Executive summary:

Name of the Business: Pie O’ Chai GmbH

Mission statement- Connect people with great tasting food.
Pie O’ Chai is a Cafe and bake shop in Friedrichstrasse, Berlin, a major tourist destination with
many luxury brand showrooms and corporate offices. This cafe’s specialty is Indian desserts
with a twist. It also serves chai, coffee and many other alcoholic and non alcoholic beverages.
Both food and beverages would be a fusion of Indian and European delicacies and flavors.
There will also be a wide range of savory food items from Indian cuisine, for people with not so
much of a sweet tooth. The cafe would have a small sitting area of about 20 chairs indoors and
about 10 outdoors. We are also in business for catering events and plan to sell our desserts to
high end indian restaurants (who only pick up readymade indian desserts from the market), in
Berlin. It is owned and run by Chef with international experience. Its target market is of
age group 20-50 especially shoppers, tourists and professionals in and around the
area.

Industry overview

Bakery is a well-known and large industry accounting for a remarkable position in the food
processing sector. Increasing sales market, growing per head earning, growing suburbanization,
growing tendency of gifting confectionary substances, growing inhabitants and frantic way of life are
more or less of the most important motivating issues of the confectionary market.
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People with hectic schedules have a habit of additional tending in the direction of confectionaries,
such as these substances are delicious and ingest a smaller amount of time.
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Furthermore, growing amount of employed women is motivating the international market of
confectionary such as it is causing in upper per head income for the home. By the source of
geography, Europe ruled the international market of confectionary in the latest
past.https://search.proquest.com/docview/2237961878/3153F756EA664741PQ/11?
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The market growth for bakery food and bakery ingredients are coupled as these ingredients are
required to prepare baked products. The global bakery ingredients market was valued at $12,588
million in 2017 and is projected to reach $18,596 million by 2025, growing at a CAGR of 5.0% from
2018 to 2025. The global bakery ingredients market is driven by increasing use of convenient bakery
food products due to the busy lifestyle. In addition, change in culture & lifestyles in the emerging
economies and rise in demand for low trans-fat & gluten-free products are expected to drive the
growth of the global market
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The Global Cakes, Pastries, and Sweet Pies Market is poised to grow strong during the
forecast period 2018 to 2028. Bakery Products market worldwide is projected to grow by
US$142. 7 Billion, driven by a compounded growth of 5. 2%. Germany will add over
US$5 Billion to the region’s size and clout in the next 5 to 6 years .
https://www.globenewswire.com/news-release/2020/03/06/1996271/0/en/Global-
Bakery-Products-Industry.html Some of the prominent trends that the market is witnessing
include rising demand for western baked good, increasing disposable income, demand for premium
cakes & patsries, demand for additive free, healthier, and natural baked products.
https://www.reportlinker.com/p05844636/Global-Cakes-Pastries-and-Sweet-Pies-Market-Analysis-
Trends-Industry-Forcast-to.html

We forecast total food spending growth in Germany to accelerate to 3.7% in 2020, up from 1.3%
in 2019. Over the medium term we forecast food spending to grow at an annual average of
3.8%, reaching a value of EUR185bn by 2023. • While spending on alcoholic drinks will see
modest growth over the medium term (averaging 2.8% a year), total alcohol consumption will
grow very slowly, at a rate of 0.3% a year. Wine and spirits will grow as the premiumisation
trend continues.
Germany stands sixth on food and non alcoholic drinks market and second on alcoholic drinks
markets globally. It is considered to be a high reward, low risk in food, alcohol and non alcoholic
drinks

Sugar and Sugar products sales estimate and forecast in euros, Millions

2018 2019 2020 2021 2022 2023

11,945.2 12,023.9 12,275.1 12,536.0 12,842.6 13,172.6

Sugar and Sugar products sales growth estimate and forecast percentage

2018 2019 2020 2021 2022 2023

1.9 0.7 2.1 2.1 2.4 2.6

Other food products sales growth percentage estimate and forecast

2018 2019 2020 2021 2022 2023

3.5 1.2 3.6 3.4 3.7 3.7

Other food products sales in euros, millions

2018 2019 2020 2021 2022 2023

6,703.9 6,783.1 7,024.1 7,263.5 7,533.9 7,815.5

Total alcohol consumption, litres per capita

2018 2019 2020 2021 2022 2023

 153.6 154.5 155.1 155.4 155.9 156.6

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The business & purpose Pie O’ Chai is a small yet high end cafeteria and bake shop, which
produces and sells Indian food, desserts and beverages with a European twist. While there are
many Indian restaurants and coffee shops in and around Friedrichstrasse, Berlin, there is none
specialising in Indian desserts. The idea of Pie O’ Chai, is for people to enjoy European
desserts, with authentic Indian taste. Each dessert would be execuvisitely plated for our guests’
high end experience. These desserts will be of high quality and prepared only with Bio products
and healthier substitutes. The service of this small cafe would be that of fine dining standards.
We will also be taking orders for catering big parties of about 100 people. The purpose of this
business is to introduce to people a unique taste of authentically Indian yet European desserts
and satisfy everyone’s palate. All ingredients used in production will be organic and bio and the
menu will state each product's calorie count. We have vegan and gluten free, sugar free,
healthier options too. As Friedrichstrasse is full of stores and offices. For professionals
who want to wind off the day and grab a coffee, tea or few drinks after work, Pie O’
Chai would be an ideal place offering flavors never tried before. It also offers quick
and healthy lunch options. The place offers desserts made with healthier substitutes
of sugar, for the people with a sweet tooth. All the products served in the cafe would
be exquisitely plated to make it ‘Instagram worthy’ for the younger population also,
which also helps in marketing strategies.

