Business Development Plan:

“Chain Restaurant”
Of
Bhetghat

Submitted To:
Ashish Tiwari
Bishal B. Shrestha
Pradeep Rajopadhaya
Submitted By:
Mahesh Tiwari
MBA term 4
Ace Institute of Management
August 16, 2010

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Acknowledgement

This report has been conducted for the partial fulfillment of our course for the requirement of the
graduate level degree of MBA. The objective of this business plan is to give the real scenario of
the practical life. It encourages the students to have their own venture and give something new to
the society.

My primary indebtness goes to Mr. Ashish Tiwari, Mr. Bishal Shrestha, and Mr. Pradeep
Rajophadya who provides this opportunity and continuously guide and help in each and every
step of this report. Without their coordination and support this work would be incomplete.

This business plan is the result of the continuous effort and hard work. I am very much grateful
to all those who directly/indirectly helped in preparing this business plan. I always believe that
there is always a room for improvement and accordingly I will be looking forward to receive
suggestions, for further enriching the quality of task that I perform.

Finally, I would like to thank to all the people who help me to conduct the research. And I
specially thank Mr. Chetan Bhandari(Bajeko Sekuwa) who provide the related information and
supported me in making this business plan.

Sincerely,
Mahesh Tiwari
MBA 4th term,
Ace Institute of Management

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Copyright @ all rights reserved

No part of this report may be reproduced, stored or transmitted in any form, or by any means,
without the prior permission of BHETGHAT RESTAURANT/ AUTHOR. No patent liability is
assumed with respect to the use of the information, contained therein. Although every precaution
has been taken in the preparation of this report, the authors assume no responsibility for error or
omission.

Date: 15th August 2010,

Ace Institute of Management
Affiliated to Pokhara University

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Disclaimer

The author is confident that the results of the information in this business plan/report will be
taken as guidance of a more comprehensive study on a future date for the concerned field. The
author is not responsible or liable, legally against the results and consequent decisions based on
the response and decisions given from the author. The views and findings that are included are
entirely based on the authors’ personal experience and views.

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Declaration

I, the undersigned, declared that this report entitled is a result of my own research carried out in
the year 2010. It has not been previously submitted to any other university for any other
examination.

Signature,

…………….
Mahesh Tiwari

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Executive Summary

BHETGHAT RESTAURANT is a locally owned well established restaurant in Narayangarh. It

is established in the year 1988 and is the inventor of the product TASS.The unique blend of taste
and the quality that it serves make it different from others. Since 2 decades we are serving in the
local market of Narayangarh with the overwhelming response from the customers. Today the
core product “TASS” invented by the restaurant owner is being popular inside the country as
well as outside the country. Now in order to expand its market and facilitate the people of
Kathmandu valley it is going to open up the chain restaurant in Kathmandu valley. BHETGHAT
RESTAURANT will provide a combination of excellent food at value pricing, with fun
packaging and atmosphere. BHETGHAT RESTAURANT is the answer to an increasing demand
for snack-type fast food, to be consumed while shopping as well as it can be taken as dinner or
lunch.

As we know that location plays a crucial role in the success and failure of the business we choose
to established our restaurant in the area from Tinkune to Bansewor. For this we will be spending
about Rs 70laks. Among it 40 lakhs will be funded from the owners pocket and rest will be taken
from the bank. Since from the 2 decades we are involved in the restaurant business we believe
that our experience and our manpower involved in it will be our greatest assets.
Our main priority is to make our core product TASS familiar to the residents of Kathmandu and
to expand our business. We will be focusing our product to the working class people as well as
youngsters, as we believe that they are the one who wants quality and taste in the reasonable
price. For this we decided to keep the price Rs 120 per plate which is a bit cheaper than the
existing market. But we think that we can make profit in this rate also. Later, our effort will be a
further development of more retail outlets in the surrounding area with the third year of
operation.

For advertisement of the product we will be spending about Rs1000000 in the advertisement
from national daily to the visual ads in the national television. From our experience we say that
until and unless we cannot cross the daily sales of Rs 50000, we can no more make profit of Rs
2000000 per year.

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Table of Contents

Acknowledgement i
Copyright ii
Disclaimer iii
Declaration iv
Executive Summary v
1. Company Description 1
1.1 Objectives 2
1.2 Mission 2
1.3 Key to success 2
2. Company Description 4
2.1 Company Ownership 4
2.2 Start up Summary 4
2.3 Company Locations and facilities 4
3. Products 5
3.1 Product description 5
3.2 Competitive Comparison 5
3.3 Sales Literature 6
3.4 Sourcing 6
3.5 Future Products 6
4. Market Analysis Summary 7
4.1 Market Segmentation 7
4.2 Target Market Segmentation Strategy 8
4.2.1 Market Needs 8
4.2.2 Market Trends 9
4.3 Industry Analysis 9
4.3.2 Trends in food service retail 10
4.3.2 Competition 11
4.3.3 Main Competitors 11
5. Strategy and Implementation Summary 13
5.1 Competitive Edge 13

