BUSINESS PLAN

The New Moon Everything for Life

Submitted By:
Group 3
 Introduction
The New Moon resto would be a theme based resto. The theme/ concept would be that of a moon
and there would be pure oxygen in the ambience (managed by oxygen cylinders). The whole
resto would be like the surface of the moon and the chairs and tables would be in a shuttle like
box. The whole ambience would give one an impression as if he/she is sitting on the surface of
moon in a space shuttle with pure oxygen in the environment.

Concept based restaurants have come up in the past especially there was a trend in 2004 of
concept based restaurants but these were more on the lines of a roadside ‘Indian Dhaba’. There
are examples like ‘Khaja Chawk’ where the ambience is that of a station and Indian food is
served. They have seating in the shape of an Autorickshaw and the food is served inside the
Auto. Another example is that of ‘Pind Baluchi’ based on the so called Pind i.e. Indian village.
Barbeque Nation was again first of its kind where in people could go and grill their own snacks
(tikkas) on their table. All these examples are the ones which brought out a new/innovative
theme and all these worked well. Infact Pind Baluchi and Barbeque nations have opened multiple
branches. All these examples point towards the fact that people in metros do like to go to such
concept based restaurants and can shell out a premium for the experience.

Mission:

To spread fun and peace- leave together.

Vision:

To be a well reputed restaurant nationally.

SWOT Analysis:

Strength:

1. Location Advantage
2. Unique feature
3. Theme based restaurant
 Weakness:
1. New entrant
2. Costly

Opportunity:

1. Presence of huge number of Tourist and Students.

2. Increasing awareness of eco- friendly market

Threats:

1. Competition from existing restaurant

Target Segment / End User

Our target segment would be middle and high income class segment. The typical customer
would be the one who likes to go to new / happening places in the town and wants to have a
good evening time outside home.

Young / middle aged adult – either earning atleast 30k and above a month or young college
going crowd.

End Product
There would be snacks and bevereges served in the resto. The snacks would be for all types of
food (Indian ,Italian ,Chinese ,Mediterranean , Continental etc.). We would not serve complete
main course.

Industry Growth/Trends and Competition

Our competition would directly be with all the restaurants in Vanarasi and all the food joints
which are high end (for eg. Minggarden, Aman Restaurant, Elchico Bar etc.).
The restaurant industry as such is growing by nearly 5-7% but that is only indicative of the
restaurant business. But such niche resto have more potential than what the industry growth rate
actually shows.
Market Research
The following were the responses from the respondents of the market research. In total 50
respondents have been chosen in the age group of below 40yrs and the sampling has been done
on the basis of convenience. The data has been collected by filling questionnaire.

1. Main preferences while selecting a place

25

20

15

10

0
Eating Joints Family Restaurant Cafes   Restro-Bars

2. Peer Group
25

20

15

10

0
Only Boys Only Girls Majority of the Majority of the Doesn’t matter
guys girls
3. Preferences while selecting a location
1
6 7

Menu
Location
Ambience
Average Bill
Others
18 18

4. Average Bill Value

3
5
16
Rs. 500 – Rs. 1000
Rs. 1000 – Rs. 1500
Above Rs. 1500
Doesn’t matter

26
5. Recommendations to friends

Yes
No

43

6. Average Distance Travelled

30

25

20

15

10

0
2-5 Kms 5-10 Kms 10-20 Kms Doesn’t matter

The above graphs indicates that most of the respondents may give a good response to an
option like “The New Moon” and based on such initial responses we can work upon the
pricing strategy of the restro which will be discussed in the final business plan.
 Details of Project

Location Analysis:
Out resto would be based in Vanarasi nearby ghats. We are deliberately targeting tourist who
comes for visiting ghats and student studying in BHU. As there is a lot of footfall and round the
week we can expect good business. Most likely location is Assi Ghat at Vanarasi.

We are not choosing places like Sigra or Lanka as concept based restaurants at these places have
tend to become less popular with time and there is less population which can be targeted in these
places.

Infrastructure Costs:

 Major Infrastructure expenses will be incurred in first year and in remaining 4 years only
Rs. 20000 per month for maintenance and up gradation of infrastructure.
 The details of the infrastructure cost is as under:

Description Quantity Price

Required (Rs.)

Cutlery Cutlery for 30 2500

People
Custom Seating Arrangement 8 tables 10000
Kitchen equipment
a. Modular Kitchen Pantry Unit 1,00,000
b. Electric Chimneys 1 10,000
c. kitchen fittings
d. griller, roaster, steamer, oven,
refrigerator etc.
Centralized Air Conditioning System 2 25,000
Complete Music System (6 speakers 1
for deep and real sound)
Seamless Tube Oxygen Gas Cylinders 100 (for 1 year) 450
Washroom Equipments (Wash 1 closets
Basin,interiors,closets,faucets,mirrors)
basins,hand dryer
Flooring and Other Decor
Supplier Details
Description
Cutlery
 
