The Partridge

INTRODUCTION

The Partridge
WE ARE PLANNING TO SET UP A FOODCOURT IN PANIPAT CITY WHICH OFFERS DEEP ASSORTMENT OF TRADITIONAL VARIETY OF PUNJABI AND BALTI CUISINES WITH HIGH CLASS ENVIRONMENT ALSO WANTS TO OFFER DIFFREENT TYPES OF FAST FOOD FRENCHIESES UNDER ONE ROOF. EXECUTIVE SUMMARY: We will be starting novel concept of food court in Panipat. We have chosen to enter particularly to restaurant segment because as per BIRD OF GOLD report by McKinsey Global Institute Indian middle class household will swell from 50million to 583 million by 2025.Implies household have more disposable income and shift towards discretion spending. As per CII estimate 2009 because of increase of rising per capital income Food industry will grow to US$310 billion by 2015. Food Industry is growing at the rate of 13% estimate CSO (Central Statistical Organization) Thus there is a huge market potential and no player has tried to offer this concept of serving variety of fast food under one roof. This place will provide a High Class taste and High Class environment means ambience of food court will give you the feel of foreign based food court. Its a unique combination in its own concept. After enough market research, we have found that people wants good food, good

ambiance and also some experiments in foods, like food which is not so traditional and have some international flavors. They want a place where they can enjoy food with good ambiance. The food court is all about catering to need of these types of customers. We will acquire Six acre of land strategically located to be easily accessible for the customers residing in Panipat and Grant Trunk Road customer. Total estimated cost of land is around Rs. 2.5 Crores (at Rs. 1150/- per Sq. Ft.).Construction Cost Rs. 6 Crores which utilizes 20000Sq. Ft. of area (at Rs 2000per sq Ft.) .Remaining space would be used properly to present landscape beauty and to engage children for entertainment. Initial project cost would be Rs 5 Crore. Contribution by Promoters will be Rs. 1 crore and Bank loan of Rs. 4 crore. We will be repaying loan with an EMI of approximately Rs nine lakhs per month .The loan would be repaid over five years period. We will be able to breakeven in 3 years of time. ORGANIZATIONAL HIERARCHY There will be 3 Functional heads for this firm who will be handling various managerial positions. (Purchase, Operation, HR) They will be responsible for managerial decision making. For day to day working several staff will be hired on monthly salary or daily wedges for various positions which include from sweeper, to clean boy, to cook, to accountant, to assistant manager, to a head for the food court supervision. We plan to hire roughly 10 Assistant manager, 20 cooks, 40 assistant workers to cook, 50 other helper boys for cleaning and taking order and for service.

Vision:
To constantly innovate & provide the best that we can for our customers To be recognized as pioneers in the multi-brand food court management, utilizing the highest levels of corporate & with dedicated employees and partners

Mission:

To provide integrated food management support and solutions for our partners So that every customer gets highest level of food quality & outstanding service in a hygienic & fun dining environment

MARKETING OBJECTIVE To achieve annual growth sale of 25%on yearly basis. To form strategic Alliance with, Macdonald, KFC and Haldiram because we are sensitive to diverse need of customer. To become Market leader in NH1. SWOT ANALYSIS: STRENGTH Location: - Our food court will be placed in such an area which can be easily accessible from all part of city and connected to NH1. Experienced staff: - Our hired expertise staff helps us in providing quality food service to our customer. Ambience of place: - The feeling of High class ambiance while dinning is itself a pleasure experience which gives us an advantage over others. WEAKNESS

Lack of experience: Food court is a start up and the odds are laced against it. Will face stiff competition from local players. Financing: - Preliminary estimates of sales and expenditures suggest that it will remain financially stable. However unforeseen expenditure or poor sales will threaten cash position, which will be particularly vulnerable in one year. Limited personnel: - Since we need expertise staff and to find and retain it is very difficult because of the competition in the market.

Opportunities:

Growing market: - restaurants market is growing at a fast speed and demand for quality food is never ending. Potential to become a premier food provider: - because of the experienced and expertise staff we can deliver quality food products. Also the use of technology like Surface technology on table makes it quite innovative and a new experience. THREATS

Local Competition (existing and potential): There are firms which specialize in this concept of food court. Also local players are a threat to our business since they are also competing for the same market share. Economic downturn: The strong domestic economy has been good for the Food and hospitality industry. Continued growth is anticipated. however, unforeseen or unanticipated economic recession would reduce disposable income and threaten our food court sales. MARKET ANALYSIS

Market Segmentation: . Target Customers: Age: Our target customers are family members within age group of 16-40 years. Income: Our target customer will be seeker (2lac-5lac per annum), striver (5lac -10lac per annum Occupation: Professionals, Business man, Corporate Behavioral: To build loyalty program with target customer. Positioning: - Traditional Food with deep assortment and global standard services under one roof.

