1

Business Plan on
RESTURANT













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ACKNOWLEDGEMENT
I, is very excited to present my Business Plan- Tasty Bites. TB is a fine dine
restaurant located in Chinhat, Lucknow.
The completion of this business plan is not the sole effort of mine but
is in regards with the timely help and support of my teachers. I am very
thankful to my teacher Dr. Bimal Jaiswal for the practical knowledge he
provided with his exemplary examples and all-time help which had helped
me solve any problem related to this business plan and come out with this
project.
I am also very obliged to all my subject teachers for the vast
knowledge and live examples they provided which helped me make this
project a reality.
At last but not least, I heartily want to thank my parents for their all
time support, help and prayers because of which I have been able to present
this business plan.









3

CONTENTS
Table of Contents

1. EXECUTIVE SUMMARY ............................................................ 7
1.1 MISSION......7
1.2 OBJECTIVE......8
1.3 KEYS TO SUCCESS.....8

2. COMPANY SUMMARY........9
2.1 COMPANY OWNERSHIP.....10
2.2 START-UP SUMMARY...10
2.3 COMPANY LOCATION AND FACILITIES..13

3. PRODUCTS AND SERVICES...14
3.1 PRODUCTS AND SERVICE DESCRIPTION.....14
3.2 SALES LITERATURE.....17

4. MARKET ANALYSIS SUMMARY.......18
4.1 MARKET SEGMENTATION....18
4.2 TARGET MARKET SEGMENT STRATEGY.....18
4.3 MARKET NEEDS....20
4

4.4 SERVICE BUSINESS ANALYSIS...20
4.4.1 COMPETITION AND BUYING PATTERN........20
4.4.2 MAIN COMPETITORS....20

5. STRATEGY AND IMPLEMENTATION...21
5.1 COMPETITIVE EDGE......21
5.2 MARKETING STRATEGY......21
5.3 SALES STRATEGY.....22
5.4 WEBSITE MARKETING STRATEGY.24

6. MANAGEMENT SUMMARY..25
6.1 PERSONNEL PLAN....26

7. FINANCIAL PLAN....27
7.1 SOME IMPORTANT ASSUMPTIONS....27
7.2 PROJECTED PROFIT AND LOSS...29
7.3 PROJECTED CASH FLOW....31
7.4 PROJECTED BALANCE SHEET...33
7.5 BUSINESS RATIOS.34
7.6 ORGANISATION STRUCTURE 36

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LIST OF FIGURES
1.1 MARKET ANALYSIS(PIE)..19
1.2 SALES FORECAST (YEARLY FOR 3 YRS.)....23








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LIST OF TABLES

1.1 START-UP SUMMARY.....10
1.2 PERSONNEL PLAN.26
1.3 IMPORTANT ASSUMPTIONS...28
1.4 PROJECTED PROFIT AND LOSS.....29
1.5 PROJECTED CASH FLOW...31
1.6 PROJECTED BALANCE SHEET...33




7

TASTY BITES

1.0



Tasty Bites (TB) is a start-up fine-dine restaurant located in Chinhat,
Lucknow. TB expects to catch the interest of a regular loyal customer base with
its broad variety of food items, beverages and services. TB is determined to
become a daily necessity for locals, a place to dream of as you try to escape the
daily stresses of life and just a comfortable place to meet your friends or read a
book, all in one. With the growing demand for high quality gourmet coffee and
tea with great service, TB will capitalize on its ability to provide wide variety of
food items, beverage and services all at one place. TB aims to offer its products
at a competitive price to meet the demand of the middle to higher income local
area residents. Being at the centre of the city, TB will attract customers from all
the corners of the city.

EXECUTIVE SUMMARY
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1.1 MISSION

We are a motivated team of health- conscious, community-minded
individuals. We are committed to the highest standards of food quality and
customer service. We care about our guests experience and our crews
development. At Tasty Bites, we are dedicated to taking the extra step at every
level to be the best we can be!

