Part One: Introductory Page

1.1 General Background of Business

Name: Laxmi Restaurant

Address: Birendranagar 6, Surkhet

Name of principals: Laxmi K.C.

Address: Birendranagar 12, Surkhet

Estimate and source of capital: 8-10 lakh

Target customer: young adults

1.2 Introduction

Name of organization is Laxmi restaurant which will be commended by the owner.

This restaurant located in the Birendranagar-6, Surkhet. Which provides different
items of food for a customer? This restaurant will give opportunity to offer residents,
visitors and business people a unique and welcome alternative in casual dining.

On the restaurant will be targeting customer are special focus on young adults. The
menu will be change 3-4 months but keep the favorities. Price will be competitive
other upscale restaurants in the area. The services will be relaxed, very friendly and
correct. We will hire the best people available ,training , motivating and encourage
them and there by retaining and friendliest most efficient staff possible .our
management team is comprised of individuals whose backgrounds consists of 10
years experience.

1.3 Objectives

 To create a healthy and safe environment.

 Promoting and expanding the restaurant concept as unique.
 Expanding our marketing and advertising.

1.4 Mission

The mission of laxmi restaurant will be an inspiring one, combing an electic

atmosphere with excellent and interesting food.

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1.5 Key to Success

 Create a unique, innovative, entertaining menu that will differentiate us from

the rest of the competition.
 Promote good values of company culture and business philosophy.
 Employee retention, training , ongoing education , recognition programs.
 Design and employ strict financial controls.

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 Part Two: Executive Summary

This proposed venture will provide the beverage items and special MOMO
product and other food product for the customers. Restaurant business is most
important sector on providing employment opportunity. Our sales strategy includes
hiring employees who genuinely enjoy their jobs. We will continually assess all
aspects of the business and interact with our customer personally, evaluating food
choices for popularity and keeping favorities on the menu as we rotate weekly and
seasonal specials. Investment is expected to grow rapidly within few years due to its
USP, service and facility, peaceful environment , varies contingency plans and
strategies , market study ,research and analysis.

We developed operational and marketing plan will help the growth and
promotion of the venture. Restaurant business will operation of layout hence this well
be growth revenue. We will hire the best people available, training, motivating and
encourage them, hence our profit is expected to grow rapidly. In food, restaurant and
hotel, catering, management, finance, marketing art and motion pictures. Catering will
be a major part of the restaurant business. Schedule customers don’t always have time
to set up that birthday party or other event that we all need and want. Restaurant will
combine menu variety, atmosphere, ambiance, special them nights and a friendly staff
to create a sense of place in order to reach our goal of overall value in the dining
entertainment experience. We will provide different item menu for customers to select
from and offer full catering services providing everything from table setting to the
dessert. Most important to us is our financial success and we believe this will be
achieved by offering high quality service and excellent food with an interesting twist.
We have crated financial projection based on our experience and knowledge of the
area.

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 Part Three: Industry Analysis

3.1 SWOT Analysis

3.1.1 Strengths

I. Knowledgeable and friendly staff.

II. Fast return on Investment.
III. Restaurant business exterior is clean and tidy.
IV. Product prices are cheaper than competitors.
V. Highly motivated workforce.

3.1.2 Weakness

I. Lack of experience.
II. Lack of confidence.
III. Limited funds available.
IV. The offer product which is already available on the market.
V. Lack of awareness.

3.1.3 Opportunities

I. Market Potential.
II. A new office complex is opening nearby.
III. Innovation and technology development.
IV. Work experience.

3.1.4 Threats

I. Competition.
II. Rising operating costs.
III. Poor management strategies.
IV. Lack of external funding.

3.2 Future Outlook and Trends

There are lots of hotels and restaurant existing in Birendranagar-6, Surkhet.

Comparison of this hotel and restaurants, there are no providing a service facility and
USP. Hence we will provide a fast services facility and clean the restaurant as well.

Future outlook and trends of restaurant is mainly focus on providing a healthy

food for the costumer. Make a peaceful environment. To grow sales, the restaurant
must continually adapt to evolving consumer trends.

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3.3 Analysis of Competitors

Since, there are so many competitors a fundamental part of any business is establish
how can differentiate restaurant from others. For restaurant, A competitors is any
business that sales food to the same target market. Competitors can be divided into
direct and indirect competition.

I. Direct competition
Direct competitors are restaurants that are very similar product and
services. Operate under the same service model and appeal to the same
target market.
II. Indirect competition
Indirect competitors are those competitors who provide the different
product, operate under a different service model. But these businesses are
competition because they cater to the same target market.

