JHON-G

Lounge
Made By:
SANGRAM KESHARI SAHOO
11814525
Q1852
 IDEA:
• To open a lounge with name “JHON-G” which would serve ‘Hookah’,
‘Foods’ and ‘Beverages’.
• JHON-G would be based on a theme of “GO GREEN” with a tag-line of
“NOT ADDICTED BUT COMMITED”.
Customer Segment:
• Students of AMITY
• Students of BBDU
• Students of LU
• Local people

Total Population - 10000

Target Population – 5000
Number of Competitor – 03
Timing – 10 am to 8 pm
Total Customer in one day - 200
Value Proposition:
• Theme based
• Great music experience
• Fresh food
• Special events on weekends
• Wi-Fi
• No alcohol
• Online food delivery
• Quality of service engagement
Channels:
• Facebook page – JHON-G Lounge
• Instagram page – jhon-g-official
• Pamphlets
• Website – https://jhon_g.com
Customer Relationship:
• Through social media
• Through website
• Through SMS
• Gathering customer feedback
• Sharing customers shoots on our social networking pages
• Giving exciting offers
• Maintaining the data of all the customers
 Revenue Streams:
• Hookah (300) Hookah
• Food per person (60)
• Online delivery (100)
• Weekend Event Passes (200) Food

Weekend Passes
Online Orders
Key Activities
• Music and Poetry by Customer
• Hosting parties
• Interacting with customer
• Everyday Menu
• Weekend Parties
 Key Resources
• Attractive Hookah Pots
• Variety of Flavours
• Freshly Prepared Food
• Lively Music
• Well trained employees
• Security Surveillance
Key Partners
Food

Best Price
• Bakers Chinhat
Bakers
• Beverages Partner
• Hookah Flavour Partner
• Local Vendors Hookah

Hazratganj
(Hookah wali Gali)
For Flavour and coal
Cost Structure
• For Hookah For Food 1 hour One Day Monthly Yearly(10 month)
• 600*460*103000 30000900000 9000000
• Area = 2500sqft
• Rent = 70000 for two months
• Interior = 350000
• Hookah Flavour = 960*30 days
• Raw Material = 40000
• LPG = 6000
• Electricity Bill + Cleaning Cost = 5000+3000 = 8000
• Trade Licence + FSSAI = 1500+8000 +10000
• Salary = 20000*5
• Total Investment = 645000

