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Entrepreneurship

Management
Project Report on

GROUP NO:
7

Submitted To: Submitted By:


Group No: 7

Prof. Shinu Abhi Clevin


Carvalho,

Vamsi Kanth,

Vivek Kumar Chaturvedi.

Executive Summary

“A well-run restaurant is like a winning baseball team. It makes the most


of every crew member's talent and takes advantage of every split-second
opportunity to speed up service. “

This is what we have tried to leverage through our business plan


“Oceania”. “Oceania” is a restaurant for fun-seeking as well as
sophisticated diners looking for good food in a fascinating atmosphere;
where they are given a chance to experience the wonderful underwater and
jungle themed restaurants which they had missed out so far. Today it is seen
that with most of the people are interested to spend their leisure time going
out to different places which gives them new look and experience. After a
feasibility study of cross section of people, in Karnataka, Tamil Nadu, Andhra
Pradesh, Bangalore and Chennai in the age group between 20 to 50 years,
the most preferred menus have been selected for start – up phase of the
restaurant. The menus offered would be:

 On the Water's services are all delivered in their extraordinary


atmosphere which includes a comprehensive art and culture collection
from US and India.

 The menu contains traditional favorites such as

 Other menu items are kebobs, chutneys, flat breads and desserts.
Everything is fresh, homemade, and prepared daily.

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 And addition to the menu other services including the wine and
beverages and sprits

The differentiating factor of “Oceania” would be it’s extensively for young


adults, keeping in mind the fact that their experience is different from that of
others because of which they may not feel existed with other restaurants.

Though “Oceania” had been called a restaurant, it would be more than a


just restaurant, it would be a single stop solution for younger and adult
generations where they acquire new experience and also engage in hobbies
for leading a more fulfilling and enriching life. There would be well attractive
space birthday parties celebrations, and other occasions and many more of
such events to keep people engaged. The positioning of the restaurant
would be a not a restaurant but an amazing place, where one spends one’s
time constructively, experiencing new things.

The industry when analyzed using Porter’s Five Force model, showed that it
is quite attractive, as there is no player in the market at present which
provides a similar offering. “Oceania” faces indirect competition from
players like local restaurant players and pubs

Initially the restaurant would start at one location Bangalore – which would
be acting as separate profit centers and managing their operations
independently. The menus offered would remain same throughout and
regional preference would be taken into consideration for the traditional
menu. The menus are priced differently for weekdays, weekend. The
revenue generation would be based on certain charges for each item.

“Oceania” would be breaking even in the third year of operations. An initial


startup capital of Rs. 4 cores would be required for starting the 2 units. The
growth plans are to expand based on the movement and demand of the
market.

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“Oceania” is a novel idea and the major reason for its success would be its
innovative serving model. The impression and experience that the people
would enjoy with “Oceania” would lead it forward in the future and this
would be a major platform for them to enjoy their passion and lead a more
happy life.

There is need for this offering in the market and we are passionate about
this idea, so “Oceania” is a means to match the need with our passion.

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Background Information

Concept

We have experience it ourselves more need for new restaurants when we


spoke to our friends and relatives about the themed restaurants and their
leisure time hobbies. This inspired us to come up with an arrangement that
would make them happy at fascinating atmosphere and keep them engaged
in our absence, thus leading to origin of “Oceania”

The concept of “Oceania” originates from the fact that, in this age of
advanced technology and unorganized restaurants, a majority of our
younger’s and adults feels left behind and looking for something new
fascinating atmosphere restaurants. Also, people need something to make
them feel new every time to themselves with and at present there is no such
offering in the market. “Oceania” aims to become that the place for the
youngsters where they can enjoy their passion.

“Oceania” is different because of the exclusivity for elderly people and the
variety of items offered under a single roof. “Oceania” would be a
restaurant meant especially for younger people where menu contains
traditional favorites, other menu items are kebobs, chutneys, flat breads and
desserts. Everything is fresh, homemade, and prepared daily. In addition to
the menu other services including the wine, beverages, and sprits. Though
“Oceania” has been called a restaurant, it would be more than a just
restaurant, it would be a single stop solution for younger and adult
generations where they acquire new experience and also engage in hobbies
for leading a more fulfilling and enriching life. There would be well attractive
space birthday parties celebrations, and other occasions and many more of
such events to keep people engaged. The positioning of the restaurant
would be a not a restaurant but an amazing place, where one spends one’s
time constructively, experiencing new things.

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Drivers

60% of the population of India is between 20 to 50 years. These people


spend their leisure time by hanging around restaurants, pubs and shopping
centers. At the same time, they are mostly bored going to the same places
every time. For these people it becomes even more difficult spending their
time as they do not like to see the same places every time.