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 5.2 Marketing Strategy 13
5.2.1 Pricing Strategy 14
5.2.2 Brand Challenges 14
5.2.3 Marketing Programs 14
5.2.5 Positioning Statement 15
5.3 Sales Strategy 15
5.4 Strategic Alliance 15
5.5 Milestones 15
6. Management 16
6.1 Management Team 16
6.2 Organizational Structure 17
6.3 Personal Plan 17
7. Financial Plan 18
8. Critical risk and contingencies 22

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 1. Company description

BHETGHAT RESTAURANT is a well renowned restaurant in the Narayangarh. It is established

in the year 1988. It is mostly famous for its TASS. The taste and service that it provides makes it
different from others. The core product of my restaurant is TASS, which is made up of mutton
meat. Besides it also serves various mutton varieties as well as momos. The product name TASS
was named by Mr. Govinda Prasad Tiwari(owner of the restaurant). He is the one who created
the product and marketed it. Today the product is getting popular day by day. Not only inside the
country but outside the country. Even if we talk about the Kathmandu valley we can found many
restaurants saying Chitwan ko tass or Narayangarh ko tass. And if we talk about the market
response about the product we are the market leader. Since from the establishment date to till
now we left all our competitors far behind in Narayangarh. This can also be proved by the survey
conducted by the “NEPAL MAGAZINE” in the year 2008 a part of Kantipur publication which
puts us in the Nepal’s top 10 best place to eat outside valley. So this encourages us to remain in
the business and expand this business further. So my idea is to establish the chain restaurant of
BHETGHAT RESTAURANT in Kathmandu valley.

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 1.1 Objectives
• To establish a presence of a successful restaurant in Kathmandu valley and gain a market
shares in the restaurant business.
• To continue providing highest quality of food and service to the customer.
• To make people aware about TASS and its taste.
• To make Bhetghat Restaurant a destination spot for mutton lovers.
• To expand into a number of outlets by year three, and expand the business territory.
• Maintain and expand my outstanding reputation.

1.2 Mission
Our main goal is to be one of the most successful restaurants in the Nepalese history by
establishing the highest number of chain outlets inside the country. Customer satisfaction
and education are our paramount missions. We will endeavor to meet the highest standards of
excellence through superb customer service and consistent product delivery in a friendly and
comforting environment.

We seek fair and responsible profit, enough to keep the company financially healthy and ensure
continued growth and development. Responsible profit will fairly compensate owners and
investors for their risk and reward employees for their hard work, loyalty and commitment.
Employee welfare, participation, and training are equally important to our success. Every
employee will be treated fairly, with dignity and the utmost respect. It is our responsibility
to provide employees with a friendly, comfortable and challenging work environment with
opportunities for growth and development.

1.3 Keys to Success:

• We are the inventor of the product TASS.
• No one can make better than we can in terms of taste. Our taste is superior than others.
• We are the market leader as well as we only have the formula of ingredients to be mix up
in making TASS.
• We have the 22 years of experience in making this product.

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• Till the date of establishment to now we have consistency in taste and quality of food that
we deliver.
• We have no complaints regarding the quality and hygiene.
• From our experience we can understand our customer’s choice and their wants.
• Provide 100% satisfaction to our customers and maintaining the level of excellent
services among other competitors.

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 2. Company description

2.1 Company Ownership

BHETGHAT RESTAURANT is a privately owned company registered as a sole proprietorship.
So everything expenses that will be occurring in opening up a new venture will be incurred by
the owner itself. There will be no partnership involved.
Reinvestment of earnings will be the backbone of this business after start-up and will ensure
future growth and achievement of the company's goals. A second and possibly third round of
private investment may be considered to aid the company's expansion plans in years two and
three of operations.

2.2 Start-up Summary

Start-up expenses and assets are shown below, and the majority of these funds will be used for
interior design, furniture’s, utensils and to pay rent for three months prior to opening. No legal
costs will be incurred rather than taking license from the Municipality, Small and Cottage
industry as well as Company registered office. Start-up assets include first time investment for
the furniture. Purchases of equipment assets such as kitchen equipment including gas stoves,
utensils and other necessary items, ambient display cases, refrigerators and freezers
and miscellaneous one-time furnishings are necessary. The company anticipates the need for
liquid cash for operating expenses, unforeseen company expenses and to help cover wages for
the first three months of business.

2.3 Company Locations and Facilities

Talking about the location of the restaurant, it will be located in corporate area where we can
have plenty of parking spaces. So it will be located in Tinkune or Baneswor area. The
restaurant must have the space of about 5000 sqft where 100 peoples could enjoy their dinning.
We will equip the restaurant with modern furniture and aim for cleanliness and an open feeling.
We are currently looking at several possible sites in the valley. All of these qualities are
consistent with BHETGHAT RESTAURANT‘s goal of providing a top quality fast food

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experience. We want "word-of-mouth" to be our best form of marketing, where our customers
value our brand as something exciting and cannot wait to tell their friends and neighbors.
3. Products

We have the experience of making the mutton varieties, so we will be serving mutton as well as
chicken items. As we are renowned in the market because of TASS, we will be focusing on our
core product TASS. Not only this we will also be serving chicken items. We will serve our
customer with various domestic as well as international alcoholic drinks so that customer can
have quality time in our restaurant we will offer various merchandise with our logo and colors,
from hats to t-shirts to our core product ,so that our customers can enjoy TASS at home.

