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Harry’s Diner
An authentic western experience
Harry’
s
Diner
An Authentic Westren
Experience
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Harry’s Diner
An authentic western experience
Table of Contents
Executive Summary
Company Description
Industry Analysis
The Competition
Operations
Appendices
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Harry’s Diner
An authentic western experience
Company Description
Harish Ethos and Bios Pvt Ltd Company, will operate Harry’s Diner, a
single unit, medium-size restaurant serving healthy, contemporary
Western and European style food. The restaurant will be located at
Road No 1, Banjara Hills, Opposite to Jalagam Vengala Rao Park,
Hyderabad.
Company Ownership
The restaurant will start out as a HEB Pvt.Ltd, owned by its founders
Kirthi Harish who will function as the General Manager and his good
friend Mr. Albert Rao as his techinical advisor and consultant. Mr.
Albert has been in the restaurant business since the past 5 years in
Chennai and his expertise will help in succesfully running Harry’s
Diner.
Mission Statement
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Harry’s Diner
An authentic western experience
Objectives
Harry’s Diner objectives for the first three years of operation includes:
Keys to Success
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Harry’s Diner
An authentic western experience
The fact that no other restaurants in the area has this concept and
atmosphere presents us with a window of opportunity and an entrance
into a profitable niche in the market.
Industry Analysis
Fast food is one of the world’s largest growing food type. India’s fast
food industry is growing by 40% a year and is expected to generate a
billion dollars in sales by 2005.The multinational segment of Indian fast
food industry is up to Rs. 6 billion, a figure expected to zoom to Rs.70
billion by 2005. By 2005, the value of Indian dairy products is expected
to be Rs.1, 00,000 million. In last 6 years, foreign investment in this
sector stood at Rs. 3600 million which is about one-fourth of total
investment made in this sector. Because of the availability of raw
material for fast food, Global chains are flooding into the country.
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Harry’s Diner
An authentic western experience
d) Subways have established around 40 outlets.
The main reason behind the success of the multinational chains is their
expertise in product development, sourcing practices, quality
standards, service levels and standardized operating procedures in
their restaurants, a strength that they have developed over years of
experience around the world. The home grown chains have in the past
few years of competition with the MNCs, learnt a few things but there
is still a lot of scope for improvement.
The predicated growth trend is very positive both in short and long-
term projections. 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 forcasted how the industry might look in the year
2000. Some highlights from the panel's findings:
The Menu
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Harry’s Diner
An authentic western experience
Production
Food production and assembly will take place in the kitchen of the
restaurant. Fresh vegetables, meat and dairy products will be used to
crate most of the dishes from scratch. The chef will exercise strict
standards of sanitation, quality production, and presentation or
packaging over the kitchen and service staff.
Service
There will be three ways a customer can purchase food. They may sit
down at one of the 30 seats in the dining room and get full service
from a waitperson. A separate take-out counter will service those who
wish to pick up their food. Most take-out food will be prepared to order
with orders coming from the telephone. Delivery (an indirect form of
take-out) will be available at all times and to a limited area.
Future Opportunities
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Harry’s Diner
An authentic western experience
The market for Harry’s Diner products covers a large area of diverse
and densely populated groups. It is located in the busy road of Banjara
hills, it is an area where people travel to eat out and one that is also
frequented by tourists. It is also an area known for and catering to the
demographic group we are targeting.
The Road no 1 Banjara Hills, area is one of the most desirable retail
locations in Hyderabad. There are more than 400 businesses in a 1/4
square mile area with average sales of food is through home delivery.
The food concept and product image of Harry’s Diner will attract 3
different customer profiles;
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Harry’s Diner
An authentic western experience
The Competition
Competitive Strategy
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Harry’s Diner
An authentic western experience
There are three major ways in which we will create an advantage over
our competitors;
Harry’s Diner will be the only restaurant among all the competition
which focuses the entire menu on healthy, low-fat cooking (NO OIL).
The target market will perceive Harry’s Diner as the destination
location for healthy, low-fat cooking.
Once they have tried the restaurant, their experience will be reinforced
by friendly, efficient, knowledgeable service. Return and repeat
business will be facilitated by accessable take-out and delivery options.
Market Penetration
Entry into the market should not be a problem. The store has high
visibility with heavy foot traffic all day long. The local residents and
students always support new restaurants and the tourists do not have
fixed preferences. The presence of Chinese Paviloon, a chinese
restaurant in the same building will add as an aded advantage to
attract the customers to try some thing new.
Marketing Strategy
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Harry’s Diner
An authentic western experience
• Hotel guides, concierge relations, Chamber of Commerce
brochures
• Direct mail -- subscriber lists, offices for delivery
• Misc. -- yellow pages,SMS advertising
Catering to offices (even outside of our local area) may become a large
part of gross sales. At that point a sales agent would be hired to
directly market our products for daily delivery or catered functions.
Operations
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Harry’s Diner
An authentic western experience
Hours of Operation
The restaurant will be open for lunch and dinner 7 days a week.
