I. EXECUTIVE SUMMARY.....................................................................................................

II. The Business............................................................................................................................7

2.1 The Opportunity.....................................................................................................................7

2.2 The description of the business..............................................................................................7

2.2.1 Company Vision, Mission and objectives......................................................................9

2.3 Competitive Advantage.......................................................................................................10

2.3.1 Description of the business model................................................................................10

2.3.2 Competitive Advantage................................................................................................17

2.4 Current Status and Requirements........................................................................................18

2.4.1 Start up Requirement Summary....................................................................................21

III. Management Team.............................................................................................................21

3.1 Management Team..............................................................................................................21

3.1.1 Management Qualifications and Experience...........................................................21

3.1.2 Duties of Employees................................................................................................22

Note: Refer to Section 10.4 in Appendix for additional details in staff costs.......................24

3.1.3 Management ability and Competence.....................................................................25

3.2 Advisors...............................................................................................................................25

3.3 Key Professional Service Providers.....................................................................................26

3.3.1 Banker...........................................................................................................................26

IV. Organisation structure, Ownership and Intellectual Property.............................................26

4.1 Organisation Structure.........................................................................................................26

4.2 Legal Structure.....................................................................................................................27

4.2.1 Registrar of Companies................................................................................................27

4.2.2 Local Authority (Municipal Council)...........................................................................27

4.2.3 Ministry of Labour, Industrial Relations and Employment..........................................27

1
 4.2.4 Other Requirements......................................................................................................28

4.3 Intellectual Property.............................................................................................................28

4.3.1 Branding Logo..............................................................................................................29

V. Industry Analysis...................................................................................................................29

5.1 Industry Description............................................................................................................29

5.1.1 Porter’s Five Forces.................................................................................................30

5.1.2 External analysis using PESTEL..................................................................................31

5.1.3 SWOT Analysis............................................................................................................32

5.2 Target Market..................................................................................................................34

5.2.1 Target Market and Customer Base..........................................................................38

5.3 Competitors’ Analysis.........................................................................................................40

VI. Marketing Plan....................................................................................................................41

6.1 Product Feasibility and Strategy..........................................................................................41

6.1.1 Market needs............................................................................................................41

6.1.2 Market Size..............................................................................................................42

6.1.3 Market Trend...........................................................................................................42

6.1.4 Strategy and Implementation...................................................................................43

6.1.5 Marketing Strategies................................................................................................44

6.2 Pricing Strategy...................................................................................................................45

6.3 Customer Support Strategy..................................................................................................45

VII. Operations Plan...................................................................................................................46

7.1 Method of production and service delivery.........................................................................46

7.3 Location Plan.......................................................................................................................47

7.4 Quality Control....................................................................................................................47

VIII. Financial Plan..................................................................................................................48

 8.1 Capital Requirement............................................................................................................48

8.2 Overview of financial projections.......................................................................................48

8.3 Financial Statements............................................................................................................49

8.3.1 Cash Flow Projections over year 1...............................................................................50

8.3.2 Projected Income Statement.........................................................................................51

8.3.3 Projected Statement of Financial Position....................................................................53

8.3.4 Projected Cash Flow Statement........................................................................................54

8.3.5 Break Even Analysis.....................................................................................................55

8.3.6 Analysis of Financial forecasts.....................................................................................55

IX. Critical Risk Factors...........................................................................................................56

9.1 Management Risk................................................................................................................56

9.2 Marketing Risk....................................................................................................................56

9.3 Operating Risk.....................................................................................................................56

9.4 Financial Risk......................................................................................................................56

9.5 Intellectual Property Infringement.......................................................................................57

9.6 Legal Risk............................................................................................................................57

X. Appendix................................................................................................................................58

10.1 Pasta Nutrition...................................................................................................................58

10.2 Olive Oil............................................................................................................................58

10.3 Fixed Assets (Listing and pictures of fixes assets prototypes)..........................................59

10.4 Forecasted Staff Costs.......................................................................................................61

10.5 Curriculum Vitae (CV) of owner.......................................................................................61

10.6 Questionnaire Issued during the Market Research............................................................65

10.7 Sales Forecasts...................................................................................................................68

10.8 Diagrams of Product Prototypes.......................................................................................72

i. Fusilli..............................................................................................................................72

ii. Lasagna........................................................................................................................72

iii. Macaroni......................................................................................................................73

iv. Penne...........................................................................................................................73

v. Ravioli.........................................................................................................................73

vi. Spaghetti......................................................................................................................74

vii. Tagiatelle.....................................................................................................................74

viii. Tortellini......................................................................................................................75
 I. EXECUTIVE SUMMARY
The business plan for ‘PASTA AMANTE’ reflects the opportunity to open a new pasta meal
shop in the Phoenix Les Halles Complex, based on the concept of combating diabetes. This
project will not only allow the Mauritian consumers to experience the wonders of Italian pastas
to its best, but will also bring awareness on the dangers of fast food meals which are rich in fats.

The owner intends to fully engage himself in changing the consumption pattern of Mauritians,
although she firmly believes that there are major commercial benefits in running a pasta food
network. On this note, the shop brand has been born ‘EAT HEALTHY’. This will be achieved
by measures at the level of preparation of pasta dish itself, while laying much emphasis on the
type of beverages that will be offered, and also by bringing more and more awareness to people
through marketing campaign inducing them to eat healthy. For a start, the key to make such a
venture successful domestically would be to ensure that the shop is very hygienic, comply with
health standards with respect to the Food Act 1998, serviced by an efficient supply network
producing consistent meals, with professionalism and quality paramount.

Operating in the Food service industry, PASTA AMANTE will develop a unique business model
that will combine quality with great service. The company will provide high quality, fast-served
styled meals, based on a central theme of Pasta but will have a flexible degree of customisation
to suit the customers’ taste. Concerning the meal, customers will be invited to create their own
dish through three steps namely by selecting the type of pasta preferred, followed by choosing
the toppings to be added, to ultimately finish by selecting the sauce to be spread on top of the
meals. Fresh salad will also be provided alongside the pasta dish to make a complete meal. The
owner has decided that only olive oil will be used in all preparations of meals, since it is more
beneficial in terms of health. Fresh juices from fruits and vegetables will be served as beverages,
and these will be prepared upon orders, based on what customers have chosen. To add value to
our potential customers, the company will also provide a mobile transport service – a door to
door service branded as ‘MEAL ON WHEEL’ that will cater for customers outside the
geographic area, thus allowing widespread sales coverage.

The company’s competitive edge will thus be established through generating high customer
loyalty by delivering high customer value in terms of affordable price, quality of product and
service, customer excellence and maintaining a high quality in after sales service as well.
Moreover, the company will be an exclusive one in terms of health consciousness, by providing
non-fattening and tasty nutritious meals. PASTA AMANTE will be located in the Phoenix Les
Halles Complex, which is indeed favourable for the company; it is situated in the centre of the
island, in a highly busy town and the complex has a high concentration of visitors daily. A
competitor analysis has shown that the pasta shop will be unique in the region, given that all
direct competitors providing Italian cuisine are all situated in the north of the island.

A market research has been carried out by means of a questionnaire which was issued to each of
700 members of the public over the island in general. The response was encouraging since
customers are willing to try a new taste, and Italian cuisine seems to be very appealing to
members of the public. Combining several key demographic factors, the company’s targeted
markets will consist of three categories mainly. The owner is targeting the whole district of
Plaines Wilhems which is in the centre of the island, and thus the pasta shop will be easily
accessible to them. Research has indicated that Plaines Wilhems is the most highly populated
district in Mauritius; therefore it represents a potential significant market for the business.
Moreover the owner intends to target mostly the people, who are between 18 and 55 years, that is
those who can easily afford to buy themselves a meal. The other segment of the population that
is targeted is the whole lot of professionals working at Ebène city, where are situated many of the
main offices on the country. Using this research, the owner will identify specific features and
benefits that the target market segments value. Feedback from market tests, surveys, and focus
groups will help to develop the Diet Pasta. She is also measuring and analyzing customers’
attitudes towards competing brands and products.

The economic environment for the successful outlet will take into account the factors and
conditions that influence the ability of its target market to afford its product. Consumers today,
particularly in business-centric cites, have a relatively high disposable income. The Diet Pasta
will be priced competitively with existing alternatives and the company will strive to attract
market share through product differentiation. The marketing campaign will attract people into
the company and the sales strategy will be to let people experience the company’s product. The
advertising budget will be very limited at the start, so the advertising program will be simple.
The company will use direct mail, internet, personal contacts, business card, banners and mouth
to mouth techniques, where it will be betting on customer service and the quality and nature of
the pasta to promote the shop. The management team will also visit some leading companies and
make power point presentation on the concept of ‘EAT HEALTHY’, followed by free lunch.

PASTA AMANTE will be the first one for Divyata Naggea, the owner. However, she is fully
dedicated and is highly determined in bringing the shop towards success. She expects to be able
to manage the business, given the educational background and professional experience she
acquired in the past. A professional cook, specialised in Italian cuisine will be employed by the
company to manage the kitchen responsibilities that is to assist in everything concerning the
preparation of the meal. This will add to the competitive edge of the shop, as customers will be
offered meals prepared with a typical Italian taste and style. The owner will additionally employ
a human resource and marketing clerk, a part time dietician, a waiter, a receptionist and a cleaner
to work in the pasta shop. She accords much importance to a good employer-employee
relationship, and will therefore ensure that the whole staff team work cordially.

