Professional Documents
Culture Documents
Submitted to
Prof. Naresh Shah & Prof. Mansi Rathod
Submitted By
Rohan Mistry & Jatin Baraiya
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
Industry:
Restaurant (Fast Food)
Target Customers:
High income and Higher Middle Class people (mostly tourists)
Area of Operation:
Goa
Name of Restaurant:
Sighdhi: Always warm & fresh
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
The fast-food industry is popular in India, the source of most of its innovation, and many major international chains are based there. The presence of multinational fast food chains like McDonalds, KFC, Pizza Express, Pizza Hut, Subway etc have somewhat catered to the high income, and higher middle segment. Therefore developing a niche as upscale fast-food restaurants. Multinational corporations such as these typically modify their menus to cater to local Indian tastes and most overseas outlets are owned by native franchisees to ensure that cultural, ethnic, and community values are taken care of. Additionally, multinational fast-food chains are not the only or even the primary source of fast food in most cities of India. Many regional and local chains have developed around the main cities of India (for example Karims in New-Delhi, Jumbo King & Chatkaas in Gujarat) to compete with international chains and provide menu items that appeal to the unique regional tastes and habits at comparatively low costs. In India, multinational chains are considerably more expensive; they usually are frequented because they are considered chic and somewhat glamorous and because they usually are much cleaner than local eateries. However much of the middle-income segment (which forms a major chunk of fast-food goers) prefers visiting local outlets that offer low cost fast food, hence more frequent visits.
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
Chapter-1
Marketing feasibility:
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
Population Pyramid of year 1991. Prepared from the census report of 2001, the selected part is our target population (15 to 60 years)
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
Population pyramid for the year 2001(above) and 2011(below), as we can see that the targeted population has increased, and every year new customers are entering out targeted segment. The area under the box becomes wider and wider every year.
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
As per the estimated of the population census the above stated pyramid will be representation the population of 2021. In this the targeted segment once again expanded. This is a positive result which results in the rising customer base for our business, the number of customers are increasing.
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
Income trends
McKinsley has estimated the above trend of the Household income Growth across India in one of his report named The Bird of Gold: The Rise of Indias Consumer Market. The trend favours our requirements, along with the population increase the household income level is also increasing, this shows that we are having positive results favouring our entry in the restaurant business.
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
themselves with the toys included in the premises. Many consumers see multinational fast food restaurants as symbols of the wealth, progress and well-ordered openness of Western society and therefore become trendy attractions in many cities around Pakistan, particularly among younger people with more varied tastes.
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
Proposed Menu
The proposed project is assumed to provide customers with a variety of fast food items as outlined in the following menu:
Broast Chicken Broast (Qtr.) Chicken Broast (Half) Chicken Broast (Full) Burgers Chicken Burger Chicken Cheese Burger Beef Burger Beef Cheese Burger Zinger Burger Sandwiches Chicken Sandwich Egg Sandwich Beef Sandwich Club Sandwich Price 65 125 250 Price 50 55 40 45 80 Price 55 40 45 80 Chinese Hot & Sour Soup (2 Servings) Hot & Sour Soup (4 Servings) Chicken Corn Soup (2 Servings) Chicken Corn Soup (4 Servings) Plain Rice Chicken Fried Rice Vegetable Fried Rice Egg Fried Rice Beef Fried Rice Beef Chilli (w/o rice) Chicken Chilli (w/o rice) French Fries (per plate) Cole Slaw Soft Drinks (Large) Soft Drinks (Regular) Price 75 140 75 140 40 80 60 70 80 75 85 Price 25 15 50 15
Based on the above the fast food restaurant can offer low cost combo meals to its customers for increased value. Following are the proposed combo deals that can be further modified to meet increasing demand:
Combos Combo Deal 1 Combo Deal 2 Combo Deal 3 Combo Deal 4 Family Deal 1 Family Deal 2 Jumbo Deal Items Zinger Burger / French Fries / Regular Drink Chicken Broast (Qtr.) / French Fries / Regular Drink Chicken Burger, Broast (Qtr.), French Fries, Regular Drink Club Sandwich / French Fries / Regular Drink Full Broast / Zinger Burger / Club Sandwich / French Fries (4) / Large Drink Zinger Burger (2) / Club Sandwich (2) / Broast (Half) / Large Drink / Fries (2) 5% discount on purchase above Rs. 1,000/Price 105 90 135 105 535 515
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
Chapter 2
Technical feasibility
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
Location
Not every food-service operation needs to be in a retail location, but for those that do depend on retail traffic like fast food outlets, here are some factors to consider when deciding on a location: Anticipated sales volume. The expected sales volume is 300 customers per day; a piece of land which can serve the purpose is suitable location for setting up building. Accessibility to potential customers. Location to which pedestal is near, as it is a fast-food restaurant, it should be located near the areas where corporate offices and factories are reachable, also the educational institutes should not be too far from the location The rent-paying capacity of your business. The rent paying capacity is determined by the cash flow of the business, the cash flow statement is mentioned in the end. Restrictive ordinances. As of now there is no restrictive ordinance that hindered the progress of the restaurant. Traffic density. As said before, the fast-food restaurant should be near the pedestal; also two aspects should be taken keen care of. - It should be located near the Corporate offices - It should not be too far from the educational institutes Visibility. Customer parking facilities. Parking facility is generally not required in a fast-food restaurant, but we are going to provide a parking facility which will require more land acquisition. Proximity to other businesses.
