Project

Project Report on Opening

Theme Restaurant Hat Trick
2010
Submitted to:
Prof. H.K.Srivastava
Submitted By:
Rujuta Parikh
(091136)
Section-A
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IMNU_logo1
Management
 Executive Summary
A well-run restaurant is like a winning baseball team. It makes the most
of every crew member s talent and takes advantage of every split-second
opportunity to speed up service.
This is what I would like to leverage through business plan Hat trick . Hat
trick is sports theme restaurant with innovative idea of live music & karaoke
evening club. Karaoke is an interactive entertainment activity that consists of
singing along to popular songs, on a microphone, while reading the lyrics are
displayed on a video screen. Hat trick is a restaurant for fun-seeking as well a
s
sophisticated diners looking for good food & drinks like mocktails, coffees, hot
beverages in a fascinating atmosphere; where they are given a chance to
experience entertainment & enthusiasm which they had missed out so far in
Ahmedabad.
The project will be financed by some financial institution like banks or venture
capitalist (Rs 20,00,000) and by me (Rs 10,00,000) for the start up expenditures
involved like getting land on rent, constructing the facility, buying the
equipments and promotion of the facility. After the facility is set up, the faci
lity
will be run by quality staff. The payment of the borrowings for the start-up
investments can start after the 1st year when increasing revenue will start
flowing due to growing brand image of the facility. The risks involved in the
project have also been identified and the most suitable solutions for minimizing

those risks have also been worked out in case of any of the risk materializes.
However, there are always some chances that the projects will not results as
good as expected despite undergoing meticulous planning and execution of the
project. Thus the probable exit strategies available with to me as the owner hav
e
also been analysed.
Table of Contents
General Company Information ....................................................
......................... 5
Concept ........................................................................
...................................... 5
Key Points .....................................................................
..................................... 6
Mission ........................................................................
....................................... 7
Objectives .....................................................................
..................................... 7
Analysis of Business Scenario ..................................................
...................... 8
Porter.s Five Forces Model of Competition ......................................
........ 8
Business Proposition ...........................................................
................................ 12
Services Offered................................................................
............................... 12
Operational Plan ...............................................................
................................... 13
Licensing ......................................................................
.................................... 13
Location .......................................................................
.................................... 13
Inventory ......................................................................
.................................... 14
Suppliers ......................................................................
.................................... 14
Personnel Plan .................................................................
.................................... 15
Start-up Summary ...............................................................
................................ 18
Milestones .....................................................................
...................................... 19
Strategy .......................................................................
....................................... 21
Risk Analysis ..................................................................
................................... 22
Identification of Major Risks for Hat Trick ....................................
........... 22
Risk Severity Matrix ...........................................................
........................... 23
MARKET ANALYSIS ................................................................
....................... 25
Industry & Market Analysis .....................................................
....................... 25
Market Segmentation ............................................................
........................... 25
Target Market Segment Strategy .................................................
.................... 27
Marketing Program ..............................................................
............................ 27
Local Store Marketing ..........................................................
......................... 28
Local Media ....................................................................
................................ 28
Sales Forecast..................................................................
................................. 29
Pricing and Profitability ......................................................
............................. 30
Break Even Analysis ............................................................
............................ 31
Exit Strategy ..................................................................
.................................... 33
Sample Menu ....................................................................
.................................. 34
General Company Information
Concept
Hat trick is extensively for young adults, keeping in mind the fact that their
experience is different from that of others. Though hat trick would be called a
restaurant, it would be more than just a restaurant; it would be a single stop
solution for younger generations where they acquire new experience & also
engage in hobbies which leads to a more fulfilling & enriching life.
Today it is seen that most of the people are interested to leisure time going ou
t
to different places which gives them new look & experiences. This casual
establishment would have spacious patio seating outside, and over 5 TVs inside
including 1 projector. Hat trick will host a karaoke contest every Tuesday
evening with a prize going to the best female & male karaoke performers. In
addition to karaoke, there is a live DJ on Friday and Saturday and barbeque
night on Wednesday and Sunday. The menu includes a variety of Indian
Traditional & Non-traditional food with beverages.
It expects crowds of sports fans and after-work happy hour groups enjoying the
large projector screens and unobstructed views of over 5 TVs. There would be
always a game on screens and those inclined to more participatory pleasures can
play darts, ping pong, trivia, pool or even foosball. The location is selected
where hassle free parking is there and where everybody can easily access.
There would be well attractive space birthday parties celebration, and other suc
h
events to keep people engaged. The positioning of the restaurant would be a
place where one spends time constructively, experiencing new things.
The restaurants would start at one location Ahmedabad- which would be acting
as separate profit centre and managing operations independently.
Tuesday
Karaoke: starts at 7:30 PM
Karaoke Contest
Wednesday & Sunday
Barbeque Night with Live Music
Thursday
Lunch Party from 11:00 am to 3:00 PM
Friday & Saturday
Live DJ: 8:00 Pm to 12 AM