3.1 Product Description

BHETGHAT RESTAURANT is primarily selling TASS and mutton MOMO since 2 decades in
Narayangarh and we will continue it in Kathmandu valley also. Along with this we will
facilitate with chicken varieties. Main products sold will be: mutton TASS and MOMO. Making
mutton TASS is not an easy job. It includes hard work and the right combination of more than
25 various ingredients. After the mixture of the ingredients we need at least 3 hours of deep
freezing for the better taste, and then we have to cook at 300 degree centigrade.

3.2 Competitive Comparison

BHETGHAT RESTAURANT has several advantages over its leading competitors:
• Inventor of the product. So the composition to be mixed up is only be known by us.
• Market leader since its establishment.
• It has got the formulae of ingredients to be mixed up in making tass.
• Well renowned.
• Superior taste than any other competitors.
• Experience of 22 years in making the product.
• Understand customer demand and choice easily.
• High customer satisfaction rate.
• We provide better quality, fresh and hygienic food in the cheap price than any other.
• We expect a high degree of enthusiasm and offer a fun store with friendly staff that
reflects the company's youthful and energetic culture.

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3.3 Sales Literature
BHETGHAT RESTAURANT will use advertising and sales programs to get the word out to the
customers. Since it is already recognized business but we are opening up the outlet in
Kathmandu valley we need aggressive marketing of the product.
• Front page advertisement in the leading newspaper “Kantipur daily” 1 time a week for a
month. Similarly 10,000 color brochures to be distributed throughout destination shopping mall
and facilities: in-store, cinemas, area eateries for making people aware about the product TASS.
• Similarly putting banners and hoarding boards in the places like Maitighar, Thapathali,
Kantipath, Jamal and so on.
• Making a visual ad and broadcasting it in the leading television channels.

3.4 Sourcing
For making the TASS we need mutton meat. For this the “khashi” must be young and should
not cross the age of 1 year. And this type of khashi is difficult to be available in our market so
we need to bring it from india. Actually we need to bring it from the place called varganjh 300
km away from gorakhpur. We have our own channel involved in all this process in
Narayangarh. So we will continue with it in Kathmandu also. For this we have to provide a
place to our vendor in Kathmandu for processing and he will deliver what the type of product
we want.

3.5 Future Products

For now, we will focus on selling our core product TASS and MOMO. However, as we grow
further, we will add new categories to our menu, such as Beakfast, Lunch, Dinner as well as
Chinese and continental dishes also.
In the future, our growth strategy will be opening up the restaurant in major cities of the country
as well as opening up off highway restaurants also.

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 4. Market Analysis Summary

Looking at the trend of consumers expenditures for fast food in Kathmandu valley gives the
positive vibes to open up the restaurant. The increasing number of new establishments such as
fast food franchises, fancy restaurants and gourmet bakeries has shown a significant growth in
this sector. Today due to the busy life most of the people prefer to eat in the restaurants. The only
thing we need keep in mind is quality with the value for their money. So for this we will be
focusing to all type of age groups people.
• Age - Youngsters, single, currently enrolled in college and high school.
• Family unit - We will also appeal to families (young families) with children.
• Gender - We will target both sexes, with a slight skew for males due to their lower
attention to dietary concerns.
• Income - We will appeal to the medium income individuals and to all in the lower
medium income bracket.

According to a recent public survey of people 15 - 45 years old, 80% of those interviewed like
fast food. 90% of them like fast food on a regular basis, and 10% of them claimed that they like
fast food "very much," or "love" fast food. The survey also provided the following particular
reasons for the increasing popularity of fast food:
• Most of peoples love to window shop, and when they do strolling around the shopping
district, they need a quick bite to accommodate their activities.
• Eating out is being a trend for the people of Kathmandu. They now think it is a part of
life. They do perceive fast food restaurant is a best place to enjoy with friends and relatives.

4.1 Market Segmentation

We are targeting middle class people as well as office going peoples will be our primary market.
For this Tinkune is the best place for the restaurant to meet and hang out. Tinkune is near to the
international airport as well as a minute distance drive from Baneswor. So people working in the
international airport from executives to officers will be our target customers.
Our secondary market segment is the "Working peoples." With so many places in the valley,
Baneswor is the appropriate place for the young people as well as working peoples. Most of the
offices as well as corporate houses are located in this place. So we had the better chance of

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success in the business, but we also need to face tough competition. It is found that there are
almost 25 big to small restaurants including bakery café’s which will be serving somewhat
similar to our products.

4.2 Target Market Segment Strategy

BHETGHAT RESTAURANT intends to cater to the bulk of working class people as well as
youngsters in kathmandu. We have chosen this group for several important reasons. It is our goal
to be "the extraordinary fast food restaurant" and we believe that the age group from 20+ and
above is the primary age where brand building efforts could take place. They are on limited or
fixed incomes and seek a value/price relationship that will not stretch their budgets.