1.2 OBJECTIVE
TASTY BITES objectives are to build brand awareness and customer
service excellence, while increasing sales. TB intends to utilize the following
strategies to achieve these objectives:
To develop a high quality menu of different food items.
To provide an excellent service experience, anticipating the needs
of the customers and delivering the best service.
To develop enough cash flow to pay all salaries as well as grow
the business.

1.3 KEYS TO SUCCESS
Keys to success for TB will include:
Providing the highest quality product with personal customer
service.
Competitive pricing.
9

Store design that will be both visually attractive to customers, and
designed for fast and efficient operations.
Employee training to ensure the best food preparation techniques.
Marketing strategies aimed to build a solid base of loyal
customers, as well as maximizing the sales of high margin
products, such as espresso drinks.
Exceed customer expectations.
Employ strict financial controls.


2.0 0

TB is a fine-dine restaurant managed by three partners. These partners
represent sales/management, marketing/administration and finance respectively.
The partners will provide funding from their own savings, which will cover start-
up expenses and provide a financial cushion for the first months of operation. A
ten-year Small Business Loan will cover the rest of the required financing. The
company plans to build a strong market position in the town, due to the partners
industry experience and mild competitive in the area. TB, a Lucknow based
Partnership Company, sells food items, beverages and other services in its 2000
square feet restaurant located in Chinhat.

COMPANY SUMMARY
10


2.1 COMPANY OWNERSHIP

TB is located in Lucknow, Uttar Pradesh. It is owned by its three partners-
Mr. Prashant Pandey, Mr. Anil Kumar and Mr. Anirudh Pal with each holding
40%, 30%, 30% stake in the company respectively. It is registered as a
Partnership Company in the state of Uttar Pradesh.
2.2 START-UP SUMMARY

TB is a start-up company. Financing will come from the partners capital
and a ten year Business Loan. The following chart and table illustrate the
companys projected initial start-up costs.
TB will incur the following start-up costs:
Two commercial stoves with ovens.
Dishwasher.
Two sets of cookware.
Two sets of dishware.
One van with rolling racks built in (a rolling rack is a wheeled rolling cart
system that is insulated for both hot and cold food).
Assorted serving trays and utensils, knives and cutting boards (two each).
Desk and chair.
Computer with printer & copier and fax machine.

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TABLE 1.1
Start-up Requirements
PRELIMINARY Expenses

Legal 25,000 Rs.
Stationery etc 15,000 Rs.
Rent 50,000 Rs.
Expensed Equipment 1,50,000 Rs.
Other 50,000 Rs.
Total Preliminary Expenses 2,90, 000 Rs.
Start-up Assets

Cash Required 14,10,000 Rs.
Start-up Inventory -
Other Current Assets 1,00,000 Rs
Long Term assets 12,00,000 Rs.
Total Assets 27,10,000 Rs.
Total Requirements 30,00,000 Rs.

Start-up Funding


Start-up Expenses to fund 2,90,000 Rs.
Start-up Assets to fund 27,10,000 Rs.
Total Funding Required 30,00,000 Rs.

Assets

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Non- Cash Assets from Start-up 13,00,000 Rs.
Cash Requirements from Start-up 14,10,000 Rs.
Additional Cash Raised -
Cash Balance on Starting Date 14,10,000 Rs.
Total Assets 27,10,000 Rs.

Liabilities and Capital

Liabilities

Current Borrowings 6,00,000 Rs.
Long term Liabilities
-
Accounts Payable 8,00,000 Rs.
Other Current Liabilities 14,00,000 Rs.
Total Liabilities 28,00,000 Rs.
Retained Earning 6,00,000 Rs.
Capital in paid 10,00,000 Rs.
Planned Investment

Owner/Founder 10,00,000 Rs.
Other
-
Additional Investment Requirement
-
Total Planned Investment 26,00,000 Rs.
Loss at Start-up (Start-up Expenses) (2,90,000 Rs.)
Total Capital 2,31,000 Rs.
Total Capital & Liabilities 30,31,000 Rs.
Total Funding 30,00,000 Rs.
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2.3 COMPANY LOCATION AND FACILITIES