Few of the major driving factors that lead to the conceptualization of


“Oceania” are as follow:

 Increasingly demand for restaurants in our day to day life.

 Younger generations are looking for something new to have fun.

 No well organized and wonderful themed restaurants in the market

Due to the above mentioned factors it could be concluded that youngsters


need to engage themselves in for fun and joy to lead a happier life and
hence “Oceania” is the solution.

Business Proposition

Services Offered

One thing that is always consistent with on restaurant is their impeccable


service. All server staff hired has extensive experience and all go through
three weeks of training, ensuring benchmarked customer service. On the
Water's services are all delivered in their extraordinary atmosphere which
includes a comprehensive art and culture collection from US and India. This
provides an authentic surrounding that at times seems to distract everyone
as they analyze the wealth of artifacts on display.

The menu contains traditional favorites. These favorites are differentiated


through the use of the freshest organic ingredients. Most people are not

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aware of how much better the items taste when they are prepared with the
freshest ingredients and made with love. Other menu items are kebobs,
chutneys, flat breads and desserts. Everything is fresh, homemade, and
prepared daily.

The menus are of daily (Weekdays), weekends basis.

The medium for serving would be both in US and increase India traditions. It
can be assumed that most adults would not be comfortable with only
nontraditional food as the medium of serving and therefore traditional food
would be a more preferred medium. This would primarily the market
coverage and also helps in scalability.

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Customer Profile

On the restaurant will be targeting locals and tourists who are active
restaurant seekers. There will be a special focus on young adults with 15K -
60K of income looking for good food and a great time. In addition to the
young adults with money to spend, On the Water will also be targeting adults
and tourists. The general demographics are males and females ages 20-50
with some or all of a college education.

Historically, if there is a dip in the general economy, the restaurant industry


is usually effected far less that the overall economy. To some degree this is
because of people's perception that food, regardless whether it is from the
grocery or restaurants is a fundamental necessity of life and spend
accordingly.

Pricing Strategy

The price for each of the item mentioned are enlisted below. All the figures
shown below are monthly charges and are in Indian rupees.

Positioning

The restaurants will be positioned as merely a service provider but as a way

of fun and joy. The tagline of “Experience the


reality……” would be used to create reality and new experience
to customers. It is like a new world to youngsters or adults.

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The unique selling propositions of the offering are as follow:

 A underwater restaurant with affordable price menu (Underwater


Restaurant)

 Experience the jungle atmosphere in the city (Jungle Restaurant)

 Feel as a king from the extraordinary services

 All food items under single roof

Promotion of the Service

The initial response towards the project is greatly dependent on the


marketing strategies adopted.

Branding:

 To build a brand image for itself, the restaurant has chosen the brand
elements like the logo, the tagline that goes well with its value
proposition.

 The advertisements should focus on new world, reality, fun and joy in
restaurants, with the target audience.

Communication strategy:

The communication objective is to initially develop awareness about the USP


in the market as this is a new concept and then concentrate on influencing
the customers to experience the reality. Three elements have been
considered as part of the marketing communication mix.

Marketing channels:

Various marketing channels have been considered like newspapers, TV


channels and radio. Tie – ups with five stars hotels and big corporate
institutions to get the corporate look.

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External customers:

Those customers who experienced the reality would definitely spread the
experience about the reality and services provided at “Oceania”. It is
believed that word of mouth would reach create more loyalty and publicity
than any other branding. Word of mouth would be the main form of our
communication to the potential customers.

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Infrastructure Requirements for Execution

In the initial stage the plan is to start two restaurants in Bangalore –

The major infrastructure requirement for starting the venture is the space for
setting up the restaurant. Apart from the space requirements, other
requirements include furniture, High quality glass, and cooking furniture as
well. The premises would be taken either on rental or lease and all other
requirements would be purchased. Approximately an area of 1lakh square
feet is being considered for underwater restaurant and approximately an
area of 70000 to 80000 square feet is being considered for Jungle
restaurant. Internet connections would also be required for which
connections will be subscribed to and monthly charges would be paid. The
approximate details of quantities required have been specified in the
financials section.

Organization Structure

The business model is based on the idea of each of these two units would
acts as separate profit centers and manage their operations independently.
The menu would remain same but the item charges would differ for each
restaurant.

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Each unit shall have a Manager who will manage the day to day operations
of the units and would be reporting on thrice a week basis to us. The unit will
have

As the demand grows, the number of employees will increase according to


manage the workload. Thus the organization chart, which is quite flat
structure initially, is shown.

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Industry and Market Analysis

The concept of “Oceania” originates from the fact that, in this age of
advanced technology and unorganized restaurants, a majority of our
younger’s and adults feels left behind and looking for something new
fascinating atmosphere restaurants. Also, people need something to make
them feel new every time to themselves with and at present there is no such
offering in the market. “Oceania” aims to become that the place for the
youngsters where they can enjoy their passion.