Timings would be:

11 AM to 3 PM
3 PM to 6 PM (Only selected items will be served in this time period)
7 PM to 11 PM
Key Points
. Karaoke Evening which is presently an international activity that is widely
popular.
. Great Outdoor Seating
. Over 5 TV's which constantly shows games
. Barbeque night with live music

This place almost makes you choose between gaming, singing karaoke or just
smack on the dance floor. Do all three and you score the hat trick. You
can actually win prizes at weekly Tuesday-night karaoke night contest, which
would be pretty lively.
Mission
Hatrick.s is a great place to eat, combining an intriguing atmosphere with
excellent, interesting food. The mission is not only to have great tasting food,
but have efficient and friendly service because customer satisfaction is
paramount. We want to be the restaurant choice for all families and singles,
young and old, male or female. Employee welfare will be equally important to
our success. Everyone will be treated fairly and with the utmost respect. We
want our employees to feel a part of the success of Hat Trick. Happy employees
make happy guests.
We will combine menu variety, atmosphere, ambiance, special theme nights and
a friendly staff to create a sense of 'place' in order to reach our goal of over
all
value in the dining/entertainment experience. We want fair profits for the
owners, and a rewarding place to work for the employees.
Objectives
Hat trick aims to become the place for the youngsters where they can enjoy their
passion. Project objective is to set up a place which is single stop solution fo
r
younger generations where they acquire new experience & also engage in
hobbies which leads to a more fulfilling & enriching life. The project should be
completed within 6 months at a cost not to exceed 75 lacs.
Restaurant's objectives for the first three years of operation include:
. Keeping food cost fewer than 35% revenue.
. Keeping employee labor cost between 24-29% of revenue.
. Stay as a small restaurant with excellent food and service.
. Averaging sales between Rs.30,00,000,-50,00,000 per year.
. Expand our marketing and advertising in Ahmedabad
. Achieve 12% return on investment to investors for the first two years and
15% for the next three years.
Analysis of Business Scenario

Porter s Five Forces Model of Competition

The model of pure competition implies that risk-adjusted rates of return
should be constant across firms and industries. However, numerous
economic studies have affirmed that different industries can sustain
different levels of profitability; part of this difference is explained by
industry structure.
Michael Porter provided a framework that models an industry as being
influenced by five forces.
The Five Forces:
a) Threat of Potential Entrants:

Profitable markets that yield high returns will attract new firms. This
results in many new entrants, which eventually will decrease
profitability for all firms in the industry. Unless the entry of new
firms can be blocked by incumbents, the profit rate will fall towards
zero. Some of the barriers which can block the entry of the
competitors are as follow:
i) Customer Loyalty:

It is difficult for a competitor to break into an industry if

there are one or more established operators that know the
industry well and have good relationship with the key
buyers and suppliers.
The unique taste and service of the restaurant highly
satisfies the customers and makes them loyal towards the
brand. The innovative items and the signature dishes of the
restaurant also attract the customers.
ii) The Capital Requirement of Entry:

The capital cost of entry will vary according to technology

and scale. The new entrants in the same industry may face a
problem of capital as the working capital in the initial stages
is very high and is not affordable by each and every entrant.
b) The Industry Rivalry

Industry rivalries are organizations with similar products and

services aimed at the same customer group. There are a number of
factors that affect the degree of industry rivalry in an industry or
sector. These factors are:
. Balance
. Industry growth rate
. High fixed cost
. High exit barriers
. Differentiation