TASTY BITES will be located on the ground floor of the commercial
building in Chinhat.
The floor plan will include a 200 square feet back office and a 2300 square
feet dining area which will include a seating area with 15 tables, a kitchen, a
storage area and two bathrooms. The space in the dining area will be
approximately distributed in the following way- 1260 square feet(i.e., 55% of the
total) for the seating area, 600 square feet(26%) for the production area, and the
remaining 440 square feet(19%) for the customer service area.
This property is located in a commercial area with equal distances from
every corner of the city connecting affluent neighborhood with the busy
commercial area. The commercially zoned premises have the necessary water
and electricity hookups and will require only minor remodeling to accommodate
the sitting place, kitchen and storage area. The shops open and clean interior
design with modern wooden dcor will convey the quality of the served food
items, beverages and snacks and will be in-line with the establishments
positioning as an eclectic place where people can relax and enjoy their cup of
coffee. The clear window displays, through which passerby will be able to see
customers enjoy their beverages, and outside electric signs will be aimed to grab
the attention of the customer traffic.


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3.0
3.1 PRODUCT AND SERVICE DESCRIPTION
TB offers a broad range of coffee, espresso, and tea products, all from high
quality grown coffee beans and tea leaves. It caters to all of its customers by
providing each customer coffee, espresso and tea products made to suit the
customer, down to the smallest detail.
Products
There are two different categories of people Vegetarians & Non-Vegetarians.
TASTY BITES is serving both the categories of customers.
1. Vegetarian
Fried Dal.
Rice.
Baati Chokha.
Shahi Paneer.
Kaju Korma.
Mushroom.
Sweet corn.
Mix-Veg.
Puri (Methi, Aata, Paneer, Palak, etc)
PRODUCTS AND SERVICES
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Naan.
Sweet Dish(Rash gulla, Rashmalai, Malai Sandwich, etc)
Achar.
Chatni (Meethi & Khatti)
Paapad.
Etc.

2. Non-Vegetarian
Chicken Chilly.
Mutton. Etc
Fish fry.
Kabab
Rosted Chicken.
Egg Curry
Chicken-do-pyaja.
Chicken Handi.
Chicken lollypop
Etc .

3. Foreign Cuisines
Lasagna
Burrito
Pasta
Macroni
Baloni

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4. Coldrinks.
Cold Coffee.
Coldrinks.
Sikanjee.
Lime Soda.

5. Hot Drinks
Tea.
Coffee.
Black tea.
Etc.

6. Hard Drinks.
7. Ice-Cream.
8. Salad
9. Etc.

Suppliers
There are many suppliers which gives us the products such as:-
Kerana store.
Aasiyana Resturants for dairy product like paneer etc.
Chicken Corner.
Etc.
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SERVICES
1. Birthday Parties
2. Dance Parties

1.2 SALES LITERATURE
Two thousand flyers will be distributed in the adjacent neighborhood, at
the malls and in the selected office buildings within two weeks prior to the
opening of TASTY BITES. Subsequently, free postcards with TASTY BITES
endorsement will be printed to increase the company visibility among the
patrons.
The advertisement will also be made using the source of internet and
e-marketing will be used as a source to do marketing.





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4.0

TBs focus is on meeting the demand of a regular local resident customer base,
as well as a significant level of office people, students and locals from the nearby
area.
4.1 MARKET SEGMENTATION
TB focuses on the middle and upper-income markets. These market segments
consume the majority of vegetarian and non-vegetarian food items. TB wants to
establish a large regular customer base. This will establish a healthy, consistent
revenue base to ensure stability of the business. TB will focus its marketing
strategies on reaching the students, people working in offices located close to the
shop and on sophisticated teenagers. Our market research shows that these are
the customer groups that are most likely to buy the offered products.
4.2 TARGET MARKET SEGMENT STRATEGY
The dominant target market for TB is a regular stream of local residents,
office workers, students, and teenagers. Personal and expedient customer service
at a competitive price is the key to maintaining the local share of this target
market.

