Professional Documents
Culture Documents
PURCHASE
RECEIPT/DELIVERY
AMBIENT/CHILLED/FROZEN
STORAGE
PREPARATION
COOKING
REGENERATION
SERVICE
Technical Feasibility
Technical Assumptions: Technical equipments what we have are best available in the
market . And In future we have technical advantage on our competitors.
1. Facilities and Major Equipment price(in Rs)
1.1 Kitchen facilities
1.2 Refrigerators and freezers (23,000)
1.3 Ranges and hot plates (12,000)
1.4 Ovens (15,000)
1.7 Transportation equipment (15,000)
1.8 Washer and dryer (7,000)
2. Kitchen Furnishings (20,000)
3.Smaller Equipment
5. Kitchen Equipment
5.1 Knives (5,00)
5.2 Cutting boards (3,00)
5.3 Scales, pots and pans, and strainers (2,500)
6. Serving Equipment
6.1 Serving ware (1,500)
6.2 China, glassware, and linen (4,000)
6.3 Baskets and other decorative items (7,000)
7. Nonessentials and Other Small Tools and Equipment
Administrative Equipment
Desk and chair. (4,000)
Computer with printer, CD-RW, Microsoft Office, and QuickBooks Pro. (17,000)
Copier and fax machine. (4,000)
Stationary. (1,000)
Methods of Production
Food production and assembly will take place in the kitchen. Fresh vegetables, meat and dairy products will
be used to create 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.
The four main things to processed for good hygiene, they are:
3. Chilling: Chilling food properly helps to stop harmful bacteria from growing. Some
foods need to be kept chilled to keep them safe.
Ecological Issue
Electricity, gas and others, is wasted due to energy inefficient appliances and
human activated waste.So, we are giving too much emphasizing on this. Because
wastage of energy cause harm to environment.
We are using kitchen appliances that carry the Energy Star logo.
Waste management system.
Educating our employee employees about the various environment friendly and
energy efficient alternatives available today.
Legal requirements
Food Safety Act 1990
1. sell (or keep for sale) food that is unfit for people to eat
2. cause food to be dangerous to health
3. sell food that is not what the customer is entitled to expect, in
terms of content or quality
4. describe or present food in a way that is false or misleading
.
Food Premises (Registration) Regulations 1991
If we are planning to start a new food business, we must register
our premises 28 days before opening.
Food Safety (General Food Hygiene) Regulations 1995
These Regulations set out the basic hygiene rules that food
businesses must follow in relation to staff, premises and food
handling.
Food Safety (Temperature Control) Regulations 1995
The regulations cover the following issues:
1. the temperature at which certain foods must be kept
2. which foods are exempt from specific temperature control
3. when the regulations allow flexibility
Fire safety must always be ensured
Tax considerations are essential during the formation of a new business and
during its entire life. When a business is just starting out, it may have little or no
income or assets and the choice of structure may not seriously affect its tax liability.
However, as the business grows, the tax implications become more significant.
Financial Plan
Project Budget
At this time, the Catering Business requires 100,000 of debt funds. Below is a breakdown of how these funds
will be used:
Organizational Budget
Numbers of personnel
Year 2010 2011 2012 2013 2014
Owners 5 5 5 5 5
Manager 1 1 1 2 2
Customer Service 6 6 7 9 10
Seasonsl Staff 3 3 4 5 5
Administrative Staff 1 1 1 2 2
Totals 16 16 18 23 24
General Assumptions
• The Catering Business will have an annual revenue growth rate of 16% per year.