Hat Trick faces competition from Havmore Group, Bawarchi

Group, Cooking Culture, Shocolatery and TGB group.
c) Threat of substitutes

Substitution reduces demand for a particular class of products as

customers switch to the alternatives even to the extent that this
class of products or services becomes obsolete. Substitution may
take different forms:
. Product for product substitution: Some of the close
substitutes of Hat Trick are Havmore, Bawarchi, Mirch
Masala, TGB, Shocolatery.
. Substitution of need: There are some restaurants or food
joints which provide the same food items without
compromising on quality.
d) The power of buyers and suppliers

These forces can be considered together because they can have

similar effects in constraining the strategic freedom of an
organization and in influencing the margins of that organization.
The purchasing power of the customer is such volatile that it
affects the sales of the organization directly.
Buyer power is likely to be high when there is a threat of the
supplier being acquired by the buyer or the buyer setting up in
competition with supplier.
Supplier power is likely to be higher when suppliers start
competing directly with their buyers if they do not obtain the
prices and hence the margins that they seek.
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Business Proposition
Services Offered
One thing that is consistent with restaurant is their impeccable service. All st
aff
hired would have extensive experience and all must go through three weeks of
training, ensuring benchmarked customer service.
The medium of serving would be Indian traditional as well as Oriental,
Continental & Italian. It can be assumed that most adults would not be
comfortable with only non-traditional food as the medium of serving &
therefore traditional food would be a more preferred medium. This would
primarily help in the market coverage & also in scalability.
Restaurant will be unique to the area. International creative food and a style o
f
service that will make everyone feel welcome and special. Our food products
will be of the finest quality and prepared with sensitivity and care. We will 'g
o
all the way' to satisfy our guests. We will change our menu every 3-4 months,
but we'll keep 'your favourite' Portions will be modestly sized with an attracti
ve
presentation.
During the busy winter months customers can also sit outside on our patio and
we will offer a special menu, featuring lighter fare.
The kitchen staff will have the best in culinary education and work experience.
Our creative talents will complement one another. The lounge and restaurant
staff will offer the finest service in a cosy atmosphere and offer customers an
extraordinarily successful evening.
Operational Plan
Licensing
Preparation and processing of food products may modify their nutritional value
and use of food additives may introduce direct or indirect toxicity, but the rea
l
hazards to health are caused food adulteration. In order to curb the menace of
food adulteration, Government of India introduced the prevention of Food
Adulteration Act, 1954 with prevention of Food Adulteration rules 1955.
Government of Gujarat in 1961 introduced the Gujarat prevention of food
adulteration rules.
In order to start operations of the Hat Trick Restaurant, I need to register the
business to the local government authority for the food inspection. Food and
Drug Control Administration is the government body by the Gujarat
government to regulate the food industry. In Ahmedabad, the local health
authority is located at Medical Officers of Health & LHA., Ahmedabad
Municipal Corporation (AMC). The specific documents are mentioned on the
Govt. Of Gujarat website which needs to be legally created and submitted. Cost
for following licensing would be around Rs.10,000
Police Licence for Parking & Traffic, Food & Hygiene from AMC
Fire & Safety licence- (closest fire station), Shop establishment
Location
The location we have decided is a commercial rental space on 4th floor of
Acropolis Mall, S.G.Highway. We have chosen this location because the rich
class as well as the college youth is more attracted to this place. There are
different shops & movie theatres in the mall which grab more people to the
restaurant. We have been observing the emergence of many restaurants in this
area since last 2 years and hence we feel this is the most appropriate place to
start with.
Moreover, we do not intend to purchase the place because the realty prices are
too high at this moment. The realty sector is overvalued and we feel the
investment in the property at this moment will not be a good investment
decision. Hence, to start with, we will go with renting a space for the restaura
nt.
The necessary layout changes can be done with the help of temporary wooden
blocks. The required size of the commercial space for starting the restaurant is
around 2300-2500 square feet. The rent for such a space on S.G.Highway area
is around Rs. 11,00,000 Rs. 12,00,000 per annum. However, the location
advantage might be used to generate more sales and service the rental.
Inventory
We have estimated the inventory of ingredients of food products and coffee
based products to be around 2 weeks. The fresh fruits & vegetables can.t be
inventoried and hence we will not keep any inventory of the same. Also, we will
try to make the supplier relationship such that the inventory is minimized at an
y
given point of time.
Suppliers
We intend to buy the ingredients of food products etc from a local vendor,
Take Home store, who is a friend and a trusted person. We will also have 6
months contract for delivering specific items at the restaurant. We intend to
agree on a week.s credit for the purchase of the products. However, we do not
want to be too dependent on only one supplier. In case of some emergency, we
might afford buying at a higher cost from a different supplier nearby. The
products or raw material for the products are such in nature that it is not that
difficult to change the suppliers.
Personnel Plan
We believe the personnel plan is in good proportion to the size of the restauran
t
and projected revenues. The staff will include 31 full-time .There will be no
growth in payroll for the first 4 yrs. After the profitability, 10% increment
would be given.
Kitchen
. Master chef(1)
. Chef De Cuisine for different departments like Indian, Italian,
Continental & Oriental (4)
. Chefs & helpers(3)
. Sous Chefs (4)
. Stewards (4)
. Commis(4)

