Description
The document explaining business plan for starting a food joint or a restaurant.
MIRCH MASALA RESTAURANT
“MIRCH MASALA RESTAURANT” SHRI PUNI RAM NATH PREETI NATH DATE OF COMMENCEMENT 09/02/2012 EMAIL ID : [email protected] ADDRESS: GOROIMARI, AF STATION, DIST BALIPARA, TEZPUR, ASSAM CONTACT NO.: 9962094687
MIRCH MASALA RESTAURANT
“MIRCH MASALA RESTAURANT” SHRI PUNI RAM NATH PREETI NATH DATE OF COMMENCEMENT 20/10/2012 EMAIL ID : [email protected] ADDRESS: GOROIMARI, AF STATION, DIST BALIPARA, TEZPUR, ASSAM CONTACT NO.: 9962094687
EXECUTIVE SUMMARY
Purpose MIRCH MASALA – a family restaurant, will provide a unique combination of excellent food at value pricing with a fun and entertaining atmosphere. MIRCH MASALA is the answer to an increasing demand. The public (1) wants value for everything that it purchases, (2) is not willing to accept anything that does not meet its expectations, and (3) wants entertainment with its dining experience. In today's highly competitive environment, it is becoming increasingly more difficult to differentiate one restaurant concept from another. MIRCH MASALA does this by being the only high quality restaurant in the area which will also feature All Indian food, Tandoori, Fast food, Chinese food and Continental food cooked by well trained and experienced chefs. On weekends, buffet will be served at Rs.250 per head veg and non veg. with this concept we believe that this feature will ensure our success. Products and Services MIRCH MASALA will offer a broad variety of food and dishes. MIRCH MASALA will cater to all of its customers by providing each customer more attention and importance. All Indian food with Tandoori, Fast food, Chinese food and Continental food will be provided. The Market The area has recently experienced rapid growth. Many shops, restaurants have been set up. To come up with a good quality service, is an important task to retain in the market. This will establish a healthy, consistent revenue base to ensure stability of the business. In addition, tourist traffic is expected to comprise approximately 35% of
the revenues. High visibility and competitive products and service are critical to capture this segment of the market. We expect to catch the interest of a regular loyal customer base with its broad variety of dishes and qualities. We plan to build a strong market position in the town, due to mild competitive climate in the area. Financial considerations This restaurant business plan is prepared to obtain financing for the initial launch of this concept. The financing is required to begin work on kitchen design, architectural plans, manuals and recipe books, site selection, equipment purchases, and to cover expenses in the first year of business. The financing, in addition to the capital contributions from the owners, will allow MIRCH MASALA to successfully open and maintain operations through year one. The initial capital investment will allow MIRCH MASALA to provide its customers with a value driven, entertaining dining experience. MIRCH MASALA expects to raise 2,00,000 lacs of its own capital, and to borrow remaining guaranteed by the SBA as a three-year loan. This provides the bulk of the current financing required. MIRCH MASALA anticipates sales of about 3,00,000 lacs in the first year, 5,00,000 lacs in the second year, and 8,00,000 lacs in the third year of the plan. The company does not anticipate any cash flow problems. Financial plan includes : ? ? ? ? Profit and loss a/c Balance sheet Cash flow Business ratios
DESCRIPTION OF BUSINESS AND PRODUCT
MIRCH MASALA – a family restaurant, will provide a unique combination of excellent food at value pricing with a fun and entertaining atmosphere. The business will run under single owner and it is a part of hospitality and food service based. MIRCH MASALA will provide All Indian food, Tandoori, Fast food, Chinese food and Continental food cooked by well trained and experienced chefs. On weekends, buffet will be served at Rs.250 per head veg and non veg. with this concept we believe that this feature will ensure our success.The service and the product will be different from other competitors. Objectives MIRCH MASALA objectives for the first three years of operation include:
? ? ? ? ?
