CIA III- BUSINESS PLAN PRESENTATION

ENTREPRENEURSHIP DEVELOPMENT

CIA III- BUSINESS PLAN PRESENTATION

NAME- ISHANI HANDA

REGISTER NO.- 2023358

CLASS- 4 BBAH D

PROFESSOR- Dr. Malmurugan Devanathan

DATE OF SUBMISSION- 13TH APRIL 2022

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CIA III- BUSINESS PLAN PRESENTATION

EXECUTIVE SUMMARY

Luscious Breads is a small food start-up operating in Yamuna

Nagar. It has been founded by Ishani Handa.
We provide our customers exotic variety of subs, sandwiches, and
breads. We saw a huge gap between customers’ expectation for a
healthy bread and the breads that are being provided in the market.
We focus on making them aware about the marketing gimmicks played by top leading brands and then
market our products to them. We not only sell breads but subs and sandwiches too. There is a huge
market of sub in that area as there is no subway there.
Our USP is flavorsome eats, where we sell our food through flavors, basically we will be selling
flavors. Customer will have to choose flavor and then he can get that flavor in the cuisines (Sub,
Sandwich, Pasta, Fries or Burger) that we offer.
All our breads will be baked by the women of our society. Initially, we will train them to bake the
breads and provide them with all the equipment required. To maintain the standard, we will make our
own batter, which will be then given to voluntary women for baking. This will reduce our investing cost
and at the same time we will be empowering women by providing them a source of income.
Our MISSION is to provide customers one stop for healthy and delicious food and empower the women
of our society.
Our VISION is to become a BRAND known for its fresh and healthy food that also provides
employment to women across the country. We want to become an Indian brand competing SUBWAY.

INTRODUCTION TO FOOD INDUSTRY

The Indian food industry is the world’s sixth largest industry and contributes to over 32 % of the total
food market of the country. Currently the online food ordering business in India is at a budding stage.
This leaves room for a lot of opportunities as there is still a vast number of untouched markets where
such services are quite nascent. Most of the major online food ordering businesses exist in major
metropolis of the nation while there is still demand for such services in other semi urban cities of India.
This sheds light over the immense potential and a promising future for such type of businesses.

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INTRODUCTION TO CLOUD KITCHENS

Cloud kitchens are the commercial spaces who sell food through online food aggregators like Zomato,
Swiggy, or through their own app. This industry existed prior to the pandemic too and it held great
potential which is doubled post pandemic. It is projected that this industry will become 3 billion Dollar
Industry in India by 2024.
Cloud Kitchen Model is divided into 6 categories which are as follows-
 Independent Cloud Kitchen Model- Single Brand, Single Store and no storefront
 The Rebel foods (Faasos) business model – multi-brand (cuisine), single kitchen, multiple
outlets, no storefront.
 The Freshmenu business model – Single brand, single kitchen, multiple outlets, with a
storefront.
 The Swiggy Access business model – Aggregator owned, multi (restaurant) brand, rented co-
working kitchens, no storefront.
 The Zomato Infrastructure Services business model – Aggregator owned, multi- restaurant
brand, rented kitchens, with a storefront.

BRIEF DESCRIPTION

Luscious Breads is a cloud kitchen concept where we sell sandwiches, subs, and breads of various
types. The idea is to provide the market a healthier option to Breads sold in the market. We also aim at
empowering household women by providing them employment by outsourcing the baking process of
breads. It will be a cloud kitchen with a storefront where we will be selling sandwiches, subs, and
Pastas through Zomato whereas we will be supplying breads of various kinds too such as multigrain,
honey oats, French, Garlic, etc.
The purpose behind this venture is to empower women and provide a healthier option to the breads that
are sold in the market. Bread required for sandwiches and subs will be baked by the household women.
Most of the breads sold in the market aren’t really a healthy option as they claim because the
ingredients tell us a different story to which majority of the society is not aware. So, our aim is to make
the society aware and provide them a better option.
However, with the well-known demand for fast food we will also be selling sandwiches and sub which
will help us to yield great number of profits.
Luscious Breads will target customers of the age group of 12-60 as we will be serving food which is
usually liked by youngsters and breads that is used by almost everyone at home. We have planned to
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start this venture in areas where subway doesn’t exist as there is no competition for subway all over
India and it is a great opportunity to make the first mover advantage and build an Indian Brand that
competes with subway
Our main product is our extensive variety of breads and subs. Breads will be baked without using any
chemicals and preservatives. We endeavor to provide freshly baked breads and subs too.
It has a great potential in terms of revenue. If the product and the brand is marketed aggressively,
estimated annual Gross revenue would be 10,000,000.

