You are on page 1of 63

Management Research

Project and Presentation


A comprehensive management project report containing a primary research of the market in order to identify a profitable business opportunity and establish Rendezvous Restaurant.

Submitted by Anita Johnson 11/2/2010

Contents
Introductory Page ........................................................................................................................6 Executive Summary ....................................................................................................................7 Environmental and Industry Analysis ......................................................................................8 Industry Analysis ....................................................................................................................8 Licensing ................................................................................................................................8 Sources of Resources Required ...............................................................................................9 Future Trends & Strategic Opportunities ............................................................................... 10 Pest Analysis for Rendezvous Restaurant .............................................................................. 10 Political Factors................................................................................................................. 10 Economical Factors ........................................................................................................... 10 Social Factors .................................................................................................................... 10 Technological Factors ....................................................................................................... 11 SWOT Analysis for Rendezvous Restaurant .......................................................................... 11 Strength ............................................................................................................................. 11 Weakness .......................................................................................................................... 11 Opportunity ....................................................................................................................... 11 Threat ................................................................................................................................ 11 Competitive Comparison ....................................................................................................... 11 Target Market Segment Strategy ........................................................................................... 13 Market Segmentation......................................................................................................... 13 Industry structure .................................................................................................................. 13 Threat of Entry ...................................................................................................................... 14 Bargaining Power of Suppliers .............................................................................................. 15 Bargaining Power of Buyers ..................................................................................................15 Development of Substitute Products or Services .................................................................... 15 Rivalry among Competitors...................................................................................................15 The structure of competition ................................................................................. 15

The Value Chain ................................................................................................................... 16 Description of the Venture ........................................................................................................ 19 Company Summary ............................................................................................................... 19
Page 2 of 63

Rendezvous Restaurants start-up summary........................................................................... 19 Objectives ............................................................................................................................. 20 Mission .................................................................................................................................20 Keys to Success..................................................................................................................... 21 Company Locations and Facilities ......................................................................................... 21 Products ................................................................................................................................ 22 Product Description ............................................................................................................... 22 Sales Literature ..................................................................................................................... 25 Sales Program ....................................................................................................................... 25 Technology ........................................................................................................................... 26 Future Products ..................................................................................................................... 26 Value Meal ........................................................................................................................ 26 Private Parties ................................................................................................................... 26 Services.................................................................................................................................26 Service Business Analysis ..................................................................................................... 27 Future Services...................................................................................................................... 27 Market Analysis Summary ........................................................................................................ 27 Market Needs ........................................................................................................................ 28 Market Growth ...................................................................................................................... 29 Operational Plan........................................................................................................................ 29 Information Technology ........................................................................................................ 30 Manufacturing ....................................................................................................................... 30 Machinery and Equipment ..................................................................................................... 30 Physical Plant ........................................................................................................................ 31 Supplier Contact .................................................................................................................... 31 Facilities................................................................................................................................ 31 Staff ...................................................................................................................................... 31 Fulfilment ............................................................................................................................. 32 Customer Satisfaction............................................................................................................ 32 Marketing Plan & Strategy ........................................................................................................ 32 Strategic Marketing Processes ............................................................................................... 33
Page 3 of 63

Four Ps ................................................................................................................................ 38 Product .............................................................................................................................. 38 Price ..................................................................................................................................38 Place .................................................................................................................................40 Promotion.......................................................................................................................... 40 Distribution ....................................................................................................................... 40 Ansoff product-market growth matrix- strategic tool ............................................................. 40 Market Development ............................................................................................................. 41 Product Development ............................................................................................................ 41 Diversification....................................................................................................................... 41 Market Penetration ................................................................................................................ 41 Marketing Objectives ............................................................................................................ 42 Marketing Strategy ................................................................................................................ 42 Branding ............................................................................................................................... 42 Positioning ............................................................................................................................ 43 Training & Development of the staff ..................................................................................... 43 Cost of Training and development of staff ......................................................................... 44 Marketing Implementation .................................................................................................... 45 Organisational Plan ................................................................................................................... 45 Organisational Structure ........................................................................................................ 45 Levels of Hierarchy ............................................................................................................... 45 Organisational Chart ............................................................................................................. 46 Form of Ownership ............................................................................................................... 46 Management-team background .............................................................................................. 46 Risk Assessment ....................................................................................................................... 47 Recommendations ............................................................................................................. 47 Financial Plan ........................................................................................................................... 48 Running Expenses per year ...................................................................................................49 Cost....................................................................................................................................... 50 Break even Analysis: ............................................................................................................. 50 Internal Rate of Return .......................................................................................................... 52
Page 4 of 63

Projected Cash Flow.............................................................................................................. 53 Projected Balance Sheet ........................................................................................................ 54 Business Ratios ..................................................................................................................... 55 Timescale for management and implementation .................................................................... 57 Monitoring & Evaluating Progress ............................................................................................ 58 ISO 9000 (Quality Audit System) .......................................................................................... 58 Scope .................................................................................................................................... 58 Quality Policy ....................................................................................................................... 58 Quality management system ..................................................................................................59 Documentation requirements .................................................................................................59 Control of records ................................................................................................................. 59 Responsibility and authority ..................................................................................................60 Management Review ............................................................................................................. 60 Resource management ........................................................................................................... 61 Design and development ....................................................................................................... 61 Production and service provision ........................................................................................... 61 Monitoring and measurement ................................................................................................ 61 Corrective action ................................................................................................................... 62 Preventive action ................................................................................................................... 62 Exit Plan ...................................................................................................................................62 Bibliography ............................................................................................................................. 63

Page 5 of 63

Introductory Page
Rendezvous Restaurant 3-673/5, Panjagutta Crossroad Near Hyderbad Central, Hyderabad,Andhra Pradesh-500082 (040) 2771987,9652228681 www.rendezvousrestaurant.com Description of Business As the Project Analyst at Mingling Ideas and Research I would like to suggest some inputs like the business plan, market analysis, competitive analysis and business feasibility of the restaurant to Mr.Imran who wants to open up a new restaurant; the total budget for his new venture is Rs. 40 lakh. He has in-depth knowledge of restaurant but still requires some inputs. As the Project Analyst the location that is been chosen for the restaurant is Panjagutta Circle, near Hyderabad Central. The name of the restaurant is Rendezvous Restaurant. It is a multi-cuisine restaurant. This area is been selected because it is famous for shopping as it is surrounded with big showrooms and malls like Hyderabad Central and many more. It is also closer to the call centers as it is the central point where people usually stop their cabs and have their snacks at this location, where there are locally owned idly walas (vendors) who sell idlys and other stuff to the people. There is huge crowd from evening six till morning four at this location which can be profited from. Rendezvous Restaurant is an eating enterprise focusing on healthy, nutritious, and snack-type fast food including Biryani to the local downtown area. Rendezvous Restaurant will provide a combination of excellent food at worth pricing, with fun packaging and atmosphere. Rendezvous Restaurant is the answer to an increasing demand for snack-type fast food, to be consumed in the restaurant or while window shopping and walking around inside a shopping mall and the specialty of this restaurant are the three moving vehicles (Mobile Centres) which moves across the cities of Banjara Hills, Hi-tech City and Charminar providing all kinds of snack-type fast food with fun packaging and atmosphere. The snacks include Kababs, rolls, steaks etc with unique dipping sauces. The innovative packaging will be more entertaining than our competitors; a single plate with a cup reserved for dipping sauce.

Page 6 of 63

Executive Summary
Rendezvous Restaurant is a locally owned multi-cuisine restaurant that would be positioned as a national restaurant through the creative approach to the company's image and detail production. Rendezvous Restaurant is an eating establishment focusing on healthy, nutritious, and snack type fast food (veg & non veg fries) to the local downtown area. Rendezvous Restaurant will provide a combination of excellent food at value pricing, with fun packaging and atmosphere. Rendezvous Restaurant is the answer to an rising demand for snack-type fast food, to be consumed in the restaurant or while window shopping and walking around inside a shopping mall and the specialty of this restaurant are the three moving vehicles (Mobile Centres) which moves across the cities of Banjara Hills, Hi-tech City and Charminar providing all kinds of snack-type fast food with fun packaging and atmosphere. In today's highly competitive environment, it is becoming increasingly difficult to differentiate one fast food outlet from another. Entering into this market would not be easy; the industry is highly competitive, with periodic overcapacity, low margins, and low entry/exit barriers. In addition, there are a large number of substitutes, and the suppliers to this market have a great deal of authority. In order to overcome these issues, the company has acquired an excellent locality in the downtown area and intends to provide a suitably upscale environment to draw in the company's main target market segment, the business professionals. The company would seek to provide these customers with the maximum number of services to create the greatest sales volume during the company's peak hours of operation. The company will have a comprehensive marketing, advertising, and promotion campaign that will maximize word-of-mouth marketing and will consist of radio, printed material, billboards and discounts. The main priority is to establish one main outlet near Panjagutta Circle besides the Panjagutta Police Station where there is a huge crowd of people stopping their cabs and having their snacks during night times when they are so tired working in the call center and also three different Mobile Centres that is the three moving vehicles which moves across the cities of Jubilee Hills, Hi-tech City and Charminar. This Mobile Centres are chosen because they are plenty of call centers located at Banjara Hills and Hi-tech City where the employees are tired of having the same food everyday which is available in their cafeteria and go for ordering food from outside. Charminar is a place where people go for shopping every day and there is huge crowd even after 12 in the midnight. Later, our effort would be a further development of more retail outlets in the surrounding area. The initial capital investment allows Rendezvous Restaurant to provide its customers with a value-driven, entertaining experience through the originality of its founders. Rendezvous Restaurant will attract youngsters to bring their friends and family with our innovative environment, fresh-cut fries, and selection of unique dipping sauces.

Page 7 of 63

Environmental and Industry Analysis Industry Analysis Now-a-days the Restaurant industry is becoming more and more competitive, the standard of living changes of the restaurant is created by the modern living continue to fuel the stable growth. Many people have less time, resources, and ability to cook for themselves so they prefer eating outside. These days trends are very important and are well placed for the current interest in lighter, healthier foods at moderate to low prices. Licensing The National Restaurant Association of India (NRAI) was set up in 1982 and is the leading association for stand alone and chain restaurants. It offers Individual and Corporate membership for all the restaurants. The union is headed by its President Mr. Samir Kuckreja, MD & CEO Nirulas and two Vice Presidents Mr. Vipin Luthra, MD - Geoffreys and Mr. Anjan Chatterjee, Founder Main Land China, with other prominent members form leading individual domestic and international restaurant chains. Headquartered in Delhi, it has a Pan India presence with over 1000 members in 20 different states. The aim of the association is to represent, educate and promote exclusively the independent restaurant owners and operators in India. To run a restaurant many types of licence should be taken, some are specified below:
Nature of the License Issuing Authority Mandatory / Optional

Health / Trade License

Municipal Corporation / Health MANDATORY Department of the concerned State

Eating House License

Police Commissioner Licensing MANDATORY

Mobile Centres License

Excise Commissioner

MANDATORY for service

Approval / of Restaurants

Re-Approval Department of Tourism of MANDATORY - Only Government of India in the obtaining L 4 License State concerned / Delhi Government Concerned authority in the state. MANDATORY For Delhi it is DPCC

for

Environmental Clearance

Page 8 of 63

NOC from Fire Department

Fire Department of the concerned MANDATORY state.

Lift License

Concerned authority Electrical If lift is to be installed Inspector, Office of the Labour Commissioner required to be Any insurance company Consult your insurance company. MANDATORY MANDATORY MANDATORY MANDATORY

Insurance taken.

Public Liability Product Liability Fire Policy Building & Asset

There are other insurance policies also which are not mandatory but useful Nominations under PFA Act Director Prevention of 1954 Section 17 (2) and Rule Adulteration of the State 12 B of the Rules 1955 Shop and Establishment Act Food MANDATORY To be applied in the prescribed form.

As prescribed in the Act and MANDATORY as applicable to the state Municipal Committee, Corporation of the City MANDATORY

Signage License

(Source : http://www.nrai.org/ind_updates.asp?id=4) Sources of Resources Required People: A consultant is hired to train the staff of Rendezvous Restaurant. Methods: A strict adherence to the regulations specified by The National Restaurant Association of India would be followed while devising the systems and processes in Rendezvous Restaurant. Machines: Equipments would be taken from shiva aplliances. Materials: Materials would be taken from the Great Kebab Factory. Measurements: Data generated from the process that are used to evaluate its quality

Page 9 of 63

Environment: The conditions, such as location, time, temperature, and culture in which the process operates.