3.4 Market Segmentation

The market will be segmented on the basis of demographic factors like

- Age

- Gender

- Family size

- Income level

3.5 Industry and Market Forecasts

Market forecast is a key component of financial statement and professional market

research. In restaurant business has many competitors. Our business enterprise makes
different from others. Restaurant can occupied large market share through fulfilling
the needs of customer by providing product as per their requirements. Restaurants
business will be increasing day by day due to rapidly growth of other industry,
improvement of life style and income level of people and offer motivating forces. The
enhancement of restaurant we have to under market research that helps to acquire
information about need preferences and attitude of the customers.

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 Part Four : Description of Venture

IV.1 Product
Description of the product which will be provided by Laxmi restaurant are
given bellow.
 MOMO
 Chawmen
 Chilli
 Cold drinks
 Sekuwa
IV.2 Services
 Traditional holiday menu.
 Food has to be prepared promptly as quick service is expected.
 Building up good rapport with the guest consistently.

IV.3 Size of business

Since, it is a sole trading organization. Size of business smaller than
partnership and joint stock company.

4.4 Office Equipment and Personnel

The restaurant equipments are:

 Table and chair
 Computer
 CCTV
 Kitchen equipments

There will (5/6) employees including (accountant, waiters, cookmen, cleaner and
manager)

4.5 Background of Entrepreneurs

Name : Laxmi K.C.

Born : January 30 1998

Residence : Birendranagar 12, Surkhet

Nationality : Nepalese

Occupation : owner of Laxmi Restaurant

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Parents : Rudra Bahadur Khatri

Khagisara Khatri

Educational background

Schooling : Shree Bhagawati Higher Secondary School, Dailekh

Higher secondary education : Amar Jyoti model higher secondary school

Birendranagar 12, Neware Chanaute, Surkhet

Graduate : Mid Western University School of Management (MUSOM),

Birendranagar 9, Surkhet

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 Part Five : Production Plan

V.1 Manufacturing Process

Raw materials

Processing

Costumers

Restaurant business enterprise will be raw materials vegetable purchasing from local
farm. And other raw materials purchasing from wholesaler. These raw materials are
processing and deliver the customer.

V.2 Machinery and Equipments

Restaurant business machinery equipments are:
 kitchen equipments
 chair and tables
 computer
 CCTV
V.3 Name of Supplier of Raw Materials
purchasing raw materials some time local farm and some time purchasing
from India.

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Part Six: Operation Plan

The Laxmi Restaurant will operate in six days in a week. The business enterprise
will be upon at 8 a:m morning to evening 7 p:m . The owner will be monitoring all the
operational activities in a enterprise.

6.1 Description of Company’s Operation

6.1.1 Location

The business will be located Birendranagar 6, Surkhet near the Ghanta Ghar line.

6.1.2 Equipments
The restaurant equipments are :
 Table
 Chair
 Computer
 Kitchen equipments
 CCTV

There will be chair and tables are seating the customers for the business enterprise.
Computer will be used for recording and storing the business transactions. CCTV
fitted at the front of the room.

6.1.3 Employees
 Manager
 Accountant
 Waiter
 Cookmen
 Cleaner
6.1.4 Supply Chain Analysis
Supply chain analysis of the Laxmi Restaurant will be:
Suppliers

Manufacture

Customer
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6.2 Flow of Orders for Goods and Services
Order of the customers for goods and services will be executed through the
following way:
Customers

Accountant/owner

Processing

Deliver
Customer can forward their order to the counter/sales manager. And sales
manager will forward the costumer order to waiter.
6.3 Technology Utilization
Technology is indeed essential to modern restaurants. When adopt the
right restaurant technologies, they can simplify the customer experience
making job and staff’s job much easier. The main utilization is free WIFI
services for the customers. Technology utilization of restaurant business are
as follows:
 Online ordering
Fast causal establishments and quick services restaurant is seeing an
influx of demand for online ordering. However online ordering is
making a splash in full services restaurant as well.
 Employee scheduling software
Restaurant business should create an environment where employees
want to come to work every day. Restaurant employee scheduling
software benefits owners and staff because they can clearly see who is
working, when they are working and how for long.

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 Part Seven : Marketing Plan

It is one of the most essential part of the every business plan. Marketing is that
process which brings a business to its customers. The major elements of marketing
are:

 Pricing
 Distribution
 Promotion

7.1 Pricing

Pricing of the Laxmi Restaurant will be determined according to its quality and other
factors. There will be two types of price for the product, they are:

 Price for the family package, birthday party, married party

It means that the price of the product for party it will be change as
equivalent to MRP provide the discount for the family package and parties.