Market analysis and competition

While there are many big and small coffee shops in and around the area of
Friedrichstrasse our main competition is with Einstein cafe and Delhi 6. Cafe Einstein is
one of the oldest cafeterias in Berlin and has several branches on the same street as
well as across the city, which makes it easily accessible but does not provide a large
variety of food and lacks a creative menu. While Delhi6 is a restaurant which offers
authentic Indian meals, and their food and drinks menu is limited. Pie o’ Chai would be
introducing a twisted creative menu, with Indian flavors is something no cafe restaurant
has to offer in and around Friedrichstrasse. Our target market will be of the
ages of twenty to fifty, of all genders and marital status. The cafes aim
at a crowd from affluent backgrounds, shoppers, professionals who
work in and around the area and who are not afraid to try new things.
Where professionals of 25 and above can afford to spend money on
trying something different, are ready to spend on drinks in a
restaurant, the age group of 20-30 are active on social media, posting
pictures of food and drinks and its presentation. Be it breakfast,
lunch, informal meetings, evening tea/coffee or drinks after work, the
cafe has an ambience, products and service to suit all moods and
settings. The cafe will offer food and drinks at an affordable and
competitive price as compared to its competition, providing better
services and a unique food experience.

German consumers have a strong preference for high-quality goods and product innovations,
with health, functional foods and organic products having increased significantly in popularity. •
Germany is the largest economy in Europe and the largest market for many food products. •
The German food and drink sectors are innovative and forward-thinking. The food and drink
markets are highly competitive and consolidated in germany, Germany's capital isn't a typical
foodie destination. Culinary experimentation fell by the wayside on both sides of the Wall, and the
Cold War's end sent few gourmands rushing to the reunited city. But more recently, a budding
restaurant scene has sprung up around farm-to-table menus, experimental takes on regional foods,
and old traditions such as underground supper clubs. And while there are still infinite ways to
indulge in pork and sausage, Berlin boasts a vibrant vegetarian culture and an array of Italian,
Vietnamese, Turkish and other cuisines.
https://search.proquest.com/docview/873697212/57239CB8D04849B0PQ/19?
accountid=197877"People are well-travelled with evolved palates. People want to show that they are
exotic and passionate about food
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Friedrichstraße is Berlin’s north-south axis and runs in a straight line through
Mitte and Kreuzberg. It is 3.5 kilometres long and one of the city’s most
important arterial roads. Friedrichstraße had become Berlin’s most famous –
and notorious – amusement district. Building projects after reunification turned
the section of Friedrichstraße between the station and Checkpoint Charlie into
a popular shopping district. Today, there are many new buildings such as the
Friedrichstadtpassagen with designer boutiques, offices and restaurants.
https://www.visitberlin.de/en/friedrichstrasse

Sales and Marketing plans

Sales:

The cafe will have an option of dine in, take away, home delivery directly from the website
and also from different food delivery apps, for orders over a certain amount. We shall be
taking orders for buffets and catering events as well. Our USP is new innovative and unique
tastes to stimulate the taste buds of our guests. Our prices will be in competition with the
market and products all organic. We use sugar substitutes for healthier options. We offer
meat based dishes, vegetarian, vegan, lactose free, gluten free all under one roof.

Advertise:

The cafe should be investing money in creating its own logo and website and creating social
media handles. It shall invest in digital marketing and social media. Paying people to search
the cafe on search engines to increase traffic in order to get a high ranking and paying to
mediums like facebook, instagram, snapchat and other free apps for advertisement. Investing
in professional photography of plated desserts to make them look exquisite and irresistible
to post on all of the cafe’s social media handles. we shall be distributing/ mailing pamphlets
to all the shops and offices around the area. We will be prepared to give out free tasting
samples if required.

Promotion : The cafe plans to collaborate with several offices for special employee discounts
and shall be accepting sodexo cheques for payment. It will offer a loyalty program, where
after every few visits, the guests would get a beverage or food item on the house. We shall
also be providing happy hour discounts and a special lunch menu. For further promotions,
we shall be serving at food festivals in the city as well as the christmas market.

