PREFACE

It is a pleasure to keep this report in front of you. Project

report is vitally important for M.B.A students because it develops
the feelings among the students about industrial environment
and business to develop the practical base. Theoretical
knowledge is true only when we apply the same in the practical.

In the final year M.B.A there is a subject named “Accounting

for Managers”’. Under the said curriculum a student have to
make feasibility report to start a business. At the same time we
must know that what are the Strengths and weakness of the
business by analyzing overall organizational structure and its
operations. And simultaneously analyze the opportunities and
threats for establishing the restaurant.

In order to establish co-relation between the theoretical

studies and practical training, it was suggested that some
company should be analyzed and accordingly we had done our
Feasibility report on XYZ.
 ACKNOWLEDGEMENT

We, the above mentioned students of the N.R. Institute of

Business Management, Ahmedabad, here by pay our very sincere
thanks to the Prof. Megha Shah for giving us the wonderful
opportunity for making feasibility report on establishing a
restaurant in our interest area as a part of our study.

We would like to extend our sincere thanks to the N.R

Institute of Business Management for giving us the opportunity
to increase our practical knowledge in our interest of
management area.

We also thanks to Prof. Megha Shah who motivated us to

undertake this project. She spent innumerable times pursuing
the first draft, suggesting many constructing and valuable
modifications and critiques and there after largely contributed in
editing the final draft. The contents of the report have been
considerably enriched in the process. We are also thankful to all
the professors of the institute for their very good support.
 INTRODUCTION ABOUT THE CONCEPT OF
RESTAURANT

Hey Gulshan,,Gajendra’s part will be written here

A restaurant is an establishment that serves prepared food

and beverages to be consumed on the premises. The term covers
a multiplicity of venues and a diversity of styles of cuisine.

Restaurant means a business whose principal purpose is

the sale of food or beverage served in paper, plastic or other
disposable containers for immediate consumption inside, outside
or away from the building, including businesses that provide
delivery of food for immediate consumption.

In the restaurants, products and suppliers are used on a

“first-in, first- out” basis to ensure freshness.

All restaurants provide warm and inviting environment

and a variety of comfortable seating arrangement to
accommodate anyone from a single person to a large family.
 SCOPE OF THE PROJECT

The aim of preparing this project report is to know how to

establish the restaurant.

The location of the restaurant is on ???????????????.

The place has been selected to capture the market potentiality
and untapped opportunity present on this highway.

The earlier survey made and prevailing market trends shows a

huge market potential. There is a lack of outstanding quality in
the niche market where the restaurant is planning to enter. The
survey also shows certain unmet demands of customers in the
market, which the restaurant is going to target.

OBJECTIVES OF RESTAURANT

 To provide high quality food to the customers.

 To provide better services to the customers.
 To provide better sitting facility to the customers.
 To provide better environment to the customers.
 To provide better waiting facility to customers.

MISSION

The mission of our restaurant is–

“Every employee strives to provide 100 percent customer

satisfaction - for every customer – every visit. This includes fast,
friendly and attentive service, accuracy in order taking and
filling, and anticipation of customer’s needs.”

 To achieve the economies of scale to minimize costs while

maximizing value to Customers.
 To achieve leadership, core and functional competencies
restaurant business.

OUR TEAM
The ultimate aim of our restaurant is to remain the
customer satisfaction and we have an energetic professional with
proven calibre and the required expertise. Under the partnership
of our team, we are never lacking in our efforts to make every
single deal a resounding success.

Working together as a well-knit team with a common goal to

satisfy customer by providing quality food at competitive price
and adhering to strict delivery schedules.

This team consists of the experienced and dedicated staffs,

who work in a team spirit to achieve common goals. In our pursuit
for overall excellence, we have evolved pro-active mechanisms and
work culture with introducing new food and beverages to satisfy
customer and attract new customer.

The Success of Organization will always depend on

knowledge, experience and skills of the promoters, so it is
necessary that whosoever are the owners of the company they
must pour their blood to build image of the company.

PLUS POINTS OF OUR RESTAURANT THAN THE

COMPETITORS

 Gives customers high quality foods.

 Serve quickly than the competitors.
 Location of restaurant at clean and pleasant environment.
 Serve the customers at a fair price than the competitors.
 Use of highest quality, freshest ingredients to make foods.
 Use of the most current state of cooking equipment to
ensure quality and safety in serving the customers.
 Our restaurant provides a clean, comfortable environment
especially suited for families.
EQUIPMENTS IN RESTAURANT

Food Equipment.