• 1.5 % of 9000000 = 135000

• 900000-645000 = 255000
• 255000>135000
Situation Analysis

Above table is for Market Size and the left table is for Market
growth. As mentioned in above table 21.4% of population will
be our customer as that value is from the targeted population .
Left table projects the annual growth in smokers who would be
again potential customer in future.
BCG for Hookah Lounge
Competitors Analysis
Customer Analysis
• Who buys and uses the product?
All the age group of smoker population near our location or our target population specifically college student.
• What customers buy and how do they use it?
Customers would come for Hookah, Food and Beverages.
• Where customers buy?
As mentioned there are few competitors of our business where a customer can go.
• When do they buy?
Specifically during the college time the rush would be more, i.e. from 10:00AM to 08:00PM.
• How do they choose?
Based upon our theme based concept for lounge and our marketing would let them to choose.
• How do they respond to marketing programs?
Though the marketing campaign would be mostly Online, so we could reach to many people and the response
would be good if we would give what we promise in our campaign.
• Facebook page – JHON-G Lounge
• Instagram page – jhon-g-official
• Pamphlets
• Website – https://jhon_g.com
• Will they buy it again?
Surely they would come for the same, because of the best experience in the same segment of price.
Marketing Objectives
• Acquire the best population of the area.
• Increase the average sales order per day.
• Increase customer engagement which would be each customer should visit in every week.
Marketing Mix Product Strategy: As we will be placing the same product as our
competitors but we are having three different segment in that
in the form of different sizes.
Foods and Beverages would be best in class with fresh
ingredients.
Weekend events for the fun with limited passes which would
be distributed one week prior to the event.
Promotion Strategy: Promotion of smoking through
advertisement is not allowed, so made banner for the local
promotion and posts through social media via Instagram,
Facebook.
Making of pamphlets for the distribution near the target area.
Our area is AMITY University, so promotion is through
pamphlets and social media. Later the advertisement could be
WORD OF MOUTH.
Pricing Strategy: Keeping the same price as of competitors, i.e.
we would be giving other things which is not given by
competitors in the same price.
Hookah would be ranged from Rs.400 to Rs.600 and food items
would range from Rs.100 to Rs.150 in an average.
Placing Strategy: Lucknow is the first targeted place where the
lounge would be opened, with keeping the target market in
mind. Inventory would be there in the Lounge for keeping the
hookah flavors, foods and beverages items.
Marketing Strategy
Market Segmentation : JHON-G Hookah Lounge has determined the following market segmentation for potential
customers:
College Residents: College students who seek an alternative to bars and parties on their campuses seek out
different experiences. Hookah bars provide such an experience because of their exotic ambiance, colorful
atmosphere, focus on group dynamics, and the element of danger/risk provided by smoking. Furthermore,
those between the ages of 18 and 21 can frequent hookah bars while they cannot go to many bars that serve
alcohol.
Young Professionals: 22-35 year-old professionals who are tired with bar culture sometimes react against it by
looking for other activities. They seek locations where they can congregate with friends, talk, and share a new
experience. However, they are turned off by hookah bars with a high percentage of college age customers.
Market Targeting
The lounge grand opening will be marked by an event featuring live music, free food and drink offers.
After the launch, promotional incentives for customers will be advertised on the website, social media
pages, and in the store for:
• Group discounts
• Free prizes for winners of business card drawing (to encourage target market of young professionals)
• Incentives to organize the first events via the website (such as free rounds of tobacco for the
organizers at a later date)

Market Positioning
• Organize groups to attend Jhon-G Hookah Lounge together
• Plan events to propose for the Jhon-G Hookah Lounge calendar
• Send out invites for these events
• The party-like atmosphere at other hookah bars does not allow for easy conversation and for
performances and events of the type expected at Jhon-G Hookah Lounge.
Marketing Budget

The above budget should be allocated to the marketing as this covers the maximum area to promote
the new business.
Pamphlets would be distributed among the targeted segment and banners would be placed at key
places so that it catches the attention of people.
For promotion of new lounge free hookah and food would be served on the launch day to the
customers.
Operational Plan
Objective of Operational Plan:
1. Regular supply of products for daily business.
2. Making and serving hookah.
3. Making and serving food & beverages.
4. Planning for weekend events and executing it.
5. Distribution of passes to the interested people.
Service Blue Print
Floor Layout of Lounge
Quality Standards
• Environment Management System
A system compliant to ISO14001is a management system dedicated to manage the environmental
issues of an organization.
 
• Occupational Health & Safety Management System
OHSAS18001 is a globally recognized standard for occupational health and safety management system
and defines the health and labor protection system of an organization. An OHSAS18001 certification
establishes an organization's commitment to provide a safe working environment to protect
employees & other concerns.

• Hazard Analysis and Critical Control Points (HACCP)

HACCP is a scientific approach to identify hazard in a food system and apply the result in eliminating or
controlling them to ensure that the food is safe for customers.

