A Project

On
SANDWICH SHOP BUSINESS
Of
Entrepreneurship Management

Submitted to
UNIVERSITY OF MUMBAI

Submitted By
MANDAR A. BHOIR
Roll No. 63

MASTERS IN COMMERCE - MANAGEMENT (Sem III)

UNDER THE GUIDANCE OF:

Prof. Mohammad Sir

RIZVI COLLEGE OF ARTS, SCIENCE, COMMERCE

Bandra (West), Mumbai
Academic Year
2014-2015

DECLARATION

Myself, Bhoir Mandar Ashok of

Rizvi College of Arts, Science & Commerce

studying M.COM-Sem-III hereby declare that I have completed this project on Sandwich
Shop Business in Academic Year 2014- 2015.

The information submitted in this project is true & original to the best of my
knowledge.

DatePlace-MUMBAI

(BHOIR MANDAR ASHOK)

CERTIFICATE

This is to certify that MANDAR BHOIR student of M.Com-III class, Roll No. 63 of
the academic year 2014-15 studying at Rizvi College of Arts, Science & Commerce, has
successful completed the project entitled Sandwich Shop Business

____________________

Prof. Mohammad Sir

______________________

Prof. Qamar Sir

(M.Com Co-ordinator)

___________________

______________________

External Examiner

Dr. Farooqui M.Z

(Principal)

ACKNOWLEDGMENT

I owe a great many thanks to a great many people who helped and supported me during
this project.

My deepest thanks to the Guide of this project Professor Mohammad Sir, for guiding
and correcting various documents of mine with attention and care. He has taken pain to go
through the project and make necessary correction as and when needed.

I would also thank my Institution and my faculty members without whom this project
would have been a distant reality. I also extend my heartfelt thanks to my family and wellwishers.

INDEX

Purpose
The Restaurant Industry-Review
Trend and Strategies Opportunities
Who eat Fast Food?
Industry Analysis
Operation Plan
Production Process
Inventory Management System
Competitive Edge
Food Quality Assurance
Marketing Plan
Marketing Mix
Long term Development Goals

PURPOSE

The purpose to start this business is to serve people of new era with a different and the
most competitive style. We want to help those people who could not spend time in their busy
schedule to take healthy food by diet sandwich which is 100% nutrient, healthy. The prime
purpose is to generate profit by providing superb customer services. We aim to be leader in
providing quality food items that fit into a balanced diet. Our aim is to provide the hygienic
and delicious tastes of sandwich that the customers have never tasted before. We want to add
convenience in the lives of fast food lovers by providing them the most wonderful dining
experiences.
THE RESTAURANT INDUSTRY - REVIEW
Food service business is one of the largest industries in the country. This number has
been increasing for the past seven years. In the past five years the restaurant industry has outperformed the national GNP by 40%. The reasons given by the Folkney Report (November
1994) are
1) lifestyle changes,
2) economic climate, and
3) Increase of product variety.
There are 600 new restaurants opening every month and over 200 more needed to keep pace
with increasing demand.

TRENDS & STRATEGIC OPPORTUNITIES

The predicated growth trend is very positive both in short and long-term projections.
Folkney states that as modern living creates more demands, people will be compelled to eat
more meals away from home.
In 1988 The National Restaurant Association released the Foodservice Industry 2000 report
that forecasted how the industry might look in the year 2000. Some highlights from the panel's
findings:

Consumers will spend a greater proportion of their food away from home.

Independent operators and entrepreneurs will be the main source of new restaurant
concepts.

Nutritional concerns will be critical at all types of foodservice operations, and food
flavors will be important.

Environmental concerns will receive increased attention.

WHO EATS FAST FOOD

The food concept and product image will attract majority of the

The student -- more and more young people have developed healthy eating habits.
Some also go through a "health food phase" while in college.

The health conscious person of any age or sex -- this includes anyone on a restricted or
prescribed diet or those who have committed to a healthy diet.

Curious and open-minded -- "if you try it, you will like it." Through marketing,
publicity, and word-of-mouth, people will seek out a new experience and learn that
nutritious food can be tasty, fun, convenient, and inexpensive.