In front of the house

. Captains (these people have experience in managing, waiting tables and
they take care of service and make sure the restaurant is in excellent shape)
(2)
. Managers will take care of the financial issues including bookkeeping
and work in 'front of the house'(2)
. Waiters(4)
. Cleaning Staff(3)
. Serving Staff(3)
Executive
Chef
Chef De
Cuisine Indian
Sous Chef
Commis
Stewards
Chef De
Cuisine
Oriental
Sous Chef
Commis
Stewards
Chef De
Cuisine
Continental
Sous Chef
Commis
Stewards
Chef De
Cuisine Italian
Sous Chef
Commis
Stewards

Personnel Plan (Per Month)

Year 1
(Rs.)
Year 2
(Rs.)
Year 3
(Rs.)
General Manager(1)
20,000
20,000
20,000
Front Manager(1)
14,000
14,000
14,000
Captains (2)
8,000
8,000
8,000
Waiters(4)
5000
5000
5000
Master Chef(1)
20,000
20,000
20,000
Chef de Cuisine(4)
13,000
13,000
13,000
Sous Chef(4)
9000
9000
9000
Commis(4)
4000
4000
4000
Stewards(4)
3500
3500
3500
Cleaning Staff(3)
3000
3000
3000
Serving Staff(3)
4000
4000
4000
Total People
31
31
31
Total Payroll
1,90,000
1,90,000
1,90,000
Start-up Summary

The finance for the project will be arranged by approaching to a venture capital
ist
or a bank which is willing to invest the money in this project. There are many
well known firms which invest in such new projects like Lagham Capital, New
Path Venture LLC, Sicom Venture Capital, Alliance Venture, Avendus and banks
like ICICI, SBI, Bank of India, Yes Bank, etc. These firms will be approached in
order to get the seed funds for starting the business.
Our start-up costs come to Rs.26,20,500 which is mostly expensed equipment,
furniture, reconstruction, employee training & other associated cost with
opening our restaurant. These are the start-up requirements to the best of our
knowledge and experience in the industry.
The start-up investment of Rs. 20,00,000 will be borrowed from venture
capitalist or from banks. The financial plan has been prepared based on the
worst case scenario of borrowing the sum from a bank at 10% interest rate. The
payment of interest will start after 1st year. Rs.10,00,000 is brought by the
owner as her own investment.
Milestones

The accompanying table lists important program milestones, with dates and
budgets for each. The milestone schedule indicates our emphasis on planning
for implementation.
What the table doesn't show is the commitment behind it. Our business plan
includes complete provisions for plan-vs.-actual analysis, and we will hold
monthly follow-up meetings to discuss the variance and course corrections.
Milestone
Start Date
End Date
Budget(Rs.)
Painting/Reconstruction of Restaurant
1/1/2011
20/4/2011
2,00,000
Lighting & Lamps
1/4/2011
5/5/2011
30,000
Furniture for Restaurant
15/3/2011
2/5/2011
15,00,000
Decorations and Cash Register
4/4/2011
10/5/2011
45,000
Production and Completion of Menus
1/3/2011
2/4/2011
8,000
Buy Kitchen Supplies
10/4/2011
25/5/2011
8,00,000
Advertising
2/5/2011
20/6/2011
15,000
Direct Mail
15/4/2011
15/5/2011
4,000
Website
1/4/2011
10/5/2011
10,000
Corporate Brochure
1/5/2011
30/5/2011
2,500
Employee Training
20/5/2011
30/5/2011
6,000
Total Start-Up Cost