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
Neighbouring businesses may influence our store's volume, and their presence can work for us or against us. History of the site. Find out the recent history of each site under consideration before you make a final selection. Who were the previous tenants, and why are they no longer there? Future development. Check with the local planning board to see if anything is planned for the future that could affect your business, such as additional buildings nearby or road construction.
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
Layout
Layout and design are major factors in the restaurant's success. We need to take into account the size and layout of the dining room, kitchen space, storage space and counter. Typically, restaurants allot 40 to 60 percent of their space to the dining area, approximately 30 percent to the kitchen and prep area, and the remainder to storage and office space. Dining area. This is where well be making the bulk of our money, so we won't cut corners when designing our dining room. We have visited restaurants in our area and analyze the dcor. We watched the diners; they reacted positively to the dcor? The decor of the restaurant will be so designed that it will be comfortable for people in shifting their seats throughout their meals. Much of our dining room design will depend on our concept. It will help us to know that 40 to 50 percent of all sit-down customers arrive in pairs; 30 percent come alone or in parties of three; and 20 percent come in groups of four or more. To accommodate the different groups of customers, use tables for four that can be pushed together i n a r e a s where there is ample floor space. This gives yo u f l e x i b i l i t y in accommodating both small and large parties. Place booths for four to six people along the walls. Production area. Too often, the production area in a restaurant is inefficiently designed--the result is a poorly organized kitchen and less than top-notch service. Keep your menu in mind as you determine each element in the production area. You'll need to include space for receiving, storage, food preparation, cooking, baking, dishwashing, production aisles, trash storage, employee facilities and an area for a small office where you can perform daily management duties. Arrange your food production area so that everything is just a few steps away from the cook. Your design should also allow for two or more cooks to be able to work side by side during your busiest hours.
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
Step Three: With the floor plan in hand and a concept in mind, the next stage in the restaurant designers process is interior design. Sketches may depict colour schemes, f u r n i t u r e placement, window treatments , a rtisti c lighting and other aspects of the ambiance. This is also the part of the restaurant designers process where we consider paints, wallpapers, foliage and artwork
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
Employees
Choosing employees who will do a good job is not only important to the success of your business, but will also contribute to the image of your establishment, provided they are properly trained. There are several categories of personnel in the restaurant business: manager, cooks, servers, busboys, dishwashers and cleaners. When your restaurant is still new, some employees' duties may cross over from one category to another. For example, your servers may double as the cleaners. Be sure to hire people who are willing to be flexible in their duties.
Manager / Owner. The most important employee in most restaurants is the manager. The best candidate is owner or a person who has already managed a restaurant or restaurants in the area and will be familiar with local buying sources, suppliers and methods. The manager should have leadership skills and the ability to supervise personnel while reflecting the style and character of the restaurant. Chefs and cooks. When we start out, we'll probably need three cooks - two full time and one part time. But one lead cook may need to arrive early in the morning to begin preparing soups, bread and other items to be served that day. One full-time cook should work days, and the other evenings. The part-time cook will help during peak hours, such as weekend rushes, and can work as a line cook during slower periods, doing simple preparation. Cooking schools can usually provide you with leads to the best in the business, but look around and place newspaper ads before well hire. Customers will become regulars only if they can expect the best every time they dine at our restaurant. To provide that, we'll need top-notch cooks and chefs.
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
Servers. The servers will have the most interaction with customers, so they need to make a favourable impression and work well under pressure, meeting the demands of customers at several tables while maintaining a pleasant demeanour. There are two times of day for wait staff: very slow and very busy. Schedule your employees accordingly. The lunch rush, for example, starts around 11:30 a.m. and continues until 1:30 or 2 p.m. Restaurants are often slow again until the dinner crowd arrives around 6:30 to 7 p.m.
Monthly Salary (Rs.) 6,000 8,000 4,000 3,000 6,000 2,500 2,500 6,000 38,000 Total Salary (Rs.) 12,000 24,000 16,000 18,000 6,000 5,000 2,500 6,000 89,500
Designation / Type Owner Kitchen Supervisor Shift Supervisor (including reliever) Cook Servers Take Away Order Taker / Cashier Dishwasher Cleaner Guard (12 Hour) Total
Number 2 2 3 4 6 1 2 1 1 22
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
Details Dining Waiting Kids Play Kitchen & Preparation Office Stores Total
The proposed premises will be acquired on a rental basis with 6 month deposit and 6 months advance rent after which rent will be payable on a monthly basis. The monthly rent is approximately Rs. 50/ Sq Feet for the ground floor which would amount to Rs. 100,000 per month for the proposed fast food outlet (2,000 Sq Ft.) To allow for maximum space for dining and security concerns (Cash control) it is recommended that the owner should manage the reception counter as well as all cash handling emanating from the tables. Therefore a total of Rs. 50,000 would be required to erect the reception and cash counter along with the take-away order taking booth.