Since the business will be a new one, it will need significant funds to start operations. The owner
will have to invest in new fixed assets, to pay for all costs incurred upon opening a new business,
and will have to ensure that it has sufficient liquidity afterwards to meet its revenue expenditure
that is the day to day expenses. The Pasta shop will thus be financed through a combination of
direct owner investment and a long term loan guaranteed by the owner’s collateral security,
which is her private bungalow. Rs 1,000,000 have already been set aside from the owner’s
savings to invest in the pasta shop project. However the bank loan of Rs 500,000 is still under
negotiations pending certain important documents.

All procedures concerning the bank loan shall be completed upon receipt of the business card
which is still outstanding until now, though application is in progress. Application for
Incorporation at the Registrar of businesses has already been filled, and the business card is
expected. Once the business card obtained, the owner will be able to meet some of the basic
requirements of the pasta shops such as applications for licenses and clearances that are
mandatory to start trade. The work and residence permits for the Italian cook is a must to allow
him to stay and work in Mauritius. Concerning the provision of fixed assets, the owner intends to
purchase everything from only one supplier to obtain discounts. A list of the required assets was
given to J Kalachand & Co Ltd in this respect, and a quotation has already been received. The
owner also needs to cater for the recruitment of the additional staffs and ensure that people with
relevant experience are employed.

II. THE BUSINESS

2.1 The Opportunity

This business plan reflects the opportunity to open a new pasta meal shop based on a concept of
combating diabetes in Mauritius. During my last holiday in England, I once took lunch in an
Italian food restaurant and really enjoyed the meal. It was a tasty meal, hardly available in
Mauritius. Then came this idea of why not advancing the large variety of pasta meals to
Mauritius, something which would bring a new taste to the Mauritian community, instead of the
other common fast food meals, which are far more detriment to people’s health compared to
pasta meals. This project would allow the local inhabitants of not only experiencing the wonders
of Italian meals at its best, but would also help to combat the bad eating habits of people of
consuming other common fast foods which have a high content of oil. Following a discussion
with my parents upon this business opportunity, they heartily encouraged me to carry forward
with this business plan.

2.2 The description of the business

Mauritius currently ranks among the nation having the highest proportion of its population
suffering from diabetes, and thus represents a chronic problem in the country. Many years back,
the island had a monoculture of sugar cane and sugar production was the main economic
activities of the country. This was enhanced by the several protocol agreements signed by the
post independent government. Sugar was at that time part and parcel of people’s daily life and
became one of the main consumption items. Excess sugar was however easily extracted from the
body due to the hard labour, where most people were manual workers and thus problem of
diabetes did not really arise at that time.

In the late eighties, Mauritius witnessed full employment and people had to work longer hours.
During these days, the culture was such that it were only the men who went to work to meet
family needs, while women staying at home doing all household works. The advent of full
employment however brought about a shortage in the labour market, and this consequently led to
two types of revolution; firstly women started working to fill the gap prevailing in the labour
market and secondly, the living pattern of both the husband and the wife changed. Both man and
woman working meant a heavier schedule for both, resulting in limited or no time to look after
the house and preparing dinner. Fast food thus represented an easy source of rapid food venue
and that is how fast foods anchored well in the Mauritian style of living. The concept of fast food
and street vendors’ food became predominant to the detriment of home food. This gave rise to
bad eating habits. The situation became even worse with technological revolution in the working
environment, where people were putting less effort to carry out their respective job. However the
culture of sugar intake was still well alive and present. This changing working environment,
combined with increased consumption of fast food coupled with the problem of diabetes,
eventually gave rise to serious health problems. The government raised great concern about this
problem which was on a rising trend given that this issue of health problems was detrimental to
the overall progress of the country and also meant a lot in terms of costs for the State.

To tackle this pressing problem, the government started to take corrective measures to stop
diabetes. One of the measures that the latter engaged in was to reeducate the population and
create awareness of the dangers of consuming fast food mainly oily and fatty food and the very
high risk of contracting diabetes following the bad habit of eating. Another measure was to stop
the sale of all fatty, oily food and soft drink beverages containing sugar and preservatives on all
school premises. Creating this awareness among young children has been fruitful as nowadays
children are well acquainted with the problem of diabetes. That is why together with the idea of
opening a pasta meal shop, I am also engaging myself in this combat to reduce diabetes. This
will be done by measures at the level of preparations of the meal itself, together with the types of
beverages that will be offered, and last but not least, by creating more and more awareness
among the people throughout the marketing campaign, inducing them to eat healthy.

Using this as a driver I began to realize that there were also major commercial benefits to
running a pasta fresh-food network. For a start, the key to make such a venture successful
domestically, would be to ensure that the shop is very hygienic, comply with health standards
with respect to the Food Act 1998, serviced by an efficient supply network producing consistent
meals, with professionalism and quality paramount. Fresh green salad will also be sold alongside
the pasta. Beverages will consist of only water and fresh juice prepared on site. The customer
will have the opportunity to choose the fruits and vegetables of his / her choice. I spent
considerable time designing a fresh pasta shop conducive to the above purposes which will
differentiate my products from other substitutes. I shall keep ties with the culinary community to
elicit the design of fresh and tasty meals to be served from the shop. The Pasta shop brand was
born “EAT HEALTHY”! In realizing the opportunity to seize a niche market through rapid
expansion, I will recruit an international experienced pasta cook to develop and implement this
initiative.

2.2.1 Company Vision, Mission and objectives

The Company’s philosophy is “To forge a new, vibrant, high quality and revolutionise brand in
the fast-food sector; to challenge the established market by offering a fresh, tasty and
professional alternative; and to build a robust business model founded on high-yield, low capital
outlay products.”

 Company’s Vision

The Company aspires to make Mauritius a better health conscious population by bringing a
change in mindset and revolutionise eating habits of Mauritians.

 Company’s Mission

The company mission will be to provide its customer the finest nutritious meals and fresh juices,
together with the best dining experience. It will exist to attract and maintain customers and its
services should exceed the expectations of all its customers.

 Company’s Objectives

The company’s objectives are to build brand awareness and good customer service, while
growing sales by opening new stores in prime areas. It is firmly believed that the company will
expand predominantly domestically, and will diversify later on through catering and product
placements in supermarkets. The company intends to adopt the following strategies to achieve
these objectives:

 Offering high quality, innovative menu items, and using premium vegetables and
fruits, meats and cheeses.
  Providing an excellent dining value; The Company will provide large portions of
fresh, high quality food at competitive and affordable prices.
 Building brand awareness through inexpensive, guerrilla marketing tactics.
 Pursuing discipline growth.
 Providing superior customer service.
 Leveraging the experience, intelligence and skills of owner and workers.

2.3 Competitive Advantage

2.3.1 Description of the business model

 Company and Industry

The company will be in the Food service Industry. It will develop a unique business model that
will combine quality with great service. Its motto will be to invent the pasta experience for
individuals, families and take-away customers by selling high quality, innovative products at a
reasonable price, designing taste and being at a convenient location. To add value to our
potential customers, the company will also provide a mobile transport service – a door to door
service branded as ‘MEAL ON WHEEL’ that will cater for customers outside the geographic
area, who cannot come to the shop or for customers who would prefer to eat at their own
convenience. The Pasta shop will be financed through a combination of direct owner investment
and a long term loan guaranteed by the owner’s collateral security.

 Keys to Success

 Services

The Company’s pastas, salads and fresh juice beverages will be different and superior to other
competitors in the food industry. Customers can taste the quality and freshness of the product in
every bite.

 Training
The Company will pride itself on providing service that is on par with fine dining. This will be
accomplished through an extensive training program by hiring only experienced employees.

 Site Selection

The location of the business will be critical for the success of the company. The following site
selection criteria have been identified:

i. Daytime and evening population

ii. Shopping pattern
iii. Household income
iv. Surroundings and composition of the neighbourhood

Taking all these factors into consideration, a slot has been identified in the Phoenix Les Halles
Complex at Phoenix to start the business. The location will be rented initially due to limited
capital resource which does not allow the possibility of purchasing the building as from the start
itself. However, the owner intends to purchase the building afterwards if trading operations have
been successful to generate enough funds to allow for the acquisition of the building.

The owner has chosen to open the pasta meal shop in the Phoenix Les Halles Complex since it
has the following attributes:

i. It is a big complex, where there are a lot of shops selling goods ranging from clothing,
home ware, sporting equipment, computers, luggage, cosmetics and many more, where
many people browse through to do their shopping. Moreover, the complex provides
parking facilities for its visitors, and can accommodate around 800 cars, while having 70
cameras for security reasons. Therefore, the owner does not have to cater about these
particular issues.
ii. It is situated in a well known place, at Phoenix, just beside the main road (Motorway M1)
of the Phoenix roundabout, a route which is taken by many Mauritians daily.
iii. It is situated approximately in the centre of the island, thus making it easily accessible to
a large public even though they do not live in the surroundings.
iv. There are a number of offices in the surroundings employing many people, such as the
Mauritius Institute of Training and development (MITD), the Phoenix Beverages Limited
 (PBL), and many others at Ebene. These people may represent a potential market to be
targeted for the pasta shop.