Our secondary target is between the ages of 25 and above, which are a heavy lounge/restaurant
user group. They are more flexible in budgets and seek more than a value/price relationship.
Our strategy is, we are featuring MUTTON TASS to fill people’s craving for fast food as most
ideas of lunch as well as snacks.

Second, we want to keep the price point at lunch as fair as possible to keep us in competition
with other fast food outlets. At Rs 120 per plate, we are only slightly below the segment, but we
offer much more excitement than the rest of the competition.

4.2.1 Market Needs

A recent Consumer Trend and Analysis identified the following needs among our target
markets. Our core group:
• Wants variety and flavor in its food, preferably something chilly and spicy.
• Looks for speed of service
• Wants an entertaining and fun experience
• Insists upon a clean, friendly, and attractive environment
• Adopts a global lifestyle
• Enjoys eating out
• Wants best food in a cheap price.

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 According to a Report published from various organizations Kathmandu valley solely
consumes 40% of the meat products in Nepal. It includes buff,chicken,mutton,and so on.
This is caused because of the huge population of the valley as well as trend of eating outside
in a restaurant. Similarly this is also caused by the increasingly younger demographic and
rising incomes throughout Kathmandu valley that have led to lifestyle changes that are
influencing consumer purchases, food, and entertainment choices. Some changes taking
place include a larger professional class along people along with working women, which
mean greater disposable incomes.

4.2.2 Market Trends

In the past, most of the people prefer vattis as well as newari khaja ghar as the place to hang out.
But these trend is being changed recently. People prefer restaurants, pubs, bars, cafes these days.
The success of locally grown brands such as ALINA’S BAKERY CAFÉ’S, BAJEKO
SEWUKA,AIRPORT SEKUWA and so on gives the better picture of the people shifting towards
these places. Similarly most of the Nepalese still prefer for the chilly and spicy food. They want
something twakka tukka that could give better taste for their tongue. In this scenario TASS could
be the best option for them.

Though many restaurants have already been opened in the valley for providing the same service
that we serve but we are not afraid of it. Because we still believe that we can serve in the better
way than others in terms of quality, service, and ambience. Today also if we visit the airport side
then we can find many restaurant providing these type of services and huge mass of crowd
waiting to be benefited. The crowd found in those restaurants still proves that there is the
opportunity for this type of restaurants.

4.3 Industry Analysis

Despite the prolonged effects of the Economic Crisis followed by political turmoil in our country
food service industry witnessed growth every year. Much of this growth was contributed by the
cafes/bars, fast food, and food retail sectors, whose wide appeal amongst a young population, for
whom time is of a premium, led to high levels of growth. This growth is underpinned by market
demand and lifestyle changes, such as seeing eating out as part of trendy lifestyle.

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Entry of big restaurants, pubs, cafes into the major destination places like Durbargmarg,
Baneswor,Jawalakhel and so on led to the growth in competition in the marketplace, mainly
from fast food chains. This stimulated the rise in the number of fast food units, both of
international and local chains that started recently. Although there was a slowdown during the
maoist insurgency, the food service industry recovered faster than others, particularly after the
peace process.

Franchising became popular in the food service industry through the introduction and entry of
multi-national food service brands, primarily U.S.-owned enterprises, such as KFC, and Pizza
Hut .Currently, there are many local chains that have also experienced growth by applying this
system to their operations, as for the example Bajeko sekuwa, Alina’s bakery café, Road house
café, and so on.

4.3.1 Trends in Food Service Retail

According to government surveys, people’s spending on "eating out" is continuing to increase.
Spending on cooked food as a percentage of total average food-spend is increasing day by day.
The growth in spending in the food service sector arises from a number of factors:
• Increased affluence amongst people, especially those under the age of 40 years.
• Increases in the number of outside residents.
• Increased convenience-seeking amongst working class people who live in a hectic city
today compared to the much slower pace of life that existed 20 years ago.

When they want convenient cooked food, then they could hardly find. Because of the huge
newar residents in Kathmandu valley everywhere we find the Newari restaurants who serve buff
items only. But for Brahmins it’s being difficult as they prefer mutton varities. So opening up a
restaurant which provides pure mutton varities along with other varities will be the additional
benefit.. As the numbers and variety of food service outlets has increased in Kathmandu valley,
locals have adopted the convenient products of other food service outlets, especially the fast food
outlets, as alternative sources of convenient cooked food. Younger middle and upper income
group families and individuals are also frequent users of the full service restaurants, modern-
style coffee shops and cafés that now exist all across valley.

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Over the past 5 years, there has been a general upgrading in the food service sector which has
seen the establishment of more air conditioned food centers (food courts) that are considerably
cleaner than the traditional hawker markets. At the same time, increased investment from foreign
and local businesses in the sector has also produced an increase in the numbers of:
• Foreign chains, including chains such as KFC AND PIZZA HUT.
• Modern retail bakery/café outlets such as ALINAS BAKERY CAFÉ, ROAD HOUSE
CAFÉ and so on..
• Modern coffee shops.
• Domestic chain restaurants such as BAJEKO SEKUWA, AIRPORT SEKUWA and so
on.

