restaurant

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Chop ‘n’ Chew BUSINESS PLAN Of Presented by: NEHA SAXENA PRIYA JAIN RAVI SHUKLA SACHIN GUPTA

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Chop ‘n’ Chew EXECUTIVE SUMMARY FIRM OVERVIEW MANAGEMENT PRODUCTS & SERVICES INDUSTRY ANALYSIS FUNCTIONAL PLANS IMPLEMENT- -ATION & EXIT PLAN Keys to success Mission Objectives Firm ownership Firm location & facilities A P P R O A C H Organizational structure Management team Competitive comparison Sales literature Financial plan Technology Business analysis Marketing plan Personnel plan Future opportunities Exit, expansion plan Operations Implementation Target market segment Restaurant design

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EXECUTIVE SUMMARY Chop ‘n’ Chew MISSION To combine vegetarian menu variety, atmosphere, ambiance and friendly staff to create a ‘sense of place’ in order to reach our goal of creating an overall value in eating experience.

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EXECUTIVE SUMMARY contd… Chop ‘n’ Chew OBJECTIVES Complete construction in less than four months after financing . Remaining a unique restaurant with eclectic food and service. Keep employee labour cost between 16 -18 % of the revenue . Keeping food cost under 35% revenue . Averaging sales between Rs. 20,00,000 to Rs. 40,00,000 for the first three years . Open two more outlets in Lucknow in the next five years of our operation.

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EXECUTIVE SUMMARY contd… Chop ‘n’ Chew KEYS TO SUCCESS Controlling costs at all times, in all areas . A ‘spice of life’ menu. Serve the highest quality food at reasonable prices. Unique, innovative, entertaining and mid-scale atmosphere. Employee retention focus.

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FIRM OVERVIEW Chop ‘n’ Chew FIRM OWNERSHIP The restaurant will be registered under the Indian Partnership Act, 1932. The restaurant will start as a partnership firm. There will be four partners : Neha Saxena, Priya Jain, Ravi Shukla & Sachin Gupta.

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FIRM OVERVIEW contd… Chop ‘n’ Chew CHOP ‘n’ CHEW will range in size from 2500-4000 sq. feet. The site/building selection will be done based on the following criteria : FIRM LOCATION & FACILITIES community size minimum of 40,000 people within five miles easy access to parking lot with a minimum of 120 parking spaces mid cost land not to exceed Rs. 90,00,000 Optional locations : Bhootnath (Indira Nagar), Patrakarpuram (Gomti Nagar), Kapoorthala (Aliganj) or shops in malls but we will have compromise with our space requirements there.

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FIRM OVERVIEW contd… Chop ‘n’ Chew OPERATIONS the restaurant will operate during peak service time to take advantage of street traffic and after-hour patronage from the entertainment facilities in the area Operating Criteria : the restaurant will serve lunch, dinner and after hours dining during the week and weekends service will be available during the following hours : Lunch : Monday to Sunday 11 a.m. – 2:30 p.m. Dinner : Monday to Sunday 5:30 p.m. – 12 midnight

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FIRM OVERVIEW contd… Chop ‘n’ Chew RESTAURANT DESIGN Patio : During the evenings & peak months customers can also sit outside on our patio and we will offer a special summer menu, featuring lighter fare, exotic drinks, as well as non-alcoholic offerings. The patio setting will be a fun and casual atmosphere for the summer crowd. Single-Level Design Concept : The total space requirement is 4,000 square feet. The restaurant will feature a comfortable and open concept design. The central dining area will allocate 96 seats and the lounge 22 seats. In total, the restaurant will provide seating for 118 patrons. Where possible, consideration will be given to incorporate a dining patio. Zoning, parking, and accessibility issues will be reviewed as part of this analysis.

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MANAGEMENT Chop ‘n’ Chew No shortage of qualified labour staff is expected from the local labour pool. Initial staff support team will ‘wear many hats’. The initial management team depends on its founders. MANAGEMENT TEAM CHOP ‘n’ CHEW is currently the creative idea of its four partners.