Future Trends & Strategic Opportunities The present living of the people creates more demands, and they could be obliged to eat more meals away from home. This is the first step in conducting market analysis. This would help in identifying the strengths and weaknesses and the opportunities and threats for Rendezvous Restaurant. The thinking and discernment of the customers has also changed towards the restaurant. Customers not only look for good quality of food but also good ambience, service and atmosphere. As Restaurant industry is growing rapidly, even the customers demands are rising and they look for something different not the same always. Many players are expanding their businesses like the Bawarchi Restaurant, Hyderabad House, Kababinn, Astoria Restaurant etc. Now the trend has changed in the consumption pattern, customers intention is not just to have food but they also look for luxury services, better entertainment etc. and now they look for fast food, Chinese, continental etc. The Consumers might spend a greater proportion of their food away from home. For Rendezvous Restaurant Independent operators and entrepreneurs will be the main source of new restaurant concepts. All the Nutritional concerns are critical at all types of foodservice operations, and food flavours are important. Environmental concerns receive amplified attention.

Pest Analysis for Rendezvous Restaurant Political Factors The Government regulations regarding hygiene, health and food regulations, food standards, etc for Rendezvous Restaurant and the Economic policies of government regarding the restaurant industry and running eating joint; these may include licenses because the store is open from 6.00 pm to 3.00 am, inspections by Health and Food Ministry departments, etc. Economical Factors The rate of interest for Rendezvous Restaurant would impact the cost of capital because it is directly proportionate to the cost of capital. The economic trends would help to decide the marketing strategy. The rate of inflation would determine the rate of remuneration of employees which would directly affect the price of Rendezvous Restaurants products. Social Factors The eating habits of the people differ from place to place and the chosen business environment affects the marketing decisions of Rendezvous Restaurant. Therefore knowing these cultural

Page 10 of 63

truths about the business environment may decide whether or not you'll be able to do any business there. Technological Factors A good technical infrastructure would lead to better production, procurement and distribution logistics, resulting in reduced wastage and lower costs for Rendezvous Restaurant. Sound technology would be a decisive factor for food technology innovation, better presentation, more effective business marketing, etc. SWOT Analysis for Rendezvous Restaurant Strength Good location with ample space for parking Home delivery services will be provided Variety of snacks (veg & nonveg) with normal price Good air conditioning system. Sauces in more than five different flavours. Three mobile centres distributing parcels at three different locations. Weakness Training of new staff members and employees The restaurant has no market presence or reputation. Opportunity Hiring and training new employees according to the requirement. It is completely new market to capture and gain market share Rendezvous Restaurant can become a famous restaurant in that area Threat Existing player can come up with new menu or can lower their price New government policies can be more difficult to handle as Blue Whale is a new player. More advertisement campaign from the competitors can avoid the customers from going toward new restaurant.

Competitive Comparison Rendezvous Restaurant has several advantages over its leading competitors:

The three moving vehicles at three different mobile centres distributing the parcels with fun packaging and atmosphere. Unique "fusion" concept of dipping sauce. We expect a high degree of enthusiasm and offer a fun store with friendly staff that reflects the company's youthful and energetic culture. Supporting merchandise items that support the company's brand building.
Page 11 of 63

Our Veg and Non Veg fries are made 100% fresh, compared to most fast food outlets that use frozen fries. Our dipping sauce is also made fresh without preservatives.

Our innovative packaging will be more entertaining than our competitors; a single plate with a cup reserved for dipping sauce. Rendezvous Restaurant will have broad customer demand due to our casual family ambience, wide variety of food offerings, and low price points. We will provide more entertainment than our competition. Our guests would view our meat-cutting cooler as they walk in; they will watch us cooking 70-80 steaks and kebabs 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 Rendezvous Restaurants" dining experience! We will serve better quality food than our competitors. Nightly, we will offer steaks and kebabs with reasonable price. With our higher dinner price points, we will feature better quality items on the buffet. Not only can we afford to do this, but it will also limit the amount of steaks that our guests will consume per visit. Even though some guests will eat 4-5 steaks, the average still remains at 10 steaks per guest.

We will offer a lower price point at dinner than our competition and feature a fresh Rendezvous Specialty kababs, chicken and mutton steaks, hot and juicy off our display grill, plus the buffet! Our guest could pay the same price at a different store, but only receive a burger, fries, and a drink. Our surroundings will be more entertaining than our competitors'. Our food will be fresher since we will close at 3:00 p.m., and longer evening hours. Our guests will not encounter service problems. Our competitors still feature servers who bring beverages, extra plates, and dinners if ordered. Their servers, which traditionally handle as many as 10 tables at a time, frequently have trouble being everywhere at the same time. With Rendezvous Restaurant, everything is out front and ready for our guests. We will explain our service policy up front and, therefore, never let them down. There will be no confusing menu board when guests arrive at our restaurant. One price will be stated, with everything included. Some of our competitors have 10-foot-long menu boards which are overwhelming to customers and difficult to read. Others try to up-sell and ask too many questions while reeling off specials of the day. After all is said and done, they sell 90% buffets and 10% dinners. We've made it simple: one price, everything included. And we've put steaks and Kababs back on the menu where it belongs -- right on top! We will be able to staff our restaurant with 25% fewer employees than our competition. With no need for servers, only one cashier, shorter operating hours, and out-front servicing of our food, we can efficiently run with a reduced staff. There is no tipping at Rendezvous Restaurant, since we are self-service. This will reduce the actual customer cost of our dining experience by 10-15%.

Major competitors include Ohris Jiva, Chutneys, Seventh Heaven Restaurant, The Terracebay bar and Restaurant etc. Furthermore, there are a large number of substitute suppliers from other
Page 12 of 63

restaurants like Ohris Jiva that offer pre-packaged dinner to the customers. Drawing any sort of general conclusions from such a vast array of competitors is difficult, but you can say that just about every conceivable product or service idea, and just about every taste is encompassed within this group. Restaurant Clean Value Yes Yes Yes Yes Merchandising Hang out Yes Yes Yes Yes Yes No No Yes Simple Yes Yes Yes Yes Fresh Yes Yes Yes No Cool Yes Yes Yes Yes Pop Culture Yes No No Yes

Rendezvous Yes Restaurant

Ohris Jiva Yes Seventh Yes Heaven Terracebay Yes

Target Market Segment Strategy Market Segmentation Rendezvous Restaurant intends to cater to the vastness of teenagers and youngsters all over India. We have chosen this group for several important reasons. It is our goal to be "the extraordinary fast food place" and we believe that the age group from 15 to 35 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 widen their budgets. First and foremost is the sheer size. With our restaurants seating almost 50 people, we will need a broad base and mass appeal to fill them. It is our goal to have "something for everyone" every day on our menu. Our secondary market segments are the people working in night shifts, call centers and BPOs who simply can pick up their parcel from the moving vehicles which would stop at a particular point at a given time. Lastly, our market segments are targeting young customers who do a lot of window shopping at malls like Hyderabad Central etc. This group will see a large growth in their numbers over the next decade. If we can continue to meet and exceed their expectations, we should witness same store sales growth over this time period. We will; however have to stay focused on their changing needs and menu choices to maintain their loyalty. For the most part, this group is in a hurry, due to heavy time demands at work and home, so our buffet style of service suits them to a "T." Industry structure An industry is a group of firms that market products which are close substitutes for each other. Some industries are more lucrative than others. Why? The answer lies in perceiving the dynamics of competitive structure in an industry. The most influential analytical model for assessing the nature of competition in an industry is Michael Porter's Five Forces Model, which is described below:

Page 13 of 63

Figure 1(Porters Five Forces)

Porter explains that there are five forces that determine industry attractiveness and long-run industry profitability. These five "competitive forces" are o o o o o Threat of Entry Bargaining Power of Suppliers Bargaining Power of Buyers Development of Substitute Products or Services Rivalry among Competitors

Threat of Entry Any firm should be able to go through or exit a market, and if free entry and exit exists, then revenue always should be insignificant. Industries possess characteristics that protect the high level profits of firms in the market and inhibit further rivals from entering the market. Barriers to entry are unique industry characteristics that define the industry. It requires large capital requirements or the need to gain economies of scale quickly. Strong customer loyalty or strong brand preferences. There is a Lack of adequate distribution channels or access to raw materials. Now a day there is huge completion in every field. Restaurant industry is fast growing industry and there are lots of chances for new entrants to enter into the market. It might be possible that by seeing the accomplishment of the Rendezvous Restaurant others might be motivated to enter in to the restaurant industry. If the selected business has huge amount and already fulfilled lots of legal requirements than new entrants can be prevented from entering into the market.

Page 14 of 63

Bargaining Power of Suppliers Suppliers, if powerful, can exercise an influence on the producing industry, such as selling raw materials at a high price to capture some of the industrys profits. In every segment suppliers plays an important role as they are the one who will be providing the raw material to the manufacturer for the future operation. For restaurant industry there are plenty of suppliers that are available in the market. As Rendezvous Restaurant will be purchasing in bulk quantity there will be less bargaining power of suppliers. Bargaining Power of Buyers The power of buyers is the impact that customers have on a producing industry. Customers are concentrated, large or buy in volume. The products being purchased are standard or undifferentiated making it easy to switch to other suppliers. Customers purchases represent a major portion of the sellers total revenue. Customers as buyers come in less number and their main intention is to have pleasure with minimum amount and Rendezvous Restaurant will be providing value for their money with reasonable prices and there will be no chances of bargaining. Bargaining power of buyers will be less and in any restaurant bargaining does not take place as the customers are small in number. Development of Substitute Products or Services In porters model, substitute products refer to products in other industries. A threat of substitutes exists when a products demand is affected by the price change of the substitute product. It impacts an industry through price competition. Products from one business can be replaced by products from another. Rendezvous Restaurant offers snack-type fast food with unique dipping sauces which is available in more than five flavours that is undifferentiated; customers can easily switch away from them to a competitors restaurants with few consequences. In market there are many new varieties which is been getting popular. Day to day the demands of the customers is increasing and the threats of the substitute is also increasing. It is not only in restaurant sector the threat of substitute is more but also in other field. Rendezvous Restaurant will surely have the threats of the substitute food varieties but still Rendezvous Restaurant with its unique service and variety of food conquer the market share. Rivalry among Competitors The strength increases as the number of competitors increases or they become equal in size. Demand for the industrys products declines or industry growth slows. Fixed costs or barriers to leaving the industry are high. The intensity of rivalry between competitors in an industry will depend on: The structure of competition - for example, rivalry is more intense where there are many small or equally sized competitors; rivalry is less when an industry has a clear market leader The structure of industry costs - for example, industries with high fixed costs encourage competitors to fill unused capacity by price cutting

Page 15 of 63

Degree of differentiation - industries where products are commodities (e.g. steel, coal) have greater rivalry; industries where competitors can differentiate their products have less rivalry Switching costs - rivalry is reduced where buyers have high switching costs - i.e. there is a significant cost associated with the decision to buy a product from an alternative supplier Strategic objectives - when competitors are pursuing aggressive growth strategies, rivalry is more intense. Where competitors are "milking" profits in a mature industry, the degree of rivalry is less Exit barriers - when barriers to leaving an industry are high (e.g. the cost of closing down factories) - then competitors tend to exhibit greater rivalry. In case of Rendezvous Restaurant there is less competition and hence the profit margin will be high. Furthermore to reduce the rivalry among competitors Rendezvous Restaurant will employ a variety of tactics like providing unique service at three different locations through moving vehicles, discounts, small gifts will be given to the children so that they would love to visit the restaurant again. These are some of the tactics which Rendezvous Restaurant will be using to compete with its competitors. The Value Chain To examine the definite activities through which restaurants can create a competitive advantage, it is useful to model the restaurant as a chain of value-creating activities. Michael Porter identified a set of consistent generic activities common to a wide range of firms. The resulting model is known as the value chain and it is prescribed below.