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CIA III- BUSINESS PLAN PRESENTATION

MARKET RESEARCH

 MARKET SURVEY

We conducted a survey through a questionnaire made on Google Forms to know the preferences of
people on breads.

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CIA III- BUSINESS PLAN PRESENTATION

Findings

 85 count preferred Healthy variants of Bread such as Brown, Atta or Multigrain and only 25
counts for White/Sandwich Bread.
 Out of 82, 54 people prefer healthy variants of bread.
 Only 4.9% of the sample preferred buying breads from local bakeries.

 FEASIBILTY OF THE PRODUCT

The production of the products is quite feasible as there is no such raw material that cannot be
outsourced. There are even food aggregators such as ZOMATO and SWIGGY which has made the
food delivery very easy and accessible for cloud kitchens.
We will be required a small space on rent for running our cloud kitchen with a storefront, one manager,
and 3 chefs. Initial investment of utensils and some kitchen appliances like fridge, oven, utensils etc. is
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required which is quite easily available in the market

Raw material is easily available at the distributors of VEEBA SAUCES at very cheap rates, If the
demand tends to rise in the near future, sauces can also be supplied through the company itself.
The kind of products we have doesn’t require high class chef for cooking. A person with no or minimal
knowledge can also handle the kitchen after giving a short training.
The most important and significant part of the feasibility of the product is its profit-making capability
and in the food industry average profit margin is 50% which makes this project more feasible.

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 SWOT ANALYSIS
STRENGTHS
 Unique preposition of flavorsome eats
 Simple business model
 Unmatched quality and nutritional value
 Less capital is required
 Less investment is required
OPPORTUNITIES
 Untapped markets in semi urban areas
 Lack of subways in some areas
 Increasing customer presence in online
food aggregators
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WEEKNESSES
 Lack of dine in facilities
 Heavy reliance on food aggregators
 No direct contact with customers on
major occasions
THREATS
 Major brands like subway piercing into
the smaller markets
 Local sellers offering similar products at
far cheaper prices
 Lack of awareness for health and
nutrition in target market
CIA III- BUSINESS PLAN PRESENTATION

 COMPETITORS

The competitors at current hand are the leading food brands baking breads such as Britannia, kitty,
Bonn and other local bakeries who sell breads. These were the competitors for our bread that we will be
going to sell. Other than this, there are around 200 food vendors on ZOMATO in the city. So, we will
have to compete with 200 outlets listed on Zomato.
Our main competitors according to our product are Grill Masters, Checkmate, Deepak bakery and Jain
bakery.

 CHALLENGES

The primary challenge for our brand would be to make the market aware about the marketing gimmick
played by leading brands.
Not having a space for dine in can also be one of the challenges for us as we compete with other outlets
who have dine in options too and serving the food hot is also one of the biggest challenges for us as
sometimes Zomato valet gets multiple orders, and the food might get cold.

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CIA III- BUSINESS PLAN PRESENTATION