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MANAGEMENT contd… Chop ‘n’ Chew ORGANIZATIONAL STRUCTURE SACHIN GUPTA MARKETING & OPERATIONS KITCHEN CREW RAVI SHUKLA FINANCE PRIYA JAIN OPERATIONS & FINANCE NEHA SAXENA OPERATIONS & MARKETING CLEANING CREW SERVICE STAFF (WAITERS) ACCOUNTANT & OTHERS CHIEF CHEFS

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Chop ‘n’ Chew MENU The CHOP ‘n’ CHEW menu will be moderate sized, and moderate-low priced offering a collection of Indian and fast food items with a common theme -- healthy (low-fat, low cholesterol, natural ingredients), flavorful, and familiar . Our goal is to create the image of light satisfying and still nutritious food. PRODUCTS/SERVICES

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PRODUCTS & SERVICES contd… Chop ‘n’ Chew SALES LITERATURE TABLE TOPPERS : will explain concept & differences between lunch & dinner , ‘Theme Nights’, announcing job opportunities and possibly mentioning franchisee possibilities. We plan to produce three pieces of sales literature: BROCHURES/ HANDOUTS: will explain that we can handle large parties, another will list our daily featured entries. DIRECT MAIL PIECE: will explain our concept, list prices and show inside photographs of our restaurant. We will produce and mail this after our first quarter of operation.

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PRODUCTS & SERVICES contd… Chop ‘n’ Chew SERVICES There will be four ways a customer can purchase food: Sit at one of the 96 seats in the dining room or in lounge and get full service from a waitperson. Self-service in the patio. A separate take-out counter will service those who wish to pick up their food. Delivery (an indirect form of take-out) will be available at certain times and to a limited area.

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PRODUCTS & SERVICES contd… Chop ‘n’ Chew TECHNOLOGY CHOP ‘n’ CHEW plans to provide WiFi support to its customers after a year of its operation. CHOP ‘n’ CHEW plans to set up a website too for online ordering. CHOP ‘n’ CHEW plans to invest a high-speed computer to provide a fast and efficient connection to the internet and also be a link to our cash registers.

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PRODUCTS & SERVICES contd… Chop ‘n’ Chew FUTURE OPPORTUNITIES Expand to catering business within ten months of operation. CHOP ‘n’ CHEW foresee no more than two units in first five years of its operation. A second principle in our growth will be to cluster our development. Afterwards, we will work with neighbouring geographical areas for development. Slow & cautious growth during its initial start-up phase.

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PRODUCTS & SERVICES contd… Chop ‘n’ Chew COMPETITIVE COMPARISON OUR COMPETITIVE EDGE Big retail food chains like McDonalds, Pizza Hut, Dominoes, etc. Local players like Classic, Neelkanth, Bikanerwala, Moti Mahal, Madhurima, Aryans, Nirula’s. MAIN COMPETITORS Variety is the name of our game. There will be no tipping at CHOP ‘n’ CHEW. Our portions will be “just right”. Lower price point for a complete meal. Dining and entertainment will go hand in hand for our customers.

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INDUSTRY ANALYSIS Chop ‘n’ Chew TARGET MARKET SEGMENTS AGE Seniors, baby boomers, young married couples with/without children and white collar workers GENDER We equally target both genders INCOME Middle class bracket & high side of low income individuals OCCUPATION White collar workers, young professionals, students and most of mid-Lucknow

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INDUSTRY ANALYSIS contd… Chop ‘n’ Chew BUSINESS ANALYSIS It accounts for over Rs. 540 billion annually in sales. More & more people have less time, resources and ability to cook for themselves. CHOP ‘n’ CHEW will be well positioned for the current interest in lighter, healthier foods at moderate to low prices. The food service business is the third largest industry in the country. The independent restaurant accounts for 15% of that total. The average Indian spends 15% of his/her income on meals away from home. There are 600 new restaurants opening every month and over 200 more needed to keep pace with increasing demand.

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FUNCTIONAL PLANS Chop ‘n’ Chew MARKETING STRATEGY : Pricing All menu items will be moderately priced. While we are not striving to be the lowest priced restaurant around, we are aiming to be the value leaders.

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FUNCTIONAL PLANS (MARKETING) contd… MARKETING STRATEGY : Promotion Word of Mouth Local Store Marketing Local Media Chop ‘n’ Chew V.I.P Party Grand opening celebration Restaurant Night- every Saturday Special ethnic food nights In-store tour to new customer Free T-shirts to customers Sponsoring meals for elderly in nursing homes, hospitals Lunches for various associations Billboard Advertisement Radio Campaign Newspaper Campaign Cable TV Direct mail piece

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FUNCTIONAL PLANS contd… Chop ‘n’ Chew SALES STRATEGY Hiring employees who genuinely enjoy their jobs and appreciate CHOP ‘n’ CHEW unique offerings. Interacting with our customers personally, so that feedback directly goes to the owners. Evaluating food choices for popularity, and keeping favourites on the menu as we rotate seasonal food and specials.