WHEN DO PEOPLE EAT FAST FOOD

Lunch (44%)

Morning Snack(40%)

Afternoon Snack(31%)

Breakfast(12%)

Evening Snack(14%)

Dinner(19%)

The average person (over the age of 12) eats at a fast-food restaurant for an average of 9.2
times monthly.
PROPOSED BUSINESS LEGAL STATUS
Although the legal status of business tends to play an important role in any setup, the
proposed fast food business is assumed to operate on a partnership of 5 members which may
extend in case of addition of new products that might add significant Business to the existing
setup.
INDUSTRY ANALYSIS
Although the restaurant industry is very competitive, the lifestyle changes created by
modern living continue to fuel its steady growth. More and more people have less time,
resources, and ability to cook for themselves. Trends are very important and we are tasking
interest to provide lighter, healthier foods at moderate to low prices.
The keys to success in achieving our goals are:

Product quality. Not only great food but great service and a fun-entertaining
atmosphere.

Managing finances to enable us to open new locations.

Controlling costs.

Focusing on themes that have customer appeal.

Creation of spectacular design and layout at each facility

Critical Success Factors for the local sandwich shop could include:
Establish and maintain an exclusive relationship with a baker to supply on a daily basis, 6
days per week, a range of speciality and exclusive breads baked according to proprietary
recipes
Purchase an extensive range of high quality meats, cheeses, fruits & vegetables
Recruit and train:
Friendly people with the right attitude to the customer (the customer is always right)
Highly efficient, creative people who enjoy making the best sandwiches for customers
Encourage innovative product suggestions from customers and staff
Charge a premium price but one which, together with the product and the service, ensures
customer value-for-money
Promote, make and serve fresh, exclusive, attractive, tasty, well-presented sandwiches
always.

OPERATIONS PLAN
Fast food is the term given to food that can be prepared and served very quickly. While any
meal with low preparation time can be considered to be fast food, typically the term refers to
food sold in a restaurant or store with fast preparation and served to the customer in a
packaged form for takeout take-away or can be consumed at the store or the restaurant.
The operational plan is an essential component to our business plan and it tells the reviewer
how we are going to get your product/service out to market. That is, how we are going to
get your product out of the production stage to the doorstep of you target customer.
Speaking about our outlet, we have three sections in total in our store, which will be
catering to different kinds of customers according to their taste and preferences.

 We have positioned our products/store as value for money and quality fast food but at the
same time we are not serving our customers, we want our customers to help themselves
this strategy will also work as word of mouth promotion where the experienced customers
will tell new customers creating a unique interest in the minds of potential customers.

PRODUCTION PROCESS

Preparing a Sandwich
Since its a fast food which can be prepared very quickly as half of the things used to
produce something is already ready or prepared now preparing a Sandwich will start with
having all the necessary vegetables on its place which means having our inventories on place,
then the process of making the food thats the sandwich will start followed by the Finished
product thats sandwich having Inventories On place Work in Progress Finished Product In
order to meet the demand of inventories which we will be having we will be using sum of the
production operation techniques which will see that we are making optimum utilization of
resources and minimum wastage.

Manufacturing Plan

Once an order is received, the associate behind the service counter will begin to
assemble the customers order based on the sales data which will be displayed on a monitor.
Each associate behind the service counter will be responsible for a certain aspect of the
assembly line such as; placing the necessary ingredient in the bread, adding the required
condiments, and making sure the meal is properly wrapped before delivery and set on a serving
container. The assembly line will have placards or assembly instructions showing how each
meal should look and what condiments need to be on the sandwich. This will ensure that each
sandwich is done the same and will maintain quality. There will also be an associate in the rear
of the kitchen who will supply the production line with more products.

Products
Fried
Chicken

Burgers

Sandwiches

Salads

Beverages

Production process flow

Raw Materials

Cutting

Mixing

Filling

Serving

MUMMIES SANDWICH has found something that allows us to improve quality and
lower costs.

1. Improved Quality
The benefits of a better tasting Sandwich should be fairly apparent. Unless of course
you prefer aged sandwich, the fresher sandwich is going to be higher quality if made fresh just
for you.
The less obvious benefit is the higher quality customer service that arises from the JIT
sandwich assembly. When Mummies Sandwich waits for you to order the sandwich, we do
a few things to improve customer service. This higher quality customer service is subject to our
ability to actually produce faster. Without this ability, Mummies Sandwich ordering costs
would be sky-high because the costs associated with ordering would be the loss of customers
tired of ordering fast food that really is not fast.

Nutrition calculator

Mummies Sandwich serves a wide range of quality sandwich that can easily fit into
individual diet needs based on the principles of balance, variety and moderation. Our varied
menu and range of serving sizes make it easy to fit our food into a balanced diet and to create a
range of meal combinations that fall within recommended guidelines for calories, fat and other
nutrient
WE are also helping you learn more about our food by adding nutrition information on
some of our packaging. Some of our packaging now includes the Mummies Sandwich
Nutrition Chart. Our goal is to provide you with the information you need to assist you in
making sensible decisions about balance, variety and moderation in your diet.