MARKETING PLAN

 Product uniqueness & Product Features

o Uniqueness: Here at Luscious Breads, we don't sell food particularly. Rather we have the perfect
solution for hunger and anything quite like it hasn't been seen in the market yet. Unlike other
competitors dealing in the same genre, we have sorted our products into every possible category
of flavors. Customers sometimes might not be sure of what they want to order but they always
know what kind of flavor they want to eat. Whether they want something spicy, sour, sweet-
sour, or something masaledar and we've got them sorted. In each of the categorized flavor
options customers are given loads of customizable choices from sandwiches to pastas, burgers,
subs and fries. For example, if a customer wants something spicy like schezwan flavor, they
could get various cuisines having the essence of schezwan.
o Product features: The breads that we use in our delicacies is made by volunteering Indian
housewives who are given a standard recipe for making healthy breads. This way we empower
Indian housewives by employing them where they could contribute on their own terms.
o Level of market acceptability: In India and outside during first 3 years, our products are set to be
highly acceptable as it is not something out of the ordinary or something tough to adapt. The
delicacies are adhered to match up with the flavors having a desi touch. Also, the initial markets
that we've chosen to target do not offer such quality products under the same domain. We have a
reasonable pricing of our products and offer unmatched quality compared to our initial
competitors. We've also tested our products publicly and the feedback has been very positive as
we work on the notion of prioritizing health without compromising on a lusciously delicious
treat.
o Nature of Market: B2B or B2C- The initial nature of our market is B2C. We will serve our
customers through whatever means they like. We provide several feasible options of serving our
customers like through take- aways, delivery through an online medium like Zomato and
directly serving our customers through our outlets. Although the breads that we employee
housewives to make can be distributed directly to other businesses like bakeries and cafés in a
B2B manner.

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CIA III- BUSINESS PLAN PRESENTATION

 Value for money and Price Competitiveness

We have thoroughly analyzed our initial target market to see what kind of quality the competitors are
serving in their corresponding pricing categories. This has helped us in coming up with a highly
reasonable pricing strategy where we are able to maintain our quality standards both in terms of taste
and healthiness.

 Packaging, Distribution and Promotion

o Packaging: We will try to position our brand through packaging by boxes and wrappers having
our brand Logo on them. We will also keep our packaging premium and make it plastic free by
serving shakes in glass bottles instead of plastic glasses.
o Distribution: Initially we are planning to list our products on online delivery-based applications
like Zomato and Swiggy. This is to ensure a positive response when we open a physical outlet
as then we will be able to bear the expenses of rent and machinery. As our products will already
have attained the initial popularity and momentum from Zomato ensuring adequate number of
orders to support our operations in the event of having a physical outlet.
o Promotion: We are aware of the power of social media in today's world. Hence keeping this in
mind we've made some dedicated social media-based accounts where we provide regular
updates on our products. We use innovative and attractive banners, posters and infographics to
attract customers. Our catchy lines and steal-deal offers on special days have received strong
feedback among the likes of many.

 Segmentation, Targeting and Positioning

o SEGMENTATION

 Demographic Factors for segmenting the market

 Location

 Our customers would be located within the city only

 Age
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 We will be focusing on the age group of 12-60+ as we have extensive variety of products such
as breads which is consumed by upper age group too.

o TARGETING

We will be targeting customers mainly of the age group of 15-50 of Yamuna Nagar. Once the customer
base is built, we will move onto the areas around Yamuna Nagar such as Karnal, Ambala, where
subway is not located. Once our brand starts getting recognition, we will dive into metropolitan cities
and compete with subway.
We will not only compete with subway but other bakeries and companies too who bake breads such as
Britannia, Bonn, and Kitty.

o POSITIONING

Brand will be positioned as an INDIAN BRAND who competes subway and provides healthy food and
sells exotic flavors. This can be done by aggressive marketing.

 Sales and Demand Forecasting

Initially, sales would be very high as there is this thing with the people of Yamuna Nagar that they hype
every new food start-up, but the problem is that they are loyal to very few places and customer retaining
becomes a challenging thing for us.
Population of Yamuna Nagar is around 2.17 lakhs. So, with all the hype and marketing prior to the
opening of the shop would fetch us n number of customers within the first month which will be around
40-50 number of orders with the average value of 250 or more per day.
Also, the customer base of subway is the golden and untapped market in which we can penetrate. So,
assuming we were able to retain 80% of our customers and will also gain some more customers through
word of mouth then we can maintain the level of sales of the 1st month.

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CIA III- BUSINESS PLAN PRESENTATION

Porter’s Five Forces Model

 Competitiveness
There is extreme competition in the industry of food and beverages. The strong competitors are
Unilever, Kraft foods and Group DANONE. This competition is not simply limited to the cost of the
product however also for quality, development and variation. Every market is aiming hard for the
maintenance of their market share. 