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PERSONNEL PLAN We believe the personnel plan is in good proportion to the size of the restaurant and projected revenues . The staff will include 23 full-time employees and five part-time employees, who will work a total of 98 man-hours per week per employee. FUNCTIONAL PLANS contd… Chief chef with an experience in different restaurants (2) Preparation cooks (2) Cooks that work directly with the chief chef (4) Waiters; Full time (10), Part time(5) Dishwasher (3), People cleaning the restaurant (2) Chop ‘n’ Chew

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FINANCIAL PLAN FUNCTIONAL PLANS contd… IMPORTANT ASSUMPTIONS : Chop ‘n’ Chew Rs. 2,00,00,000 of investment is needed over the next year for renovations, furniture, kitchen equipment, liquor license, food & restaurant supplies, legal fees, working capital, marketing and personnel. We assume a growing economy, without major recession . We assume that there are no unforeseen changes in the expectancy in the popularity of our restaurant. We assume access to investments and financing are sufficient to maintain and fulfill our financial plan.

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FUNCTIONAL PLAN (FINANCIAL) contd… Chop ‘n’ Chew STARTUP EXPENSES AMOUNT Rs. DESIGN Electrical & Structural Engineering Fees 30,000 Design Consultants (kitchen, interior, plumbing & dining) 40,000 Engineer & Architect Fees 60,000 CONSTRUCTION Plumbing 2,00,000 HVAC (air return, air ducts etc.) 5,00,000 Electrical 50,000 Disposal & Demolition 50,000 Structural Construction (4 months general labour) 8,00,000 Façade (exterior construction) 5,00,000 Plaster (dry wall) 4,00,000 Interior Finishes (2500-4000 sq. ft.) 9,00,000 Flooring 4,50,000 Fire Alarm System 7,000 Security & Phone System 25,000 Metal Work 1,00,000 EQUIPMENT Stools, chairs, tables, uniforms, stationery, brochures 2,00,000 Glassware, utensils & Supplies 1,25,000 START-UP SUMMARY

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STARTUP EXPENSES AMOUNT Rs. EQUIPMENT contd… Lighting & Lamps 90,000 OPERATIONAL Permit Fees of Various Authorities 60,000 Business License 50,000 Utilities, Disposal, Tax & Insurance 1,00,000 Security Deposits (phone, electricity, gas, water) 30,000 Bank Costs 20,000 Initial Marketing 2,00,000 Start-up Salary (chefs, waiters, cleaners) 80,000 Inspections 30,000 Legal Fees 25,000 Chartered Accountant Fees 25,000 Music/Stereo/Tv 1,50,000 TOTAL START-UP EXPENSES 52,97,000 FUNCTIONAL PLAN (FINANCIAL) contd… Chop ‘n’ Chew

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STARTUP ACCOUNTS AMOUNT Rs. START-UP ASSETS NEEDED Other Current Assets 5,00,000 TOTAL CURRENT ASSETS 22,00,000 Long-Term Assets 90,00,000 TOTAL ASSETS 1,12,00,000 Cash 9,00,000 Start-up Inventory 8,00,000 TOTAL START-UP EXPENSES 52,97,000 TOTAL REQUIREMENTS 1,64,97,000 START-UP CAPITAL INVESTMENT Ravi Shukla 12,00,000 Sachin Gupta 15,00,000 Neha Saxena 9,00,000 Priya Jain 9,00,000 LOAN FROM BANK 1,30,00,000 FUNCTIONAL PLAN (FINANCIAL) contd… Chop ‘n’ Chew TOTAL CAPITAL 1,75,00,000

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Our strategy is simple, we intend to succeed by giving people a combination of great, healthy, interesting food and an environment that attracts people like a magnet. Implementation is simple, but that’s in the doing of it, not in the plan. Chop ‘n’ Chew IMPLEMENTATION IMPLEMNTATION & EXIT PLANS

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IMPLEMENTATION & EXIT PLANS contd… Chop ‘n’ Chew EXIT PLAN In the event that our venture cannot achieve profitability and retire the encumbrances, we will: sell the operation and use the proceeds to clear all outstanding balances Any further outstanding balances will be borne by the partners on a weighted percentage basis of the total amounts due in bankruptcy proceedings.

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RESOURCES Chop ‘n’ Chew Entrepreneurship: New Venture Creation by David H Holt www.restaurantowner.com www.bplans.com www.quantifiedmarketing.com www.squidoo.com economictimes.indiatimes.com

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Chop ‘n’ Chew THE END