Page 16 of 63

Value Chain (Source: http://enduragement.wordpress.com/2008/06/17/value-chain-as-a-basis-of-critical-success-factoranalysis/)

The objective of these activities is to create value that exceeds the cost of providing the product or service, thus generating a revenue margin. Inbound Logistics: This includes the warehousing of raw materials, and inventory control of input materials, receiving, distribution to manufacturers. Rendezvous Restaurant provides healthy nutritious fast food to the entire local down town area of Panjagutta Circle by providing them with fresh cut fries not preserving it for a longer period of time. The warehouse for the restaurant will be beside the kitchen so that any required item can be easily available within no time. Kitchen is not far from the store room hence distribution will be very easy. Operations: They are the value-creating activities that convert the inputs into the final products. Rendezvous Restaurants whole responsibility of processing which means preparing the food will be of chief chef and its assistants. Instantaneously after receiving the order from the waiter with in no time they will prepare the dish. The kitchen assistants will prepare the required raw material like cutting the vegetables, putting the spices on the meat so at the time of preparation it becomes easy to fry directly. Kitchen is the place where most of the process of operation takes place. Chef will be responsible for all the operations carried out in the kitchen. He will also responsible for maintaining quality food, as entire reputation of the restaurant is depended on the quality of food served to the customer. Chef is also responsible for the cost cutting in the operation carried out in the kitchen. For instance, making the best use of oil and other thing which are costlier.
Page 17 of 63

Outbound Logistics: They are the activities required to get the completed product to the customers, including warehousing, order fulfilment, etc. The restaurants delivery of the products would be through three Mobile Centres which moves across the cities of Hyderabad. After placing order to the chef, waiter has to wait for some time and when the dishes are ready waiter can easily take it and deliver/serve to the customers. Marketing & Sales: They are those activities connected with getting buyers to purchase the products, including channel selection, promotion, pricing, etc. Eventually, it is very difficult to do marketing for a restaurant as the competition is high. Rendezvous Restaurants will be marketing for increasing sales and also for making awareness among the people about the newly opened restaurant in that area. The three Mobile Centres itself acts as the tool of advertising for the restaurants. Many marketing tools and techniques will be used for marketing. Mostly the sales of the restaurant entirely depend on the service delivered to the customer and Rendezvous Restaurants will take care of the customer satisfaction level. For marketing one team has been setup and they will be provided with some funds and will be given some realistic target so that sales of the restaurant can be increased (Sales target can be achieved). One more activity that will be implemented in the restaurant is taking feedback of the customer. Feed back of the customers will let us know the needs and changing taste of the customers. After knowing, restaurant can try to provide the customer with the taste and different dishes they like to have on their next visit. Service: Activities are those that uphold and augment the products value including customer support, repair services, etc. Service it the most perceptive in restaurant industry. A consultant is hired from outside to train the staff of the restaurant for two to three weeks and later on the head chef would be responsible in training the staff of the restaurant. Providing the customer with the quality service will be main aim of the Rendezvous Restaurant. Mobile Centres serves as the value added service to the customers. Firm Infrastructure: Infrastructure of the Rendezvous Restaurants will be of high class with good lighting facility and seating arrangements. Tables and chairs will be of good quality. Human Resource Management: Rendezvous Restaurants marketing manager Mr. Pavan will take care of Human Resource Management. He will be responsible for the recruitment and selection process. He would select the candidate based on the skills of the candidate and basic qualification of the candidate. After selecting the candidate the consultant from outside would train them according to the requirement of the restaurant. The whole responsibility of the development of the staff will be on management.
Page 18 of 63

Technology development: Technology plays a fundamental role in development of a business. In every field of business technology is widely used. In restaurant business, kitchen equipment has been improved through help of the technology for instance big refrigerators, high pressure stove, micro wave oven and different types of pan etc. Procurement: The list of all the equipment required are listed and will be purchased by Mr. Pavan. All the material and equipments will be purchased as per the need.

Description of the Venture


Company Summary What is Rendezvous Restaurant? Rendezvous Restaurant is a multi-cuisine restaurant which sells veg and non veg fries, kababs, Biryani and similar fast food items with a choice of sauce. The outlet also provides excellent and friendly customer to support the ambience of fun, energetic and youthful lifestyle through moving vehicles (Mobile Centres) at three different locations. Youthful and fresh surroundings Rendezvous Restaurant imitates successful establishments, which represent the majority of our core target market, between 15years of age and above. Our store will feature display cooking of our featured Fries from cutting to frying. Our customers will also be able to read our in-house brochures in regards to all knowledge about Fries and our featured sauces. Our store will be decorated with fast food setting, such as a bright counter and display menu on the wall. Fresh Quality food Each store will offer nothing but freshly fried veg and non veg fries, kababs and variety of unique blend sauces, Biryani, etc. All served with old-fashioned home-style care. Open everyday Our store is open every day from 6 Pm to 3 am. Variety A different selection of sauces will be featured along with different flavours to accompany our fries. Rendezvous Restaurants start-up summary Rendezvous Restaurant start-up expenses cover a wide range of items and below are the detailed reasoning behind these estimates.

Page 19 of 63

Kitchen Design As the kitchen needs to supply our products for the mobile units and the main restaurant, the plans for our kitchen have been made to extensive and top of the line. The structure and layout of the kitchen is to be made by consulting the chefs and designing an operational plan that would meet the demands and ensure minimal wastage of time and energy. Architectural Plans The architectural plan of our restaurant needs to be accommodating the above mentioned large kitchen, dining area seating 50 people at a time and also other supporting facilities like washrooms. The designs need to be in accordance with the main theme of the restaurant i.e. youthful and exuberance personified. Travel -- Travel expenses for Rendezvous Restaurant to monitor construction, hire, and train staff. Manuals/Handbooks/Recipes -- All are estimates for typing, printing of employee training information, laminating recipes for kitchen use, and binders for all manuals. Pre-opening Labour -- This will cover training of employees and management as well as cleaning and organising the restaurant prior to opening. VIP Dinner -- We will host VIP dinner. This will serve the dual purpose of training our staff and introducing ourselves to the community. The list of individuals invited will come from the Chamber of Commerce. We will pick a local charity to be the beneficiary of our event. A guest will receive an invitation for himself and one other to attend our event freeof-charge. All we will ask of our patrons is that they make a small contribution to the hosting charity. We will run the dinner on Monday, followed by the dinner on Tuesday, with our Grand-Opening on Wednesday. Building/Land/Equipment There is one method available for the growth of Rendezvous Restaurant. We can build from ground up near Panjagutta Circle.

Objectives To establish a presence as a successful local fast food outlets and gain a sizeable market share in Hyderabad. To make Rendezvous Restaurant a destination spot for mall-goers and people working in call centers. To expand into a number of outlets by year three, and sell the products to neighboring cities. Mission Rendezvous Restaurants main goal is to be one of the most successful multi-cuisine restaurants in India, starting with one retail outlet located near a major shopping mall as a "market tester." Rendezvous Restaurant will strive to be a premier local fast food brand in the local marketplace. We want our customers to have the total experience when visiting our outlet(s) and website as they will learn about this fascinating new "pop culture." Our main focus will be serving highquality food at a great value.

Page 20 of 63

Keys to Success To succeed in this business we must:


Create a unique, innovative, entertaining menu that will differentiate us from the rest of the competition. Control costs at all times, in all areas and execute a conservative approach to growth policy. Although, we provide more than enough fund to open more than one outlet, we want to be on the safe side of the business. Implementation of our primary goal to serve nothing but the highest quality food at unbelievably low prices in a clean, fun atmosphere. We must deliver on this pledge 100% of the time, without exception. Sell the products that are of the highest quality, as well as keeping the customers happy with all of our product categories from food to store merchandising. Provide 100% satisfaction to our customers and maintaining the level of excellent services among other competitors. Encourage the two most important values in fast food business: brand and image, as these two ingredients is a couple of main drivers in marketing relations. Get access to high-traffic shopping malls and call centers near the target market. Promote good values of company culture and business beliefs. Hiring the best people available, training, motivating and encouraging them, and thereby retaining the friendliest, most efficient staff possible. Our employees will be ringing dinner bells when fresh-baked veg and non veg rolls come out of the oven or if the veg or non veg steaks are ready. Our managers will make table visits precedence and we will dress casually in tailored jeans and ironed logo T-shirts that our customers may purchase for a supposed price.

Company Locations and Facilities Rendezvous Restaurant will be located near Panjagutta Crossroads besides Panjagutta Police station with easy access to parking lot and no over abundance of competition in the trade area. The facilities will include a 50 person capacity eating area, counter/front area, and backroom area where refrigerators, commercial stoves and ovens are located. The site/building selection is chosen based upon the following list of criteria:

Community size minimum of 40,000 people within five miles. High visibility. Easy access to parking lot with a minimum of 100 parking spaces. Mid- to low-cost land. Large percentage of teenagers in the community. No overabundance of competition in the trade area.

All of these qualities are consistent with Rendezvous Restaurants goal of providing a top quality, entertaining dining experience at an unbelievably low price. We want "word of mouth" to be our best form of marketing, where our guests cannot believe the value of their dining experience and can't wait to tell their friends and neighbours.
Page 21 of 63

Products We want to focus mainly on veg and non veg selling fries along with the dinner. Alcoholic drinks will not be sold in our outlet, as Rendezvous Restaurant promotes a healthy and positive lifestyle. Instead, we will offer different sauces to complement the fries. In promoting the Rendezvous Restaurant lifestyle, we will offer various merchandise with our logo and colors, from hats to t-shirts to our assistants, and the customers can take the parcels along with our unique dipping sauces so that our customers can enjoy Rendezvous Restaurant at home. Product Description Rendezvous Restaurant primarily sells veg and non veg fries with unique dipping sauces. Main products sold are: Kababs, Chicken and Mutton steaks, rolls,etc. The dips for these veg and non veg fries will be served with different flavors of sauces. They are available in more than 5 flavors:

Thai Chili Ketchup Roasted Pepper Mayo Black Pepper Sauce Barbecue Hot Chili Sauce Garlic Dip Curry Ketchup

Rendezvous Restaurant menu: (price is kept in Indian rupees)

STARTERS
Shami Kabab (Minced meat mixed with herbs & spices, lentils, deep fried, coated with egg) Seekh Kabab (Minced lamb meat mixed with herb & spices, formed on a skewer, cooked over chargrill ) Chicken Pakora (Boneless cubes of chicken marinated in herbs & spices battered & deep fried) Chicken Tikka Starter (Boneless cubes of chicken marinated in tandoori herbs & spices, cooked over chargrill) Chicken Roll (Chicken boneless cubes coated in light pastry and deep fried) Vegetable Rolls (Mixed vegetables coated in light pastry & deep fried) Prawn Cocktail (Cooked prawns in sauce & served on lettuce) Onion Bhaji (Sliced onions coated in batter, deep fried with a touch of herbs & spices)

Rs
120

120

120 125 130 120 130

110 11

Mutton Steak
Page 22 of 63

(Spiced minced meat, coated in light pastry & deep fried)


Corn Pakoda (Tender Corn, mixed with Herbs, spices and Besan flour, and made into crunchy fritters) Mushroom Bhaji (Mushroom coated in batter, deep fried with a touch of herbs & spices) Mixed Starter (Seekh, shami, onion bhaji, mushroom bhaji & samosa) Special Starter (Chicken pakora, chicken tikka, seekh, shami kebabs & samosa)

100 100

125 145 150

Naan Kababs
Supreme Naan Donner (Minced lamb cooked on an upright grill, served in naan bread with salad, chilli & garlic sauce) Chicken Naan Kabab (Small pieces of marinated chicken with onion & green pepper cooked on a charcoal grill served in naan bread with salad, chilli & garlic sauce) Shish Naan Kabab (Lean tender marinated cubes of lamb with no fat, cooked on a charcoal grill, served in naan bread with salad, chilli & garlic sauce) 240

250

250

Sheek Naan Kabab (4 seekh kebabs cooked on a charcoal grill,


served in naan bread with salad, chilli & garlic sauce) Shami Naan Kabab (4 shami kebab mixed with herbs & spices, deep fried coated in egg, served in naan bread with salad, chilli & garlic sauce) Tandoori Naan Kabab (Small pieces of chicken marinated in home-made tandoori sauce, cooked on a charcoal grill, served in naan bread with salad, chilli & garlic sauce) Mixed Naan Kabab (Pieces of chicken, sheesh, kofta, donner kebab, onions & green peppers cooked on a charcoal grill, served in naan bread with salad, chilli & garlic sauce) 250