 Product and Services

The company will provide high quality, fast-served styled meals, based on a central theme of
Pasta (Refer to Section 10.1 in Appendix), but will have a flexible degree of customisation to
suit the customers’ taste. The meals will cater for one and all and will be delivered fresh and fast.
Initially, meals will be provided to customers in-house and will at a later stage be available
through mobile transport service, thus allowing widespread sale coverage. The shop will be
state-of-the-art that will comply with health regulations and the Food Act 1998. The mobile
transport service will become a product in itself, as the company expands gradually. The
company will be both in-house and a globally transportable business. These two will
symbiotically solidify the company’s brand name. The pasta shop will offer its services as from
10 am to 22 pm.

 Product Life Cycle

Normally a new product progresses through a sequence of stages from introduction to growth,
maturity and decline. As the product will be at the introduction stage, we will seek to build
awareness and develop a marketing mix as follows:

i. Product branding and quality level will be established, and intellectual property
protection such as patents and trademarks obtained.
ii. Pricing strategy will be that of a ‘low penetration pricing’ to build market share rapidly.
iii. Distribution will be selective until consumers show acceptance of the product.
iv. Promotion will be aimed at innovators and early adopters. We will use Marketing
communications to seek to build product awareness and to educate potential consumers
about the product.
 Features and benefits
The premise will be designed so that the customer can see that the food is prepared in front of
them using fresh ingredients. Each serving of the pasta meal is a taste sensation, freshly cooked
to order and served piping hot. For those to be served outside the location, it will be served in a
convenient cardboard pail. Customers are invited to create their own pasta dish following three
easy steps; this is illustrated as follows:
 Pas
ta
Me
nu

Step 1 Step 2 Step 3

Select Choose Add Sauce

Pasta Type Toppings Type

Agliata- hot
Eggs spicy sauce
Fusilli Grilled with garlic
Lasagna Chicken Alfredo
Macaron Grilled sauce
Penne Entrecote Bolognese
Ravioli Grilled Fish sauce
Spaghetti Grilled Cheese
Tagliatelle Meat (Lamb sauce
Tortellini or Beef) Ham Cream
&Eggs
Prwans
Poderana
Salmone
sauce –
Vegetables maremma
style
Mushroom
Supreme
sauce
Neapolitan
sauce
Pesto sauce
Sauce
Maison
Pureed
tomatoes
Besides the above, the Company will also provide fresh Salad (Greek Salad and Exotic Salad) to
make a complete meal.

Olive oil will be used in all our preparations. (Refer to Section 10.2 in Appendix).

Compared to the meals offered by competitors, the company will offer a fresh, tasty, nutritious
alternative. The pasta may be slower than some other fast food from the point of order, but it is
significantly fresher, more nutritious, and almost 50% more beneficial in terms of health.

Fresh Juice from fruits and vegetables will serve as beverages. The owner has already worked
out on the different juice mix that will be provided to its customers, that is the different
constituent of each type of juice. She has also identified a specific name for each juice that will
be served, and customers will be provided with a brief description of each on the menu book.
This will allow the customer to know the content of its juice. By knowing exactly what are the
fruits and vegetables included in the juice, the customers will be able to make their choice more
easily according to what they want. The list of juices that will be provided by the company
together with the description which the owner intends to include is given in the following table.

Name of Juice Description to be included in the Menu Book

Oranges Our freshly squeezed 100% Orange Juice is full of vitamin C and
bioflavonoid, making it good for those with weak teeth and gums, as
well as those with weak digestion and a poor appetite.

Carrots Our freshly squeezed 100% Carrot Juice is an excellent source of

vitamin A & potassium and is particularly good for filling the gaps
between meals and for being relieved after a heavy night.

Apples Our freshly squeezed 100% Apple Juice is a great remedy for
indigestion, as well as containing pectin, which reportedly reduces
cholesterol.

Strawpple Our Strawpple contains a perky blend of strawberries and apples. The
 apples are a great remedy for indigestion, while the strawberries are
good for alleviating thirst, sore throats and hoarseness.

Pineapple kiss Containing a delicious blend of pineapple and orange juice, the
Pineapple Kiss is great for helping your digestion and giving your
Vitamin C levels a solid boost.

Kickstart cleanser Our Kickstart Cleanser contains a nutritious blend of carrot and apple,
as well as ginger on request. It is particularly good for heating the body,
quenching thirst and cleansing out toxin build ups.

Strawberry Rosé The Strawberry Rosé is an uplifting blend of orange and strawberry and
is particularly good when accompanying fresh spaghetti.

Mauritian Spice The Tahiti Spice features an exotic mix of apple, mango, passion fruit
and spicy ginger to stimulate your appetite and quench your thirst.

Flu Fighter The Flu Fighter contains a nutritious blend of apple, orange, lime and
ginger. With lots of great ingredients and vitamins, drink it when you
feel the sniffles coming on!

Detox Special Containing a blend of apple, celery, cucumber and lime, the Detox
Special will have you feeling fit and perky in no time.

Mauritian Sun Splash The Caribbean Sun Splash is a mouthwatering mix of pineapple,
passion fruit, mango and orange & is particularly good for rainy days
 when you want to escape the winter blues!

Energiser The Energiser is a nutritious blend of apple, grape, orange & pear.
Particularly good for tiredness and fatigue, the Energiser contains a
zingy boost of amino acids, vitamin C and bioflavonoid.

Mauritian Cooler Containing a mouth-watering mix of lime, orange, watermelon and

agave, the Mexican Cooler is a cold refreshing “Mouthful of Mexico”.
The watermelon refreshes you and the lime livens up your day. What’s
not to love?!

2.3.2 Competitive Advantage

The Company competitive edge will be: ‘Superior product and superior service’

i. The product will have the freshest ingredients including homemade pasta, wheat flour,
imported cheese, organic vegetables and top-shelf meats. The product will also be
developed to enhance presentation and everything will be esthetically pleasing.
ii. The product will be an exclusive one in terms of health consciousness which will
revolutionise the eating habit of the population. The Company will provide non-fattening
and tasty nutritious food which will be our exclusivity.
iii. The products will be fresh, natural, and in compliance with the Food Act 1998 which is in
line with general policy and aim of the government.
iv. Customer service will be of top priority. All employees will ensure that customers are
having the most pleasant dining experience. The company will focus on total customer
satisfaction. A satisfied customer will be more likely to come again and this shall
contribute towards the company’s competitive edge.
v. The Company will be generating high customer loyalty by delivering high customer
value in terms of affordable price, quality, customer excellence and maintaining a high
quality after sales service.
 vi. The location of the pasta shop is indeed very favorable since it is found in a big shopping
complex which receives many visitors daily.
vii. The Pasta shop is one which is unique in the region as there are no other food shops
selling pasta products as meals. Restaurants or shops selling some types of pasta products
are most commonly situated in the North of the Island.

2.4 Current Status and Requirements

 Premise

The location for the pasta shop has already been identified in the Phoenix Les Halles Complex,
and there are regular conversations with Mrs. Koraysha Dhunputh, Marketing Manager
Currimjee Development & Property Management Ltd, for additional information needed and
concerning the procedures to follow.

 Suppliers of Raw Materials and other Consumables

The main supplier of the pasta shop in respect of raw materials would be T & T Internationals
Food Ltd. The latter is a Manufacturer and exporter of instant and dried noodles and short-cut
pasta and is a Member of the Mauritius Chamber of Commerce and Industry. It has agreed to
supply the pasta products as per our required specifications. For the supply in respect of the
fillings on the pasta, the owner is considering the Food and Allied Group of Companies, Innodis
Ltd, local farmers and planters, though no negotiation has yet been made at that level.
Concerning stock of consumables, such as tissue paper, kitchen detergents amongst other, the
owner plans to buy them in bulk from Mauritius Supercash limited, where they can be bought at
cheaper prices as a result of bulk purchase.

 Fixed Assets

Concerning the provision of fixed assets (Refer to Section 10.3 in Appendix) that will be
required for the operations of the business, the owner intends to buy everything from only one
supplier so that she can benefit from promotional prices. Until now, she has approached the
Kalachand Group to see whether any deal can be made together. A list of what are required was
issued to the company, and a quotation has been obtained as follows:
  Funds

The Pasta shop will be financed through a combination of direct owner investment and a long
term loan guaranteed by the owner’s collateral security, which is her private bungalow. Rs
1,000,000 have already been set aside from the owner’s savings to invest in the pasta shop
project. However, the bank loan of Rs 500,000 from the Mauritius Commercial Bank is still in
negotiation. Following discussion with a responsible officer of the bank, the owner has been told
that the loan would be agreed provided it is backed by a security. Moreover, the owner has been
notified that given the nature of the business, the bank loan would be provided at an interest rate
which is 4% above the prime lending rate (PLR), which is at present 7.25%, thus giving rise to
an interest rate of approximately 11.25%. All procedures concerning the bank loan shall be
completed upon receipt of the business card which is still outstanding until now, though
application is in progress.