 Threat of New Entrants

A variety of barriers are there for the new entrants to occur in the customer food market. Only a few
entrants prosper in this market as there is a requirement to understand the consumer need which needs
time while recent competitors are well aware and has progressed with the consumer commitment over
their products with time. 

 Bargaining Power of Suppliers

In the food and drink industry, Lucious Breads need to owe the biggest share of market requiring
greater number of supply chains. This triggers it to be a picturesque buyer for the providers. Any of the
provider has never ever revealed any complain about price and the bargaining power is also low. 

 Bargaining Power of Buyers

Therefore, Lucious Breads needs to make sure that they keep its consumers pleased. This has them to
be one of the devoted companies in eyes of its buyers.

 Threat of Substitutes
There has been a fantastic threat of alternatives as there are alternatives of a few of the Nestlé's items
such as boiled water and pasteurized milk. There has actually likewise been a claim that some of its
products are not safe to utilize resulting in the decreased sale.

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CIA III- BUSINESS PLAN PRESENTATION

HUMAN RESOURCE PLANNING:

 TRAINING AND DEVELOPMENT

A well-planned training program will be held, which will help the restaurant staff to become more
efficient, help them deliver better service and also aid the restaurant operations. The training and
development program will vary based on the type of employees attending the program and the duration
of this program could last for 2 weeks. Employees will be given proper training and specialization for
better performance at work. The training and development program will include:

 Preparing a staff training manual- A manual will be given to the staff members and this manual
will act as a guide or a handbook about their job and operations. Employees can refer to this
manual for help or reference information regarding their duties and responsibilities and It will
also contain the rules they will have to follow while they work at this job.
 Conduct orientation-An orientation should be held before the training program. This would
make the employees familiar with the restaurant operations and helps them identify goals of the
business
 Educate staff and assign the staff roles-Assigning the staff their roles are an essential process of
staff training which should be carried out properly. A newly hired person with proper
experience also they would require proper instructions on how your restaurant operates. The
training should be specific to the exact duties of each employee and the staff should be aware of
the standard daily procedures of your restaurant and should know their duties and
responsibilities of their position. The staff should be aware of general everyday instructions like
the kitchen menu, cuisine type, target customers, busy hours, or days, etc.
 Training Staff to use the Latest Technology- It is essential to train your staff in the technology
that you are using at your restaurant to ensure efficient and swift performance. The restaurant
might have all the right technology to support the daily operations but if the staff is not trained
in how to use it, it will go to waste. It is necessary to familiarize your staff with using electronic
systems which help the staff to submit orders to the kitchen staff. calculate totals, raise invoices
for various customers at the same time, mobile ordering app, feedback app, and all other
technologies that you might be using to run the operations.
 Track and monitor training Progress: Progress should be tracked by dividing the program into
smaller sections. Tracking the progress will help the organization to know if anyone is not doing
well in the training program and extra efforts will be made to ensure that the employee is trained
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well. Holding regular training sessions will help the employees recall the training they were
given. Supervising the staff will ensure that they are practicing what has been taught to them.
Supervision ensures that the less experienced team has someone to reach out to.
 Encouraging Feedback- Towards the end a feedback session will take place where the
employees will be open to discuss with the HR department about the strength and the
weaknesses of the program, what they learned during the program and give feedback on their
overall experience. This information would help to improve the training and development
program in the future.

 EMPLOYMENT POLICY: CONTRACT LABOR OR PAYROLL RECRUITMENT &

SELECTION
Recruitment Process:

o Casual Applicants/ Walk-in-interviews: Any qualified person looking for a job can submit their
resumes with the restaurant at any time and the resumes can be kept as a source for future
recruitments
o E-Recruitment: This is recruitment through the internet. Employees at all levels can use this
method. The vacancies shall be posted online at our website and any prospective candidate can
send the firm their resumes online.
o Advertisement- Advertising can fill out the vacancies at your restaurant. Advertising helps
attract potential employees who are looking for a job in your restaurant. A detailed ad can be
posted on various platforms with a proper job description, working hours, etc.