Competitive Analysis :( On a scale of 1-5) (Questioner asked from sample of fifty people within age group 25-40 years) This analysis is done on various food joints on the parameters like food quality, ambiance, taste, location, and price. Haveli Sukhdev Svoy Green Panipat Mall Food Quality 3 3 4 4 Price 4 4 3 4 Ambience 3.5 2 4 3 Service 3 2.5 3 3 Location 4 4 5 3 Customer 0 0 1 0 Relation Program

MARKETING STRATEGY AND MARKETING MIX PRODUCT MIX

Product: We offer deep assortment of Punjabi, Balti traditional food and Fast
food under one roof .We will offer global standard services and rich ambience. Other then food we have plan for Marriage garden, gaming zone and motel too PRICING STRATEGIES:

Price:

We will be using VALUE PRICING STRATEGY offering just right combination of quality and good services at fair prices. Product bundle pricing: We will combine several products and offer bundle price at reduced price e.g., we will offer special Flavor Thali meal at reduce price.

The Partridge itself is a food court and has more than 15 food brands under its umbrella that offers a perfect cuisine-mix with an array of food variety to its customers! The brands may be as follows:

Price: One or two products in each section will be kept at low price to attract the customer .The product whose price is reduced should be price elastic to pull the customer toward the food court. Place: Our main focus is to pull crowd to food court by running promotional campaigns. Other strategy is to focus on home delivery and corporate customers with the effective use of information system to reduce the timing for logistics. Promotion: We will be using Integrated Marketing Communication which will help food court to develop a consistent, clear and compelling message which will be in sync with food court positioning strategy. Promotional opportunity: As with robust growth of economy per capita income is increasing and more shifts is toward discretion spending. Thus offering great

opportunity to promote our concept to target audience. We will be giving important consideration for spending on promotional budget.

Objective of Promotion: To ensure awareness, knowledge about the food court concept to target customer. Next stage is to use promotional strategies to develop liking, preference and conviction for the concept. Last stage is to develop conviction and purchase for the selected target customer. Promotional Strategies: 1st Stage To ensure awareness and knowledge among target customer. We will be Using Buzz Marketing (attracting opinion leaders) and word of mouth publicity. Advertisement through local media network (cable, newspaper, and Radio). Participating in food fest and organizing food fest competition. Using SUBLIMINAL advertisement strategy in cinema hall to develop awareness of product. 2nd stage of strategy: Using direct marketing concept to reach selected customers via Email. Organizing cultural event every weekend to pull crowd to food court and develop liking and preference for the place. With the application of data base management system tracking customer purchase, frequency and preference to build customer loyalty program. Positioning Message: Our positioning message from every channel of media vehicle is going to promote traditional Food with deep assortment and global standard service.

Evaluation: Implement consumer feed back survey to selected target consumer to check success of IMC campaign on parameter like Branding, Image, and Positioning after three month of promotional activities. Budget: Budget would be Rs 20lac per year.

SALES STRATEGIES To generate majority of revenue for food court by pulling customer to food court location. To target corporate office in the town and offering them special corporate prices. To target carefully selected customer through DIRECT MARKETING using E-mail for better generation of revenue from Home delivery business.

INNOVATIVE MARKETING STRATEGIES

Application of information system (Microsoft surface Technology Computers)

In maintaining customer database on parameters like Amount of purchase, frequency, preference etc. All this activity helps us to build loyalty program with profitable customer. We will be using Microsoft latest surface technology computers with which customer will just have to put menu on surface of computer and will get all information regarding cuisine of his liking .This will substitute waiter role and help in cost reduction. Not only this they can pay bill by using their credit/debit card just moving card over surface of item order that display on computer surface screen. To greet Loyal customers on special occasions (marriage anniversary, birthday anniversary).

STRATEGIC ALLIANCE: 1 Form strategic Alliance with Macdonald, Sweet Chariot, Haldiram. This would help us to cater diverse need of our target customer .In addition we will be taking rent from them which will contribute to our miscellaneous revenue.