250

275

300

Extras
French Fries Chicken Nuggets (Served with French fries and salad) Onion Rings
Thai Chili Ketchup Roasted Pepper Mayo Black Pepper Sauce Hot Chili Sauce Garlic Dip Curry Ketchup

50 150 75
5 5 5 5 5 5

Curry & Korma Dishes


Chicken Curry Lamb Curry 150 160 Page 23 of 63

Keema Curry Mixed Vegetable Curry Prawn Curry King Prawn Curry Mushroom Curry Chicken Korma Lamb Korma Keema Korma Mixed Vegetable Korma Prawn Korma King Prawn Korma Mushroom Korma

140 130 165 175 160 150 160 140 130 165 175 160

Specialities
Chicken Karahi (These dishes are marinated with yogurt, cream, fresh garlic, tomato puree, ginger & our other special blend of herbs & spices, made to everyone`s taste) Lamb Karahi (These dishes are marinated with yogurt, cream, fresh garlic, tomato puree, ginger & our other special blend of herbs & spices, made to everyone`s taste) Prawn Karahi (These dishes are marinated with yogurt, cream, fresh garlic, tomato puree, ginger & our other special blend of herbs & spices, made to everyone`s taste) Chicken Badarme (These dishes have a delicate mild sauce made from cream, tandoori paste, ground almond, fresh herbs & spices) Lamb Badarme (These dishes have a delicate mild sauce made from cream, tandoori paste, ground almond, fresh herbs & spices) Prawn Badarme (These dishes have a delicate mild sauce made from cream, tandoori paste, ground almond, fresh herbs & spices) Chicken Jalfrezi (Fairly hot & dry dish cooked with onions, fresh garlic, ginger, coriander & green chillies for a rich & highly spiced taste) Lamb Jalfrezi (Fairly hot & dry dish cooked with onions, fresh garlic, ginger, coriander & green chillies for a rich & highly spiced taste) Chicken Balti (A combination of special blended spices together with fresh tomatoes, green chillies, ginger, sprinkled with fresh coriander, cooked in Indian wok) Lamb Balti (A combination of special blended spices together with fresh tomatoes, green chillies, ginger, sprinkled with fresh coriander, cooked in Indian wok) 250

260

270

280

290

300

260

270

265

270

Biryani Dishes
Chicken Biryani Lamb Biryani 150 170 Page 24 of 63

Keema Biryani Vegetable Biryani Prawn Biryani King Prawn Biryani Mushroon Biryani Mixed Biryani

130 100 130 150 160 200

Naan & Roties


Plain Naan Butter Naan Roti (2 nos) Romali Roti Tandoori Roti 20 25 15 25 25

Desserts & Soft Drink


Ajanta Kulfi Chocolate Fudge Cake Fruit Salad Kadu Ka Kheer Kubani Ka Meetha Soft Drinks 35 40 35 40 40

Sales Literature Rendezvous Restaurant will use advertising and sales programs to get the word out to customers. 2,000 colour brochures to be distributed throughout surrounding shopping malls and facilities: in-store, cinemas, area eateries, call centers etc. information during the grand opening. Half page magazine reviews in lifestyle magazines that advertise the presence of the outlet.

Sales Program Each opening of Rendezvous Restaurant will have, more or less, the same marketing mix as the others. Given below are the programs that we will develop to open at the location. Grand Opening Each new outlet will have outdoor signage as soon as possible. We want the signage to be supported by banners before the opening. Point of Purchase We will use "tray toppers" to explain the concept and philosophy of Rendezvous Restaurant. We will also sell gift certificates, and also announce future job openings.

Page 25 of 63

Direct Mail Piece A stand-alone piece, folded, will be produced in full color on heavy weight paper. Inside will be all the important details of Rendezvous Restaurant, explanation of our menu, prices, house of operation and a locator map. Technology Rendezvous Restaurant will invest in a single high-speed computer to provide a fast and efficient connection to the Internet and also be a link to our cash registers. We will then be able to poll the restaurant nightly to our Corporate Support Center and be able to daily digest key financial information. We will also order online, email, and have a Web page. Future Products For now, we will focus on selling Veg and Non veg fries and Kababs with different sauces. However, as we grow further, we will add new categories to our menu. In the future, our growth strategy will be offering the Kababs and fries of our brand to food entrepreneurs in the region. Value Meal Sales of Rendezvous Restaurant will not only generated from the selling of its famous Belgian Fries, but also will be generated by the conception of an innovative package menu called the "value meal." It primarily consists of a combination of our featured kababs, rolls and steaks. Private Parties Brochures and handouts will explain that we can handle banquets and private parties, in addition to our brochure that will list our daily entrees. Services The Menu The menu is going to be extremely simple. We will keep a small group of constants on the menu and then feature a chef's recommendation that we plan to have 85% of dinner ordering. This will help us to reduce waste and plan ingredients and purchasing. Organic Ingredients The organic ingredient element will allow us to price to the extremely wealthy Internet entrepreneurs who are looking to spend an excessive amount of money to have peace of mind that their money is still coming back to themselves. We will be extremely ecologically conscious as well, and spread this across our literature. Ethnic Ingredients and Recipes Our chef will have great latitude in designing and producing menu offerings from many different world cultures. We will endeavor to procure all the traditional, authentic ingredients necessary to hold true to these varied and interesting cultural recipes.
Page 26 of 63

Interior Accoutrements People need to keep life interesting, and our artwork will reflect the world influences that are core to the attitude of the Rendezvous Restaurants chef. Service Business Analysis In India the restaurant industry has experienced rapid growth in the last 20 years and is now moving into the mature stage of its life cycle. Many factors contributed to the large demand for good restaurants in India today. People want more leisure time. There are more two-wage earner families today, and more optional income. The competition is strong, with many alarming chains competing for the consumer rupees. It is almost impossible today to strike off into a new, unique, untried venue. Only the strong will survive and prosper. Due to intense competition, restaurateurs must look for ways to differentiate their place of business in order to achieve and maintain a competitive advantage. The fact that no other national chain has entered this arena as yet presents us with a window of opportunity and an entrance into a profitable niche in the market. Future Services Rendezvous Restaurants plans for slow and cautious growth during its initial start-up phase. We foresee no more than one unit within the first three years of operation. Thereafter, we will never develop more units than we have adequate manpower to operate. A second principle in our growth will be to cluster our development. Our first three Mobile Centres will be within a short distance of each other (an hour drive). Afterwards, we will work with neigh boring geographical areas for development. Thirdly, we will develop one ground-up unit and one conversion with the restaurants. This will then allow us to test which model will work best for future, long-term development. Imran has 3 years of in-depth knowledge of the restaurant business; he has initially contributed in to business and got success. His investment in Dastrakhans venture was just 25percent, when he recognized that restaurant business is in growing stage he thought of investing his money in his own venture. For achieving success one need to be well acquainted with the work which he is doing and Imran is in this business since 3years and he is a graduate which accelerate his speed of learning new venture. Moreover he was lacking in business plan and marketing strategy so he delegated this work to consultancy. In industry forecast we have seen that how hospitality industry is booming hence Imrans chance of getting success in this venture is more.

Market Analysis Summary


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 dinner. We firmly believe, and have witnessed, that a much broader appeal exists for this midnight time slot because we
Page 27 of 63

have priced it so low and feature our Rendezvous Restaurants kababs and steaks. 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 red meat. 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 assistant, young professionals with a family. Education -- High school graduates or individuals with some college.

By our definition, we will have very broad appeal for our concept. It is our goal to be the restaurant of choice for the largest dining audience in India.

Most of the Indians love to window shop, and when they do strolling around the shopping district, they need a quick bite to accommodate their activities. People working in call centers have stopped bringing their dinner and tired of eating the food in the cafeteria, and enjoy kababs, rolls, steaks or other fast food joints in the vicinity. Eating out still remains as Indias common habit of life. They do not perceive fast food is a luxury, and they enjoy it by bringing their family, especially if they have smaller kids, in the environment of the western-style fast food outlets.

Market Needs As stated before, customers desire fast, healthy food that will appeal to their artistic tastes and is provided in a comfortable atmosphere. In addition, they desire a memorable dining experience that provides them with the chance to rest during the evening times. All of this needs to be delivered to the customer with the least amount of hassle. Furthermore, customers will also need a facility that can provide them with luscious, convenient take-home dinner when there is no opportunity to cook at home. Seeks strong value. Wants variety and flavour in its food. Wants an entertaining dining experience. Insists upon a clean, friendly, and attractive dining environment Looks for speed of service Wants an entertaining and fun experience Adopts a global lifestyle Is computer literate Enjoys eating out Comes from various ethnic backgrounds

Page 28 of 63

Market Growth We have no indication of market growth in this pulverised and disseminate market. No statistics are available for the local food industry. What we do know is that there is growth potential, and plenty of potential market for the right combination of service, quality and choice. Market Trends There are a large number of substitute suppliers from other restaurants like Ohris Jiva that offer pre-packaged dinner to the customers. Drawing any sort of general conclusions from such a vast array of competitors is difficult, but you can say that just about every conceivable product or service idea, and just about every taste is encompassed within this group. In the past, Indians preferred Western chain restaurants. This was the time when KFC, McDonald's, and Pizza Hut were dominating most of the chains. But the trend seems to have shifted in the last decade, with the success of the locally grown brands, such as Bawarchi, and Hyderabad House and Astoria. Many of these brands grew to become giant restaurants that dominate all over India.

Operational Plan
With Rendezvous Restaurant located near Panjagutta Circle, we can provide ready access to accommodate anticipated growth, to ensure optimal environmental conditions and also to incorporate the necessary space for the parking so that the customers will have free way exit. This is very important to our customer because they usually look for parking space and enters the restaurant. Future office locations will also have to provide this convenience to meet growing demand and continue to provide the parking space where the customers will have come to expect. Our Restaurant is a new structure near the Hyderabad Central meeting the requirements for the variety of products for the customers. This is important to our customers, as they count on us for better quality and quantity of food. This setting meets our criteria as they are many shopping malls close by and our choice of an area where we would have plenty of space which allows us to take advantage of customers drawn by marketing from other businesses near the Restaurant and to keep unique business hours responsive to the customers requirement and to contain our own advertising costs and to participate in cooperative advertising and promotions. Since our Restaurant is very much a part of what we offer our customers, we have carefully shaped our overall presentation to the community. By working with the designer familiar with the market we serve and the clientele we want to attract and hold, we have created an environment that appeals strongly to our customers. It gives both new and returning customers a feeling of being part of our restaurant with comfort and relaxation to conduct their business with us and their specific business needs being recognized, acknowledged and addressed being happy to refer friends and associates or to bring friends and associates with them to our Restaurant.
Page 29 of 63