 Legal and Operational Requirements / Incorporation of the business

Everything concerning permits, licenses, clearances has not yet been applied for since the
business registration card which is still outstanding, is a requirement for all these applications.
All procedures shall be carried forward once the business card obtained. Note that a BRF1 form
has already been filled with the Registrar of Businesses for the “Application of an Individual for
registration of business/business name and for a business registration card”, as shown below:

 Recruitment of Staffs

Until now, no staff has been recruited for to work in the Pasta shop. This will be done in due
time when the project is gradually in progression, when all formal and legal requirements are
near to be finalised. However, it is to be noted that an Italian cook has already been contacted so
as to form part of the staff team of the pasta shop. He would be employed so as to handle all the
kitchen responsibilities, and preparing the meals.
 2.4.1 Start up Requirement Summary
A Start up summary of the Investment, Loans and Assets figures relating to the first year of
operation of the Pasta shop, can be represented in the chart below.

Amount (Rs)

1200000

1000000

800000

600000

400000

200000

0
Assets Investment Bank Loan

III. MANAGEMENT TEAM

3.1 Management Team

III.1.1 Management Qualifications and Experience

Our initial team will be made up of Key personnel. We will have significant experience in the
hospitality industry, advertising, and business management. At the initial phase, we will start
with seven staffs as follows:

i. The Owner, Divyata Naggea,

 Holds a degree in “Business Statistics with Economics” with the University Of Mauritius
 Is an ACCA qualified member with the Association of Chartered Certified Accountant in
the United Kingdom
 Holds some knowledge in Entrepreneurship and Leadership Skills following a course at
the University of Mauritius
She will therefore sufficiently know how to handle and manage the business, given that she has
the marketing and management skills to start the business. Moreover, she has previously worked
in the Marketing and Financial department of two companies previously, and is thus well verse
in this field. (Refer In appendix for CV)

ii. A professional cook from Italy, specialised in Italian cuisine

iii. A Human Resource and marketing clerk
iv. A part-time dietician who will act as consultant to the company
v. One waiter
vi. One cashier /receptionist
vii. One cleaner / attendant

III.1.2 Duties of Employees

Job Title Duties Attributed
Manager / Owner o Manage and coordinate the day to day operations of the business.

o Look over the issues and problems concerning the business.

o Deal with stakeholders such as suppliers, bankers, government for any

issue or decision relating to the business.

o Act as the finance manager and prepare all the set of accounts relating
to the company.

Cook o Season and cook food according to recipes or personal judgment and
experience.

o Observe and test foods to determine if they have been cooked

sufficiently, using methods such as tasting, smelling, or piercing them
with utensils.

o Portion, arrange, and garnish food, and serve food to waiters or

 patrons.

o Wash, peel cut vegetables, meats or others to prepare them for

consumption.

o Inspect food preparation and serving areas to ensure observance of

safe, sanitary food-handling practices.

Human Resource / o Responsible of payroll for the staffs.

Marketing Clerk o Coordinate to manager any problems noted in the organisation in
relation to the staff team or any other relevant issue.
o Responsible of all the marketing and advertising work in relation
to the promotion of the business.
o Assist the owner in any administrative works that need to be
done.
Dietician /
o Judge the quality of meals provided.
Consultant
o Provide advice and consultations on whether food standards are
being met.
o Advise on the way food should be prepared to guarantee a
healthy food to customers.

Waiter o Greeting guests, with eye contact and smile.

o Escort customers to their tables.
o Present menus to patrons and answer questions about menu
items, making recommendations upon request.
o Explain how various menu items are prepared, describing ingredients
and cooking methods.
o They occasionally take orders and act as a liaison between the
kitchen and dining room.
o Serve food and/or beverages to patrons; prepare and serve
 specialty dishes at tables as required.
o Prepare fresh juice as per customer’s choice.
o Check with customers to ensure that they are enjoying their
meals and take action to correct any problems.
o Refer guest to the cashier for dealing with payment.

Cashier /
o As a customer service professional, the cashier asks the patron if
Receptionist
the meal was acceptable and assists with any last-minute service
issues. She will take the bill from a customer, ring it up on the
cash register and accept payment. She will take cash and make
changes. She will be responsible for the money in the cash
register and must account for it at the end of their shift.
o Act as hostesses and show patrons to their tables, especially
during busy times. They also complete some chores such as
wiping off menus and are expected to keep their working area
neat and tidy.
o Answer telephones, take reservations.

Cleaner / Attendant o Assess the cleanliness and hygiene situation of the establishment and
detect current and potential problems.
o Perform common household tasks to maintain a clean work place. This
may be in the form of sweeping floors, cleaning walls and windows
and throwing the trash.
o Clean food preparation areas, cooking surfaces, and utensils.

o Prepare tables for meals, including set up items such as linen and
tableware.
o Remove dishes and glasses from tables or counters, and take
them to kitchen for cleaning.
Note: Refer to Section 10.4 in Appendix for additional details in staff costs

III.1.3 Management ability and Competence

With combined experience, professional qualifications and with energetic personalities, which
are critical to ensuring the company’s values, the owner will provide the skills to deliver:

i. Broad management skills

ii. Leadership skills
iii. Accounting principles
iv. Financial with broad entrepreneurial appreciation
v. A creative flair and eye for efficiency
vi. Important Human Resource skills combined with marketing bent.

Her employees will be her main asset and she will put much emphasis on good employer-
employee relationship. It is her belief that employees who are dedicated to the success of the
Company should be rewarded fairly and they will be leaders of our future expansion.

3.2 Advisors
Within the organisation, the board of advisors will consist of the owner, the human
resource/marketing clerk, the cook and the part time dietician. Any relevant issue shall be
proposed and discussed whenever the owner convenes a meeting. The Human resource clerk is
responsible to take note and convey any propositions that are brought forward by the other staffs
who do not form of the board.

Other external advisors that could be of help to the organisation are:

i. Ministry of Health and Quality of Life, concerning food and Health regulations
 ii. Ministry of Labour, Industrial Relations and Employment, concerning the procedures
relating to work and residence permits

3.3 Key Professional Service Providers

3.3.1 Banker
The Bank account of the organisation would be maintained at the Mauritius Commercial Bank
(MCB), and all cash, bank or other type of transactions will be effected through the MCB.

IV. ORGANISATION STRUCTURE, OWNERSHIP AND INTELLECTUAL

PROPERTY

4.1 Organisation Structure

Based upon the management team described above, the organigram illustrated below shows the
organisation’s structure that is the relationships that exist between managers and sub workers
who make up the organisation.
 Owner / Manager
Divyata Naggea

Human Resource / Dietician /

Cook
Marketing clerk Consultant

Waiter

Cashier /
Receptionist

Cleaner / Attendant

4.2 Legal Structure

4.2.1 Registrar of Companies

As per the Business Registration Act 2002, every individual carrying on a business activity in
Mauritius is required to register with the Registrar of Companies at the Companies Division.
Registration fees depend on the workforce of the company.

The owner has already filled in a BRF1 form with the Registrar of Businesses, and has thus
applied for the registration of the Business under the name of “PASTA AMANTE, ALL
ITALIANA”, and also for a Business Registration card. (Refer to…) A registration fee of Rs 100
has been paid, given that the Pasta shop will have only seven staffs in all.
 4.2.2 Local Authority (Municipal Council)
Every individual carrying on a business is requires paying a fee known as the trade fee to the
local authority, where it is located, within 15 days of start up. The trade fees depend upon the
category of trade, and the owner will have to pay Rs 2000 in respect of trade fee given that the
pasta shop falls into the category of “Victualler selling cooked food on and off premises”.

A building and Land Use permit is also required from the local authority before starting trade,
and the owner will have to pay Rs 500 and follow the required procedures so as to obtain the
permit. However, the business registration procedures need to be fully completed so as to be able
to make application for the above permit.

4.2.3 Ministry of Labour, Industrial Relations and Employment

The owner will have the following legal requirements before commencing trade:

i. The organization shall need a registration certificate with the Ministry of Labour,
Industrial Relations and Employment, given that it will employ staffs to carry out
operations.
ii. Given that the organization will employ a foreign cook, the latter will need to have a
Residence Permit together with a Work Permit. This should be applied at the
Employment Division, with the Ministry of Labour, Industrial Relations and
Employment. The Application fee for Residence permit is Rs 500, while the Work Permit
fee in relation to Restaurants amounts to Rs 1000 per year for the first 5 years, and Rs
10000 per year thereafter. Moreover, in accordance with the Non citizens (Employment
Restriction) Act 1973, and Non Citizen (Work Permit) Regulations 1994, there is a need
to pay a statutory deposit. The deposit fee in respect of a non citizen from a European
country amounts to Rs 40000.

4.2.4 Other Requirements

The Company will have to have a Health clearance with the Ministry of Health and Quality of
Life, a Fire Clearance with the Fire Services. Moreover, the company shall comply with the Food
Act 1998 concerning food regulations.
4.3 Intellectual Property
A company will be incorporated and a trademark consisting of the company’s logo, with the
name “PASTA AMANTE, ALL ITALIANA” displayed on it, will be registered. Moreover,
another trademark “MEAL ON WHEEL” will also be registered. We will ensure that Intellectual
Property Act is respected in terms of patents, trademark and copyrights. The application for the
registration of trademark should be done at the Industrial Property Office, with the Ministry of
Foreign Affairs, International Trade and Cooperation. The fee in respect of registration of
trademark amounts to Rs 2000 per registered trademark.