Ownership and management plan

Sole proprietorship the entire business assets are owned by Chef Parneet Saluja and shall be
always managed by her and all final decisions will be made by them and shall be considered
as an extension of her, and will be personally responsible for any debts or
liabilities incurred by the business. She shall also be taking care of
creating recipes, purchasing, marketing, promotions, financial aspect and
in charge of and overlooking day to day operations. The cafe will be hiring two
employees in the front and two in the back, in the kitchen. Two employees in the front
will be taking shifts at the counter, taking orders and preparing drinks. They shall also
be responsible for serving and cleaning the restaurant area after closing. The two
employees at the back will also be working in shifts and taking care of the food
preparation, plate up, serving and cleaning of the kitchen after closing. All the staff
will be trained to work both on the counter and in the kitchen. cafe will be closed on
Sunday as the offices and shops are also closed, leaving very few customers for the
day. The employees shall be paid minimum wage by the hour and shall get tips divided
amongst themselves. The cafe shall be hiring a lawyer to oversee and legalities it may
face.

Operating plans

Production

Pastry kitchens enable us to produce beforehand and can be stored in the freezer for later
use. Other products can be produced a day or two in advance but can also be produced
fresh. Production in the kitchen will happen in big quantities, which can be stored and used
as required. New production happens if the products in the cooler are more than a week old,
are not fit to serve or have been run out. The rule of ‘First in First out’ will be strictly followed,
to ensure the production does not go waste.

Facilities and Equipment

For successful operations of the cafe, we would require a space for about 70 square meters,
of which around 20 square meters for the kitchen in Friedrichstrasse, Berlin. The rent of the
refurbished, fully furnished and equipped kitchen space can be available at 45.77 square
meters making rent per month around 3500 euros. Around 200 euros in utilities after the
company has been registered.

https://www.immobilienscout24.de/expose/114635726?
referrer=com_otp_search&searchGeoPath=%2Fde%2Fberlin%2Fberlin#/

Staffing:

With 4 employees working full time in staff, who can work both in the front and in the back- in
the kitchen. The staff will be personally trained by the owner/chef. The job will be posted on
several online portals like criaglist.com and hotel career.com. It will be ensured that the
employees have a mandated ‘Rote Card’.

Supplies:

The ingredients for all production will be sourced from Boss Food and Terra Naturkost
Handels KG. which provides full-range organic supplier, supplies crunchy fruits
and vegetables, fresh dairy products, juicy meat, hot spices, fine wines. Bos
food provides a wide range of food products, ingredients. From fruits and
vegetables to garnishing, to pickles and chutney to chocolate covertures,
everything can be availed from Bos Food at reasonable price. It also provides
both European and Indian ingredients.

Financial plans

Pro Forma Income Statement

Title 2021 Assumptions 2022 Assumptions 2023

Increase by 17% Increase by
Sales 120,000 by 2022 140,400 25% by 2023 150000
45% percentage 45% percentage
Cost of Goods Sold 54,000 of sales 63,180 of sales 281,250
Gross Profit 66,000 77,220 343,750
Operating 12,000 10% Percentage 14040 10% Percentage 62500
 Expenses of sales of sales
Earnings before
interest and tax 54,000 63,180 281,250
Bank loan Bank loan
Interest rate at Interest rate at
Interest Expense 450 3% 450 3% 450
Profit before tax 53,550 62,730 280,800
Income Tax 17,672 Tax Rate at 33% 20700.9 92664
Net Earnings 35,878 42029.1 188,136

Cash Flow Statement

In Euros First month First Year Second Year Third Year

Opening Balance 25,000 5,600

Money In
Owner's Capital 3,000 6000
Bank Loan 20,000
Sales 5,000 120,000 140,400 150,000
Total Money In 28,000 145,000 146,400 155,600
Money Out
Rent 3,500 42,000 42,000 42,000
Utilities 200 2400 2600 2600
Wages/ Salaries 6,508 72,296 73000 75000
Loan Interest 450 450 450
Equipment 1,500 2500 200 300
Advertising and
Promotion 2,000 3000 1000 1000
Postage 20 50 50 50
Stationery 200 1000 1000 1000
Insurance 1,000 12000 12000 12000
Maintenance and Repairs 500 700 1000 1200
Inventory 10,000 12000 7000 9000
Miscellaneous 200 500 500 500
Cash Available 2,372 -3,896 5,600 10,500

Balance Sheet

Break Even

First baking co. report

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Vision Statement
To be awarded Michilin star for food quality, taste and service and
guest experience.

Spiced chai Lit

Vodka jal Jeera shot
Jalebi cupcake
Kaju katli cheese cake
Nariyal blondie
Gulab jamun parfait
Almond halwa pudding
Rasmalai ice cream
Saffron cream ice cream
Gajar halwa pudding
Bhutta pudding
Mango parfait
Tequila aam Panna
Bailey’s Thandai
Samosa
Poha
Sabudana Khichdi
Sabudana Wada
Bhutta Khichdi
Bhutte ke Pakore
Chicken Tikka sandwich
Chicken Tikka Kathi Roll
Paneer Tikka Sandwich
Paneer tikka Kathi roll
Mushroom tikka Sandwich
Mushroom tikka Kathi roll
Pistachio Kulfii baked alaska
Sandesh Mille feuille

The food scene in the German capital epitomizes this new wave of urban
culture — thoroughly unique and unlike any other in Europe. With a mix of old
and new, tradition and innovation, and humble and fine dining, there are a
myriad of ways to dine in Berlin.