• Food Safety and Standards Authority of India (FSSAI)

Food Safety and Standards Authority of India is an autonomous body established under the Ministry of
Health & Family Welfare, Government of India. The FSSAI has been established under the Food Safety
and Standards Act, 2006 which is a consolidating statute related to food safety and regulation in India.
Desired Outcome
1. Making profit - We aim towards making good profit to sustain in the
market.
2. Giving Satisfaction to the customers – As we have theme based lounge,
we believe it would be satisfactory to the customers and the service we
provide would also satisfy the customer.
3. Increase customer regularity – With best in class service to the
customer, we believe to increase the regularity of customers to visit us
again and again.
Staffing and resource requirement
Legal Compliance and Ownership
Type of Ownership: Partnership
Why?
A partnership firm in India is governed by The Partnership Act, 1932. Two or more people can form
a Partnership subject to maximum of 20 partners. A partnership deed is prepared that details the
amount of capital each partner will contribute to the partnership. It also details how much
profit/loss each partner will share. Working partners of the partnership are also allowed to draw a
salary in accordance with The Indian Partnership Act. A partnership is also allowed to purchase
assets in its name. However the owner of such assets are the partners of the firm. A partnership
may/may not be dissolved in case of death of a partner. The partnership doesn’t really have its
own legal standing although a separate Permanent Account Number (PAN) is allotted to the
partnership. Partners of the firm have unlimited business liabilities which means their personal
assets can be attached to meet business liability claims of the partnership firm. Also losses
incurred due to act of one partner is liable for payment from every partner of the partnership
firm.

Also, in starting of any venture if someone don’t have enough capital to build its own establishment
then they should go for partnership. Though, it is matter of trust in this and everyone in
partnership has equal rights.
Legal Compliances:
Eligibility for license:
• The majority of your space must be given to the restaurant in
comparison to the hookah lounge.
• CCTV’s  are able to store footage for up to 3 months.
• Food license should be one year old.
• No educational institution, hospital, school or place of worship should be
in the area of particularly 5oo meters.
• It cannot be served to persons below the age of 18.
• NOC has to be taken from the neighbours of that place.
License Required for Incorporating Hookah Bar
• Business Registration
• Trade License: It is mandatory to obtain Trade License for opening a Hookah Bar from the
Municipal Corporation or Health department of the concerned state
• Shop and Establishment License: In order to protect the working condition and rights of the
employees, it is mandatory to obtain a License from the State Chief Inspector the
Department of labour.
• Fire Safety License: It is mandatory to obtain a Fire permit from the fire department permit if
your business involves any kind of flammable material or if premises are open for public visit.
• Music License: For playing music it is mandatory to obtain a license from Phonographic
Performance Limited or Indian Performing Right Society.
• FSSAI License: As per law it is mandatory for every food business to get registered or take a
license from the FSSAI department. Whether to take registration or License it will depend
upon the type of food you are going to serve with Hookah Bar License.
• Staff License and Labor Registration: It is mandatory to obtain Labor registration and license
for the staff depending upon the number and category of Staff.
• Pollution Certificate: It is mandatory for every establishment before commencing its activity
to obtain No Objection Certificate from the State Pollution Control Board.
The Finance Plan
Financial objectives
• The business is expected to grow significantly in its first year and
there after as it meets the market need for an alternative to local
youth-oriented hookah bars. Growth to a second location will occur in
the fourth or fifth year, financed by the cash reserves of the business.
• To be more profitable from the 2nd month of operation.
• JHON-G will be solely financed and no equity funding or outside loan
will be required unless the business expands faster than forecasted.
START-UP COSTS FOR YEAR
Cont….
Cont….
TOTAL COST INCLUDING START-UP COST AND
EQUIPMENTAL COSTS

This is the over-all cost or capital required for starting the business.
SALES FORECAST
• According to IMF the inflation rate for 2020 is 4.1% from the last years
3.44%.
• But seeing the current scenario of India and whole world, I have taken
the inflation rate to ~3% in the sales forecast of next 5 years.
• Though the inflation calculation may vary in some but the value won’t be
greater than 3%.
BALANCE SHEET FORECAST
PROFIT AND LOSS FORECAST
Profit and Loss Forecast:
• The year on year growth is taken at 3% which is already explained in
growth rate of the business.
• This is how we have taken the increased value year after year.
• Keeping all the inflation in every sector, the relevant growth is taken and
price is taken respectively.
• The tax value is taken at 28% as for tobacco the tax slab is 28%.
• The tax calculation is made after deducting the expenses from the gross
profit.
EXPECTED CASH FLOW
BREAK-EVEN ANALYSIS

