, Punjabi Chole, Paneer Tikka, Butter Chicken, Tandoori
Chicken, Aloo Paratha, Dal Makhani, Kadi Chaval, Rajma Chaval, Makke Di Roti,
Sarso Da Sagh and a glass of sweet lassi
2. Karnataka: rice, sambhar, kootu, jolada roti (sorghum flatbread), akki roti (rice
flatbread), padavalkayi masala (snakegourd curry), badane ennegai (stuffed brinjal),
ranjaka (chilli-garlic chutney), gattisoppu (lentils and greens), mirchi bhajji (chilli
fritters), kosambari (moong dal salad) and a bowl of homemade yoghurt.
3. Rajasthan: rotis, pooris, kachauris, and parathas made of wheat flour. rotis made of
Bajra, Makka, and Jowar. Daal baati churma, Gatte ki sabzi
4. Gujarat: thepla, maal purah, puri, bhakhri, and puran-pohli, hari and khakhra, dal-
dhokli, chevdoh, dhokla, undhiyu, khaman, bhusu, fafda, dhokli, papdi, and sev
mamra.
5. Uttar Pradesh: Royal Biryanis, Kebabs and a number of sweets, Kakori kebabs, petha,
Pedas, Paan, non-veg and Pasanda dishes, dal, veggie dishes, dahi.
6. Bihar: Litti Chokha, Bharbhara (green gram fritters), Dahi Chura (curd with rice
flakes), Sattu ka Paratha, Kaale Chane, Gurma (raw mango chutney)
and Rasiyaaw (rice dessert) to satisfy your sweet tooth.
7. Madhya Pradesh: Butte ki kees (corn and Milk is spiced up cooked and served
hot), Dal bafla (dal baati), Poha, shikanji, (a thick malaidhar milk with lots of nuts in it
and tastes almost like the badam milk of Tamil Nadu).
8. Maharashtra: Chicken and fish, variety of Pickles, rice, daal in a bowl, and chappati,
variety of bhajis, sabudaana vada, the awesome pav bhaji, sweets like aamras and
sheera.
9. Goa: seafood, rice, coconut, fish, and yes, kokum! Goan cuisine like Vindaloo, fish
curry rice that will blow your mind with its mix of spices and rice.
10. Andhra Pradesh: ghee on boiled rice along with lentil followed by Charu ( a kind of
rasam), avakaya (mango pickle), and various other delicacies usually ending with a
sumptuous dose of perugu (curd rice). For dessert, Rava Laddoo or Bandhar Laddoo.
11. West Bengal: Begun Bhaja, Patol Bhaja, Shukto (a bittersweet medley of vegetables),
Shaak and Alu Bhaaja to Cholaar Dal, Bhaat (rice), Maach Bhaja (fish fry), Maccher

52 | P a g e
 Kalia (fish curry) and Kosha Mangsho (mutton in thick gravy). To end the meal on a
sweet note, you are served a sinful rice pudding called Payesh and our favorite
'Rosogullas'.
12. North East combined: sure Vawksa (smoked pork), Samtawk, Bai (soup), Hmarcha
Rawt (Chilli chutney), Puklein, momos (steamed dumplings), Dalle chili and tomato
chutney, thukpa (noodle soup), gundruk (fermented leafy green vegetables), chhurpi ka
achaar (yak cheese pickle), ningro curry (fiddle-head curry gravy), sel roti (doughnut-
shaped bread), shimi ka achaar (string beans and sesame pickle).

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