Item Qty Unit Total

Price Price (
(Rs) Rs)
SPOON 20 Doz 115 2300
KNIFE 10 Doz 115 1150
SERVICE SPOON 5 Doz 200 1000
SERVICE FORK 5 Doz 200 1000
SOUP SPOON 5 Doz 120 600
LARGE PLATE 6 Doz 725 4350
SMALL PALTE 6 Doz 458 2748
SERVING BOWL 6 Doz 420 2520
DESSERT PLATE 6 Doz 540 3240
DESSERT FORK 3 Doz 90 270
DESSERT SPOON 3 Doz 90 270
CUPS AND SAUCER 4 Doz 225 900
TEA SPOONS 2 Doz 95 190
MILK POT 20 Nos 45 900
SUGAR POT 20 Nos 47 940
WATER GLASS 80 Nos 150 12000
SOUP BOWL 3 Doz 360 1080
WATER JUG 2 Doz 300 6000
SERVICE TRAY 20 Nos 225 4500
NAPKIN STAND 5 Nos 96 480
JUICE GLASS (250 ML) 5 Doz 130 650
JUICE GLASS (300 ML) 5 Doz 150 750
SOUP CUP 4 Doz 225 900
CANDLE STAND 20 Nos 22 440
STRAW STAND 10 Nos 13 130
TOOTH PICK STAND 20 Nos 4 80
SERVICE TRAY(CONTINENTAL) 10 Nos 275 2750
BUFFET TABLES 5 Nos 300 1500
ROUND TABLES 8 Nos 350 2800
ROUND TABLES ( SMALL ) 20 Nos 200 4000
WOODEN CHAIRS 25 Nos 110 2750
BOTTLE OPENER 10 Nos 6 60
TOTAL COST 65548
KITCHEN EQUIPMENTS.
Item Qty Unit Total
Price Price (
(Rs) Rs)
4 BURNER GAS RANGE 10 17000 170000
BULK COOKER 2 3000 6000
SINK WASH UNIT 2 12000 24000
WORK TABLE WITH 2 4000 8000
SHELVES
HOT PICK UP COUNTER 3 5000 15000
4 DOORS REFRIGERATOR 2 20000 40000
TOASTER 2 12000 24000
SANDWICH GRILLER 2 11500 23000
DEEP FAT FRYER 2 5500 11000
MIXER GRIENDER 2 2500 5000
WATER COOLER 2 32000 64000
JUICER 2 9700 19400
DEGCHI (SMALL) 5 125 625
ROUND SPOON 10 40 400
FLAT SPOON 8 50 400
GARBAGE CANS 4 350 1400
STEEL BOX 4 350 1400
ROLLING PIN 4 20 80
HOT PLATE 4 1000 4000
LARGE KNIFE 6 100 600
WET MASALA GRINDER 2 700 1400
BUTTER KNIFE 4 63 252
ICE CREAM SCOOPER 4 45 180
FRY PANS 8 40 320
KADAI 5 50 250
SLICER 5 35 175
KNIVES 10 90 900
SMALL OVEN 2 600 1200
TEA CUM MILK BOILER 2 2200 4400
DINNING TABLE 10 1800 18000

TOTAL COST 445382

ELECTRONIC EQUIPMENTS.
Item Qty Unit Total
Price Price (
(Rs) Rs)
TUBE LIGHT 15 200 3000
FANS BIG 7 765 5355
FANS SMALL 5 1250 6250
BULBS 13 40 520
SALAMANDER 2 2000 4000
WATER COOLER 2 7200 14400
A.C 4 25300 101200
EXHAUST FANS 4 495 1980
WEIGHT MACHINE 1 5500 5500
REFRIGERATOR 2 19700 39400
GRILLER 2 1375 2750
OVEN 2 3750 7500

TOTAL COST 191855

 SALARY BUDGET

FRONT OFFICE BUDGET.

SR DESIGNATION NO SALARY MONTHL YEARLY

no OF PER Y PAY
STAF STAFF PAY
F
1 RESTAURANT 1 15000 15000 180000
MANAGER
2 GATE KEEPER 1 1500 1500 18000
3 ACCOUNTANT 1 5000 5000 60000

TOTAL COST 3 16500 16500 258000

KITCHEN DEPARTMENT.

SR DESIGNATION NO SALARY MONTHL YEARLY

no OF PER Y PAY
STAF STAFF PAY
F
1 EXECUTIVE SHEAF 1 6000 6000 72000
2 OTHER SHEAFS 7 3000 21000 252000
3 KITCHEN STEWARD 4 1200 4800 57600

TOTAL COST 12 10200 31800 381600

FOOD & BEVERAGE DEPARMENT.

SR DESIGNATION NO SALARY MONTHL YEARLY

no OF PER Y PAY
STAF STAFF PAY
F
1 F & B MANAGER 1 6000 6000 72000
2 STEWARD 25 1500 37500 450000

TOTAL COST 26 7500 43500 522000

TOTAL SALARY OF ALL DEPARMENTS.

SR DESIGNATION NO MONTHLY YEARLY

no OF PAY PAY
STAFF
1 FRONT OFFICE 3 16500 258000
2 KITCHEN 12 31800 381600
3 FOOD & BEVERAGES 26 43500 522000

TOTAL COST 41 91800 1161600

 FIXED (INSTALLATION) COST.