 Price for the general customers

It means that the price of the product for general customers are full charge.

7.2 Distribution

Laxmi Restaurant will distribute the goods and services to all the target customers.
And we can distribute our product and services to anybody who are required.

7.3 Promotion

The following tools and techniques will help to promote the business.

7.3.1 Advertisement

There are various ways of advertisement that helps to enhance the performance of the
business enterprise. The basic tools of advertisement are:

 Newspaper
 Radio
 Online media
 Television

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7.3.2 CSR

Furthermore, the enterprise will focus on corporate social responsibility to promote

the business.CSR creates positive message to the people and increases goodwill which
directly leads to increase the number of customers. Increase in customers leads to
increase in sales and thus revenue increase and profit increase.

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 Part Eight: Organizational Plan

8.1 Form of Ownership

The Laxmi Restaurant will be sole trading business run by Laxmi K.C. Hence, it has
only one owner.

8.2 Principal Shareholders

It is a sole trading organization, it has only one owner and there will not any other
principal shareholders of the enterprise.

8.3 Authority Principals

Following are the rights that will be hold by principal of this venture:

 Right to make rules and regulation of the business enterprise.

 Hiring, promoting, and training of employee.
 Right to control over the operation/activities of enterprise.
 Right to make rules and regulation of the business enterprise.
 Empower the employees by providing rights and duties.
 Accept the risk and find the best alternatives.
8.4 Management Team Background
As the nature of this enterprise there is not specific/particular structure of
organization

8.5 Roles and Responsibilities of Members of Organization

 Healthy and safety of the workplace.

 Maintain employee work schedules.
 Responsible for day to day restaurant operation
 Promoting and marketing of the business.
 Prepare budget and reports for the organization.

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 Part Nine: Financial Plan

9.1 Income Statement (Year Ended 1st and 2nd)

Particular 1st year 2nd year

Sales revenue Rs.37,00,000 Rs.46,00,000
Less :COGS Rs.17,00,000 Rs.20,00,000
Less : purchase Rs.5,00,000 Rs.7,00,000
Gross profit Rs.15,00,000 Rs.19,00,000
Less : operating expenses
Salary Rs.1,00,000 Rs.1,50,000
Rent Rs.250,000 Rs.3,00,000
Electricity Rs.10,000 Rs.13,000
Advertisement Rs.12,000 Rs.14,000
EBIT Rs.11,28,000 Rs.14,23000
Less: interest on loan (18 % of 500,000 ) Rs.90,000 Rs.72,000
EBT Rs.10,38,000 Rs 13,51,000
Tax (13%) Rs.134,940 Rs.175,630
Net Profit Rs.903,060 Rs.11,75,370

9.2 Balance Sheet

Capital and Liabilities Amount Assets Amount

Bank loan Rs.500,000 Cash in bank Rs.250,000
Outstanding rent Rs.100,000 Inventory Rs.400,000
Account payable Rs.300,000 Machinery and Rs.200,000
equipments
Creditors Rs.200,000 Accounts receivable Rs.250,000
Salary payable Rs.100,000 Debtors Rs.50,000
Other current assets Rs.50,000
Total Rs.12,00,000 Total Rs.12,00,000

9.3 Cash Flow Statement (Year One)

Particular Amount Rs.

A. Cash flow from operating activities
Cash collection from sales 37,00,000
Less :
Debtors (50,000)
Increase in closing stock (100,000)

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 Tax paid (134,940)
Increase in account receivable (250,000)
Cash from operating activities (A) 31,65,060
B. Cash from investing activities
Purchase of computer and CCTV (200,000)
Purchase of fixed assets (150,000)
Cash from investing activities (B) (350,000)
c. cash flow from financing activities
Increase in investment (30,00,000)
Loan taken 500,000
Cash from financing activities (C) (25,00,000)
Net change in cash (A+B+C) 315,000
Add: opening stock Nil
Closing cash 315000

Part Ten: Appendix

a. Letter

2075/12/11

To

The subject teacher

Mid western university school of management (MUSOM)

B.N.N.P 08,surkhet

Dear Mam,

I am very pleased to enclose my business plane for Laxmi Restaurant. You will find a
wealth of information about the business, assessment of opportunities in the market

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place. And a detailed plan for business. I look forward to the possibility of success in
the coming years.

Thank you

Laxmi K.C.

BBA 7th Semester

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