MARKET ANALYSIS SUMMARY
19















FIGURE 1.1



48%
17%
20%
15%
MARKET ANALYSIS (PIE)
OFFICE WORKERS
STUDENTS
TEENAGERS
OTHERS
20

4.3 MARKET NEEDS
Due to the availability of few good eating places for the working class in the
region there will be high demand for food items being served by our restaurant.
Our main objective will be to serve high quality food items at reasonable price.
4.4 SERVICE BUSINESS ANALYSIS
The restaurant and food joints industry in Lucknow has recently
experienced rapid growth. The people are finicky about the quality of food being
served and variety of foods items offered. Despite low competition in the
immediate area, TB will position itself as a place where customers enjoy a good
meal and spend quality time with friends and family in a relaxing environment.

4.4.2 Main Competitors
The main competitors of TASTY BITES will be :
Charans Club & Resort Pvt. Ltd.
Small Restaurants
Local bakery and coffee vendors

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5.0

TB will succeed by offering consumers high quality foods items, beverages and
services with personal service at a competitive price.
5.1 COMPETITIVE EDGE
TBs competitive edge is the broad range of superior quality and freshly made
products and relatively low level of competition in this particular niche.
5.2 MARKETING STRATEGY
TBs marketing strategy will communicate to the target customer segments that
its product clearly exceeds all of the competitors. The strategy will employ
several methods to communicate the message. The first will be a print
advertising campaign. A second method that TB will use to get out the word
will be by having several different representations. Any person offering order of
more than Rs. 300 will get an extra pastry of to make the customer taste the
different products available. To develop awareness of the superior product
offerings, TB must offer a superior level of customer service to support the
products. TB recognizes that you cannot solely compete on product alone, that
much of the transaction involves excellent customer service.

STRATEGY AND IMPLEMENTATION
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5.3 SALES STRATEGY
The sales strategy recognizes the need for the company as a whole to back up its
superior product offerings with excellent service. This mantra is important
because if there was not a service organization to back up the product, there
would be no customers after the second or third purchase. Consequently, the
sales strategy will focus on customer support and making customers experience
with TB as positive as possible. This strategy will use account managers that
look after individual customers, ensuring that their needs are being met. The
account managers will be responsible for a certain number of existing accounts
as well as will be provided the resources to attract new accounts.
As the chart and table show, TB anticipates sales of about Rs. 1 crores in the first
year, Rs. 1.2 crores in the second year and Rs. 1.3 crores in the third year.





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FIGURE 1.2 :
SALES FORECAST (YEARLY FOR 3 YEARS)







0
2
4
6
8
10
12
14
YEAR 1 YEAR 2 YEAR 3
Foreign Cuisines
Non-vegiterian
Vegiterian
0
20
40
60
80
100
120
140
YEAR 1 YEAR 2 YEAR 3
S
A
L
E
S
(
I
N

L
A
K
H
S
(
R
s
.
)
)

FOREIGN CUISINES
NON- VEGITERIAN
VEGITERIAN
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5.4 WEBSITE MARKETING STRATEGY
A website will be used to provide information regarding TB, food items and
other beverage/services offered to current and prospective customers. The site
will be used for informational purpose; it will be not initially used for commerce
purposes. Once the organization has been operating for a while they will
reconsider the demand for food items and services will be booked via the
website.
The marketing strategy for the website will attempt to develop awareness for the
website thereby directing people to the site for more information regarding the
complete line of products-coffee, tea and bakery products that TB offers. TB will
make sure that all of the TBs promotional material will have the URL for the
website, encouraging people to visit the site.
As mentioned before, the website will be used as a source of information.
Because it will not, at least initially, have an e-commerce component to it, the
development requirements will not be that significant. TB will leverage the
technical expertise of a computer science graduate (who typically works at below
market wages) to develop the informational site.