4.3.2 Competition
The competition in this arena is the fiercest. Kathmandu is a compact city, but has a lot to offer.
Usually there are a minimum of two to three of restaurant outlets within a radius of less than 300
meters. For instance, if we talk about Baneswor and Durbargmarg we can find 3-4 restaurants in
the same building. One restaurant in one floor and other in the next floor. Due to the high volume
of population and limited space in the Kathmandu valley it is quite common.

Another reason is because many retailers do not want to lose sales opportunity, as the
competitors are offering substitutions and similar product categories. This phenomenon has made
Baneswor and Durbargmarg as well as Kumaripati the best place to eat.

4.3.3 Main Competitors

Our main competitors in this segment are food outlets within the 1000 meter radius along the
Baneswor Road. In our location, there are Alina’s bakery café,Rosemary café,Indreni food land,
Bajeko sekuwa,Siddarth food land, Lama sekuwa corner, prem sekuwa corner .

A. Alinas Bakery Cafe

Alina’s Bakery Café is locally owned franchise having the largest chain outlet in Kathmandu
valley. It has got around 12 outlets and it one of the well reputed Café Since from the
establishment it is serving Chinese Indian and continental food along with Newari khaja’s.

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 B. Rosemary café;
Rosemary café is also a locally owned café. It is established in the year 2061. It is popular among
teenagers because of the quality and price of the café. It also serves Chinese, Indian,continental
as well as local foods also. Rosemary café is a good place to hang out, and the place is always
full during lunch hour. It has more than enough tables to serve a maximum of 125 guests. Its
specialty is all-you-can-eat pizza!

C. Bajeko Sekuwa
Bajeko sekuwa is one of the well established and reputed restaurant in Kathmandu valley as it
has 7 outlets.Since from the establishment in the year 2047 it is serving mutton sekuwa and
mutton varities. Our core product Mutton Tass and sekuwa is somewhat similar so to compete
with already established brand is a big challenge for us.

D. Lama Sekuwa Corner

Lama sekuwa corner is also one of the reputed restaurant in the restaurant industry. It is located
in sinamangal and serve both mutton as well as buff varities. But the ambience and hospitality of
lama sekuwa corner is not upto the mark.

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 5. Strategy and Implementation Summary

At first, we will open one outlet in Tinkune area or Baneswor area. This will become our "market
testing area," and as we go further in near future we will open up in other places also. In
attracting customers to try our TASS, we will provide a see-through kitchen, so that people will
see how we are committed to freshness in our products.
The kitchen will also let out an aroma of our freshly fried fries into the surroundings area, so that
people will come and try our products.

5.1 Competitive Edge

• Our unique and tongue licking taste blend with local flavor gives value to the customer.
• Enthusiastic and friendly staff
• Supporting merchandise items that support company's brand building.
• Our TASS are made of 100% fresh meat, unlike the frozen meat used by competitors.
• Innovative ingredients mixed with 25 varities of masala will position us in the different
level than competitors.

5.2 Marketing Strategy

Our strategy is based on serving our markets well. We will start our first outlet as a "market
tester" that could become a model of the expanding number of outlets in the future.
Concentration will be on maintaining quality and establishing a strong identity in the local
market.

A combination of local media along with national media will be utilized. Local media marketing
is most effective, followed by print ad. As soon as a concentration of restaurant is established in
a market, then broader media will be explored. We believe, however, that the best form of
advertising is still "buzz." By providing already established product in the town, with unbeatable
quality at an acceptable price in a clean and friendly outlet, we will be the talk of the town.
Therefore, the execution of our concept is the most critical element of our plan. We will actively
build our brand, through various forms of advertising like paper ad, visual ad in national

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television, promotional items and other marketing gimmicks better than those of other
restaurants.

5.2.1 Pricing Strategy

Our pricing strategy is positioned as "generic", meaning that Rs120 per plate is the average
consumer spending for a snack or light lunch in Kathmandu. Along with it we will be serving
mutton momo at Rs 80 per plate. Not only this we will also be serving various other liquors and
beverages along with different food items.

5.2.2 Brand Challenges

Though BHETGHAT RESTAURANT is already established brand in Narayangarh but we need
to establish a distinct brand to stand out from the other in Kathmandu valley.
• Our logo is distinct as fresh, energetic and playful with color elements that are eye
catching.
• Product name is geared toward the target market (working class people), I;e TASS, and
this makes people easy to remember.

5.2.3 Marketing Programs

We will deploy three different marketing tactics to increase customer awareness of TASS. Our
most important tactic will be "word-of-mouth". This will be by far the cheapest and most
effective of our marketing programs because of the high traffic in targeted Places.

The second tactic will be local marketing. These will be low-budget plans that will provide
community support and awareness of our product. The last marketing effort will be utilizing
national media. This includes visual media as well as paper media. Although, this will be the
most costly, this tactic is the most effective and huge mass covering.
• Local Marketing
o Distributing brochures and pamphlets containing our concept and product detail.
o Wall posters.
o Design concept.
o In-store viewing of making TASS process from making to cooking.
o Standing signage inside malls’ lobby/aisle.