26,20,500
 In the restaurant business, the start of the one activity is not dependent on
ending of the other activity so network chart is not possible. As per shown
above, buying of kitchen appliances is not dependent on the ending of the
renovation because one should contact suppliers of the kitchen appliances while
renovation is going on. If one would wait for completion of renovation, the
project will get delayed.
Strategy
The strategy is simple; we intend to succeed by giving people a combination of
excellent and interesting food in an exciting environment that appeals to a wide
and varied group of successful people. We will focus on maintaining quality
and establishing a strong identity in our community. Our main focus in
marketing will be to increase customer awareness in the surrounding
communities. We will direct all of our tactics and programs toward the goal of
explaining who we are and what we do. We will keep our standards high and
execute the concept so that word-of-mouth will be our main marketing force.
We will create an appealing and entertaining environment with unbeatable
quality at an exceptional price. An exciting and friendly restaurant, we will be
the talk of the town. Therefore, the execution of our concept is the most critic
al
element of our plan. All menu items are moderately priced for the area. While
we are not striving to be the lowest-priced restaurant, we are aiming to be the
value leader.
Risk Analysis

Identification of Major Risks for Hat Trick

A. The expected number of clients may not turn up

B. The staff may leave the Hat Trick anytime if competitors offer better pay.
C. Unsatisfied client may harm the reputation of the facility and hamper the
expected growth.
D. Sudden growth in rent
E. The government authorities may ask to shut down the restaurant if
standards and regulations are not complied with.
F. Potential risk of damage to the facility and equipments due to accidents
like fire, earthquake.

Risk Event
Likelihood
Impact
Detection
Difficulty
When
The expected
number of clients
may not turn up
3
4
3
Post
Implementation
The staff may
leave the Hat
Trick anytime if
competitors offer
better pay
3
4
3
Post
Implementation
Unsatisfied client
may harm the
reputation of the
facility and
hamper the
expected growth
2
5
4
Post
Implementation
Sudden growth in
rent
2
4
5
Start Up + Post
Implementation
The government
authorities may
ask to shut down
the restaurant if
standards and
regulations are
not complied
with.
2
5
2
Start Up+ Post
Implementation
Potential risk of
damage to the
facility and
equipments due to
accidents like fire,
earthquake.

2
3
2
Start Up + Post
Implementation

Risk Severity Matrix

Risk Response Development

Risk Event
Response
Trigger
Contingency
Plan
The expected number
of clients may not
turn up
Mitigate
Reduction in Footfall
Make a research
to know the
reasons for low
footfalls &
Regular review
from the
customers about
the quality and
taste of food and
accordingly
change the taste.
The staff may leave
the Hat Trick
anytime if
competitors offer
better pay
Mitigate
Staff absenteeism
happened more than
twice a week.
Have a backup
staff or replace
such an
employee.
Unsatisfied client
may harm the
reputation of the
facility and hamper
the expected growth
Avoiding
-
Have a fire
extinguisher and
fire alarm system
in place.
Sudden growth in
rent
Avoiding
-
Take a loan for
the payment
The government
authorities may ask
to shut down the
restaurant if
standards and
regulations are not
complied with.
Avoiding
-
Approval from
the authority,
Maintain Food
and Quality
standard certified
from the
respective
authorities.
MARKET ANALYSIS
Industry & Market Analysis
The concept of Hat trick originates from the fact that, in this age of advanced
technology and unorganized restaurants, a majority of our younger.s and adults
feels left behind & looking for something new fascinating atmosphere
restaurants. Also, people need something to make them feel new every time &
at present there is no such offering in Ahmedabad. Few of the major driving
factors that lead to the conceptualization of hat trick are as follows:
. Increasing demand of different & new types of food
. Younger generation is looking for something new which entertains them
. No well organized & Sports themed restaurant in Ahmedabad
. Karaoke is new concept in the market