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6.0

Mr. Prashant Pandey has 5 years experience in HR and administration,
management and was the Manager of the Food Department in Carlton Hotel. Mr.
Anirudh Pal is a Management Graduate in Marketing and Finance from ISBM,
Pune. He has 4 years of rich experience in sales, marketing and management of
various products which will be very beneficial for the company. Mr. Anil Kumar
will be the Chief Financial Officer and will be responsible for looking after the
financials of the company. Mr. Anil is a Management Graduate in Finance from
University of Lucknow and knows how to implement various strategies
effectively in order to boost-up the sales.
Mr. Prashant Pandey will be the manager of the store and will be present full-
time for looking after the needs of the store. He will be responsible for managing
the staff, ordering inventory, dealing with suppliers, and perform other daily
managerial duties. Mr. Anirudh Pal will be involved and will be present part-
time for sales, developing marketing strategies and applying them and
administration of the business. Mr. Anil Kumar will be available part-time and
look into the accounts and financials of the company.




MANAGEMENT SUMMARY
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6.1 PERSONNEL PLAN
The table below outlines the personnel needs of TASTY BITES:

TABLE 1.2




YEAR 1
(in Rupees-
lakhs)
YEAR 2
(in Rupees-
lakhs)
YEAR 3
(in Rupees-
lakhs)
MANAGER 5 6 7.5
MARKETING MANAGER 4.5 6 7
HELPER(3) 1.8 2.7 3.24
CHEF(2) 3.6 5.4 6.48
BILLING 1 1.3 1.5
GUARD & SWEEPER (2) 0.96 1.1 1.3
WAITERS(7) 2.1 2.3522 2.688
ADDITIONAL EMPLOYEES - 1 1.5
TOTAL 18.96 25.8522 31.208

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1.0

The business plan involves an initial investment of Rs. 5,00,000 from the
founder Mr. Prashant Pandey, plus another Rs. 10,00,000 from the Marketing
Manager, Mr. Anirudh Pal, a Five-year loan of Rs. 15,00,000 and a 10-month
interest free loan from Mr. Anil Kumar. Much as we did like to bootstrap this
business without initial investment, it just is not worth it. The rest of the plan is
reasonably conservative, but there does have to be money at risk.
The bank loan will be secured with real estate owned by the Founder, Mr.
Prashant Pandey.
7.1 SOME IMPORTANT ASSUMPTIONS
There are few important assumptions which are important in order to predict the
cash flows and sales and revenues for the next three years. These assumptions
are summarized below:




FINANCIAL PLAN
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TABLE 1.3



PARTICULARS YEAR 1 YEAR 2 YEAR 3
PLAN MONTH 1 2 3
CURRENT INTEREST RATES 10% 10% 10%
LONG TERM INTEREST RATES 10% 10% 10%
TAX RATES 30% 30% 30%
OTHERS 0% 0% 0%
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7.2 PROJECTED PROFIT AND LOSS
As the TASTY BITES Profit and Loss Table below shows, it expects to
continue its steady growth in profitability over the next three years of operations.
TABLE 1.4
PRO-FORMA PROFIT ANS LOSS

YEAR 1
(in lacs)
YEAR 2
(in lacs)
YEAR 3
(in lacs)
SALES 100 120 130
Direct Cost of Sales 20 25 20
Other Expenses 18 20 23
TOTAL COST OF SALES 38 45 43
Gross Margin 62 75 87
Gross Margin (%) 62% 63% 67%
30


EXPENSES
Payroll 20 22 30
Sales, Marketing & Other Expenses 15 17 18
Depreciation - - -
Insurance 3 3 3
Utilities 1 1 1
Payroll Taxes 4 5 8
Other - - -
TOTAL OPERATING EXPENSES 43 48 60

Profit before Interest and Taxes 19 27 27
31

EBIT 19 27 27
Interest @ 10% 1.9 2.7 2.7
Taxes Incurred 5.13 7.29 7.29
Net Profit 12 17 17
Net Profit / Sales 12% 14.17% 13.085

7.3 PROJECTED CASH FLOW
With the financing plan as projected, the business remains cash positive
throughout the first three years of its operations. During year two and three, it is
expected that a significant amount of cash will be used to upgrade facilities and
purchase new equipment.