 EMPLOYEE PROMOTION AND INCENTIVES

Performance based Promotions will be granted to employees by drawing a performance analysis and
reviewing it with respect to the tenure in the company.
The uniform incentive offered to the all the employees across the company is a fixed paid leave policy,
with the following specifics:
o Earned Leave/Privilege Leave: Advance notice of at least 7 days is mandatory and employee
will be paid during this leave
o Sick Leave: This leave is a paid leave. Workers can use to stay home to attend to their health
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CIA III- BUSINESS PLAN PRESENTATION

needs without them having to worry about losing pay. It can be used to deal with personal
matters because sick leave is intended for health-related purposes.
o Maternity Leave: Advance permission by the employees is required for this leave. The duration
of this leave is of 12 weeks to six months
o Casual Leave: This leave will be granted on certain foreseen situation but not for more than 3
days in a month.

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CIA III- BUSINESS PLAN PRESENTATION

PRODUCTION AND OPERATIONS

 PRODUCTION METHODS
Nature of our business is quite simple at its core. Food has always been in demand and with the
upcoming gen z, it's only going up. With the increasing reliance on online food ordering services of the
market, it's a decent opportunity to use the popularity of such services to pierce into the target markets.
The cuisines we offer require a very carefully selected set of raw materials. For our primary raw
material being bread, there are several nutritional and quality standards to be met. For this we carefully
train people and provide them with every guidance on how to do so. For cooking our cuisines, we will
hire professional chefs that match our standards set in order to maintain a consistent quality in all of our
outlets. Considering the hassle-free availability of raw materials that we use; it would be easy for us to
widespread in most markets. Also, the packaging we've selected has both promotional and practical use.
It retains all the heat from our food for sustained periods and doesn't let moisture in. Also, the colorings
match and signifies our brand.

 QUALITY POLICY
There will be proper cooking and packing instructions for the food being delivered and the chefs would
follow the standard rule book prepared for vegetables and breads being used in the food. All the breads
which will not be suitable for serving will be rejected. The kitchen will be cleaned twice a day, one in
the morning and then at the night. It would be compulsory for chefs to wear hand gloves and hair cap
while preparing food and for the production quality of breads prepared by women will be provided with
a cooking manual. They will have to follow that strictly for baking breads.

 LOCATION ANALYSIS
The existence of our outlet would be majorly in the Model Town of our city which is the hub of food
vendors and it will also be existing on food aggregators app like Zomato and Swiggy. The location
plays a major role in any food outlet’s business, so we have chosen a location which is in the middle of
the town and easily accessible.
Our kitchen will be of 300sq feet, including the storefront.

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CIA III- BUSINESS PLAN PRESENTATION

FINANCIAL PLAN

 INITIAL INVESTMENT

Particulars Units Amount Total

Kitchen Equipment 50,000 50,000

Kitchen Rent 1 40,000 (per month) 40,000

Raw material cost 20,000 20,000

Packaging cost 10,000 10,000

Kitchen security deposit 1,00,000

Legal 10,000
Computer 1 39,000 39,000
Furniture
Desk 1 10,000 10,000
Chairs 2 1,500 3,000

Website development 50,000

Marketing expenses 30,000
Total 3,82,000

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 BREAK EVEN ANALYSIS

Break even analysis = TOTAL REVENUE=TOTAL EXPENSES (NO PROFIT NO LOSS

SITUATION)
Kitchen Equipment 50,000 50,000

Kitchen Rent 1 40,000 (per month) 40,000

Raw material cost 20,000 20,000

Packaging cost 10,000 10,000

Kitchen security deposit 1,00,000

Legal 10,000
Computer 1 39,000 39,000
Furniture
Desk 1 10,000 10,000
Chairs 2 1,500 3,000

Website development 50,000

Marketing expenses 30,000
Total 3,82,000

Total Initial Investment

Estimated sales = RS. 5,00,000 (1 year) Estimated sales for 1 month = 6,00,000

Profit = 50% of the sales

Break Even will happen in the 2nd month

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NET PRESENT VALUE

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