4.3.1 Branding Logo

The Company’s logo has been designed in such a way that it appeals and attracts potential
customers, it is catchy and easily remembered, and it has been uniquely designed so that it stands
out those of competitors. The Company’s logo will be displayed as the Shop exterior sign outside
the premise, on the owner’s business card, on the menu book that will be presented to customers,
and for any other required purpose. A friend of the owner, who is a professional in the field of
design, has voluntarily helped in designing the Company’s Logo upon request from the latter.
The Logo of the Company has been finalised as such:
 V. INDUSTRY ANALYSIS

5.1 Industry Description

In the late eighties, Mauritius witnessed full employment and people had to work longer hours.
During these days, the culture was such that it were only the men who went to work to meet
family needs, while women staying at home doing all household works. The advent of full
employment however brought about a shortage in the labour market, and this consequently led to
two types of revolution; firstly women started working to fill the gap prevailing in the labour
market and secondly, the living pattern of both the husband and the wife changed. Both man and
woman working meant a heavier schedule for both, resulting in limited or no time to look after
the house and preparing dinner. Fast food thus represented an easy source of rapid food venue
and that is how fast foods anchored well in the Mauritian style of living.

V.1.1 Porter’s Five Forces

We have used Porter’s five forces to analyze the food industry.

i. Supplier power:

Since we will have to buy our raw materials from external source, suppliers will a great influence
on our company unless we try vertical integration where we can partly produce some of our raw
materials and thus less dependency on suppliers.

ii. Threats of substitutes:

There will be many substitutes on the market such as noodles but our product will have its own
peculiarities and merits which will differentiate us from others.

iii. Buyer power

Since there will be a large number of buyers and each of them will have their particular choice,
that will not affect us too much along as we can provide quality and nutritious food based
customer excellence.

iv. Degree of Rivalry

There will be many competitors but our product will be unique in itself and our price competitive
enough to secure a relatively good market share.

v. Barriers to entry

If we can prove ourselves a first mover advantage in our product and securing all the advantages
and benefits deriving from being a first mover advantage, it would be difficult for another
competitor to enter the market in the same line of the Company as we can adjust our price and
bet on our customer service to place a barrier on a new entrant.

5.1.2 External analysis using PESTEL

o Political: The country is political stable and conducive to business
o Economic: The local trend is that government policy is actually geared towards
encouraging SME by providing guidance and financial assistance.
o Social: Development in the society is towards a health conscious population and a
complete change in the mindset of the people in eating habits.
o Technological: Using the latest technological applications, all ordering, stocking and
quality controls will be managed on an in-house computer based system enabling usage
patterns to be monitored maintaining ordering efficiency and minimizing wastage.
o Environmental: Since today everyone is talking of moving towards an eco friendly
world, we will also engage ourselves to be in line to this resolution. To meet this end,
leftovers will be offered to local gardeners who are looking for organic matter as compost
to enrich their soil. The Company will also contribute to this by using compact
fluorescent lighting.
o Legal: Our legal system is very advanced and flexible, very conducive to conduct
business in all fairness, transparency, and security.

5.1.3 SWOT Analysis

S STRENGTHS

 Strong products supported by great tasting meals with a strong focus on

quality, healthiness, competitively priced meals together with the speed
of delivering the meals.
 Market conditions are favorable with the company offering new niche
spark in an otherwise no health conscious market.
 Low development risk as the product is currently well known in
countries such as Italy and other parts of Europe.
 Low management risk due to an experienced team and the strong
diversification of skills and expertise. This will lead to holistic results.
 High gross margins on meal products, which can be maximized by
negotiating bulk purchase agreements with wholesalers.
W WEAKNESSES

 Product may be vulnerable to weaken over time, which can be

minimized through product innovation and diversification.
 Restaurant is new and not established.

O
OPPORTUNITIES

 Niche-specific opportunities through monopolizing niche market by

building strong brand awareness in our shop.
 Capitalize on diversity of venues and consumer groups to promote market
expansion through event catering and franchise ownership.
 Availability of land to produce our own fruits and vegetables instead of
relying on external supplier.
 T THREATS

 Local government regulations in relation to Food businesses.

 Vulnerability to imitation of the products from competitors as the meal
products cannot be patented. This needs to be addressed by building strong
brand awareness and establishing copyright on total quality system.
 Cyclones, drought and other calamities may cause scarcity of raw materials.

V.2Target Market
Before entering into the process, we have conducted a market research by preparing a
questionnaire which was given to members of the public. 700 questionnaires were distributed but
only 655 of them were received back. The questionnaire consisted of 8 questions that
participants had to answer and these were as follows:

1. Please select which best fits your regularity. How often do you eat out in a restaurant?
2. Which restaurant do you visit most regularly?
3. Is your choice influenced by the restaurants location? If yes, kindly put your comments
on the factors that determine your choice in question 4 below.
4. Please explain what determines your choice of location below (closeness to place of
residence, customer satisfaction,…). Please also specify which locality you visit the most
when going to a restaurant just after your comments.
5. How much would you usually spend (per person) on a meal?
6. Do you usually go alone (select single) or accompanied (select as appropriate)?
 7. Would you be willing to try a new restaurant?
8. What type of evening restaurant would appeal to you?

(Refer to Section 10.6 in Appendix for more details on the questionnaire)

Analysis of the above question has provided the following results.

Question 1: Please select which best fits your regularity. How often do you eat out in a
restaurant?

Regularity of people eating out in a restaurant

Daily
3% 7%
Few times a week
12% 9%
24% Once a week
Twice a month
Once a month
Rarely
Never
9% Other
36%

Question 5: How much would you usually spend (per person) on a meal?

Average amount spent per person on a meal

4% 1%
7%
Under Rs 300
Between Rs 300 and Rs 600
Between Rs 600 and Rs 1000
Rs 1000+

88%
Question 7: Would you be willing to try a new restaurant?

Willingness of trying a new restaurant

700

600 641

500

400

300

200

100

0
14
Willing Not Willing

Question 8: What type of evening restaurant would appeal to you?

Restaurant that would mostly appeal to

people

15% Italian
Chinese
14% Indian
Pizzeria
54% American Style Food
Other

12%

5
%
The response was quite good and encouraging as people seem to be willing to try a new taste,
and italian cuisine appears to be very appealing to the public. We have come to the conclusion
that there is a strong need for a change in mindset on the pattern of consumption at national level
at all age group and income level. This has been the main driver to go forward.

Using this research, we will identify specific features and benefits our target market segments
value. Feedback from market tests, surveys, and focus groups will help us develop the Diet
Pasta. We are also measuring and analyzing customers’ attitudes towards competing brands and
products. Brand awareness research will help us determine the effectiveness and efficiency of
our messages and media. Finally, we will use customer satisfaction studies to gauge market
reaction.
 V.2.1 Target Market and Customer Base
For the Company, the term ‘customer’ means “consumers who may purchase a pasta meal from
the Company location”

We are of opinion that all age groups enjoy pasta. However the most defined characteristic of the
target market is income. Combining several key demographic factors, the Company arrives at a
profile of the primary customers as follows:

i. Families who live nearby

The owner aims to target the whole district of Plaines Wilhems given that it is in the centre and
is easily accessible. This represents a major proportion of the population as this is the district
which has the highest number of residents in Mauritius. Therefore targeting this whole region
will definitely prove to be beneficial for the business. The pie chart below illustrates the
proportion of Mauritians residing in each of the district of the island, showing Plaines Wilhems
on top of list with 31% of the population representing the targeted market.

Number of residents per district in Mauritius

Port Louis
Moka 11%
7% Pamplemousses
Black River 11%
5%
Riviere du
Rempart
9%

Plaines Wilhems
31%

Flacq
11%

Savanne Grand Port

6% 9%
 ii. Age group of the targeted region
The company aims mostly people who are between 18 and 55 years old, that is people who
generally works and are in ability to pay a meal whenever they want to. An analysis of the
different age groups in the district of Plaines Wilhems shows that around 54% of the total
residents residing in the respective district represent the targeted population. This is illustrated in
the pie chart below.

Residents according to different age groups

15% 15%

0-9
16% 10-19
20-29
30-54
55+

38%
16%

iii. Professionals who work close to the location

The owner aims to target those people who work nearby during lunch time. These include
workers of the Mauritius Institute of Training and Development (MITD), workers of the whole
industrial zone just opposite to the Phoenix les Halles Complex, and also young professionals
who work at the Ebène City which represent a big market given that nearly all offices are
shifting to Ebène now.
5.3 Competitors’ Analysis
An analysis of local competition was done through the survey that was carried out by issuing
customers. If viewed from a general point of view, that is considering the whole fast food and
restaurant sector, the competition is wide, since many of the existing restaurants and fast food
shops have already successful brand awareness. The survey has allowed the owner to identify the
most popular shops among all the competitors and this is illustrated through the following pie
chart.

