Professional Documents
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Business Plan
Business Plan
Debajyoti Kar
18CS10011
1. Executive Summary
Stella is a private-limited startup whose mission is to revolutionise the dining
experience of consumers. It has a two-fold target - to enable consumers to locate
and dine in restaurants near to their location as well as enable restaurants,
especially the standalone ones to gather more and more customers.
Post pandemic, the health concerns of people have also risen. Restaurant menu
cards are touched by hundreds of different people on a daily basis and may not be
sanitised regularly. This increases the chance of COVID infection. Stella provides
contactless order placement and also allows customers to reserve seats in the
restaurant of their choice by paying a nominal fee. It also allows the underserved
and newly built standalone restaurants to have better dominance in the market.
1.4 Rewards
From the projected profit/loss statement, we find that the net profit after one year
of operation would be around 4.26 lakhs, which would rise to 11.168 lakhs at the
end of the second year. Thus we believe there is huge scope of expansion.
2. Company Overview
The company’s official name will be Stella Pvt. Ltd. It will be registered as a
Private Limited Company with its main office in Kolkata, West Bengal. Hence, it
will be registered in the state of West Bengal for tax purposes. Apart from the main
office, the company will have its regional offices in Delhi, Mumbai, Chennai and
Hyderabad initially. After we have successfully established ourselves in India we
might look to expand worldwide.
2.2 Mission
The primary mission of Stella is to leave no hungry customer waiting. It will
provide hygienic contactless order placing to the customers. It will also facilitate
restaurants to gather and retain loyal customers.
3. Industry Analysis
Some statistics on online food ordering are as follows:
● 70% of consumers say they’d rather order directly from a restaurant,
preferring that their money goes straight to the restaurant and not a third
party. Our service ensures that the money on orders goes directly to the
restaurant and no other third party is involved. [Source:
https://www.preoday.com/]
● 45% of consumers say that offering mobile ordering or loyalty programs
would encourage them to use online ordering services more often. [Source:
Mintel, 2016]
● Customers who place an online order with a restaurant will visit that
restaurant 67% more frequently than those who don’t. [Source: The 2016
Pizza Power Report]
● Visits to restaurants where guests paid by mobile app increased by 50% from
2017-18.
Thus we see that the online food-ordering industry is on the rise. Hence we believe
it is the right time for our startup to begin operations.
3.3 Marketing
We intend to capture and retain our SOM by marketing in the following ways:
● Branding: Acquiring the loyalty of consumers and restaurants through
stories revolving around the ideas that no customer should remain hungry
and waiting and no restaurant should be underserved due to competition
from other big, popular restaurants.
● Advertising: Mainly online, for example through ads in YouTube and other
channels, and offline through billboards and posters.
● Social media marketing: Through opening Facebook and Instagram
accounts and posting information on offers and discounts.
● Public Relations: Posting the feedbacks and reviews collected from
customers, to build a sense of loyalty and connection.
● Various other digital marketing strategies like search engine optimization,
pay-per-click, e-mail and affiliate marketing etc.
Statistics show that 90% of guests research a restaurant online before dining - more
than any other business type. Stella provides the perfect platform for such
customers to research and decide on restaurants nearby their location.
We aim at bridging this technology gap between the standalone restaurants and the
consumers, for a better dominance in the market.
● Stella is an app based platform for exploring the best nearby standalone
casual dining restaurants & cafes.
● Contactless order placements for better customer hygiene.
● Collaborative digital marketing for effective youth penetration and better
dominance in market.
● Incentive based loyalty programs for higher customer retention.
9. Financial Plan
We expect our company to make profits quite early in its operation. This is mainly
due to the comparatively small initial investment cost and operating expenses. We
are a servicing company, so very less money is spent in acquiring goods.
Following is the expected growth in the EBITDA margin in the first five years.
Following is the expected growth in the net profit margin in the first five years.
The above three plots project a steady rise in all profit margins through the next
five years.