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 o Grand opening promotion.
o Party catering.

• Local Media
o Direct mail piece – containing brochures sent to surrounding addresses.
o Local magazines that target our core customers, such as Free! Magazine.
o Newspaper campaign – placing several large ads throughout the month to aware
our product to the local area.

5.2.4 Positioning Statement

Our main focus in marketing will be to increase customer awareness in the surrounding
community. We will direct all of our tactics and programs toward the goal of explaining who we
are and what we are all about. We will price our products fairly, keep our standards high, and
execute the concept so that “word-of-mouth” will be our main marketing force.

5.3 Sales Strategy

The sales strategy is to build and open new locations in order to increase revenue. However, this
plan will be implemented when the one "market tester" outlet showed potential growth. As each
individual location will continue to build its local customer base over the first three years of
operation, the goal of each restaurant is to cross the sales of Rs 15000000 in annual sales, with
the each outlet to earn about Rs 2000000 per year.

5.4 Strategic Alliances

Our business requires a long relationship with raw suppliers as well as partner vendors. Which
we called business bonding. We already have a long and good standing relationship with our
meat suppliers called Vanja Meat supplier in Narayangarh. So we will continue it in Kathmandu
too, and we hope to strengthen further our business relationship as well as his business also.

5.5 Milestones
During the initial set up of the company, the co-founder Mr. Mahesh Tiwari will conduct the
planning and implementation in building the brand and the construction of our first outlet.

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Similarly Mr.Govinda Prasad Tiwari will look after the public relation. Similarly Mr. Govinda
Tiwari will also look after the hiring staff as he has the experience of 2 decades on running the
business. The planning and construction will take approximately 2 months, in addition to the
revision and refinement process for the meat processing and settling of our own vendor it might
take extra 2 months. So we are planning to open up the restaurant in the year 2011.

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 6. Management Summary

The initial management team depends on the founder, with little back-up. As we grow, we will
take on additional help and hire certain peoples in certain key areas. Part of our basic philosophy
will be able to run our executive management as a "knowledge sharing" fellowship. We will not
add additional overhead until absolutely necessary. This will mean that the initial staff support
team will have to work extra. By doing this, we will keep our overhead as low as possible,
allowing us to adequately staff our outlets. This will also allow us and future business partners to
recoup investments as quickly as possible and enjoy a higher return.

At present time, two people Mr.Mahesh and Mr.Govinda Tiwari will look after all the areas as
far as possible. Others that have helped on the development of this business venture will be
offered an opportunity to grow together with us company at the appropriate time, and when
necessary.

6.1 Management Team

BHETGHAT RESTAURANT today where it stands is all because of Mr. Tiwari who worked
day and night to sustain his living as well as to give something new in his business. So he will be
the director as well as founder of the restaurant. As the restaurant is small in nature, it only
requires a simple organizational structure. Implementation of this organization form will be in
between two peoples to make all major management decisions in addition to monitoring all other
business activities. As we expand into multiple locations, each location will have a primary site
manager.
6.2 Organizational Structure
Future organizational structure will include a director who will look after all the outlets from
Narayangarh to Kathmandu. He will be responsible for all the activities involved in running the
business. Besides there will be supervisory as well as managerial level. In the management level
there comes human resource manager, outlet manager to finance manager and store manager.
But the Current plan is to have only 15 peoples including outlet manager to security guard.

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6.3 Personal Plan
Our initial employees will include one cashier, who will look after cash and keep the daily
records of the transactions. There will be 2 cooks. One will be our head cook cook of
Narayangarh and other will be his helper. As our head cook has the experience of 18 years in
making the product, he will give his best to satisfy the Kathmandu crowd. He will be in
Kathmandu branch for six month period, and then we will train other staff to provide the same
quality. Similarly there will be 4 waitors, 2 will be from Narayangarh branch and rest we will
hire here only. Same as there will be 2 dishwashers,2 helpers, one bar tender and two security
guards. Each employee will work for 14 hours a day. And the working hour will be 10AM to
10PM. Employees will be given 2 days leave in a month and10 days leave in Dashain and 3 days
leave in Tihar. Similarly they will be given other holidays looking after the situation and
condition of the business. We will also provide providend fund facility and medical as well as
insurance facility too. Each and every employee will have the life insurance of Rs 500000. In the
long run, as we expand our product category and retail outlets, we will employ more people in
the middle management to ensure the focus of our work smoothly and effectively.
Personnel plan:
Outlet manager: Rs 15000 per month.
Chef: Rs 13000 per month.
Cashier: Rs 10000 per month.
Waiter: Rs 5000 each/ per month.
Bar tender: Rs 7000 per month.
Helpers: Rs 3000 each/per month.
Dishwashers: Rs 5500 each/per month.
Security guard: Rs 7500each/per month.