By taking the attributes of our building and location into account, we have created a comfort level for our customers and employees that encourage long-term relationship. Information Technology Rendezvous Restaurant provides services that rely considerably on technology. Our primary technology focus is the computers on which we keep our records and host our website at www.rendezvous.com the moving vehicles that we use to carry out our service and the state of art to maintain a front-runner position among competing services. The company plans to utilize open source technology to build its ecommerce system and IT infrastructure. We plan to use Dell desktop PCs connected through Linksys wireless router system. We back-up our data daily to our network server as well as to iBackup online storage system. The websites serves as an information and sales tool more than anything. Customers can order services online. We have built in a payment transaction mechanism, as online sales represent a significant portion of our business. We decided to take advantage of hosting a website, as it provides a critical element in our business model. The most important aspect of our online presence is that a key function can be handled by the individual customer on our website. We believe having a web presence is very important because the world is growing rapidly with new technology. Manufacturing Rendezvous Restaurant has numerous sources for product manufacturing in Hyderabad as well as offshore sources in India. We are set up this way to both minimize our costs and allow for the flexibility of rapid production without the long shipping lead time from overseas if needed. The Restaurants monthly production capacity will be listed in the financial plan below. We have also audited our production lines in India and have verified that they are capable of manufacturing the product to our standards. We have completed our engineering phase and have finalised our specification drawings. One main Restaurant near Hyderabad Central with three moving vehicles at three different locations and the standard production time after a confirmed purchase order is 2 weeks to procure the raw materials, 1 week to schedule in the production, 1 week of actual production time .4-6 weeks total. Payment terms have been negotiated as Net 30 which means 30 days from invoice issue date. Machinery and Equipment As this business is for long term hence equipment will not be on lease but it will be purchased from Shiva Kitchen Equipments Pvt Ltd. The lists of equipments required are: o o o o o Electric Convection Oven Smokeless Barbecue Oven Electric Rotisserie Four Door Vertical Freezer Worktop Refrigerator
Page 30 of 63

o Pots and Pans o Utensils and Small Wares o Dishwasher o Cutlery & Crockery (http://www.shivaappliances.com/kitchen.html) Physical Plant Physical plant includes the equipments that are used in the manufacturing process. The entire responsibility of the equipments is on the owner of the restaurant. Some of the equipments required are oven and ranges, utensils and small wares and cold storage. Cold storage is very necessary as restaurant deals with all kinds of Kababs, rolls, veg and non veg items it is very important to store it in the cold storage or big refrigerator. Supplier Contact 1.The great Kabab Factory , Road No 12, Banjara Hills, Hyderabad, India. 2.Shiva Kitchen Equipments Pvt.Ltd, 1 Waterloo Street (Near great eastern hotel ) Kolkata-700 069, Ph no +913322319182/ 65336896, Fax +913322622897, E-mail shivaapliances @gmail.com. (http://www.shivaappliances.com/kitchen.html) Facilities The manufacturing facility is located in Banjara Hills. This location provides necessary space for initial production and expansion to meet projected demand over the next years. Our current production capacity, including internal and external production is listed below in the financial plan. Selection for the future site includes the following considerations: Sufficient available space, at a reasonable rate, plus the costs associated with moving land and construction costs. Transportation cost and route access: common carrier, restaurant owned, pooling agreement with freight forwarders. Risk and Insurance Packaging and material costs and availability of suppliers Labour pool availability, skills, costs Local ordinances, licensing and permit requirements Government assistance (roads, training, exemptions, etc.) Government restrictions and requirements Community attitudes toward business and manufacturing Continued operating costs (utilities, communication, etc.)

Staff Staff includes one manager with three chefs and two kitchen assistants with one restaurant assistant and two restaurant waiters and for each Mobile Centres there would be two assistants.
Page 31 of 63

Fulfilment Fulfilment is an important part of customer satisfaction. Rendezvous Restaurant utilizes the resources to monitor and manage the delivery, billing, and extra services which help to ensure customer satisfaction and repeat sales. To improve operating efficiencies, we plan to use Rendezvous Restaurant as our fulfilment company. Customer Satisfaction Our customers emphasize that service and support are among their major concerns. They are constantly impressed with the support we provide. We intend to provide delivery services for customers at three different locations by using our own vehicle. The purpose for this service is to assure customer satisfaction and loyalty, allowing us to increase sales and maintain a high profile within our service area. Customer Satisfaction is a high priority for our Restaurant. One of our goals is to make our customers happy by providing them good quality of food. For this we provide feedback form so that the customers could provide their feedback for our restaurant in terms of food, service, delivery etc. so that we can have a long term relationship with the customers.

Marketing Plan & Strategy


How you can sell more stuff, more often, to more people, at higher prices-Sergio Zyman Marketing strategies, whether online or off, need to account for three basic principles: objectives, strategies and tactics. Objectives are your goals: what do you want to accomplish with your marketing plan? Strategy is how you approach achieving your goals. Tactics are the tools and actions you use to implement your strategy. The marketing plan describes the market conditions and strategy related to how products and services will be distributed, priced, and promoted. A restaurants marketing requires well organised planning and market research. The marketing team has to do thorough research on market conditions as to know the changing needs of the customers. They have to inquire about the existing restaurants and their ways of marketing. The marketing plan of Rendezvous Restaurant would take into considerations all these aspects to be effective and efficient. Marketing is a social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with other- Philip Kotler Some marketing principles basis on which marketing strategy is been developed are: 1. Systematic Approach: Systematic Approach has a relativist position. It believes that the company is able to plan and act effectively. It is a long process and it has got large time frame. It impacts many activities and consists of different steps/parts of the process such as market analysis, objective setting, option evaluation, choice, strategy formulation, implementation and control. Each of these activities follows in a systematic order. Hence

Page 32 of 63

2.

3.

4.

5.

6.

a systematic approach needs to be adopted for Rendezvous Restaurant. This approach can be time consuming but later it becomes more effective and efficient. Sequencing and Scheduling activities: Various activities under marketing have a logical relationship among them. As market analysis requires the marketing head to understand the needs and changing preferences of the customers. So that there will be proper offering made and segmentation can be undertaken. This activity will then relate to product design and production. The next linking issue would be generating awareness or a buzz for that offering this would link to advertising firms, distributors, recruiting and training owns sales force etc., Since the entire effort of marketing consists of numerous activities it is necessary that Rendezvous Restaurant need to create the proper sequence among them and to schedule those activities with appropriate time and resources. Integration of Activities: Strategic Marketing Management is multi dimensional and broad. A number of activities are undertaken under this process, few of which are parallel while others are sequential. However every activity has a resource commitment and the process has to run in a water tight manner. Delay or wastage of resources in one activity will spill over to another; this will have a knock on effect. Hence it is necessary to integrate all activities under strategic marketing. Another dimension to this issue is that as far as possible there should be a free exchange of ideas and information among various teams, handling the various activities for Rendezvous Restaurant. Product design team of Rendezvous Restaurant should work closely with the core marketing team that has done the segmentation for the product. Resource requirement: Strategic Marketing Management is a long term initiative that seeks to bring about the achievement of some objective. Resources are the main requirement which helps in bringing in profits to our business. Time Scaling: Strategic Marketing is a time bound activity with a specific planning horizon. Since it has a number of activities, milestones and deadlines it is very important to time scale while creating marketing plan for Rendezvous Restaurant to ensure that commitment and clarity are possible. Monitoring and controlling elements: While planning, it is essential to create monitoring and control processes to ensure all activities run smoothly, deviations from targets can be spotted and corrective actions can be taken for Rendezvous Restaurant. If an organisation had planned for a particular levels of sales, but finds that due to external market forces of subdue demand or low demand these targets are not been met. Then the monitoring processes will highlight the problem and some corrective action could be either renewed advertisement to pull up demand or to modify or lower target.

Strategic Marketing Processes Plans should be short term and long term. Most firms make annual plans, which are divided into quarterly plans. To be market proactive the plans should be kept flexible to enable firms to alter them to the changing market environment. The following steps are needed for making the plan.

Page 33 of 63

Strategic Marketing Planning Process Strategic Marketing Management involves planning, implementation, evaluation, formulation and control. It implies ongoing revision of the marketing program based upon feedback. It is consistent with the firms mission statement and based upon clear goals and objectives. Strategic planning is based upon what is happening in the firms environment. It matches resources with the opportunities, changes, and characteristics of the marketplace. Objective must be actionable and measurable. Formulation of objectives is based upon an analysis of strengths, weaknesses, opportunities and threats of Rendezvous Restaurant. Strategic Marketing Analysis Strategic Marketing Analysis addresses matters such as research, product design and development, pricing, packaging, sales and sales promotion, advertising, public relations, distribution and after-sales service. Strategic marketing is the requirement to develop a strategy for Rendezvous Restaurant and to cope with competitors, identify market opportunities, develop and commercialize new products and services, allocate resources among marketing activities and design an appropriate organisational structure to ensure the performance desired is -achieved. Strategic Marketing Analysis helps to manage marketing complexity, customer and stakeholder expectations and to reconcile the influences of a changing environment in the context of a set of resource capabilities. It is also necessary to create strategic opportunities and to manage the changes required within the Rendezvous Restaurant. Customer needs are first evaluated through market research; an integrated marketing effort is developed to satisfy customers so that the Rendezvous Restaurant achieves its goals, especially those affecting shareholders. This is a customer orientation and contrasts very bluntly with a narrow competitor orientation based on sales in which the company by capitalising on the weaknesses of vulnerable competitors or by removing its own competitive weaknesses attempts to obtain high sales and long-run profits. Marketing Strategy Objective Setting The net result of opportunity analysis is the formulation of marketing objectives designed to achieve the Rendezvous Restaurants overall objectives and develop a marketing plan. The marketing planning effort must be directed toward establishing marketing strategies that are resource efficient, flexible, and adaptable. The marketing strategy is the overall company program for selecting a particular target market and then satisfying consumers in that segment. A Marketing Strategy Objective Setting consists of an internally integrated but externally focused set of choices about how the Rendezvous Restaurant addresses its customers in the context of a competitive environment. A strategy has five elements: it deals with where the company plans to be active; how it will get there; how it will succeed in the marketplace; what the speed and sequence of moves will be; and how the company will obtain profits.
Page 34 of 63

Option Evaluation and choice Environmental factors - competitive, political, legal, economic, technological and social - also influence marketing opportunities. The emergence of new technologies or innovations may open new opportunities for under-marketed products. The marketing environment may also pose threats to marketing opportunities. For example, a new genetically engineered drug may be developed with the potential to become a $1 billion-ayear product. But a government agency may delay requests to market the drug due to regulations. Option evaluation is very important to know the threats for Rendezvous Restaurant that are coming up and also helps to make a choice after evaluating to develop a strategy in expanding the business. Formulation Once the Rendezvous Restaurant has performed a SWOT analysis of the internal and external environments, it can proceed to develop specific goals for the planning period in a process. Goals indicate what a business unit wants to achieve; strategy describes the game plan for achieving those goals. Every business strategy consists of a marketing strategy plus a compatible technology strategy and sourcing strategy and also many types of Marketing Strategies are available. Implementation and Control The overall strategic marketing plan serves as the basis for a series of operating plans necessary to move the Rendezvous Restaurant toward accomplishment of its objectives. At every step of the marketing planning process, marketing managers use feedback to monitor and adapt strategies when actual performance fails to match expectations. High-performance organisations continuously monitor the environment and use flexible strategic planning to maintain a viable fit with the evolving environment. The sunshine company in developing and formulating the strategy needs to follow vision and mission statement, rules and regulations, competitors, customer group, market size, nature, strengths and weaknesses. Apart from this, the company also need to select capable people for key positions and they are as follows.

Page 35 of 63

Select capable people for key positions for Rendezvous Restaurant ltd

What kind of core management team is needed to carry out strategy? Finding people with the right mix of skills & experience to fill each slot. Existing management team may be suitable Core executive group may need strengthening Promoting from within Bringing in skilled management talent from outside

Page 36 of 63

Develop skills, core competencies & competitive capabilities

Better product develop ment

Better manufa cturing knowho w

Superio r costcutting skills

Better marketi ng & mercha ndising skills

Capabilit y to provide better after-sale service

Ability to respond quickly to changes in customer needs

CORE COMPETE NCIES & COMPETI TIVE ADVANTA GE

Matching Structure to Strategy

Design internal company's structure around tasks & activities most critical to the success of a firms strategy.

Matching structure to strategy requires making strategy-critical activities and company's units the main building blocks in the company's structure.

Assign managers of these activities a visible, influential position in company's pecking order .

Control, speed of change, importance of knowledge creation & sharing as well as the rise of globalisation (communicating across wider geography, coordinating in diversity, etc) are key challenges to an appropriate structure.

Page 37 of 63

Marketing more than any other business function deals with customer understanding, creating, communicating, and delivering customer value and satisfaction are at the very heart of modern marketing thinking and practice. All these activities form a part of the larger Marketing Mix. Marketing Mix is defined as a set of controllable, tactical marketing tool that the firm blends to produce the response it wants in the target market. The marketing mix is everything the restaurant can do to influence the demand for its product. The many possibilities can be collected into four groups of varieties known as Four Ps- Product, Price, Place, and Promotion. The four Ps of marketing are discussed below. (Kotler, 1992) The four Ps are the four ingredients that are interrelated and revolve around potential customer satisfaction as the focal point. It is the combination of mixers relating to input and resources utilized in marketing program to attain the business objectives such as profit-return on capital employed- sales volume- market share and so on. Marketing efforts involve good many decisions to connect consumer desire into demand and to converting cash- outflow into cash inflow over a shorter period of time. These decisions are vital innumerable relating to marketing variables product price place and promotion. In that sense marketing management is the crucial task of marketing mix decisions making. (Kotler, 1992) Four Ps Product A product is anything that is offered to the market for attention, acquisition, use or consumption that might satisfy a want or a need. (Kotler, 1992). Products include physical objects, services, events, persons, place, ideas or mixes of these entities. The different levels of a product are: The core product which consists of the core, problem solving benefits that consumers seek when they buy product or service. The actual product is built around the core product having fine characteristics: a quality, level, design a brand name and packaging. An augmented product built around the core and actual product by offering additional consumer services and benefits.