Market Segmentation
Hatrick intends to cater to a wide group of people. We want everyone to feel
welcome and relaxed in a cozy atmosphere with a wide and varied menu. It is
our goal to have "something for everyone" everyday on our menu. In looking at
our market analysis, we have defined the following groups as targeted
segments.
Happy Couples: The restaurant will have an intimate, romantic, sophisticated
atmosphere that encourages people to bring dates and to have couples arrive.
Hat Trick wants to be a search place where people meet each other and develop
a network. These young couples are generally very successful but balanced and
won't be spending as much on beverages.
The Family: The perfect place for a family dinner. Families will come for the
accommodative menu and friendly service. The excellent value in their meals
will keep Hat Trick in favour with the parents.
High-end Singles: We will attract them with our decor and layout. Our
international menu, striking interior, exciting events, excellent service and
engaging clientele will confirm the feeling of being in "the coolest place" in t
he
city.
Tourists: Ahmedabad is a city that attracts many vacationers during the winter
months of November through January. Hatrick will be a destination with its
attractive atmosphere, international menu, and outdoor patio.

Market Analysis

Year 1
Year 2
Year 3
Potential
Customers
Growth

Happy
Couples
15%
8,025
9,229
10,614
Tourists
10%
3,200
3,520
3,872
The Family
20%
5,300
6,360
7,632
High-end
Singles
12%
3,550
3,976
4,454
Total

20,075
23,085
26,572
Target Market Segment Strategy
Hat trick will focus on attracting a wide and diverse clientele ages 25-60 with
an
annual income of at least 3,00,000Rs. 5,00,000Rs.
We want the happy couples, high-end singles, families, tourists with money,
wealthy image seekers and compulsive spenders. We focus on these specific
groups because these are the types of people who frequent other restaurants the
area. They are the ones that are willing to spend their money on good dining and
service at a value price. We generally know the characteristics of our clientele
with the available demographics.
Our geographic include people from the local, restaurant patrons
from neighbouring cities, and tourists from other cities and states. The
characteristics of our clientele will be people who are creative, entertaining a
nd
sophisticated diners.
Marketing Program
We will employ three different marketing tactics to increase customer
awareness of Hat trick. Our most important tactic will be word-of-mouth/in-
store marketing. This will be by far the cheapest and most effective of our
marketing programs.
Word-of-mouth/In-store Marketing
. V.I.P. Party - We will host a V.I.P. Dinner before the 'Grand Opening.'
This will serve the dual purpose of training our staff and introducing
ourselves to the community. The list of individuals we will invite comes
from the Chamber of Commerce.
. Grand Opening celebration.
. Once a month invite a new local artist to show their work in the lounge.
. "Restaurant Night" - Every Monday night we will have a special evening
for restaurant people. A perfect night for the local area's restaurant owners
and staff to get together on a night off!

Local Store Marketing

. Make a brochure for the large hotels and popular bed & breakfast
establishments in town to provide to their guests, containing interior
pictures of our restaurant, menus and prices.
. There are several nursing homes in the city. We will approach them to
sponsor meals for the elderly. This will offer us higher visibility to a group
that may not be as mobile and we'll be contributing to the community in a
material way. Word-of-mouth referral is very powerful and particularly
amongst the elderly to both their peers and their extended families.

Local Media
. Newspaper campaign - Placing several large ads throughout the month to
deliver our concept to local area.
. Direct mail piece - Containing interior pictures of our restaurant, our menu,
"Theme Nights," catering and an explanation of our concept.
. Website
. Target marketing to businesses for regular business lunch and dinner
entertaining.
Financial Plan
Sales Forecast
The following table and charts show sales projections for our first twelve
months. That is 15 people for lunch spending approximately rs.150 per person,
10 people for evening spending rs.100 and for dinner approximately 30 people
spending an average rs.200 per person.
Catering will average two parties of rs.30, 000 each.
Our total cost of goods sold is capped at 33% of total sales.
We expect sales to increase 15% after Year 1
The financial plan depends on important assumptions. The key underlying
assumptions are:
Important Assumptions
. We assume a slow-growth economy, without major recession.
. We assume that there are no unforeseen changes in the expectancy in
the popularity of our restaurant.
. We assume access to investments and financing are sufficient to
maintain and fulfil our financial plan.
. Tax rate per annum is 25%. Interest rate for the loan is 10% per
annum. Rent is increasing by 15% every year.
. Depreciation on furniture is 15% and depreciation on kitchen
appliances is 12.5%
. Tax rate is 30%
Revenues

Footfalls

Daily
Monthly
Yearly

55
1,650
20,075
Average
Revene
Min
Spending
(Rs)
150
8,250
2,47,500
30,11,250
Max
Spending
(Rs)
280
15,400
4,62,000
56,21,000