Few of the major driving factors that lead to the conceptualization of


“Oceania” are as follow:

 Increasingly demand for restaurants in our day to day life.

 Younger generations are looking for something new to have fun.

 No well organized and wonderful themed restaurants in the market

Due to the above mentioned factors it could be concluded that youngsters


need to engage themselves in for fun and joy to lead a happier life and
hence “Oceania” is the solution.

Players in the market

“Oceania” faces numerous challenges from number of restaurants, star


hotels and other independent services. The major competitors would be big
value chain restaurants like Ohris Restaurants, Khairali restaurants,

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Hyderabad House, independent services likes KFC, Mc Donald’s, Pizza Hunt,


Dominos, local players and other star hotels like Taj residency, Leela Palace,
Holiday Inn, Oberoi etc. All these competitors positioned themselves as a
place to have food which is called restaurant. And none of these food chains
are in themed based.

But “Oceania” will definitely enjoy the competitive advantage in positioning


itself saying

“Experience the reality……” which would


prove the reality and new experience to customers under water and jungle
themed restaurants. It would be more than a just restaurant, it would be a
single stop solution for younger and adult generations where they acquire
new experience and also engage in hobbies for leading a more fulfilling and
enriching life. There would be well attractive space birthday parties
celebrations, and other occasions and many more of such events to keep
people engaged. The positioning of the restaurant would be a not a
restaurant but an amazing place, where one spends one’s time
constructively, experiencing new things.

Aspirations of the Oceania

Vision & Mission

On The restaurant is a business that envelopes fine dining of unique


Mediterranean taste and an excellent bar and grill atmosphere. The mission
is not only to have great tasting food, but have efficient and friendly service.
Our di ning environment is not only welcoming and sophisticated; it is
unique in design, with walls on almost all sides that are constantly wet with
running water and a lush jungle ceiling that will hang from above. We
concentrate on customer satisfaction and quality food that is always fresh

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and specially selected. We will not judge a customer on class or dress. We


want the On The Water grill to be place people can enjoy a good meal and
meet new friends at our tropical Mediterranean Honey bar located inside the
restaurant.

Background of Entrepreneurs

The team comprises of two budding entrepreneurs who are currently


pursuing their PGDM (MBA) from IFIM B- School, Bangalore and both of them
are specializing in Marketing and General Management. Among both
entrepreneurs, one has one and half years of corporate experience in
Marketing and also specialized in Accounting Package from BDPS. And other
one has experience in Event Management Marketing and actively
participated in Personality Development Programs. Also both of them have
proved the leadership skills in organizing seminars at IFIM campus and
worked as Team Leaders for various projects. Moreover one of them has
good experience in Marketing Research and worked with AC Nielson Org
Marg Pvt Ltd which would be of added benefit for understanding the needs of
customers in better way.

Company Summary

“Oceania” creates and serves a wild atmosphere for dining and eloquent
Mediterranean feasts for people who love the restaurant and bar scene, as
well as a good time spent out on the town. Its customers are creative, fun-
seeking, and sophisticated diners who wish to be best served by the
restaurant they choose.

Company Ownership

“Oceania” is a partnership business owned in majority by its partners. The


business employs the manager, Support Staff and Employees.

Financial Plan

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The following topics and tables outline our financial plan. We plan to turn a
significant profit, but we will structure the business so as to maintain a
healthy cash flow.

Important Assumptions

The financial plan depends upon important assumptions, most of which are
shown in the following table. The key underlying assumptions are:

 We assume a slow-growth 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 as shown in the tables.
General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest
10.00% 10.00% 10.00%
Rate
Long-term
10.00% 10.00% 10.00%
Interest Rate
Tax Rate 25.42% 25.00% 25.42%
Other 0 0 0

Start-up Summary

Our start-up expenses come to Rs. 4 Cores which is mostly expensed


equipment, rent, and legal and consulting costs associated with opening our
restaurants. We also require 60 lakhs of start-up assets, which includes 50
lakhs cash and 10 lakhs of long-term assets. The start-up costs are to be
financed some by direct owner investment, as well as with the help of a
major investor.

Start-up Expenses

Start-up Expenses
Legal 50,000.00

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Stationery etc. 100,000.00


Menus 30,000.00
Consultants 100,000.00
Insurance 500,000.00
Rent 7,000,000.00
Capital Cost 25,000,000.00
Other 1,000,000.00
Total Start-up 33,780,000.0
Expenses 0

Start-up Assets
Cash Required 5,000,000.00
Start-up Inventory 1,000,000.00
Total Assets 6,000,000.00
Total 39,780,000.0
Requirements 0

Strategy and Implementation Summary

The following sections outline the strategy and implementation summary for
“Oceania”.