2. Lower Costs

The holding costs for sandwich parts are fairly high because of its spoilage costs.
Instead of having a shelf life of months or weeks, the sandwich needs to be sold within 15
minutes or so. The holding costs go from roughly 20% per week to 100% per hour.
In terms of operating the business, it's as easy as establishing a working relationship with a
catering service to supply the sandwiches on a wholesale basis, while building a customer base
to purchase the lunch meals. Design a menu featuring all the sandwiches, salads and other
items available and distribute the menu to office buildings and factories. Customers would
simply place their lunch orders in the morning or the day before. Additionally, lunch orders
could be placed by way of fax, phone or e-mail. But we will be delivering our products to our
customers within a Geographical Area of first 5km (Home Delivery) from our Store if
customers bill exceeds Rs200/- and he need to pay 15% of the bill amount extra as delivery
charges which will be lowered as the bill amount increases in percent.

INVENTORY MANAGEMENT SYSTEM

a) Just-In-Time (JIT) is an inventory strategy implemented to improve the return on

investment of a business by reducing in-process inventory and its associated carrying costs.
Now as a store of fast foods we are in instant need of vegetables and other grocery
requirements as and when needed or required. This we will come to know through our Chefs
such as the presence or absence of a part. Quick communication of the consumption of old
stock which triggers new stock to be ordered is key to JIT and inventory reduction. This saves
warehouse space and costs. In order to meet our requirements we will be having tie ups with
Vegetable Vendor and 1 Grocery store.

b) Economic Order Quantity (EOQ) is the level of inventory that minimizes the total
inventory holding costs and ordering costs. The framework used to determine this order
quantity is also known as Wilson EOQ Model. We will order on Daily basis with one order per
day and as per our requirements say for example in the morning we order we will see to it that
with that order our requirement is fulfilled of the day, this will reduce the transportation cost
for 1 more order or unnecessary order .

c) Supply Chain Management (SCM) is the management of a network of interconnected

businesses involved in the ultimate provision of product and service packages required by end
customers. we will be having tie ups with sum of the vendors of vegetables and grocery stores,
so that our needed requirements doesnt get hampered as we will be following JIT and EOQ
methods to avoid unnecessary wastage of resources and money.

APPLYING DESIGN PRINCIPLES TO LAYOUT

Space analysis for the following functional areas:

Receiving

Storage

Office/ Counter

Pre-Preparation

Final(Hot-Food) Preparation

Employee locker room and toilet

Service area

Ware washing

OPERATING FACILITIES AND EQUIPMENT TO RUN THE BUSINESS

1. Kitchen Equipment

2. Kitchen apparels

Commercial Fryers

aprons

Hot Food Storage

bandannas

Steam Equipment

caps& hats

Commercial Ovens

chef coats

Wood Cabinet Carts

chef hats

Work Tables

face masks

Tissue rolls

finger guard

Cutlery sets

kitchen gloves

Freezers

Generators

Microwaves

Waste bins

3. Cooking equipment

Restaurant Toasters

Sandwich Grills

Sandwich Press

4. Stationary

Register rolls

Sales book

Tape products

How we will manage to serve best and fast to keep up to our customers expectations:

Use of paper products and plastic wraps keeps labor costs down: Pre-sliced cheese,
packs of jellies and ketchup, getting the customer to help them. A limited menu
restricted to items with a short preparation time would make fast service possible and
would also be useful in streamlining operations.

Utilization of time-saving equipment: Microwave, post mix beverage dispensers etc.

Utilization of labor-saving equipment: Ware washers, automatic potato peelers and

automatic coffee brewers.

Access to Raw Materials

The Assembly line model is common in foodservice design:
A salad/cold food preparation area with access to raw materials:
Flow in the dish washing process

Access to Utensils and Equipment:

Utensil drawer in each worktable, for each employee, or one drawer for each 4 linear feet of
worktable
Overhead utensil racks (ceiling-hung) in hot-food and cold-food preparation areas & near
steam-jacketed kettles for paddles or wire whips
Shelving under each worktable for larger utensils
Wall-hung over shelf above each table
Racks for mixer parts and bowls
Large racks in bakery, hot-food preparation, and salad preparation areas for sheet pans,
baking pans, and other large utensils
Special storage racks for food processor blades and parts
Large rack or special storage room for catering supplies
Knife rack in each preparation area

COMPETITIVE EDGE

Location: Location is critical to success. Our store is on Main Street or just off Main
Street, there by taking advantage of walk-by and drive by traffic. But we also need adequate
parking to make shopping at our store convenient for drivers.