Popularity of Restaurants and fast food shops

in Mauritius
KFC
4
Pizza Hut
% 7%
Debonairs Pizza
9%
Nandos
42%
7% Mc Donald
2 Chinese Food Restaurant
% Indian Food Restaurant
Italian Food Restaurant
21% 8% Other

As shown above the most KFC is most popular among the population. The company has its own
trading centre and in fact features regularly in the top performance league of the Sub continental
region. KFC therefore represents a potential competitor. Its popularity is enhanced given that it
has many branches throughout the island, and has a competitive edge through its ‘drive through’
facilities. The owner however believes that her product will be unique in itself and price
competitive enough to secure a relatively good market share, given that the survey has revealed
that Italian cuisine seems to be appealing to customers.
The different competitors that are directly linked to the Pasta shop that is those which specialise
in Italian cuisine in Mauritius are listed below:

i. Caprice, Corner of Mont Choisy and Trou aux Biches

ii. La Cigale Pizzeria, Pointe aux Cannoniers
iii. Luigi’s Italian Pizzeria & pasta Bar, Riviere du Rempart
iv. Mamma Mia Restaurant & Pizzeria, Riviere du Rempart
v. Patch N Parrot, Pamplemousses
vi. Air Lounge, Rogers House, Port Louis
vii. Al Dente, Caudan Waterfront, Port Louis
viii. La Casa Restaurant, Pointe aux Piments

Although all the above restaurants operate in the same line of business of the pasta shop, they do
not represent potential threat to us, since all of them are located in the North of the island.
Therefore, PASTA AMANTE will remain unique and will be the only shop selling pasta meals
in the region where it is located.

VI. MARKETING PLAN

6.1 Product Feasibility and Strategy

The domestic market for fast food is large and segmented. The company will initially target
Ebène lunchtime crowds between 11.00 to 14.00, and high-income earners but also time-poor
individuals through our mobile transport service. Shopping malls, university campuses, weekend
markets, and local business areas will then be targeted thereafter.

VI.1.1 Market needs

PASTA AMANTE will provide its customers with a wide selection of high-quality pasta dishes
and salads that are unique and pleasing in presentation, offer a wide selection of health conscious
choices, and will utilise top-shelf ingredients. PASTA AMANTE seeks to fulfill the following
benefits that are important to their customers.
 i. Selection: A wide choice of pasta and salad options.
ii. Accessibility: The patron can gain access to the restaurant with minimal waits and can
choose the option of dine in or take out.
iii. Customer service: The patron will be impressed with the level of attention that they
receive.
iv. Competitive pricing: All products/services will be competitively priced relative to other
fast food restaurants.

VI.1.2 Market Size

The market for fast food in Mauritius is substantial, and the opportunity to build and grow a new
exciting product with a strong brand is real. Although the industry is mature with heavy
buyer/seller saturation, it is heavily segmented on quality, style, modality and price, presenting
opportunity for niche market products such as Pasta. Customers’ perception of ‘healthier’ is an
important value proposition. Our Pasta shop will be in line with this, with the added bonus of
serving the meal quickly.

The idea that desirable food would be prepared quickly appeals to a sizeable portion of the
market; those in tourism, people engaged in a commercial capacity, busy homemakers and
students. These few examples are indicative of a large and growing collection of “time poor”
individuals placing increasing value on every spare moment of their day. The company will have
the ability to match the need for convenience with the utility that modern, fast paced lifestyles
drive.

VI.1.3 Market Trend

Today the contemporary food outlet must maintain its appeal within an increasingly health-
conscious market. Worldwide the “diet” continues to gain momentum and this means that
products with less appeal to the diet-conscious will suffer reduced success. Entrepreneurs
continue to derive profits from ‘health-conscious’ ventures. The company will be designed to
make the most of the public’s increasing nutritional conscience.

The economic environment for the successful outlet will take into account the factors and
conditions that influence the ability of its target market to afford its product. Consumers today,
particularly in business-centric cites, have a relatively high disposable income. Our Diet Pasta
will be priced competitively with existing alternatives and will strive to attract market share
through product differentiation.

VI.1.4 Strategy and Implementation

The company will build brand recognition through well designed marketing tools. Once brand
recognition has been achieved, expansion strategy is to further penetrate the market by opening
additional stores. This clustering approach will enable the company to increase brand awareness
and improve operating and marketing efficiencies.

The advertising budget will be very limited at the start, so the advertising program will be
simple. The company will use direct mail, internet, personal contacts, business card, banners and
mouth to mouth techniques, where we will be betting on customer service and the quality of our
pasta to promote the shop.

 Strategy Formulation
We will use Porter’s generic strategies for implementation of our strategy as follows:

i. Overall cost leadership:

We will work hard to achieve the lowest production and distribution costs so that products can be
priced lower than competitors and win a large market share.

ii. Differentiation:

We will concentrate on achieving superior performance by seeking quality leadership, expert

advice on quality and effective communication.

iii. Focus:

We will constantly maintain focus on our customers and be customer oriented all throughout.
 VI.1.5 Marketing Strategies
The marketing campaign will attract people into the company and the sales strategy will be to let
people experience the company’s product. This will be sufficient to turn the person into a long
term customer.

At the start of the promotional campaign throughout the first month of operation, we will make a
launching ceremony where we invite people who have contracted diabetes, doctors, dieticians,
bankers and other influential persons and offer them a complete free lunch. The media will be
invited to attend the function and to report there on. We will serve the first 100 customers free
of charge to taste our product and create awareness. We will visit some leading companies and
make power point presentation on the concept of ‘EAT HEALTHY’, followed by free lunch.
We will continue our promotional campaign to create full awareness of our product by proposing
to our potential customers ‘buy one, get one free’, subsidised lunch to students and partly
subsidised to others. Communication with all stake holders will be an important tool in our
marketing strategy.

An after sales service will be organised where we will communicate with all our stake holders to
have their feedbacks, complaints and corrective measures taken immediately. All the above free
plates will be included in our initial cost as ‘Other operating expenses’.

We will use direct sales as part of our marketing strategy and very important our staffs will be
trained in communication skills as there is no second to first impression. Other marketing tools,
such as leaflets will be delivered door to door and to all companies in the surroundings.

We will use technology such as e-marketing, e-supplying, e- purchasing to promote our product
on a larger scale. A key challenge will be to design a website that is attractive at first sight and
interesting enough to encourage repeated visits.

We will try to create a first mover advantage for our product as it will be launched as an
exclusive product with expert advice. The concept of the 6P’s (Product, Price, Place, Promotion,
People, Process) and 6M’s (Money, Machinery, Manpower, Materials, Markets, Make-Up) will
be used to make our marketing strategy a successful one and each one will be dealt separately as
a distinguished marketing tool.
6.2 Pricing Strategy
The owner will set the price of her products by comparing the relative prices of its main
competitors who specialise in Italian cuisine, to ultimately fix it at a much lower price so as to
remain competitive. The average price of a meal in the closest competitor’s shop, which is the
‘Luigi’s Italian Pizzeria & Pasta Bar’, amounts to around Rs 200 per meal. The owner has
decided to set the price at around Rs 90 initially so as to be competitive and acquire a big market
share as soon as possible.

6.3 Customer Support Strategy

We will intent on developing stronger bonds with our customers. This will allow us to provide
online real-time customer service through the effective use of information and communication.

The challenge to us is to produce delighted and loyal customers. To attain this, we will develop
advertisements and place them in media that will reach new prospects. We will send direct mail,
make phone calls and participate in trade fairs.

To retain our existing customers, we will build strong customer-management relationship by

delivering high customer satisfaction. This will make it harder for competitors to offer lower
prices or inducement to switch.

Complaints will be dealt with efficiently and rapidly and we will keep constant monitoring to
ensure total customer satisfaction.
VII. OPERATIONS PLAN

7.1 Method of production and service delivery

Raw material products will be sourced from selected suppliers and will be on the basis of bulk
buying to attract discounts. The operation will be overseen by our cook, adhering to strict health
regulations. All ordering, stocking and quality controls will be managed on an in-house computer
based system enabling usage patterns to be monitored maintaining ordering efficiency and
minimizing wastage.

7.2 Sales Forecast

For the first year of operation, sales will be initially poor being a new entrant into the market.
With time however, with increasing brand awareness, sales will gradually increase, and will be at
its peak during November and December, given that these two months are in the festive seasons,
and the Phoenix Les Halles Complex receive many visitors at that time.

The trend in the forecasted sales in respect of Year 1, Year 2 and Year 3 can be illustrated as
follows. (Refer to Section 10.7 in Appendix for more details on the forecasted sales)

700,000
Yearly Revenue Forecast
600,000

500,000

(Rs) 400,000

300,000 Year 1

Year 2
200,000
Year 3
100,000

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
7.3 Location Plan
The business will be located in the Phoenix Les Halles Complex at Phoenix. The location plan is
displayed below.

7.4 Quality Control

We are planning tight control measures to closely monitor quality and customer satisfaction. This
will enable us to react very quickly in correcting any problems that may occur. Other early
warning signals that will be monitored for signs of deviation from the plan include monthly sales
and monthly expenses.
VIII. FINANCIAL PLAN

8.1 Capital Requirement

The Pasta shop will be financed through a combination of direct owner investment and a long
term loan guaranteed by the owner’s collateral security, which is her private bungalow. Rs
1,000,000 have already been set aside from the owner’s savings to invest in the pasta shop
project. However, the bank loan of Rs 500,000 from the Mauritius Commercial Bank is still in
negotiation. Following discussion with a responsible officer of the bank, the owner has been told
that the loan would be agreed provided it is backed by a security. Moreover, the owner has been
notified that given the nature of the business, the bank loan would be provided at an interest rate
which is 4% above the prime lending rate (PLR), which is at present 7.25%, thus giving rise to
an interest rate of approximately 11.25%. All procedures concerning the bank loan shall be
completed upon receipt of the business card which is still outstanding until now, though
application is in progress.