2. PROMOTINAL STRATEGY: Installing kiosk on NH1, over bridges and on mall, provides internet to consumer and can advertise like download song free of cost inside Food court. One option on the site provides detail about assortment of product available with food court. 3. Setting up web 2.0 website which offers advantage better than web 1.0website.Customer can interact with site, provide their feed back and write blog about their experience in food court. We can use this site to offer wealth of information about nutrient content of our products. 4. We will organize cultural programme every week to pull crowd towards food court. We will be spending Rs 40,000 per month on this activity. BREAK EVEN ANALYSI

We plan to break even within a period of three years, though we plan to repay our loan in a period of 5 yrs. Fixed cost of investment is Rs 4.5 cr that we have spent on building and land. We will break even at a Revenue of Rs 21.8 Cr FINANCIAL ANALYSIS

Year - 2012
(All Figures in Rs)

Cash Account

Revenue To Capital To Loan from Bank To Cash Sales Total Expenses By land and Building By Purchase By Equipment Salary Electricity Insurance Consultancy Fee Stationary Legal Other Expense By Interest By Tax By Repayment of Loan By Advertisement By Balance Total

10000000 40000000 60000000 110000000 45000000 18000000 3800000 9000000 4000000 500000 100000 50000 10000 440000 4800000 5984748 5877292 1920000 10417960 110000000

Profit and Loss Account

To Depreciation To other Expense To purchase To Interest To Advertisement To tax To Net Profit Total By Sales Total 2000000 15500000 18000000 4800000 1920000 5984748 11795252 60000000 60000000 60000000

Balance sheet
Liability To Capital Loan Loan Repaid 10000000 40000000 5877292

Loan to be Paid Profit Total Asset Land Building after Depreciation Cash Equipment Total

34122708 11795252 55917960 25000000 18000000 10417960 2500000 55917960

Cash Flow Statement

Cash Flow from operating activities Paid to Suppliers(Purchase) Paid to office Expenses Paid for Advertising Sales Tax Cash flow from Investing Activities Land and Building Equipment Cash flow from financing activities Share Capital Loan Interest Repayment of Loan Net Cash -18000000 -15500000 1920000 60000000 -5984748

18595252

-45000000 25000000

-47500000

10000000 40000000 -4800000 -5877292

39322708 10417960

Year 2013
(All Figures in Rs)

Cash Account
Revenue To Balance To Cash Sales Total Expenses By Purchase Salary Electricity Insurance Consultancy Fee Stationary Other Expense 10417960 72000000 82417960 22000000 10468000 5184000 450000 108800 54000 475200

By Repayment of Loan By Interest By Tax By Advertisement By Balance Total

7158567 3518725 12661723 1920000 18418945 82417960

Profit and Loss Account

To Depreciation To other Expense To purchase To Interest To Advertisement To tax To Net Profit Total By Sales By Profit B/D Total 2000000 16740000 22000000 3518725 1920000 12661723 249954804 83795252 72000000 11795252 83795252

Balance Sheet
Liability To Capital Loan Loan Repaid Loan to be Paid Profit Total Asset Land Building after Depreciation Cash Equipment Total 10000000 34122708 7158567 26964141 24954804 61918945 25000000 16000000 18418945 2500000 61918945

ECONOMIC FEASIBILITY

1Start up cost of acquiring land and building food court is Rs 4.5 crore including 2.5 crore&2crore respectively. As we are introducing new concept of food court in Panipat for the first time and our plan is to offer 10 different food sections presenting different state rich food culture. So this is the reason why we have acquired half acre land and built 10000sq ft. area to provide world class services to customers and for rest of the space we have planned to maintain beautiful landscape to provide ambience and delight to customers. This scale up project of running 10 different food court and strategic alliance partners. We will be expecting 1000 customer per day from first month of our project. In addition we will be catering home delivery and corporate customers. We have estimated to breakeven in 3 years. We have not acquire more than half acre because this is our first pilot plan .After successful implementation of plan we will be coming up with large scale up project. 2. We have planned to hire three functional head for managing services, marketing, and operation. We plan to hire roughly 10 Assistant managers, 20 chefs, and 40 assistant workers to cook, and 50 other helper boys for cleaning and taking order and for service. The salary expenses of staff and managers would be Rs 9 lacs per month. The staff number is on higher side because we have to offer deep assortment of product every day to our customers and provide them with world class services. That is our main value proposition. As our revenue increases we can hire more staff depending on concept of Marginal Revenue per employee contribution. 3. We have budget of Rs20lacs per year on advertisement and promotion because our concept is new in the market. So success of the plan would depend on how fast effective promotion campaign will pull crowd to food court location. We also have recruited marketing head to ensure successful implementation of plan that is to pull more than 1000 customer to food court on per day basis and more than 500 home delivery or corporate order from first month of operation. SUMMARY We have introduced novel concept of offering deep assortment of traditional food with cultural ambience of surrounding and to match with world class services. To offer best taste in our recipe we have carefully recruited chefs from all parts of country. As we are spending Rs 2000 per Sqft. On constructing food court complex to offer our customer ambience. We have done full proof analysis of financial status. We have plan to breakeven in three years.

After successful implementation of our first pilot project in Panipt . We will also scale up our project in Panipat food court by utilizing unbuilt area for establishing Gaming center for children, Spa, ultra modern fitness center.