Convenience: Customers are willing to pay a little bit more for good food and the
convenience of being able to get what they want without having to travel out of town. Our
customers will purchase our food because it is reliable and delicious.

High quality: Focusing on high quality food, we will draw customers from the
competition, as well as create a local market that has not existed before. If the prices are
reasonable and the food is good, we will have growth through repeat business.

COMPETITIVE STRATEGY

There are three major ways in which we will create an advantage over our competitors:

1. Product identity, quality, and novelty

2. High employee motivation and good sales attitude
3. Innovative and aggressive service options

FOOD QUALITY ASSURANCE

The bedrock of all our socially responsible supply efforts is our commitment to
ensuring that all the foods and beverages we serve our customers are safe. We do business only
with suppliers that share this commitment and work with them to continuously monitor, test,
and track our ingredients. We have stringent standards and checks in place in critical areas
throughout the food supply chainfrom "fork to farm."

Our Operations and Training manual for restaurant managers includes a whole chapter
on food safety, with requirements and guidance that cover all the critical control points at the
restaurant levelfrom supply and delivery through storage, preparation, and holding.

Food safety procedures are monitored by staff operations consultants, who regularly
visit our restaurants to advise managers on operations. The consultants also conduct periodic
restaurant operations reviews, which include assessments of food safety procedures. Managers
are expected to correct any irregularities identified.
Systems & Controls
A big emphasis is being placed on extensive research into the quality and integrity of
our products. They will constantly be tested for our own high standards of freshness and purity.
Food costs and inventory control will be handled by our computer system and checked daily by
management.
How orders are taken
Similar to most fast food establishments, orders will be taken on the right side of the
service counter where money will be exchanged and the customer will be issued a receipt
containing the order selection and a claim number. Cups will be dispensed so the customer can
select their desired drink while waiting for their individual orders to come up. When the order
is ready, the associate on the left side of the counter will call out the claim number for the
customer to pickup.

Packaging

Packaging design is a fundamental part of our top quality customer service. Many of
our menu offerings have unique packaging designs to provide insulation, help ensure food
safety, and make them convenient for carryout. This gives us many ongoing opportunities to
minimize the environmental impacts of our packaging and to provide industry leadership in
natural resource conservation.

Daily operations and production

The day-to-day operations of the restaurant from opening to close will be in
accordance to industry standards and norms stipulated. Our plan conveys to any reader that
management has a sound plan for operating the restaurant. Operational issues such as
scheduling, departmental job functions, ordering and receiving, menu production, service,
general safety procedures and maintenance are some of the matters which would be cautiously
catered to. We standardize our product and service by restricted menu items. To adopt Oursis-better-than-theirs strategy by using a combination of focus-differentiation strategy keyed to
product quality. Sales and marketing efforts are focused on the individual customer basis, to
suit their requirements and taste, to develop the superiority perception in customers view.

Customer service
We plan to adhere to establishing service attitudes and policies for effective quality
functioning and service provision. All the customer complaints which would have to be
handled and how we will go about getting customer feedback such as surveys or through
mystery shoppers will all be a part of the process of adhering to quality standards.

Management controls
Operating a restaurant on a day-to-day basis requires established systems and controls.
Many seasoned restaurateurs have established systems to help them control cost and maintain
excellence. Unfortunately, though, some startup restaurateurs open their doors unprepared to

industry experts analysis, we plan to incorporate management controls, tasks and support
systems into our plan.

FINANCE PLAN
Finance department is responsible to arrange the cash inflows of the business. It also
identifies the sources from where the finances can obtain to run the business operations
smoothly.

Capitalization needs: The estimated capitalization needed to open the business is

approximately 30 lakhs and the planned sources for funding it are personal investments of
partners, bank loan and credit union.

Average Sale per Customer = Total Sales / Number of Customer transactions

This can be done by the year, month, week or day. The important thing is sales members need
a target to aim for and this is one of the most effective ways of doing this

Sales per Full time Team Member = Total Sales / Number of full time equivalent team
members.