Growing one unit per year for the first three years of operation. Keeping food cost under 35% of revenue. Keeping employee labor cost between 16-18% of revenue. Averaging sales in each location between 3-4 million dollars per year. Maintaining tight controls on costs and operations by hiring a managing partner/proprietor for each location and utilizing automated computer/Internet control.
Mission MIRCH MASALA will strive to be the premier family and buffet restaurant in the local marketplace. We want our guests to have the total experience when visiting MIRCH MASALA. Not only will our guests receive a great meal, they will also be provided with a fun atmosphere. We will want the dining experience to be as pleasing to the senses as it is to the palate.
Our main focus will be serving quality food at a great value. We will feature a large selection of freshly-prepared food, most in full view of our guests. We will feature 100 items daily that are full of flavor and zest at an unbelievable price! Customer satisfaction is paramount. When approached by a customer with a request, our motto will be, "Yes is the answer; what is the question?" We will strive for broad appeal. We want to be the restaurant of choice for everyone: families and singles, young and old, male or female. Employee welfare will be equally important to our success. All will be treated fairly with the utmost respect. We want our employees to feel a part of the success of MIRCH MASALA. Happy employees make happy guests. We will combine menu variety, atmosphere, ambiance, and friendly staff to create a sense of "place" in order to reach our goal of over-all value in the dining/entertainment experience. Keys to Success The keys to the success of MIRCH MASALA are: 1. The creation of a unique, innovative, entertaining, mid-scale atmosphere that will differentiate us from the competition. 2. Execution of our primary goal to serve nothing but the highest quality food at unbelievably low prices in a clean, fun environment. We must deliver on this pledge 100% of the time, without exception. 3. Controlling costs at all times, in all areas. 4. Hiring the best people available, training, motivating and encouraging them, and thereby retaining the friendliest, most efficient staff possible.
MARKET ANALYSIS
Our focus is on meeting the demand of a regular local resident customer base, as well as a significant level of tourist traffic from nearby places. Market Segmentation We focuse on the middle- and upper-income markets. These market segments consume the majority of restaurant products. Local Residents We want to establish a large regular customer base. This will establish a healthy, consistent revenue base to ensure stability of the business. Tourists Tourist traffic comprises approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market. Market Needs The area is a defence and residential area. So restaurants and hotels are very much in demand. Mostly youngsters and teenagers visit restaurant quite often. As of now, the restaurants are very few and are in poor condition also. So establishing a new restaurant can attract more and more people. Local customers are looking for a high quality product in a relaxing atmosphere. They desire a unique, classy experience. In looking at our market analysis, we have defined the following groups as targeted segments. The only exception comes when we define our targeted segment for lunch. We firmly believe, and have witnessed, that a much broader appeal exists for this midday time slot because we have priced it so low. Below are our targeted market segments.
? ?
? ? ? ?
Age -- Seniors, Baby-Boomers, young married couples with children, and blue-collar workers of all ages. Family Unit -- We will appeal to young families with new babies or mature families with children under the driving age. Most of our family units will have two wage earners. Gender -- We will equally target both sexes with a slight skew for males due to their heavy consumption of non veg. Income -- We will appeal to the high side of low income individuals and to all in the middle income bracket. Occupation -- We will target the blue-collar worker, young professionals with a family. Education -- High school graduates, or individuals with some college.
COMPETITION ANALYSIS
Competition in the local area is somewhat sparse and does not provide nearly the level of product quality and customer service as MIRCH MASALA. Local customers are looking for a high quality product in a relaxing atmosphere. They desire a unique, classy experience. MIRCH MASALA will have broad customer appeal due to our casual family atmosphere, wide variety of food offerings,buffet on weekends and low price points. We will not only compete with the casual segment restaurants, but also with the family value steak restaurants. In competing against the casual theme restaurants, we will have the following advantages:
?
? ?
?
?
?