Sales Strategy

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The important elements of the sales forecast are shown in the following
table. The sales of food, drinks take a while to grow but will grow in
second year.

Sales Forecast

Unit Sales
Year 1 Year 2 Year 3
Meals 25,000 35,000 50,000
Drinks 20,000 25,000 40,000
Total Unit Sales 45,000 60,000 90,000

Unit Prices
Meals 400 400 430
Drinks 50 50 60

Sales
Meals 10000000 14000000 21500000
Drinks 1000000 1250000 2400000

Total Sales 11000000 15250000 23900000

Direct Unit Costs


Meals 150 150 150
Drinks 25 25 25

Direct Cost of Sales


Covercharge
Meals 3750000 5250000 7500000
Drinks 500000 625000 1000000
Subtotal Direct Cost of 4250000 5875000 8500000
Sales

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Management Summary

Our management philosophy is based on responsibility and mutual respect.


People who work at “Oceania” want to work there because we have an
environment that encourages creativity and achievement. The team includes
a maximum of eight to twelve employees, under a president/manager of
one.

Personnel Plan

The personnel plan reflects what we would like to keep as a steady


positioning throughout the years. Our total headcount will increase from 54
to 66 come year3 because that's the beginning of our "good" season.
However, we plan to keep the head count at 60 because of the space and
dynamics of the restaurant. It appears we don't need more than 66
employees to run the business until the fourth and fifth year, if and when we
are successful enough to expand. Detailed monthly projections are included
in the appendix.

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Payroll Plan
Year 1 Year 2 Year 3
No
No No
of Salar Salar
PM PA of PM PA of PP PM PA
Sta y y
Staff Staff
ff
15,0 30,00 360,00 15,0 30,00 360,00 15,0 30,00 360,00
Manager 2 2 2
00 0 0 00 0 0 00 0 0
3,00 30,00 360,00 3,00 36,00 432,00 3,00 36,00 432,00
Hostess 10 12 12
0 0 0 0 0 0 0 0 0
Waiters/Waitre 5,00 70,00 840,00 5,00 80,00 960,00 5,00 90,00 1,080,0
14 16 18
sses 0 0 0 0 0 0 0 0 00
4,50 18,00 216,00 4,50 18,00 216,00 4,50 27,00 324,00
Bartenders 4 4 6
0 0 0 0 0 0 0 0 0
3,50 21,00 252,00 3,50 28,00 336,00 3,50 28,00 336,00
Support Staff 6 8 8
0 0 0 0 0 0 0 0 0
Cocktail 5,00 50,00 600,00 5,00 50,00 600,00 5,00 50,00 600,00
10 10 10
Waitresses 0 0 0 0 0 0 0 0 0
8,00 64,00 768,00 8,00 80,00 960,00 8,00 80,00 960,00
Chefs 8 10 10
0 0 0 0 0 0 0 0 0
Total People 54 62 66

44,0 283,0 3,396, 44,0 322,0 3,864, 44,0 341,0 4,092,


Total Payroll
00 00 000 00 00 000 00 00 000

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3 (Three) years Profit and Loss Statement

The figures relating to the associated costs are for 2 units and have been
estimated for 3 years. The investments (in Rs) on a yearly basis for one unit:

Pro Forma Profit and Loss


Year 1 Year 2 Year 3
Sales 11,000,000 15,250,000 23,900,000
Direct Cost of Sales 4,250,000 5,875,000 8,500,000
Other
Total Cost of Sales 4,250,000 5,875,000 8,500,000

Gross Margin 6,750,000 9,375,000 15,400,000


Gross Margin % 61% 61% 64%

Expenses
Payroll 3,396,000 3,864,000 4,092,000
Sales and Marketing and
300,000 200,000 200,000
Other Expenses
Depreciation
Insurance
Rent 700,000 700,000 700,000
Utilities
Leased Equipment
Payroll Taxes 237,720 270,480 286,440
Other

Total Operating
4,633,720 5,034,480 5,278,440
Expenses

Profit Before Interest and


2,116,280 4,340,520 10,121,560
Taxes
EBITDA 2,116,280 4,340,520 10,121,560
Interest Expense
Taxes Incurred 200,000 200,000 200,000

Net Profit 1,916,280 4,140,520 9,921,560


Net Profit/Sales 17% 27% 42%

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Conclusion

We consider that the idea is different from the other offerings in the market
because no other restaurants of this kind exist in the market. So “Oceania”
will definitely enjoy the competitive advantage from the day one itself and
also can be excepted to perform competitively in future.

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Annexure

The excepted sample view of Under Water Restaurant

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The excepted sample view of Jungle Restaurant