Total
23,650
7,09,500
86,32,250

Average
Revenue
3,54,750
43,16,125

Pricing and Profitability

The combined cost of sales will be 33% producing a gross profit of 67% on
total sales. If we take Rs. 150 and Rs. 280 as minimum and maximum revenue
per unit respectively, Rs. 215 is the average revenue per unit. And hence, the
variable cost is 33% of Rs. 215, i.e. Rs. 71 per unit. We will work with this
assumption throughout the forecasting. Electricity will be around Rs.3000 pm.
Increasing 5% every year.
Prices will be competitive with other upscale restaurants in the area. However,
it
is the strategy of Hat trick to give a perception of higher value than its
competitors, through its food, service and entertainment.
Break Even Analysis

Year

1
2
3
4
Sales
In-house
Customers
43,16,125
49,63,544
57,08,076
65,64,288

Catering
7,20,000
8,28,000
9,52,200
10,95,030
Revenue

50,36,125
57,16,544
66,60,276
76,59,318
Cost Of
Sales

16,61,921
18,86,460
21,97,891
25,27,575
Gross Profit

33,74,204
38,30,084
44,62,385
51,31,743

Expenses

Workforce
22,80,000
22,80,000
22,80,000
22,80,000

Land Rent
11,70,000
13,45,500
15,47,325
17,79,424

Interest

2,00,000
2,00,000
2,00,000

Legal Charges
10,000
5,000
5,000
5,000

Electricity
36,000
37,800
39,690
41,675
Depreciation
(SLM)
Furniture
2,25,000
2,25,000
2,25,000
2,25,000

Kitchen
Appliances
1,00,000
1,00,000
1,00,000
1,00,000

Total Cost

38,21,000
41,93,300
43,97,015
46,31,099

Profit Before
Tax
(4,46,796)
(3,63,216)
65,370
5,00,644
PAT

45,759
3,50,450
 From the above model we can infer that for the first two years the restaurant
would be operating under loss due to high initial cost of setting up the
restaurant. But from third year onwards the restaurant breaks even and starts
generating small profits also.
Exit Strategy
No one attempts a business anticipating failure, however sometimes ventures do
not fulfil their promise.
We at Hat Trick are committed to our concept and its viability. In the event tha
t
our venture cannot achieve profitability and retire the encumbrances; we will
first attempt to sell the operation and use the proceeds to clear all outstandin
g
balances. Lease or sell the facility to some new players who are also interested
in the same business and are looking for prepared facility to start the business
straight away. Since there are a lot of new restaurants opening these days, the
amount received would be used to repay the borrowing.
Sample Menu
STARTERS

. BBQ paneer tarts

. Pizza thin crust crispy base pizza (Olives/ Jalapenos/ Baby corn/
Tandoori/ Pesto/ Sundried Tomatoes/ Peppers/ Basil/ Tomato.s/
Margarita)
. Vol-en-vent (Corn/ Beans/ Cheese/ Spinach/ Multi. Beans)
. Corn and Jalapenos Rolls
. Canapé (Samosa/ Assorted/ Mexican/ Cheese-Olives)
. Tarts (Samosa/ Assorted/ Mexican/ Cheese-Olives/ Corn/ Cheese/
Spinach/ Tandoori Paneer/ Kadai)
. Nachos served with Cheese/ Sour Cream/ Salsa/ Guacamole)
. Chips with Dips (Cheese/ Sour Cream/ Salsa/ Guacamole/ Mexican)
. Quesadilla (Cheese/ Beans/ Corn n. Cheese/ Cheese-Jalapenos/ Cheese-
Olives)
. Falafel served with Taine Sauce
. Bruschetta (Tomato/ Tomato-Basil/ Cheese/ Italian/ Hungarian/ Cottage
Cheese/ Sundried Tomato/ Olives-Jalapeños/ Peppers)