8.2 Overview of financial projections

Based on the above information, an overview of the financial projections provides a start up
summary as follows:

Amount (Rs)

1200000

1000000

800000

600000

400000

200000

0
Assets Investment Bank Loan
8.3 Financial Statements
The owner has prepared a forecasted set of financial statement so as to get an overview of the
financial position and performance over the first three years. However, these have been based on
a number of assumptions. The key underlying assumptions are:

o The average selling for the first three years will remain constant over the whole year as
follows:

Average Price per meal Average Price per juice

Year 1 96 30
Year 2 102 32
Year 3 110 35

o A gross margin of 60% is to be made.

o It is assumed that the Pasta shop will operate 30 days per month.

o Depreciation on fixed assets is to be charged at a rate of 10% yearly based on the straight
line method.
o It is assumed that the Prime Lending Rate (PLR) will remain fixed at 7.25% throughout
the whole year, and over the first 3 years, thus assuming interest payable at 11.25% per
annum on the loan.
o VAT will be excluded in the calculations.
o Equipment will be in good working order, such that there is no repairs cost throughout
the year.
o Expenses will be paid as incurred, that is no bill payments accrued, and no expenses
outstanding during the year.
o Rental Costs will remain fixed over the three years.
o Staff Wages will rise by 5% in Year 2 and Year 3, and include one month bonus for the
month of December. One additional waiter will be employed in Year 3.
o The general inflation rate is assumed to be 4% in year 2 and 2% in year 3.
o It is assumed that access to loans and financing are sufficient to maintain and fulfill the
financial plans as shown below.
 8.3.1 Cash Flow Projections over year 1
Months Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
Details (Rs) (Rs) (Rs) (Rs) (Rs) (Rs) (Rs) (Rs) (Rs) (Rs) (Rs) (Rs)
Cash Inflow

Owner's Investment 500,000 - - - - - 500,000 - - - - -

Bank Loan 500,000 - - - - - - - - - - -

Sales Receipts from meals 115,200 129,600 144,000 158,400 172,800 187,200 201,600 230,400 259,200 259,200 259,200 360,000

Sales Receipts from fresh juice 36,000 40,500 45,000 49,500 54,000 58,500 63,000 72,000 81,000 81,000 81,000 112,500

Total Cash Inflow 1,151,200 170,100 189,000 207,900 226,800 245,700 764,600 302,400 340,200 340,200 340,200 472,500
Cash Outflow

Purchase of fixed assets 696,658 - - - - - - - - - - -

Purchases of raw materials 62,400 70,200 78,000 85,800 93,600 101,400 109,200 124,800 140,400 140,400 140,400 195,000

Staff wages and salaries 84,500 84,500 84,500 84,500 84,500 84,500 84,500 84,500 84,500 84,500 84,500 84,500

Rental Cost 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000

Motor vehicle running costs 2,000 2,020 2,040 2,061 2,081 2,102 2,123 2,144 2,166 2,231 2,298 2,367

Utilities 5,000 5,050 5,101 5,152 5,203 5,255 5,308 5,361 5,414 5,577 5,744 5,916

Marketing and advertising costs 10,000 7,500 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 7,500

General Insurance 500 500 500 500 500 500 500 500 500 500 500 500

Permits and licenses 44,100 - - - - - - - - - - -

Interest on bank loan - - - - - - - - - - - -

Other operating expenses 3,000 3,030 3,060 3,091 3,122 3,153 3,185 3,216 3,249 3,346 3,446 3,550

(261,229
Total Cash Outflow (928,158) (192,800) (198,201) (206,103) (214,006) (221,910) (229,815) (245,521) ) (261,553) (261,888) (319,333)

Net Cash Flow 223,042 (22,700) (9,201) 1,797 12,794 23,790 534,785 56,879 78,971 78,647 78,312 153,167

Balance Brought forward - 223,042 200,342 191,141 192,938 205,732 229,521 764,306 821,185 900,156 978,803 1,057,115
Cash Balance at end of month 1,057,115 1,210,282
223,042 200,342 191,141 192,938 205,732 229,521 764,306 821,185 900,156 978,803
 (Rs) Projected Monthly Cash Flows
1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

8.3.2 Projected Income Statement

Year 1 Year 2 Year 3
(Rs) (Rs) (Rs) (Rs) (Rs) (Rs)

Sales 3,250,800 4462200 5,676,750

Less Cost of Sales:

Opening Inventory - 41,280 309,600

1,341,600
Purchases 2053200 2,470,500

Closing Inventory (41,280) 1,300,320 (309,600) 1,784,880 (509,400) 2,270,700

Gross Profit 1,950,480 2,677,320 3,406,050

Expenses:
1,014,000
Staff wages and salaries 1,153,425 1,301,093

Rental Cost 240,000 240,000 240,000

Motor vehicle running costs 25,632 26,401 27,721

Utilities 64,080 89,712 107,654

Marketing and advertising costs 70,000 50,000 50,000

General Insurance 6,000 6,000 6,000

Permits and licenses 44,100 5,000 5,000

Other operating expenses 38,448 53,827 64,592

Depreciation 69,666 (1,571,925) 69,666 (1,694,030) 69,666 (1,871,726)

Profit before Interest 378,555 983,290 1,534,324

Interest on bank loan (56,250) (56,250) (56,250)

Net profit 322,305 927,040 1,478,074

 (Rs) Projected Yearly Profit
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
Year 1 Year 2 Year 3
 8.3.3 Projected Statement of Financial Position
Year 1 Year 2 Year 3
(Rs) (Rs) (Rs) (Rs) (Rs) (Rs)
Non Current Assets

Fixed assets at cost 696,658 696,658 696,658

Accumulated Depreciation (69,666) (139,332) (208,997)

Net Book Value of assets 626,993 557,327 487,661

Current Assets

Inventory 41,280 309,600 509,400

Cash and Bank Balances 1,210,282 1,913,668 3,236,608

1,251,562 2,223,268 3,746,008

Current Liabilities

Interest on bank loan 56,250 56,250 56,250

Bank Loan 25,000 25,000 25,000

(81,250) (81,250) (81,250)

Net Current Asset 1,170,312 2,142,018 3,664,758

1,797,305 2,699,345 4,152,419

Financed by:

Capital 1,000,000 1,322,305 2,249,345

Profit 322,305 1,322,305 927,040 2,249,345 1,478,074 3,727,419

Long Term Liabilities

Bank Loan 475,000 450,000 425,000

1,797,305 2,699,345 4,152,419

8.3.4 Projected Cash Flow Statement
Details Year 1 Year 2 Year 3
(Rs) (Rs) (Rs) (Rs) (Rs) (Rs)
Cash flows from operating activities
Profit before interest and tax 378,555 983,290 1,534,324
Adjustments for:
Depreciation of non current assets 69,666 69,666 69,666

Increase in Inventory (41,280) (268,320) (199,800)

Increase in current liabilities - 28,386 - (198,654) - (130,134)

Cash generated from operations 406,941 784,636 1,404,190

Interest paid - (56,250) (56,250)

Net cash from operating activities 406,941 728,386 1,347,940

Cash flows from Investing activities

Purchase of non current assets (696,658) - -

Net Cash used in investing activities (696,658) - -

Cash flows from financing activities

Investment 1,000,000 - -
Bank loan 500,000 - -

Repayment of bank loan - (25,000) (25,000)

Net cash from financing activities 1,500,000 (25,000) (25,000)

Net increase/decrease in cash and cash equivalents 1,210,282 703,386 1,322,940

Cash and cash equivalents at beginning of year - 1,210,282 1,913,668
Cash and cash equivalents at end of year 1,210,282 1,913,668 3,236,608
 (Rs)
Projected Yearly Cash Flow
3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0
Year 1 Year 2 Year 3

8.3.5 Break Even Analysis

In the first year, total revenue for the shop is projected to be Rs 3,250,800 with an average price
of Rs 96 per meal. Break even calculations indicate that the Pasta shop will break even when
selling 16,960 meals that is when total revenue exceeds Rs 1,628,175.

8.3.6 Analysis of Financial forecasts

Year 1 Year 2 Year 3

Profitability Ratio
Sales Growth 0% 37% 27%
Gross Profit Margin 60% 60% 60%
Net Profit Margin 10% 21% 26%
Expenses to Sales Ratio 48% 38% 33%
Return on Capital Employed 18% 34% 36%

Liquidity Ratio (times) (times) (times)

Current Ratio 15.40 27.36 46.10
Quick ratio 14.90 23.55 39.84
Interest Coverage 6.73 17.48 27.28
Stock turnover 63.00 10.17 5.55

Gearing Ratio 26% 17% 10%

Analysis of the financial projections indicates that the company’s performance will be favourable
in the first three years, as shown by the profitability ratios. The financial position of the company
will also be in good terms as indicated by the favourable liquidity ratios. The business will be
less dependent on long term debt to finance its operations over the years, as shown by the
gearing ratio. The owner is therefore optimistic about the success of her business and firmly
believes about the long term going concern of the shop.

IX. CRITICAL RISK FACTORS

9.1 Management Risk

There are risks that key employees leave the company for another competitor or sabotage by
them. This can be overcome by respecting employees that is being highly concerned about
employer-employee relationship.

9.2 Marketing Risk

The Company will form part of the food industry and any health hazards might give a negative
publicity on its image. Aggressive campaign to promote product may not prove fruitful if
customers are not satisfied with the product or if customer service not up to the standard. This
can be overcome by continuously maintaining a high level of hygiene and quality control.