Service will begin at 11:00 AM and end at 11:00 PM.
Food Production
All the food will be prepared on the premises. The kitchen will be
designed for high standards of sanitary efficiency and cleaned daily.
Food will be made mostly to order and stored in large coolers.
Management to be Added
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Harry’s Diner
An authentic western experience
These key employees will be well chosen and given incentives for
performance and growth.
Kirthi harish will be the President and Chief Operating Officer. The
general manager and chef will report to him. The assistant manager
and sous-chef will report to their respective managers, and all other
employees will be subordinate to them.
Abonda will offer competitive wages and salaries to all employees with
benefit packages available to key personnel only.
Board of Directors
Goals
Harry’s Diner 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,
consistancy 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.
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Harry’s Diner
An authentic western experience
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
to a second unit.
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 copycat competition in the form of other
independent units. Chain competition will be much later.
Exit Plan
Ideally, Harry’s Diner will expand to five units in the next 10 years. At
that time, we will entertain the possibility of a buy-out by a larger
restaurant concern or actively seek to sell to a new owner.
Personnel Plan
We believe the personnel plan is in good proportion to the size of the restaurant and
projected revenues. The staff will include 10 full-time employees
Kitchen:
• Cooks (4)
• Manager (1)
• Suprvioser (1).
• Waiting staff (4)
Personnel Plan
Year 1 Year 2 Year 3
Manager 120000 144000 144000
Supervisor 100000 120000 120000
Waitperson 72000 78000 78000
Waitperson 72000 78000 78000
Waitperson 72000 78000 78000
Waitperson(x3 after 1 year) 72000 222000 234000
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Harry’s Diner
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Total People 10 12 12
Financial Plan
CC Account is needed for monthly maintanence of kitchen equipment, food & restaurant
supplies, legal fees, working capital, marketing and personnel.
The financial plan depends on important assumptions, most of which are shown in the
following table as annual figures. The key underlying assumptions are:
General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 0.00% 0.00% 0.00%
Long-term Interest Rate 7.00% 7.00% 7.00%
Tax Rate 34.58% 35.00% 34.58%
Other 0 0 0
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Harry’s Diner
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Break-even Analysis
Assumptions:
Average Percent Variable Cost 33%
Estimated Monthly Fixed Cost $31,125
The most important assumption in the Projected Profit and Loss statement is the gross
margin. Although it doesn't jump drastically in the first year, over time the restaurant will
develop it's customer base and reputation and the growth will pick up more rapidly
towards the fourth and fifth years of business.
Month-by-month assumptions for profit and loss are included in the appendix.
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8.4 Projected Cash Flow
The cash flow depends on assumptions for inventory turnover, payment days, and
accounts receivable management. Our projected same-day collection is critical, and is
reasonable and customary in the restaurant industry. We do not expect to need significant
additional support even when we reach the less profitable months, as they are expected.
Month-by-month assumptions for projected cash flow are included in the appendix.
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Harry’s Diner
An authentic western experience
Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $222,186 $367,268 $540,938
Other Current Assets $0 $0 $0
Total Current Assets $222,186 $367,268 $540,938
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $222,186 $367,268 $540,938
Current Liabilities
Accounts Payable $21,213 $51,121 $59,270
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $21,213 $51,121 $59,270
Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 15.00% 15.00% 0.00%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 67.00% 67.00% 67.00% 0.00%
Selling, General & Administrative Expenses 64.07% 66.34% 63.47% 0.00%
Advertising Expenses 1.98% 2.31% 2.05% 0.00%
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Harry’s Diner
An authentic western experience
Profit Before Interest and Taxes 27.43% 24.02% 27.68% 0.00%
Main Ratios
Current 10.47 7.18 9.13 0.00
Quick 10.47 7.18 9.13 0.00
Total Debt to Total Assets 89.23% 55.43% 34.26% 0.00%
Pre-tax Return on Net Worth 1027.28% 152.23% 94.42% 0.00%
Pre-tax Return on Assets 110.61% 67.85% 62.07% 0.00%
Activity Ratios
Accounts Payable Turnover 25.75 12.17 12.17 n.a
Payment Days 27 21 28 n.a
Total Asset Turnover 4.25 2.96 2.31 n.a
Debt Ratios
Debt to Net Worth 8.29 1.24 0.52 n.a
Current Liab. to Liab. 0.11 0.25 0.32 n.a
Liquidity Ratios
Net Working Capital $200,973 $316,147 $481,668 n.a
Interest Coverage 19.70 22.61 35.45 n.a
Additional Ratios
Assets to Sales 0.24 0.34 0.43 n.a
Current Debt/Total Assets 10% 14% 11% n.a
Acid Test 10.47 7.18 9.13 n.a
Sales/Net Worth 39.45 6.63 3.51 n.a