The products that would be provided are healthy fast food including Kababs, steaks, biryani. The name of the restaurant is Rendezvous Restaurant. Rendezvous means gathering. The customers gather together to enjoy the food at Rendezvous dining experience. Price Price is the only element in the marketing maximum of a firm that generates revenue. All other elements represent costs. Price is one of the most flexible elements of the marketing mix. It is also the most important determinant of the profitability of the business.

Page 38 of 63

People in Hyderabad try to find the best deals in the market even if it means going to far-away places and recommend them to their peers and colleagues. They prefer having healthy fast foods at cheaper rates to fulfill their needs and their wants. By highlighting the economies of scale and comparing it with our competitors we sell products at cheaper rates. Our services would be different because our restaurant has the advantage of delivering the products at three different locations through three moving vehicles which moves across Banjara Hills, Hitech-City and Charminar which helps in the profitability of the business as well as competing with our competitors. Our pricing strategy will be different from that of our competitors because we make our customers happy by providing value added service to increase our profits. By providing a value for money deal at a convenient and close-by location we would try to attract them with the cheaper rates. Low to mid range prices would ensure attracting our customers and also ensuring them of the quality of the products that we provide. A business will have number of objectives in the area of pricing. Usually some of these will be long term while others will be short term. Some of the objectives that restaurants seek in pricing are profit maximisation in the short term, profit maximisation in the long term, a minimum return or investment and on the sales turnover, achieving a particular sales volume or market share, deeper penetration of the existing market or entering new markets and keeping parily with competition or keeping new competitors out. They are two sets of factors that is internal and external which influences pricing decisions of the restaurant. Internal Factors The marketing objectives of the restaurant. The image sought by the restaurant through pricing. The characteristics of the product. The stage of the restaurant in its life cycle. Cost of manufacturing and marketing. Extent of uniqueness of the product and extent of discrimination practiced. Other elements of marketing mix of the restaurant and their interaction with pricing. Composition of the product line of the restauarant.

External Factors Market characteristics (Relating to the demand customer and competition). Buyer behavior in respect of the product. Bargaining power of major suppliers. Competitors pricing policy. Government controls/ regulation on pricing and societal consideration.

Page 39 of 63

Place The concept of place includes the physical distribution of the product. Physical distribution is the process of delivering the products to the distribution channels and consumers. The three major components of physical distribution are: Transporting, Ware Housing and Inventory Management. Rendezvous Restaurant is located at Panjagutta Circle because it is the central point at which huge malls are located, and it is closer to all colleges and even the call centers. There is also ample space for parking and it is usually busy in the evening times. That is the reason why this location is been chosen because place helps to decide the future prospects of the business. Promotion Promotion means activities that communicate the merits of the product and persuade target customers to buy it. A companys promotion mix also called its total marketing communications mix consists of the specific blend of advertising, personal selling, sales promotion and public relations and direct marketing tool, that a company uses to pursue its advertising and marketing objectives. The following are the ways in which Rendezvous Restaurant would go about promoting their business: Mobile Centres: Mobile Centres serve as the moving banner covering, attracting and showcasing our business to all the areas of Hyderabad. Pamphlets: This would serve as a good option to increase our visibility to all the IT professionals, call center executives and mall goers as they would be available in a particular location making it easy to distribute the pamphlets. Promotional offers: Rendezvous Restaurant should provide 20% discount for the first two weeks for the customers in order to increase the profit margin. Newspaper ads: As newspapers are the daily source for the customers, newspaper ads is also a cheaper way to promote our restaurant.

Distribution Manufacturers normally use intermediaries for taking their products to the consumer. All such intermediaries constitute a distribution channel- a set of interdependent organisations involved in the process of making a product or service available for use or consumption by the consumer or business user. Mobile Centres serve as an intermediary distribution channel for Rendezvous Restaurant to help reach for a wider market. Ansoff product-market growth matrix- strategic tool The Ansoff product-market growth matrix is a tool that helps businesses decides their product and market growth strategy. It suggests that the business attempts to grow its market share depend on whether it markets new / existing products and new / existing markets.

Page 40 of 63

Existing Products Existing Markets New Markets Market Penetration Market Development

New Products Product Development Diversification

Market Development Market Development is a strategy which companies implement in order to attract new markets using the existing products. Tactics or strategies that come under this category are: Approaching new geographical areas Creating new product dimensions or packaging Providing new distribution channels. Changing its pricing policies to attract different customers or create new market segments.

Product Development Product development is a strategy where a business aims to attract the existing markets by introducing new products. Product development requires the progress of new competencies and requires the business to develop customized products which can appeal to existing markets. Diversification Diversification is a strategy where a business introduces new products in new markets. This is an essentially more risk strategy because the business is moving into markets in which it has little or no experience. To take up a diversification strategy, therefore, a company must have a clear idea about what it expects to put on from the strategy and an honest evaluation of the risks. Market Penetration Market penetration means the growth strategy where the business focuses on selling existing products into existing markets. To increase the profitability of the business Rendezvous Restaurant need to increase the usage by the existing customers which means that Rendezvous Restaurant should introduce loyalty schemes and also have good information on our competitors and on customer needs. Rendezvous Restaurant should restructure into a mature market by driving out all the competitors by using various ways of promotional campaign which would help to maintain or increase the market share of the products. Rendezvous Restaurant should have effective pricing strategy which will make the market unattractive for the competitors and the customers are satisfied. Rendezvous Restaurant is to use the market penetration strategy in order to become more effective and efficient in understanding the needs of the customers and also to increase the
Page 41 of 63

profitability of the business. Tactics like the promotional offers, loyalty schemes, advertising need to be aggressive enough to drive out the local competition and establish customer loyalty to our brand. Marketing Objectives The SMART criterion is an important concept which helps in setting the marketing objectives. They are summarised below: Specific: Rendezvous Restaurants objective is very specific because it states exactly what is to be achieved. Measurable: Rendezvous Restaurant is capable of measurement and it gives good business. Achievable: The objective of Rendezvous Restaurant is realistic given the circumstances in which it is set and the resources available to the business. Relevant: The objectives of Rendezvous Restaurant are relevant to the people responsible for achieving them. Time Bound: The objectives of Rendezvous Restaurant is set with a time-frame in mind and is realistic.

Marketing Strategy The core marketing strategy of our Restaurant would be to project ourselves as the most friendly and youthful restaurant in Hyderabad. This can be achieved by being innovative in our approach towards the youth and enhancing customer satisfaction by adding value to the service (Mobile Centres) and having well established market position Branding Brands are the fundamental to the long-term success of a company. Without a brand, ultimately a product will be regarded in the same manner as goods. The American Marketing Association defines a brand as A name, term, sign, symbol or design, or a combination of them, intended to identify the goods, or services of one seller or group of sellers and to differentiate them from those of competitors. A brand is a product or a service which adds certain scope in some relevant way that differentiates it from other products designed to satisfy the same want. Customers learn about brands through past experience with the product and from advertising programs. They learn to value some brands more than others. The reasons for this are that brands reduce the effort required to find a suitable product and reduces the risk of experiencing buyers feedback from a poorly informed purchase due to the promise of quality associated to the brand. Rendezvous according to the Encarta dictionary means an agreement between two or more persons to meet at a certain time and place or the location of the pre-arranged meeting The name has a classy feel to it which would attract the attention of the customers who want to be in style.
Page 42 of 63

It is also in tune with changing cultural values and the westernization of Indians. As the restaurant is being set up in the heart of the city, the name would sound apt to all the mall-goers and give the impression of a good meeting place.

Rendezvous Restaurant should mainly focus on building a brand by ensuring naming of the brand and association of the brand in customers minds with a definite product-class or need. Rendezvous Restaurant should decisively establish the brand meaning in the minds of customers by connecting a multitude of tangible and intangible associations with certain properties of the product. It needs to use marketing programs to implore the proper customer responses to this brand recognition and brand meaning and also convert brand response to create a strong, active loyalty relationship between the brand and the customers. Positioning Understanding customer needs and delivering more value than other products are the keys to winning and keeping customers. But in every segment there can only be one leader. That is, unless the customer recognises difference exist between products. These differences can be drawn by prominent differences in quality, price, performance and other things applicable to the customer. Product positioning entails differentiating a product from competitors by highlighting important attributes and profit. In terms of market segmentation advantages, we can use needbased appeal to arrive at a winning position to each targeted segment. Relative to our competitors we are better mobilised and will be perceived by our customer as a more westernised and customer-oriented restaurant. In the view of the customer we need to beat the competition in terms of the variety of items, taste and quality of the dishes and pricing. This positioning will help us maintain a healthy relationship with the customers and ensure they repeat their visits to our restaurant often.

Training & Development of the staff Training provides the staff with information that not only includes details about the products that they will be selling but also facts regarding the habits of the target market and customer need. Training also includes an explanation of the salespersons responsibilities and duties, and the personal selling process. A well designed training programme will also include details on competitor strategies, the companys mission, financial structure, and its objectives. Training salespeople must include tweaking their observation skills. Customers are good observers. Simply by walking through a restaurant, they scan every individual that passes them, more specifically their attire. This by the way is more influential than an advertisement. Employing a well-trained and knowledgeable sales force or employing a marketing strategy will build customer value and satisfaction. Rendezvous Restaurant will conduct an ongoing training programme which will help the staff to improve its competencies even more.

Page 43 of 63

As the service provided in restaurant industry is an important differentiating factor and often tends to decide the customers impression on the restaurant, all precautions are to be taken to ensure it is of top-notch. Training the staff into providing the unique service offered at Rendezvous Restaurant is vital and central to the original concept of providing a youthful and exuberant dining service and experience. Training the staff is an important role in Rendezvous Restaurant because it helps to act together with the customers from the beginning till the end. Rendezvous Restaurant would provide proper training and constant underpinning to its staff so that they are prepared to serve guests well and also endorse a good reputation on behalf of the restaurant. Rendezvous Restaurant provides training by teaching them the restaurants basics, from setting tables and welcoming dinners such as service, menu details. And to demonstrate set-up requirements for the restaurant, side-work and end-of-shift cleaning responsibilities. Rendezvous Restaurant also instructs the staff on how to operate the restaurants computer system to clock in and out and to process customer orders, gift card purchases, and billing to make aware of the terms and proper communication with kitchen and other staff members to execute orders in the accurate manner and a well-timed fashion. Rendezvous Restaurants would also provide training as how to operate equipment and the seating arrangements so that they are well-known with the entire aspect of the restaurant. Rendezvous Restaurant would also provide training on proper hygiene and safety guidelines as well as security. It provides information regarding policies and procedures with an employee guide. It also provides instruction on the basis of anticipating guests needs. How to respect reasonable customer requests and the importance of instant follow-up on inquiries or complaints also to train them on the up-selling techniques that can enhance sales for the restaurant

Cost of Training and development of staff Waiter and staff training Rendezvous Restaurant hires a temporary consultant who can train for a period of 2-3weeks. The job of the consultant trainer is to design a service ritual in tune with the theme and thoughts of the restaurant. The training fee for the consultant is Rs 20000. Rendezvous Restaurant would appoint a head waiter who supervises the other waiters and trains the newcomers after the initial training program. The Head chef is given the additional responsibility of training the assistant chefs and the assistant chefs who would be running the mobile centres are also trained by the head chef.