9.3 Operating Risk

Any defect in machinery or refrigeration can cause serious damage in the operating process. This
can be overcome by maintaining all equipment in good order and carrying out the necessary
servicing as and when required. Cyclones and drought can affect the Company directly in the
provision of raw materials. Theft of assets does not represent a potential threat since the business
will be under security supervision which is a service available over the whole complex.

9.4 Financial Risk

The country can be running into a financial crisis where purchasing power of customers reduces
and thus affecting sales figure. It may also happen that the business performance diverges from
the forecasted plan, thus bears the risk of taking a longer time for the Company to break even
and eventually running at a loss. Banks will then not be prepared to give us financial support.
This may also bring the business towards bankruptcy as result of insufficient capital or funds to
move forward and finance future developments. Business going bankrupt may also mean
unsettlement of previous loan contracted which may result to legal matters.

9.5 Intellectual Property Infringement

We can be sued in court in case we have not respected patents or copyrights of another company.

9.6 Legal Risk

Government can pass law or reinforce existing law such as the Food Act which can force the
Company to review its whole structure and operation. The company should ensure that it abides
by health and safety standards; otherwise it might be sued to court in case of any incident. Any
change in the tax law can also reduce its profit margin.
 X. APPENDIX

10.1 Pasta Nutrition

Pasta is a perfect foundation for healthy, nutritious and satisfying meals. Pasta is generally eaten
with nutrient- dense food partners, such as fiber –filled vegetables and beans, heart healthy fish
and monounsaturated oils, antioxidant-rich tomato sauce and protein-packed cheese, poultry and
lean meats.

Carbohydrates like Pasta provide glucose, the crucial fuel for your brain and muscles. Pasta is an
excellent source of complex carbohydrates, which provide a slow release of energy.

Pasta is very low in sodium and cholesterol free. It is part of a well balanced diet. Current dietary
guidance calls for up to 65% of daily calories to come from carbohydrates. Pasta has also a low
glycemic index so it does not cause sugar in the blood to rise quickly.

10.2 Olive Oil

Olive oil is a natural juice which preserves the taste, aroma, vitamins and properties of the olive
fruit. Olive oil is the only vegetable oil that can be consumed as it is.

The beneficial health effects of olive oil are due to both its high content of monounsaturated fatty
acids and its high contents of anti oxidative substance. Studies have shown that olive oil offers
protection against heart disease by controlling bad cholesterol (LDL) levels and raising good
cholesterol (HDL).

Olive oil is very well tolerated by the stomach. In fact, olive oil’s protective function has a
beneficial effect on ulcers and gastritis. Olive oil activates the secretion of bile and pancreatic
hormones much more naturally than prescribed drugs. Consequently it lowers the incidence of
gallstone formation.
10.3 Fixed Assets (Listing and pictures of fixes assets prototypes)

 Listing of Fixed Assets

List of Items Amount (Rs)

2,2
Pasta Machines 61
Commercial Gas stoves, ovens and 33,1
rangers for kitchen 65
75,3
Commercial refrigerator and freezer 75
15,2
Commercial steam kettle 86
2
Commercial cheese grater 26
3,7
Commercial meat slicer 08
12,0
Commercial Juicing machine 60
33,1
Commercial dishes: plates and glasses 65
Commercial knives, mixing bowls and 50,0
other accessories 00
8,4
Electronic point of sale machine register 12
38,0
Computer Set with CD-RW and Printer 00
75,0
Commercial cabinets, chairs and tables 00
350,0
Motor Vehicle 00

696,6
TOTAL 58
 Pasta Machines

Commercial Gas Stoves and

Oven

Commercial refrigerator and

freezer

Meat Slicer

Commercial Juicing Machine

Cheese Grater
10.4 Forecasted Staff Costs
Year 1 Year 2 Year 3
(Rs) (Rs) (Rs)
Manager/Owner 25000 26250 27563
Human Resource/Marketing Clerk 15000 15750 16538
Chef 15000 15750 16538
Dietician / Consultant 10000 10500 11025
Cashier/Receptionist 7500 7875 8269
Waiter 7500 7875 8269
Waiter N/A N/A 7500
Cleaner/Attendant 4500 4725 4961

10.5 Curriculum Vitae (CV) of owner

DIVYATA NAGGEA
KEY ATTRIBUTES

 Strong result-oriented helps me to siphon off unproductive activities and focus on the key
performance areas.
 Ability to take initiative and consummate the same successfully by handling the
responsibility properly.

PERSONAL INFORMATION

Name: Divyata NAGGEA

Nationality: Mauritius

Gender: Female

Date of Birth: 25.12.1991

ID Number: N2512911900168

Address: Naggea Road, Baramia, Rose-Belle

Phone Number: 627 4135

Cell Number: 780 9870

Email Address: krish_kdn@hotmail.com

EDUCATION

 London College of Accountancy

ACCA qualified member with the Association of Chartered Certified Accountant

 University of Mauritius

Bsc (Hons) Business Statistics with Economics

Entrepreneurship Courses

 Queen Elizabeth College

Cambridge Higher School Certificate

Advanced Level:

Accounting A

Economics A

Mathematics A

Advanced Subsidiary Level:

General Paper A

French A
  Loreto College Curepipe

Cambridge School Certificate

Economics 1

Mathematics 1

Computer Studies 1

Principles of Accounts 1

French 1

Additional Mathematics 2

PROFESSIONAL EXPERIENCE

1. Audit Trainee at Grant Thornton, an international firm of Chartered Accountants, where I

have been trained to audit financial statements of companies.
2. Marketing department at Toys R Us where I have been exposed to marketing techniques
3. Elite Voyage Travel Agency as receptionist where I have principally developed my
communication skills
4. Trainee at the Mauritius Revenue Authority where I acquired some knowledge of tax and
finance administration.

ACHIEVEMENTS AND PARTICIPATION

 2009 - First Prize in Mon Tresor Award 2008

 2009 - Participation in Bank of Mauritius Award on the occasion of its 40th Anniversary
"Mock Monetary Committee Competition" (Results not yet out)
 Participation in various dance competition at National Level
SKILLS

 Communication and presentation skills

 Leadership qualities
 Proactive and innovative
 Innate aptitude of knowledge sharing
 Computer literate
10.6 Questionnaire Issued during the Market Research
10.7 Sales Forecasts
Year 1

Februar Septembe Novembe Decembe

Month January y March April May June July August r October r r Total

Forecasted average sales per day 40 45 50 55 60 65 70 80 90 90 90 125

Forecasted average sales per month

(assuming 30 days operation per month) 1200 1350 1500 1650 1800 1950 2100 2400 2700 2700 2700 3750 25800

Average selling price (meal) 96 96 96 96 96 96 96 96 96 96 96 96 96

Average Sales Receipts on meals 115200 129600 144000 158400 172800 187200 201600 230400 259200 259200 259200 360000 2476800

Average selling price (fresh juice) 30 30 30 30 30 30 30 30 30 30 30 30 30

Average Sales Receipts on fresh juice 36000 40500 45000 49500 54000 58500 63000 72000 81000 81000 81000 112500 774000

FORECASTED TOTAL SALES VALUE 151200 170100 189000 207900 226800 245700 264600 302400 340200 340200 340200 472500 3250800
Year 2

Februar Septembe Novembe Decembe

Month January y March April May June July August r October r r Total

Forecasted average sales per day 85 80 85 85 85 90 90 90 90 90 110 130

Forecasted average sales per month

(assuming 30 days operation per month) 2550 2400 2550 2550 2550 2700 2700 2700 2700 2700 3300 3900 33300

Average selling price (meal) 102 102 102 102 102 102 102 102 102 102 102 102 102
Average Sales Receipts on meals 260100 244800 260100 260100 260100 275400 275400 275400 275400 275400 336600 397800 3396600

Average selling price (fresh juice) 32 32 32 32 32 32 32 32 32 32 32 32 32

Average Sales Receipts on fresh juice 81600 76800 81600 81600 81600 86400 86400 86400 86400 86400 105600 124800 1065600

FORECASTED TOTAL SALES VALUE 341700 321600 341700 341700 341700 361800 361800 361800 361800 361800 442200 522600 4462200
Year 3

Februar Septembe Novembe Decembe

Month January y March April May June July August r October r r Total

Forecasted average sales per day 100 90 95 95 100 100 110 110 115 120 130 140

Forecasted average sales per month

(assuming 30 days operation per month) 3000 2700 2850 2850 3000 3000 3300 3300 3450 3600 3900 4200 39150

Average selling price (meal) 110 110 110 110 110 110 110 110 110 110 110 110 110
Average Sales Receipts on meals 330000 297000 313500 313500 330000 330000 363000 363000 379500 396000 429000 462000 4306500

Average selling price (fresh juice) 35 35 35 35 35 35 35 35 35 35 35 35 35

Average Sales Receipts on fresh juice 105000 94500 99750 99750 105000 105000 115500 115500 120750 126000 136500 147000 1370250

FORECASTED TOTAL SALES VALUE 435000 391500 413250 413250 435000 435000 478500 478500 500250 522000 565500 609000 5676750
10.8 Diagrams of Product Prototypes

i. Fusilli

ii. Lasagna
iii. Macaroni

iv. Penne

v. Ravioli
vi. Spaghetti

vii. Tagiatelle
viii. Tortellini