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
15
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
The typical fast food restaurant as outlined above would require the following machine / equipment for its operations: The restaurant is expected to entertain a minimum of 300 customers in a day, which requires a good seating layout to avoid any confusion and problems during rush hours. The following table gives the details of the dining tables and chairs that would serve approximately 100 customers (maximum capacity) at a time:
Item Details Dining Table Square (2X2) Chairs (Standard 14) Kitchen Cutlery Set Dining Cutlery* (Plate, Fork, Knife, Spoon, Glass) Air Conditioner Split Units (6 Ton) Hot Water Geyser Large Halogen Lights Wall Lights (Large) Portable Emergency Light Generator (1.5 KVA) Counter Chairs Office Table & Chair Set Waiting Chairs for Take Away Customers Total Quantity 25 100 2 150 2 1 25 4 4 1 2 1 5 322 Unit Price (Rs.) 6,000 1,500 2,500 150 31,000 20,000 250 1,500 2,500 90,000 1,500 10,000 1,500 168,400 Total Price(Rs) 150,000 150,000 5,000 22,500 62,000 20,000 6,250 6,000 10,000 90,000 3,000 10,000 7,500 542,250
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
Utilities Requirement
The following table presents the assumed breakup of utilities on a monthly basis: Utility Electricity Water Gas Telephone Total Monthly Charges (Rs.) 25,000 2,000 15,000 10,000 52,000
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
Chapter 3
Financial feasibility
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
Financial Charges
It is assumed that long-term financing for 5 years will be obtained in order to finance the fast food setup which would mainly include construction & dcor of Building, Purchase of machinery & equipment, purchase of inventory etc. This facility would be required at a rate of 15%) per annum with 60 monthly instalments over a period of five years. The instalments are assumed to be paid at the end of every month.
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
Cost of Capital
The cost of capital is explained in the following table:
Particulars Required return on equity Cost of finance Weighted average cost of capital Rate 20.0 % 15.0 % 17.5 %
The weighted average cost of capital is based on the debt/equity ratio of 50:50.
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
Burgers Chicken Burger Chicken Cheese Burger Beef Burger Beef Cheese Burger Zinger Burger 20 25 18 23 40 50 55 40 45 80 24 36 18 18 24 480 900 324 414 960 1200 1980 720 810 1920
Sandwiches Chicken Sandwich Egg Sandwich Beef Sandwich Club Sandwich 20 12 20 35 55 40 45 80 21 6 3 30 420 72 60 1050 1155 240 135 2400
Total
8040
16650
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
CHINESE
Chinese Hot & Sour Soup (2 Servings) Hot & Sour Soup (4 Servings) Chicken Corn Soup (2 Servings) Chicken Corn Soup (4 Servings) Plain Rice Chicken Fried Rice Vegetable Fried Rice Egg Fried Rice Beef Fried Rice Beef Chilli (w/o rice) Chicken Chilli (w/o rice)
Cost 25 50 25 50 12 20 18 18 20 30 35
Unit Sales 6 3 6 3 3 12 6 3 3 6 9
Total cost 150 150 150 150 36 240 108 54 60 180 315
Total sales 450 420 450 420 120 960 360 210 240 450 765
French Fries (per plate) Cole Slaw Soft Drinks (Large) Soft Drinks (Regular 250ml)
8 6 40 9
25 15 50 15 Total
5 5 10 375
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
Depreciation
All machines require routine cleaning and maintenance after every three months and an annual service which costs around 1% to 5% of the total cost depending upon the use of the machine and operator's skill. We have assumed an average of 2.5% of the depreciated cost as the annual maintenance cost. The Office Furniture & Equipment will be depreciated at the rate of 10% per annum according to the diminishing balance method for the projected period. Depreciation on Shop, Equipment, Machinery and Fixtures is assumed to be at the rate of 10% per annum based on the diminishing balance method for the projected period.
Key Assumptions
Item Sales Increase Increase in Cost of Raw Materials Increase in Staff Salaries Increase in Utilities (Electricity / Water / Gas) Increase in Rent Increase in Office Expenses Debt / Equity Ratio Depreciation o Shop Building & Fixtures o Kitchenware & Machinery o Furniture Equipment Annual Maintenance Cost Raw Food Inventory - Meat Raw Food Inventory Spices & Sauce Lease Period Lease Installments Financial Charges (Lease Rate) Tax Rate Assumption(s) 15 % per year 10 % per year 10 % per year 10 % per year 10 % per year 10 % per year 50 : 50 10 % per annum (Diminishing Balance) 10 % per annum (Diminishing Balance) 10 % per annum (Diminishing Balance) 2.5% of Written Down Value 3 Days 7 Days 5 Years Monthly 15 % per annum Assumed @ 25%
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
Income Statement
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya
Bankable Project report for Sighdhi: Always warm & Fresh Prepared by Rohan Mistry & Jatin Baraiya