SP= Selling price of each unit

VC= Variable Cost of each
unit
Break-Even Analysis Graph shows the point of interaction from
where the profit would start.
HR Plan
Human resource forecast
Job Description and Job Specification
Policies and Procedures
Recruitment Process:
Here’s a list of questions for the recruitment process of chef:
• Shopping for products – what should you pay attention to (origin of food, cultivation and breeding practices).
• Various cooking methods.
• Effective use of products in the kitchen.
• Proper product storage.
• Local traditions (recipes and products).
• Replication of tastes and portion sizes.
• A proportion of frozen to fresh products – which situations allow you to use frozen products?
• Cleanliness in the kitchen and stockroom.

Finally, we can ask the candidate to prepare a dish for us that’s within their specialization. This is the best way
to check cooking techniques, efficiency, the organization of work, creativity, knowledge of ingredients and
performance under stressful conditions.
 Cont….

Here’s a list of questions for the recruitment process of a Hookah maker:

• Shopping for relevant hookah pots. – different types and styles is included in this.
• Various type of hookah preparation. – with different types of flavors and bases with the
technique.
• Effective use of products for making hookah. – usability of the resources effectively, like
flavors, coal, bases.
• Cleanliness in the hookah room. – cleanliness of the working place.

We can also ask the candidates to make hookah in efficient time and the team will
observe the process and evaluate for the recruitment.
Leave Policy

• The lounge will be closed on the major national festivals of our country,
list is below:
- 26th January, Holi, Eid, Muharram, Diwali, 15th August, 2nd October, Ganesh
Chaturthi, Christmas.
• 2 leaves per month but cannot be taken on weekends.
• 5 sick leaves per year, once taken one should submit the relevant
document.
• 1 month of non-operational close because of closure of universities near
by during summer.
Code of Conduct:

• We should be customer centric.

• Build trust with customers.
• We should deliver our services with best of our potential.
• We will sell products and services based on their merit, superior quality,
functionality and competitive pricing.
• JHON-G is dedicated to maintaining a healthy environment.
• No misconduct like abusing, misbehaving, harassment, not giving respect
to customers.
• Everyone should be in a proper attire of doing business.
Performance appraisal procedure:
• Performance of each and everyone would be on yearly basis.
• This would include the number of working days and hours monthly to
separate each.
• How well one has done the work in the entire year.
• Who came up with new idea and how well it is implemented.
• Employee need to rate themselves.
• Description about what all amount of work they did in a year.
Disciplinary Actions
• On making 1st mistake verbal warning would be given.
• On making 2nd mistake written warning would be given.
• On making subsequent mistake, the employee might be terminated
based on the mistake made.
• On not following the Code of Conduct laid by business, the employee
might face termination in severe cases.
• Employee might face deduction in salary if taken more leaves as allotted.
• Stringent action on employees who indulges in doing misconduct, like
police complaint.
Perks/Incentive Policy
• Whenever an employee takes the best initiative which benefits business
then that employee would be eligible for 5% of the total profit from that
initiative.
• Weekend food is free for employee, only lunch and dinner.
Employee Career Enhancement Opportunity Policy
• As of now there is no plan for employee career enhancement
opportunity.
• Though when the business will expand and open new branches then
these employees might get chance to manage that lounge.
• Again this will depend upon there work done in past with us.
Training and Development Policy
• Every 6 month, employee will undergo behavioral training.
• Receptionist will go for the training of accounts and bill processing in
every 6 months.
• Chefs would give training to the new chefs if they were hired.
• Personality enhancement training will be conducted in every 6 months.
• Enhancement of communication training in every 6 months.
Thank
You