SR.NO PARTICULAR AMOUNT

1 CIVIL WORK COST 27,00,000
2 LAND COST 3500000
3 KITCHEN COST 665475
4 GAS CONNECTIONS 209467
5 TELEPHONE CONNECTIONS 5000
6 COMPUTERS 25000
7 FURNITURE 665091
8 FIRE FIGHTING PLAN 16300
9 GENERATORS 65000

TOTAL COST 7851333

VARIABLE COST.

SR.NO PARTICULAR AMOUNT

1 LABOUR COST
1.1 SALARY 91800
1.2 STAFF MEAL 28250
2 ELECTRICITY 61000
3 TELEPHONE 21500
4 MISCELLANEOUS
4.1 STATIONARY 8750
4.2 CLEANING AGENTS 18000
4.3 GAS 13600
4.4 NEWSPAPERS 1800

TOTAL COST 244700

 MARKET POTENTIAL

 Lot of developments already done as well as still to be done

on the highway.

 Road having a lot of traffic.

 Surrounding residential area.

 Major entertainment and other sources on highway. E.g.

multiplexes, temples, Automobile showrooms, Car repairers.

 Adoptive nature and culture of people in region.

 People in search of a high standard/ quality service to come

back into the market.

 Away from city area. Generally people like to have a peaceful

and different place for the parties.
 MARKETING STRATEGIES

ADVERTISING
 Advertisement in all the local news paper.

 Divyabhashkar
 Gujarat Samachar
 Sandesh
 Times of India
 Ahmedabad Mirror.

INTERACTIVE MARKETING
 All the customers are targeted through interactive
marketing.
 Helps managers or marketer to know customer’s
satisfaction level as well as to know new expectations.
Also helps to think towards serve new segments.
 One way to get customer as well as stakeholders’
feedback and help to increase the value.

MEMBERSHIP CARDS
 Membership cards for regular/ special customers.
 Regular customers will be included in the membership
card scheme.
 Under this scheme the special benefits that customer
can get 15 % discount in Restaurant.
CUSTOMER RELATIONSHIP MANAGEMENT
 Customer relationship management to build long-term
relationship with customers and to retain existing
customers.
 CRM practices would include:
 Greetings on birthday and special occasions.
 Gifts to valuable customer.
 Cards customers on birthday and special occasions
with an attractive offer to the customers for special
occasion in the restaurant.

CUSTOMER QUERY HANDLING

 Query handling on the telephone as well as personally.
Trading A/c for the year ended on 31 march,2011
Particular Amount Particular Amount

To Purchase (food) 765715 By Sales (food) 4445281

To Transportation Cost 71200
To Inventory 24618
Maintenance Cost

To Gross Profit 3583748

4445281 4445281
Profit & Loss A/c for the year ended on 31 march,2011
Dr Cr
PARTICULARS AMOUNT PARTICULAR AMOUNT

To Beverages Consumed 70000 By Gross Profit 3583748

To Salaries 1161600
To Staff Meal Expenses 28250
To Electricity Expenses 21000
To Telephone Expenses 61500
To Administrative 69780
Expenses
To Stationary Expenses 8750
To Cleaning Agents 18000
To Maintenance & Repairs 93000
To Gas A/c 13600
To Newspaper Expenses 1800
To Decoration Expenses 65000
To Generator & Diesel 53025
To Income Tax 3500
To Fire Fighting 16300
To Depreciation :
Building 930000
Equipment 70279
Furniture 82810 1083089
To Interest On Capital:6%
Rushi A/c 45000
Gulshan A/c 45000
Maulik A/c 45000
Pavan A/c 45000
Gajender A/c 45000
Yogesh A/c 45000
To interest on loan 240000

Net Profit 305554

 3583748 3583748

Balance Sheet for the year ended on 31 march 2011

Liabilities Amount Assets Amount

Capital A/c Land & Building

6200000
Rushi A/c 750000 -dep 15% 930000 5270000
Gulshan A/c 750000 Food & Beverage
equipment 65548
Maulik A/c 750000 -dep 10% 6555 58993
Pavan A/c 750000 Kitchen Equipment
445382
Gajender A/c 750000 -dep 10% 44539 400843
Yogesh A/c 750000 Electronic Equipments
191855
-dep 10% 19185 172670
Net profit 305554 Telephone Connection 5000
Furniture & Computer
690091
loan from SBI 2000000 Dep 12% 82810 607281
Gas connection 209467
Fire fighting 16300
connection
Generators 65000

6805554 6805554
 CONCLUSION

After preparing the Feasibility report on establishing a

restaurant we conclude that establishment of any organization is
really a crucial task. The promoters have to deal with many
circumstances which require high involvement in decision
making and strategic planning regarding proper innovations.

The motto of our restaurant is:-

“TO SERVE THE CUSTOMERS AT FAIR PRICE.”

The only thing that we have to keep in mind that as the

market potential for restaurant is increasing, we have to
maintain our reputation by maintaining the quality of the
services and customer relationship also. The net profit of our
restaurant in the year 2010 is Rs.305554 and we always try our
best to achieve the targeted profit in the later years.

We have tried our level best to prepare this feasibility

report. If any mistake is there in preparing this report, please
excuse us.