Dividend Payout 0.14 0.14 0.13 n.a
Sample Menus
Appetizers
1. Cheese Sticks: Hand breaded Monzerella grilled to a crisp golden and served with
our speciality dip. (rs: 65)
2. Onion rings: Sliced onions battered, then fried to golden and served with BBQ
sauce (rs: 65)
3. Cheese fries: French fries grilled to a perfect golden brown and topped with
melted cheese and served with a dip. (rs 70)
4. BBQ French Fries: All time favourite french fries grilled and tossed in BBQ sauce
with lettuce, onion and cheese (Rs: 65)
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Harry’s Diner
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5. Italian Garlic Bread: Fresh herbs from Italy, mixed with Hyderabad and perfected
at Harry’s (Rs: 60)
6. Chilly Cheese Corn: Garlic bread with generous topping of American Sweet Corn
and cheese and drizzled over by hot chilly flakes. (rs: 65)
7. French Fries and potato wedges: All time favourite fries and wedges served with
dip Small rs: 40 and large rs 60
8. Cheese Nuggets: Veg nuggets filles with juicy cheese center fried to golden
brown and served with home made salsa dip (rs: 65)
9. Spicy chicken garlic bread: Grilled chicken shreaded and mixed wth garlic butter
and monzerella cheese on bread, served with house dressing. (rs:75)
10. Popcorn Prawns: Fresh juicy prawns battered and grilled to golden brown and
severved over with lettuce with our favourite dipping sauce. (rs: 80)
11. Rings of calamari: Battered squid rings grilled to perfection and served with
tartarate sauce.(Rs: 80)
12. Fish Fingers: Battered fish fingers fried to golden brown served over a bed of
lettuce and complemented with tartarate dip. (rs: 80)
The stone age man started using fire to cook meat, and barbecue can be said to have
evolved from this way of cooking food. Barbecue was introduced in America in the early
1800s, when cowboys were employed for moving cattle to the West. These cowboys
were given meat that was hard and impossible to chew. They found out that cooking
meat, directly on the fire for 5-7 hours makes the meat tender and edible. and the results
were delicious!
BBQ Corn on the cob: American sweet corn- steemed and BBQ’ed and topped with
butter or cheese and served along with french fries and cowlsa (rs: 65)
BBQ Italian Vegi : Fresh veggies, mainated in a special italian dressing and served
over a bed of fresh salad, french fries and cowlsa (rs:75)
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Harry’s Diner
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Spicy Thai veggi: fresh veggies marinated in spicy Thai sauce grilled till tender and
juicy and served along with salad and spicy potato wedges.( Rs.75)
BBQ cottage cheese: The goodness of paneer marinated in hot and spicy sauce, grilled
till succulent and served with green salad, grilled onion and served along with potato
wedges (rs:75)
BBQ stickey chicken wings: Our special sticky chicken wings are marinated in a
secret sauce and grilled to perfection and served over with salad and dipping sauce of
ur choice. (rs: 95)
Hot & sour wings: These Chineese chicken wings will make u want for more.
Marinated in hot and sour sauce and served with salad and hot and sweet dipping
sauce. (rs:95)
Chicken Peri Peri ( Leg): This fiery recepie was invented in south Africa and perfected
in Hyderabad. Served with salad and dipping sauce of your choice. (rs: 95)
Thai drum sticks: From the land of Thailand comes this spicy chicken recipie. Served
with salad and dipping sauce. (rs:95)
Italian herbs chicken breast:The mild full boidied flavours of the italian herbs just
burts into ur mouth with every bite. Served with ceaser dressing an salad.(rs:95)
Honey mustard Chicken thighs: The taste of honey will just hit you in an wonderful
way which will catch you off guard. Served with salad and specail dipping sauce.
(rs:95)
Lemon Pepper Chicken(Breast): The marinate of lemon and black pepper will make
sure that you will ask for a refill. Served with salad and your choice of dipping sauce.
(rs:95)
Fish & chips: The breaded fish fillets are grilled and then bbq’ed for to get a special
flavour. Regular in Britan, shockingly good at Harry’s. served with tartrate dip, french
fries and mushy peas. (rs: 105)
Bangers and Mash: Britans favourite chicken sausages and mashed potatoes with a
special gravy and French fries.(rs 105)
Dips: Salsa dip, Gucomolli dip, Spicy Hikoery dip, Cheese dip, Tomato and baisl dip
Dressing: Ceaser, Italian, French, Honey Mustard, BBQ, Spicy Hiokery, Ranch,
balsmic, lemon pepper venigerette( Harrys special)
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Harry’s Diner
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Italian Veggie salad: Fresh veggies marinated in special Italian sauce and grilled and
tossed with lettuce, olives, gerkins and dressing. (rs: 140)
Cottage cheese salad: grilled cottage cheese in a spicy marinate and served with fresh
lettuce, olives, tomatoes, onions and gerkins.(rs140)
Waldroof Salad: Freshly cut apples along with roasted walnuts over a bed of lettuce
and a liberal amount of dressing. (rs:135)
Summer salad: Feesh seasonal fruits over lettuce and served with our special yougurt
dressing. (rs;135)
Chicken ceaser salad: Grilled chicken with lettuce, tomatoes, and croutons. Served
with the classic ceaser dressing. (rs:155)
Subwiches:
Desserts:
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