Lower price point for a complete meal. If our consumer is a steak lover, his MIRCH MASALA’S meal is almost half what he would pay at a theme restaurant. There will be no tipping at MIRCH MASALA, since we are self-service. This will reduce the actual customer cost of our dining experience by 10-15%. Speed of service will be instant: no waiting for a steak, salad, beverage, or dessert. Everything will be readily available: hot, juicy, fresh, and cooked as requested. Our portions will be "just right." Since we are "all-you-can-eat" the portion size meets the need, rather than a pre-determined amount meant to suit the "average" person. Variety is the name of our game. Guests will choose from over 100 different items prepared fresh daily. It is often difficult to meet the dining requests of each family member due to individual tastes. We will provide more entertainment than our competition. Our guests will view our meat-cutting cooler as they walk in; they will watch us cooking 7080 steaks at a time on our mesquite grill; and they will see us preparing and cooking their hot entrees, desserts, and salads. We want our guests to feel a part of the "MIRCH MASALA" dining experience!
STRATEGY AND IMPLEMENTATION
Our strategy is based on serving our niche markets well. The seniors, babyboomers, families with young children, blue collar workers, middle income individuals can all enjoy the dining experience at our restaurant. We are building an infrastructure so that we can replicate the product, the experience, and the environment across broader geographic lines. Concentration will be on maintaining quality and establishing a strong identity in each local market. The identity becomes the source of "critical mass" upon which expansion efforts are based. Marketing Strategy A combination of local media and local store marketing programs will be utilized at each location. Local store marketing is most effective, followed by radio, then print. As soon as a concentration of stores is established in a market, then broader media will be explored. We believe, however, that the best form of advertising is still "word-of-mouth." By providing an entertaining environment, with unbeatable quality at an unbelievable price in a clean and friendly restaurant, we will be the talk of the town. Therefore, the execution of our concept is the most critical element of our plan. Promotion Strategy We will employ three different marketing tactics to increase customer awareness of MIRCH MASALA. 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. The second marketing tactic will be Local Store Marketing (LSM). These will be low-budget plans that will provide community support and awareness for our facility. We plan on doing approximately two or three LSM programs per marketing quarter. The last marketing tactic will be local media. This will be the most costly and will be used sparingly to supplement where necessary.
doc_161916510.docx
The document explaining business plan for starting a food joint or a restaurant.
MIRCH MASALA RESTAURANT
“MIRCH MASALA RESTAURANT” SHRI PUNI RAM NATH PREETI NATH DATE OF COMMENCEMENT 09/02/2012 EMAIL ID : [email protected] ADDRESS: GOROIMARI, AF STATION, DIST BALIPARA, TEZPUR, ASSAM CONTACT NO.: 9962094687
MIRCH MASALA RESTAURANT
“MIRCH MASALA RESTAURANT” SHRI PUNI RAM NATH PREETI NATH DATE OF COMMENCEMENT 20/10/2012 EMAIL ID : [email protected] ADDRESS: GOROIMARI, AF STATION, DIST BALIPARA, TEZPUR, ASSAM CONTACT NO.: 9962094687
EXECUTIVE SUMMARY
Purpose MIRCH MASALA – a family restaurant, will provide a unique combination of excellent food at value pricing with a fun and entertaining atmosphere. MIRCH MASALA is the answer to an increasing demand. The public (1) wants value for everything that it purchases, (2) is not willing to accept anything that does not meet its expectations, and (3) wants entertainment with its dining experience. In today's highly competitive environment, it is becoming increasingly more difficult to differentiate one restaurant concept from another. MIRCH MASALA does this by being the only high quality restaurant in the area which will also feature All Indian food, Tandoori, Fast food, Chinese food and Continental food cooked by well trained and experienced chefs. On weekends, buffet will be served at Rs.250 per head veg and non veg. with this concept we believe that this feature will ensure our success. Products and Services MIRCH MASALA will offer a broad variety of food and dishes. MIRCH MASALA will cater to all of its customers by providing each customer more attention and importance. All Indian food with Tandoori, Fast food, Chinese food and Continental food will be provided. The Market The area has recently experienced rapid growth. Many shops, restaurants have been set up. To come up with a good quality service, is an important task to retain in the market. This will establish a healthy, consistent revenue base to ensure stability of the business. In addition, tourist traffic is expected to comprise approximately 35% of