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TABLE 1.5
PROJECTED CASH FLOWS

YEAR 1
(in lacs)
YEAR 2
(in
lacs)
YEAR 3
(in
lacs)
CASH RECEIVED:
Cash from Operations
Cash Sales 100 120 130
Subtotal Cash from Operations 100 120 130
Additional Cash Received
Sales Tax, VAT, GST Received - - -
New Current Borrowing - - -
New Other Liabilities - - -
New Long Term Liabilities - - -
Sale of Other Current Assets - - -
Sale of Long Term Assets - - -
New Investment Received - - -
Sub-total Cash Received 100 120 130

EXPENDITURES
Expenditures from Operations
33

Cash Spending 30 45 55
Bill Payments 50 50 40
Subtotal Spent On Operations 80 95 95
Additional Cash Spent
Sales Tax, VAT, GST Paid-Out - - -
Principal Repayment of Current Borrowing 5 10 15
Other Liability Principal Repayment 8 - -
Long-Term Liabilities - - -
Principal Repayment - - -
Purchase Other Current Assets - 5 -
Purchase Long Term Assets - 5 -
Dividends 3 3 10
Subtotal Cash Spent 96 118 120
Net Cash Flow 4 2 10

7.4 PROJECTED BALANCE SHEET
The balance sheet of TASTY BITES shows that the negative net-worth is
gradually solved with profits later on. Debts are repaid ahead of schedule and
provisions for ongoing expenses are adequate to meet TBs needs as the business
generates cash flow sufficient to support operations.

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TABLE 1.6
PRO-FORMA BALANCE SHEET

YEAR 1
(in
lacs)
YEAR 2
(in
lacs)
YEAR 3
(in
lacs)
ASSETS
Current Assets:
Cash 10 9 9
Inventory 6 7 5
Other Current Assets 4 5 3
Total Current Assets 20 21 17
Long Term Assets
Long Term Assets 24 28 26
Accumulated Depreciation - - -
Total Long Term Assets 24 28 26
TOTAL ASSETS 44 49 43

LIABILITIES AND CAPITAL
Current Liabilities:
Accounts Payable 8 8 9
35

Current Borrowing 6 - -
Other Current Liabilities - - -
Subtotal Current Liabilities 14 8 9
Long Term Liabilities
Total Liabilities 14 8 9
Paid-in Capital 10 10 10
Retained Earnings 6 14 7
Earnings - 17 17
Total Capital 31 41 34
TOTAL LIABILITIES AND CAPITAL 44 49 43





36

Organizational Structure:-

TASTY BITES shall be managed primarily by working owners/partners. The
company will engage more of a functional organization structure whereby people
shall be focusing on their prime area of expertise. However in engaging this
organization structure we intend to ensure that there is open communication
between all personnel at all levels. With such a group we believe it will be
simple to communicate with and support one another. Our organizational
structure demonstrates the importance we shall put on our customers, and
ensuring their satisfaction in utilizing our services.
As the company grows there will be more structure to the utilizing, with new
employees being assigned a supervisor or subordinate. When the company is at
its full staff potential, it will operate as any closely held utilizing, but maintain
the personal interest in each employee's personal and family welfare and their
contributions to the business.
We acknowledge the fact that successful recruiting, motivation, and discipline
procedures are keys to the growth of the utilizing. Hence we intend to promote
and maintain good labour relations, strong morale and high quality work per
employee through undertaking the following:





37


Owner


Head of Department


Supervisors


Workers