INDIAN STARTERS

. BBQ (Mexican/ Malai/ Aachari / Ajwain/ Lausini/ Phudina) (Paneer/

Potatos/ Baby Corn/ Tomatoes/ peppers/ Onions) served with mint
chutney and laccha
. Paneer TikkaMirchWala
. Peshawari Paneer Tikka
. Kebabs (Dahi/ Aloo-MakaiSheekh Kebab/ MirchiaurMalai/ Hare mutter/
HaraTawa/ PalakSeekh)
. Tikkis( Alloo/ Kela-Anjeer/ AlooPhudina Peanut/ Meethi Mutter
aurkismis/
. Buffwada
. Samosa (potato/ Patti/ Aloo-Mutter/
. Kothmir Wada
. Kathi Roll
. Corn on Cob (Boiled/ Fired/BBQ) (Marinated/ Plain)

SOUPS
. Mexican Chilli Bean Soup
. Cheese Corn Tomato Soup
. Hot and Sour
. Minestrone
. Roasted Corn Soup
. Manchow Soup
. Italian Pasta Soup
. Lemon and Tortilla Soup
. Spinach Corn Soup
. Tomato Cilantro
. Tomato Basil

MAIN COURSE (INDIAN)

. Paneer TikkaLababdar
. Paneer Roulade Makhanni
. Paneer Pasanda
. Kadai Paneer
. Palak Paneer
. Paneer Amritsari
. Paneer Jalfrezi
. Paneer Bhurji
. Kaleji Paneer
. Veg. Kolhapuri
. SubzKahdhri
. DiwaniHandi
. Veg. Jaipuri
. Veg. Jalfrezi
. Veg. Kadai
. Veg. Shahi
. Veg. Makhanwala
. Navratna Korma
. AmritsariKofta
. LahoriMalaiKofta
. KadiPakora
. Awadhi Kofta

INDIAN DAL
. Dal e Khas
. DalTadka
. Dalpanchmeli
. Dalmakhni
. Dalhydrabadi
. Dal Bukhara
. Dalrajma

RICE
. Hydrabadi Dum Biryani
. Dum TarkariBiryani
. Veg. Biryani
. KathalBiryani
. MotiyaPulao
. Kashmiri Dum Pulao
. MakhanaChawal
. Jeera Rice

INDIAN BREAD
. TandooriRoti
. MissiRoti
. Naan (Garlic/ hariyali/ Sahi/ Cheese/ Butter/ Stuff)
. TandooriKulcha (Cheese/ Paneer/ Onion/ Masala)
. FulkaRoti
. RoomaliRoti

ORIENTAL
. Cottage Cheese in Veg. Garlic Sauce
. Veg. Manchurian
. Cottage Cheese with Veg. Hot Pepper
. Szechwan Vegs.
. Veg. Momos in Hot Garlic Sauce
. American Chopsey
. Veg. Hakka Noodles
. Veg. Chowmen
. Three Pepper Peanut Noodles
. Pepper Rice Noodles
. Singapoori Sweet Garlic Vegs.
. Szechwan Tofu and Vegetables
. Cauliflower and Brocolli in Spiced Peanut Sauce
. Sweet and Sour Paneer with pineapple
. Thai Red Curry
. Thai Green Curry

CONTINENTAL AND CHINESE RICE PREPARATIONS

. Ginger Smoked Fried Rice with Vegetables
. Chilli Garlic Fried Rice
. Ginger Capsicum Fried Rice
. Thai Corn Fried Rice
. Burnt Ginger Fried Rice
. Coconut Fried Rice
. Mexican Lemon Cilantro
. Risotto (Corn/ Spinach/ Smoked Aubergine/ Onion)

CONTINENTAL
. Butter Tossed Vegs.
. Baked Marconi
. Baked Spaghetti
. Spinach Lasagna
. Cottage Cheese Lasagna
. Baked Veg. Florentine
. Baked Burmese Spaghetti
. Bakes Lasagna
. Baked Veg. Cannelloni

MEXICAN
. Mexican BBQ with Cottage Cheese
. Mexican Three Bean Curry
. Beans Enchiladas with Salsa and Sour Cream
. Burritos with Vegetable Curry Chilli and Corn Rice
Desserts

. ALMOND RAISIN MUFFIN

. CHOCOLATE CHIP MUFFIN
. ALMOND BISCOTTI
. CHOCOLATE CHIP COOKIE
. CHOCOLATE EXCESS
. RICH BLACK FOREST
. PINEAPPLE AND CREAM CAKE
. CHOCOLATE CHEESE MARBLED CAKE
. DARK TEMPTATION
. CHOCOLATE ICEBERG