the revenues. High visibility and competitive products and service are critical to capture this segment of the market. We expect to catch the interest of a regular loyal customer base with its broad variety of dishes and qualities. We plan to build a strong market position in the town, due to mild competitive climate in the area. Financial considerations This restaurant business plan is prepared to obtain financing for the initial launch of this concept. The financing is required to begin work on kitchen design, architectural plans, manuals and recipe books, site selection, equipment purchases, and to cover expenses in the first year of business. The financing, in addition to the capital contributions from the owners, will allow MIRCH MASALA to successfully open and maintain operations through year one. The initial capital investment will allow MIRCH MASALA to provide its customers with a value driven, entertaining dining experience. MIRCH MASALA expects to raise 2,00,000 lacs of its own capital, and to borrow remaining guaranteed by the SBA as a three-year loan. This provides the bulk of the current financing required. MIRCH MASALA anticipates sales of about 3,00,000 lacs in the first year, 5,00,000 lacs in the second year, and 8,00,000 lacs in the third year of the plan. The company does not anticipate any cash flow problems. Financial plan includes : ? ? ? ? Profit and loss a/c Balance sheet Cash flow Business ratios
DESCRIPTION OF BUSINESS AND PRODUCT
MIRCH MASALA – a family restaurant, will provide a unique combination of excellent food at value pricing with a fun and entertaining atmosphere. The business will run under single owner and it is a part of hospitality and food service based. MIRCH MASALA will provide All Indian food, Tandoori, Fast food, Chinese food and Continental food cooked by well trained and experienced chefs. On weekends, buffet will be served at Rs.250 per head veg and non veg. with this concept we believe that this feature will ensure our success.The service and the product will be different from other competitors. Objectives MIRCH MASALA objectives for the first three years of operation include:
? ? ? ? ?
Growing one unit per year for the first three years of operation. Keeping food cost under 35% of revenue. Keeping employee labor cost between 16-18% of revenue. Averaging sales in each location between 3-4 million dollars per year. Maintaining tight controls on costs and operations by hiring a managing partner/proprietor for each location and utilizing automated computer/Internet control.
Mission MIRCH MASALA will strive to be the premier family and buffet restaurant in the local marketplace. We want our guests to have the total experience when visiting MIRCH MASALA. Not only will our guests receive a great meal, they will also be provided with a fun atmosphere. We will want the dining experience to be as pleasing to the senses as it is to the palate.
Our main focus will be serving quality food at a great value. We will feature a large selection of freshly-prepared food, most in full view of our guests. We will feature 100 items daily that are full of flavor and zest at an unbelievable price! Customer satisfaction is paramount. When approached by a customer with a request, our motto will be, "Yes is the answer; what is the question?" We will strive for broad appeal. We want to be the restaurant of choice for everyone: families and singles, young and old, male or female. Employee welfare will be equally important to our success. All will be treated fairly with the utmost respect. We want our employees to feel a part of the success of MIRCH MASALA. Happy employees make happy guests. We will combine menu variety, atmosphere, ambiance, and friendly staff to create a sense of "place" in order to reach our goal of over-all value in the dining/entertainment experience. Keys to Success The keys to the success of MIRCH MASALA are: 1. The creation of a unique, innovative, entertaining, mid-scale atmosphere that will differentiate us from the competition. 2. Execution of our primary goal to serve nothing but the highest quality food at unbelievably low prices in a clean, fun environment. We must deliver on this pledge 100% of the time, without exception. 3. Controlling costs at all times, in all areas. 4. Hiring the best people available, training, motivating and encouraging them, and thereby retaining the friendliest, most efficient staff possible.