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 7. Financial Plan

Initial Sources and Uses

of Funds

Sources of Fund
Equity 4,0
00,000
Long term debt 3,0
00,000
Total sources of fund 7,0
00,000

Uses of fund
Furniture 1,4
00,000
Utensils 8
00,000
Machinery 1,4
00,000
Inventory 5
00,000
Total uses of fund 4,
100,000
Cash in hand 2,9
00,000

Uses of Funds at the

beginning of 3rd year

Sources of Fund
4,5
Equity 00,000
3,0
Long term debt 00,000
7,
Total additional cash 500,000

Uses of fund
1,8
Furniture 00,000
1,0
Utensils 00,000
1,9
Machinery 00,000
Additional Inventory 6

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 00,000
5,
Total uses of fund 300,000
2,2
Surplus Cash 00,000

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 Income Statement
Year
Particulars 2011 2012 2013 2014 2015
Sales 18,000, 19,800, 29,700, 32,670, 35,937,0
000 000 000 000 00
Less: Cost of goods sold 9,000,00 9,900,00 14,850,0 16,335,0 17,968,50
0 0 00 00 0
Gross Margin 9,000,0 9,900,0 14,850, 16,335, 17,968,5
00 00 000 000 00
Less: Other expenses
Rent 1,200,00 1,320,00 2,904,00 3,194,40 3,513,840
0 0 0 0
Marketing Expenses 1,000,00 1,100,00 1,210,00 1,331,00 1,464,100
0 0 0 0
Staff Expenses 1,440,00 1,584,00 3,484,80 3,833,28 4,216,608
0 0 0 0
Utilities 240,000 264,000 528,000 580,800 638,880
Repairs and 100,000 110,000 242,000 266,200 292,820
maintenance
Interior Decorations 1,000,00 1,000,00
0 0
Miscellaneous 200,000 200,000 200,000 200,000 200,000
EBDIT 3,820,0 5,322,0 5,281,2 6,929,3 7,642,25
00 00 00 20 2
Less: Depreciation 540,000 540,000 1,245,00 1,245,00 1,245,000
0 0
EBIT 3,280,0 4,782,0 4,036,2 5,684,3 6,397,25
00 00 00 20 2
Less: Interest expense 480,000 410,204 809,240 645,526 455,618
EBT 2,800,0 4,371,7 3,226,9 5,038,7 5,941,63
00 96 60 94 4
Less: Tax (25%) 700,000 1,092,94 806,740 1,259,69 1,485,409
9 8
Net Income 2,100,0 3,278,8 2,420,2 3,779,0 4,456,22
00 47 20 95 6

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Balance Sheet
2011 2012 2013 2014 2015
Assets
Current Assets
Cash 3,483,7 3,872,6 6,684,94 7,165,47 7,528,27
74 36 5 8 1
Accounts Receivable 180,00 198,00 297,000 326,700 359,370
0 0
Inventory 500,00 500,00 1,100,00 1,100,00 1,100,00
0 0 0 0 0
Total Current Assets 4,163, 4,570, 8,081,9 8,592,1 8,987,6
774 636 45 78 41
Long term Assets
Furniture 1,400,0 1,400,0 3,200,00 3,200,00 3,200,00
00 00 0 0 0
Utensils 800,00 800,00 1,800,00 1,800,00 1,800,00
0 0 0 0 0
Machinery 1,400,0 1,400,0 3,300,00 3,300,00 3,300,00
00 00 0 0 0
Less: Accumulated 540,00 1,080,0 2,325,00 3,570,00 4,815,00
Depreciation 0 00 0 0 0
Total Long term 3,060, 2,520, 5,975,0 4,730,0 3,485,0
Assets 000 000 00 00 00
Total Assets 7,223, 7,090, 14,056, 13,322, 12,472,
774 636 945 178 641

Capital and Liabilities

Current Liabilities
Accounts Payable 450,00 495,00 742,500 816,750 898,425
0 0
Total Current 450,00 495,00 742,500 816,750 898,425
Liabilities 0 0
Long term Liabilities
Long term loan 2,563,7 2,057,7 4,034,53 2,847,61 1,470,76
74 51 8 2 5
Total long term loan 2,563, 2,057, 4,034,5 2,847,6 1,470,7

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 774 751 38 12 65
Capital
Shareholders’ equity 4,000,0 4,000,0 8,500,00 8,500,00 8,500,00
00 00 0 0 0
Retained Earnings 210,00 537,88 779,907 1,157,81 1,603,43
0 5 6 9
Total Capital 4,210, 4,537, 9,279,9 9,657,8 10,103,
000 885 07 16 439
Total Capital and 7,223, 7,090, 14,056, 13,322, 12,472,
Liabilities 774 636 945 178 629

Cash Flow
Statement
2011 2012 2013 2014 2015
Beginning Cash 2,900,0 3,483,7 6,072,6 6,684,9 7,165,4
Balance 00 74 36 45 78
Cash Inflows
Sales 18,000,0 19,800,0 29,700,0 32,670,0 35,937,0
00 00 00 00 00
Less: Accounts 180,000 198,000 297,000 326,700 359,370
Receivable
Total Cash Inflow 17,820,0 19,782,0 29,601,0 32,640,3 35,904,3
00 00 00 00 30
Total Cash 20,720, 23,265, 35,673, 39,325, 43,069,
Available 000 774 636 245 808

