BUISSNESS PLAN

A
Report on
BUISNESS PLAN OF A RESTURANT
Presented to the Faculty of the
School of Management & Entrepreneurship
AURO University
Surat

In Partial Fulfillment
Of the Requirements for the Degree of
Master of Business Administration

Submitted by:
PALAK MANDHYAN
PAYAL AGARWAL

Submitted to:
Prof. ROHIT SINGH
Entrepreneurship Development and Venture Planning
March 2016
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BUISSNESS PLAN

INDEX
Content
1.0 Executive Summary
1.1 Mission statement
1.2 Business Objectives
2.1 Company Ownership & Structure
2.2 Start up Funding and Source of Funds
2.3 Use of funds
2.4 Company Locations and Facilities
3.1 Service Description
3.2 Competitive Landscape
3.3 Daily Operations and Production
4.0 Competitive Edge
4.1 Target Market
4.2 Positioning
4.3 Advertising Strategy
4.4 Marketing Programs
4.5 Pricing Strategy
4.6 Sales Strategy
4.7 Sales Forecast
4.8 Milestones
4.9 Exit Strategy
5.0 Organization and Management
5.1 Organizational Structure
5.2 Management team
5.3 Personnel plan
6.0 Financial plan
6.1 Start up cost:6.2 Projected Profit and loss account and balance sheet
6.3 Payback period
6.4 Break even Analysis

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BUISSNESS PLAN

1.0 Executive Summary

Le cuisine restaurant, India would be a restaurant located at athwalines, Surat, with a startup
capital of Rs. 80 lakh (cost of land not included as already owning a land). We would be looking
to expand the existing operations of Le cuisine and also look to open up to 2 more restaurants
offering a delectable Indian cuisine that blends foods from all parts of the Indian subcontinent.
Given the excellent management team and experience of the principals these ventures are sure to
be profitable and generate employment and revenues in the communities they serve. This
expansion is of a latter discussion. This plan would deal with the setting up a restaurant and all
analysis related to finance, marketing and other projections.
1.1 Mission statement
Our Mission is to provide a unique and relaxing dining experience similar to dining at home. We
will strive to achieve this goal by: 1) by providing menu items incorporating quality ingredients
at reasonable prices, and 2) we will be mindful of the well being of our customers and staff
treating each and everyone with dignity and respect just like we would at our own home!
1.2 Business Objectives
The primary objectives of the business plan for Restaurant are below:

To be the premier home style restaurant in Surat, Gujarat, India.

To provide quality meals at reasonable prices with exemplary service
Achieve Cover ratios of 1.00 X at each lunch and dinner serving
To achieve Prime Cost Ratios lower than65%

2.1 Company Ownership & Structure

Le cuisine restaurant is an independent restaurant and one of its kinds based in the heart of Surat
city. The restaurant will be co-owned by Ms Payal Agarwal and Palak Mandhyan with a start-up
capital of Rs 80 lakh.
The restaurant will be open from morning 11 am. to night 11 pm.
2.2 Start up Funding and Source of Funds
As the requirement of start-up capital is Rs 80 lakh, the owners would in total bring out 25% of
that required fund from their own pocket, while the rest would be taken from the bank ( Bank of
Baroda).
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BUISSNESS PLAN

Start up funding
Owners capital
Bank loan

25%
75%

Rs. 20 lakh
Rs. 60 Lakh

2.3 Use of funds

How start up fund will be utilized?
Furniture and interior
50 lakh
( including chairs and tables)
Initial advertisements
2 lakh
Kitchen equipments
24 lakh
Working capital
4 lakh
2.4 Company Locations and Facilities
The Le cuisine restaurant would have its first branch located in Dr. Manshukhlal Tower, Nr.
Chowparty, Athwalines, Surat, and Gujarat, India. It would be an 1600 sq. ft restaurant with an
capacity of 15 tables and maximum capacity of 75-80 people. The restaurant is located at major
traffic area.
3.1 Service Description
Le cuisine restaurant. through its investment by Bank of Baroda. Will be able to offer its clientele
a unique blend of Indian cooking different from the typical North or South Indian fare dished out
by most restaurants. Using the concept of fusion cooking, Le cuisine will be able to present
unique and eclectic assortments of appetizers, entrees and deserts that are rare to find in a typical
Indian restaurant.
3.2 Competitive Landscape
With its incredibly diverse population Surat City is able to support many restaurants serving up
different varieties of foods. The Indian full service restaurant is no different and Surat City
currently boasts around 200 restaurants that serve some kind of India fare. However of the 200
odd full service Indian restaurants the vast majority of them focus on providing the traditional
and dependable delicacies of North Indian cooking; around 20% of the all Indian restaurants
offer South India delicacies and very few of them are true competitors to Le Cuisine. Given the
unique blend of foods from the entire sub-continent. Le-Cuisine will be able to offer improved
derivatives of classic Indian cooking.
3.3 Daily Operations and Production