MARKET ANALYSIS
Our focus is on meeting the demand of a regular local resident customer base, as well as a significant level of tourist traffic from nearby places. Market Segmentation We focuse on the middle- and upper-income markets. These market segments consume the majority of restaurant products. Local Residents We want to establish a large regular customer base. This will establish a healthy, consistent revenue base to ensure stability of the business. Tourists Tourist traffic comprises approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market. Market Needs The area is a defence and residential area. So restaurants and hotels are very much in demand. Mostly youngsters and teenagers visit restaurant quite often. As of now, the restaurants are very few and are in poor condition also. So establishing a new restaurant can attract more and more people. Local customers are looking for a high quality product in a relaxing atmosphere. They desire a unique, classy experience. In looking at our market analysis, we have defined the following groups as targeted segments. The only exception comes when we define our targeted segment for lunch. We firmly believe, and have witnessed, that a much broader appeal exists for this midday time slot because we have priced it so low. Below are our targeted market segments.
? ?
? ? ? ?
Age -- Seniors, Baby-Boomers, young married couples with children, and blue-collar workers of all ages. Family Unit -- We will appeal to young families with new babies or mature families with children under the driving age. Most of our family units will have two wage earners. Gender -- We will equally target both sexes with a slight skew for males due to their heavy consumption of non veg. Income -- We will appeal to the high side of low income individuals and to all in the middle income bracket. Occupation -- We will target the blue-collar worker, young professionals with a family. Education -- High school graduates, or individuals with some college.
COMPETITION ANALYSIS
Competition in the local area is somewhat sparse and does not provide nearly the level of product quality and customer service as MIRCH MASALA. Local customers are looking for a high quality product in a relaxing atmosphere. They desire a unique, classy experience. MIRCH MASALA will have broad customer appeal due to our casual family atmosphere, wide variety of food offerings,buffet on weekends and low price points. We will not only compete with the casual segment restaurants, but also with the family value steak restaurants. In competing against the casual theme restaurants, we will have the following advantages:
?
? ?
?
?
?
Lower price point for a complete meal. If our consumer is a steak lover, his MIRCH MASALA’S meal is almost half what he would pay at a theme restaurant. There will be no tipping at MIRCH MASALA, since we are self-service. This will reduce the actual customer cost of our dining experience by 10-15%. Speed of service will be instant: no waiting for a steak, salad, beverage, or dessert. Everything will be readily available: hot, juicy, fresh, and cooked as requested. Our portions will be "just right." Since we are "all-you-can-eat" the portion size meets the need, rather than a pre-determined amount meant to suit the "average" person. Variety is the name of our game. Guests will choose from over 100 different items prepared fresh daily. It is often difficult to meet the dining requests of each family member due to individual tastes. We will provide more entertainment than our competition. Our guests will view our meat-cutting cooler as they walk in; they will watch us cooking 7080 steaks at a time on our mesquite grill; and they will see us preparing and cooking their hot entrees, desserts, and salads. We want our guests to feel a part of the "MIRCH MASALA" dining experience!
STRATEGY AND IMPLEMENTATION
Our strategy is based on serving our niche markets well. The seniors, babyboomers, families with young children, blue collar workers, middle income individuals can all enjoy the dining experience at our restaurant. We are building an infrastructure so that we can replicate the product, the experience, and the environment across broader geographic lines. Concentration will be on maintaining quality and establishing a strong identity in each local market. The identity becomes the source of "critical mass" upon which expansion efforts are based. Marketing Strategy A combination of local media and local store marketing programs will be utilized at each location. Local store marketing is most effective, followed by radio, then print. As soon as a concentration of stores is established in a market, then broader media will be explored. We believe, however, that the best form of advertising is still "word-of-mouth." By providing an entertaining environment, with unbeatable quality at an unbelievable price in a clean and friendly restaurant, we will be the talk of the town. Therefore, the execution of our concept is the most critical element of our plan. Promotion Strategy We will employ three different marketing tactics to increase customer awareness of MIRCH MASALA. 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. The second marketing tactic will be Local Store Marketing (LSM). These will be low-budget plans that will provide community support and awareness for our facility. We plan on doing approximately two or three LSM programs per marketing quarter. The last marketing tactic will be local media. This will be the most costly and will be used sparingly to supplement where necessary.
doc_161916510.docx