Page 44 of 63

Marketing Implementation

Advertising Start Date End Date Budget Marketing plan completion 1/03/2011 2/04/2011 20,000 Newspaper ads 2/05/2011 4/12/2011 30,000 Pamphlets 10/05/2011 1/12/2011 10,000 Total Advertising Budget 60,000 Marketing through MCs Designing MCs 1/05/2011 4/06/2011 10,000 Web Development 10,000 Other 5,000 Total Web Development 10,000 Budget Other 5,000 Totals 1,00,000 *MC-Mobile Centres (Note: amount is in Indian rupees)

Manager Imran Imran Imran

Department

Imran Imran Imran

Imran

Organisational Plan
Organisational Structure The purpose of structure is the allocation of work among members of the restaurant, and the coordination of the activities that are focussed towards the goals and objectives of the Rendezvous Restaurant. The structure of the restaurant is the pattern of relationships among positions in the restaurant and among members of the restaurant. The structure helps to decide and makes it possible the use of the process supervision and also creates a framework of order and command through which the activities of the restaurant can be planned, organised, directed and controlled. The structure of the restaurant defines tasks and responsibilities, work roles and relationships, and channels of communication. It is the correct design of structure that is of most significance in determining organisational performance.-Drucker. The structure of the restaurant affects not only productivity and economic efficiency but also the confidence and job contentment of the workforce. Levels of Hierarchy The importance of hierarchy is also strongly emphasized by Drucker who asserts that One hears a great deal today about the end of hierarchy. In any situation there has to be a final authority that is, a boss- someone who can make the final decisions and who can expect them to be obeyed.

Page 45 of 63

Rendezvous Restaurant has one main manager who manages the co-ordination of activities along with the commitment of the staff ensuring the smooth running of the business. He is the boss who has got the final authority in making decisions for the profitability of the restaurant. Organisational Chart

Owner Mr. Imran

Head Chef Mrs. Sudha

Finance Mr.Rahul Roy

Marketing Director Mr. Avinash

Front Manager Mr. Pavan

Chef 1 Mr. Amit

Chef 2 Mr.Clifford

Restaurant Assistant 1 Mr. Abhay

Restaurant Assistant 2 Mr. Khan

Restaurant Waiter 1 Mr. Sohail Mobile Centre Assistant 1 Mr. Pradeep

Restaurant Waiter 2 Mr. Vinay Mobile Centre Assistant 2 Mr. Ram

Kitchen Assistant 1 Mr. Paul

Kitchen Assistant 2 Mr.Federick

Mobile Centre Assistant 3 Mr. Mohan

Form of Ownership Rendezvous Restaurant would be solely owned by Mr. Imran who is responsible for all the capital investments, resources in running the restaurant. Management-team background Mrs. Sudha acts as the head chef for Rendezvous Restaurant and under her Mr.Amit and Mr. Clifford acts as the assistant head chef. Under them they are two kitchen assistants Mr. Paul and Mr. Federick who would be taking care of the kitchen. One consultant is been hired from outside for training the staff of the restaurant for 2 to 3 weeks and later on Mrs.Sudha will be taking care of the training purposes for the staff. Finance is been taken care by Mr. Rahul Roy and the managing director is Mr. Avinash who would be taking care of the marketing activities and strategy to gain the profitability of the business. Under him are two restaurants assistants Mr. Abhay and Mr.Khan who would be
Page 46 of 63

dealing with in and out of the restaurant. Front manager would be Mr.Pavan who would deal with billing and other aspects of the restaurant. Under Mr.Pavan they are two restaurants waiters Mr.Sohail and Mr.Vinay and three assistants Mr. Pradeep, Mr.Ram and Mr.Mohan for the mobile centres in delivering the products to three different locations. Everybody will be working full time.

Risk Assessment
Progress always involves risk; you cant steal second base and keep your foot on firstFrederick Wilcox Like any operations, there is always some risk associated with operating a business. For Rendezvous Restaurant, we see our greatest exposure in the current absence of major competition in this area. A significant threat to our business would most likely be derived from a sudden influx of competing restaurants, backed by a major corporation or conglomerate within the Panjagutta Circle. Likelihood Monitor Competition from the existing restaurants in the area Prevent at source Customers perceiving packaged items sold at mobile centres as stale Failure of mobile centers tarnishing the image of the restaurant Employee attrition Significance Losing focus on the operations of the main restaurant due to the MCs Inexperience in the restaurant industry Detect&Monitor

Inability to attract diet-conscious customers

Low Control

Recommendations The products distributed through the Mobile Centres would be delivered hot and fresh by installing a microwave oven in all the three Mobile Centres. To build the image of the MCs of the restaurant through aggressive marketing tactics in catching the attention of the target customers.

Page 47 of 63

To improve employee retention in Rendezvous Restaurant we would provide incentives, bonus, gifts, and coupons to every employee of the company.

Financial Plan
The financial plan depends on important assumptions; most of them are shown in the following table as annual assumptions. Rendezvous Restaurants financial plan consists of profit & loss projections for 12 months, by quarters for years 2-3, and by years for years 1-5. Likewise, we include a detail budget, cash flow projections, projected balance sheet, and a breakeven calculation. Rendezvous Restaurants financial projections are based on the assumptions that additional facilities will generate an increase in profits of 30% within next couple of years. The new equipment will reduce transportation costs by 15%, thereby increasing our profit margin by 25%. Taking advantage of volume discounts, we will reduce cost of goods sold by 20%. Sales: Rendezvous Restaurant is basing its projected sales on the assumption that the unit will open on May 1, 2011 with an initial investment of 40 lacks. Cost of goods sold: The cost of goods sold was determined by taking actual profit and loss statements from restaurants concepts and then using our pricing structure and guests counts to arrive at costs. Management Payroll: Figures are based upon one manager at the main restaurant at Panjagutta Circle at our maximum bonus and salary levels. Marketing Fees: These funds will be used for the building of various marketing materials. Advertising: These funds will be used, if necessary, to maintain our sales at projected levels. If we are running significantly ahead of our sales projections, then these funds may not be necessary. Management Fees: We will use money for accounting and payroll services of our firm. As we grow in size, this cost burden will shrink due to efficiencies in volume. Personnel Plan Salary per month for the year ( Amount in INR) 2011 2012 2013 Manager Chef 1 Chef 2 Chef 3 Kitchen Assistants 2 15,000 10,000 10,000 10,000 8,000 15,000 10,000 10,000 10,000 8,000 15,000 10,000 10,000 10,000 8,000
Page 48 of 63

Restaurant Waiter1 Restaurant Waiter 2 Restaurant Assistant 1 Mobile Centre Assistants 2 Mobile Centre Assistants 2 Mobile Centre Assistants 2 Total People Total monthly Payroll Total Salary per year Infrastructure Kitchen Utensils Dishwasher Ovens Cutlery, Crockery Cold Storage Dinner Hall Air conditioners Lighting Tables and Chairs Others Computers Miscellaneous incl. legal Refrigerator 5 Buffer Purchases for Kitchen Grand Total 1: 2: 3:

6,000 6,000 4,000 10,000 10,000 10,000 15 99,000 11,88,000

6,000 6,000 4,000 10,000 10,000 10,000 15 99,000 11,88,000

6,000 6,000 4,000 10,000 10,000 10,000 15 99,000 11,88,000

Cost 50,000 75,000 60,000 50,000 50,000 1,00,000 1,00,000 2,00,000 60,000 2,00,000 1,00,000 50,000 10,95,000

Running Expenses per year Rent for the restaurant Lease payment Insurance Utility Power and Water Petrol (10ltr/day *3 vehicles* Rs.60 *250 Days) Purchase of Gas Cylinder, Veggie, Non-Veggie items, Desserts and Soft drinks

3,60,000 6,00,000 1,00,000 1,00,000 4,50,000 24,00,000

Page 49 of 63

Cost Initial Marketing Expenses Infrastructure Total Monthly Payroll Monthly Running Expenses Total

1,00,000 10,95,000 11,95,000 99,000 3,34,166.66 4,33,166.67

Break even Analysis: Break even time period = 1895000/(6000000-5198000) = 2.363 years Break even revenue = 250 * 24000 * 2.363 = Rs.141780000 Break even cost = 1895000 + 12267261.1 = Rs.14162261.1 Ratio of Break even revenue to break even cost = 1.00111
1

Note: The difference can be accounted for the rounding of the decimals during the calculation

Profit and loss A/C 2011 Sales Cost of Sales Gross Margin Gross Margin % Operating Expenses: Payroll 11,88,000 11,88,000 10,000 1,00,000 1,00,000 11,88,000 10,000 1,00,000 1,00,000 60,00,000 24,00,000 36,00,000 60% 2012 60,00,000 24,00,000 36,00,000 60% 2013 66,00,000 26,40,000 39,60,000 60%

Sales and Marketing and Other Expenses 1,00,000 Utilities Insurance 1,00,000 1,00,000

Page 50 of 63

Rent Petrol Lease Payments Total Operating Expenses EBITDA Depreciation EBIT Taxes Incurred @ 35% Net Profit or Net Income

3,60,000 4,50,000 6,00,000 28,98,000 7,02,000 2,19,000 4,83,000 1,69,050 3,13,950

6,00,000 4,50,000 6,00,000 28,08,000 7,92,000 2,19,000 5,73,000 2,00,550 3,72,450

6,00,000 4,50,000 6,00,000 28,98,000 10,62,000 2,19,000 8,43,000 2,95,050 5,47,950

Net Present Value (NPV): The Owner has an opportunity to invest in another project whose expected rate of return is 10% per annum.

Year 0 1 2 3 4 5 6 7 8

Net Cash Flow -4000000 388050 591450 766950 805297.5 845562.4 887840.5 932232.5 978844.1

Net Cash Flow discounted @ 10% Cost of Capital -4000000 352772.7 488801.7 576220.9 550029 525027.7 501162.8 478382.7 456638

Page 51 of 63

1027786

435881.7

NPV 364917.2241 Net Cash Flow is defined as Net Income + Depreciation Net Present Value of the project is Rs. 3,64,917.22 Internal Rate of Return Year Discount 10 0 352772. 7 1 488801. 7 2 576220. 9 3 550029 4 525027. 7 5 501162. 8 6 478382. 7 7 456638 8 435881. 6 9 364917. 1 SUM 267356. 4 172917. 3 81477.4 1 7079.75 92865.7 -175987 418448. 7 401787 385859. 2 370629. 9 356065. 6 342134.4 440367. 5 424746. 4 409745. 9 395338. 7 381499 368201.9 463434. 4 449017. 6 435111. 1 421694. 6 408748. 9 396255.3 487709. 6 474675. 8 462046. 6 449807. 6 437945. 2 426446.2 513256. 3 501800. 1 490649. 5 479794. 8 469227. 1 458937.4

10.5 351176. 5 484388. 1 568434. 2 540141. 1

11 349594. 6 480034. 1 560787. 2 530474. 4

11.5 348026. 9 475738. 5 553276. 8

12 346473. 2 471500. 3 545899. 9 511781. 1

12.5 344933. 3 467318. 5 538653. 5 502743. 3

13

343407.1

463192.1

531534.8

521023

493904

Page 52 of 63

IRR 11.5 12 ?=11.96%

NPV 81477.41 -7079.75 0

Calculation of IRR = 11.5 + ((81477.41*0.5)/(7079.75+81477.41)) = 11.96 Projected Cash Flow

2011 Receipts: Cash on Hand in JAN Sales during the year Total Receipts Payments: Purchases Payroll Sales and Marketing and Other Expenses Utilities Insurance Rent Petrol Lease Payments Owners withdrawal Taxes Total Payments 50,000 60,00,000 60,50,000

2012 2,63,950 60,00,000 62,63,950

2013 3,96,400 66,00,000 69,96,400

24,00,000 11,88,000 1,00,000 1,00,000 1,00,000 3,60,000 4,50,000 6,00,000 2,19,000 1,69,050 55,67,050

24,00,000 11,88,000 10,000 1,00,000 1,00,000 6,00,000 4,50,000 6,00,000 2,19,000 2,00,550 58,67,550 3,96,400

26,40,000 11,88,000 10,000 1,00,000 1,00,000 6,00,000 4,50,000 6,00,000 2,19,000 2,95,050 62,02,050 7,94,350

Cash position @ DEC 2,63,950 Other non cash information: Depreciation 2,19,000

2,19,000

2,19,000

Page 53 of 63

Projected Balance Sheet Assumptions: 1. Cash transactions were made during the year 2. Initial Cash Balance at 01-JAN is 50,000 3. The currency is Indian National Rupee Balance Sheet as on 31-Dec ASSETS Current Assets Cash Inventory Accounts Receivable 5 months of expense reserve Long Term Assets Infrastructure Accu. Depreciation Rental Deposit for Restaurant Deposit for hiring vehicles Total ASSETS LIABILITIES Current Liabilities Accounts Payable Notes Payable Long term Liabilities Total LIABILITIES OWNER CAPITAL Initial Investment Retained Earnings Benefits 2 Owners Withdrawal TOTAL LIABILITIES AND OWNERS CAPITAL Notes: 1. The reserve amount is accounted for five months of running expenses, the details are given below: Notes 2011 2012 2013