BUISSNESS PLAN

Le cuisine restaurant will be open 7 days a week for lunch and dinner requiring multiple shifts.
Palak Mandhyan will write the schedules. The schedules will be written in a manner that will
allow the ability to increase or decrease hourly labor according to sales volume in order to
maintain a consistent labor cost control. Proper labeling and rotation techniques, accompanied by
ample storage facilities will ensure that high quality prepared product will be sufficiently
available to meet the demands during peak business hours. Replenishment and ongoing
preparation will continue during off peak business hours.
Payal Agarwal will be responsible for ordering, receiving and maintaining sufficient inventory to
meet production demands. Ordering schedules will be staggered with perishable products being
ordered multiple times per week to preserve freshness. Standard grocery and supply orders will
be ordered less often, according to a predetermined schedule and storage capacity.
They will appoint a restaurant manager who will rely on operational checklists to verify that each
work shift has been properly prepared for and to insure the operational standards are followed
before, during and after work shifts.
The restaurant layout, including the dining room, kitchen and serving line, has been designed for
efficiency and flexibility to accommodate the fluctuation in customer traffic and peak meal
periods.
Upon arrival, guests will be greeted immediately by either the assistant manager or a server and
asked for the seating preference. Drink orders will be taken and guests can munch on our
complimentary rolls. Once the customers order is taken, the order will automatically be printed
to a requisition printer located in the grill area. The grill cook will use the printed ticket to keep
track of orders and place the meal under the heating lamps until the order is complete.
The kitchen preparation line has been designed to be operated by a minimum staff of 1 line cook
and a maximum of 4 cooks. This design allows line staffing to be adjusted to the business
volume. Shift changes for all staff will involve cleanup, restocking and preparation. All monies
will be settled at the end of each shift. The closing shift will involve designated closing duties
that will leave the restaurant clean and fully prepared for the next day.

.
4.0 Competitive Edge
Todays competitive full service restaurant businesses there are three things that are keys to
success:
Location and Leases
Excellent and diverse menu priced reasonably
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BUISSNESS PLAN

Ambience and customer service

The choice of locations is the city of Surat. Its a city whose people are known to be food lovers.
Our diverse menu selection during both lunch and dinner hours has been developed after years of
experience in the industry by our chefs. Care has been taken to pick crowd pleasers and house
specials that are not easy to find in Indian dining and the fare price delivery is reasonable and in
line with local competitors.
4.1 Target Market:
Lower to upper middle class families staying in Surat city would be the target market
4.2 Positioning
We are positioning ourselves to market to the lower to upper middle class clientele of well heeled
working professionals who live and work in Surat City. Our typical customer is well educated
having a graduate degree, working and/or living in Surat city, looking for a tasteful and different
Indian dining experience than what is offered by the local deli.
4.3 Advertising Strategy
Le cuisine restaurant will advertise using all possible forms of media including print, radio and
television.
Our print media advertising will be focused on publications like restaurants journals and
local news paper like Gujarat smachar and in exceptional cases in Times of India.
Social media advertisement like Face book, Instagram, blogs.
Television advertisements in local channels.
Public Relations
Survey Cards will be placed at each table for patrons to collect data on the following:
Quality of the Food & Service
Demographic Information to target marketing efforts
Sign In Book/ Ledger & Fish Bowl for Business Cards to create an E-mail List
4.4 Marketing Programs
Initial marketing campaign will consist of contacting our databases clients and notifying
them of our grand opening. We will seek the use of a local mailing service program to
assist us in the implementation of the campaign

BUISSNESS PLAN

Ongoing:- will meticulously keep our database current and use the Constant Contact
program
Loyalty and Birthday Club members will notified of upcoming special menu items and to
alert them of our catering service.
4.5 Pricing Strategy
Cost accounting is important, since the profitability of individual dishes can vary significantly
and will initially determine the cost of the menu items. We will take advantage of our excellent
credit terms with our suppliers and will also update our menu to take advantage of seasonality for
example in local produce items. We will also closely monitor the Prime Cost Report which
focuses on the controllable expenses of Cost of Goods Sold and Labor. As a new start up we can
currently control employee cost by hiring family members who will work for low and reduced
wages.
4.6 Sales Strategy
Customer service is of the utmost importance. Customer surveys estimate that only 1 in 20
customers that have a problem in a restaurant will tell management about it. It will be our goal to
provide a wonderful home style meal combined with superior customer service. Training
programs will include teaching materials to train our employees about service attitudes, customer
perception and how to handle guest complaints.
Palak will conduct periodic staff meetings intended to review policy, increase guest satisfaction
and to keep a general line of communication between staff and management. All guest
complaints will be acknowledged by the staff and referred to management. Programs will be in
place for all types of guest complaints. More serious complaints will be documented.
4.7 Sales Forecast
Sales forecasting
Sales
Year 1
Year 2
Year 3
1036800 1099008 1221120
Dinner
0
0
0
Lunch
5068800 5990400 6144000
Catering business
174000
696000
870000

Total sales

1561080
0

1767648
0

1922520
0

1092756
0

1237353
6

1345764
0

Controllable costs
COGS(70%)

BUISSNESS PLAN

Controllable
profits

4683240

5302944

5767560

4.8 Milestones

Secure Lending for Initial Start Up, Working Capital

Complete Interior Dcor
Complete Kitchen / Wait Station Needs
Hire Back Staff
Hire Front Staff
Secure a Point of Sale System
Start of restaurant
Cash Flow