 
Custom made seating arrangement
 
 
a. Modular Kitchen Pantry Unit
 
b. Electric Chimneys
c. kitchen fittings
d. griller, roaster, steamer, oven,
both(M&W) and
attached
equipments,3
faucets,2
etc
GRAND
TOTAL
Supplier details
Cornet Crockery
Leading manufacturer and supplier of restaurant
utensils, acrylic utensils, acrylic crockery like
acrylic chart plates, oval dishes, table sets, soup
bowls, fast food crockery, acrylic cups, acrylic
plates, acrylic bowls and serving thalis.
Address: 185, Library Road, Azad Market,
Delhi, Delhi - 110 011, India
Furniture Designs Private Limited,
manufacturer of hotel furniture like hotel
kitchen tables, hotel desks, hotel end tables,
hotel chairs, hotel single chairs, hotel couches,
hotel armories, hotel bed sets, hotel desks and
hotel chairs.
Address: Varanasi, Sigra, India
IDEAS MODULAR KITCHENS
A-11, Rajouri Garden, New Delhi - 110064,
India
Faber
Various suppliers
Various suppliers
 refrigerator etc.
Centralized air conditioning system Blue Star
Complete music system (6 speakers for
deep and real sound) Bose
Universal Industrial Plants Manufacturing Co.
Seamless Tube Oxygen Gas Cylinders (P) Ltd.
  New Delhi, Delhi, India

Operational Costs:

 Monthly Rent is assumed to be Rs. 10 per square feet per month. Hence total rent payable
would be 10 X 3000 = Rs. 30000 per month.
 Operating Costs will grow @ 10% for next 4 years.
 The operating costs are as under:

S.No Cost Head Amount (Rs.)

.
1 Rental 360000
2 Raw Material(360*25*78) 696000
3 Menu Printing 5,000
5 Electricity Bill 56,400
2 Air Conditioners 1,000 pm
20 Lights 800 pm
8 fans 400 pm
Refrigeration 1,000 pm
Music System 1,000 pm
Others 500 pm
6 Labour Overheads 3,48,000
Waiters (= 2*2,000) 4,000 pm
Cashier (= 1*4,000) 4,000 pm
Chief Chef (= 1*8,000) 8,000 pm
Kitchen Staff (= 2* 5,000) 10,000 pm
Security Staff (=1*3,000) 3,000 pm
7 Maintenance Cost (=12*1,000 pm) 12,000
8 Customer Feedback and related costs 2,000
9 Telephone Bills (=12*1,000 pm) 12,000
 TOTAL 1459400

Marketing Costs

 For the first year marketing costs are assumed to be Rs. 10000 per month due to higher
spend for promotional activities.
 For remaining 4 years marketing expenses are assumed to be Rs. 5000 per month.

Interest Costs

 The total capital required for the project is Rs. 1000000

 5 Shareholder will invest Rs 100000 ,that is 500000
 Out of this bank will finance Rs. 500000 at 12% for a 5 year term loan.
 Monthly EMI (principal + interest) works out to be Rs. 9400

Profitability Analysis

Assumptions:

Sales Revenue

 The New Moon Restro will be open 360 days a year.

 Out of 360 days there will be 240 weekdays and on average there will be 20 customers
per day will average bill value of Rs. 200 per customer.
 The remaining 120 days are assumed to be weekends and other holidays. On average
there will be 30 customers per day will average bill value of Rs. 500 per customer.
 Sales will grow at 15% for the next 5 years.

Depreciation

 Fixed Assets of Rs. 700000 are depreciated over a period of 5 years @10% p.a.

Taxes
  Corporate tax rate of 35% is assumed.

Net Profit

 In first year we will run into profit of Rs. 349570, and we will break even in first year.

Profitability Analysis

Year 1 Year 2 Year 3 Year 4 Year 5

Sales Revenue 300000 3450000 3967500 4562625 5247018
0
Infrastructure 700000 240000 240000 240000 240000
Costs
Operating Costs 145940 1605340 1765874 1942461 2136707
0
Marketing Costs 120000 60000 60000 60000 60000
EMI 112800 112800 112800 112800 112800
Depreciation 70000 70000 70000 70000 70000
Gross Profit 537800 1361860 1718826 2137364 2627511
Income Tax 188230 476651 6015891 748077 919628
Net Profit 349570 885209 1117237 1389287 1707882

Appendix I: Questionnaire
1. What are your main preferences while selecting a place while moving to hang out with
friends?
a. Eating Joints
b. Family Restaurant
c. Cafes
d. Restro-Bars

2. The peer group I booze / party out with mainly comprises of

a. Only Boys
b. Only Girls
c. Majority of the guys
d. Majority of the girls
e. Doesn’t matter

3. Given an option to move to a new place, what factors will you consider most important
for selecting it
a. Menu
b. Location
c. Ambience
d. Average Bill
e. Others

4. How much are do you think is a average bill value for place of your choice?
a. Rs. 500 – Rs. 1000
b. Rs. 1000 – Rs. 1500
c. Above Rs. 1500
d. Doesn’t matter

5. Do you recommend such a concept restro-bar to your friends as well if you like it?
a. Yes
b. No

6. How far can you travel for such a place?

a. 2-5 Kms
b. 5-10 Kms
c. 10-20 Kms
d. Doesn’t matter