Cash Outflows
Cost of goods sold 9,000,00 9,900,00 14,850,0 16,335,0 17,968,5
0 0 00 00 00
Less: Accounts 450,000 495,000 742,500 816,750 898,425
payable
Cash outflow on 8,550,00 9,855,00 14,602,5 16,260,7 17,886,8
COGS 0 0 00 50 25

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Rent 1,200,00 1,320,00 2,904,00 3,194,40 3,513,84
0 0 0 0 0
Marketing Expenses 1,000,00 1,100,00 1,210,00 1,331,00 1,464,10
0 0 0 0 0
Staff Expenses 1,440,00 1,584,00 3,484,80 3,833,28 4,216,60
0 0 0 0 8
Utilities 240,000 264,000 528,000 580,800 638,880
Repairs and 100,000 110,000 242,000 266,200 292,820
maintenance
Interior Designing 1,000,00 1,000,00
0 0
Miscellaneous 200,000 200,000 200,000 200,000 200,000
Expenses
Loan Paid 916,226 916,226 1,832,45 1,832,45 1,832,45
3 3 3
Taxes paid 700,000 1,092,94 806,740 1,259,69 1,485,40
9 8 9
Drawings 1,890,00 2,950,96 2,178,19 3,401,18 4,010,60
0 2 8 6 3
Total Cash 17,236, 19,393, 28,988, 32,159, 35,541,
Outflow 226 138 691 767 537
Ending Cash 3,483,7 3,872,6 6,684,9 7,165,4 7,528,2
Balance 74 36 45 78 71

Beginning 3,000,0
Principal 00
Interest Rate 16%
PVIFA of 16% for 3.27
5 yrs
Annual Loan 916,22
Payment 6

Loan Payment
Schedule
Year Beginning Amount Interest Principa Ending
Principal Paid Expense l Paid Principal
2011 3,000,000 916,226 480,000 436,226 2,563,774
2012 2,563,774 916,226 410,204 506,023 2,057,751
2013 2,057,751 916,226 329,240 586,986 1,470,765
2014 1,470,765 916,226 235,322 680,904 789,861
2015 789,861 916,226 126,378 789,849 12

Loan Payment
Schedule

Year Beginning Amount Interest Principa Ending

Principal Paid Expense l Paid Principal

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 2013 3,000,000 916,226 480,000 436,226 2,563,774
2014 2,563,774 916,226 410,204 506,023 2,057,751
2015 2,057,751 916,226 329,240 586,986 1,470,765
2016 1,470,765 916,226 235,322 680,904 789,861
2017 789,861 916,226 126,378 789,849 12

8. Critical risks and contingencies:

When we talk about opening up the new venture it is not an easy job. For the smooth operation
of the business everything need to be in perfect condition. When we talk about our venture then
definitely it is not an easy. Bringing raw material “khassi” from india may not be as easy as we
think. The risk factor associated with it will be political instability. When there is no smooth
operation of the government then different groups and forums will open up in no time. Threat
from those peoples along with local gangsters for money can be a risk factor for us. Similarly
settling our local suppliers of Narayangarh in Kathmandu will be the other problem for us. As we
need the best quality of meat we cannot believe in other suppliers of Kathmandu. Because what
we have found that they are selling ship meat saying as mutton. The bands and hadtal from
various political parties and their sister organizations can create disturbance in our business.

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 Appendix

FOOD MENU OF

BHETGHAT RESTAURANT

PARTICULARS AMOUNT PER PLATE (RS)

MUTTON TASS 120

MUTTON SEKUWA 140

HYAKULA 150

KALEJO 150

SEKUWA SADEKO 160

HEAD BOIL 140

HEAD FRY 140

HEAD POLERA 140

GIDI FRY 150

RAJKHANI/NASHA 200

MUTTON MOMO 80

MOMO FRY 100

VEG MOMO 60

VEG MOMO FRY 80

VEG CHOWMEIN 60

MUTTON CHOWMEIN 100

MIXED CHOWMEIN 100

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 BEVERAGE MENU OF

BHETGHAT RESTAURANT

SOFT DRINK

PARTICULARS AMOUNT RS (PER BOTTEL)

COLD DRINKS 30

CAN JUICE 80

REAL JUICE 30

PLAIN LASSI 35

BANANA LASSI 45

ALHOLIC DRINKS

PARTICULARS AMOUNT RS (PER BOTTEL)

TUBORG BEER 220

SANMIGUEL BEER 220

CARLSBERG 250

NEPAL ICE 200

LOWRENBREW 200

CAN BEEER 140

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HARD DRINKS

PARTICULARS QUARTER HALF

FULL BOTTLE

SIGNATURE 280 550 1020

ROYAL STAG 240 460 900

MC DOWELLS 240 460

900

BAGPIPER 240 460

900

KHUKHURI RUM 240 460

900

VODKA 220 440

870

GIN 220 440

870

THE ABOVE RATE IS SUBJECT TO CHANGE AS PER THE MARKET CONDITION.

ADDITIONAL 10%SERVICE CHARGE AND 13% VAT WILL BE CHARGED.

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