05/01/2017
03/01/2017
03/01/2017
03/01/2017
03/01/2017
04/01/2017
01/04/2016
31/03/2017

4.9 Exit Strategy

Disposal of kitchen equipment, and restaurant furniture, and fixtures would occur at auction. The
additional assets such as the staffs uniforms, table cloths, and cutlery could
Be sold at auction or on ebay. Food inventory because of its quick perishable time would be
considered a write off.
5.0 Organization and Management
5.1 Organizational Structure
Le cuisine restaurant expects to hire 21 employees. Together, Payal Agarwal and Palak
Mandhyan will personally select each candidate. Theyve adopted an effective interview process
designed to staff the restaurant.
5.2 Management team
Le cuisine restaurant will be owned by Palak . He has worked previously in an local restaurant
and after earning a degree, he has earned quite an experience and knowledge to be competitive.
Jigarkumar Patel also has a masters degree and will be working here as an assistant manager.
5.3 Personnel plan
Personnel plan
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BUISSNESS PLAN

Salaries
Owner(2)
Assign manager (1) per month Rs. 12000
Cooks(4) per month Rs. 8000
Dishwashers (2) Rs. 5500
Servers/ cashier (8) Rs 8000
Bookkeeper (1) Rs. 9000
Catering employees (4) Rs.3000
Total

Year 1
144000
384000
132000
768000
108000
1536000

Year 2

Year 3

146880
391680
134640
783360
110160
144000
1710720

149760
399360
137280
798720
112320
146880
1744320

6.0 Financial plan

Important assumptions:

Average Lunch price is Rs. 128

Average Dinner price is Rs. 192
21 Employees are working
20dinning tables with capacity of 90 people
Caetering business 4 parties a month at Rs 145 for first year(only 6 months sales in first
year), then 8 parties for the second year and 10 there onwards. Additional staff( 4 person
at Rs.30 per hour for6 hrs party)

6.1 Start up cost:(in

lakhs)
Start-up expenses
Graphic logo and name creation
Contingency
outdoor sign
Building improvements
Working capital
Pre-opening expenses

1
3
1.5
38
4
7.85

Start-up assets
Kitchen equipments
Computer
Table cloth, napkins, plates etc
Total

24
0.5
0.15
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BUISSNESS PLAN

6.2 Projected Profit and loss account and balance sheet

Particulars

Profit and loss account

Year 1

Income
Diiner
lunch
cateoring business

Year 2

Year 3

10368000
5068800
174000

10990080
5990400
696000

12211200
6144000
870000

15610800
10927560
4683240

17676480
12373536
5302944

19225200
13457640
5767560

10000
0
1608000
15000
4000
3046240
374000
2672240
858457.1
1813782.9
151148.58

1200
0
1728000
15000
3800
3554944
374000
3180944
1021878
2159066
179922.1

1000
0
1762702
15000
3600
3985258
374000
3611258
1160117
2451142
204261.8

Balance sheet (in lakhs)

Year 1

Year 2

Total sales
COGS
Gross profit
Expenses
Accounting and legal
Bad debts
Salaries and wages
Insurance
Miscellenious
Profit before depritiation and tax
Depretiation
Profit before tax
Tax((32.125%))
Net profit
Monthly profit to owner

Particulars
Assets
Current Assets
Cash
Bills receivable
Inventory
Other Current assets
Total current Assets
Fixed assets
Fixed assets or long term assets
Depretiation
Total long term assets

Year 3

12
12
0.35
1
25.35

14
16
0.66
0.6
31.26

14
9
0.55
0.5
24.05

374
37.4
336.6

336.6
37.4
299.2

299.2
37.4
261.8
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BUISSNESS PLAN

Total assets
Liabilities and Capital
Current Liabilities
Accounts payable
Current Borrowings
Other current liabilities
Total Current Liabilities
Long term Liabilities
Total Liabilities
Invested Capital
Retained Capital
Earnings
Total Capital
Total liabilities and capital
Net worth

361.95

330.46

285.85

8
2
0.5
10.5
60
70.5

6
0
0.25
6.25
50.9311
57.1811

7
0
0
7
29.34043
36.34043

282.3811
9.068915

264.21
9.06891

240.4407
9.068915

291.45
361.95

273.279
330.46

249.5096
285.85

291.45

273.279

249.5096

6.3 Payback period

Payback period
Total 3 year profit
Average
Investment
Payback period
Pay back period in years

6423990.9
2141330.3
8000000
3.73599533
3yrs & 9 months

6.4 Breakeven Analysis

Break even Analysis
Dinner
Lunch
Catering buisness
Total sales
Net profit
Break even
avg cost
Break even quantity (per year}

10368000
5068800
174000
15610800
1813782.9

10990080
5990400
696000
17676480
2159066

12211200
6144000
870000
19225200
2451142

13797017
224
61593.82
6

15517414
224
69274.1696
4

16774058
224
74884.1875
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BUISSNESS PLAN

Break even quantity (per

month}

5132.818
9

5772.84747

6240.34895
8

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