Project financing:-
Sources of Funds-
a. Equity Capital
b. Long term loan from Small Industries Development Bank
Source of Funds
FINANCING
Equity contribution
Management Investments 25,000.00
General Assumptions:
Year 2010 2011 2012 2013 2014
Short Term Intereste Rate 09.05% 09.05% 09.05% 09.05% 09.05%
Long Term Intereste Rate 10.00% 10.00% 10.00% 10.00% 10.00%
Centeral Govt. Tax Rate 33.00% 33.00% 33.00% 33.00% 33.00%
State Tax Rate 05.00% 05.00% 05.00% 05.00% 05.00%
Personnel Tax 15.00% 15.00% 15.00% 15.00% 15.00%
Projected Profit and Loss account
Expenses
Payroll 243,000 250,290 273,712 281,723 283,894
General administrative 14,400 14,976 15,575 16,598 17,345
Marketing Expenses 13,761 15,000 16,350 17,578 19,624
Professional Fees 25,000 25,750 26,523 27,642 29,432
Insurance Cost 7,500 7,875 8,269 9,465 9,978
Travel and Vehicle Cost 15,000 16,500 18,150 18,890 20,890
Rent and Utility 17,500 18,375 19,294 21,732 23,845
Miscellaneous Cost 4,915 5,357 5,839 6,767 7,354
Payroll Taxes 36,450 37,544 41,057 42,132 43,785
Total Operating Cost 377,526 391,666 424,768 427,83 435,25
4 7
Cash Outflow
Payment of Principle 9695 10,605 11,599 14,537 16,485
A/P decreases 24,897 29,876 35,852 37,734 39,539
A/P Increases 0 0 0 0 0
Assets Purchases 82500 15,406 17,002 19,743 21,654
Dividends 94,783 123,247 136,018 140,573 146,754
Total Other Cash outflows 211,876 179,133 200,471 234,725 140,673
Net Cash Flow 119,506 18,512 19,677 21,836 23,231
Balance Sheet
Performa Balance Sheet-
Yearly
Year 2010 2011 2012 2013 2014
Assets
Cash 119,506 138,018 157,695 159,674 163,723
Amortized Expansion Cost 45,000 46,541 48,241 59,689 62,396
Opening Supplies 2,500 5,581 8,982 9,067 12,648
Furniture & Equipment 15,000 18,851 23,102 26,546 27,495
Company Vechile & Lease Deposits 20,000 28,473 37,824 39,637 42,539
Accumulated Depreciation (5,893) (11,786) (17,679) (18,456) (24,625)
Total Assets 196,113 225,679 258,165 294,613 308,801
Break Even:
Break even point = Fixed cost/ Contribution per unit
Contribution per unit = Selling price per unit – variable cost per unit
General Assumptions
Monthly Break Even Analysis
Year 2010 2011 2012 2013 2014
Monthly Revenue 34,956 36,265 39,330 40,471 45,963
Yearly Revenue 419,473 435,185 471,964 504,543 542,78
Business Ratios
Business Ratio - Yearly
Year 2010 2011 2012 2013 2014
Sales
Sales Growth 0.0% 9.0% 9.0% 10.00% 11.00%
Gross Margin 90.0% 90.0% 90.0% 90.0% 90.0%
Financials
Profit margin 17.18% 20.74% 21.08% 23.09% 24.86%
Assets to Liabilities 1.28 1.44 1.61 1.61 1.63
Equity to Liabilities 0.28 0.44 1.61 1.65 1.68
Assets to Equity 4.58 3.25 2.63 2.71 2.87
Liquidify
Acid test 0.78 0.88 0.99 0.99 0.99
Cash to Assets 0.61 0.61 0.61 0.61 0.61
CATERING LAY OUT:
HDF SCHOOL
OF MANAGEMENT
PROJECT MANAGEMENT
for
PGDM 2009-11
PROJECT REPORT ON
CATERING BUSINESS
SUBMITTED BY-
ANANYA GHOSH, PGDM09002
SATISH KUMAR JHA, PGDM09005
SUBHASHIS SINHA, PGDM09008
K.CANDAN KUMAR,PGDM09021
AANSHU SONALI RATH, PGDM09031
SUBMITTED TO-
Prof P.K.RATH