Break even analysis

MANAGEMENT REQUIRED TO RUN THE BUSINESS

1. Fast food manager

2. Quality assurance manager

Designation/type

No

Owner

kitchen supervisor

shift supervisor

Cook

take away order taker

dish washer

Cleaner

guard(12hour)

Total

19

Cooks: Prepare food in a prompt, safe and clean manner to ensure complete customer
satisfaction.
V.P. Quality: Sets standards of quality to meet all state and federal health and safety
guidelines.
Quality Manager: To assist V.P. of quality in obtaining all state and federal health and
safety guidelines, as well as delegation of tasks to ensure these guidelines are being
maintained.
Quality Supervisor: Oversees, and assists individual restaurant and its maintenance
associates to ensure the company, as well as state and federal health and safety guidelines are
being maintained or exceeded.
Maintenance: Carries out all functions as assigned by quality manager or quality
supervisor with a constant regard for fellow associates, and customers well-being

MARKETING PLAN
A comprehensive business plan includes a sound marketing plan. Owner, investors and
bankers want to know you have a proactive plan to grow your business. You cant rely on
instant popularity and simple word-of-mouth marketing just because some restaurants, but not
many, open their doors to instant success.

Objectives:

Shall deliver what is promised, promptly

Shall adapt to the changing trends and deliver the best accordingly

Shall strive to maintain harmonious relationship with customers & suppliers

Goals:

Create Awareness through intensive marketing

Attract people and impart the experience

Break even by the third year of establishment

Brand name: Mummies Sandwich We value your health
USP
Diet sandwiches is our USP. We care for the calorie that our sandwiches add to your

health. We give sandwiches that will not make you sluggish in the morning and that can kill
your hunger during the noon, will give you a light feel for your dinner. We are here to break up
the common perception that fast food destroys your health.

We value your health than

anything else.

Service differentiation
We are providing the customers with diet sandwich so it maintains their health. We will
be providing fast food in area of 5km. from our fast food hub. This is a unique positioning
were in the customer will perceive us different from other fast food outlets.

Segmentation
For any business it needs to identify the segment they are going to segment the
population. We segment people between age group who are so conscious about their health.

We here by segment our customers into elite (who are youngsters between age 20-30) and
premium (people between age group 30-45).
Segmentation helps to cater each individual segment that has commonality.

Targeting
We cater mainly to these two segments that will take care of our sales. Once we are
done with our segmentation we are in to how we will target our segment. Unlike a common
segment where you have wide range of population with different needs, segmentation helps
better in targeting our segment. You have a population with a commonality which you can tap.
We focus our two segments so that they feel their needs are satisfied to the fullest possible.

Positioning
Now the biggest challenge in front of us is how we are going to position our products in
front of our segments. To our elite segment we would like to position our sandwiches as tasty,
trendy, with more varieties. We make them feel that we make them trendy, youthful with the
fast foods but with concern for their health.
Once we could position ourselves to our elite customers here comes our premium
customers. Here lies our greatest challenge and also opportunity. They are the customers who
we are looking for. They are the ones who are really health conscious but need our sandwiches
to cope with their fast moving schedules. To them we are going to position our sandwich as a
Sandwich of their money, health and time.

Marketing mix

Product
Our main product is sandwich. We are specializing in producing sandwiches that are
not going to affect your health. We will have customization that is our customers will get their
choice of taste. We use product differentiation strategy were we differentiate our product we
make the customer to feel that we are not offering them the ordinary sandwiches that everyone
offers.

Price
We are going to use cost plus pricing strategy. Since we are going to differentiate our
product from the others we are going have this strategy. Customers will not feel the difference
in our price even if it is high as it appears to be a different one.

Promotion
The foremost activity and most important among the marketing mix is promotion. We
need to create the awareness among the people about our sandwiches. Or else it will be
considering as yet another sandwich in the market that has evolved to add fuel to existing
health problems. It is our campaign that is going to bring out the innovation that we have
brought in sandwich. One our advertisement campaign succeeds sure our sandwich will stand
on its own. We would like to go for food festivals, sponsoring events in colleges, through Fm
and hoardings.

Place

Mumbai Suburbans

Navi Mumbai

Thane

LONG-TERM DEVELOPMENT GOALS

DIET SANDWICH is an innovative concept that targets a new, growing market. We assume
that the market will respond, and grow quickly in the next 5 years. Our goals are to create a
reputation of quality, consistency and security (safety of food) that will make us the leader of a
new style of dining.

Strategies: Our marketing efforts will be concentrated on take-out and delivery, the areas of
most promising growth. As the market changes, new products may be added to maintain sales.

Milestones: After the restaurant opens, we will keep a close eye on sales and profit. If we are
on target at the end of year 1, we will look to expand it.

Risk evaluation: With any new venture, there is risk involved. The success of our project
hinges on the strength and acceptance of a fairly new market. After year 1, we expect some
competition in the form of other independent units. Chain competition will be much later.