2,63,950 50,000 0 21,55,000 10,45,000 -2,19,000 3,00,000 5,00,000 40,94,950

3,96,400 50,000 0 21,55,000 10,45,000 -4,38,000 3,00,000 5,00,000 40,08,400

7,94,350 50,000 0 21,55,000 10,45,000 -6,57,000 3,00,000 5,00,000 41,87,350

40,00,000 3,13,950 0 -2,19,000 40,94,950 40,94,950 3,72,450 -2,40,000 -2,19,000 40,08,400 40,08,400 5,47,950 1,50,000 -2,19,000 41,87,350

Page 54 of 63

Total monthly running expenses required = 4,33,166.67 * 5 = 21,55,000 2. Benefits include money reserved and which will be paid to employees once after they complete 5 years of service with the organisation. For the first two years an amount of 2,40,000 accounted in the second year which includes ninety thousand for the first year and there after 1.5 lacs for the subsequent years. Business Ratios
Ratio for year 2011 Asset Mgmt Inventory Turnover Fixed Assets Turnover Total Turnover Assets Formula for calculation Sales/Inventories Sales/Net Fixed Assets incl. CCA Sales/Total Assets Calculation 120 1.566 Comments OK Value generated in terms of sales is 56% more than the value of the net fixed assets employed Value generated in terms of sales is 46% more than the value of the total assets employed The current profit margin of 5.23% is low because the company is in the initial years of its operation OK Low. Should improve as the profits rise in the subsequent years Low. Should improve as the profits rise in the subsequent years OK

1.465

Profitability Profit margin sales

on

NI to owner/Sales

5.23%

Basic Earning Power (BEP) Return on Total Assets (ROA) Return on Owner Capital (ROC) Return on Capital Employed ROCE

EBIT/Total Assets NI to Owner/Total Assets NI to Owner /Owners Capital EBIT/Capital Employed (Capital Employed=TA-CL)

11.7% 7.6% 7.8% 11.7%

Page 55 of 63

* All figures in the graphs are in Lakhs of Rupees. 1. Sales v/s fixed assets

Net Sales v/s Net Fixed Assets


70.00 60.00 50.00
Net Sales

40.00 30.00 20.00 10.00 0.00 16.26 14.07 Net Fixed Assets 11.88

This chart shows the Net fixed assets and sales of the Rendezvous Restaurant for the year 2011 to 2013. 2. Sales v/s net income (PAT)

Net Sales v/s Net Income


70.00 60.00 50.00
Net Sales

40.00 30.00 20.00 10.00 0.00 3.1395 3.7245 Net Income 5.4795

The chart clearly shows how the income of the Rendezvous Restaurant fill is during the year 2011 2013. In 2012 Net Income is constant as there will be less expenditure for marketing and advertisement, moreover some of the revenue will also add to capital amount. In year 2013 the revenue decreases due to rise in the salary of the staff as for 2years no incensement will be given
Page 56 of 63

to the worker hence in 3rd year salary will be increase of every worker and staff members by approximately 10%. 3. Net income v/s total assets

Net Income v/s Total Assets


6 5
Net Income

4 3 2 1 0 40.9495 40.084 Total Assets 41.8735

The chart shows the Net fixed assets and Net income of the Rendezvous Restaurant. It show how the income increased instead of fixed assets.

Timescale for management and implementation Activity Starting Finishing date date
Taking place on rent
Licensing

Duration
6 days
30 days

Nov 1st
Nov 1st

Nov 6th
Dec 1st

Preparing shop agreement for the advances given to owner Giving advertisement for recruitment of staff Purchasing the required equipment Purchasing non perishable raw material Decorating the shop according to the requirements Searching dealers of fish and making deals with

Nov1

st

Nov 6

th

6 days

Nov1st Nov 1st Nov 1st Nov1st Nov15th

Nov 15th Nov 15th Nov 15th Nov 30th Nov 20th

15 days 15 days 15 days 30 days

5 days
Page 57 of 63

them Orientation training to Nov 20th staff The whole marketing plan Dec 1st Financial projection Nov 20th Dec 20th Dec 26th

Nov25th Feb 10th Nov30th Dec 24th Dec 26th

5 days 70 days 10 days

Inviting guests Opening of restaurant

4days -

Note (time scale is between December 2010 to Jan 2011)

Monitoring & Evaluating Progress


ISO 9000 (Quality Audit System) It is a family of standards for quality management systems. ISO 9000 is maintained by ISO, the International Organisation for Standardisation and is administered by accreditation and certification bodies. It includes the following: a set of procedures that cover all key processes in the business; monitoring processes to ensure they are effective; keeping adequate records; checking output for defects, with appropriate and corrective action where necessary; regularly reviewing individual processes and the quality system itself for effectiveness; and facilitating continual improvement

Scope Rendezvous Restaurant has developed and implemented this quality management system to reveal its ability to consistently provide a product that meets customer and statutory and regulatory requirements, and to address customer satisfaction through the effective application of the system. Quality Policy Rendezvous Restaurant accepts responsibility for the complete satisfaction of its customers. The company exercise this responsibility through adequate training of their employees, adherence to proven procedures, and total commitment to meeting and exceeding customer requirements.

Page 58 of 63

Quality management system The Company establishes, documents, implements, and maintains a quality management system and continually improves its effectiveness in accordance with the requirements of the ISO 9001:2008 International Standard, which comprises: Determines the processes needed for the quality management system and their application throughout Rendezvous Restaurant. Rendezvous Restaurant determines the sequence and interaction of these processes, Rendezvous Restaurant determines criteria and methods needed to ensure that both the operation and control of these processes are effective, It ensures the availability of resources and information necessary to support the operation and monitoring of these processes, Rendezvous Restaurant monitors, measures where applicable and analyses these processes, Rendezvous Restaurant implements actions necessary to achieve planned results and continual improvement of these processes. These processes are managed by Rendezvous Restaurant in accordance with the requirements of the ISO 9001:2008 International Standard. Where Rendezvous Restaurant chooses to outsource any process that affects product conformity with requirements, Rendezvous Restaurant ensures control over such processes. The type and extent of control of such outsourced processes are identified within the quality management system. Processes needed for the quality management system referred to above include processes for management activities, provision of resources, product realisation, measurement, analysis, and improvement. Documentation requirements The quality management system documentation includes:

Documented statements of a quality policy and quality objectives, A quality manual, Documented procedures and records required by the ISO 9001:2008 International Standard, and Documents, including records determined by Rendezvous Restaurant to be necessary to ensure the effective planning, operation and control of its processes.

Control of records Records established to provide evidence of conformity to requirements and or the effective operation of the quality management system shall be controlled. Rendezvous Restaurant will establish a documented procedure to define the controls needed for the identification, storage, protection, retrieval, retention time and disposition of records. Records will remain legible, readily identifiable, and retrievable.

Page 59 of 63

Responsibility and authority Top management ensures that responsibilities and authorities are defined and communicated within Rendezvous Restaurant to promote effective management of the quality system. An Organisational Chart illustrates the responsibility and relative authority of the personnel who manage, perform, and verify the activities affecting the QMS. Changes to the quality system are planned within the framework of management reviews. These changes may be in response to changing circumstances, such as product, process, capacity, or other operational or organisational changes; or to improve the effectiveness and efficiency of the quality system. Management Review Top management reviews Rendezvous Restaurant quality management system, at planned intervals, to ensure its continuing suitability, adequacy and effectiveness. The review includes assessing opportunities for improvement and the need for changes to the quality management system, including the quality policy and quality objectives. Records from management reviews are maintained
Review input

The input to management review includes information on below:


Results of audits, Customer feedback, Process performance and product conformity, Status of preventive and corrective actions, Follow-up actions from previous management reviews, Changes that could affect the quality management system, and Recommendations for improvement.

Review output The output from the management review includes any decisions and actions related to:

Improvement of the effectiveness of the quality management system and its processes, Improvement of product related to customer requirements, and Resource needs.

Page 60 of 63

Resource management Rendezvous Restaurant determines and provides the resources needed

To implement and maintain the quality management system and continually improve its effectiveness To enhance customer satisfaction by meeting customer requirements.

Design and development Rendezvous Restaurant plans and controls the design and development of product. During the design and development planning, S&S Company determines:
The design and development stages. The review, verification and validation that are appropriate to each design and

development stage, and


The responsibilities and authorities for design and development.

Production and service provision As applicable, Rendezvous Restaurant plans and carries out production and service provisions under controlled conditions. Controlled conditions include:
o o o o o o

The availability of information that describes the characteristics of the product, The availability of work instructions, as necessary, The use of suitable equipment, The availability and use of monitoring and measuring equipment, The implementation of monitoring and measurement activities, and The implementation of product release, delivery and post-delivery activities.

Monitoring and measurement Internal audit Rendezvous Restaurant conducts internal audits at planned intervals to determine whether the quality management system:

Conforms to the planned arrangements to the requirements of ISO 9001:2008 and to the quality management system requirements established by Rendezvous Restaurant and Is effectively implemented and maintained.

Rendezvous Restaurant applies suitable methods for monitoring and where applicable, measurement of the quality management system processes. These methods demonstrate the
Page 61 of 63

ability of the processes to achieve planned results. When planned results are not achieved, correction and corrective action is taken, as appropriate. Corrective action Rendezvous Restaurant takes action to eliminate the causes of nonconformities in order to prevent recurrence. Corrective actions are appropriate to the effects of the nonconformities encountered. A documented procedure is established to define requirements for:

Reviewing nonconformities (including customer complaints), Determining the causes of nonconformities, Evaluating the need for action to ensure that nonconformities do not recur, Determining and implementing action needed, Records of the results of action taken Reviewing the effectiveness of the corrective action taken.

Preventive action Rendezvous Restaurant determines actions to eliminate the causes of potential nonconformities in order to prevent their occurrence. Preventive actions are appropriate to the effects of the potential problems. A documented procedure is established to define requirements for:

Determining potential nonconformities and their causes, Evaluating the need for action to prevent occurrence of nonconformities, Determining and implementing action needed, Records of results of action taken Reviewing the effectiveness of the preventive action taken.

Exit Plan
Ideally, Rendezvous Restaurant will expand to five units in the next 10 years. At that time, we will entertain the possibility of a buy-out by a larger restaurant concern by vigorously aiming at customer satisfaction. If Rendezvous Restaurant faces random circumstances then there are some ways by which they can exit the business easily. Rendezvous Restaurant will first attempt to sell the operation and use the proceeds to clear all outstanding balances. Any further outstanding balances will be borne from the savings of the venture. From the total investment Rendezvous Restaurant has kept major portion of their finance in savings so that at the time of unpredicted circumstances it can be used. If the business runs in loss for more than 8 months then it will be wise decision to exit the risk.
Page 62 of 63

Bibliography
Heizer, J., & Render, B. (2010). Operations Management. Prentice Hall. Kotler, P. (1992). Marketing Management. Mark EasterSmith, P. R., Jackso, P. P., & Lowe, a. D. Management Research. Moore, K., & Pareek, N. (2006). Marketing: the basics (2nd ed.). New York: Routledge. Mullins, L. J. (2007). Management and Organisational Behaviour (8th ed.). Pearson Education Limited. Ritzman, L. P., & Malhotra, a. M. (2007). Operations Management. Walker, O., Mullins, J., & Boyd, a. J. (2010). Marketing Strategy. Young, E. &., Nissenbaum, M., Raasch, B. J., & Ratner, C. L. (2004). Financial Planning Guide.

Websites http://articles.bplans.com/starting-a-business/how-to-start-a-restaurant/210 www.startupbizhub.com/How-to-Start-an-Indian-Restaurant-Business.htm www.virtualrestaurant.com/sample.htm http://www.nrai.org/ind_updates.asp?id=4 http://www.themanager.org/pdf/ValueChain. http://www.restaurantreport.com/departments/biz_restaurant_marketing.html

Page 63 of 63

You might also like